NTSCORP LIMITED

NTSCORP LIMITED

Financial Statements For the Year Ended 30 June 2011

ABN 71 098 971 209

NTSCORP ANNUAL REPORT 10/11 – 45 NTSCORP LIMITED NTSCORP LIMITED

CONTENTS 47 Directors’ Report 49 information on Directors 53 Auditor’s Independence Declaration 54 Statement of Comprehensive Income 55 Statement of Financial Position 56 Statement of Changes in Equity 56 Statement of Cash Flows 57 Notes to the Financial Statements 72 Directors’ Declarations 73 independent Audit Report

46 – NTSCORP ANNUAL REPORT 10/11 NTSCORP LIMITED DIRECTORS’ REPORT

DIRECTORS’ REPORT Your directors present this report on the entitY for the financial year ended 30 June 2011.

Directors The names of the directors in office at any time from the start All directors have been in office since the start of the financial of the financial year to the date of this report are: year to the date of this report. Non-Member-Directors are non- voting directors. The entity’s short-term objectives are: to strengthen the Michael Bell governance of the entity; to engage with the NSW and ACT (Member-Director) (Chairperson) Aboriginal communities; to align the entity’s activities with client needs and to strengthen the financial accountability of the entity. Jim Wright The entity’s long-term objectives are: to promote social justice, economic, cultural and social independence for the Traditional (Member-Director) (Deputy Chairperson) Owners of the lands, seas and waters; to assist Traditional Owners to achieve these aims through native title and other Eddie Briggs related purposes. (Member-Director) To achieve these objectives, the entity has adopted the following strategies: the preparation and adoption of a Strategic Plan covering the period 2010–13; the further restructure of the Allan Lamb organisation to better align resources and staffing allocation with (Member-Director) client needs; and the creation of a Strategic Development Team. The principal activity of the entity during the financial year was Norm Newlin to perform statutory native title functions for native title holders and claimants, as set out in the Native Title Act 1993 (Cth) (The (Member-Director) Native Title Act).

This provision of these native title services to native title holders and claimants is central to achieving just land settlement which underpins all objectives of the organisation. (Member-Director) In NSW and the ACT, as at 30 June 2011, there were twelve (12) claimant applications represented by NTSCORP. During the Katie Wyatt reporting period, the Federal Court made three (3) determinations (Member-Director) in relation to native title. Two (2) agreements were reached in matters represented by NTSCORP and three (3) agreements were executed in matters represented by NTSCORP. One (1) Yvonne Stewart Indigenous Land Use Agreement (ILUA) was registered. (Member-Director)

CONTENTS Melissa Williams 47 Directors’ Report (Member-Director) 49 information on Directors 53 Auditor’s Independence Declaration Frank Fischl 54 Statement of Comprehensive Income (Non-Member-Director) 55 Statement of Financial Position 56 Statement of Changes in Equity Elizabeth Henderson 56 Statement of Cash Flows (Non-Member-Director) 57 Notes to the Financial Statements 72 Directors’ Declarations Parry Agius 73 independent Audit Report (Non-Member-Director)

NTSCORP ANNUAL REPORT 10/11 – 47 DIRECTORS’ REPORT NTSCORP LIMITED

48 – NTSCORP ANNUAL REPORT 10/11 NTSCORP LIMITED Directors' Report | Information on Directors

Information on Directors

Michael Bell Allan Lamb Member-Director (Chairperson) Member-Director Director since 2002. Mr Bell is a man. He is involved Director since 2002. Mr Lamb descends from the nations with several Aboriginal organisations dedicated to serving the Yuwaaliyaay and . He holds a Bachelor of Arts community, including the National Aboriginal and Torres Strait (Language and Linguistics) and is currently studying for a Islander Aged Care Reference Group. Mr Bell further assists the Graduate Diploma of Management and Administration at the community in socio-economic development, particularly in the Bachelor Institute of Indigenous Tertiary Education in the NT. He area of aged care, with the Ngunnawal Aboriginal Corporation, is a director of the Muurdi Paaki Regional Enterprise Corporation, and employment and education opportunities for Aboriginal and was an ATSIC councillor for the Muurdi Paaki region for 15 people through his involvement with Buranya Aboriginal years. Corporation – an Aboriginal land care group. Special responsibilities Special responsibilities Member of the People, Performance & Nomination Committee Chairperson of the People, Performance & Nomination Committee Norm Newlin Member-Director Jim Wright Director since 2004. Mr Newlin is a descendant of the Member-Director (Deputy Chairperson) people and is a war veteran. He has an honours degree in Director since 2002. Mr Wright is a descendant of the Anaiwan, communications from the University of Technology and has had Dunghutti, Wonarua and people. He is the current his poetry published. His involvement in Aboriginal affairs spans Chairperson/Business Manager of Youloe-Ta Indigenous almost half a century and he sits on numerous boards including Development Association Inc and Chairperson of the Yarnteen membership of the NSW/ACT Aboriginal Legal Service and Aboriginal & Torres Strait Islander Corp. Mr Wright is a past the Campbelltown City Council Aboriginal Advisory Committee. chairperson of the Sydney/Newcastle Regional Aboriginal Land His tireless efforts on behalf of the Aboriginal community were Council and served as a Councillor for the Many Rivers ATSIC recognised in 2006 when he received the Campbelltown City Regional Council for 15 years and as an ATSIC Commissioner Council Heritage Award. He is a Justice of the Peace. for one three-year term. His ATSIC portfolio included sports, youth, elders and disability. Mr Wright has a deep involvement in the Aboriginal struggle in the Hunter region. He also has a keen Matilda House interest in the development of education, employment, economic Member-Director and sporting opportunities for Aboriginal people. Director since 2005. Ms House is an Ngambri clan woman. She Special responsibilities received the prestigious 2006 ACT Citizen of the Year award. Ms Chairperson of the Audit & Risk Management Committee House is involved in various boards including Fatsil (Aboriginal and Torres Strait Islander Corporation of Languages), Country Energy, NSW/ACT Aboriginal Legal Service, Tidbinbilla Nature Reserve, Reconciliation Place and Burringiri Aboriginal Cultural Eddie Briggs Centre. She is a member of the Murrumbidgee Catchments Area Member-Director Group. Director since 2002. Mr Briggs is a director of the Kamilaroi Aboriginal Housing Corporation and is a former national Special responsibilities committee member of the Aboriginal Medical Health and Board representative on the Safety, Sustainability & Corporate Research Association and the Northern Tablelands Region Responsibility Committee Aboriginal Land Council. Mr Briggs has had a long and distinguished career in Aboriginal affairs, and has been recognised by the community for his efforts in advancing Aboriginal issues. Special responsibilities Member of the People, Performance & Nomination Committee

