Income statement for the year ended 30 June 2006

Income Note 2006 2005
$'000 $'000
Revenue
Revenues from Government 3A 32,013 33,930
Goods and services 3B 70 67
Total revenue 32,083 33,997
Gains
Net gains from disposal of assets 3C 2 –
Total gains 2 –
Total income 32,085 33,997
Expenses
Employees 4A 19,989 20,180
Suppliers 4B 9,873 11,121
Depreciation and amortisation 4C 763 617
Write-down of assets 4D 6 –
Total expenses 30,631 31,918
Operating result before income tax 1,454 2,079
Income tax equivalent expense – –
Operating result 1,454 2,079

The above statement should be read in conjunction with the accompanying notes.

Balance sheet as at 30 June 2006

Note 2006 2005
$'000 $'000
Assets
Financial assets
Cash and cash equivalents 5A 1,450 3,222
Receivables 5B 8,872 5,886
Total Financial Assets 10,322 9,108
Non-Financial assets
Land and buildings 6A,C 259 281
Infrastructure, plant and equipment 6B,C 1,006 944
Intangibles 6D 210 297
Other non-financial assets 6E 63 17
Total Non-Financial Assets 1,538 1,539
Total Assets 11,860 10,647
Liabilities
Payables
Suppliers 7 340 542
Total Payables 340 542
Provisions
Employee provisions 8A 3,543 3,728
Other provisions 8B 442 –
Total provisions 3,985 3,728
Total Liabilities 4,325 4,270
Net Assets 7,535 6,377
Equity
Contributed equity 2,415 2,415
Retained surplus 5,120 3,962
Total equity 7,535 6,377
Current assets 10,385 9,125
Non-current assets 1,475 1,522
Current liabilities 763 2,474
Non-current liabilities 3,562 1,796

The above statement should be read in conjunction with the accompanying notes.

Statement of cash flows for the year ended 30 June 2006

Note 2006 2005
$'000 $'000
Operating Activities
Cash received
Goods and services 47 49
Appropriations 32,013 33,695
Net GST received from ATO 1,033 1,294
Total cash received 33,093 35,038
Cash used
Employees 20,099 19,882
Suppliers 11,260 11,512
Cash transferred to OPA 3,000 –
Total cash used 34,359 31,394
Net cash from or (used by) operating activities 9 (1,266) 3,644
Investing Activities
Cash used
Purchase of property, plant and equipment 506 494
Purchase of intangibles – 30
Total cash used 506 524
Net cash from or (used by) investing activities (506) (524)
Net increase or (decrease) in cash held (1,772) 3,120
Cash at the beginning of the reporting period 3,222 102
Cash at the end of the reporting period 5A 1,450 3,222

The above statement should be read in conjunction with the accompanying notes.

Statement of changes in equity for the year ended 30 June 2006

Accumulated Results Contributed Equity/Capital Total Equity
2006 2005 2006 2005 2006 2005
$’000 $’000 $’000 $’000 $’000 $’000
Opening Balance 3,666 1,883 2,415 2,415 6,081 4,298
Adjustment for errors – – – – – –
Adjustment for changes in Accounting policies – (296) – – – (296)
Adjusted Opening Balance 3,666 1,587 2,415 2,415 6,081 4,002
Income and Expense
Revaluation adjustment – – – – – –
Subtotal income and expenses recognised directly in equity – – – – – –
Net Operating Result 1,454 2,079 – – 1,454 2,079
Total income and expenses 1,454 2,079 – – 1,454 2,079
Transactions with Owners
Distributions to owners
Returns on Capital
– Dividends – – – – – –
Contributions by Owners
Appropriation (equity injection) – – – – – –
Restructuring (Note 12) – – – – – –
Sub-total Transactions with Owners – – – – – –
Transfers between equity components – – – – – –
Closing balance at 30 June 5,120 3,666 2,415 2,415 7,535 6,081

The above statement should be read in conjunction with the accompanying notes.

Schedule of commitments as at 30 June 2006

2006 2005
By Type $’000 $’000
Capital commitments
Infrastructure, plant and equipment – –
a) Total Capital Commitments
 – –
Other Commitments
Operating leases 1 6,240 5,654
Other 2 327 410
b) Total Other Commitments
 6,566 6,064
Commitments Receivable (597) (551)
Net Commitments by type 5,969 5,513
By Maturity
Operating Lease Commitments
One year or less 3,890 3,615
From one to five years 2,676 2,449
c) Total Operating Lease Commitments by maturity
 6,566 6,064
Commitments Receivable (597) (551)
Net Commitments by Maturity 5,969 5,513
NB: Commitments are GST inclusive where relevant. 1 Operating leases included are effectively non-cancelable and comprise leases for office accommodation.2 Other comprises orders placed for consumable goods and services.

Schedule of administered items

Notes 2006 2005
Revenues Administered on Behalf of Government
for the year ended 30 June 2006
Non-taxation Revenue
Fees 13 8
Total Revenues Administered on Behalf of Government 13 8
Expenses Administered on Behalf of Government
for the year ended 30 June 2006
Write-down of assets – –
Total Expenses Administered on Behalf of Government – –
Assets Administered on behalf of Government
as at 30 June 2006 16 Nil Nil
Liabilities Administered on behalf of Government
as at 30 June 2006 Nil Nil
Administered Cash Flows
as at 30 June 2006
Cash Received
– Fees 13 8
Cash Used
– Refund of Fee 2 5
Net increase in cash held 11 3
– Cash at beginning of reporting period – –
– Cash from Official Public Account 2 5
13 8
– Cash transfer to Official Public Account 13 8
Cash at end of reporting period – –
Administered Commitments
as at 30 June 2006 Nil Nil
Administered Contingencies
as at 30 June 2006 Nil Nil
Statement of Activities Administered on Behalf of Government
The administered activities of the Tribunal are directed towards achieving the outcome described in Note 1 to the Financial Statements. The activities are the collection of fees for lodgement of applications and for inspection of the Native Title Register.

