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Anindilyakwa Land Council Reports 2004-05


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4 a . AUSTRALIA,,-L·

A n n u a l R e p o r t 2004 - 2 0 0 5

ANT Ν Π Π YAKWA T A N D Γ Ο Ι Ι Ν Γ Π

A nnual R ep o rt 2 0 0 4 - 2 0 0 5

“This year’s A nnual Report is dedicated in the memory of the Late Rex Croker

Anindilyakxva Land Council

30 Bougainvillea Drive, Alyangula, NT 0885

Design: First Class in Graphic Design

Cover Photo: Dalumba Bat' - Petrina Busbridge

2 | aninidilyakwa La n d c o u n c il

ANINDILYAKWA LAND COUNCIL PO Box 172 Alvangula NT 0885 Tel: (08) 8987 6710 ABN: 45175406445

30 Bougainvillea Drive Alvangula NT 0885 Fax: (08) 8987 6745 Email: alc@anindilyakwa.org

Senator Amanda Vanstone Minister for Immigration and Multicultural and Indigenous Affairs Parliament House Canberra ACT 2600

Dear Minister,

In accordance with the Aboriginal Land Rights (Northern Territory) Act 1976 and the Commonwealth Authorities and Companies Act 1997, I am pleased to submit the 2004-2005 Annual Report on the operations of the Anindilyakwa Land Council.

TONY WURRAMARRBA Chairman

ANNUAL REPORT 2004 - 2005

“The nam e A n in d ily a k w a refers to the language spoken by the people of Groote A rchipelago”.

T he r e g io n Groote Eylandt and Bickerton Island is situated on the western side of Gulf of Carpentaria approximately 600km east, south east of Darwin.

T he People of th e Groote eylandt Archipelago The ALC represents residents of three communities being Angurugu, Umbakumba and Milyakburra. There are 14 clan groups divided into two moieties and they are bound to each other by a strict marriage and kinship system. The Aboriginal people within this region endeavour to live a traditional lifestyle with all the comforts of the 21st Century.

O u r emblem The three totems on our emblem morning star, sword fish and hammer head shark represent the two moieties and clans who live here.

In the beginning the Island was dark. Barnimbirra (Morning Star) brought daylight to the Island and ever since then there has been day and night.

Yukwurrurrindanga (Swordfish) and Mungwarra (Hammer Head Shark) came to Groote Eylandt from the mainland. They travelled though Bickerton Island, landed at Angurugu River and made their way up river towards Central Lake.

H istory of Groote Arch ipelag o Prior to the 1920’s Anindilyakwa people traded with the Macassan people of Indonesia;

In 1921 the Church Missionary Society (CMS) established a mission at Emerald River which was later relocated to and renamed Angurugu Community.

In 1930’s Umbakumba Community was established by Fred Gray and later run by CMS. Qantas operated a flying base near Umbakumba for a brief period in 1938 which was also used by the RAAF during World War II. Today Umbakumba functions as a Community Government Council.

The world’s richest Manganese deposits were discovered on Groote Evlandt in the 1960’s by BHP GEMCO who have been mining here ever since.

During the I980’s Milyakburra developed from an outstation to a community with housing, water and other facilities.

4 AN1NIDILYAKWA LAND COUNCIL

C. O K f T F N T S

ANIND1LYAKWA LAND C O U N C IL ................................................................ 1

CHAIRMAN’S REPORT........................................................................... 6

M a n a g e r ’s Re p o r t .............................................................................................. 7

ABOUT THE ALC....................................................................................................... 8

AN IN D1 LYAKWA LAND COUNCIL ORGANISATIONAL CHART.................10

ALC M embers a n d m e e t in g s 2 0 0 4 /2 0 0 5 .................................................. 11

ALC Lia is o n U n i t ................................................................................................12

land m a n a g e m e n t ........................................................................................... 15

M IN IN G .................................................................................................................................20

ALC O u t c o m e s / O u t pu t s f r a m e w o r k .................................................... 25

Ec o n o m i c /E n t e r p r is e d e v e l o p m e n t ..................................................... 35

M a n a g e m e n t a n d a c c o u n t a b il it y ......................................................... 36

O t h e r Fu n c t i o n s ............................................................................................. 36

royalty C o r p o r a t i o n s ................................................................................. 36

G l o ss a r y ..................................................................... 37

FINANCIAL STATEMENTS............................................................................... 38

ANNUAL REPORT 2004 - 2005

C h a i r m a n ’ s r e p or t

I am pleased to be serving my second year as Chairman of the Anindilyakwa Land Council and present the 2004­ 2005 Annual Report.

This year has been a very long and hard year as the Late Rex Croker our previous Manager passed on and will be missed by all. I would like to thank Ross Hebblewhite for filling in the Managers position at such short notice and for his hard work and dedication in the past 7 months.

We have a newly established Liaison Unit w'hich has three staff members, two of which are traditional owners for Groote Eylandt and a Anthropologist. The unit is also part of the renegotiations in 2006 and will be working closely with the Central Land Council.

We have also facilitated an established business Anindilyakwa Art. This encourages the local people to bring back the old ways in producing traditional artefacts.

Staffing within the Land Management Section has increased to six Field Officers and with the newly appointed coordinator they have obtained grants for the following projects:

• Ghost Nets

• Weeds Management

• Turtle & Dugong Information Video

• Picnic Beach Dune Rehabilitation

In an addition they core funded projects including community liaison, patrols, feral animal control, flora and fauna surveys, marine debris cleanups and monitoring GEMCO environmental impacts.

GEMCO BHP Billiton has increased their employment numbers which has had an impact on our community. We are working with all stakeholders of the Groote Archipelago to reduce crime, better health and increasing education numbers within wider communities.

This year a liquor permit system was introduced through the Liquor Commission to reduce alcohol related offences.

TONY WURRAMARRBA Chairman

6 | aninidilyakwa La n d Co u n c il

Ma n a g er’s rfport The year was clouded by the untimely death of the Manager, Rex Croker in September.

A review of the ALC staffing was completed in November 2004 which resulted in a number of structural changes and the recruitment of new staff, including an Anthropologist. The major change was the establishment of a new unit, Liaison and Consultation Unit. The changes have enabled the ALC to respond in a more

timely manner to land use proposals throughout the Groote Archipelago and to establish a more effective consultative mechanism.

With the assistance of the Central Land Council negotiations were commenced with GEMCO for the renewal of a number o f mining leases on Groote Eylandt. This process will continue throughout 2005-2006.

Following discussions with and assistance from the Department of Environment and Heritage the process for establishing an Indigenous Protected Area over the Groote Archipelago was initiated. The Natural Resource Management Plan for the Groote Archipelago is expected to be completed in August 2005. With the work toward the establishment of an Indigenous Protected Area the Land Management Unit was strengthened.

Negotiations and consultations with the Northern Territory Government were held on a number of policy and operational issues, including natural resource management, land tenure on local government areas and the establishment of a Regional Authority over the Groote Archipelago. These issues are ongoing.

The Anindilyakwa Land Council has been very active facilitating enterprise development throughout during the year with a number of proposals being developed under the auspices o f the Groote Eylandt and Bickerton Island Enterprises Aboriginal Corporation. These include negotiations concerning the

establishment of a Resort on Groote Eylandt, the acquisition of a shareholding in an IBA initiative, an Art and Craft enterprise and a number of contracting propositions.

The year ahead will be eventful with a number of initiatives commenced in this year to be finalized and negotiations on the major land use activity in the Groote Archipelago, the GEMCO Mining Leases, to be resolved.

ROSS HEBBLEWHITE Manager

ANNUAL REPORT 2004 - 2005

a r o u t t h f AI C

M issio n Statem ent The Anindilyakwa Land Council (ALC) was established in 1991 to assist Aboriginal people in the Groote Eylandt Archipelago by:

• Enhancing their inherent rights and interests, including their rights to land, territories and resources, deriving from their culture, traditions and customary laws

• Empowering their control over developments affecting their land, territories resources and culture

• Providing greater unity by the provision o f equitable representation and an unbiased focus for political, social, economic and cultural action and research” .

Vis io n Statement “Our vision is to be widely recognised as the premier peak Aboriginal body for the Groote Eylandt archipelago that consults with, and effectively represents, the interests of Aboriginal people in the region” .

Aim s a n d O bjectives The major goals of the ALC are:-1. To fulfil the functions of a Land Council under section 23 of the Aboriginal Land Rights Act 1976 and develop it as the peak body for the region

2. To develop an informed, united and culturally proud Aboriginal community in the Groote Archipelago

3. To develop a viable economic base for Aboriginal people of the Archipelago

ENVIRONMENT The activities of the ALC are subject to the Council’s Operating Principles, Policies and Guidelines that are to be monitored, reviewed and updated as required by the ALC Executive.

8 | Aninidilyakwa La n d Co u n c il

The ALC currently comprises members from each Aboriginal clan within the Land Council’s area:

Clan_____________________ ___ No. of members

Amagula 2

Mamarika 2

Bara/ M urrungun/ Jaragba 3

Wurramara 2

Wurragwagwa / Yantarrnga 2

Bara Bara / Wanabi 2

Lalara 2

Wurrawilya/ Maminyamanja 2

Wurramarrba 2

Sub-total 19

and the following members from each Community Government Council in the area of the Land Council:

Co u n c il Angurugu Community Government Council 2

Umbakumba Community Council 2

Milyakburra Community Council 2

Sub-total 6

TOTAL 25

The key management positions are the Chairman and the Manager.

The Chairman is accountable to the Executive Council for the policy direction and its implementation, while the Manager is accountable to the Executive Council, through the Chairman, for the total operating efficiency and effectiveness of the Anindilyakwa Land Council.

ANNUAL REPORT 2004 - 2005 | 9

anindilyakwa land c o u n c i l Q rgani sati onai C hart

a n t h ropologist

liaison O fficers ( 2)

aninidilyakwa Land Council

Financial Services

BOOKKEEPER/ h u m a n resource

Lia is o n Unit

Project Superviso r

Field Officers ( 6 )

L a n d

m a n a g e m e n t

S ecr etary / R e s e a r c h

r e c e p t i o n i s t / p r o j e c t O f f i c e r

E x e c u t i v e S u p p o r t

C h a i r m a n D e p u t y C h a i r

m a n a g e r

E x e c u t i v e

Includes Chair, Deputy Chair and 23 regional members

ANINDILYAKWA LAND COUNCIL MEMBERS

ALC M embers and meetings

This year we have twenty five members of the ALC which are still current from last year. In addition we have the five sub committees being Audit, Mining, Tradition/ Culture, Land Management and Economic/Enterprise.

