Portfolio Budget Statements 2009-10
3.2 Budgeted financial statements
3.2.1 Differences in agency resourcing and financial statements
ILC has no differences in agency resourcing and financial statements.
3.2.2 Analysis of budgeted financial statements
Until 2003-04, ILC received an annual allocation from the Land Account according to a formula specified in section 193A of the ATSI Act. From 2004-05 onwards, it receives the 'realised real return' from the Land Account (s193C).
Estimated payments from the Land Account from 2008-09 forward have been provided by FaHCSIA, which is responsible for the administration of the Land Account.
The total resources for the ILC's Outcome includes the income from the Land Account, and represents the funds available to ILC to carry out its legislated functions.
Under its legislation, ILC has the flexibility to invest funds and to roll over funds not expended in previous years.
Under Section 191H of the ATSI Act, ILC has the specific power to invest moneys of ILC. In addition, Section 193K of the ATSI Act specifically exempts ILC from Section 18(3) of the Commonwealth Authorities and Companies Act 1997 (CAC Act). This section of the CAC Act deals with allowable investments. Earnings on these investments are represented in the Budgeted Departmental Comprehensive Income Statement.
Under its legislation, ILC acquires land for the specific purpose of granting an interest in that land to an Aboriginal or Torres Strait Islander corporation. ILC capitalises the land on purchase and makes an immediate provision for the grant equivalent to the purchase price. In the Budgeted Departmental Comprehensive Income Statement, the expenses associated with the purchase and grant of the land are recognised in the period in which the land is purchased. Expenses associated with land management projects are recognised in the period in which the expenditure is incurred.
ILC also holds properties for granting that have significant livestock on them. In accordance with Australian Accounting Standards, ILC values the livestock on a market-to-market basis. Accordingly, the change in market value in any given period is recognised in the Budgeted Departmental Comprehensive Income Statement.
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3.2.3 Budgeted financial statements tables
|
Estimated actual 2008-09 $'000 |
Budget estimate 2009-10 $'000 |
Forward estimate 2010-11 $'000 |
Forward estimate 2011-12 $'000 |
Forward estimate 2012-13 $'000 |
|---|---|---|---|---|---|
| EXPENSES | |||||
| Employee benefits | 9,677 | 10,452 | 11,288 | 12,190 | 12,190 |
| Supplier | 57,239 | 43,758 | 42,812 | 33,489 | 32,320 |
| Depreciation and amortisation | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 |
| Total expenses | 68,416 | 55,710 | 55,600 | 47,179 | 46,010 |
| LESS: | |||||
| OWN-SOURCE INCOME | |||||
| Revenue | |||||
| Interest | 14,141 | 9,099 | 6,433 | 5,832 | 4,000 |
| Other revenue | 2,344 | 4,106 | 4,106 | 4,106 | 4,106 |
| Total revenue | 16,485 | 13,205 | 10,539 | 9,938 | 8,106 |
| Gains | |||||
| Sale of assets | - | - | - | - | - |
| Other gains | - | - | - | - | - |
| Total gains | - | - | - | - | - |
| Total own-source income | 16,485 | 13,205 | 10,539 | 9,938 | 8,106 |
| Net cost of (contribution by) services | (51,931) | (42,505) | (45,061) | (37,241) | (37,904) |
| Revenue from Land Account | 44,789 | 2,633 | 34,561 | 4,792 | 37,904 |
| Surplus (Deficit) | (7,142) | (39,872) | (10,500) | (32,449) | - |
| Surplus (Deficit) attributable to the Australian Government | (7,142) | (39,872) | (10,500) | (32,449) | - |
| OTHER COMPREHENSIVE INCOME | |||||
| Changes in asset revaluation reserves | - | - | - | - | - |
| Total other comprehensive income | (7,142) | (39,872) | (10,500) | (32,449) | - |
| Total comprehensive income | (7,142) | (39,872) | (10,500) | (32,449) | - |
| Total comprehensive income attributable to the Australian Government | (7,142) | (39,872) | (10,500) | (32,449) | - |
Prepared on Australian Accounting Standards basis.