NTSCORP ANNUAL REPORT 10/11 – 49 Directors' Report | Information on Directors NTSCORP LIMITED

Katie Wyatt Frank Fischl Member-Director Non-Member-Director Director since 2009. Ms Wyatt is a business and communications Director since 2004. Mr Fischl is a chartered accountant with a consultant operating in Melbourne. Ms Wyatt has strong Bachelor of Commerce (UNSW) degree. He has been a fellow experience in human resources and people management. Her of the Institute of Chartered Accountants in since particular expertise is developing internal communications 1990 and is a member of their Professional Conduct Tribunal. Mr frameworks, human resource documentation, training and Fischl is a retired partner of the highly respected accounting firm development materials, tender documents and online marketing PricewaterhouseCoopers, having been with them for 32 years. He materials. She currently works as Head of People, Strategy and was formerly registered as a liquidator and company auditor. Organisation Development at Australia Post, as well as being a freelance writer. Special responsibilities Member of the Audit & Risk Management Committee Special responsibilities Member of the People, Performance & Nomination Committee Elizabeth Henderson Non-Member-Director Yvonne Stewart Director since 2009. Ms Henderson holds a Bachelor of Laws Member-Director (Hons) and a Bachelor of Science (Hons, Physics major) both Director since 2009. Ms Stewart holds an Associate Diploma of from the University of Sydney. Ms Henderson is the General Aboriginal Studies, Health Sciences from Monash University. Ms Manager of Commercial in the Technology Group of Westpac Stewart has a strong management background with Indigenous Banking Corporation. She provides commercial leadership for organisations, particularly in health and housing and strategic Westpac’s major technology sourcing projects and its strategic environmental and cultural management. Throughout her career, investment program and manages its technology procurement Ms Stewart has developed high-level skills in project management functions. She joined the Technology Group from a senior role and stakeholder and community engagement. She is Chair of in Westpac’s Counsel & Secretariat team where she assisted both the Arakwal National Parks and the Cape Byron Lighthouse strategic initiatives of the Westpac Group and provided decision Reserve Trust and a representative on the NSW Marine Parks and advisory support to the Board and the Executive Team. Advisory Committee, Environmental Trusts Grants Committee, Previously, Ms Henderson had ten years’ experience as a mergers Land Alive Trusts Committee, Byron Shire Council Reference & acquisitions and corporate lawyer at Freehills, one of Australia’s Group, the Regional Advisory Committee the Environmental largest law firms. Protection Authority. Special responsibilities Special responsibilities Member of the Audit & Risk Management Committee Member of the Audit & Risk Management Committee Parry Agius Melissa Williams Non-Member-Director Member-Director Director since 2010. Mr Agius holds a Bachelor of Arts in Director since 2010. Ms Williams is a descendant of the Aboriginal Affairs Administration, an Associate Diploma in Bundjalang people. She holds a Bachelor of Business, a Aboriginal Studies and is a Member of the Australian Institute of Graduate Certificate of Research and is currently undertaking Company Directors. study towards a PhD. She is the Director of the Indigenous Mr Agius is the Chief Executive Officer of South Australian Native Employment and Engagement Office at the University of Western Title Services (SANTS). His work has been essential in achieving Sydney (UWS), where her success in increasing employment an organised, consistent approach and a working partnership in and engagement amongst Indigenous Australians throughout native title for Aboriginal and non-Aboriginal stakeholders. He has UWS saw her office win the 2010 Australian Human Resources achieved settlement of native title that has resulted in genuine Institute Fons Trompenaars Award for Diversity and Cross economic benefits for Aboriginal people, being the primary Cultural Management. architect of legal and negotiation and complex conflict processes. Ms Williams developed her strong business acumen in the Mr Agius is the Chair of the South Australian Aboriginal Advisory telecommunications industry. At Telstra, her marketing campaigns Council, Chair of the Board of Aboriginal Enterprises in Mining, saw 15 per cent growth in the Media, Entertainment and Exploration and Energy Ltd (AEMEE) and the Presiding Member Hospitality corporate segment; while at Optus she performed on the Alinytjara Wilurara Natural Resource Management Board. research and development work that underpinned the Company’s He is the recipient of the Prime Minister’s Centenary Award 2000 successful entry into the Australian market in the 1990s. Ms for work with Indigenous people of South Australia and in 2005 Williams was on the judging panel for the Australian Information was awarded the prestigious Winston Churchill Fellowship. Industry Association’s iAwards.

