Portfolio Budget Statements 2008-09  

• 3.1 Explanatory Tables
• 3.2 Budgeted Financial Statements

This section presents budgeted financial statements which provide a comprehensive snapshot of agency finances for the Budget year 2008–09. It explains how budget plans are incorporated into the financial statements and provides further details of movements in administered funds and special accounts, and Government Indigenous expenditure.

3.1 Explanatory Tables

3.1.1 Reconciliation of total available appropriation and outcomes

ILC has no appropriations.

3.1.2 Movement of administered funds between years

ILC has no administered funds in the 2008–09 Budget.

3.1.3 Special Accounts

ILC has no special accounts in the 2008–09 Budget.

3.1.4 Australian Government Indigenous Expenditure Table 3.1.4 Australian Government Indigenous Expenditure

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 Aboriginal and Torres Strait Islander Land Account (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).

Under its legislation, ILC has the flexibility to invest funds and to roll over funds not expended in previous years.

Estimated payments from the Land Account from 2006–07 forward have been provided by FaHCSIA which is responsible for the administration of the Land Account.

The total price of outputs includes the income from the Land Account, and represents the funds available to ILC to carry out its legislated functions.

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 Income Statement, the expenses associated with the purchase and grant of the land are recognised in the period in which the land is purchased.

Under paragraph 191H(2)(b) of the ATSI Act, ILC has the specific power to invest money of the ILC. In addition, subsection 193K(1) of the ATSI Act exempts the ILC from subsection 18(3) of the Commonwealth Authorities and Companies Act 1997 (the CAC Act). Subsection 18(3) of the CAC Act deals with the investment of surplus money.

In accordance with Australian Accounting Standards, ILC values its investments on a market-to-market basis. Accordingly, the change in market value in any given period is recognised in the Budgeted Departmental Income Statement.

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 Income Statement.

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3.2.3: Budgeted financial statements tables

Prepared on Australian Accounting Standards basis

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*Note: 'equity' is the residual interest in assets after deduction of liabilities.
Prepared in Australian Accounting Standards basis

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Prepared on Australian Accounting Standards basis

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Prepared on Australian Accounting Standards basis

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 Revenue 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.