Notes to and forming part of the financial statements for the year ended 30 June 2006

Note 1 Summary of significant accounting policies *

Note 2 The impact of the transition to AEIFRS from previous AGAAP *

Note 3 Income *

Note 4 Operating expenses *

Note 5 Financial Assets *

Note 6 Non-financial assets *

Note 7 Payables *

Note 8 Provisions *

Note 9 Cash flow reconciliation *

Note 10 Contingent liabilities and assets *

Note 11 Executive remuneration *

Note 12 Remuneration of Auditors *

Note 13 Average staffing levels *

Note 14 Financial instruments *

Note 15 Income administered on behalf of Government *

Note 16 Administered reconciliation table *

Note 17 Appropriations *

Note 18 Special accounts *

Note 19 Reporting of outcomes *

Note 1 Summary of significant accounting policies

1.1 Objectives of the National Native Title Tribunal

The National Native Title Tribunal (‘the Tribunal’) is an Australian Public Service organisation. The objectives of the Tribunal are:

To assist people to develop agreements that resolve native title issues.

To have fair and efficient processes for making arbitral and registration decisions.

To provide accurate and comprehensive information about native title matters to clients, governments and communities.

To have a highly skilled, flexible, diverse and valued workforce.

The Tribunal is structured to meet one outcome, the resolution of native title issues over land and waters.

Tribunal activities contributing to this outcome are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, revenues and expenses controlled or incurred by the Tribunal in its own right. Administered activities involve the management or oversight by the Tribunal, on behalf of the Government, of items controlled or incurred by the Government.

Departmental activities are identified under three Outputs:

Output 1 - Stakeholder and Community Relations;

Output 2 - Agreement-Making; and

Output 3 - Decisions.

The continued existence of the Tribunal in its present form and with its present programs is dependent on Government policy and on continuing appropriations by Parliament for the Tribunal’s administration and programs.

1.2 Basis of preparation of the financial statements

The financial statements are required by section 49 of the Financial Management and Accountability Act 1997 and are a general purpose financial report.

The statements have been prepared in accordance with:

Finance Minister’s Orders (or FMOs, being the Financial Management and Accountability Orders (Financial Statements for reporting periods ending on or after 1 July 2005);

Australian Accounting Standards issued by the Australian Accounting Standards Board that apply for the reporting period; and

Interpretations issued by the AASB and UIG that apply for the reporting period.

This is the first financial report to be prepared under Australian Equivalents to International Financial Reporting Standards (AEIFRS). The impacts of adopting AEIFRS are disclosed in Note 2.

The Income Statement and Balance Sheet have been prepared on an accrual basis and are in accordance with historical cost convention, except for certain assets and liabilities which, as noted, are at fair value or amortised cost. No allowance is made for the effect of changing prices on the results or the financial position.

The financial report is presented in Australian dollars and values are rounded to the nearest thousand dollars unless disclosure of the full amount is specifically required.

Unless alternative treatment is specifically required by an accounting standard, assets and liabilities are recognised in the Balance Sheet when and only when it is probable that future economic benefits will flow and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under agreements equally proportionately unperformed are not recognised unless required by an Accounting Standard. Liabilities and assets that are unrecognised are reported in the Schedule of Commitments. The Tribunal had no Contingencies other than unquantifiable or remote contingencies, which are reported at Note 10.

Unless alternative treatment is specifically required by an accounting standard, revenues and expenses are recognised in the Income Statement when and only when the flow or consumption or loss of economic benefits has occurred and can be reliably measured.

Administered revenues, expenses, assets and liabilities and cash flows reported in the Schedule of Administered Items are accounted for on the same basis and using the same policies as for Tribunal items, except where otherwise stated at Note 1.5

1.3 Significant accounting judgments and estimates

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period.

1.4 Statement of compliance

The financial report complies with Australian Accounting Standards, which include Australian Equivalents to International Financial Reporting Standards (AEIFRS).

Australian Accounting Standards require the Tribunal to disclose Australian Accounting Standards that have not been applied, for standards that have been issued but are not yet effective.

The AASB has issued amendments to existing standards, these amendments are denoted by year and then number, for example 2005–1 indicates amendment 1 issued in 2005.

The table below illustrates standards and amendments that will become effective for the Tribunal in the future. The nature of the impending change within the table has been out of necessity abbreviated and users should consult the full version available on the AASB’s website to identify the full impact of the change. The expected impact on the financial report of adoption of these standards is based on the Tribunal’s initial assessment at this date, but may change. The Tribunal intends to adopt all of standards upon their application date.