50 – NTSCORP ANNUAL REPORT 10/11 NTSCORP LIMITED Directors' Report | Information on Directors

NTSCORP ANNUAL REPORT 10/11 – 51 Directors' Report | Information on Directors NTSCORP LIMITED

Members’ Guarantee The entity is incorporated under the Corporations Act 2001 and Meetings of is an entity limited by guarantee. If the entity is wound up, the constitution states that each member is required to contribute a maximum of $2 towards any outstanding obligations of the entity. Directors At 30 June 2011, the collective liability of the members was $18. During the financial year, seven meetings of directors were held. Attendances by each Dividends director were as follows: The Company being limited by guarantee and a not-for-profit organisation, and in accordance with its Constitution, does not NO. MEETING OF NO. pay dividends to its members. eligible DIRECTORS attended to attend Significant Changes in State of Affairs Michael Bell 7 7 No significant changes in the Company’s state of affairs occurred Chairperson during the financial year. Jim Wright 7 6 Deputy Chairperson Eddie Briggs After Balance Date Events 7 7 Member-Director No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly Allan Lamb affect the operations of the Company, the results of those 7 7 Member-Director operations or the state of affairs of the Company in future financial years. Norm Newlin 7 7 Member-Director Matilda House 7 7 Future Developments Member-Director The Company expects to maintain the present status and level Katie Wyatt of operations and hence there are no likely developments in the 7 3 Member-Director entity’s operations. Yvonne Stewart 7 3 Member-Director Environmental Issues Melissa Williams 7 6 The Company’s operations are not regulated by any significant Member-Director environmental regulation under a law of the Commonwealth or of Frank Fischl a state or territory. 7 7 Non-Member-Director Elizabeth Henderson 7 5 Auditor’s Independence Declaration Non-Member-Director A copy of the auditor’s independence declaration as required Parry Agius under section 307C of the Corporations Act 2001 is set out at 7 5 Non-Member-Director page 53. Signed in accordance with a resolution of the Board of Directors.

MICHAEL BELL Chairperson Dated at Sydney this 24th day of August 2011

52 – NTSCORP ANNUAL REPORT 10/11 NTSCORP LIMITED Directors' Report | Information on Directors

Auditor’s Independence Declaration Under Section 307C Of the Corporations Act 2001 I declare that, to the best of my knowledge and belief, during the year ended 30 June 2011 there have been: i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and ii) no contraventions of any applicable code of professional conduct in relation to the audit.

ECON AUDIT AND ASSURANCE SERVICES PTY LTD

GEORGE VENARDOS Director Dated at Sydney this 24th day of August 2011

NTSCORP ANNUAL REPORT 10/11 – 53 Directors' Report | Statement of Comprehensive Income NTSCORP LIMITED

Statement of Comprehensive Income For the Year Ended 30 June 2011 Note 2011 ($) 2010 ($)

Revenue 2 4,579,131 4,019,300

Employee benefits expense 3 (2,277,756) (2,220,255)

Depreciation, amortisation and impairments 3, 6 (130,841) (124,653)

Doubtful debts expense - (66,000)

Operating lease 3 (448,522) (267,776)

Gain on sale of fixed assets 7,326 19,791

Other expenses 3 (1,754,052) (1,591,264)

Deficit for the year (24,714) (230,857)

Other comprehensive income:

Net (loss)/gain on revaluation of non-current assets – –

Net (loss)/gain on revaluation of financial assets – –

Other comprehensive income for the year – –

Total COMPREHENSIVE deficit for the year (24,714) (230,857)

54 – NTSCORP ANNUAL REPORT 10/11 NTSCORP LIMITED Directors' Report | Statement of Financial Position

Statement of Financial Position as at 30 June 2011 Note 2011 ($) 2010 ($) ASSETS Current assets

Cash and cash equivalents 4 781,231 1,516,314

Trade and other receivables 5 52,621 71,017

Total current assets 833,852 1,5 87,3 31

Non-current assets

Plant and equipment 6 788,004 352,446

Other financial assets 7 123,338 198,000

Total non-current assets 911,3 42 550,446

TOTAL ASSETS 1,745,194 2,137,777

LIABILITIES Current liabilities

Trade and other payables 8 659,738 1,416,010

Borrowings 9 35,272 14,211

Short-term provisions 10,18 204,701 192,484

Total current liabilities 899,711 1,622,705

Non-current liabilities

Trade and other payables 8 587,813 198,000

Borrowings 9 - 35,272

Long-term provisions 10,18 106,244 105,660

Total non-current liabilities 694,057 338,932

TOTAL LIABILITIES 1,593,768 1,961,637

NET ASSETS 151,426 176,140

EQUITY

Retained surplus 151,426 176,140

TOTAL EQUITY 151,426 176,140

NTSCORP ANNUAL REPORT 10/11 – 55 Directors' Report | Statement of Changes in Equity & Cash Flows NTSCORP LIMITED

Statement of Changes in Equity For the Year Ended 30 June 2011 2011 Retained Surplus ($)

Balance at 1 July 2010 176,140

Net deficit for the year (24,714)

Balance at 30 June 2011 151,426

2010 Retained Surplus ($)

Balance (adjusted) at 1 July 2009 406,997

Net deficit for the year (230,857)

Balance at 30 June 2010 176,140

Statement of Cash Flows For the Year Ended 30 June 2011 Note 2011 ($) 2010 ($)

Cash flow from operating activities:

Receipts of grants and other receipts 3,840,781 4,501,511

Payments to suppliers and employees (4,042,499) (4,214,001)

Interest received 2 47,245 57,030

Net cash (used in)/generated from operating activities 15 (154,473) 344,540

Cash flows from investing activities:

Proceeds from sale of plant and equipment 66,355 61,364

Payments for purchases of plant and equipment (632,754) (9,496)

Net cash (used in)/generated from investing activities (566,399) 51,868

Cash flows from financing activities:

Repayment of borrowings (14,211) (47,519)

Cash used in financing activities (14,211) (47,519 )

Net (decrease)/increase in cash held: (735,083) 348,889

Cash and cash equivalents at beginning of the financial year 1,561,314 1,167,425

Cash and cash equivalents at the end of financial year 4 781,231 1,516,314

56 – NTSCORP ANNUAL REPORT 10/11 NTSCORP LIMITED Directors' Report | Notes to the Financial Statements