The current council members for the ALC are as follows:

Tony Wurramarrba Walter Amagula Eric Amagula Robert Amagula

Joyce Bara Bara Thompson Bara Paul Bara Sylvia Durilla

Richard Herbert Lionel Jaragba Roger Lalara Simeon Lalara

Linda Mamarika Mildred Mamarika Phillip Mamarika Barnabus Maminyamanja Alec Wurramara

Morgan Wurramara (Proxy) Peter Wurramara Vail Wurramara Wilfred Wurramara

Laban Wurramarrba Wayne Wurrawilya Jimmy Yantarrnga Wanella Yantarrnga

Chairman

Deputy Chairman Clan Member Community Member Clan Member

Clan Member Clan Member Clan Member

Community Member Clan Member Clan Member Clan Member Community Member

Clan Member Clan Member Clan Member

Community Member Clan Member Community Member Clan Member Community Member

Clan Member Clan Member Clan Member Clan Member

In total we have had four Land Council Meetings; two Land Management Sub Committee Meetings; four Economic/Enterprise Sub committee Meetings; one Mining Sub Committee Meeting; two Audit Sub Committee Meeting and nil Tradition/Culture Sub Committee Meetings.

I H ANNUAL REPORT 2004 - 2005

AT C i 1AI.SON U N I T

The Liaison Unit is a new branch of the Land Council formed due to the increased need for consultation in a number of areas, especially mining agreements. The Liaison Unit works closely with staff in all areas of the Land Council.

Under Section 23 of the Aboriginal Land Rights Act 1976 (NT), the functions of a Land Council are: 1(c) “to consult with traditional Aboriginal owners of, and other Aboriginals interested in, Aboriginal land in the area of the Land Council with respect to any proposal relating to the use of that land.”

The Unit consists of three staff whom are assisted from time to time by other sections of the Land Council:

- Walter Amagula, Senior Project Officer - Thomas Amagula, Project Officer - Jackie Rawles, Manager/Anthropologist

Walter is a senior custodian with much traditional knowledge and Thomas has sound organizational skills and is very keen. Walter and Thomas’s language skills are invaluable to the consultation process. Although recruited as the Manager, Jackie is also utilised in her capacity as an Anthropologist. Jackie has lived and worked with Aboriginal people in the desert communities of Central Australia and the Kimberley as well as the coastal communities of the Top End of the Northern Territory.

Current Co nsulta tio n projects:

GEMO Mining Agreement Negotiations One of the most recent and important issues faced by Groote Eylandt Traditional owners today is the mining agreement currently being negotiated with Groote Eylandt Mining Company, GEMCO. The Liaison Unit will be deeply involved in the consultation process ensuring everyone is informed and has plenty of time to consider the agreement and make comment. We will be taking instructions and following up any concerns people may have to the best of our abilities. This is a priority and will be on going for at least one year.

Indigenous Protected Areas Plan This is an initiative by Traditional Owners and both the NT and Federal Governments to protect, conserve and preserve areas of cultural and natural value. These areas are of significance to Aboriginal and non-indigenous people alike.

Second Beach Resort development This world class eco-tour resort will provide several packages ranging from fishing,

12 | AN1N1DILYAKWA LAND COUNCIL

bush tucker trips, safari camps and art workshops. The area known as second beach is an ideal location for tourists to reside as it is secluded and yet close enough to town and infrastructure. The area was surveyed with the help of relevant Traditional Owners and cleared of any sites of significance.

GEMCO Staff Housing Project Due to the lack of housing available on Eylandt ALC will be building homes to be leased by GEMCO. The houses are on the Special purpose lease.

Traditional owners were informed of the development and are in favour of the venture.

Training and Works depot Precinct This is an exciting concept whereby Aboriginal people are trained and then placed in employment. The precinct will also accommodate the Land Management Unit, a civil works depot, training centre with offices, art workshop, a general store with

nutritional take-away meals available, a dormitory for trainees and a house for the caretaker.

Cultural Heritage Data Base Project Under the guidance of Julie Waddy of the Angurugu Linguistic Centre, an ethno- botanical study is being put on data base with the expertise of Sibella Herbert. The study was compiled over several years by many persons most of whom are now

deceased. The recorded cultural knowledge and language is invaluable and can be used for education purposes. It is a cultural resource that can be shared with family members. ALC have committed another ten thousand dollars ($10,000.00) to the project to be finalised before Julie retires in December 05. ALC is the registered copyright body for the material and most of the collection has been catalogued at

IATSIS, Canberra, ACT.

Permit Overhaul It is necessary to upgrade our recreational map with clearly marked recreational spots, access roads, designated camping sites and permanently closed areas. We have been liaising with the land management unit and the traditional owners of each affected area to ensure it is correctly marked and its status as a recreational

area is correct.

Memorandums o f Understanding Many problems can arise from tourists, academics or the general public gaining access to communities and using documented cultural and natural heritage material, copyright infringement, ethical dilemmas, unauthorized use of photos and reports etc. We can solve these problems by having a memorandum oi

understanding whereby, for example, the organisation or individual can apply to the Land Council for access to the material and the communities for a particular purpose.

I 1-3 a n n u a l Re po r t 2004 - 2005

Protocols and Procedures used for Work Area Programme Clearances regarding development and mining activities This manual will provide simple steps to follow when informing the Land Council and Traditional Owners of the development or activities they propose to conduct. This guideline is used to explain what it is they propose to do: where, when, how

many people involved, over what time, will they camp there or commute everyday, how will they get rid of rubbish, do they need to put in roads, clear trees etc.

With this information the ALC can better inform the Traditional Owners and the consultation process is more efficient.

14 | AN1N1DILYAKWA LAND COUNCIL

ϊ and M a n a g e m e n t

The land management group had a dynamic 12 months. The number of projects we’re committed too has expanded, and in response to this, so have staffing levels. We currently have 12 projects and 6 staff.

Our projects can be divided into internal, external and co-operative funded projects. Internally funded projects include: feral animal control, community education, development of an Anindilyakwa NRM (Natural Resource

Management) database and our routine patrols. Our two primary suppliers of external funds have been WWF (World Wide Fund for Nature) and NHT (Natural Heritage Trust). This year WWF have sponsored our annual marine debris survey, some turtle research and an educational video on dugong and turtle. NHT have contributed to: weed control, dune rehabilitation at Picnic Beach, and the removal of ghost nets. In addition, the NT DIPE (Department of Infrastructure, Planning

and Environment) has provided in-kind assistance for a pilot fauna and flora survey in the southern parts of Groote in June of 2005.

In addition to these projects, field officers have been involved with training, community consultations, upgrading the ALC boat and planning for a new ranger base to be completed late 2005.

Feral An im a l Co n t r o l Cane toads and feral cats have been identified as major threats to native island fauna. A trapping program has begun in non-residential areas for cats, and so far results have been encouraging. Instead of cats, a number oi northern quolls

(Dasyurus hallucattus) have been captured. This .is particularly pleasing as the quolls distribution and abundance has declined significantly on mainland Australia in recent decades.

Cane toads have not been reported in the Groote Eylandt archipelago. To help ensure this remains the case, signs have been placed at boat ramps and the airport warning of the danger toads present to the region, and the need to be vigilant in

checking luggage etc.

Cultural Ed u c a t io n An indigenous cultural knowledge program was recently completed at Alyangula Area School. The syllabus was six weeks long. Five lessons were in class, and the final tutorial was an outdoor practical. The curriculum taught children about

traditional Anindilyakwa lifestyle, and featured the Anindilyakwa language, bush tucker, traditional songs, stories and art work, tool making, hunting and cooking. It also taught children the importance of looking after country.

! 15 ANNUAL REPORT 2004 - 2005

To complement the school program, planning has begun for Anindilyakwa interpretive tours for families. The aim of this exercise is to provide opportunities for persons not normally exposed to Anindilyakwa people, to learn more about the traditional lifestyle.

Anind ilya k w a n r m database The Land Management group has established a natural resource management database. Data are entered from a number of projects including: fauna and flora surveys, feral animal control, weed control, marine debris, ghost netting and recreational fishing monitoring. The database consolidates previously fragmented information and will provide a valuable natural resource management tool over time.

CONSOLIDATION OF HISTORICAL ECOLOGICAL AND Cultural Data The ALC is sponsoring work to construct a database that consolidates results from previous projects on the cultural and ecological features of Groote Eylandt. Data primarily being collected from Julie VVaddy’s thesis “Classification of plants and Animals from a Groote Eylandt point of view” and Dulcie Leveitt’s book “Plants a?id People: Aboriginal uses of plants on Groote E y l a n d tThe outputs from this project will form a baseline from which changes in animal and plant occurrence and distributions can be measured over time. It’ll also provide a digital record of Anindilyakwa plant and animal names, songs and stories.

DUGONG AND TURTLE VIDEO The Anindilyakwa Land Council through its Land Management Program was awarded an Environment NT grant to develop educational and community awareness material for threatened species conservation. In conjunction with an external production crew, ALC rangers have developed a short film addressing the issues surrounding turtle and dugong hunting in contemporary aboriginal society. The film aims to present a message of conservation side-by-side with the importance of traditional hunting to both the physical and cultural health of Anindilyakwa people. Footage for the production has been completed and the editing and distribution of the film should be complete late this year.

Weed Co n t r o l The Land Management group and NHT Envirofund continue to tackle the problem of noxious weeds in the Groote Archipelago. Consultants from Darwin visited and an action plan was developed. Rangers were trained in the handling of chemicals and the identification of noxious weeds. An arrangement was then negotiated with GEMCO regarding who would be responsible for particular areas.

16 | Aninidilyakwa La n d Co u n c il

The ALC has purchased weeding equipment and a purpose built chemical storage shed was established. On ground weeding is ongoing.

Ma r in e D ebris Survey Anindilyakwa have had a long commitment to the removal of marine debris. In August 2004, in conjunction with WWF, we conducted our annual beach cleanup at one site on Six Mile Beach and three sites near South Point.

Whilst there has been a decline in some items such as discarded fishing nets from Australian fishing boats, the overall trend has been an increase in marine debris, especially at the 6 mile beach site. The main item contributing to this increase has been plastics. An indicator of this was on Six Mile Beach were 47 white fish sorting

trays were found in a short area. This work is ongoing and the next cleanup is planned for the last week in August 2005.

Gh o st N ets The Anindilyakwa people are committed to removing, researching, reducing and eventually eliminating ghost nets. In June two delegates from Anindilyakwa Land Council attended the third planning meeting for the CGNP (Carpentaria Ghost Nets Program). On behalf of the Anindilyakwa people a proposal was presented to reflect the community feelings, and the ALC was awarded an initial sum of $30,000 to initiate a ghost net cleanup. Already, much of the materials needed to do the cleanup have been ordered, and an initial survey has been done to identify hot spots.

