2015-10-14 Audit & Risk Committee Meeting - Draft Annual Financial Statements

NOOSA SHIRE COUNCIL


Notes to the financial statements
For the year ended 30 June 2015


28 Financial instruments - continued
              Other financial assets
              Other investments are held with financial institutions, which are rated AAA to AA- based on rating Standard and Poor's
              agency ratings, and whilst not capital guaranteed, the likelihood of a credit failure is assessed as remote.

         Trade and other receivables
              In the case of rate receivables, Council has the power to sell the property to recover any defaulted amounts. In effect this
              power protects the Council against credit risk in the case of defaults.
              In other cases, Council assesses the credit risk before providing goods or services and applies normal business credit
              protection procedures to minimise the risk.


              By the nature of the Councils operations, there is a geographical concentration of risk in the Council's area.


              Ageing of past due receivables and the amount of any impairment is disclosed in the following table:


                                                  Not past due                            Past due                             Less              Total
                                                                       31 to 60           61 to 90        Over 90            Impaired
                                                                         days              days            days
                                                        $                 $                 $               $                   $                 $


                Receivables:                                937,636         61,330           25,296        4,411,620                (6,247)     5,429,635
                Loans to Unitywater                            -              -                -          49,217,517                  -        49,217,517
                2015                                        937,636         61,330           25,296       53,629,137                (6,247)    54,647,152

                Receivables                           10,371,206          138,236            79,163        5,428,387                  -        16,016,992
                Loans to Unitywater                         -                -                 -          49,217,517                  -        49,217,517

                2014                                  10,371,206          138,236            79,163       54,645,904                  -        65,234,509




         Liquidity risk
              Liquidity risk is the risk that the Council will encounter difficulty in meeting the obligations associated with its financial
               liabilities that are settled by delivering cash or another financial asset.

              Noosa Shire Council is exposed to liquidity risk through its normal course of business and through its borrowings
              with QTC and other financial institutions.

              The Council manages its exposure to liquidity risk by maintaining sufficient cash deposits and undrawn facilities,
              both short and long term, to cater for unexpected volatility in cash flows.
              These facilities are disclosed in note 18.


              The following table sets out the liquidity risk in relation to financial liabilities held by the Council. It represents the
              remaining contractual cashflows (principal and interest) of financial liabilities at the end of the reporting period,
              excluding the impact of netting agreements:


              Consolidated                                            0 to 1 year     1 to 5 years     Over 5 years     Total contractual      Carrying
                                                                                                                           cash flows          amount
              2015                                                         $                 $               $                  $                 $
                   Trade and other payables                            5,338,697                 -                -           5,338,697         5,338,697
                   QTC Loans                                           4,941,800      19,754,559         28,458,148          53,154,507        39,380,545
                                                                      10,280,497      19,754,559         28,458,148          58,493,204        44,719,242
              2014
                   Trade and other payables                            4,075,282                 -                -           4,075,282         4,075,282
                   QTC Loans                                           7,113,778      19,436,191         32,049,878          58,599,846        41,177,025
                                                                      11,189,060      19,436,191         32,049,878          62,675,128        45,252,307


              The outflows in the above table are not expected to occur significantly earlier than outlined and are not expected to
              be materially different amounts than indicated in the table.



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