Notes to the Financial Statements For the Year Ended 30 June 2011

Donations and bequests are recognised as revenue when 1. Summary of Significant received. Accounting Policies Interest revenue is recognised using the effective interest rate method, which for floating rate financial assets is the rate The financial statements are for NTSCORP Limited (NTSCORP) inherent in the instrument. as an individual entity, incorporated and domiciled in Australia. NTSCORP is a company limited by guarantee. Revenue from rendering of service is recognised upon delivery of the service to the clients. All revenue is stated net of the amount of goods and services tax a) Basis of Preparation (GST). NTSCORP has elected to early adopt the pronouncement of AASB 1053 : Application of Tiers of Australian Accounting Standards and AASB 2010–2 : Amendments to Australian c) Income Taxes Accounting Standards arising from Reduced Disclosure NTSCORP is exempt from Income Tax under Subdivision 50-B of Requirement (RDR) to the annual reporting period beginning the Income Tax Assessment Act 1997 (Cth). 1 July 2010. The financial statements are general purpose financial statements that have been prepared in accordance with d) Plant and Equipment Australian Accounting Standards – Reduced Disclosure Plant and equipment are measured on the cost basis less Requirements of the Australian Accounting Standards Board and depreciation and impairment losses. the Corporations Act 2001 (Cth) (the Corporations Act). The carrying amount of plant and equipment is reviewed annually Australian Accounting Standards set out accounting policies that by directors to ensure it is not in excess of the recoverable the AASB has concluded would result in a financial statements amount from these assets. The recoverable amount is assessed containing relevant and reliable information about transactions, on the basis of the expected net cash flows that will be received events and conditions. Material accounting policies adopted in the from the assets’ employment and subsequent disposal. The preparation of these financial statements are presented below expected net cash flows have been discounted to their present and have been consistently applied unless otherwise stated. values in determining the recoverable amount. The financial statements have been prepared on an accruals basis and are based on historical costs modified, where applicable, by the measurement at fair value of selected non- Depreciation current assets, financial assets and financial liabilities. The depreciable amount of all fixed assets is depreciated on a straight-line basis over the assets’ useful life to the company commencing from the time the asset is held ready for use. b) Revenue Improvements are depreciated over the shorter of either the unexpired period of the lease where relevant or the estimated Grant revenue is recognised in the statement of comprehensive useful lives of the improvements. income when the entity obtains control of the grant and it is probable that the economic benefits gained from the grant will The depreciation rates used for each class of depreciable assets flow to the entity and the amount of the grant can be measured are: reliably. If conditions are attached to the grant which must be satisfied Class of Fixed Asset Depreciation Rate before it is eligible to receive the contribution, the recognition of the grant will be deferred until those conditions are satisfied. Furniture and fittings 10.00% When grant revenue is received whereby the entity incurs Motor vehicle 12.50% an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the Office equipment 20.00% grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt. Computer equipment 33.33%

NTSCORP receives non-reciprocal contributions of assets Leased motor vehicle 12.50% from the government and other parties for zero or a nominal value. These assets are recognised at fair value on the date The assets’ residual values and useful lives are reviewed and of acquisition in the statement of financial position, with a adjusted if appropriate at the end of each reporting period. corresponding amount of income recognised in the statement of comprehensive income.

NTSCORP ANNUAL REPORT 10/11 – 57 Directors' Report | Notes to the Financial Statements NTSCORP LIMITED

e) Leases Leases of fixed assets, where substantially all the risks and Loans and receivables are included in current assets, except for benefits incidental to the ownership of the asset but not the those which are not expected to mature within 12 months after legal ownership are transferred to the company, are classified as the end of the reporting period, which will be classified as non- finance leases. current assets. Finance leases are capitalised by recording an asset and a liability The Company’s receivables are classified under this category. at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are (iii) Held-to-maturity investments allocated between the reduction of the lease liability and the Held-to-maturity investments are non-derivative financial assets lease interest expense for the period. that have fixed maturities and fixed or determinable payments, Leased assets are amortised on a straight-line basis over their and it is the Company’s intention to hold these investments to estimated useful lives where it is likely that the company will maturity. They are subsequently measured at amortised cost. obtain ownership of the asset or over the term of the lease. Lease The Company has no held-to-maturity investments. payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred. Lease incentives under (iv) Available-for-sale financial assets operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term. Available-for-sale financial assets are non-derivative financial assets that are either not capable of being classified into other categories of financial assets due to their nature, or they f) fINANCIAL Instruments are designated as such by the management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments. Initial recognition and measurement Available-for-sale financial assets are included in the current Financial assets and financial liabilities are recognised when assets, except for those which are expected to be disposed of the entity becomes a party to the contractual provisions to the more than 12 months after the end of the reporting period. instrument. For financial assets, this is equivalent to the date that the company commits itself to either purchase or sell the asset The Company has no available-for-sale investment. (i.e. trade date accounting is adopted). Financial instruments are initially measured at the fair value plus transaction costs except where the instrument is classified at the fair value through profit (v) Financial liabilities or loss in which case transaction costs are expensed to profit or Non-derivative financial liabilities (excluding financial guarantees) loss immediately. are subsequently measured at amortised cost. The Company’s trade and other payables and grants received in Classification and subsequent measurement advance are classified under this category.