Photo: Ghost N et Cleanup 6 Mile

I 17 Annual report 2004 - 2005

PICNIC BEACH DUNE REHABILITATION The ALC has been successful in obtaining over $50,000 in funding from; Natural Heritage Trusts Envirofund, Angurugu and Umbakumba Councils, GEMCO and Coastcare, to consolidate access tracks at Picnic Beach into a single road and rehabilitate old tracks with plantings of native vegetation. On ground work is due to begin 8 August 2005.

INDIGENOUS PROTECTED AREA PROJECT (IPA) The ALC employed consultant Dan Gillespie in April 2005 to work on the IPA. Since this time there have been two consultations between Dan and T /O ’s, and another is in progress. Other major stakeholders, NT and Commonwealth Governments and GEMCO have also been consulted. An initial draft IPA was written in May and comments on this draft, have been incorporated into a second document. This document is currently being reviewed. The final document will provide a partnership for land and sea management, taking into consideration the concerns of all stakeholders.

Mo n it o r in g of Recreational Fis h in g Recreational fishing is a popular activity of many residents, and it’s likely to increase over time, especially if tourism is permitted on island. Data collected from recreational anglers can be used to monitor the health of a recreational fishery. In collaboration with Alyangula Fishing Club, the Land Management group is initiating an angling catch database on the popular angling species such as coral trout and Spanish mackerel. Data collected will include the location and duration fished, species caught and fish length. These data will be stored in the Anindilyakwa database enabling the monitoring of fish populations over time.

FAUNA AND FLORA SURVEY In May, 2005 staff from the Biodiversity Conservation Division in DPIE visited Groote Eylandt and undertook flora transects and mapping. In June, DPIE revisited too perform a fauna survey. On these visits they discovered plants and animals not previously recorded from the island, as well as many of those previously known species.

Importantly, DPIE found populations of endangered mammals; northern hopping mouse (Notomys aquilo), brush tailed rabbit rat (Coniluruspenicillatus) and northern quoll (Dasyurus hallucattus). Anindilyakwa rangers assisted in each of these surveys and there are plans to continue this work in future years.

18 | ANINIDILYAKWA LAND COUNCIL

Oth er The rangers are involved in duties extra and complimentary to the projects listed above. They continue to be a communication link between TO’s and the ALC, and from time-to-time represent their people at workshops and meetings on a range of environmental and cultural issues. Routine patrols are done on a regular basis and continue to highlight problems and issues. Rangers provide feedback into the planning and running of the ALC, and this year they’ve been active in developing a new worksite where there will be better storage, workshop and office facilities.

Photo: Northern Quoll

I 19 Annual R e p o r t 2004 - 2005

M i mi ng

reh abilitatio n after m i n i n g Each year GEMCO conducts a pre and post-wet season tour of mine site rehabilitation areas with the ALC and Government representatives. These tours provide information on GEMCO’s rehabilitation activities and a report is produced from each tour.

During the 2004/05 rehabilitation season some 45ha of Revegetation was conducted. Much of this was remediation where we went into a failed rehabilitation (not enough trees too many weeds, high fire risk,) areas in G quarry and D quarry, cleared it, capped it with a layer of overburden then coated with topsoil. This was a new method used and was designed to prevent weed infestation coming from the original base soil profile. This has been very successful with little weed present, low

fire risk and excellent germination rates despite dry periods during the wet season. During this coming season GEMCO is aiming at completing upwards of lOha of Revegetation and additional older rehabilitation areas will be targeted for seedling planting.

Along with improved rehabilitation techniques GEMCO has recognised the need for a Weed Management Strategy and has implemented a plan that includes training for all stakeholders. To ensure the success of this strategy GEMCO is working with the ALC through the provision of specialised weed training to

maximise the knowledge of weeds and their control. This program is in it’s infancy but it has already shown this joint initiative will lead to more effective weed management across Groote Eylandt.

Due to a shortage of area available for rehabilitation 3 topsoil stockpiles will be formed and revegetated in A south, B quarry and an area west of Angurugu. All discussed with and approved by ALC.

Aerial Spraying Early in 2005 the Rehab and Mine Services staff utilized the services o f a chopper to control weeds. It took just under 5 hours to spray 115 hectares at 5 different sites. Rehabilitation areas in A-South, G, B and C quarries as well as a small area at the Wet Tip were targeted due to their immaturity (the majority being less than 2 years old) and the high risk of them being exposed to fire.

The chemical sprayed was a selective herbicide called Verdict. This chemical only kills grass species and leaves the trees and other desirable plants in our rehab areas unharmed. The idea of applying the chemical is to reduce the grass growth so that fires will not be able to burn through our rehabilitation areas. It will also help our trees by reducing competition for water and nutrients.

20 I AN1NIDILYAKWA LAND COUNCIL

Although grass in several of the sites was relatively mature, it is hoped we will have similar results to the trials we conducted in March last year where the dead grass rotted to a point where fires could not pass.

Thanks must go to the Anindilyakwa Land Council and Angurugu Community Government Council for their support and input into the project.

En v ir o n m e n t a l Mo n it o r in g pro g ram s The GEMCO environmental monitoring program includes:

• Ambient Dust

• Mosquito

• Surface water

• Groundwater

• Sewage Monitoring

While some of these activities are regulatory requirements covered by waste discharge licences, the remainder are undertaken on a voluntary basis to provide valuable information to GEMCO and its stakeholders, with the overriding objective being to minimise the environmental impact GEMCO has on the environment.

En v ir o n m e n t a l m a n a g e m e n t plans GEMCO maintains environmental management plans, which summarise the key environmental issues on site and aims to conserve our natural resources, minimise emissions and maximise the success of our rehabilitation activities.

These reports include:

• Energy conservation Plan

• Greenhouse Gas Management Plant

• Waste Minimisation Plan

• Water Management Plan

• Land Management Plan

MILNER BAY Activities undertaken during the reporting period include:

• Routine groundwater monitoring

• Subsurface fuel recovery

I 21 annual Report 2004 - 2005

• Maintenance of the Groundwater, Separate Phase Hydrocarbon and Dissolved Phase Hydrocarbon models

A total of 1,479,705 L of fuel has been recovered from the water table since the commencement of fuel recovery operations. GEMCO are investigating alternatives to facilitate the remediation of Milner Bay using bioremediation technology.

SEA CLOSURE WINCHELSEA ISLAND Over number of years, discussions have taken place in regard to closure of North Groote and Winchelsea Bartalumba Sea Closures.

During the year Dr. Kingsley Palmer of Appleby Consultancy was engaged to update his previous work in these areas and indicate what further work would be required if the matter went to the Aboriginal Land Commissioner for a decision on sea closure.

After discussions with traditional owners he recommended consideration be given to making this area an Indigenous Protected Area. ALC members discussed this issue and a full application has been prepared to make the entire ALC region an I PA area.

M in in g Dr Kingsley Palmer of Appleby Consultancy was engaged to undertake anthropological research on Groote Eylandt and the work was to include:

Eastern A reas Exploration Leases The Anindilyakwa Land Council approved these areas as ELAs to GEMCO in May 2002. Unfortunately, some confusion surrounds the traditional ownership of these areas. Dr. Palmer was requested to advice on clan groups that should be included in future negotiations on these areas; .

Curr en t M in in g leases Advise on current clan groups on whose areas mining is currently taking place, to enable fairer Royalty and Rent distribution.

These groups have been identified and will be used in any future discussions and distribution.

Site Closure p l a n n in g GEMCO holds an annual site closure meeting with the ALC. The primary objective’s of these meetings is to update the Land Council on the current market trends, life of mine forecasts and mine closure planning. The estimated closure liability for current disturbance on its Mining Leases is $48 m. While this

ANINiDILYAKW A LAND COUNCIL

figure is based on best available information, it is likely to contain some inherent inaccuracies, which will be minimised during successive reviews.

GEMCO Co m m u n it y D evelopment One of the most significant community development strategies, which have been implemented by GEMCO, is the Aboriginal Employment Program (AEP). The AEP is appropriate, flexible and practical, and breaks through the barriers of

having Aboriginal people meaningfully employed in the mining industry. Further, it enables Aboriginal people to gain the knowledge and confidence to competently perform the role of leaders in their own community.

The AEP:

• Improves aboriginal employment opportunities for the indigenous Groote Eylandters;

• Gives aboriginal employees an opportunity to develop career prospects through an Employee Development Plan (EDP);

• Increases the number and status of aboriginal people in the workplace by developing meaningful long term employment;

• Develops knowledge and understanding of cultural differences from both perspectives; and

• Develops a resource of skilled people who can use these skills to fulfill their goals within the GEMCO workforce or the community to assist other aboriginal people's development and training.

GEMCO has received national recognition for their Aboriginal Employment Strategy and is in the process of expanding Aboriginal employment opportunities. Currently 20% of GEMCO’s full time workforce is Aboriginal employees.

The development of the AEP was through consultation with aboriginal people, community members, employees, unions and potential training providers. From this process, an EDM was designed. The EDM is a self-paced development program with a variety of options to enable employees to make decisions about their future as they progress, and realise what direction they see as their future.

Further to this strategy GEMCO is currently working in partnership with the ALC to develop a training partnership through the Groote Eylandt Bickerton Island Enterprises (GEBIE). It is GEMCO’s aim to assist this program by providing

contracts to GEBIE in specific tasks on the mining leases and associated business opportunities. GEMCO will also assist this enterprise by assisting with the training and safety issues associated with working on mining leases.

| 23 annual report 2004 - 2005

Photo: R M S crew members on the completion o f aerial spraying.

24 | ANIN1DILYAKWA LAND COUNCIL

ALC Outcomes/ Outputs framework:

O utco m e/ O u t p u t G r o u p/ sub- o u t pu t s framework An ‘outcome can be thought of as the land councils’ reason for existence and funding.

O utcom e The recognition, protection and advancement of land rights and interests of Aboriginal people of the Groote Eylandt Archipelago

O u t pu t Gr o u ps Output Groups are groupings of common ‘ deliverables ‘ under the ‘ whole of government ‘ framework presently in place and encapsulate the various legislative functions of Land Councils, both under the Aboriginal Land Rights Act and the Native Title Act .

Sub-outputs are a lower level of data capture to show more clearly the individual items that consolidate up to each output group.

The ALC’s Strategic Operating Plan follows an Output G roup/ sub-outputs framework covering its functions under the Aboriginal Land Rights Act

Ou t p u t G r o u p l: T he a d v a n c e m e n t a n d p r o t e c t io n of a bo rig in a l RIGHTS AND INTERESTS THROUGH ADVOCACY AND REPRESENTATION TO GOVERNMENTS AND OTHER STAKEHOLDERS

Sub-output 1.1 Objective To promote awareness of Aboriginal issues through dialogue and liaison between our constituents and stakeholders including governments

Strategies/A ctions • Develop protocols, common positions and understanding/ appreciation of Aboriginal issues

• Continue to maintain, develop and strengthen existing relationships with stakeholders based on the creditability and expertise of the ALC

• Promote Aboriginal interests and issues as they arise.