Title Standard affected Application date * Nature of impending change Impact expected on financial report
2005-10 AASB 132, AASB 101, AASB 114, AASB 117, AASB 133, AASB 139, AASB 1, AASB 4, AASB 1023 and AASB 1038 1 Jan 2007 Amended requirements subsequent to the issuing of AASB 7. No expected impact.
2006–1 AASB 121 31 Dec 2006 Changes in requirements for net investments in foreign subsidiaries depending on denominated currency. No expected impact.
AASB7 Financial Instruments: Disclosures 1 Jan 2007 Revise the disclosure requirements for financial instruments from AASB132 requirements. No expected impact.

* Application date is for annual reporting periods beginning on or after the date shown

1.5 Revenue

Revenues from Government

Amounts appropriated for Departmental outputs appropriations for the year (less any current year savings and reductions) are recognised as revenue.

Savings are amounts offered up in Portfolio Additional Estimates Statements. Reductions are amounts by which appropriations have been legally reduced by the Finance Minister under Appropriation Act No3 of 2004–05.

Appropriations receivable are recognised at their nominal amounts.

Other revenue

Revenue from the sale of goods is recognised when:

The risks and rewards of ownership have been transferred to the buyer;

The seller retains no managerial involvement nor effective control over the goods;

The revenue and transaction costs incurred can be reliably measured; and

It is probable that the economic benefits associated with the transaction will flow to the entity.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

The amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and

The probable economic benefits with the transaction will flow to the entity.

1.6 Gains

Resources received free of charge

Services received free of charge are recognised as gains when and only when a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

1.7 Transactions with the Government as owner

Other distributions to owners

The FMOs require that distributions to owners be debited to contributed equity unless in the nature of a dividend. In the 2005–2006 financial year, by agreement with the Department of Finance, $3M was transferred to OPA. These amounts are disclosed as receivables in accordance with note 5B.

On 28 June 2006, a request was issued to the Finance Minister to make a determination to reduce Departmental Output Appropriations, relative to 2003–2004, by $1,921,000. This determination was not made at the 30 June 2006.

1.8 Employee benefits

As required by the Finance Minister’s Orders, the tribunal has early adopted AASB 119 Employee Benefits as issued in December 2004.

Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled.

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119) and termination benefits due within twelve months of balance date are measured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

All other employee benefit liabilities are measured as the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date.

Leave

The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Tribunal is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration, including the Tribunal’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined by reference to the work of an actuary as at 30 June 2006. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and redundancy

No provision has been made for separation and redundancy payments as the Tribunal has not identified any positions as excess to requirements within the next 12 months.

Superannuation

The majority of staff of the Tribunal are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap). As mall number of staff are members of AGEST and SunSuper.

The CSS and PSS are defined benefit schemes for the Commonwealth. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course.

The Tribunal makes employer contributions to the Australian Government at rates determined by an actuary to be sufficient to meet the cost to the Government of the superannuation entitlements of the Tribunal’s employees.

Contributions to the AGEST and Sun Super comply with the requirements of Superannuation Guarantee legislation.

From 1 July 2005, new employees are eligible to join the PSSap scheme.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight at financial year end and the unused annual leave provision total.

1.9 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased non-current assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.

Operating lease payments are expensed on a straight line basis which is representative of the pattern of benefits derived from the leased assets.

The Tribunal had no finance leases in existence at 30 June 2006.

1.10 Cash

Cash means notes and coins held and any deposits held at call with a bank or financial institution. Cash is recognised at its nominal amount.

1.11 Financial Risk Management

The Tribunal’s activities expose it to normal commercial financial risk. As a result of the nature of the Tribunal’s business and internal and Australian Government policies, dealing with the management of financial risk, the Tribunal’s exposure to market, credit, liquidity and cash flow and fair value interest rate risk is considered to be low.

1.12 Recognition of financial assets and liabilities

As prescribed in the Finance Minister’s Orders, the Tribunal has applied the option available under AASB 1 of adopting AASB 132 and 139 from 1 July 2005 rather than 1 July 2004.

Financial assets are derecognised when the contractual rights to the cash flows from the financial assets expire or the asset is transferred to another entity. In the case of a transfer to another entity, it is necessary that the risks and rewards of ownership are also transferred.

Financial liabilities are derecognised when the obligation under the contract is discharged or cancelled or expires.

For the comparative year, financial assets were derecognised when the contractual right to receive cash no longer existed. Financial liabilities were derecognised when the contractual obligation to pay cash no longer existed.

1.13 Impairment of financial assets

As prescribed in the Finance Minister’s Orders, the Tribunal has applied the option available under AASB 1 of adopting AASB 132 and 139 from 1 July 2005 rather than 1 July 2004.

Financial assets are assessed for impairment at each balance date.

Financial assets held at amortised cost

If there is objective evidence that an impairment loss has been incurred for loans and receivables or held to maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in profit and loss.

Financial assets held at cost

If there is objective evidence that an impairment loss has been incurred on an unquoted equity instrument that is not carried at fair value because it cannot be reliably measured, or a derivative asset that is linked to and must be settled by delivery of such an unquoted equity instrument, the amount of the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate for similar assets.

Available for sale financial assets

If there is objective evidence that an impairment loss on an available for sale financial asset has been incurred, the amount of the difference between its cost, less principal repayments and amortisation, and its current fair value, less any impairment loss previously recognised in profit and loss, is transferred from equity to the profit and loss

Comparative year

The above policies were not applied for the comparative year. For receivables, amounts were recognised and carried at original invoice amount less a provision for doubtful debts based on an estimate made when collection of the full amount was no longer probable. Bad debts were written off as incurred.

