Annual Report 2015-16

Financial Statements 2016

 Noosa Shire Council

 Notes to the Financial Statements
 for the year ended 30 June 2016
 Note 26. Financial Instruments (continued)
Seer                                    eee                                                    enneiere
                                                                      wn OS                8000          F000
 The following table represents the maximum exposure to credit risk based
 on the carrying amounts of financial assets at the end of the reporting period:

 Financial Assets

 Cash and Cash Equivalents                                                      8         52,586         50,891
 Receivables - Rates                                                            g          4,337          4,166
 Receivables - Other                                                            9         50,824         50,482
 Equity Investments                                                            22.      69,141 65,212
                                                                                     _176,888 170,751
 Other Credit Exposures

 Guarantee                                                                     19        887             290
                                                                                            887        290
Total                                                                                177,275 171,041.

 Cash and Cash Equivalents
 The Council may be exposed to credit risk through its investments in the QTC Cash Fund and QTC Working Capital
 Facility. The QTC Cash Fund is an asset management portfolio that invests with a wide range of high credit rated
 counterparties. Deposits with the QTC Cash Fund are capital guaranteed. Working Capital Facility deposits have
 a duration of one day and all investments are required to have a minimum credit rating of A-, therefore the likelihood
 of the counterparty having capacity to meet its financial commitments is strong.

 Other Financial Assets
 Other investments are held with financial institutions, which are rated AAA to AA- based on rating agency
 Standard and Poor's ratings, and whilst not capital guaranteed, the likelihood of a credit failure is assessed
 as remote (if applicable).

 Trade and Other Receivables
 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.

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