I 25 ANNUAL REPORT 2004 - 2005

Sub-output 1.2

Key Performance Indicators • Number of timely and appropriate responses to media responses and press releases

The Anindilyakwa Land Council lodged four articles in the Groote Eylandt newssheet, the Echo, addressing issues such as Permits, Recreation Areas accessible to residents of Alyangula and fishing.

Objective To represent and advocate for Aboriginal people in all appropriate forums and protect the rights and interests of traditional owners of the Groote Archipelago

Strategies/Action • Employ staff who are able to consult effectively with traditional owners

• Consult continuously with identified traditional owners to seek their view and formal instructions where appropriate

• Represent the expressed views of traditional owners in all appropriate local, NT and regional forums

• Implement the wishes o f traditional owners

Key Performance Indicators • Number of successful representations and submission made to government departments and other agencies

The ALC assisted in the development of the Liquor Management Plan for Groote Eylandt.

• Number of successful activities to assist traditional land owners in the maintenance of Aboriginal culture and heritage Funding was obtained to support cultural and ceremonial activities.

Processed applications for funeral assistance.

• Number of constructive initiatives taken to support/ advance the community development and governance requirements of remote communities and groups

The ALC is a key participant in discussions with the three indigenous Councils, the Northern Territory Government

26 I AN1N1D1LYAKWA LAND COUNCIL

Output Group 2

Sub-output 2.1

Sub-output 2.2

and the Indigenous Coordination Centre, Nhulunbuy, in regard to the establishment of a Regional Authority over the Groote Archipelago.

THE ACQUISITION OF LAND AND SEA COUNTRY INCLUDING CLOSURES

Objective Respond to the aspirations of the traditional owners

Strategies/Actions • Identify and consult with traditional owners in respect of Winchelsea and North Islands closure applications

• Consult continuously with identified traditional owners to seek their views and formal instructions where appropriate

Key Performance Indicators • Number of traditional owners successfully identified

The establishment of a Liaison and Consultation Unit headed by an Anthropologist has considerably enhanced the ability of the Land Council in identify traditional owners and affected people for discussions in regard to the Indigenous Protected Area and the Winchelsea and North

Groote areas. It is considered that the ALC has now a complete listing of the traditional owners of these areas.

• Number of unresolved land needs advanced by claim, research, negotiation and / or representation

One: Winchelsea Island Sea Closure

Objective To ensure effective negotiations between traditional owners and others who may be affected by closures

Stra tegies/Actio ns • Enter into negotiations using the knowledge gained by the ALC’s most experienced and well resourced team

Key Performance Indicators • Number of successful negotiations entered into

The ALC has entered into five negotiations on behalf of Traditional Owners. O f these three are in the final stages of being successful completed, one will be resolved prior

I 27 Annual report 2004 - 2005

to December 2005 and the GEMCO negotiations will be resolved in the 2005/2006 financial year.

Sub-output 2.3

OUTPUT GROUP 3

Sub-output 3.1

Objective Identify and examine options as alternatives to the closure process

Strategies/Actions • Consult with NT Fisheries and NT Parks and Wildlife about enforcement processes

• Utilise it’s awareness of its rights and obligations in regard to flora and fauna preservation enforcement

Key Performance Indicators • Number of appropriate alternative strategies examined

The establishment of an Indigenous Protected Area over the Groote Archipelago is an alternate strategy to the sea closure applications. The IPA process is supported by the traditional owners of the areas over which the two sea closure applications currently exist.

THE MANAGEMENT OF LAND AND SEA COUNTRY INCLUDING NATURAL RESOURCE AND ECONOMIC DEVELOPMENT

Objective Manage the Groote Archipelago in accordance with the wishes of traditional owners

Stra tegies/A ctions • Maintain ongoing consultations with traditional owners

• Ensure that the area is managed in accord with acceptable environmental principals

• Undertake regular patrols to all areas of the archipelago

• Consult with agencies such as the WWF, NT Parks and Wildlife and Environment Australia on best practice land management techniques

• Ensure that the ALC has properly trained staff to undertake land management practices

28 I ANINIDILYAKWA LAND COUNCIL

Key Performance Indicators • Degree of satisfaction by traditional owners with the land/sea management outcomes of the Anindilyakwa Land Council

Six people belonging to traditional land owing clans of Groote Eylandt are employed as rangers in the Land Management Program which receives solid support from all sectors of the Groote Archipelago Indigenous population.

Sub-output 3.2 Objective To implement, use and enforce an effective Permit System to ensure environmental protection

Strategies/Actions • Develop a Permit System that meets the wishes of the traditional owners and enables adequate protection of the environment

• Prosecute people abusing the Permit System

Key Performance Indicators • Number of Permits issued for valid reasons

The ALC issued 231 Recreation Permits and 195 Visitor Permits during the 2004/2005 year.

• Degree of land owners’ satisfaction with permit system

Land Owners have been consulted extensively over the Permit System and are satisfied with the current arrangements.

Sub-output 3.3 Objective To establish an Indigenous Protected Area (IPA) over the Groote Archipelago

Strategies/Actions • Prepare and submit am application for an I PA with Environment Australia

• Prepare a Management Plan for the Groote Archipelago

Key Performance Indicators • Successful preparation and submission of I PA

A funding application for the establishment of an IPA was successful. The preparation of a Natural Resource Management Plan for the area is currently being prepared and will be completed by September 2005.

I 29 ANNUAL REPORT 2004 - 2005

Sub-output 3.4

Sub-output 3.5

Objective Ensure that traditional owners are sufficiently aware of GEMCO’s operations to allow for informed decisions on mining and other development operations and proposals

Strategies/Actions • Monitors the operations of GEMCO through continuous liaison, inspections and formal discussions

• Prepare for the renegotiation of the GEMCO leases in 2006 and 2010 by establishing a competent and professional negotiating team and substantial data base of options

• Monitor the work of GEMCO in relation to the ELAs

• Attend Liaison meetings to discuss progress on the Eastern Leases

Key Performance Indicators • Degree of constituent awareness of the full implications of GEMCO’s operations

Six formal consultation sessions between GEMCO, the traditional owners and the ALC were held during the year. These involved:

- Pre and Post Wet Mine Tours to examine the Mining and Rehabilitation processes;

- Mine Closure Plan Meeting. This is a requirement under the Northern Territory Legislation;

- Meeting to discuss Aerial Spraying of some rehabilitation areas near Angurugu;

- Meeting to discuss Stockpiling top soil; and

- Meeting to examine alternate locations for the Mud Cod Bay Road.

Objective Advise and assist constituents wishing to pursue economic and enterprise opportunities

Strategies/Actions • Develop strategic partnerships with the NT Government, Indigenous Business Australia and other appropriate

30 | ANINID1LYAKWA LAND COUNCIL

O u t p u t G r o u p 4

Sub-output 4.1

agencies with the aim of providing an array of viable economic and enterprise options to the Aboriginal people of the area

• Develop appropriate expertise within the ALC to assist its constituents in enterprise development

Key Performance Indicators • Number of initiatives taken to support natural resource management planning and related programs

One major initiative - the establishment of an Indigenous Protected Area including the preparation of a Natural Resource Management Plan for the Groote Archipelago.

• Number of land use and natural resource management proposals, including for economic development, successful progressed

The A LC has beeti successful obtaining grants from envirofund (for Dune Stabilisation at Picnic Beach) and the World Wildlife Fund (for an educational video and for the beach clean up).

The ALC has also facilitated two Business Plans related to the economic development of natural resources: one relating to forestry and one to aquaculture.

G o v e r n a n c e a n d a d m in is t r a t io n

Objective Develop and maintain an efficient and effective system of corporate governance, accountability financial management, operating policies & procedures, budgeting, reporting, IT and risk management

Strategies/Actions • Develop policies and guidelines for endorsements by the Council

• Monitor, review and update policy on a regular basis

• Establishing and maintain monitoring and reporting process as required by the ALC Board and Minister

• Implement protocols and procedures for the maintenance of reporting and communications between the ALC, the

A n n u a l Report 2004 - 2005 | 31

Aboriginal community and the Aboriginal Benefit Account to ensure accountability for carrying out its functions under the ALRA

• Strengthen the internal process to increase effective and efficient service delivery and progressive financial and operating performance reporting

• Establishing and maintain a register of suitably qualified and experienced consultants

Key Performance Indicators • Degree of stakeholders satisfaction with the provision of accurate and timely financial and management performance reporting

Anindilyakwa Land Council members are satisfied with the current level of financial and management reporting.

• Degree of compliance with statutory and regulatory reporting

A ll statutory and regulatory reporting requirements have been complied with.

• Successful introduction of appropriate system of corporate governance

The ALC structure has been expanded and modified during the year to adequately reflect the increase workloads. Corporate Governance training was undertaken during the year and further training modules are planned for 2005/2006.

Sub-output 4.2 Objective Provide secretarial and other assistance to the governing body including timely and accurate financial and operating performance reports

Strategies/Actions • Utilise available resources to provide appropriate levels of assistance to the governing body

Key Performance Indicators • Degree of satisfaction with secretarial and other assistance provided

32 ANINiDlLYAKW A LAND COUNCIL

Sub-output 4.3

Sub-output 4.4

The ALC has a Secretariat Officer with responsibility for the conduct of all meetings. Members are satisfied with the level of documentation provided prior to a meeting and the minutes that record meetings.

Objective Establish and maintain an Audit Committee to ensure transparency and accountability for the ALC’s operations

Strategies/Actions • Ensure that the ALC’s operations are in accordance with its grant conditions and develop strategic planing priorities

Key Performance Indicators • Level of audit committee satisfaction with the governance of the ALC

The A udit Committee met twice during the year and we were satisfied with the governance of the ALC.

Objective Administer and ensure the equitable and appropriate distribution of Royalty equivalent monies

Strategies/Actions • Consult with traditional owners and royalty recipient organisations on the distribution an expecting of monies

• Ensure that all consultations are in accord with the conditions of the ABA and the Minister

• Base all ALC decisions on the distribution of monies on adequate and appropriate information

• Receive and monitor the financial records of Associations in receipt of royalty equivalent monies

Key Performance Indicators • Percentage of royalty payments made without dispute

All royalty distribution were made without major dispute though one grievance was received relating to the level of payments made to one royalty recipient organisation

| 33 ANNUAL REPORT 2004 - 2005

Sub-output 4.5 Objective Develop and maintain relationships with other Land Councils including protocols and agreements

Strategies/A ctions • Foster and maintain relationships with other land councils

• Develop protocols and agreements and arrangements between land councils

Key Performance Indicators • Number of effective M OU’s or other agreements/ protocols initiated with other land councils

The ALC has entered into an arrangement with the Central Land Council in regard to the negotiation of the GEMCO leases.