Other financial assets carried at cost which were not held to generate net cash inflows, were assessed for indicators of impairment. Where such indicators were found to exist, the recoverable amount of the assets was estimated and compared to the assets carrying amount and, if less, reduced to the carrying amount. The reduction was shown as an impairment loss.

1.14 Trade creditors

Trade creditors and accruals are recognised at their nominal amounts, being the amounts at which the liabilities will be settled. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

1.15 Contingent liabilities and contingent assets

Contingent Liabilities and Assets are not recognised in the Balance Sheet but are discussed in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset, or represent an existing liability or asset in respect of which settlement is not probable or the amount cannot be reliably measured. Remote contingencies are part of this disclosure. Where settlement becomes probable, a liability or asset is recognised. A liability or asset is recognised when its existence is confirmed by a future event, settlement becomes probable (virtually certain for assets) or reliable measurement becomes possible.

1.16 Acquisition of assets

Assets are recorded at cost on acquisition. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

1.17 Property, plant and equipment (PP&E)

Asset recognition threshold

Purchases of property, plant and equipment are recognised initially at cost in the Balance Sheet, except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘makegood’ provisions in property leases taken up by the Tribunal where there exists an obligation to restore the property to its original condition. These costs are included in the value of the Tribunal’s leasehold improvements with a corresponding provision for the ‘makegood’ taken up.

Revaluations

Land, buildings, plant and equipment are carried at fair value, being revalued with sufficient frequency such that the carrying amount of each asset is not materially different, at reporting date, from its fair value. Valuations undertaken in each year are as at 30 June. The tribunal did not undertake ay asset revaluations during the financial year.

Fair values for each class of assets are determined as shown below.

Asset Class Fair value measured at:
Leasehold improvements Depreciated replacement cost
Plant & equipment Market selling price

Following initial recognition at cost, valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not materially vary with the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised through profit and loss. Revaluation decrements for a class of assets are recognised directly through profit and loss except to the extent that they reverse a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Depreciation

Depreciable property plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the Tribunal using, in all cases, the straight-line method of depreciation. Leasehold improvements are depreciated on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease.

Depreciation rates (useful lives) residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

2006 2005
Leasehold improvements Lease term Lease term
Plant and equipment 4 to 9 years 3 to 7 years

Heritage and cultural assets are assessed as having an infinite useful life and are not depreciated. The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosed in Note 6C.

Impairment

All assets were assessed for impairment at 30 June 2006. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the Tribunal were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

No indicators of impairment were found for assets at fair value.

1.18 Intangibles

The Tribunal’s intangibles comprise internally developed software for internal use. These assets are carried at cost.

Software is amortised on a straight-line basis over its anticipated useful life. The useful life of the Tribunal’s software is 5 years (2004–05: 5 years).

All software assets were assessed for indications of impairment as at 30 June 2006.

1.19 Taxation / competitive neutrality

The Tribunal is exempt from all forms of taxation except fringe benefits tax and the goods and services tax (GST).

Revenues, expenses and assets are recognised net of GST except:

where the amount of GST incurred is not recoverable from the Australian Taxation Office; and

for receivables and payables.

1.20 Reporting of administered activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the Schedule of Administered Items and related Notes.

Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for Tribunal items, including the application of Australian Accounting Standards.

Administered cash transfers to and from Official Public Account

Revenue collected by the Tribunal for use by the Government rather than the Tribunal is Administered Revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance and Administration. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the Tribunal on behalf of the Government and reported as such in the Cash Flow Statement in the Schedule of Administered Items and in the Administered Reconciliation Table in Note 16. Thus the Schedule of Administered Items largely reflects the Government’s transactions, through the Tribunal, with parties outside the Government.

Revenue

All administered revenues are revenues relating to the course of ordinary activities performed by the Tribunal on behalf of the Australian Government.

Fees are charged for lodgement of an application with the Tribunal.

Indemnities

The maximum amounts payable under the indemnities given is disclosed in the Schedule of Administered Items - Contingencies. At the time of completion of the financial statements, there was no reason to believe that the indemnities would be called upon, and no recognition of any liability was therefore required.

Note 2 The impact of the transition to AEIFRS from previous AGAAP

2006 2005
Reconciliation of total equity as presented under previous AGAAP to that under AEIFRS
Total equity under previous AGAAP 7,831 6,377
Adjustments to retained earnings:
Provision for Makegood (296) –
Total equity translated to AEIFRS 7,535 6,377
Reconciliation of profit or loss as presented under previous AGAAP to AEIFRS
Prior year profit as previously reported 5,416 3,962
Adjustments:
Provision for Makegood (296) –
Prior year profit translated to AEIFRS 5,120 3,962

The cash flow statement presented under previous AGAAP is equivalent to that prepared under AEIFRS

1Borrowing costs relating to qualifying assets have been capitalised under AGAAP, while this treatment is consistent with AEIFRS the FMOs have prescribed all borrowing costs to be expensed under AEIFRS, these amounts therefore have been derecognised.

2AEIFRS allow intangible assets to be revalued only where an active market exists. The Tribunal has previously revalued intangible assets under AGAAP that are highly specialised and for which no active market exist. The current carrying value of the revalued component of these assets therefore has been derecognised.

3AEIFRS requires the recording of assets reflecting future estimated restoration costs. Amounts for ‘makegood’ provisions in existing accommodation leases (operating) have been taken up accordingly.

