Annual Report 2018-19

                                                                                                                Financial Statements 2019

                                                                                           -
Noosa Shire Council

Notes to the Financial Statements
for the year ended 30 June 2019

Note 30. Financial Instruments (continued)

Loss rates are based on actual credit loss experience over the past five years. These rates are multiplied by
scalar factors to reflect differences between economic conditions during the period over which the historical
over which the historical data has been collected, current conditions and the Council's view of economic conditions
over the expected lives of the receivables.

The movement in the allowance for impairment in respect of trade receivable during the year was $987.

Liquidity Risk
Liquidity risk refers to the situation where the Council may encounter difficulty in meeting obligations associated
with financial liabilities that are settled by delivering cash or another financial asset. Noosa Shire Council is
exposed to liquidity risk through its trading in the normal course of business and borrowings from the Queensland
Treasury Corporation for capital works.

The Council's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to
meet its labilities when they are due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the Council's reputation.

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 16.

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:

                                                                                                        Total
                                                                                                  Contractual            Carrying
                                                  0 to 1 year    1 to 5 years    Over 5 years     Cash Flows             Amount
                                                                       $'000           $'000            $'000               $'000

2019
Trade and Other Payables                            6,966               -                -           6,966               6,966
Loans - QTC                                         3,950          15,048           10,800          29,798              24,232
                                                  10,916          15,048           10,800           36,764             31,198

2018
Trade and Other Payables                            9,134               -                -           9,134               9,244
Loans - QTC                                         5,289          21,203           19,178          45,670              36,140
                                                  14,423          21,203           19,178          54,804              45,384

The outflows in the above table are not expected to occur significantly earlier and are not expected to be for
significantly different amounts than indicated in the table.
                                                                                                       $'000               $'000


Market Risk

Market risk is the risk that changes in market prices, such as interest rates, will affect the Council's income or the
value of its holdings of financial instruments.

Interest Rate Risk

Noosa Shire Council is exposed to interest rate risk through investments and borrowings with Queensland Treasury
and/or other financial institutions.

It also has access to a mix of variable and fixed rate funding options through QTC so that interest rate
risk exposure can be minimised.
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