A high level of cooperation with the Northern Land Councils Caring for Country exists in relation to land management.

34 | aninidilyakwa Land council

E c o n o m i c / E n t e r p r i s e

d f v f i o p m f n t

Enterprise D evelopment During the year the Anindilyakwa Land Council was involved in four activities to promote and establish enterprise development on the Groote Archipelago:

1. Consultants were engaged to consider the viability of a number of activities and complete business case assessments for the following areas:

a) Tourism - The subsequent Business Plan led to the planing of Second Beach Resort Development;

b) Forestry - Following examination this was considered to be a marginal proposal;

c) Aquaculture - The reliance of technical advice, distance to markets and lack of infrastructure on Groote Eylandt mitigated against a wholly owned venture, however, the traditional are interested in a joint venture arrangement. This is been pursued by the ALC;

d) Civil Works - This is considered to offer potential and will be explored in the future.

2. A memorandum of Understanding between GEMCO and the ALC relating to the use of Indigenous owned enterprise by the Mining Company was negotiated.

3. Second Beach Development. This will be a quality remote tourism venture and is expected to be completed in 2005/2006.

4. Art and Craft. The ALC has encouraged and facilitated the establishment of an Art and Craft on Groote Eylandt. An early indication is positive with a market increase in the number of Indigenous people producing Art and Craft and a significant increase in the quality of the product.

Ec o n o m ic developm ent The ALC is currently considering opportunities for the economic development of the Indigenous people of the Groote Archipelago through participation in forums and committees established by the Northern Territory Government and

by activities pursuing options provided by other organisation such as Indigenous Business Australia.

ANNUAL REPORT 2004 - 2005 | 35

ManageM-LNT α ν π a c c ο llnia_ bj_ llty

Au d it /R isk Ma n a g e m e n t Sub Committee This Sub Committee met twice during the year to review the Land Councils financial process.

FRAUD CONTROL No incidences of fraud were detected during the year.

Co nsulta nts a n d Com petitive t e n d e r in g a n d Co n t r a c t in g No consultants or contracts were let over S I00,000 during this financial year.

f i T H F R F u n c t i o n s

The ALC participates in a number of activities and forums including:

• Groote Eylandt and Milyakburra Youth Development Unit Inc;

• Groote Eylandt and Bickerton Island Enterprises Aboriginal Corporation;

• Groote Eylandt Network Committee. A monthly meeting in which all Government agencies represented in the Archipelago, GEMCO and the Community Councils participate;

• Community Safety Committee. A committee chaired by the NT Police to discuss issues relating to law and order; and

• Steering Committee to consider the establishment of a Regional Authority.

R o y a l t y C o r p o r a t i o n s

The ALC continues to monitor the activities of royalty recipient organisations. A major examination of the number and purpose of these associations will be held in 2005/2006 with the Registrar of Aboriginal Corporations.

36 | aninidilyakwa Land Council

ΓτΤ O.SSARY

ABA Aboriginal Benefit Account

AEP Aboriginal Employment Program

ALC Anindilyakwa Land Council

CDEP Community Development & Employment Program

CLC Central Land Council

DBIRD Department of Business, Industry & Resource Development

EDP Employment Development Plan

ELA Exploration Licence Plan

GEMCO Groote Eylandt Mining Company

GEMYDU Groote Eylandt & Milyakburra Youth Development Unit Inc

I PA Indigenous Protected Area

NT Northern Territory

MOU Memorandum of Understanding

WWF World Wide Fund for Nature

ANNUAL REPORT 2004 - 2005

A Ml NPT I.YAKWA LAND C O U N C I L

F I N A N C I A L S T A T F M F N T S

FOR THE YEAR ENDED 30 JUNE 2005

38 I ANiNIDlLYAKWA LAND COUNCIL

Australian National Audit O ffice

INDEPENDENT AUDIT REPORT

To the Minister for Immigration and Multicultural and Indigenous Affairs

Scope

The financial statements and directors’ responsibility

The financial statements comprise:

• Members’ Certificate;

• Statements of Financial Performance, Financial Position and Cash Flows;

• Schedules of Commitments and Contingencies; and

• Notes to and forming part of the Financial Statements

of the Anindilyakwa Land Council for the year ended 30 June 2005.

The members of the Executive of the Anindilyakwa Land Council are responsible for preparing the financial statements that give a true and fair view of the financial position and performance of the Corporation, and that comply with the Finance Minister’s Orders made under the Commonwealth Authorities and Companies Act

1997, accounting standards and other mandatory financial reporting requirements in Australia. The members of the Executive of the Anindilyakwa Land Council are also responsible for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial statements.

Audit approach

I have conducted an independent audit of the financial statements in order to express an opinion on them to you. My audit has been conducted in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing and Assurance Standards, in order to provide reasonable assurance as to whether the financial statements are free of material misstatement. The nature of an audit is influenced by factors such as the use of professional judgement, selective testing, the inherent limitations of internal control, and the

availability of persuasive, rather than conclusive, evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected.

While the effectiveness of management’s internal controls o\rer financial reporting was considered when determining the nature and extent of audit procedures, the audit was not designed to provide assurance on internal controls.

| 39 ANNUAL REPORT 2004 - 2005

I have performed procedures to assess whether, in all material respects, the financial statements present fairly, in accordance with the Finance Minister’s Orders made under the Commonwealth Authorities and Companies Act 1997, including accounting standards and other mandatory financial reporting requirements in Australia, a view which is consistent with my understanding of the Council’s

financial position, and of its performance as represented by the statements of financial performance and cash flows.

The audit opinion is formed on the basis of these procedures, which included:

• examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial statements; and

• assessing the appropriateness of the accounting policies and disclosures used, and the reasonableness of significant accounting estimates made by the members of the Executive of the Anindilyakwa Land Council.

Independence

In conducting the audit, I have followed the independence requirements of the Australian National Audit Office, which incorporate the ethical requirements of the Australian accounting profession.

Audit Opinion

In my opinion, the financial statements of the Anindilyakwa Land Council:

(a) have been prepared in accordance with the Finance Minister’s Orders made under the Commonwealth Authorities and Companies Act 1997; and

(b) give a true and fair view of the Anindilyakwa Land Council’s financial position as at 30 June 2005 and of its performance and cash flows for the year then ended, in accordance with:

(i) the matters required by the Finance Minister’s Orders; and

(ii) applicable accounting standards and other mandatory financial reporting requirements in Australia.

Australian National Audit Office

Mark Moloney Senior Director

Canberra 20 September 2005

40 | aninidilyakwa Land Council

TARI f of C o n t f NTS

INDEPENDENT AUDIT REPORT...................................................................................... 39

M embers C ertificate.........................................................................................................42

STATEMENT OF FINANCIAL PERFORMANCE ......................................................43

STATEMENT OF FINANCIAL POSITION.................................................................44

STATEMENT OF CASH FLOWS........................................................................................... 45

SCHEDULE OF COMMITMENTS...............................................................................46

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS...........47

I 41 ANNUAL REPORT 2004 - 2005

AN IN DILYAKWA LAND C O U N C IL MEMBERS’ CERTIFICATE FOR THF. YF.AR E N D E D 30 TTTNF. 2005

gee·*6

In our opinion, the attached financial statements for the year ended 30 June 2005 have been prepared and based on properly maintained financial records and give a true and fair view of the matters required by the Finance Minister’s Orders made under the Commonwealth Authorities and Companies A ct 1997.

In our opinion, at the date of this statement, there are reasonable grounds to believe that the Anindilyakwa Land Council will be able to pay its debts as and when they become due and payable.

This statement is made in accordance with a resolution of the members.

Walter Amagula Member

Tony Wurramarrba Member

Dated this 13th day of September 2005 Dated this 13th day of September 2005

42 | ANIN1D1LYAKWA LAND COUNCIL

STATEMENT OF FINANCIAL PERFORMANCE FOR T H E YEAR F.NDF.D 30 TTJNF. 7.005

Note 2005 2004

$ $

REVENUE Revenues from ordinary activities

Revenue from Government 4A 737,761 678,232

Interest 4B 10,336 5,941

Grants 4C 352,154 -

Agency and administration 4D 94,000 91,521

Rent 53,719 -

Royalties 50,266 -

Other 4E 56,384 46,025

Revenues from ordinary activities 1,354,620 821,719

EXPENSE Expenses from ordinary activities Employees and council members 5A 470,378 290,174

Suppliers 5B 651,279 446,651

Depreciation and amortisation 5C 96,892 95,530

Expenses from ordinary activities 1,218,549 832,355

Net profit / (loss) 136,071 (10,636)

Total changes in equity other than those resulting from transactions with owners as owners 136,071 (10,636)

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

I 43 ANNUAL REPORT 2004 - 2005

STATEMENT OF FINANCIAL POSITION AS AT 30 JITNF. 2005

Note 2005 2004

______________ $________________ $_

ASSETS Financial assets Cash 12B 209,024 187,097

Receivables 6A 168,696 117,472

Total financial assets 377,720 304,569

Non-financial assets Infrastructure, plant and 7A,B 552,601 613,398

equipment Other non-financial assets 7C - 1,634

Total non-financial assets 552,601 615,032

Total assets 930,321 919,601

LIABILITIES Interest bearing liabilities Leases 8A 21,358 63,045

Total interest bearing liabilities 21,358 63,045

Provisions Employees 9A 46,598 14,223

Total provisions 46,598 14,223

Payables Suppliers 10A 33,821 67,301

Other payables 10B - 82,559

Total payables 33,821 149,860

Total liabilities 101,777 227,128

NET ASSETS 828,544 692,473

EQUITY Accumulated surplus 11 828,544 692,473

Total equity 828,544 692,473

Current assets 377,720 306,203

Non-current assets 552,601 613,398

Current liabilities 90,618 227,128

Non-current liabilities 11,159 -

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

44 | aninidilyakwa Land Council

STATEMENT OF C A S H F L O W S AS AT SO TTTNF. 7Ω05

Note 2005

$

2004 $

OPERATING ACTIVITIES Cash received Goods and Services 1,293,060 837,291

Interest 10,336 5,905

GST received from ATO 27,852 69,838

Total cash received 1,331,248 913,034

Cash used Employees and council members (452,548) (280,400)

Suppliers (758,263) (568,452)

Other - (9,405)

Total cash used (1,210,811) (858,257)

Net cash from operating activities 12 A 120,437 54,777

INVESTING ACTIVITIES Cash received Proceeds from sales of property, - . -

plant and equipment Total cash received - -

Cash used Purchase of property, plant and (56,823) (7,144)

equipment Total cash used (56,823) (7,144)

Net cash used by investing activities (56,823) (7,144)

FINANCING ACTIVITIES Cash used

Repayments of debt (41,687) (27,475)

Total cash used (41,687) (27,475)

Net cash used by financing activities (41,687) (27,475)

Net increase/(decrease) in cash held 21,927 20,158

Cash at the beginning of the 187,097 166,939

reporting period Cash at the end of the reporting period 12B 209,024 187,097

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

I 45 ANNUAL REPORT 2004 - 2005

SCHEDULE OF CO M M ITM EN TS AS AT 30 TITNF. 3005

2005 2004

$ $

BY TYPE Capital commitments

Leasehold improvements - 22,801

Total capital commitments - 22,801

Other commitments

Operating leases1 11,360 27,197

Total other commitments 11,360 27,197

Commitments receivable (1,033) (4,545)

Net commitments 10,327 45,453

BY MATURITY Capital commitments

One year or less - 22,801

Total capital commitments - 22,801

Operating lease commitments One year or less 11,360 15,837

From one to five years - 11,360

Total operating lease commitments 27,197

Commitments receivable (1,033) (4,545)

Net commitments by maturity 10,327 45,453

NB: Commitments are GST inclusive where relevant.