4The operating result has been adjusted due to the de-recognition of revalued amounts of intangibles, for which under AGAAP amortisation of these values occurred in 2005–06. This has been partly offset by additional depreciation on ‘makegood’ assets.

The Tribunal has not restated comparatives for financial instruments.

The adjustments between AEIFRS and the previous GAAP have been taken up at 1 July 2005. The only adjustment necessary was Provision for Makegood of $296,000 reflecting a change in the method of determining impairment.

Note 3 Income

2006 2005
3A Revenues from Government
Appropriations for outputs 32,013 33,930
Total revenues from government 32,013 33,930
3B Goods and services
Services 47 48
Resources received free of charge 23 19
Total sales of goods and services 70 67
3C Gains
Net gains from disposal of assets 2 –
Total gains 2 –
All services were rendered to external entities

Note 4 Operating expenses

2006 2005
4A Employee expenses
Wages and salaries 16,066 16,658
Superannuation 2,370 2,322
Leave and other entitlements 204 174
Separation and redundancies 753 358
Other employee expenses 350 497
Total employee benefits expenses 19,743 20,009
Worker compensation premiums 246 171
Total employee expenses 19,989 20,180
4B Suppliers
Provision of goods - external entities 772 1,112
Services received free of charge (audit service) 23 19
Rendering of services - related entities 1,950 1,292
Rendering of services - external entities 4,271 5,670
Operating lease rentals - related entities* 1,798 1,756
Operating lease rentals - external entities* 1,059 1,272
Total supplier expenses 9,873 11,121
* These comprise minimum lease payments only.
4C Depreciation and amortisation
Depreciation
Other infrastructure, plant and equipment 470 397
Buildings 205 125
Total depreciation 675 522
Amortisation
Intangibles – computer software 88 95
Total depreciation and amortisation 763 617
4D Write down and impairment of assets
Write-down assets 6 –
Total write-down of assets 6 –

Note 5 Financial Assets

2006 2005
5A Cash and cash equivalents
Departmental (other than special accounts) 1,450 3,222
Total cash and cash equivalents 1,450 3,222
5B Receivables
Goods and services 18 12
Less allowance for doubtful debts (3) (3)
15 9
GST receivable from the Australian Taxation Office 122 142
Appropriations receivable:
– for existing outputs – –
– for additional outputs 8,735 5,464
– undrawn – 271
Total receivables (net) 8,872 5,886

All receivables are current assets.

All receivables are with entities external to the entity. Credit terms are net 30 days (2005: 30 days).

Appropriations receivable for additional outputs are accrued revenues for services provided in the current year under a purchasing agreement with the Government. Funding for these services will be provided by appropriations in 2006–07.

Receivables (gross) are aged as follows:

2006 2005
Current 8,872 5,883
Overdue by: – –
– Less than 30 days – 3
– 30 to 60 days – –
– 61 to 90 days – –
– More than 90 days – 3
– 6
Total receivables (gross) 8,872 5,889

Note 6 Non-financial assets

6A Land and buildings
Leasehold improvements
– fair value 4,537 4,487
– accumulated amortisation (4,278) (4,073)
– impairment losses – –
Total leasehold improvements 259 414
Total land and buildings (non-current) 259 414
6B Infrastructure, plant and equipment
Infrastructure, plant and equipment
– fair value 3,034 2,589
– accumulated depreciation (2,028) (1,645)
Total infrastructure, plant and equipment (non-current) 1,006 944

6C Analysis of property, plant and equipment

TABLE A – Reconciliation of the opening and closing balances of property, plant and equipment

Item Buildings/ Leasehold Improve-ments Other IP&E
$’000 $’000
As at 1 July 2005
Gross book value 4,487 2,589
Accumulated depreciation/amortisation (4,073) (1,645)
Opening Net Book Value 414 944
Additions:
– by purchase 50 456
– Depreciation/amortisation expense (205) (383)
Disposals:
– From disposal of operations – –
– Other disposals – (11)
As at 30 June 2006
Gross book value 4,537 3,034
Accumulated depreciation/amortisation (4,278) (2,028)
Closing Net book Value 259 1,006
2006 2005
6D Intangible Assets
Computer software:
Internally developed – in use 1,321 1,321
Accumulated amortisation (1,111) (1,024)
Accumulated impairment write-down – –
Total intangibles (non-current) 210 297

TABLE A – Reconciliation of opening and closing balances of intangibles

Item Computer Software
$’000
As at 1 July 2005
Gross book value 1,321
Accumulated depreciation (1,024)
Opening net book value 297
By Purchase –
Depreciation/amortisation (87)
As at 30 June 2006
Gross book value 1,321
Accumulated depreciation (1,111)
Closing net book value 210
2006 2005
6E Other non-financial assets
Prepayments 63 17

All other non-financial assets are current assets.

Note 7 Payables

2006 2005
7 Suppliers
Trade creditors 340 542
Total supplier payables 340 542
All payables are current liabilities.

Note 8 Provisions

2006 2005
8A Employee provisions
Salary sacrifice 55 18
Salaries and wages – –
Leave 3,303 3,503
Superannuation 185 207
Separations and redundancies – –
Other – –
Total employee provisions 3,543 3,728
Current 1,801 1,796
Non-current 1,742 1,932
Total employee provisions 3,543 3,728
8B Other Provisions
Provision for ‘Makegood’ 442 –
Carrying amount at beginning of period 429 –
Additional provisions made 13 –
Unwinding of discounted amount arising form the passage of time

–

 –
Amount owing at end of period 442 –
The Tribunal currently has agreements for the leasing of premises which have provisions requiring the Tribunal to restore the premises to their original condition at the conclusion of the lease. The Tribunal has made a provision to reflect the present value of this obligation.

