Annual Report 2021-22

Noosa Council
Notes to the Financial Statements
for the year ended 30 June 2022

Note 11. Receivables (continued)

$ '000                                                                                                  2022                2021

Current
Rates and Charges                                                                                      4,686               4,543
Other Debtors                                                                                             36                  12
GST Recoverable                                                                                        1,084                 808
Accrued Revenues                                                                                       2,188               2,018
Fees and Charges                                                                                       2,390               1,981
Loans and Advances to Community Organisations                                                            125                 125
Total                                                                                                 10,509               9,487

less: Provision for Impairment
Fees and Charges                                                                                           (2)                 (2)
Total Provision for Impairment - Receivables                                                               (2)                 (2)

Total Current Receivables                                                                            10,507                9,485

§Total§




Non-Current
Loans and Advances to Associates                                                                      49,218              49,218
Loans and Advances to Community Organisations                                                            125                 250
Total Non-Current Receivables                                                                        49,343              49,468
§Total§




Refer also to Note 30 for further information about credit risk.

Interest is charged on outstanding rates (8.03% per annum from 1 July 2021, previously 8.53% per annum). No interest
is charged on other debtors. There is no concentration of credit risk for rates and utility charges, fees and other debtors
receivables.

A loan agreement for the subordinated debt was executed on the 21 June 2013. The interest only loan structure terminates
on the 30 June 2033 with the interest rate set by QTC annually. Applicable interest rate for 2022 was 4.10% (2021: 4.51%).
§Total§




Accounting Policies - Receivables
Receivables are measured at amortised cost which approximates fair value at reporting date. Trade debtors are recognised at
the amounts due at the time of sale or service delivery i.e. the agreed purchase/contract price. Settlement of these amounts
is required within 30 days from invoice date.

Accounting Policies - Grouping
When Council has no reasonable expectation of recovering an amount owned by a debtor, and has ceased enforcement
activity, the debt is written-off by directly reducing the receivable against the loss allowance. If the amount of debt written off
exceeds the loss allowance, the excess is recognised as an impairment loss.

Accounting for impairment losses is dependent upon the individual group of receivables subject to impairment. The loss
allowance for grouped receivables reflects lifetime expected credit losses (ECL) and incorporates reasonable and supportable
forward-looking information. Economic changes impacting debtors, and relevant industry data form part of the impairment
assessment. Council has identified 3 distinctive groupings of its receivables: rates and charges, statutory charges and other
debtors.

Rates and charges: Council is empowered under the provisions of the Local Government Act 2009 to sell an owner's property
to recover outstanding rate debts and therefore the expected credit loss is immaterial. Impairment of rates and charges will
occur only if arrears are deemed to be greater than the proceeds Council would receive from the sale of the respective property.

Statutory charges: In some limited circumstances Council may write off impaired statutory charges, on this basis Council
calculates an ECL for statutory charges (non-rates and utility charges). Although not material, disclosure is being made for
the purposes of public interest and transparency.




continued on next page ...                                                                                            Page 18 of 62