Indigenous Land Corporation gpo box 652 Adelaide sa 5001

ILC	2013
Average annual reportable remuneration	Senior Executives No.	Reportable Salary $	Contributed Superannuation $	Reportable Allowances $	Bonus paid $	Total $
Total remuneration (including part time arrangements)
$195,000 to $224,999	4	184,113	23,117	–	–	207,230
$225,000 to $254,999	1	207,907	34,484	–	–	242,391
$255,000 to $284,999	2	228,455	39,122	–	–	267,577
Total	7

21C. Other highly paid staff

This table reports staff who were employed by the entity during the reporting period and whose reportable remuneration was $195,000 or more for the financial period and were not required to be reported in Note 21B. Each row is an averaged figure based on headcount for individuals in the band.

Reportable salary includes the following:

• Gross payments (less any bonuses paid, which are disclosed in the bonus paid column)

• Reportable fringe benefits (at the net amount prior to “grossing up” for tax purposes

• Reportable employer superannuation contributions

• Exempt foreign employment income

The contributed superannuation amount is the average cost to the Corporation for the provision of superannuation benefits in that reportable remuneration band during the reporting period.

Reportable allowances are the average actual allowance paid as per total allowances on an individuals payment summaries.

Bonus paid represents average actual bonuses paid during the reporting period in that reportable remuneration band.

CONSOLIDATED__2014'>CONSOLIDATED	2014
Average annual reportable remuneration	Senior Executives No.	Reportable Salary $	Contributed Superannuation $	Reportable Allowances $	Bonus paid $	Total $
Total remuneration (including part time arrangements)
$225,000 to $254,999	1	191,926	17,042	–	17,047	226,015
Total	1

CONSOLIDATED	2013
Average annual reportable remuneration	Senior Executives No.	Reportable Salary $	Contributed Superannuation $	Reportable Allowances $	Bonus paid $	Total $
Total remuneration (including part time arrangements)
$195,000 to $224,999	2	175,069	16,950	–	15,776	207,795
Total	2

The ILC has no other highly paid staff.

Consol 2014 $,000

Consol 2013 $,000

ILC 2014 $,000

ILC 2013 $,000

22. Remuneration of auditors

Remuneration to the Auditor General:
Financial statement audits	233	215	91	87
Other assurance services	21	17	6	–
Total remuneration of auditors	254	232	97	87

23. Financial instruments

23A. Categories of financial instruments

Financial Assets

Held-to-maturity investments
Term deposits	34,000	42,000	34,000	42,000
Other investments	–	–	1	1
Loans and receivables
Cash	15,157	8,291	2,475	113
Receivables	11,938	8,260	6,162	3,305
Other deposits	2,246	5,079	2,246	5,079
Repayable grants / advances	327	405	321,744	309,313
Carrying amount of financial assets	63,668	64,035	366,628	359,811
Financial Liabilities
Financial liabilities measured at amortised cost
Supplier payables	14,102	14,053	5,498	6,918
Other payables	19,323	18,085	19,121	17,986
Interest bearing loans	198,000	198,809	138,000	138,000
Carrying amount of financial liabilities	231,425	230,947	162,619	162,904

Consol 2014 $,000

Consol 2013 $,000

ILC 2014 $,000

ILC 2013 $,000

23B. Net income and expenses from financial assets

Held-to-maturity investments – interest received
Term deposits	2,023	2,058	2,023	2,058
	2,023	2,058	2,023	2,058
Loans and receivables – interest received
Cash	225	670	27	41
Other deposits	–	–	18,164	19,640
Repayable grants/advances	–	3	–	3
	225	673	18,191	19,684
Loans and receivables – impairment movement
Repayable grants/advances	4	29	4	29
Net income from financial assets	2,252	2,760	20,218	21,771

23C. Net income and expenses from financial liabilities

Financial liabilities measured at amortised cost
Interest bearing loans	11,094	11,507	8,970	8,955
Net income from financial liabilities	11,094	11,507	8,970	8,955

	Total Carrying Amount 2014 $,000	Aggregate Net Fair Value 2014 $,000	Total Carrying Amount 2013 $,000	Aggregate Net Fair Value 2013 $,000
23D. Net fair value of financial assets and liabilities (consolidated)
Financial Assets
Cash	15,157	15,157	8,291	8,291
Receivables	11,938	11,938	8,260	8,260
Other deposits	2,246	2,246	5,079	5,079
Term deposits	34,000	34,000	42,000	42,000
Repayable grants / advances	327	327	405	405
Total financial assets	63,668	63,668	64,035	64,035
Financial Liabilities
Suppliers	14,102	14,102	14,053	14,053
Other payables	19,323	19,323	18,085	18,085
Interest bearing loans	198,000	206,940	198,809	198,809
Total financial liabilities	231,425	240,365	230,947	230,947

The net fair values of cash, deposits on call and non-interest bearing monetary financial assets approximate their carrying amount.

The net fair values of loans receivable and other deposits are based on discounted cash flows using current interest rates.

Repayable grants / advances are carried at amortised cost, which estimates their net fair value, because it is intended to hold them to maturity.

The net fair value of guarantees are based on discounted cash flows using current interest rates for the liabilities.

The net fair value for supplier and other payables are approximated by their carrying amounts.

All financial liabilities are level 1 and have their fair value determined based on quoted prices in active markets.

23E. Financial risk management objectives and policies

The Corporation’s principal financial instruments comprise receivables, payables, repayable grants, cash and short term deposits.

The Corporation manages its exposure to financial risks, in accordance with written policies. The objective of the policies are to maximise the income to the ILC whilst minimising the downside risk.

