Restricted Cash Policy Restricted cash refers to funds that have been set aside from operating and capital incomes for the future funding of CN expenditure. From an accounting perspective, the value of these funds is reconciled against the combined balance of cash, cash equivalents, and investments on the Statement of Financial Position. Balances are not available for use by the group for purposes other than those to which they are apportioned.
Purpose of Restricted Cash CN maintains cash restrictions to: Ensure sustainability and responsible financial management through consistent identification, administration and usage of funds subject to CN’s control Ensure transparency and focus on achieving strategic goals via identification, measurement and monitoring of restricted cash requirements and available balances Ensure that for those funds that have been received for a specific future purpose, CN establishes and maintains restricted cash balances that account for that income Establish requirements around the restricted cash categories required by CN, their purpose, the priorities, the target balance, ongoing balance maintenance and the tracking and disclosure of performance against benchmark (value held against value required)
City of Newcastle
Ensure CN retains financial flexibility to respond to external shocks.
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