(i) Financial assets at fair value through surplus or deficit Fair value Fair value is determined based on current bid prices for all Financial assets are classified at fair value through surplus or quoted investments. Valuation techniques are applied to deficit when they are held for trading for the purpose of short- determine fair value for all unlisted securities, including recent term profit taking, where they are derivatives not held for hedging arm’s length transactions, reference to similar instruments and purposes, or designated as such to avoid an accounting mismatch option pricing models. or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value The book values of the Company’s available-for sale financial basis in accordance with a documented risk management or assets approximate their fair value as at the reporting date. investment strategy. Realised and unrealised gains and losses arising from changes in fair value are included in surplus or deficit. Impairment The Company has no financial assets valued at fair value through At the end of each reporting period, the entity assesses whether surplus or deficit. there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to (ii) Loans and receivables determine whether impairment has arisen. Impairment losses are recognised in the statement of comprehensive income. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost.

58 – NTSCORP ANNUAL REPORT 10/11 NTSCORP LIMITED Directors' Report | Notes to the Financial Statements

Derecognition Financial assets are derecognised where the contractual rights to yields at the reporting date on national government bonds with receipt of cash flows expires or the asset is transferred to another terms to maturity that match as closely as possible the estimated party whereby the entity no longer has any significant continuing future cash flows. involvement in the risks and benefits associated with the asset. Contributions are made by the Company to an employee Financial liabilities are derecognised where the related obligations superannuation fund and are charged as expenses when are either discharged, cancelled or expired. The difference incurred. between the carrying value of the financial liability, which is extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in surplus or deficit. j) Provisions Provisions are recognised when the Company has a legal or constructive obligation, as a result of past events, for which it is g) Impairment of Assets probable that an outflow of economic benefits will result and that outflow can be reliably measured. At each reporting date, the Company reviews the carrying values of its tangible and intangible assets to determine whether there Provisions recognised represent the best estimate of the amounts is any indication that those assets have been impaired. If such required to settle the obligation at the end of the reporting period. an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the k) Borrowing Costs asset’s carrying value over its recoverable amount is expensed to Borrowing costs directly attributable to the acquisition, the statement of comprehensive income. construction or production of assets that necessarily take a Where the future economic benefits of the asset are not primarily substantial period of time to prepare for their intended use or dependent upon the asset’s ability to generate net cash inflows sale, are added to the cost of those assets, until such time as the and when the entity would, if deprived by the asset, replace assets are substantially ready for their intended use or sale. its remaining future economic benefits, value in use is the All other borrowing costs are recognised in the statement of depreciated replacement cost of an asset. comprehensive income in the period in which they are incurred. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. l) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with h) Unexpended Grants original maturities of three months or less, and bank overdrafts. The Company receives grant monies to fund projects either for Bank overdrafts are shown within short-term borrowings in contracted periods of time or for specific projects irrespective current liabilities on the statement of financial position. of the period of time to complete those projects. It is the policy of the Company to treat grant monies as unexpended grants in the statement of financial position where the Company is m) gOODS and Services Tax (GST) contractually obliged to provide the services in a subsequent financial period to when the grant is received or in the case of a Revenues, expenses and assets are recognised net of the specific project grant where the project has not been completed amount of GST, except where the amount of GST incurred is or where there is a requirement to refund that part of a grant not recoverable from the Australian Taxation Office (ATO). In which is unexpended at financial year end. these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the statement of i) Employee Benefits financial position. Provision is made for the Company’s liability for employee Cash flows are included in the statements of cash flows on a benefits for wages and salaries including non-monetary benefits, gross basis, except for the GST component of cash flows arising leave loading, annual leave and long service leave arising from from investing and financing activities which is recoverable from, services rendered by employees to balance date. Employee or payable to, the ATO. The GST component of the financing benefits that are expected to be settled within one year have and investing activities which is recoverable from, or payable been measured at the amounts expected to be paid when the to, the ATO is classified as a part of the operating cash flows. liability is settled, plus related on-costs. Employee benefits Accordingly, investing and financing cash flows are presented in payable later than one year have been measured at present the statement of cash flows net of the GST that is recoverable value of the estimated future cash outflows to be made for those from, or payable to, the ATO. benefits. Consideration is given to expected future wage and salary levels, experience of employee departures, and periods of service. Expected future payments are discounted using market

NTSCORP ANNUAL REPORT 10/11 – 59 Directors' Report | Notes to the Financial Statements NTSCORP LIMITED

n) Comparatives 2. Revenue When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. 2011 ($) 2010 ($)

Operating grants 4,136,328 3,793,991 o) Trade and Other Payables Trade and other payables represent liability outstanding at the Other grants – new premises 150,524 – end of the reporting period for goods and services received by the Company for the reporting period which remain unpaid. Other grants 123,584 – The balance is recognised as current liability with the amounts normally paid within 30 days of recognition of the liability. Activity generated income 10,502 –

Non-activity generated income 110,164 42,998 P) Trade and Other Receivables Interest received on cash at 47,245 57,030 The Company considers accounts receivable to be fully hand and bank deposits collectible; accordingly, no allowance for doubtful debts is required. Costs recovered 784 24,923

Other revenue – 100,358 q) Critical Accounting Estimates and Judgments Total Revenue 4,579,131 4,019,300 The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Company.

Key Estimates – Impairment The directors assess impairment at each reporting date by evaluating conditions specific to the Company that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in- use calculations performed in assessing recoverable amounts incorporate a number of key estimates. There is no impairment for the year ended 30 June 2011.

Key Judgments – Provision for impairment of receivables The directors believe that the full amount of receivables is recoverable and therefore no provision for impairment of receivables has been made at 30 June 2011.

