Dear Minister

2. Insurance

The Corporation has insured for risks through the Government’s insurable risk managed fund, “Comcover”. Workers’ compensation for the ILC is insured through Comcare Australia. Workers compensation for the other entities making up the economic entity are insured through workers compensation providers in the state that the operations are located.

3. Economic dependency

The Corporation was established by section 191A of the Indigenous Land Corporation (ATSIC Amendment) Act 1995 and is controlled by the Commonwealth of Australia. During the reporting period the ILC was dependent on the “realised real return” on the investments of the Aboriginal and Torres Strait Islander Land Account in accordance with Section 193C of the Aboriginal and Torres Strait Islander Act 2005 (“ATSI Act”).

4. Events occurring after the balance sheet date

There are no events occurring after balance sheet date.

	Consol 2011 $,000	Consol 2010 $,000	ILC 2011 $,000	ILC 2010 $,000
5. Expenses
5A. roperty granted
The expense relates to the value of land granted (at cost) to appropriate Indigenous organisations in line with the objectives of the ILC. Costs incurred in transferring land, unsuccessful acquisitions or projects considered unlikely to proceed at reporting date are also included in this expense.
Value of property granted	13,789	13,548	13,789	13,548
Associated costs	235	284	235	284
Total property granted expenses	14,024	13,832	14,024	13,832
Property granted expense
Related entities	–	–	–	–
External entities	14,024	13,832	14,024	13,832
Total property granted expenses	14,024	13,832	14,024	13,832
5B. and acquisition
The expense relates to due diligence undertaken on land acquisition projects that have proceeded to acquisition but are not included in the cost of acquisition.
Due diligence costs	5,235	–	5,235	–
Total costs of land acquisition expense	5,235	–	5,235	–
Property granted expense
Related entities	–	–	–	–
External entities	5,235	–	5,235	–
Total costs of land acquisition expense	5,235	–	5,235	–
5C. rovision for property held for grant and assets held in trust
A provision is raised in the Statement of Comprehensive Income for the full cost of land and infrastructure purchases representing the sacrifice of future benefits embodied in the assets. The following represents the net movement in the provisions for the reporting period.
Total movement in the provision for property held for grant	5,105	(10,752)	5,105	(10,752)
Total movement in the provision for assets held in trust	3,458	125	3,458	125

	Consol 2011 $,000	Consol 2010 $,000	ILC 2011 $,000	ILC 2010 $,000
5D. and management
The ILC works with the Indigenous corporations and develops a package of support in the form of agreed solutions to land management issues identified by the land owners. Some of the forms of support include entering into services and funding agreements. These agreements carry over a number of years with the land owners or supporting bodies being required to demonstrate both expenditure and performance objectives prior to release of agreed funding. Land Management expenses are recorded as expenses in the Statement of Comprehensive Income in the period in which they are incurred. Land Management expenses also include land management on land held by the ILC and includes the cost of caretaking, use, maintenance and improvement of that land.
Land management expenses
Related entities	6,148	7,064	6,148	7,064
External entities	28,398	23,707	36,150	30,542
Total land management expenses	34,546	30,771	42,298	37,606

5E. Employee benefits

Wages and salaries	20,928	15,529	9,357	8,864
Superannuation:
Defined contribution plan	793	818	793	814
Defined benefit plan	1,502	1,029	603	497
Separation and redundancy	112	142	84	142
Total employee benefits	23,335	17,518	10,837	10,317

This comprises salary costs, superannuation costs, employee leave provisions and staff recruitment costs. 
All superannuation contributions are considered to be to defined contribution plans (refer Note 1.10).

The consolidated amount includes employees of NIPE, Voyages and other ILC subsidiaries.

