contents · to come. kerry strongly believes the work wdlac is doing will help support martu...

PB | WDLAC ANNUAL REPORT 2015/2016 WDLAC ANNUAL REPORT 2015/2016 | 1

WDLAC ANNUAL REPORT 2015/2016 | 1

Introduction

Executive Reports

Board of Directors

YMAC Executive Office Support

Highlights

Organisational Chart

Financials

CONTENTS2

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7

9

10

12

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2 | WDLAC ANNUAL REPORT 2015/2016 WDLAC ANNUAL REPORT 2015/2016 | 3

INTRODUCTION

WDLAC is the Registered Native Title Body

Corporate holding Martu Title on trust for the Martu

people, by order of the Federal Court dated 17

July 2003.

WDLAC is therefore responsible for managing all

activities affecting Martu Title and operates under

the Corporations (Aboriginal and Torres Strait

Islander) Act 2006 (CATSI Act).

WDLAC is authorised to enter Agreements for and

on behalf of the Martu people, under the WDLAC

constitution, the Native Title Act 1993 and the Native

Title (Prescribed Body Corporate) Regulations 1999

(Cth).

The Martu People of Western Australia are

recognised as one of Australia’s only Native

Title groups to have exclusive use, occupation,

possession and control and interests over such a

large area of land.

The determination of Native Title, which was made

by consent of all Parties, recognises 136,000 sq

kms of the original Martu Native Title application.

Specifically the Martu hold the following Native Title

Rights and Interests :

(a) The right to possess, occupy, use and enjoy the

land and waters of the determination area to the

exclusion of all others, including:

Martu Country


• the right to live on the determination area;

• the right to make decisions about the use and

enjoyment of the determination area;

• the right to hunt and gather, and to take the

waters for the purpose of satisfying their

personal, domestic, social, cultural, religious,

spiritual, ceremonial and communal needs;

• the right to control access to, and activities

conducted by others on, the land and waters of

the determination area;

• the right to maintain and protect sites and areas

which are of significance to the common law

holders under their traditional laws and customs;

and

• the right as against any other Aboriginal group or

individual to be acknowledged as the traditional

Aboriginal owners of the determination area;

(b) the right to use the following traditionally

accessed resources:

• ochre;

• soils;

• rocks and stones; and

• flora and fauna, for the purpose of satisfying their

personal, domestic, social, cultural, religious,

spiritual, ceremonial and communal needs.

(c) the right to take, use and enjoy the flowing and

subterranean waters in accordance with their

traditional laws and customs for personal, domestic,

social, cultural, religious, spiritual, ceremonial and

communal needs, including the right to hunt on

and gather and fish from the flowing and

subterranean waters.

Martu Country


EXECUTIVE REPORTS

WDLAC has experienced a lot of change in the past

year. As we work to bring Martu people together to

speak with one voice, we must also come together

to make WDLAC work for every Martu person.

As Chairperson of WDLAC, I see how the current

Board of Directors are committed to a bright future

for the next generation of Martu people. It brings all

of us great joy to build partnerships with people who

believe in this future for WDLAC.

We will also grow stronger by building better

governance and working to protect Martu heritage

and culture. The sooner we do this, the sooner we

will be better placed to make our dreams a reality.

Our partnership with YMAC has given us access to

the people and resources we need to achieve these

goals. YMAC understands why our Country means

everything to us and why we want to protect our

heritage. With their help, we can focus our work on

making sure WDLAC stays strong going forward.

Together we will build a WDLAC that every Martu

person can be proud of.

WDLAC ChairpersonKerry Kelly

Martu culture is our future

I am a Njamal elder and Traditional Owner, co-

Chair of YMAC, and the chair of the Pilbara Regional

Committee. I have been involved with the YMAC

Board and Committee for over 12 years and I am

proud of the work we have done in this time.

During the reporting period I have sat on the WDLAC

Advisory Committee. The advisory committee

was made up of four people and we have helped

WDLAC during special administration. The advisory

group provided the special administrators with

advice and we offered suggestions about how best

to fix WDLAC’s problems. We were also involved in

reviewing WDLAC’s Rule Book.

I am Martu on my mother’s side. Since YMAC has

been appointed as Executive Office support, I have

been able to help the staff with language translations

and other cultural issues.

I am pleased that YMAC is now helping provide

executive office support to WDLAC and the Martu

people. YMAC always puts the best interest of

its members, Traditional Owners and elders first.