Note 9 Cash flow reconciliation

2006 2005
9A Reconciliation of cash per income statement to cash flow statement
Cash at year end per cash flow statement 1,450 3,222
Balance Sheet items comprising above cash: ‘Financial assets – Cash’ 1,450 3,222
9B Reconciliation of operating result to net cash from operating activities:
Operating result 1,454 2,079
Depreciation /amortisation 763 618
Net write down of non-financial assets 6 –
Gain on disposal of assets (2) –
Resources received free of charge (23) –
(Increase) / decrease in net receivables (2986) (174)
(Increase) / decrease in prepayments (47) 892
Increase / (decrease) in employee provisions (185) 108
Increase / (decrease) in supplier payables (202) 121
Increase / (decrease) in other provisions 13 –
Appropriation adjustment for prior years (57) –
Net cash from / (used by) operating activities (1,266) 3,644

Note 10 Contingent liabilities and assets

10A Quantifiable and unquantifiable contingencies

The Tribunal had no quantifiable or unquantifiable contingencies at 30 June 2006.

10B Remote contingencies

The Tribunal has indemnified the State Governments of Western Australia and Queensland, the Northern Territory Government, the Great Barrier Reef Marine Park and Geoscience Australia against any action brought against it which results from spatial data provided to it by the governments and authorities. These indemnities are unlimited.

The Tribunal has indemnified the owners of the buildings in which the Brisbane and Sydney Registry Offices are located against any action brought against them which results from actions of Tribunal staff. These indemnities are unlimited.

Note 11 Executive remuneration

2006 2005
The number of senior executives who received or were due to receive total remuneration of $130,000 or more:
$130,000 to $144,999
$145,000 to $159,999 1
$160,000 to $174,999
$175,000 to $189,999 1 1
$190,000 to $204,999 1
$205,000 to $219,999
$220,000 to $234,999
$235,000 to $249,999 1
$250,000 to $264,999
The aggregate amount of total remuneration of executives shown above. $333,170 $723,788
The aggregate amount of separation and redundancy/ termination benefit payments during the year to executives shown above. $21,681 $12,294

Note 12 Remuneration of Auditors

2006 2005
Audit services are provided free of charge to the Tribunal.
The fair value of the services provided was:
Financial Statement Audit Services 23,000 14,900
Interim AEIFRS Statement Assessment – 4,000
23,000 18,900
No other services were provided by the Auditor-General.

Note 13 Average staffing levels

2006 2005
The average staffing levels for the Tribunal during the year were: 263 262

Note 14 Financial instruments

14A Interest rate risk

Financial Instrument Note Floating Interest Rate Fixed Interest Rate Maturing In Non- Interest Bearing Total Weighted Average
1 Year or Less 1 to 5 Years > 5 Years Effective Interest Rate
2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 % %
Financial assets
Cash at bank 5A – – – – – – – – 1,450 3,222 1,450 3,222 n/a n/a
Receivables for goods and services (gross) 5B – – – – – – – – 18 12 18 12 n/a n/a
GST receivable from ATO 5B – – – – – – – – 122 142 122 142 n/a n/a
Appropriations receivable 5B – – – – – – – – 8,735 5,735 8,735 5,735 n/a n/a
Total – – – – – – – – 10,325 9,111 10,325 9,111
Total assets 11,819 10,647
Financial Liabilities
Trade creditors 7 – – – – – – – – 340 542 340 542 n/a n/a
Total – – – – – – – – 340 542 340 542
Total liabilities 3,727 4,270

14B Fair values of financial assets and liabilities

2006 2005
Notes Total Carrying Amount Aggregate Fair Value Total Carrying Amount Aggregate Fair Value
$’000 $’000 $’000 $’000
Departmental
Financial assets
Cash at bank 5A 1,450 1,450 3,222 3,222
Receivables for goods and services (net) 5B 15 15 9 9
Appropriations receivable 5B 8,735 8,735 5,735 5,735
GST Receivable from ATO 5B 122 122 142 142
Total financial assets 10,322 10,322 9,108 9,108
Financial liabilities (recognised)
Trade creditors 7 340 340 542 542
Total financial liabilities (recognised) 340 340 542 542

14C Credit risk exposures

The Tribunal’s maximum exposures to credit risk at the reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the Balance Sheet.

The Tribunal has no significant exposures to any concentrations of credit risk.

All figures for credit risk referred to do not take into account the value of any collateral or other security.

