2015-04-28 Planning and Organisation Committee Agenda

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                                                    28 APRIL 2015


CORPORATE SERVICES DEPARTMENT REPORTS
12                       MANAGEMENT OF RESTRICTED CASH POLICY
DOCUMENT INFORM AT ION




Author                              Manager Financial Services, Wayne Jensen
                                    Corporate Services Department

Index                               ECM/Subject/22.07 – Financial Statements

Attachments                         1.    Proposed Council Policy – Management of Restricted Cash


EXECUTIVE SUMMARY
The attached proposed policy aims to ensure Council has appropriate governance
arrangements with respect to management of restricted cash holdings.

RECOMMENDATION
That Council note the report by the Manager Financial Services to the Planning &
Organisation Committee Meeting dated 28 April 2015 and adopt the Council Policy –
Management of Restricted Cash, as attached to the report (Attachment 1).


REPORT
Included with the cash transferred from the Sunshine Coast Regional Council (SCRC) were
a number of restricted cash reserves that relate to funds constrained by internal SCRC
policy and also funds constrained by legislative and/or contractual obligations. Accordingly, it
is prudent for Noosa Council to establish its own policy to govern the ongoing management
of both externally and internally restricted cash.
Policy
The policy provides for separate classification of funds into:
1.   Externally Restricted Cash (subject to external restrictions regarding the use of those
     funds)
          Unexpended funds collected from ratepayers via special / separate charges for
            specific activities;
          Contributions received from developers for specific purposes constrained under
            legislation;
          Unexpended grants and subsidies received from State or Federal Government
            agencies and provided for specific purposes;
          Carbon tax collected through waste charges for landfill sites; and
          Unexpended loan funds.
2.                       Internally Restricted Cash (established by Council to ensure that sufficient funds are
                         available when required for a specific purpose)
                             Natural disaster recovery;
                             Future asset renewal;
                             Waste management;
                             Plant management; and
                             Specific purpose.
Separate accounts will be established under each category to ensure appropriate
governance on the funds held.



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