2020-11-16 GC Agenda - Item 6 - Attachment 1 - Noosa Council Annual Report 2019-20

Noosa Shire Council

Notes to the Financial Statements
for the year ended 30 June 2020

Note 25. Contingent Liabilities
                                                                                                    Council
Details and estimates of maximum amounts of contingent liabilities are as follows:

Local Government Mutual

The Council is a member of the local government mutual liability self-insurance pool, LGM Queensland. In the
event of the pool being wound up or it is unable to meet its debts as they fall due, the trust deed and rules
provide that any accumulated deficit will be met by the individual pool members in the same proportion as their
contribution is to the total pool contributions in respect to any year that a deficit arises.

As at 30 June 2020 the financial statements reported an accumulated surplus and it is not anticipated any liability
will arise.

Local Government Workcare
The Council is a member of the Queensland local government worker's compensation self-insurance scheme,
Local Government Workcare. Under this scheme the Council has provided an indemnity towards a bank
guarantee to cover bad debts which may remain should the self insurance licence be cancelled and there was
insufficient funds available to cover outstanding liabilities. Only the Queensland Government’s workers
compensation authority may call on any part of the guarantee should the above circumstances arise. The
Council's maximum exposure to the bank guarantee is $940,516 (2019: $800,535).




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