Note 15 Income administered on behalf of Government

2006 2005
Revenue
Non-taxation
15A Goods and services
External entities (access fees) – –
15B Interest
Loans - state and territory governments – –
15C Dividends
Commonwealth entities – –
Total revenues administered on behalf of Government – –
Gains – –
15D Other gains
Resources received free of charge – –
Total gains administered on behalf of Government – –
Total income administered on behalf of Government – –

Note 16 Administered reconciliation table

2006 2005
Opening administered assets less administered liabilities as at 1 July
Opening balance fair value adjustment – administered investments – –
Plus: Administered revenues 13 8
Less: Administered expenses (2) (5)
Administered transfers to/from Australian Government:
Appropriation transfers from OPA: – Annual appropriations administered expenses– Administered assets and liabilities appropriations– Special appropriations (limited)– Special appropriations (unlimited) 2 5
Transfers to OPA (13) (8)
Closing administered assets less administered liabilities as at 30 June – –

Note 17 Appropriations

17A Acquittal of authority to draw cash from the consolidated revenue fund for ordinary annual services appropriations

Particulars Administered Expenses Departmental Outputs Total
2006 2005 2006 2005 2006 2005
$ $ $ $ $ $
Balance carried from previous period – – 12,610,228 9,588,173 12,610,228 9,588,173
Adjustment to prior years – – (35,981) (66,805) (35,981) (66,805)
Reductions of appropriations (prior years) – – 12,819,090 – 12,819,090 –
Unspent receipts from 1999–2000 where no s31 agreement was in place – – 244,843 (244,843) 244,843 (244,843)
Adjusted Balance carried for previous period – – 12,819,090 9,276,525 12,819,090 9,276,525
Appropriation Act (No.1) – – 32,013,000 33,583,000 32,013,000 33,583,000
Appropriation Act (No.3) – – – 271,000 – 271,000
Departmental Adjustments by the Finance Minister (Appropriation Acts) – – – – – –
Comcare receipts (Appropriation Act s13) – – – 111,789 – 111,789
Advance to the Finance Minister – – – – – –
Adjustment of appropriations on change of entity function (FMAA s32) – – – – – –
Refunds credited (FMAA s30) 1,818 4,583 – – 1,818 4,583
Appropriation reduced by section 9 determinations (current year)1 – – – – – –
Sub-total Annual Appropriation 1,818 4,583 44,832,090 43,242,314 44,833,908 43,246,897
Appropriations to take account of recoverable GST (FMAA s30A) – – 1,016,120 1,237,050 1,016,120 1,237,050
Annotations to ‘net appropriations’ (FMAA s31) – – 47,000 48,700 47,000 48,700
Total appropriations available for payments 1,818 4,583 45,895,210 44,528,064 45,897,028 44,532,647
Cash payments made during the year (GST inclusive) (1,818) (4,583) (31,586,000) (31,917,836) (31,587,818) (31,922,419)
Appropriations credited to Special Accounts (excluding GST) – – – – – –
Balance of Authority to Draw Cash from the CRF for Ordinary Annual Services Appropriations – – 14,309,210 12,610,228 14,309,210 12,610,228


Particulars Administered Expenses Departmental Outputs Total
2006 2005 2006 2005 2006 2005
$ $ $ $ $ $
Represented by:
Cash at bank and on hand – – 1,407,010 3,178,728 1,407,010 3,178,728
Less cash held not appropriated ($21k relates to 02/03, $36k relates to CAMs change over) – – (21,181) (21,181) (21,181) (21,181)
Receivable - departmental appropriations – – 8,979,843 5,735,000 8,979,843 5,735,000
Receivables – GST receivable from the ATO – – 122,538 141,524 122,538 141,524
Savings identified in the Budget process (carried forward) – – 3,821,000 3,821,000 3,821,000 3,821,000
Formal reductions of appropriations – – – – – –
Receivables - departmental appropriations (appropriation for additional outputs) – – – – – –
Undrawn, unlapsed administered appropriations – – – – – –
Receipts in periods with no s31 agreement (years 1999 – 2000), not currently available – – – (244,843) – (244,843)
Total – – 14,309,210 12,610,228 14,309,210 12,610,228

1 The Finance Minister may determine amounts of appropriations to be lapsed, having regard to expenses incurred. In prior years, the Tribunal has estimated the amount of current year appropriations to be lapsed based on expenses incurred.

17B Acquittal of authority to draw cash from the consolidated revenue fund for other than ordinary annual services appropriations

Particulars Administered Expenses Departmental Outputs Total
2006 2005 2006 2005 2006 2005
$ $ $ $ $ $
Balance carried from previous period – – 43,000 – – –
Adjustment to prior years – – 43,000 – 43,000
Reduction of appropriations (prior years) – – – – –
Adjusted balance carried for previous period – – 43,000 43,000 – 43,000
Appropriation Act (No.2) – – – – – –
Appropriation Act (No.4) – – – – – –
Departmental Adjustments and Borrowings – – – – – –
Advance to the Finance Minister – – – – – –
Adjustment of appropriations on change of entity function (FMAA s32) – – – – – –
Refunds credited (FMAA s30) – – – – – –
Appropriation reduced by a section 11 determination (current year) – – – – – –
Sub-total Annual Appropriation – – 43,000 43,000 – 43,000
Appropriations to take account of recoverable GST (FMAA s30A) – – – – – –
Total appropriations available for payments – – 43,000 43,000 – 43,000
Cash payments made during the year (GST inclusive) – – – – – –
Appropriations credited to Special Accounts (GST exclusive) – – – – – –
Balance of Authority to Draw Cash from the Consolidated Revenue Fund for other than Ordinary Annual Services Appropriations – – 43,000 43,000 – 43,000
Particulars Administered Expenses Departmental Outputs Total
2006 2005 2006 2005 2006 2005
$ $ $ $ $ $
Represented by:
Cash at bank and on hand – – 43,000 43,000 – 43,000
Appropriation receivable – – – – – –
GST receivable from the ATO – – – – – –
Departmental appropriation receivable – Drawing rights withheld by the Finance Minister (FMA s27(4)) – – – – – –
Formal reductions of appropriation revenue – – – – – –
Departmental appropriation receivable (appropriation for additional outputs)1 – – – – – –
Undrawn, unlapsed administered appropriations – – – – – –
Total – – 43,000 43,000 – 43,000