60 – NTSCORP ANNUAL REPORT 10/11 NTSCORP LIMITED Directors' Report | Notes to the Financial Statements

3. Expenses

2011 ($) 2010 ($) Depreciation, amortisation and impairments

Furniture and fittings 30,521 9,528

Motor vehicles 22,202 30,963

Office equipment 11,445 15,216

Computer equipment 34,943 51,687

Leased motor vehicle 7,730 17,259

Leasehold amortisation 24,000 –

Total depreciation and amortisation 130,841 124,653

Impairment of plant and equipment – –

Total depreciation, amortisation and impairments 130,841 124,653

Total employee benefits expense 2,277,756 2,220,255

Operating lease expense on

Premises – contractual amounts 444,621 258,405

Equipment 3,901 9,371

Total 448,522 267,776 Other expenses

Remuneration of auditor

Auditing or reviewing the current year financial report 34,184 30,722

Travel expenses 125,820 91,738

External consultants and meeting expenses 765,156 537,296

Insurance 98,613 85,308

Other 730,279 846,200

1,754,052 1,591,264

NTSCORP ANNUAL REPORT 10/11 – 61 Directors' Report | Notes to the Financial Statements NTSCORP LIMITED

4. Cash and Cash Equivalents

2011 ($) 2010 ($)

Cash on hand 300 300

Cash at bank 80,931 765,448

Short-term bank deposits 700,000 750,566

781,231 1,516,314

Cash at bank earns interest at floating rates based on daily deposit rates. Short-term deposits are made for varying periods of between one day and six months, depending on the Company’s cash requirements. These deposits earn interest at market rates. The Company’s exposure to interest rate risk for financial assets and liabilities is disclosed in Note 16.

5. Trade and Other Receivables

Note 2011 ($) 2010 ($) CURRENT

Trade receivables 90,161 66,150

Provision for impairment of receivables 5a (66,000) (66,000)

24,161 150

Employee costs in advance 1,539 262

Prepayments 25,291 24,883

Deposits 1,390 45,482

Other receivables 240 240

52,621 71,017

(a) Movement in Provision for Impairment of Receivables

Balance at the beginning of the year 66,000 10,818

Charge for the year – 66,000

Written off – (10,818)

Balance at the end of the year 66,000 66,000

The Company’s exposure to credit risk and impairment losses related to trade debtors and other receivables is disclosed in Note 16.

62 – NTSCORP ANNUAL REPORT 10/11 NTSCORP LIMITED Directors' Report | Notes to the Financial Statements

6. Plant and Equipment

2011 ($) 2010 ($) Furniture and fittings

At cost 518,009 81,414

Less accumulated depreciation (53,464) (50,829)

464,545 30,285 Motor vehicles

At cost 169,961 193,938

Less accumulated depreciation (63,494) (42,257)

106,467 151,681 Office equipment

At cost 165,077 132,940

Less accumulated depreciation (103,469) (92,280)

61,608 40,660 Computer equipment

At cost 437,241 345,004

Less accumulated depreciation (323,723) (288,780)

113,518 56,224 Leased motor vehicle

At cost 61,825 61,825

Less accumulated depreciation (19,959) (12,229)

41,866 49,596 Leasehold improvements

At cost 24,000 24,000

Less accumulated depreciation (24,000) –

– 24,000

Total plant and equipment 788,004 352,446

The leased motor vehicle is under a hire purchase agreement. The leased equipment secures the obligation under the agreement (refer Note 11).

NTSCORP ANNUAL REPORT 10/11 – 63 Directors' Report | Notes to the Financial Statements NTSCORP LIMITED

Movements in Carrying Amounts Movement in the carrying amount for each class of property, plant and equipment between the beginning and the end of the current financial year: Leased Furniture Motor Office Computer Motor Leasehold & Fittings Vehicles Equipment Equipment Vehicles Improvements Total $ $ $ $ $ $ $ 2011 Balance at the beginning 30,285 151,681 40,660 56,224 49,596 24,000 352,446 of year

Additions 485,239 22,455 32,823 92,237 – – 632,754

Disposals (20,458) (45,467) (430) – – – (66,355)

Depreciation (30,521) (22,202) (11,445) (34,943) (7,730) (24,000) (130,841)

Carrying amount 464,545 106,467 61,608 113,518 39,763 – 788,004 at the end of year

2010 Balance at the beginning 39,813 200,240 53,849 101,130 90,144 24,000 509,176 of year

Additions 2,027 6,781 689 9,497

Disposals (41,574) (41,574)

Transfers 23,978 (23,978) –

Depreciation (9,528) (30,963) (15,216) (51,687) (17,259) (124,653)

Carrying amount 30,285 151,681 40,660 56,224 49,596 24,000 352,446 at the end of year

7. Other Financial Assets

2011 2010 NON‑CURRENT $ $

Rental bond term deposit 123,338 198,000

The rental bond term deposit secures the rental bond guarantee. The Company’s exposure to interest rate risk for financial assets and liabilities is disclosed in Note 16.

64 – NTSCORP ANNUAL REPORT 10/11 NTSCORP LIMITED Directors' Report | Notes to the Financial Statements

8. Trade and Other Payables

2011 2010 CURRENT NOTE $ $ a) The Company moved to new premises during the year. Make Trade payables 128,044 132,952 good expenses will likely need to be incurred in the future to restore the premises at the time of moving out to the state Accrued employee 64,228 86,688 at the time of moving in. As at 30 June 2011, the Company’s entitlements management has no best estimate as yet of the make Sundry payables and good expenses to be incurred and accordingly no amount 326,904 204,542 accrued expenses has been recorded to or represented in these financial statements. GST payable 21,427 81,204 b) Unexpended grants refundable for 2011 represents the interest earned on the rental bond term deposit which has Provision for premises 8(a) – 75,000 been funded by the grantor (refer (d) below). make good c) Unearned capital grant represents the unamortised portion Unexpended grants 109,719 512,271 of the capital grant received for the purchase of property and equipment during the year. Unexpended grants 8(b) 9,416 323,353 d) The rental bond guarantee is secured by the rental bond refundable term deposit (refer Note 7). 659,738 1,416,010 e) The Company’s exposure to liquidity risks related to trade creditors and other payables is disclosed in Note 16. NON‑CURRENT

Unearned capital grant 8(c) 464,475 –

Rental bond guarantee 8(d) 123,338 198,000

587,813 198,000

9. Borrowings

2011 2010 Note $ $ CURRENT

Finance lease obligation 35,272 14,211

NON-CURRENT

Finance lease obligation – 35,272

Total finance lease 11(a) 35,272 49,483 obligation

Finance lease obligations are secured by the underlying leased assets.

