Dear Minister

¹ Financial Management and Accountability Determination 2007/21 established the Northern Territory Flexible Funding Pool Special Account (NTFFP Special Account) under section 20(1) of the Financial Management and Accountability Act 1997 to develop, promote, assist or implement employment creation initiatives in relation to the Northern Territory Emergency Response. The NTFFP Special Account is managed by the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA).

Subsequent to Appropriation Act (No.3) 2007–08 and Appropriation Act (No.3) 2007–08– Section 12 Determination 2008/01 Flexible Funding Pool Receipts 2008, amounts were paid by FaHCSIA from the NTFFP Special Account to agencies for payment to third parties.

On 1 July 2009, the Indigenous Employment Special Account (IESA) was established as a replacement for the Northern Territory Flexible Funding Pool Special Account. Various agencies, including the ILC receive funding from IESA to pay for jobs and traineeships in organisations funded by those agencies

From 1 July 2010, Commonwealth portfolio departments receive direct appropriations for these purposes rather than receive funds through IESA.

The amounts received by the Corporation are for the support of up to 150 jobs in the Northern Territory in land management and pastoral activities. The income is recognised on receipt and corresponding payments are recognised as expenses when incurred or when paid to third parties.

² Receipts from the Aboriginal and Torres Strait Islander Land Account (Land Account) is a minimum $45 million in accordance with Section 193C of the ATSI Act. The Land Account is administered by FaHCSIA.

Receipts from the Land Account are recognised at the time the ILC becomes entitled to receive the revenue.

³ During the reporting period, the ILC received a substantial contribution from FaHCSIA for the construction of a secondary school boarding hostel in Weipa Qld. The ILC will utilise these funds for the construction under the current and future reporting periods.

The ILC also receives small amounts from Government departments as contributions to some of its land management projects. The income is recognised on an earned basis.

	Consol 2011 $,000	Consol 2010 $,000	ILC 2011 $,000	ILC 2010 $,000
9. inancial assets
9A. ash and cash equivalents
Cash at bank and on hand	9,491	2,986	2,043	2,627
Deposits at call	10,488	16,905	10,488	16,905
Deposit with maturity less than 3 months	40,000	112,800	40,000	112,800
Cash advances	20	23	20	23
Total cash and cash equivalents	59,999	132,714	52,551	132,355
9B. rade and other receivables
Goods and services:
Goods and services – related entities	2,072	135	840	135
Goods and services – external parties	4,701	910	1,802	804
Total receivable for goods and services	6,773	1,045	2,642	939
Other receivables:
Interest receivable	358	237	358	237
Cash with agent	–	1,300	–	1,300
Insurance proceeds	351	263	351	263
Other debtors	2,475	929	618	929
GST receivable from ATO	772	–	1,469	–
Total other receivables	3,956	2,729	2,796	2,729
Total trade and other receivables (gross)	10,729	3,774	5,438	3,668
Less: Allowance for impairment loss	(59)	(145)	(53)	(145)
Total trade and other receivables (net)	10,670	3,629	5,385	3,523
Receivables are expected to be recovered in:
No more than 12 months	10,670	3,629	5,385	3,523
More than 12 months	–	–	–	–
Total trade and other receivables (net)	10,670	3,629	5,385	3,523
9B. rade and other receivables (cont..)
Receivables are aged as follows:
Not overdue	9,157	3,380	4,726	3,337
Overdue by
– less than 30 days	961	47	106	34
– 30 to 60 days	398	80	397	30
– 60 to 90 days	4	25	3	25
– more than 90 days	209	242	206	242
	1,572	394	712	331
	10,729	3,774	5,438	3,668
The allowance for impairment loss is aged as follows:
Not overdue	6	2	–	2
Overdue by
– less than 30 days	–	–	–	–
– 30 to 60 days	–	2	–	2
– 60 to 90 days	–	3	–	3
– more than 90 days	53	138	53	138
	53	143	53	143
	59	145	53	145
Reconciliation of allowance for impairment
Opening balance	145	129	145	129
Amounts written off	(20)	(2)	(19)	(2)
Amounts recovered or reversed	(76)	(3)	(77)	(3)
Increase/ decrease recognised in net surplus	10	21	4	21
Closing balance	59	145	53	145
9C. nvestments
Term deposits	25,000	24,987	25,000	24,986
Shares in subsidiary companies^1	–	–	1	–
Total investments	25,000	24,987	25,001	24,986
Total investments are expected to be recovered in:
No more than 12 months	25,000	24,987	25,000	24,986
More than 12 months	–	–	1	–
Total investments	25,000	24,987	25,001	24,986
^1The ILC owns 100% of shares in each of its subsidiaries.
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).
9D. ther financial assets
Advances to subsidiary:
National Centre of Indigenous Excellence Ltd	–	–	3,492	1,506
Voyages Indigenous Tourism Australia	–	–	297,490	–
Vendor contribution for capital development	21,224	–	21,224	–
Repayable grants to Aboriginal corporations	848	1,435	848	1,435
Total	22,072	1,435	323,054	2,941
Less: provision for impairment	(266)	(689)	(266)	(689)
Total other financial assets	21,806	746	322,788	2,252
Total other financial assets are expected to be recovered in:
No more than 12 months	124	171	125	1,677
More than 12 months	21,682	575	322,663	575
Total other financial assets	21,806	746	322,788	2,252
Other financial assets (gross) are aged as follows:
Not overdue	21,809	1,289	322,791	2,795
Overdue by
– one year or less	263	140	263	140
– from one to five years	–	6	–	6
– over five years	–	–	–	–
	263	146	263	146
	22,072	1,435	323,054	2,941
9D. ther financial assets (cont..)
Allowance for impairment loss is aged as follows:
Not overdue	60	600	60	600
Overdue by
– one year or less	206	83	206	83
– from one to five years	–	6	–	6
– over five years	–	–	–	–
	206	89	206	89
	266	689	266	689
Reconciliation of provision for impairment
Opening balance	689	200	689	200
Amounts written off	(484)	–	(484)	–
Amounts recovered or reversed	(30)	–	(30)	–
Increase recognised in net surplus	91	489	91	489
Closing balance	266	689	266	689