With over 20 years experience as a Land Council, I

believe YMAC is best placed to bring WDLAC back

to a strong financial position for the Martu people,

and return it to the hands of the community.

YMAC Co-ChairpersonDoris Eaton

Investing in WDLAC for you


During the first half of the reporting period, WDLAC

has been under the control of special administrators,

Palisade Business Consulting. Special administration

is a measure under the Corporations (Aboriginal and

Torres Strait Islander) Act 2006 (CATSI) which all

Aboriginal Corporations must adhere to. Palisade

Business Consulting was appointed by the Registrar

and during the first half of the reporting period, took

control and oversaw the running of WDLAC while, at

the same time, helping it to fix its problems.

Before the WDLAC went into special administration,

the Corporation faced financial troubles, poor

governance and a poor organisational structure.

It is always the aim of a special administration to

restore the corporation to a good financial and

organisational position. Jack James and Paula

Cowan from Palisades Business Consulting’s

appointment ended on 26 February 2016.

Yamatji Marlpa Aboriginal Corporation (YMAC)

has been appointed to provide financial and legal

Executive Office support for WDLAC and the Martu

people, following a tender process. All proposals

were thoroughly vetted and members were updated

during an information meeting on 23 February 2016.

YMAC was appointed on 28 February 2016 for a

three year period. Under YMAC’s business unit

Knowledge Partnerships, YMAC will be supporting

WDLAC through the following services:

• CEO services: I have been appointed as the

acting CEO role. My role is to enable WDLAC to

implement strong and efficient operations, and

assist the Martu people to be able to

self-govern;

• Company Secretary Simon Hawkins (YMAC’s

CEO) will be providing governance support

to WDLAC;

• CFO services: YMAC will support WDLAC to

develop sound financial strategies, enabling

the Martu people to better understand their

financial position;

• Legal Services: YMAC will provide legal services

to WDLAC;

• Knowledge Partnerships: will provide other

services for WDLAC including developing

a Strategic Plan which will guide WDLAC’s

direction for the next five years.

During this reporting period, WDLAC has been

through a process of change management, meaning

that WDLAC has redirected the use of resources

(including vehicles and staff), business processes

(development of a Strategic Plan), financials and

governance (including policies, procedures and the

Rule Book) which will significantly reshape the way

WDLAC looks and operates.

YMAC is confident that WDLAC will be in a strong

and sustainable position following our three year

appointment. As a Native Title Representative Body,

YMAC has solid financials and governance, and as

Acting CEO I will ensure that WDLC has the tools to

avoid repeating past mistakes.

I am pleased to be able to work closely with the

Board of Directors, the Martu people and WDLAC by

restoring good governance and self determination.

Acting CEO, WDLACMichael Meegan

WDLAC’s future is bright


WDLAC Contact PersonCEO of YMACSimon Hawkins

YMAC’s investment in WDLAC will benefit all Martu people

YMAC is strongly placed to offer these services

to WDLAC. As an organisation we have had 13

consecutive clear financial audits, we have strong

and successful governance in place, we are lead

by 12 Aboriginal Board of Directors and most

importantly we have loyal and highly skilled staff

who are prepared to assist in restoring WDLAC to a

successful position for the Martu people.

Our tenure with WDLAC is for three years, and during

this time, YMAC’s aim is to provide the Martu people

with the tools needed toward self governing. YMAC

is here to provide a strong structure and support

system which will enable WDLAC to better serve

their members.

In some ways, the groups YMAC represents share

a connection to the Martu people as many of the

groups YMAC represent border with the Western

Desert including:

• Nyangumarta

• Ngarlawangga

• Nyiyaparli

• Njamal

Marlpa and the Martu people also face the same

issues when it comes to the protection of Aboriginal

heritage under the Aboriginal Heritage Act

amendment bill.

During the reporting period, there has been no

movement on this Bill by Parliament. YMAC,

alongside with WDLAC, will continue to strongly

advocate on behalf of all Traditional Owners for

procedural fairness and strong consultation with

Aboriginal people.

In the time WDLAC has been under special

administration, Palisades Business Consulting has

improved the Corporation. Members have been

kept up-to-date through regular newsletters where

details of agreements, amendments to the Rule

Book and a clear picture of WDLAC’s money story.

Under YMAC’s guidance, WDLAC will continue to

keep members up-to-date on a regular basis.

As the CEO of YMAC and Contact Person for

WDLAC, I am confident our expertise will not only

help WDLAC become a strong and financially

stable PBC, but that the Martu people will be able to

continue with the strong governance and structure

we will leave WDLAC with.