Operating leases included are effectively non-cancellable and comprise:

Nature of lease General description of leasing arrangement

Leases for computer equipment The lessor provides all computer equipment and software designated as necessary in the supply contract for three years. The Council may vary its originally designated requirement, subject to credit approval, at any time The above statement should be read in conjunction with the accompanying notes.

46 | AN1N1DILYAKWA LAND COUNCIL

NOTES TO AN D FO RM ING PART OF THE FINANCIAL STATEMENTS FOP THF. YEAR E N D E D 30 TUNE 3005

Note 1: Summary of Significant Accounting Policies............................................ 48

Note 2: Adoption of Australian Equivalents to International Financial Reporting Standards from 2005-2006........................................................53

Note 3: Economic Dependency................................................................................ 57

Note 4: Operating Revenues.................................................................................. 58

Note 5: Operating Expenses................................................................................... 58

Note 6: Financial Assets.......................................................................................... 59

Note 7: Non-Financial Assets................................................................................. 60

Note 8: Interest Bearing Liabilities........................................................................62

Note 9: Provisions................................................................................................... 62

Note 10: Payables.....................................................................................................62

Note 11: Equity....................................................................................................... 63

Note 12: Cash Flow Reconciliation....................................................................... 63

Note 13: Members' Remuneration.......................................................................... 64

Note 14: Related Party Disclosures....................................................................... 64

Note 15: Remuneration of Auditors...................................................................... 65

Note 16: Average Staffing Levels........................................................................... 65

Note 17: Financial Instruments..............................................................................66

Note 18: Assets Held in Trust................................................................................ 67

Note 19: Comparison of 2005 Actual Results to Approved Expenditure Estimates.............................................................................................. 70

I 47 ANNUAL REPORT 2004 - 2005

NOTES TO AND FO R M IN G PART OF THE FINANCIAL STATEMENTS FOR T H E YF.AR F.NDF.D 30 TTTNF. 700.fi

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1.1 Basis o f Accounting

The financial statements of Anindilyakwa Land Council (“the Council” ) are required by clause 1(b) of Schedule 1 to the Commonwealth Authorities and Companies Act 1997 and are a general purpose financial report.

The statements have been prepared in accordance with:

• Finance Minister’s Orders (being the Commonwealth Authorities and Companies Orders (Financial Statements for reporting periods ending on or after 30 June 2005);

• Australian Accounting Standards and Accounting Interpretations issued by the Australian Accounting Standards Board; and

• Urgent Issues Group abstracts.

The Council’s Statements of Financial Performance and Financial Position have been prepared on an accrual basis and are in accordance with historical cost convention, except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

Assets and liabilities are recognised in the Council’s Statement of Financial Position when and only when it is probable that future economic benefits will flow and the amounts of the assets or liabilties can be reliably measured. Assets and liabilities arising under agreements equally proportionately unperformed are however not recognised unless required by an Accounting Standard. Liabilities

and assets that are unrecognised are reported in the Schedule of Commitments and the Schedule o f Contingencies.

Revenues and expenses are recognised in the Council’s Statement of Financial Performance when and only when the flow or consumption or loss of economic benefits has occurred and can be reliably measured.

48 | AN1NID1LYAKWA LAND COUNCIL

1.2

1.3

1.4

Reporting by Outcomes

A comparison of Budget and Actual figures by outcome specified in the Appropriation Acts is not applicable to the Council as the Council does not receive direct appropriations from the Commonwealth. As stated in note 3, funds are received from the Aboriginal Benefits Account.

Revenue

The revenues described in this Note are revenues relating to the core operating activities of the Council.

Interest revenue is recognised on a time proportionate basis that take into account the effective yield on the relevant asset.

Revenue from disposal on non-current assets is recognised when control of the asset has passed to the buyer.

Revenue from the rendering of a service is recognised as the service is provided.

Revenues from Government - Output Appropriations

The full amount of the appropriation for departmental outputs for the year is recognised as revenue.

Resources Received Free of Charge

Services received free of charge are recognised as revenue 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.

Employee Benefits

Benefits

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

Liabilities for wages and annual leave 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.

Leave

The liability for employee benefits includes provision for annual leave.

| 49 a n n u a l Repo rt 2004 - 2005

1.5

1.6

1.7

1.8

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 Council is estimated to be less than the annual entitlement for sick leave. No provision has been made for long service leave as no employee is currently entitled to accrue long service leave.

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

Superannuation

Employees of the Council are members of an approved superannuation fund.

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 benefits incidental to ownership of leased non-current assets. In operating leases, the lessor effectively retains substantially all such risks and benefits.

Where a non-current asset is acquired by means of a finance lease, the asset is capitalised at the present value of minimum lease payments at the beginning of the lease term and a liability recognised at the same

time and for the same amount. The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.

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. Interest is credited to revenue as it accrues.

Appropriation Receivable

These receivables are recognised at the nominal amounts due.

Other Financial Liabilities

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).

50 | aninidilyakwa Land CouNcit

1.9 Acquisition o f Assets

1.10

Assets are recorded at cost on acquisition. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken.

Property (Land, Buildings and Infrastructure), Plant and Equipment

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $500, 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).

Depreciation

Depreciable property, plant and equipment and motor vehicles are written-off to their estimated residual values over their estimated useful lives using the diminishing value and straight line methods of depreciation. Leasehold improvements are amortised 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) 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:

2005 2004

$ $

Leasehold and office improvements 0 to 10 years 0 to 10 years

Plant and equipment 4 years 4 years

Motor vehicles 4 years 4 years

Office furniture and equipment 0 to 10 years 0 to 10 years

Boat 25% 25%

The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosed in Note 5(c).

ANNUAL REPORT 2004 - 2005

1.11

1.12

1.13

1.14

1.15

Impairment o f Non-Current Assets

The Non-current assets carried at cost, which are not held to generate net cash inflows, have been assessed for indications of impairment. Where indications of impairment exist, the asset is written down to the higher of its net selling price and, if the entity would replace the asset’s service potential, its depreciated replacement cost.

Taxation

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

Revenue, expenses and assets are recognised net of GST:

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

• except for receivables and payables.

As of 1 July 2005 the Council has been recognised as a Public Benevolent Institution by the Australian Taxation Office. Its recognition accesses the following tax concessions to the Council:

• GST concession from 1 July 2005;

• FBT exemption from 1 July 2005; and

• Income tax expense exemption from 1 July 2000.

Insurance

The Council has insured for risks through the Government’s insurable risk managed fund, called ‘Comcover’. Workers’ compensation is insured through Comcare Australia.

Segment Reporting

Anindilyakwa Land Council “the Council” operates in a single industry and geographic segment, being a statutory Commonwealth authority pursuant to the Aboriginal Land Rights Act (Northern Territory) 1976, and operating according to the objectives of that legislation.

Rounding

The amounts shown in the financial statements have been rounded to the nearest dollar.

52 | ANIN1D1LYAKWA LAND COUNCIL

NOTE 2: a d o p t io n o f Austra lia n Equivalents t o In t e r n a t io n a l Fin a n c ia l Re po r t in g Sta n d a r d s fr o m 2005-2006

The Australian Accounting Standards Board has issued replacement Australian Accounting Standards to apply from 2005-06. The new standards are the Australian Equivalents to International Financial Reporting Standards (AEIFRS). The International Financial

Reporting Standards are issued by the International Accounting Standards Board. The new standards cannot be adopted early. The standards being replaced are to be withdrawn with effect from 2005­ 06, but continue to apply in the meantime, including reporting periods ending on 30 June 2005.

The purpose of issuing AEIFRS is to enable Australian reporting entities reporting under the Corporations Act 2001 to be able to more readily access overseas capital markets by preparing their financial reports according to accounting standards more widely used overseas.

For-profit entities complying with AEIFRS will be able to make an explicit and unreserved statement of compliance with International Financial Reporting Standards (IFRS) as well as a statement that the financial report has been prepared in accordance with Australian Accounting Standards.

AEIFRS contain certain additional provisions that will apply to not- for-profit entities, including not-for-profit Australian Government Authorities. Some of these provisions are in conflict with IFRS, and therefore Anindilvakwa Land Council will only be able to assert that

the financial report has been prepared in accordance with Australian Accounting Standards.

Accounting Standard AASB 1047 Disclosing the Impacts of Adopting Australian Equivalents to International Financial Reporting Standards requires that the financial report for 2004-05 disclose:

• an explanation of how the transition to AEIFRS is being managed;

• narrative explanations of the key policy differences arising from the adoption of AEIFRS;

• any known or reliably estimable information about the impacts on the financial report had it been prepared using the Australian equivalents to IFRS; and

• if the impacts of the above are not known or reliably estimable, a statement to that effect.

ANNUAL REPORT 2004 - 2005 j 53

Where an entity is not able to make a reliable estimate, or where quantitative information is not known, the entity should update the narrative disclosures of the key differences in accounting policies that are expected to arise from the adoption of AEIFRS.

The purpose of this Note is to make these disclosures.

Management of the transition to AEIFRS

Anindilyakwa Land Council has taken the following steps for the preparation towards the implementation of AEIFRS:

• The Council’s Audit Committee is tasked with oversight of the transition to and implementation of AEIFRS. The Chief Finance Officer is formally responsible for the project and reports regularly to the Audit Committee on progress against the formal plan approved by the Committee.

• The plan requires the following key steps to be undertaken and sets deadlines for their achievement:

• All major accounting policy differences between current AASB standards and AEIFRS were identified by 30 June 2004.

