Budget 2010-11
Indigenous Land Corporation
Section 3: Explanatory tables and budgeted financial statements
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 to 2009-10, it received the 'realised real return' from the Land Account (s. 193C). From 2010-11, in accordance with a legislative change currently before parliament, the ILC will receive a minimum of $45 million indexed per annum from the Land Account.
Estimated payments from the Land Account from 2009-10 forward have been provided by FaHCSIA, which is responsible for the administration of the Land Account.
The total resources for the ILC's Outcome include the income from the Land Account, and represent 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 its moneys. In addition, section 193K of the ATSI Act specifically exempts ILC from section 18(3) of theCommonwealth Authorities and Companies Act 1997 (CAC Act). That 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 2009-10 $'000 |
Budget estimate 2010-11 $'000 |
Forward estimate 2011-12 $'000 |
Forward estimate 2012-13 $'000 |
Forward estimate 2013-14 $'000 |
|---|---|---|---|---|---|
| EXPENSES | |||||
| Employee benefits | 10,452 | 11,288 | 12,190 | 13,043 | 13,695 |
| Supplier expenses | 41,125 | 42,812 | 42,238 | 40,657 | 41,088 |
| Grants | |||||
| Depreciation and amortisation | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 |
| Finance costs | |||||
| Write-down and impairment of assets | |||||
| Losses from asset sales | |||||
| Other | |||||
| Total expenses | 53,077 | 55,600 | 55,928 | 55,200 | 56,283 |
| LESS: | |||||
| OWN-SOURCE INCOME | |||||
| Revenue | |||||
| Sale of goods and rendering of services | |||||
| Fees and fines | |||||
| Interest | 9,099 | 6,433 | 5,832 | 4,000 | 4,000 |
| Dividends | |||||
| Rental income | |||||
| Royalties | |||||
| Other | 4,106 | 4,106 | 4,106 | 4,106 | 4,106 |
| Total revenue | 13,205 | 10,539 | 9,938 | 8,106 | 8,106 |
| Gains | |||||
| Sale of assets | |||||
| Other | |||||
| Total gains | - | - | - | - | - |
| Total own-source income | 13,205 | 10,539 | 9,938 | 8,106 | 8,106 |
| Net cost of (contribution by) services | (39,872) | (45,061) | (45,990) | (47,094) | (48,177) |
| Revenue from Government | - | 45,000 | 45,990 | 47,094 | 48,177 |
| Surplus (Deficit) | (39,872) | (61) | - | - | - |
| Surplus (Deficit) attributable to the Australian Government | (39,872) | (61) | - | - | - |
| OTHER COMPREHENSIVE INCOME | |||||
| Changes in asset revaluation reserves | - | - | - | - | - |
| Total other comprehensive income | - | - | - | - | - |
| Total comprehensive income | (39,872) | (61) | - | - | - |
| Total comprehensive income attributable to the Australian Government | (39,872) | (61) | - | - | - |
Prepared on Australian Accounting Standards basis.
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|
Estimated actual 2009-10 $'000 |
Budget estimate 2010-11 $'000 |
Forward estimate 2011-12 $'000 |
Forward estimate 2012-13 $'000 |
Forward estimate 2013-14 $'000 |
|---|---|---|---|---|---|
| ASSETS | |||||
| Financial assets | |||||
| Cash and equivalents | 55,531 | 55,531 | 55,531 | 55,531 | 55,531 |
| Trade and other receivables | 3,836 | 3,836 | 3,836 | 3,836 | 3,836 |
| Investments accounted for under the equity method | - | - | - | - | - |
| Other investments | 103,090 | 103,029 | 103,029 | 103,029 | 103,029 |
| Tax assets | - | - | - | - | - |
| Other | 934 | 934 | 934 | 934 | 934 |
| Total financial assets | 163,391 | 163,330 | 163,330 | 163,330 | 163,330 |
| Non-financial assets | |||||
| Land and buildings | |||||
| Property, plant and equipment | 74,946 | 73,946 | 72,946 | 72,946 | 72,946 |
| Investment properties | - | - | - | - | - |
| Intangibles | 360 | 360 | 360 | 360 | 360 |
| Inventories | 151,014 | 173,814 | 196,614 | 196,614 | 196,614 |
| Other | 38,517 | 39,517 | 40,517 | 40,517 | 40,517 |
| Total non-financial assets | 264,837 | 287,637 | 310,437 | 310,437 | 310,437 |
| Assets held for sale | 464 | 464 | 464 | 464 | 464 |
| Total assets | 428,692 | 451,431 | 474,231 | 474,231 | 474,231 |