BOARD OF DIRECTORS

Kerry is from Ngayunanalku and speaks Kartujarra. He wants to make sure that WDLAC

represents all Martu people and invests in the future of Martu communities for generations

to come. Kerry strongly believes the work WDLAC is doing will help support Martu

communities, and bring them together so they can act as one.

Kerry Kelly Chairperson

James Berringal Deputy Chairperson

Kennedy Finlay Director

James is from Ngurrara-Walmajarri and speaks Walakaja. He has been with WDLAC

for over a year now, and was part of the advisory committee assisting the special

administrators. Desmond is all about Martu land, culture, and identity, and strives to do

whatever he can to protect the connection between Martu families and their Country.

Desmond is from Karlamyingurrara and speaks Warnman. He wants to see WDLAC

prosper and work for all Martu families. James is excited at the opportunity to work with

partners who share his vision for a strong WDLAC working for Martu people.

Kennedy is a Pilakaja elder who speaks Manyjilyjarra. He is a husband, father and

grandfather who enjoys hunting, fishing and being on his Country. He strongly believes

that law is his training ground, and it is an important responsibility to teach and share

wisdom and knowledge with the next generation of Martu.

Desmond Taylor Director


BOARD OF DIRECTORS

Kenny Thomas Director

Lindsay Robinson Director

Giovanni Fardin Independent Director

Kenny is a Pitjikarli man who speaks Nyangumarta. He is on the WDLAC Board because

he is proudly Martu and believes he has a responsibility to all Martu to grow WDLAC and

partner with organisations who want the Martu people to succeed.

Lindsay is a Manyjiyjarra man from Rirrakaja. He is proud to be working in the best interests

of all Martu people.

Giovanni is an independent director with WDLAC, and has a background in mining law. He

has developed a close connection with the Martu people during his time with the Central

Desert Native Title Services, and is passionate about bringing information to Martu people

and working to build a strong governance model for WDLAC.

Member of the WDLAC Board of Directors Meetings Attended Eligible MeetingsKerry Kelly (Chairperson) 6 6

James Berringal (Deputy Chairperson) 5 6

Desmond Taylor 6 6

Lindsay Robinson 2 6

Kennedy Finlay 6 6

Kenny Thomas 3 6

Giovanni Fardin 6 6


YMAC EXECUTIVE OFFICE SUPPORT

YMAC is assisting WDLAC with Executive Office Support until February 2019. During this time, YMAC executive

officers will be supplying experience and guidance to WDLAC. These officers are:

Simon Hawkins YMAC Chief Executive Officer

Simon is responsible for the overall management of YMAC. He ensures that the decisions

of the Board are implemented, the organisation observes its legal responsibilities, and

that it meets its obligations under agreements entered into with other parties.

Simon is acting as the Company Secretary and Contact Person for WDLAC.

Michael Meegan YMAC Principal Legal Officer

Michael is responsible for managing the legal operations of YMAC in accordance with the

Native Title Act (NTA). He advises on matters related to the NTA and associated legislation,

and coordinates relationships between YMAC and native title claimants.

Michael is the Acting Chief Executive Officer for WDLAC.

Nicholas is responsible for overseeing the financial, corporate governance, IT and HR areas

of YMAC. He provides timely and accurate information to the CEO, Board and Committees

for strategic decision making and to ensure efficient use of resources.

Nicholas provides a similar level of financial management and reporting for WDLAC.

Nicholas Kimber YMAC Chief Financial Officer

Ruth has been with YMAC for 5 years and currently holds the position of Senior Human

Resources Advisor. With a 15 year background of HR management, Ruth oversees all

Human Resources policies and employee management practices at YMAC.

Ruth is providing a similar level of professional HR services to WDLAC.

Ruth Lawless YMAC Senior Human Resources Advisor


HIGHLIGHTS

WDLAC BACK IN MARTU HANDS

Following the end of Special Administration,

a new board of directors were appointed at a

meeting held in Perth on 26 February 2016.

During the six months of administration, Jack

James and Paula Cowan from Palisade Business

Consulting have improved WDLAC’s standard

of governance, helped fix its financial problems

and ensured that the corporation’s rule book

accurately reflects WDLAC’s goals and

objectives moving forward.

With WDLAC now in a good financial position,

the Executive Office support is being looked

after by Yamatji Marlpa Aboriginal Corporation

(YMAC). YMAC was appointed after a tender

process for the next three years.

