Annual Report 2021-22

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

Note 30. Financial Instruments and Financial Risk Management (continued)

In the case of rate receivables, the 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, the 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.

The Council does not require collateral in respect of trade and other receivables. The Council does not have trade receivables
for which no loss allowance is recognised because of collateral.

At 30 June 2022, the exposure to credit risk for trade receivables by type of counterparty was as follows:

$ '000                                                                                                   2022                2021

Community Organisations                                                                                   250                 375
Property Charges                                                                                        4,884               4,673
Fees and Charges                                                                                        2,191               1,850
GST Recoverable                                                                                         1,083                 807
Associates                                                                                             49,218              49,218
Other                                                                                                      36                  12
Total                                                                                                 57,662              56,935
§Subnote§




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.


Exposure to Liquidity Risk
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 20.


The following lines of credit were available at the end of the reporting period:
§Subnote§




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


2022
Payables                                   15,920                   –                   –              15,920              15,920
Loans - QTC                                 1,652               6,837              24,292              32,781              25,300
                                          17,572                6,837              24,292             48,701              41,220
2021
Payables                                    7,236                   –                   –               7,236               7,236
Loans - QTC                                 1,299               5,381              20,180              26,860              21,213
                                            8,535               5,381              20,180             34,096              28,449

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