Indigenous Land Corporation gpo box 652 Adelaide sa 5001

Table 32: Funding received from the Land Account since 1 July 2004

Financial Year	Amount ($m)
2004–05	4.0
2005–06	23.8
2006–07	96.4
2007–08	0.0
2008–09	44.8
2009–10	0.0
2010–11	45.0
2011–12	51.3
2012–13	65.9
2013–14	52.5

Overview of financial results

In accordance with the Australian Government’s budget estimates framework, the ILC prepares budget estimates in May each year for the coming financial year and three future years.

Under section 191H of the Act, the ILC can invest money of the ILC. The ILC had $38.7m invested at 30 June 2014 (30 June 2012–13: $32.2m). The investment funds are used to supplement the ILC’s annual income for functional and operational expenditure.

• At 30 June 2014, the ILC held properties for grant at a value of $175m (excluding ARR). While the ILC holds properties it is responsible for maintenance and statutory costs.

• The ILC holds properties for grant that have a significant amount of livestock on them. At 30 June 2014, the ILC held 111,162 head of livestock at a value of $37.6m. In accordance with Australian Accounting Standards, the ILC values the livestock on a mark-to-market basis. Accordingly, the positive change in market value of livestock in any given period is recognised as a gain, while negative movement is recognised as an expense in the Income Statement. Transfers between properties do not create actual profits or losses. (See Part 2 for commentary on ILC-operated businesses.)

The ILC seeks independent valuations of its non-financial assets. Valuations are conducted with sufficient frequency to ensure that the carrying amount of assets does not differ materially from the asset’s fair value at reporting date.

An independent valuation of the non-financial assets of ARR was undertaken at 30 June 2014. The valuation assessed the value of non-financial assets to be $225m, representing a further impairment of $18.9m. This impairment loss is reflected in the group consolidated financial statements in Part 6. The total impairment loss since ARR was acquired is $81m.

In addition to direct spending on land acquisition and land management, the ILC incurs travel and staff costs related to:

• Conducting community consultations;

• Managing land held pending grants;

• Monitoring land acquisition and land management activities;

• Providing management and administrative support to commercial businesses run on ILC-held properties; and

• Evaluating programmes or opportunities.

The ILC experiences variances between budget estimates and actual performance due to some or all of the following:

• Actual timing of implementation of projects considered and approved in the current financial year;

• The operating results of ILC business activities; and

• The change in market value of livestock.

Total resourcing for the agency represents funds available to the ILC to carry out its legislated functions.