NTSCORP ANNUAL REPORT 10/11 – 65 Directors' Report | Notes to the Financial Statements NTSCORP LIMITED

10. Provisions

Annual Leave Long Service Leave Loading Leave Total ($) ($) ($) ($) 2011 Opening balance at 144,776 23,014 130,354 298,144 1 July 2010 Additional provisions 134,645 24,124 7,836 166,605 raised during the year

Amounts used (126,175) (22,778) (4,851) (153,804)

Balance at 30 June 2011 153,246 24,360 133,339 310,945

2010 Opening balance at 237,304 41,528 203,820 482,652 1 July 2009 Additional provisions 57,355 18,894 (58,152) 18,097 raised during the year

Amounts used (149,883) (37,408) (15,314) (202,605)

Balance at 30 June 2010 144,776 23,014 130,354 298,144

2011 2010 $ $ Analysis of Total Provisions

Current 204,701 192,484

Non-current 106,244 105,660

310,945 298,144

Provision for Employee Benefits A provision has been recognised for employee entitlements relating to annual leave, leave loading and long service leave. In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based upon historical data. The measurement and recognition criteria for employee benefits have been included in Note 1 (i) to this report.

66 – NTSCORP ANNUAL REPORT 10/11 NTSCORP LIMITED Directors' Report | Notes to the Financial Statements

11. Capital and Leasing Commitments a) fINANCE Lease Commitments 2011 2010 Note $ $

Payable – minimum lease payments

– not later than 12 months 35,439 16,316

– between 12 months and 5 years – 35,439

Minimum lease payments 35,439 51,755

Less future finance charges 167 2,272

Total 9 35,272 49,483 b) Operating Lease Commitments Non-cancellable operating leases contracted for but not capitalised in the financial statements: 2011 2010 $ $

Payable minimum lease payments

– not later than 12 months 392,014 366,860

– between 12 months and 5 years 2,167,332 1,795,726

Total 2,559,346 2,162,586

12. Capital Management

The Executive Management Team of the entity in consultation with the Board of Directors control the capital of the entity to ensure that the entity can fund its operations and continue as a going concern. The entity’s debt and capital includes financial liabilities, supported by financial assets. There are no externally imposed capital requirements. The Board of Directors effectively manage the entity’s capital by assessing the entity’s financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of debt levels. There have been no changes in the strategy adopted by management to control the capital of the entity since the prior year. This strategy is to ensure that there is sufficient cash to meet trade and other payables and borrowings.

NTSCORP ANNUAL REPORT 10/11 – 67 Directors' Report | Notes to the Financial Statements NTSCORP LIMITED

13. Related parties and related party transactions

(a) Directors Directors of the Company in office during the year are disclosed in the directors’ report that accompanies these financial statements.

(b) Directors’ compensation The directors act in an honorary capacity and receive no compensation for their services. They are however compensated for travel expenses incurred by them in fulfilling their roles.

(c) Key management personnel compensations Those persons having authority for planning, directing and controlling the Company’s activities, directly or indirectly, are:

Ken Lum Manager Projects Group Natalie Rotumah Deputy Manager Projects Group and Head of Community Relations 1 July 2010–30 April 2011 Manager Operations Group from 1 May 2011 Damien Bidjara-Barnes General Counsel 1 July 2010–3 September 2010 Mishka Holt Acting Principal Solicitor 20 September 2010–31 December 2010 Principal Solicitor from 1 January 2011 Petra Fowler Manager Corporate Group 1 July 2010–24 June 2011 Hema Hariharan Manager Strategic Development Group from 21 February 2011

2011 2010 $ $

Short-term employee benefits 838,660 505,732

Long-term employee benefits 75,574 59,220

Post employment benefits 74,718 45,110

989,132 610,062

68 – NTSCORP ANNUAL REPORT 10/11 NTSCORP LIMITED Directors' Report | Notes to the Financial Statements

14. Segment Reporting

NTSCORP provides professional services to assist Aboriginal people in and the Australian Capital Territory to exercise their legal rights under the Native Title Act 1993. NTSCORP operates out of its head office in Redfern, Sydney and its regional office in Coffs Harbour.

15. Cash Flow Information

Reconciliation of cash flow from operations with net deficit: 2011 2010 $ $

Net deficit for the year (24,714) (230,857)

Non-cash flows

Depreciation, amortisation and impairments 130,841 124,653

Net gain on disposal of plant and equipment (7,326) (19,791)

Employee entitlements 12,801 (184,508)

Doubtful debts – 66,000

Changes in assets and liabilities

Decrease in trade receivables 18,396 75,810

Decrease in other assets 74,662 20,794

(Decrease)/increase in trade creditors (359,133) 492,439

(154,473) 344,540

NTSCORP ANNUAL REPORT 10/11 – 69 Directors' Report | Notes to the Financial Statements NTSCORP LIMITED

16. fINANCIAL Risk Management

The Company’s financial instruments consist mainly of deposits with banks, short-term investments and finance liabilities. The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows: 2011 2010 Note $ $ Financial Assets