• System changes necessary to be able to report under the AEIFRS, including those necessary to capture data under both sets of rules for 2004-05 were completed in February 2005. This included the testing and implementation of those changes.

• A transitional balance sheet as at 1 July 2004 under AEIFRS was completed and presented to the Audit Committee in May 2005.

• An AEIFRS compliant balance sheet as at 30 June 2005 was also prepared during the preparation of the 2004-05 statutory financial reports.

• The 2004-05 Balance Sheet under AEIFRS will be reported to the Department of Finance and Administration in line with their reporting deadlines.

• The plan also addresses the risks to successful achievement of the above objectives and includes strategies to keep implementation on track to meet deadlines.

• Consultants were engaged where necessary to assist with each of the above steps.

54 I ANINIDILYAKW A LAND COUNCIL

Major changes in accounting policy

Changes in accounting policies under AEIFRS are applied retrospectively i.e. as if the new policy had always applied except in relation to the exemptions available under AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting

Standards. This rule means that an AEIFRS compliant balance sheet had to be prepared as at 1 July 2004. This will enable the 2005-06 financial statements to report comparatives under AEIFRS.

Changes to major accounting policies are discussed in the following paragraphs.

Management’s review of the quantitative impacts of AEIFRS represents the best estimates of the impacts of the changes as at reporting date. The actual effects of the impacts of AEIFRS may differ from these estimates due to:

• continuing review of the impacts of AEIFRS on Anindilyakwa Land Council operations;

• potential amendments to the AEIFRS and AEIFRS Interpretations; and

• emerging interpretation as to the accepted practice in the application of AEIFRS and the AEIFRS Interpretations.

Property plant and equipment

It is expected that the 2005-06 Finance Minister’s Orders will continue to require property plant and equipment assets to be valued at fair value in 2005-06.

Impairment of Ron-Current Assets

Anindilyakwa Land Council’s policy on impairment of non-current assets is at Note 1.11.

Under AEIFRS these assets will be subject to assessment for impairment and, if there are indications of impairment, an assessment of the degree of impairment. (Impairment measurement must also be done, irrespective of any indications of impairment, for intangible

assets not yet available for use). The impairment test is that the carrying amount of an asset must not exceed the greater of (a) its fair value less costs to sell and (b) its value in use. ‘Value in use’ is the net present value of net cash inflows for for-profit assets of the Council

and depreciated replacement cost for other assets which would be

l i i

I 55 ANNUAL REPORT 2004 - 2005

replaced if Anindilyakwa Land Council were deprived of them.

However, an impairment assessment of the Council’s assets indicated that no adjustments will be required.

Employee Benefits

AEIFRS require that annual leave that is not expected to be taken within 12 months of balance date is to be discounted. After assessing the staff leave profile, Anindilyakwa Land Council does not expect that any material amounts o f the annual leave balance will not be

taken in the next 12 months. Consequently, there are no adjustments for non-current annual leave.

Reconciliation of Impacts - AG AAP to AEIFRS 30 June 2005*

$

Reconciliation of Anindilyakwa Land Council Equity

30 June 2004

$

Total Equity under AGAAP 828,544 692,473

Adjustments to accumulated results - -

Adjustments to other reserves - -

Total Equity under AEIFRS 828,544 692,473

Reconciliation of Anindilyakwa Land Council Accumulated Results

Total Accumulated Results under AGAAP 828,544 692,473 Adjustments - -

Total Accumulated Results under AEIFRS 828,544 692,473

Reconciliation o f Anindilyakwa Land Council Net Profit Net Profit under AGAAP 136,071 (10,636)

Adjustments - -

Net profit under AEIFRS 136,071 (10,636)

* 30 June 2005 total represents the accumulated impacts of AEIFRS from the date of transition.

56 | AN1NIDILYAKWA LAND COUNCIL

NOTE 3: ECONOMIC DEPENDENCY

The Council is a statutory authority formed within the provision of section 21 of the Aboriginal Land Rights Act (Northern Territory) 1976. The Council receives distributions from the Aboriginal Benefits Account (ABA) consistent with sections 64(1) and 64(7) of the Act. The continued existence and ability to carry out the normal activities of the Council are dependent on the continued release of these funds.

The funding conditions of the Council are laid down by the Act. Accounting for monies received from the ABA is subject to the conditions approved by the Minister for Immigration and

Multicultural and Indigenious Affairs.

Mining royalties received from the ABA (section 64(3)) are made after deductions for mining withholding tax.

annual Report 2004 - 2005

2005 $

2004 $

NOTE 4: OPERATING REVENUES Note 4A: Revenues from Government Receipts from the ABA Section 64(1) 478,380 428,391

Section 64(7) 259,381 249,841

Total revenues from government 737,761 678,232

Section 64(3) and 64(4) receipts are disclosed at note 18

Note 4B: Interest Revenue 24 hour cal] - cash management account 10,336 5,941

Note 4C: Grant Revenue NT Government and others 188,804

Heritage Trust 163,350 -

352,154 -

Note 4D: Agency and Administration Revenue Agency fees 10,000

Administration fees 40,000 43,000

Administration royalties 44,000 48,521

94,000

Note 4E: Other Revenue Permit revenue 17,320 11,694

Wage recovery - CDEP 14,987 -

Other revenue 24,077 34,331

Total other revenue 56,384 46,025

NOTE 5: OPERATING EXPENSES Note 5A: Employee and Council Member Expenses Chairman’s fees 63,600 55,780

Sitting fees 31,576 28,620

Superannuation 33,163 26,236

Wages 339,585 178,222

Total employee benefits expenses 467,924 288,858

Workers compensation premiums 2,454 1,316

Total employee expenses 470,378 290,174

58 I AN1N1DILYAKWA LAND COUNCIL

Note 5: Operating Expenses (continued) 2005 2004

$ $

Note 5B: Supplier Expense

Goods from external entities Services from related entities Services from external entities Operating lease rentals

21,673

618,168 11,438

33,232 38,700 354,308 20,411

Total supplier expenses 651,279 446,651

Note 5C: Depreciation and Amortisation Depreciation of property, plant and equipment 70,702 69,338 Amortisation of leased assets 26,190 26,192

Total depreciation and amortisation 96,892 95,530

The aggregate amounts of depreciation or amortisation expensed during the reporting period for each class of depreciable asset are as follows: Leasehold and office improvements 52,200 52,200

Plant and equipment 1,971 1,943

Motor vehicles 5,243 6,603

Office furniture and equipment 7,978 5,471

Boat 3,310 3,121

Motor vehicles - Leased 26,190 26,192

Total depreciation and amortisation 96,892 95,530

n o t e 6: Fin a n c ia l Assets

Note 6A: Receivables Appropriations receivable 66,623 101,821

GST receivable 16,588 216

Other receivables 85,485 15,435

Total receivables (net) 168,696 117,472

All receivables are current assets Receivables (gross) are aged as follows: Not Overdue 104,968 104,732

Overdue by: Less than 30 days 26,641 7,000

30 to 60 days 2,343 1,315

60 to 90 days 2,317 830

More than 90 days 32,427 3,595

63,728 12,740

Total receivables (gross) 168,696 117,472

N .:::

I 59 ANNUAL REPORT 2004 - 2005

2005 $

2004 $

NOTE 7: ΝΟΝ-FINANCIAL ASSETS

Note 7A: Infrastructure, Plant and Equipment Leasehold improvements - at cost - Accumulated amortisation

524,226 (106,626)

524,226 (54,426)

417,600 469,800

Plant and equipment - at cost

- Accumulated depreciation

24,329

(16,527)

19,574

(14,556)

7,802 5,018

Motor vehicles - at cost - Accumulated depreciation

41,614 (21,133)

41,614 (15,890)

20,481 25,724

Office furniture and equipment - at cost - Accumulated depreciation

73,700 (29,341)

59,633 (21,363)

44,359 38,270

Motor vehicles - under lease - Accumulated amortisation

126,457 , (90,542)

126,457 (64,352)

35,915 62,105

Boat

- at cost - Accumulated depreciation

54,163 (27,719)

36,890 (24,409)

26,444 12,481

Total infrastructure, plant and equipment (non-current) 552,601 613,398

60 I ANINIDILYAKWA LAND COUNCIL

Note 7: Non-Financial Assets (continued)

Note 7B: Analysis of Infrastructure, Plant and Equipment

Table A1 - Reconciliation of the opening and closing balances of infrastructure, plant and equipment

Office Motor

Item

Leasehold Plant & Motor furniture & vehicles improvements equipment vehicles equipment lease Boat $ $ $ $ $ $

As at 1 July 2004 Gross book value Accumulated depreciation/amortisation

524,226 19,574 41,614 59,633 126,457 36,890 808,394% (54,426) (14,556) (15,890) (21,363) (64,352) (24,409) (194,996)A

Opening net book value 469,800 5,018 25,724 38,270 62,105 12,481 613,398

Additions By purchase - 4,755 - 14,067 - 17,273 36,095

Depredation/amortisation expense 52,200 1,971 5,243 7,978 26,190 3,310 96,892

As at 30 June 2005 Gross book value Accumulated depreciation/amortisation

524,226 (106,626) 24,329 (16,527)

41,614 (21,133) 73,700 (29,341)

126,457 (90,542)

54,163 (27,719) 844,489 ■ 291.888)

Closing net book value 417,600 7,802 20,481 44,359 35,915 26,444 552,604..

Τ Ί

Note 7C: Other Non-Financial Assets

Deposits Other prepayments

Total other non-financial assets

1,050 584

1,634

I 61 ANNUAL REPORT 2004 - 2005

2005 2004

$ $

NOTE 8: INTEREST BEARING LIABILITIES

Note 8A: Leases Finance lease commitments Payable: Within one year 11,678 68,439

In one to five years 11,678 -

Minimum lease payments 23,356 68,439

Deduct: future finance charges (1,998) (5,394)

Total lease liability 21,358 63,045

Lease liability is categorised as follows: Current 10,199 63,045

Non-current 11,159 -

Total lease liability 21,358 63,045

Finance leases exist in relation to certain motor vehicles. The leases are non-cancellable and for fixed terms averaging two years. The Council guarantees the residual values of all assets leased. There are no contingent rentals. The interest rate implicit in the leases averaged 8.74% (2004:

13.8%). The lease liabilities are secured by the lease assets.

NOTE 9: PROVISIONS Note 9A: Employee Provisions Salaries and wages 8,125 2,299

Leave 23,928 -

Superannuation payable 5,250 -

PAYG payable 9,295 11,924

Aggregate employee entitlement liability 46,598 14,223 All employee provisions are current 46,598 14,223

NOTE 10: PAYABLES Note 10A: Supplier Payables Trade creditors 23,921 37,053

Trade creditors - Capital acquisitions - 20,728

Provision for audit fees 9,900 9,520

Total supplier payables 33,821 67,301

All supplier payables are current.