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|
Estimated actual 2008-09 $'000 |
Budget estimate 2009-10 $'000 |
Forward estimate 2010-11 $'000 |
Forward estimate 2011-12 $'000 |
Forward estimate 2012-13 $'000 |
|---|---|---|---|---|---|
| ASSETS | |||||
| Financial assets | |||||
| Cash and equivalents | 34,563 | 34,563 | 34,563 | 34,563 | 34,563 |
| Trade and other Receivables | 3,918 | 3,918 | 3,918 | 3,918 | 3,918 |
| Investments | 147,648 | 107,777 | 97,277 | 64,828 | 64,828 |
| Other | 1,163 | 1,163 | 1,163 | 1,163 | 1,163 |
| Total financial assets | 187,292 | 147,421 | 136,921 | 104,472 | 104,472 |
| Non-financial assets | |||||
| Land and buildings | |||||
| Infrastructure, plant and equipment | 85,438 | 84,458 | 83,458 | 82,458 | 82,458 |
| Inventories | 140,108 | 162,908 | 185,708 | 208,508 | 208,508 |
| Intangibles | 395 | 375 | 375 | 375 | 375 |
| Biological assets | 29,389 | 30,389 | 31,389 | 32,389 | 32,389 |
| Other | 5,224 | 5,224 | 5,224 | 5,224 | 5,224 |
| Total non-financial assets | 260,554 | 283,354 | 306,154 | 328,954 | 328,954 |
| Assets held for sale | 1,394 | 1,394 | 1,394 | 1,394 | 1,394 |
| Total assets | 449,240 | 432,169 | 444,469 | 434,820 | 434,820 |
| LIABILITIES | |||||
| Provisions | |||||
| Employees | 2,286 | 2,286 | 2,286 | 2,286 | 2,286 |
| Other | 139,977 | 162,778 | 185,578 | 208,378 | 208,378 |
| Total provisions | 142,263 | 165,064 | 187,864 | 210,664 | 210,664 |
| Payables | |||||
| Suppliers | 6,135 | 6,135 | 6,135 | 6,135 | 6,135 |
| Other | 2,531 | 2,531 | 2,531 | 2,531 | 2,531 |
| Total payables | 8,666 | 8,666 | 8,666 | 8,666 | 8,666 |
| Total liabilities | 150,929 | 173,730 | 196,530 | 219,330 | 219,330 |
| Net assets | 298,311 | 258,439 | 247,939 | 215,490 | 215,490 |
| EQUITY* | |||||
| Parent entity interest | |||||
| Reserves | 1,395 | 1,395 | 1,395 | 1,395 | 1,395 |
| Retained surpluses or accumulated deficits | 296,916 | 257,044 | 246,544 | 214,095 | 214,095 |
| Total parent entity interest | 298,311 | 258,439 | 247,939 | 215,490 | 215,490 |
| Total equity | |||||
| Current assets | 75,651 | 76,651 | 77,651 | 78,651 | 78,651 |
| Non-current assets | 373,589 | 355,518 | 366,818 | 356,169 | 356,169 |
| Current liabilities | 10,952 | 10,952 | 10,952 | 10,952 | 10,952 |
| Non-current liabilities | 139,977 | 162,778 | 185,578 | 208,378 | 208,378 |
*'Equity' is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
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|
Estimated actual 2008-09 $'000 |
Budget estimate 2009-10 $'000 |
Forward estimate 2010-11 $'000 |
Forward estimate 2011-12 $'000 |
Forward estimate 2012-13 $'000 |
|---|---|---|---|---|---|
| OPERATING ACTIVITIES | |||||
| Cash received | |||||
| Goods and services | 0 | 3,500 | 3,500 | 3,500 | 3,500 |
| Revenue from Land Account | 44,789 | 2,633 | 34,561 | 4,792 | 37,904 |
| Interest | 14,141 | 9,099 | 6,433 | 5,832 | 4,000 |
| Other | 12,156 | 5,132 | 5,038 | 4,105 | 3,988 |
| Total cash received | 71,086 | 20,364 | 49,532 | 18,229 | 49,392 |
| Cash used | |||||
| Employees | 9,677 | 10,452 | 11,288 | 12,190 | 12,190 |
| Suppliers | 66,263 | 49,233 | 48,193 | 37,938 | 35,552 |
| Total cash used | 75,940 | 59,685 | 59,481 | 50,128 | 47,742 |
| Net cash from or (used by) operating activities | -4,854 | -39, 321 | -9,950 | -31,899 | 1,650 |
| INVESTING ACTIVITIES | |||||
| Cash received | |||||
| Investments | 46,522 | 39,871 | 10,500 | 32,449 | 0 |
| Total cash received | 46,522 | 39,871 | 10,500 | 32,449 | 0 |
| Cash used | |||||
| Purchase of property, plant and equipment | 41,668 | 550 | 550 | 550 | 1,650 |
| Total cash used | 41,668 | 550 | 550 | 550 | 1,650 |
| Net cash from or (used by) investing activities | 4,854 | 39,321 | 9,950 | 31,899 | -1,650 |
| Net increase or (decrease) | |||||
| in cash held | 0 | 0 | 0 | 0 | 0 |
| Cash at the beginning of the reporting period | 34,563 | 34,564 | 34,563 | 34,564 | 34,564 |
| Effect of exchange rate movements on cash at the beginning of reporting period | 0 | 0 | 0 | 0 | 0 |
| Cash at the end of the reporting period | 34,564 | 34,563 | 34,564 | 34,564 | 34,563 |
Prepared on Australian Accounting Standards basis.
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| Retained earnings $'000 |
Asset revaluation service $'000 |
Other reserves $'000 |
Contributed equity/capital $'000 |
Total equity $'000 |
|
|---|---|---|---|---|---|
| Opening balance as at 1 July 2009 | |||||
| Balance carried forward from previous period | 296,916 | 1,395 | - | - | 298,311 |
| Adjustment for changes in accounting policies | - | - | - | - | - |
| Adjusted opening balance | 296,916 | 1,395 | - | - | 298,311 |
| Income and expense | |||||
| Surplus (deficit) for the period | (39,872) | - | - | - | (39,872) |
| Total income and expenses | |||||
| recognised directly in equity | (39,872) | - | - | - | (39,872) |
| Estimated closing balance as at 30 June 2010 |
257,044 | 1,395 | - | - | 258,439 |
Prepared on Australian Accounting Standards basis.