The special administrators achieved the following:

• reduced WDLAC’s operating costs and returned

it to profitability. In the 2013–14 financial year

WDLAC incurred a $1.8 million loss followed

by a $2.4 million loss in 2014–15. In a significant

turnaround WDLAC recorded an operating

surplus of $348,044 in the first half of the 2015–16

financial year while under special administration;

• re-established the trust of the Traditional Owners

and Martu communities in WDLAC and rebuilt

relationships with WDLAC’s major stakeholders;

• reviewed WDLAC’s operations and disposed of

unprofitable business ventures;

• introduced new management and service

arrangements for WDLAC. From 1 July 2012 to 30

June 2015 WDLAC incurred costs of $4,721,145

for a CEO, chief financial officer and legal services.

The special administrators have engaged the

services of a native title representative body,

YMAC, to provide management, administration,

accounting and legal services to WDLAC at one

tenth of the cost of the previous arrangements;

• redirected savings from the reduction in

administration and management costs to

undertake core PBC work;

• appointed a smaller board of new directors,

including an independent director.

NEWCREST ILUA

The Indigenous Land Use Agreement (ILUA)

with Newcrest was lodged with the National

Native Title Tribunal in December 2015. It was

registered in mid-February 2016.

Martu Country


problems. The first visit to Martu Country by

occupational therapy students, speech therapy

students and supervisors from Curtin University’s

Interprofessional Practice Team was in May 2016.

The teams spent five weeks in the Jigalong and

Punmu communities working with the children.

The Feilman Foundation has donated $650,000

through the Curtin Foundation to fund this 15-

week program. Opportunities may be available to

continue the funding of the program with State and/

or Commonwealth support.

The current funding will see the team from Curtin

working in the Martu communities over three, five

week periods in 2016.

REVIEW OF WDLAC RULE BOOK

During the Special Administration, the WDLAC

Rule Book was reviewed by ORIC.

The Rule Book was reviewed and important

changes were made, including embedding

improved reporting to members and directors,

and appointing a new and smaller board of

directors, including in a first for WDLAC, an

independent director.

The new Rule Book was registered with ORIC on

26 February 2016.

Martu Country

This ILUA will provide the Martu people with $18

million which will go to the Myer Trust. The Myer

Trust will work with the 6 member Trust advisory

committee to set up key projects, including

funeral support, law and culture, education,

health, and other porjects which benefit the

Martu people. The ILUA will also help support

WDLAC’s operations and provide employment

and business opportunities into the future.

The ILUA had been under negotiation for eight

years. Newcrest and WDLAC held a ceremonial

signing at Telfer on 23 February 2016 to celebrate

the signing and registration of the ILUA.

The project area is an area within a 60 kilometre

radius around the Telfer Gold Mine, except for

the Karlamilyi National Park. It also includes the

Telfer Access Road and the gas pipeline to the

mine site.

JIJI PROGRAM

The Jiji Program is a two-year partnership between

WDLAC and Curtin University which began in May

2016. The program focuses on therapeutic help

and early childhood development in speech and

language, and there will be specific and directed

programs for children exhibiting behavioural


ORGANISATIONAL CHART

Board of DirectorsWDLAC

Project Officer x 1.5(Casual positions)

CEOWDLAC

Senior Project Officer

WDLAC

Receptionist /Admin Officer

WDLAC

SecondmentPosition x 1.5

Finance OfficerWDLAC


FINANCIALS

Statement by Directors

Declaration of Independence

Audit Report

Statement of Comprehensive Income

Statement of Financial Position

Statement of Cash Flows

Statement of Changes in Equity

Notes to the Financial Statements

14

15

16

18

19

20

21

22


STATEMENT BY DIRECTORS


DECLARATION OF INDEPENDENCE

To The Board of Directors

Auditor’s Independence Declaration under Section 339-50 of the Corporations (Aboriginal and Torres Straits Islander) Act 2006

In accordance with section 339-50 of the Corporations (Aboriginal and Torres Strait Islander) Act 2006, I am pleased to provide the following declaration of Independence to the Board of Directors of Western Desert Lands Aboriginal Corporation.

As lead audit director for the audit of the financial statements of Western Desert Lands Aboriginal Corporation for the financial year ended 30 June 2016, I declare that to the best of my knowledge and belief, there have been no contraventions of:

the auditor independence requirements of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 in relation to the audit; and

any applicable code of professional conduct in relation to the audit.