1Appropriation receivable for additional outputs are accrued revenues for services provided in the current year under a purchasing agreement with the Government. Funding for these services is provided in the next year. The timing difference between the receivable and appropriation leads to a discrepancy being recognised for prior year outputs

Note 18 Special accounts

2006 2005
Other Trust Monies Special Account
Legal Authority: Financial Management and Accountability Act 1997, S20
Purpose: To hold monies advanced to the Tribunal by COMCARE for the purpose of distributing compensation payments made in accordance with the Safety Rehabilitation and Compensation Act 1998. Where the Tribunal makes payment against accrued sick leave entitlements pending determination of an employee’s claim, permission is obtained in writing from each individual to allow the Tribunal to recover the monies from this account.
Balance carried forward from previous period 25 –
Receipts during the year 92 112
Available for payments 117 112
Payments made (102) (87)
Balance carried to the next period 15 25
Represented by:
Cash – transferred to the Official Public Account – –
Cash – held by the entity 15 25
Total balance carried to the next period 15 25

Note 19 Reporting of outcomes

The Tribunal has one outcome, the resolution of native title issues over land and waters. The level of achievement against this outcome is constituted by activities that are grouped into the three output groups of Stakeholder and Community Relations (Group 1), Agreement-making (Group 2) and Decisions (Group 3). The basis of cost allocation in the below table is consistent with the basis used for the 2005–2006 Budget.

Output Group 1

1.1 Capacity-building and strategic/sectoral initiatives

1.2 Assistance and information

Output Group 2

2.1 Indigenous land use agreements

2.2 Native title agreements and related agreements

2.3 Future act agreements

Output Group 3

3.1 Registration of native title claimant applications

3.2 Registrations of indigenous land use agreements

3.3 Future act determinations

3.4 Finalise objections to the expedited procedure

19A Net cost of outcome delivery

Outcome
2006 2005
$’000 $’000
Administered – –
Departmental 30,505 31,918
Total expenses 30,505 31,918
Costs recovered from provision of goods and services to the non-government sector
Administered – –
Departmental (70) (67)
Total costs recovered (70) (67)
Other external revenues
Administered – –
Departmental – –
Total other external revenues – –
Net cost/(contribution) of outcome 30,435 31,851

19B Major classes of departmental revenues and expenses by output groups and outputs

Output 1.1 Output 1.2 Total Output 1
2006 2005 2006 2005 2006 2005
$’000 $’000 $’000 $’000 $’000 $’000
Departmental expenses
Employees 460 1,920 1,779 1,920 2,239 3,840
Suppliers 226 1,058 875 1,058 1,101 2,116
Depreciation and amortisation 15 58 60 58 75 117
Total departmental expenses 701 3,036 2,714 3,036 3,415 6,073
Funded by:
Revenues from government 700 3,227 2,711 3,227 3,411 6,455
Sale of goods and services 1 6 3 6 4 12
Other non-taxation revenues – – – – – –
Total departmental revenues 701 3,233 2,714 3,233 3,415 6,467
Output 2.1 Output 2.2 Output 2.3 Total Output 2
2006 2005 2006 2005 2006 2005 2006 2005
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Departmental expenses
Employees 1,699 757 5,597 9,283 2,798 897 10,094 10,937
Suppliers 836 418 2,951 5,117 1,377 493 5,164 6,028
Depreciation and amortisation 57 23 202 283 94 28 353 334
Total departmental expenses 2,592 1,198 8,750 14,683 4,269 1,418 1,5611 17,299
Funded by:
Revenues from government 2,589 1,274 8,737 15,609 4,264 1,507 15,590 18,390
Sale of goods and services 3 3 13 31 5 3 21 37
Other non-taxation revenues – – – – – – – –
Total departmental revenues 2,592 – 8,750 – 4,269 – 15,611 18,427
Output 3.1 Output 3.2 Output 3.3 Output 3.4 Total Output 3
2006 2005 2006 2005 2006 2005 2006 2005 2006 2005
Departmental expenses
Employees 1,599 1,971 1,998 1,448 1,001 546 2,898 1,437 7,496 5,402
Suppliers 787 1,086 983 797 491 301 1,426 792 3,687 2,976
Depreciation and amortisation 54 62 67 45 34 17 96 44 251 168
Total departmental expenses 2,440 3,119 3,048 2,290 1,526 864 4,420 2,273 11,434 8,546
Funded by:
Revenues from government 2,437 3,316 3,046 2,434 1,523 918 4,416 2,417 11,422 9,085
Sale of goods and services 3 8 2 5 3 1 4 4 12 18
Other non-taxation revenues – – – – – – – – – –
Total departmental revenues 2,440 3,324 3,048 2,439 1,526 919 4,420 2,421 11,434 9,103

19C Major classes of administered revenues and expenses by outcomes

Outcome Total
2006 2005 2006 2005
Administered Revenues
Sale of goods and services - Fees 13 8 13 8
Total Administered Revenues 13 8 13 8
Administered Expenses
Refund of Fees 2 5 2 5
Total Administered Expenses 2 5 2 55