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|
Estimated actual 2008-09 $'000 |
Budget estimate 2009-10 $'000 |
Forward estimate 2010-11 $'000 |
Forward estimate 2011-12 $'000 |
Forward estimate 2012-13 $'000 |
|---|---|---|---|---|---|
| CAPITAL APPROPRIATIONS | |||||
| Total equity injections | - | - | - | - | - |
| Total loans | - | - | - | - | - |
| Special appropriations | - | - | - | - | - |
| Total capital appropriations | - | - | - | - | - |
| Represented by: | |||||
| Purchase of non-financial assets | - | - | - | - | - |
| Other | - | - | - | - | - |
| Total represented by | - | - | - | - | - |
| ACQUISITION OF NON-FINANCIAL ASSETS | |||||
| Funded by capital appropriations | - | - | - | - | - |
| Funded internally from Departmental resources1 | 37,880 | 500 | 500 | 500 | 1,500 |
| Assets received due to restructure (FMA s32) | - | - | - | - | - |
| TOTAL | 37,880 | 500 | 500 | 500 | 1,500 |
1 Includes the following sources of funding:
- annual and prior year appropriations
- donations and contributions
- gifts
- finance leases
- internally developed assets
- s31 relevant agency receipts
- proceeds from the sale of assets
Prepared on Australian Accounting Standards basis.
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|
Land $'000 |
Buildings $'000 |
Other Infrastructure Plant&Equipment $'000 |
Heritage&Cultural Assets $'000 |
Investment Property $'000 |
Intangibles $'000 |
Other Non-financial Assets $'000 |
Total $'000 |
|---|---|---|---|---|---|---|---|---|
| as at 1 July 2009 | ||||||||
| Gross book value | - | - | 93,590 | - | - | 553 | - | 94,143 |
| Accumulated depreciation/amortisation | - | - | (8,152) | - | - | (158) | - | (8,310) |
| Opening net book balance | - | - | 85,438 | - | - | 395 | 85,833 | |
| CAPITAL ASSET ADDITIONS | ||||||||
| Estimated expenditure on new or replacement assets | ||||||||
| by purchase or internally developed | - | - | 500 | - | - | - | - | 500 |
| Sub-total | - | - | 500 | - | - | - | - | 500 |
| Other Movements | ||||||||
| Depreciation/amortisation expense | - | - | 1,500 | - | - | 20 | - | 1,520 |
| as at 30 June 2010 | ||||||||
| Gross book value | - | - | 94,090 | - | - | 553 | - | 94,643 |
| Accumulated depreciation/amortisation | - | - | (9,652) | - | - | (178) | - | (9,830) |
| Closing net book balance | - | - | 84,438 | - | - | 375 | - | 84,813 |
Prepared on Australian Accounting Standards basis.
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3.2.4 Notes to the financial statements
Departmental Financial Statements and Schedule of Administered Activity
ILC has no administered items and does not receive appropriations.
Asset valuation
From 1 July 2005, in accordance with Australian Equivalents of International Financial Reporting Standards, government agencies and authorities are required to use fair value basis to measure property, plant and equipment.
Summary of Significant Accounting Policies
Basis of accounting
The budgeted financial statements are a special purpose financial report.
Rounding
The budgeted financial statements have been rounded to the nearest thousand dollars.
Principles of Consolidation
The consolidated budgeted financial statements are those of the economic entity, comprising ILC (the parent entity) and its wholly-owned subsidiaries.
Investments
Investments are recorded at their current cash-based valuation at reporting date. Section 193K of the Aboriginal and Torres Strait Islander Act 2005 states that the investment restrictions in Section 18(3) of the Commonwealth Authorities and Companies Act 1997 do not apply to ILC.
Inventory held for distribution
Inventory held for distribution represents properties purchased for the purpose of transfer to appropriate organisations in line with the objectives of ILC and properties transferred to ILC as a result of the Aboriginal and Torres Strait Islander Commission Amendment Act 2004. Land purchases (including the related plant, equipment and livestock, acquisition and holding costs) are capitalised on purchase and classified as inventory. A provision is raised in the Budgeted Departmental Income Statement for the full cost of land purchases (excluding livestock) representing the sacrifice of future benefits embodied in the assets.
Biological assets
Livestock held for trading purposes is classified as biological assets. Livestock is valued at market value as at reporting date.
Recognition of income
Receipts from the Land Account are recognised at the time ILC becomes entitled to receive the revenue and have been classified for the purpose of this report as Revenues from Land Account.
Economic dependency
ILC is dependent on the realised real return from the Land Account in accordance with Section 193C of the Aboriginal and Torres Strait Islander Act 2005.
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