Yours faithfully

BENTLEYS DOUG BELL CA

Chartered Accountants Director

Dated at Perth this 20th day of September 2016

16 | WDLAC ANNUAL REPORT 2015/2016

AUDIT REPORT

Independent Auditor's Report To the Members of Western Desert Lands Aboriginal Corporation

We have audited the accompanying financial report of Western Desert Lands Aboriginal Corporation (“the Entity”) and Controlled Entities (“the Consolidated Entity”), which comprises the statement of financial position as at 30 June 2016, the statement of comprehensive income and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the statement by the Directors and Chief Executive Officer of the Consolidated Entity, comprising the Corporation and the entities it controlled at the year’s end or from time to time during the financial year.

Directors Responsibility for the Financial Report

The Directors and Chief Executive Officer are responsible for the preparation and fair presentation of the financial report in accordance with the Australian Accounting Standards and the Corporations (Aboriginal and Torres Straits Islander) Act 2006 (“CATSIA”), and for such internal control as the directors determine is necessary to enable the preparation of the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We have conducted our audit in accordance with Australian Auditing Standards. Those 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 report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the association’s preparation and fair presentation of the financial report 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 association’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 report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion.

Independent Auditor’s Report To the Members of Western Desert Lands Aboriginal Corporation (Continued)

Basis for Qualified Opinion

Investment in subsidiary company

We were unable to obtain sufficient appropriate audit evidence in relation to the balances in the Desert Food Security Pty Ltd (“Subsidiary company”) as at 30 June 2016 and its results of operations and cash flows for the year ended 30 June 2016. This includes the loss on disposal of food store business of $410,385 in the subsidiary company for the year ended 30 June 2016. Consequently, we were unable to determine whether any adjustments to these amounts were necessary. Refer to Note 22 for the balances and results of the subsidiary company for the year ended 30 June 2016. The balances, results and cashflows of the subsidiary company have been consolidated into the consolidated statement of financial position as at 30 June 2016, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year ended 30 June 2016.

Opening Balances

As disclosed in the 2015 audit report, we were unable to obtain sufficient appropriate audit evidence in relation to the Consolidated Entity to enable us to gather all information and explanations we require in order to form an opinion on the balances as at 30 June 2014. Accordingly, we were unable to determine whether adjustments might have been necessary in respect to opening balances as at 1 July 2014 and therefore as the opening balances enter into the determination of the results of operations and cash flows for the year ended 30 June 2015, we have been unable to determine whether any adjustments to the results of operations, cash flows and opening accumulated losses for the year ended 30 June 2015 might be necessary as a result.

Qualified Auditor’s Opinion

In our opinion, except for the possible effects of the matters described in the Basis for Qualified Opinion paragraphs, the financial report of Western Desert Lands Aboriginal Corporation presents fairly; in all material respects, the Consolidated Entity’s financial position and its financial performance for the year then ended in accordance with Australian Accounting Standards and the Finance Minister’s Orders made under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (“CATSIA”).

BENTLEYS DOUG BELL CA

Chartered Accountants Director

Dated at Perth this 20th day of September 2016


STATEMENT OF COMPREHENSIVE INCOME

Western Desert Lands Aboriginal Corporation Notes to and forming part of the Financial Statements as at 30 June 2016

Western Desert Lands Aboriginal Corporation 3 2016 Annual Report to Members

Statement of Comprehensive Income for the year ended 30 June 2016 CONSOLIDATED ENTITY WDLAC NOTE 2016 2015 2016 2015

$ $ $ $ REVENUE Revenue from Services 4 2,305,263 2,845,456 2,210,351 2,372,722 Interest 2,886 3,359 2,877 2,386 Profit/Loss from Sale of Asset 28,703 10,356 - Other Income 4 524,496 529,903 461,935 491,841 Revenue from ordinary activities 2,861,348 3,378,718 2,685,519 2,866,949 EXPENSES

Contractors and consultants 5c 384,915 768,349 324,788 873,863 Motor vehicles 96,212 257,514 62,549 184,432 Travel and meetings 229,769 379,099 211,019 357,349 Rent 172,995 150,699 172,995 181,112 Ancillary costs, fees and provisions 185,408 451,572 124,427 411,802 Depreciation 5b 100,732 178,953 87,725 153,786 Employees 5a 1,167,821 2,363,647 1,024,285 1,781,387 Finance charges 5d 11,479 6,503 3,254 6,109 Other expenses 5e 196,685 465,402 393,588 517,507 Unrealised losses on options 1,224,784 432,426 (492,731) - Expenses from ordinary activities 3,770,800 5,454,163 1,911,899 4,467,347 Loss for the year from continuing operations (909,452) (2,075,445) 773,620 (1,600,398)