The Corporation’s activities expose it to normal commercial financial risk. The main risks arising from the Corporations financial instruments are market risk, interest rate risk, price risk, credit risk and liquidity risk. Risks are considered to be low.

Risk exposures and responses

Market risk

The Corporation’s exposure to market risk is through its investment portfolio. Investments are disclosed in note 9C. The Corporation minimises its exposure to market risk by placing the majority of its investment funds in fixed rate term deposits with major banks, with the remainder being held on short term deposits with major banks. This also considerably diminished its interest rate risk.

Price risk

The Corporation also has exposure to commodity price risk through the holding of biological asset produce. The Corporation does not hedge this risk.

Interest rate risk

Interest rate risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Corporation is exposed to interest rate risk primarily from cash and short term deposits. The Corporation’s policy is to manage its financial assets and liabilities with a mix of fixed rate and variable rate products. Cash, short term deposits utilise variable rates. As at balance date, the Corporation had the following mix of financial assets and liabilities exposed to Australian variable interest rate risk.

	Consol 2014 $,000	Consol 2013 $,000	ILC 2014 $,000	ILC 2013 $,000
Financial Assets
Cash	15,157	8,291	2,475	113
Other deposits	2,246	5,079	2,246	5,079
Term deposits	34,000	42,000	34,000	42,000
	51,403	55,370	38,721	47,192
Financial Liabilities
Interest bearing loan	60,000	60,000	–	–
Net Assets	(8,597)	(4,630)	38,721	47,192

23E. Financial risk management objectives and policies (cont.)

The table below details the interest rate sensitivity analysis of the entity at the reporting date, holding all other variables constant. A 60 basis point change is deemed to be reasonably possible and is used when reporting interest rate risk.

			Effect on	Effect on
	Risk variable	Change in variable	Profit or loss	Equity	Profit or loss	Equity
			2014	2014	2013	2013
			$,000	$,000	$,000	$,000
Consolidated
Interest rate risk	Interest	+0.6%	(52)	(52)	(28)	(28)
		-0.6%	52	52	28	28
ILC
Interest rate risk	Interest	+0.6%	232	232	283	283
		-0.6%	(232)	(232)	(283)	(283)

The method used to arrive at the possible risk of 60 basis points was based on both statistical and non-statistical analysis. The statistical analysis has been based on the cash rate for the past five years issued by the Reserve Bank of Australia (RBA) as the underlying dataset. This information is then revised and adjusted for reasonableness under the current economic circumstances.

Credit risk

Credit risk arises from the financial assets of the Corporation, which comprise cash, deposits, trade and other receivables and repayable grants. The exposure to credit risk arises from the potential default of the counter party, with a maximum exposure equal to the carrying amount of these instruments. Exposure at balance date is addressed in each applicable note.

The Corporation has a significant concentration to credit risk through its cash and deposits. The concentration is with major banks in Australia. The Corporation ensures that this concentration is managed by the exposure not all being with one particular bank and by utilising banks with high credit ratings.

Receivables and repayable grant balances are monitored on an ongoing basis with the result that the Corporation’s exposure to bad debts is not significant.

23E. Financial risk management objectives and policies (cont.)

Credit risk of receivables and repayable grants not past due or individually determined as impaired:

	Not Past Due or Impaired 2014 $,000	Not Past Due or Impaired 2013 $,000	Past Due or Impaired 2014 $,000	Past Due or Impaired 2013 $,000
Consolidated
Receivables	10,352	5,895	1,891	2,686
Repayable grants/advances	327	405	182	186
	10,679	6,300	2,073	2,872
ILC
Receivables	6,178	2,025	–	1,291
Repayable grants/advances	321,744	309,313	182	186
	327,922	311,338	182	1,477

Repayable grants that are past due but not impaired nil (2013: nil).

Ageing of receivables and repayable grants/advances that are past due but not impaired for 2014

	0–30 Days	31–60 days	61–90 days	90+ days	Total
	$,000	$,000	$,000	$,000	$,000
Receivables and repayable grants/advances	805	495	236	50	1,586

Ageing of receivables that are past due but not impaired for 2013

	0–30 Days	31–60 days	61–90 days	90+ days	Total
	$,000	$,000	$,000	$,000	$,000
Receivables and repayable grants/advances	1,863	345	21	136	2,365

23E. Financial risk management objectives and policies (cont.)

Liquidity risk

The Corporation also reduces its exposure to liquidity risk by monitoring its cash flows closely through rolling future cash flows and monitoring the ageing of receivables and payables.

Maturity of financial liabilities as at 30 June 2014

	On Demand	Within 1 year	1–5 Years	>5 Years	Total
	$,000	$,000	$,000	$,000	$,000
Supplier payables	–	14,102	–	–	14,102
Other payables	–	1,088	15,692	2,543	19,323
Interest bearing loans	–	–	198,000	–	198,000
Total	–	15,190	213,692	2,543	231,425

Maturity of financial liabilities as at 30 June 2013

	On Demand	Within 1 year	1–5 Years	>5 Years	Total
	$,000	$,000	$,000	$,000	$,000
Supplier payables	–	14,053	–	–	14,053
Other payables	–	504	15,028	2,553	18,085
Interest bearing loans	–	809	198,000	–	198,809
Total	–	15,366	213,028	2,553	230,947

23F. Financial assets reconciliation

	Consol 2014 $,000	Consol 2013 $,000	ILC 2014 $,000	ILC 2013 $,000
Total financial assets as per Statement of Financial Position	63,767	64,284	367,277	360,561
Less: non financial instrument components
GST Receivable from ATO	99	249	649	750
Total financial assets as per instruments note	63,668	64,035	366,628	359,811