Note 10B: Other Payables Unearned income 82,559

Total other payables - 82,559

All other payables are current.

62 | aninidilyakwa Land Council

NOTE 11 :EQU ITY

Note 11 A: Analysis o f Equity Accumulated Total Equity

Item „ ,

Results

2005 2004 2005 2004

$ $ $ $

Opening balance as at 1 July 692,473 703,109 692,473 703,109 Net surplus/deficit 136,071 (10,636) 136,071 (10,636)

Closing balance as at 30 June 828,544 692,473 828,544 692,473

N ote 12: Ca sh Fl o w r e c o n c il ia t io n

Note 12A: Reconciliation of Operating Surplus/ ( Deficit) to Net Cash from Operating Activities: Reconciliation of operating surplus/(deficit) to 2005 2004 net cash from operating activities: $ $

Operating surplus/(deficit) 136,071 (10,636)

Non-Cash Items

Depreciation and amortisation 96,892 95,530

Changes in Assets and Liabilities (I ncrease )/decrease in receivables (51,224) (25,663)

(I ncrease )/decrease in prepayments 584 3,104

(Increase) / decrease in other assets 1,050 -

Increase/(decrease) in employee provisions 32,375 9,774 Increase/(decrease) in other payables (82,559) 54,626

Increase/(decrease) in supplier payables (12,752) (71,958)

Net cash from/(used by) operating activities 120,437 54,777

Note 12B: Reconciliation o f Cash Cash balance comprises:

Cash on hand CMA 24 hour call - operating account 195,536 181,004

Cash at bank - operating account 13,488 6,093

Total cash 209,024 187,097

Balance of cash as at 30 June shown in the Statement of Cash Flows 209,024 187,097

V J

| 63 annual Report 2004 - 2005

n o t e 13: M e m b e r s’ Re m u n e r a t io n

2005 $

2004 $

The number of members who received or were due to receive remuneration:

$Nil $9,999 23 22

$30,000 - $39,999 1 1

$40,000 - $49,999 1 1

Total number of members of the council 25 24

The total remuneration received by $100,003 $104,962 members of the Council

NOTE 14: RELATED PARTY DISCLOSURES Total income received, or due and receivable, by all members of Anindilyakwa Land Council from the Council includes members sitting fees of $31,576 (2004: $28,620). sThe members’

remuneration includes all members concerned with or taking part in the management of the economic entity.

The members of the Council, in consultation with the Traditional Land Owners of the area, are the decision making bodies of the Council.

The names of each person who held the role of member of Anindilyakwa Land Council during the financial year are Tony Wurramarrba,Wanella Yantarrnga, Mildred Mamarika, Walter Amagula, Eric Amagula, Laban Wurramarrba, Paul Bara, Vail Wurramara, Lionel Jaragba, Rebecca Wurramarra, Barnabus

Marrinyamanja, Simeon Lalara, Philip Mamarika,Thomspon Bara, Jimmy Yantarrnga, Sylvia Durilla, Joyce Bara Bara, Roger Lalara, Wayne Wurrawilya, Peter Wurramara, Robert Amagula, Richard Herbert, Linda Mamarika, Wilfred Wurramara and AlecWurramara.

During the year, the Council paid amounts to superannuation funds in connection with the employment of the members and principal executive officers of the Anindilyakwa Land Council. These amounts are disclosed in aggregate as the members believe that the provision of full particulars would be unreasonable.

Total superannuation contributions 33,163 26,236

64 j AN1N1DILYAKWA LAND COUNCIL

2005 $

2004 $

N ote 15: R e m u n e r a t io n o f a u d it o r s Remuneration to the Auditor-General for auditing the financial statements for the reporting period.

The fair value of services provided was: 9,900 9,520

In addition to the amounts disclosed above, there is an additional amount of auditor remuneration totalling $2,400 relating to the 2005-06 financial statements audit, arising from work to be done on the opening balance sheet to be prepared under Australian equivalents to International Financial Reporting Standards.

No other services were provided by the Auditor-General during the reporting period.

NOTE 16: AVERAGE STAFFING LEVELS The average staffing levels for the Council during the year were: 11 9

« ■ s i

I 65 ANNUAL REPORT 2004 - 2005

Note 17:

NOTE 18:

Financial Instruments (continued)

No other assets or liabilities were subject to interest charges.

(a) Interest rate risk

Interest is credited to revenue as it accrues. It is earned at the above rates and is paid at the end of the relevant month.

(b) Credit risk exposures

The Council does not have any significant credit risk exposure to any counterparty or group of counterparties.

(c) Net fair value o f financial assets and liabilities

The net fair values of financial assets and liabilities recorded in the financial statements are approximated by their carrying values.

Assets H eld in T r u st Royalty Trust Account

The Council maintains a royalty trust account. Royalties received on behalf of Associations of Aboriginal people and individuals, in accordance with section 35 of the Aboriginal Land Rights (Northern Territory) Act 1976, are held in the royalty trust account and distributed in accordance with the terms of the Trust. These monies are not available for other purposes of the Council and are not recognised in these financial statements.

ANNUAL REPORT 2004 - 2005

18: Assets Held in Trust (continued) 2005

$

2004 $

Receipts and payments statement

Receipts Mining royalties - section 64(3) 6,919,293 4,002,474

Interest received - 5,670

Lease royalties 18,549 197,943

Total receipts 6,937,842 4,206,087

Payments Bank charges 18 15

Amavvurra Aboriginal Corporation 333,813 376,289

Amarungkwurra Aboriginal Corporation 381,000 348,828

GEBI Enterprises Aboriginal Corporation 4,526,038 1,780,000 Numayanga Aboriginal Corporation 208,000 323,498

Bara Clan 22,000 15,365

Angabunumanja Aboriginal Corporation 155,000 404,625

Nuburrumanja Aboriginal Corporation 525,000 323,805

Warningakalina Aboriginal Corporation 386,442 323,498

Amangarra Aboriginal Corporation 400,000 584,234

Total payments 6,937,311 4,480,157

Surplus/) Deficit) of receipts over payments 531 (274,070)

Reconciliation o f royalty funds held in trust Cash at bank at beginning of year 29,638 303,708

Add net movement in cash for the year 531 (274,070)

Total 30,169 29,638

Comprising:

Royalties cash management account 30,169 29,638

68 | AN1N1D1LYAKWA LAND COUNCIL

Note 18: Assets Held in Trust (continued)

Ceremonies Trust Account

The Council maintains a ceremony trust account. Funds received on behalf of Associations of Aboriginal people and individuals, in accordance with section 35 of the Aboriginal Land Rights (Northern Territory) A ct 1976, are held in the ceremony trust account and distributed in accordance with the terms of the Trust. These monies are not available for other purposes of the Council and are not

recognised in these financial statements.

2005 $

2004 $

Receipts and payments statement Receipts

Transfers from operational account 2,234

Ceremony funds - section 64(4) 45,871 10,884

Total receipts 45,871 13,118

Payments

Bank charges 48 130

GST credits attributable - 877

ABA Ceremonial - Ceremony 14,535 1,093

ABA Ceremonial - Funerals 28,255 9,025

Total payments 42,838 11,125

Surplus/(Deficit) of receipts over 3,033 1,993

payments Reconciliation of ceremony funds held in trust

Cash at bank at beginning of year 4,863 2,870

Add net movement in cash for the year 3,033 1,993

Total 7,896 4,863

Comprising of:

Ceremonies cheque account 7,896 4,863

| 69 annual Report 2004 - 2005

NOTE 19: COMPARISON OF 2005 ACTUAL RESULTS TO APPROVED Ex p e n d it u r e Estim a tes Favourable

Note

Approved Estimates $

Actual Expenditure $

(Unfavourable) Variance $

Administration 19A 340,000 349,935 (9,935)

Land management & Mining I9B 301,000 318,327 (17,327)

Management o f Council’s affairs 19C 193,000 195,089 (2,089)

Capital expenditure 19D 59,000 36,095 22,905

Total expenditure 893,000 899,446 (6,446)

Note 19: Comparison o f 2005 Actual Results to Approved Expenditure Estimates (continued)

Reconciliation to operating expenses 2005

$

899,446 Total actual expenditure Add: Non-budget items Depreciation 70,702

Amortisation 26,190

Annual leave expenses 12,004

Other 210,207

Total operating expenses 1,218,549

Note 19A: Administration Accountancy fees Audit fees Bank charges Cleaning Consultation fees Electricity Employment costs General expenses Insurance Legal fees Motor vehicle expenses Printing and stationery Rent Repairs and maintenance Superannuation Telephone Travelling and accommodation

349,935

11,074 9,770 3,855 10,047 43,053

9,299 110,171 21,873 16,616

6,450 9,740 16,046 3,125 27,139 22,902 19,642

9,133

70 | AN1NIDILYAKWA LAND COUNCIL

Note 19: Comparison of 2005 Actual Results to Approved Expenditure Estimates (continued)

2005

$

Note 19B: Land management & mining Airfares 18,463

Mining enterprises meetings 16,964

Consulting costs 6,939

Employee costs 130,839

Mining/lease exploration 35,283

Motor vehicle costs 83,498

Sea management 12,951

Superannuation 13,390

318,327

Note 19C: Management o f council’s affairs Airfares 11,048

Chairman’s fees 60,788

Travelling and accommodation 2,867

Consultants fees 46,860

Motor vehicle costs 16,416

Sitting fees 34,739

Travelling and accommodation 19,597

Other 2,774

195,089

Note 19D: Capital expenditure Office furniture and equipment 14,067

Boat 17,273

Plant and equipment 4,755

36,095

Consistent with Note 1.1 the Land Council maintains accounts on an accrual basis, however, this budget comparison is prepared on a cash basis, consistent with the cash estimates approved by the Minister.

In June 2005, the Aboriginal Benefit Account advised the Anindilyakwa Land Council that there was an amount of $66,623; (2004 $101,821), s64(l) available at the end of the reporting period. Consistent with ABA guidelines, funds would be available for release in subsequent years. These monies have been recorded as a receivable in the Anindilyakwa Land Councils accounts. ABA funds recorded are

as follows:

ANNUAL REPORT 2004 - 2005

Note 19: Comparison of 2005 Actual Results to Approved Expenditure Estimates (continued) 2005 $

o o

Cash release received during the reporting periods: Section 64(1) 513,578 377,558

Section 64(7) 259,381 249,841

772,959 627,399

Funds receivable at 30 June: Section 64( 1) 66,623 101,821

72 | ANINIDILYAKWA LAND COUNCIL

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

PARLIAMENTARY PAPER No. 409 of 2005 ORDERED TO BE PRINTED

ISSN 0727-4181

nindilyakwa Land Council invillea Drive Alyangula NT 0885