Discontinued operations Loss for the year from discontinued operation 21 (431,689) (329,222) - - Loss for the year attributable to the members of the Corporations (1,341,141) (2,404,667) 773,620 (1,600,398) Total comprehensive income for the year attributable to the members of the Corporations (1,341,141) (2,404,667) 773,620 (1,600,398)



Statement of Financial Position as at 30 June 2016 CONSOLIDATED ENTITY WDLAC

NOTE 2016 2015 2016 2015 $ $ $ $ CURRENT ASSETS Cash and other equivalents 6 1,358,475 209,120 1,328,457 64,639 Trade and other receivables 7 304,825 341,681 275,724 251,578 Inventory - 53,641 - - Other 8 76,601 121,737 76,601 119,614 TOTAL CURRENT ASSETS 1,739,901 726,179 1,680,782 435,831 NON-CURRENT ASSETS Plant and equipment 9 332,102 1,068,112 332,102 495,730 Intangibles - 60,000 - - Other 10 259,791 1,484,574 259,791 - TOTAL NON-CURRENT ASSETS 591,893 2,612,686 591,893 495,730 TOTAL ASSETS 2,331,794 3,338,865 2,272,675 931,561

CURRENT LIABILITIES Trade and other payables 11 156,464 595,210 164,427 490,058 Provisions 12a 64,040 44,299 64,040 37,150 Deferred Revenue 14 676,409 175,510 676,409 175,510 Other 13 397,984 121,470 473,454 93,780 TOTAL CURRENT LIABILITIES 1,294,897 936,489 1,378,330 796,498 NON- CURRENT LIABILITIES Provisions 12b - 24,338 - 24,338 TOTAL NON-CURRENT LIABILITIES - 24,338 - 24,338 TOTAL LIABILITIES 1,294,897 960,827 1,378,330 820,836 NET ASSETS 1,036,897 2,378,038 884,345 110,725 MEMBERS FUNDS Retained Earnings 15 1,036,897 2,378,038 884,345 110,725 TOTAL EQUITY 1,036,897 2,378,038 884,345 110,725 The above statement should be read in conjunction with the accompanying notes.


STATEMENT OF FINANCIAL POSITION



Statement of Financial Position as at 30 June 2016 CONSOLIDATED ENTITY WDLAC

NOTE 2016 2015 2016 2015 $ $ $ $ CURRENT ASSETS Cash and other equivalents 6 1,358,475 209,120 1,328,457 64,639 Trade and other receivables 7 304,825 341,681 275,724 251,578 Inventory - 53,641 - - Other 8 76,601 121,737 76,601 119,614 TOTAL CURRENT ASSETS 1,739,901 726,179 1,680,782 435,831 NON-CURRENT ASSETS Plant and equipment 9 332,102 1,068,112 332,102 495,730 Intangibles - 60,000 - - Other 10 259,791 1,484,574 259,791 - TOTAL NON-CURRENT ASSETS 591,893 2,612,686 591,893 495,730 TOTAL ASSETS 2,331,794 3,338,865 2,272,675 931,561

CURRENT LIABILITIES Trade and other payables 11 156,464 595,210 164,427 490,058 Provisions 12a 64,040 44,299 64,040 37,150 Deferred Revenue 14 676,409 175,510 676,409 175,510 Other 13 397,984 121,470 473,454 93,780 TOTAL CURRENT LIABILITIES 1,294,897 936,489 1,378,330 796,498 NON- CURRENT LIABILITIES Provisions 12b - 24,338 - 24,338 TOTAL NON-CURRENT LIABILITIES - 24,338 - 24,338 TOTAL LIABILITIES 1,294,897 960,827 1,378,330 820,836 NET ASSETS 1,036,897 2,378,038 884,345 110,725 MEMBERS FUNDS Retained Earnings 15 1,036,897 2,378,038 884,345 110,725 TOTAL EQUITY 1,036,897 2,378,038 884,345 110,725 The above statement should be read in conjunction with the accompanying notes.


