Annual Report 2014-15

Financial Statements 2015
City of Wanneroo
Notes to the Financial Statements
for the year ended 30 June 2015
Note 33. Financial Risk Management (continued)
$
(b). Receivables
Council's major receivables comprise Rates & Annual charges and User Charges & Fees.
The major risk associated with these receivables is credit risk - the risk that debts due and payable to Council
may not be repaid.
Council manages this risk by monitoring outstanding debt and employing stringent debt recovery procedures.
It also encourages ratepayers to pay their rates by the due date through incentives.
Credit risk on rates and annual charges is minimised by the ability of Council to secure a charge over the land
relating to the debts - that is, the land can be sold to recover the debt. Council is also able to charge interest
on overdue rates & annual charges at higher than market rates which further encourages the payment of debt.
The level of outstanding receivables is reported to Council monthly and benchmarks are set and monitored for
acceptable collection performance.
Council makes suitable provision for doubtful receivables as required and carries out credit checks on most
non-rate debtors.
There are no material receivables that have been subjected to a re-negotiation of repayment terms.
A profile of Council's receivables credit risk at balance date follows:
Percentage of Rates and Annual Charges
Current
Overdue
30-Jun-15 30-Jun-14
% %
0.00% 0.00%
100.00% 100.00%
Percentage of Other Receivables
Current
88.52% 89.58%
Overdue 11.48% 10.42%
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