Cash and cash equivalents 4 781,231 1,516,314

Trade and other receivables 5 52,622 71,017

Other financial assets 7 123,338 198,000

Financial Liabilities

Trade and other payables 8 659,737 580,386

Borrowings 9 35,272 49,483

Other financial liabilities 8 587,814 198,000

The main risks the Company is exposed to through its financial instruments are liquidity risk, credit risk, market risk and interest rate risk. a) Liquidity risk c) Market risk Liquidity risk arises from the possibility that the Company might Market risk is the risk that changes in market prices such as encounter difficulty in settling its debts or otherwise meeting its foreign exchange rates, interest rates and equity prices will affect obligations related to financial liabilities. The Company manages the Company’s income or the value of the holdings of financial liquidity risk by monitoring forecast cash flows. instruments. The Company is only exposed to fluctuations in interest rates as it does not have any financial instruments The maturity analysis of the Company’s finance lease liabilities is denominated in foreign currency or any financial instruments disclosed in Note 11. based on market values. b) Credit risk d) Interest rate risk The maximum exposure to credit risk, excluding the value of any Interest rate risk refers to the risk that the value of financial collateral or other security, at the statement of financial position instruments or cash flows associated with the instrument will date to recognised financial assets, is the carrying amount, net fluctuate due to changes in market interest rates. of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial The Company is exposed to interest rate fluctuations on its cash statements. at bank and short-term deposits. It does not have a material risk in relation to its interest bearing liabilities. The Company actively The Company does not have any material credit risk exposure monitors interest rates for cash at bank and deposits to maximise to any single receivable or group of receivables under financial interest income. instruments entered into by the Company. The following table summarises the interest rate profile of the The movement in the allowance for impairment of trade and other Company’s interest bearing financial instruments: receivables during the year is disclosed in Note 5.

70 – NTSCORP ANNUAL REPORT 10/11 NTSCORP LIMITED Directors' Report | Notes to the Financial Statements

Carrying Amounts 2011 2010 $ $ Fixed rate instruments

Borrowings 9 35,272 49,483

Variable rate instruments

Cash at bank 4 80,931 765,448

Short-term bank deposits 4 700,000 750,566

Other financial assets 7 123,338 198,000

904,269 1,714,014

Sensitivity Analysis A change of 100 basis points or one per cent in interest rates at the reporting date would, with all other variables held constant, have increased or decreased the Company’s deficit and funds by the amounts shown below. The one per cent assumption has been determined to be a reasonably possible movement in interest rates over a 12-month period based on information from various financial institutions, review of movements over the last two years, and economic forecasters’ expectations. Deficit Funds

1% increase 1% (decrease) 1% increase 1% (decrease)

Variable rate 7,810 (7,810) 7,810 (7,810)

Fair values The carrying amounts of cash and cash equivalents, receivables, payables and lease liabilities represent their net fair values, as determined in accordance with the accounting policies disclosed in Note 1 to the financial statements.

17. Economic Dependence

NTSCORP is dependent on the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) for the majority of its revenue used to operate the business. NTSCORP is funded to perform the functions of a NTRB pursuant to the Native Title Act 1993. It is dependent on the continuing provision of these funds for its existence and ability to carry out its normal activities. The funding conditions of NTSCORP are laid down by the Native title Act 1993 and subject to the General Terms and Conditions Relating to Native Title Program Funding Agreements. NTSCORP has entered into a three-year funding agreement with FaHCSIA from 1 July 2010 to 30 June 2013. At the date of this report, the Board of Directors has no reason to believe that FaHCSIA will not continue to support NTSCORP.

NTSCORP ANNUAL REPORT 10/11 – 71 Directors' Report | Directors' Declaration NTSCORP LIMITED

18. Contingent Liabilities and Contingent Assets

The Company has no contingent liabilities and assets as at the reporting date.

19. Events after the Reporting Period

No matters or circumstances have arisen since the end of the financial year which significantly or may significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in subsequent financial years.

20. Company Details

The registered office of NTSCORP is: ‘02’ U 2 44–78 Rosehill Street REDFERN NSW 2016

The directors of the Company declare that: 1) The financial statements and notes, as set out on pages 54–72 are in accordance with the Corporations Act 2001 and: a) comply with Accounting Standards, which as stated in accounting policy Note 1 to the financial statements, constitute explicit and unreserved compliance with International Financial Reporting Standards (IFRS); and b) give a true and fair view of the financial position as at 30 June 2011 and of the performance for the year ended on that date of the Company. 2) In the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

MICHAEL BELL Chairperson Dated at Sydney this 24th day of August 2011

72 – NTSCORP ANNUAL REPORT 10/11 NTSCORP LIMITED DIRECTORS' REPORT | Independent Auditor’s report to the members of ntscorp limited

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF NTSCORP LIMITED

Report on the Financial Statements Independence We have audited the accompanying financial statements of In conducting our audit, we have complied with the independence NTSCORP Limited, which comprises the Statement of Financial requirements of the Corporations Act 2001. We confirm that the Position as at 30 June 2011, the Statement of Comprehensive independence declaration required by the Corporations Act 2001, Income, Statement of Changes in Equity and Statement of Cash provided to the directors of NTSCORP Limited on 4 August 2011, Flows for the year ended on that date, a summary of significant would be in the same terms if provided to the directors as at the accounting policies, other explanatory notes and the directors’ date of this auditor’s report. declaration. Auditor’s Opinion The Responsibility of the Directors for the In our opinion, the financial statements present fairly, in all material respects, the financial position of NTSCORP Limited as Financial Statements of 30 June 2011, and its financial performance and cash flows The directors of the Company are responsible for the preparation for the year then ended in accordance with the Corporations and fair presentation of the financial statements in accordance Act 2001 and the Australian Accounting Standards (including with Australian Accounting Standards (including the Australian Australian Accounting Interpretations). Accounting Interpretations) and the Corporations Act 2001. This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of the financial statements that are free from material ECON AUDIT AND ASSURANCE SERVICES PTY LTD misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

GEORGE VENARDOS Auditor’s Responsibility Director Our responsibility is to express an opinion on the financial Dated at Sydney this 24th day of August 2011 statements based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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