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Belyuen Community Government Council annual report 2018-19



Belyuen Community Government Council annual report 2018-19


Belyuen Community Government Council


E-Publications; E-Books; PublicationNT; Belyuen Community Government Council annual report; Annual Report




Made available via the Publications (Legal Deposit) Act 2004 (NT).




Belyuen Community Government Council; Local government; Periodical

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Belyuen Community Government Council

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Belyuen Community Government Council annual report; Annual Report



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Belyuen Community Government Council



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BELYUEN COMMUNITY GOVERNMENT COUNCIL 33 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 NOTE 15. FINANCIAL INSTRUMENTS (a) Financial risk management objectives and policies The Councils principal financial instruments comprise accounts and other receivables, accounts and other payables and cash and cash equivalents. The Council manages its exposure to financial risks, in accordance with its policies. Its objectives of the policies are to maximise the income to the Council whilst minimising the downside risk. The Councils activities expose it to normal commercial financial risk. The main risks the Council is exposed to through its financial instruments are credit risk, liquidity risk and interest rate risk. Risks are considered to be low. There have been no substantive changes in the types of risks the Council is exposed to, how these risks arise, or the Councils objectives, policies and procedures for managing or measuring the risks from the previous period. Primary responsibility for the identification and control of financial risks rests with the Council Members and the CEO under the authority of the Council Members. (b) Credit risk Exposure to credit risk relating to financial assets arises from the potential non performance of counterparties of contract obligations that could lead to a financial loss to the Council. Credit risk is managed through maintaining procedures (such as utilisation of systems for approval, granting and removal of credit limits, regular monitoring of exposure against such limits and monitoring of financial stability of significant counterparties) ensuring to the extent possible that counterparties to transactions are of sound credit worthiness. Risk is also minimised through investing surplus funds in financial institutions that maintain a high credit rating. Credit risk exposures The maximum exposure to credit risk by class of recognised financial assets at the end of the reporting period is the equivalent to the carrying amount and classification of those financial assets (net of any provisions) as presented in the statement of financial position. There is no collateral held by the Council securing accounts and other receivables.