	Consol 2011 $,000	Consol 2010 $,000	ILC 2011 $,000	ILC 2010 $,000
5F. uppliers expenses
Goods and services:
Raw materials and consumables	2,974	–	–	–
Travel	1,513	1,456	1,484	1,440
Consultants	687	962	534	757
Marketing	757	–	–	–
Other	6,415	3,554	2,112	2,221
Total supplier expenses	12,346	5,972	4,130	4,418
Goods and services are made up of:
Rendering of services – related entities	194	82	146	82
Rendering of services – external entities	12,152	5,890	3,984	4,336
Total supplier expenses	12,346	5,972	4,130	4,418
Other supplier expenses:
Operating lease rentals^1	1,835	1,659	1,734	1,659
Workers compensation premiums	57	49	50	49
Total other supplier expenses	1,892	1,708	1,784	1,708
Total supplier expenses	14,238	7,680	5,914	6,126
^1 These comprise minimum lease payments only

	Consol 2011 $,000	Consol 2010 $,000	ILC 2011 $,000	ILC 2010 $,000
5G. epreciation and amortisation
Depreciation of property, plant and equipment	6,606	6,089	6,596	6,080
Total depreciation	6,606	6,089	6,596	6,080
Amortisation of “make good” asset	47	47	47	47
Amortisation of software	131	123	131	123
Total amortisation	178	170	178	170
Total depreciation and amortisation	6,784	6,259	6,774	6,250
The aggregate amounts of depreciation or amortisation expense during the reporting period for each class of depreciable assets are as follows:
Administration Assets
Office equipment	35	44	33	44
Furniture and fittings	15	8	13	7
Computer equipment	223	199	218	191
Office fitouts	226	239	225	239
Commercial Property Assets
Buildings and infrastructure	3,631	3,080	3,631	3,080
Plant and equipment	1,231	1,430	1,231	1,430
Furniture and fitting	82	96	82	96
Motor vehicles	1,163	993	1,163	993
Amortisation of “make good” asset	47	47	47	47
Amortisation of software	131	123	131	123
Total depreciation and amortisation	6,784	6,259	6,774	6,250

5H. inance costs
Loans	1,520	–	1,520	–
Total finance costs	1,520	–	1,520	–

	Consol 2011 $,000	Consol 2010 $,000	ILC 2011 $,000	ILC 2010 $,000
5I. ncome tax expense
The major components of income tax expense are:
Income Statement
Current income tax
Current income tax charge	354	–	–	–
Deferred income tax
Relating to origination of temporary differences	(102)	–	–	–
Income tax reported in Statement of Comprehensive Income	252	–	–	–
Numerical reconciliation between aggregate tax expenses recognised in the Statement of Comprehensive Income and tax expense calculated per the statutory income tax rate.
Total accounting profit	14,335	(23,935)	11,515	(22,425)
Accounting profit not subject to income tax	11,459	(23,935)	11,515	(22,425)
Total accounting profit subject to income tax	2876	–	–	–
Income tax on profit at statutory rate (30%)	863	–	–	–
Discount on business combination	(619)	–	–	–
Entertainment	–	–	–	–
Fringe benefits tax	8	–	–	–
Aggregate income tax expense	252	–	–	–

Deferred tax assets
Opening balance	–	–	–	–
Charged to income	102	–	–	–
Charged to equity	–	–	–	–
Other payments	–	–	–	–
Acquisitions	592	–	–	–
Closing balance	694	–	–	–
	Consol 2011 $,000	Consol 2010 $,000	ILC 2011 $,000	ILC 2010 $,000
5I. ncome tax expense (cont..)
Tax Expense in the Statement of Comprehensive Income
Amounts recognised in the Balance Sheet:
Deferred tax asset	694	–	–	–
Deferred tax liability	(5,523)	–	–	–
	(4,829)	–	–	–
Deferred tax assets
Provision for doubtful debts	2	–	–	–
Provision for annual leave	521	–	–	–
Provision for long service leave	76	–	–	–
Other	95	–	–	–
Total deferred tax assets	694	–	–	–
Deferred tax liabilities
Intangibles:
Airport lease and licence	4,550	–	–	–
Other contracts and relationships	973	–	–	–
Total deferred tax liabilities	5,523	–	–	–