STATEMENT OF CASH FLOWS



Statement of Cash Flows for the year ended 30 June 2016

CONSOLIDATED ENTITY WDLAC

NOTE 2016 2015 2016 2015 $ $ $ $

Cash flows from operating activities Receipts from customers 3,260,661 4,634,171 2,687,104 3,518,788 Grants & Other receipts 524,496 212,497 461,935 80,289 Money received on behalf of trust 116,533 - 191,533 - Payments to suppliers, employees and others (3,116,617) (5,694,303) (2,175,284) (3,983,736)

Interest paid and bank fees (14,193) (16,466)

(3,254) (6,106)

Net cash from operating activities 16a 770,880 (864,101) 1,162,034 (390,765) Cash flows from investing activities Interest received 2,886 (2,374) 2,878 (2,352) Payments for property, plant and equipment - (632,746) - (41,824)

Proceeds from disposal of food store business 184,902 -

- -

Proceeds from sale of Plant & Equipment 190,687 24,503

98,906 24,503

Net cash used in investing activities 378,475 (610,617) 101,784 (19,673) Net increase in cash and cash equivalents 1,149,355 (1,474,718) 1,263,818 (410,438) Cash and cash equivalents at the beginning of the financial year 209,120 1,683,838 64,639 475,077

Cash and cash equivalents at the end of the financial year 16b 1,358,475 209,120 1,328,457 64,639



Statement of Changes in Equity for the year ended 30 June 2016

CONSOLIDATED

ENTITY WDLAC $ $

Analysis of Equity Opening Balance as at 1 July 2014 4,782,705 1,711,123 Total Comprehensive (deficit) / surplus for the year (2,404,667) (1,600,398) Balance as at 30 June 2015 2,378,038 110,725 Opening Balance as at 1 July 2015 2,378,038 110,725 Total Comprehensive (deficit) / surplus for the year (1,341,141) 773,620 Balance as at 30 June 2016 1,036,897 884,345


STATEMENT OF CHANGES IN EQUITY



Statement of Changes in Equity for the year ended 30 June 2016

CONSOLIDATED

ENTITY WDLAC $ $

Analysis of Equity Opening Balance as at 1 July 2014 4,782,705 1,711,123 Total Comprehensive (deficit) / surplus for the year (2,404,667) (1,600,398) Balance as at 30 June 2015 2,378,038 110,725 Opening Balance as at 1 July 2015 2,378,038 110,725 Total Comprehensive (deficit) / surplus for the year (1,341,141) 773,620 Balance as at 30 June 2016 1,036,897 884,345


NOTES TO THE FINANCIAL STATEMENTS Western Desert Lands Aboriginal Corporation Notes to and forming part of the Financial Statements as at 30 June 2016


This financial report covers Western Desert Lands Aboriginal Corporation (‘WDLAC’) and its controlled entities (‘the Corporation’ or ‘Consolidated Entity’) for the year ended 30 June 2016. WDLAC is an entity incorporated in Australia under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (‘CATSI Act’). The nature of the operations and the principal activities of the Consolidated Entity are described in the Directors’ Report. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. a. Basis of Preparation of the Financial Statements These general purpose financial statements are required by Clause 1(b) of Schedule 1 to the Commonwealth Authorities and Companies act general purpose financial statements. These statements have been prepared in accordance with Australian Accounting Standards which include Australian Equivalents to International Financial Reporting Standards (IFRS) and interpretations issued by the Australian Accounting Standards Board ('AASB') that apply for the reporting period. Historical cost convention The financial statements have been prepared on an accrual basis under the historical cost convention except for certain non-current assets and financial instruments that are measured at revalued amounts or fair values, as explained in the account policies below. Assets and liabilities are recognised in the Statement of Financial Position when and only when it is probable that future economic benefits will flow to the entity or a future sacrifice of economic benefit will be required and the amounts of the assets or liabilities can be reliably measured. Revenues and expenses are recognised in the Statement of Comprehensive Income when and only when the flow, consumption or loss of economic benefit has occurred and can be reliably measured. Functional currency Companies in the consolidated entity have to determine their functional currencies based on the primary economic environment in which each entity operates. In order to do that management has to analyse several factors, including which currency mainly influences sales prices of product sold by the entity, which currency influences the main expenses of providing services, in which currency the entity has received financing, and in which currency it keeps its receipts from operating activities. For WDLAC and its controlled subsidiaries management have determined that the Australian dollar is the functional currency. Going concern These Financial Statements have been prepared using a going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business. b. New, Revised or Amended Accounting Standards and Interpretations The Consolidated Entity has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the Consolidated Entity during the financial year.

Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.




New Accounting Standards and Interpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Consolidated Entity for the annual reporting period ended 30 June 2016. The Consolidated Entity's assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the Consolidated Entity, are set out below.