| LIABILITIES | |||||
| Payables | |||||
| Suppliers | 8,661 | 8,661 | 8,661 | 8,661 | 8,661 |
| Grants | - | - | - | - | - |
| Dividends | - | - | - | - | - |
| Other | 23,286 | 46,086 | 68,886 | 68,886 | 68,886 |
| Total payables | 31,947 | 54,747 | 77,547 | 77,547 | 77,547 |
| Interest bearing liabilities | |||||
| Loans | - | - | - | - | - |
| Leases | - | - | - | - | - |
| Deposits | - | - | - | - | - |
| Other | - | - | - | - | - |
| Total interest bearing liabilities | - | - | - | - | - |
| Provisions | |||||
| Employee provisions | 2,535 | 2,535 | 2,535 | 2,535 | 2,535 |
| Other | 128,045 | 128,045 | 128,045 | 128,045 | 128,045 |
| Total provisions | 130,580 | 130,580 | 130,580 | 130,580 | 130,580 |
| Liabilities included in disposal groups held for sale | - | - | - | - | - |
| Total liabilities | 162,527 | 185,327 | 208,127 | 208,127 | 208,127 |
| Net assets | 266,165 | 266,104 | 266,104 | 266,104 | 266,104 |
| EQUITY* | |||||
| Parent entity interest | |||||
| Contributed equity | - | - | - | - | - |
| Reserves | 3,303 | 3,303 | 3,303 | 3,303 | 3,303 |
| Retained surplus (accumulated deficit) |
262,862 | 262,801 | 262,801 | 262,801 | 262,801 |
| Total equity | 266,165 | 266,104 | 266,104 | 266,104 | 266,104 |
* 'Equity' is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
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|
Estimated actual 2009-10 $'000 |
Budget estimate 2010-11 $'000 |
Forward estimate 2011-12 $'000 |
Forward estimate 2012-13 $'000 |
Forward estimate 2013-14 $'000 |
|---|---|---|---|---|---|
| OPERATING ACTIVITIES | |||||
| Cash received | |||||
| Goods and services | 3,500 | 3,500 | 3,500 | 3,500 | - |
| Appropriations | - | - | - | - | - |
| Interest | 9,099 | 6,433 | 5,832 | 4,000 | 4,000 |
| Dividends | - | - | - | - | - |
| Net GST received | 4,526 | 4,432 | 3,499 | 3,382 | - |
| Other | 606 | 45,606 | 46,596 | 47,700 | 52,283 |
| Total cash received | 17,731 | 59,971 | 59,427 | 58,582 | 56,283 |
| Cash used | |||||
| Employees | 10,452 | 11,289 | 12,190 | 13,043 | 13,695 |
| Suppliers | 46,600 | 48,193 | 46,687 | 43,889 | 41,088 |
| Borrowing costs | - | - | - | - | - |
| Net GST paid | - | - | - | - | - |
| Other | - | - | - | - | - |
| Total cash used | 57,052 | 59,482 | 58,877 | 56,932 | 54,783 |
| Net cash from (used by) operating activities | (39,321) | 489 | 550 | 1,650 | 1,500 |
| INVESTING ACTIVITIES | |||||
| Cash received | |||||
| Proceeds from sales of property, plant and equipment | - | - | - | - | - |
| Proceeds from sales of financial instruments | - | - | - | - | - |
| Investments | 39,871 | 61 | - | - | - |
| Other | - | - | - | - | - |
| Total cash received | 39,871 | 61 | - | - | - |
| Cash used | |||||
| Purchase of property, plant and equipment | 550 | 550 | 550 | 1,650 | 1,500 |
| Purchase of financial instruments | - | - | - | - | - |
| Investments | - | - | - | - | - |
| Other | - | - | - | - | - |
| Total cash used | 550 | 550 | 550 | 1,650 | 1,500 |
| Net cash from (used by) investing activities | 39,321 | (489) | (550) | (1,650) | (1,500) |
| FINANCING ACTIVITIES | |||||
| Cash received | |||||
| Contributed equity | - | - | - | - | - |
| Proceeds from issuing financial instruments | |||||
| Other | - | - | - | - | - |
| Total cash received | - | - | - | - | - |
| Cash used | |||||
| Repayments of borrowings | - | - | - | - | - |
| Dividends paid | - | - | - | - | - |
| Other | - | - | - | - | - |
| Total cash used | - | - | - | - | - |
| Net cash from (used by) financing activities | - | - | - | - | |
| Net increase (decrease) in cash held | - | - | - | - | - |
| Cash and cash equivalents at the beginning of the reporting period | 55,531 | 55,531 | 55,531 | 55,531 | 55,531 |
| Effect of exchange rate movements on cash and cash equivalents at the beginning of reporting period | - | - | - | - | - |
| Cash and cash equivalents at the end of the reporting period | 55,531 | 55,531 | 55,531 | 55,531 | 55,531 |
Prepared on Australian Accounting Standards basis.
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|
Retained earnings $'000 |
Asset revaluation reserve $'000 |
Other reserves $'000 |
Contributed equity/capital $'000 |
Total equity $'000 |
|---|---|---|---|---|---|
| Opening balance as at 1 July 2010 | |||||
| Balance carried forward from previous period | 262,862 | 3,303 | - | - | 266,165 |
| Adjustment for changes in accounting policies | - | - | - | - | - |
| Adjusted opening balance | 262,862 | 3,303 | - | - | 266,165 |
| Comprehensive income | |||||
| Comprehensive income recognised directly in equity: | - | - | - | - | - |
| Gain/loss on revaluation of property | - | - | - | - | - |
| Sub-total comprehensive income | - | - | - | - | - |
| Surplus (deficit) for the period | (61) | - | - | - | (61) |
| Total comprehensive income recognised directly in equity | (61) | - | - | - | (61) |
| Transactions with owners | |||||
| Distributions to owners | |||||
| Returns on capital | - | - | - | - | - |
| Dividends | |||||
| Returns of capital | - | - | - | - | - |
| Restructuring | |||||
| Other | |||||
| Contributions by owners | |||||
| Appropriation (equity injection) | - | - | - | - | - |
| Appropriation (departmental capital budget) | - | - | - | - | - |
| Other | |||||
| Sub-total transactions with owners | - | - | - | - | - |
| Transfers between equity components | - | - | - | - | - |
| Estimated closing balance as at 30 June 2011 |
262,801 | 3,303 | - | - | 266,104 |
Prepared on Australian Accounting Standards basis.
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|
Estimated actual 2009-10 $'000 |
Budget estimate 2010-11 $'000 |
Forward estimate 2011-12 $'000 |
Forward estimate 2012-13 $'000 |
Forward estimate 2013-14 $'000 |
|---|---|---|---|---|---|
| CAPITAL APPROPRIATIONS | |||||
| Capital budget - Bill 1 (DCB) | - | - | - | - | - |
| Equity injections - Bill 2 | - | - | - | - | - |
| Loans - Bill 2 | - | - | - | - | - |
| Previous years' outputs - Bill 2 | - | - | - | - | - |
| Departmental capital - special appropriation (Dept only)* | - | - | - | - | - |
| Total capital appropriations | - | - | - | - | - |
| Total new capital appropriations | |||||
| Represented by: | |||||
| Purchase of non-financial assets | - | - | - | - | - |
| Annual finance lease costs | - | - | - | - | - |
| Other Items | - | - | - | - | - |
| Total Items | - | - | - | - | - |
| PURCHASE OF NON-FINANCIAL ASSETS | |||||
| Funded by capital appropriations | - | - | - | - | - |
| Funded by capital appropriation - DCB1 | - | - | - | - | - |
| Funded by finance leases | - | - | - | - | - |
| Funded internally from departmental resources2 | 500 | 500 | 500 | 1,500 | 1,500 |
| TOTAL | 500 | 500 | 500 | 1,500 | 1,500 |
| RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE | |||||
| Total purchases | 500 | 500 | 500 | 1,500 | 1,500 |
| less additions by finance lease | - | - | - | - | - |
| less additions by creditors / borrowings | - | - | - | - | - |
| plus borrowing / finance costs | - | - | - | - | - |
| plus Annual finance lease costs | - | - | - | - | - |
| less Gifted assets | - | - | - | - | - |
| less s. 32 / restructuring | - | - | - | - | - |
| Total cash used to acquire assets | 500 | 500 | 500 | 1,500 | 1,500 |
Prepared on Australian Accounting Standards basis.
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|
Other property, plant & equipment $'000 |
Intangibles $'000 |
Total $'000 |
|---|---|---|---|
| As at 1 July 2010 | |||
| Gross book value | 82,758 | 645 | 83,403 |
| Accumulated depreciation/amortisation and impairment | (7,812) | (265) | |
| Opening net book balance | 74,946 | (265) | 74,681 |
| CAPITAL ASSET ADDITIONS | |||
| Estimated expenditure on new or replacement assets | |||
| By purchase - appropriation equity | |||
| By purchase - appropriation ordinary annual services | |||
| By purchase - donated funds | |||
| By purchase - other | 500 | 500 | |
| By finance lease | |||
| Assets received as gifts/donations | |||
| From acquisition of entities or operations (including restructuring) | |||
| Total additions | 500 | - | 500 |
| Other movements | |||
| Assets held for sale or in a disposal group held for sale | |||
| Depreciation/amortisation expense | (1,500) | (1,500) | |
| Disposals | |||
| From disposal of entities or operations(including restructuring) | |||
| Other | (20) | (20) | |
| As at 30 June 2011 | |||
| Gross book value | 83,258 | 625 | 83,883 |
| Accumulated depreciation/amortisation and impairment | (9,312) | (265) | (9,577) |
| Closing net book balance | 73,946 | 360 | 74,306 |
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 the 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 the reporting date. Section 193K of theAboriginal and Torres Strait Islander Act 2005 states that the investment restrictions in section 18(3) of theCommonwealth 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 theAboriginal 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 are classified as biological assets. Livestock are valued at market value as at the 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 theAboriginal and Torres Strait Islander Act 2005.
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