AASB 9 Financial Instruments This standard is applicable to annual reporting periods beginning on or after 1 January 2018. The standard replaces all previous versions of AASB 9 and completes the project to replace IAS 39 'Financial Instruments: Recognition and Measurement'.

AASB 9 introduces new classification and measurement models for financial assets. A financial asset shall be measured at amortised cost, if it is held within a business model whose objective is to hold assets in order to collect contractual cash flows, which arise on specified dates and solely principal and interest. All other financial instrument assets are to be classified and measured at fair value through profit or loss unless the entity makes an irrevocable election on initial recognition to present gains and losses on equity instruments (that are not held-for-trading) in other comprehensive income ('OCI').

For financial liabilities, the standard requires the portion of the change in fair value that relates to the entity's own credit risk to be presented in OCI (unless it would create an accounting mismatch). New simpler hedge accounting requirements are intended to more closely align the accounting treatment with the risk management activities of the entity. New impairment requirements will use an 'expected credit loss' ('ECL') model to recognise an allowance. Impairment will be measured under a 12-month ECL method unless the credit risk on a financial instrument has increased significantly since initial recognition in which case the lifetime ECL method is adopted. The standard introduces additional new disclosures.

The Consolidated Entity will adopt this standard from 1 July 2018 but the impact of its adoption is yet to be assessed by the Consolidated Entity.

AASB 15 Revenue from Contracts with Customers This standard is applicable to annual reporting periods beginning on or after 1 January 2018. The standard provides a single standard for revenue recognition. The core principle of the standard is that an entity will recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

The standard will require: contracts (either written, verbal or implied) to be identified, together with the separate performance obligations within the contract; determine the transaction price, adjusted for the time value of money excluding credit risk; allocation of the transaction price to the separate performance obligations on a basis of relative stand-alone selling price of each distinct good or service, or estimation approach if no distinct observable prices exist; and recognition of revenue when each performance obligation is satisfied. Credit risk will be presented separately as an expense rather than adjusted to revenue. For goods, the performance obligation would be satisfied when the customer obtains control of the goods. For services, the performance obligation is satisfied when the service has been provided, typically for promises to transfer services to customers. For performance obligations satisfied over time, an entity would select an appropriate measure of progress to determine how much revenue should be recognised as the performance obligation is satisfied.

Contracts with customers will be presented in an entity's statement of financial position as a contract liability, a contract asset, or a receivable, depending on the relationship between the entity's performance and the customer's payment. Sufficient quantitative and qualitative disclosure is required to enable users to understand the contracts with customers; the significant judgements made in applying the guidance to those contracts; and




any assets recognised from the costs to obtain or fulfil a contract with a customer.

The Consolidated Entity will adopt this standard from 1 July 2018 but the impact of its adoption is yet to be assessed by the Consolidated Entity.

AASB 16 Leases This standard is applicable to annual reporting periods beginning on or after 1 January 2019. The standard replaces AASB 117 ‘Leases’ and for lessees will eliminate the classifications of operating leases and finance leases. Subject to exceptions, a ‘right-of-use’ asset will be capitalised in the statement of financial position, measured as the present value of the unavoidable future lease payments to be made over the lease term. The exceptions relate to short-term leases of 12 months or less and leases of low-value assets (such as personal computers and small office furniture) where an accounting policy choice exists whereby either a ‘right-of-use’ asset is recognised or lease payments are expensed to profit or loss as incurred. A liability corresponding to the capitalised lease will also be recognised, adjusted for lease prepayments, lease incentives received, initial direct costs incurred and an estimate of any future restoration, removal or dismantling costs.

Straight-line operating lease expense recognition will be replaced with a depreciation charge for the leased asset (included in operating costs) and an interest expense on the recognised lease liability (included in finance costs). In the earlier periods of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under AASB 117. However, EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) results will be improved as the operating expense is replaced by interest expense and depreciation in profit or loss under AASB 16. For classification within the statement of cash flows, the lease payments will be separated into both a principal (financing activities) and interest (either operating or financing activities) component. For lessor accounting, the standard does not substantially change how a lessor accounts for leases.

The Consolidated Entity will adopt this standard from 1 July 2019 but the impact of its adoption is yet to be assessed by the Consolidated Entity. c. Revenue Recognition Revenue from service Revenue from the rendering of a service is recognised by reference to the stage of completion of the contract at the reporting date. The revenue is recognised when: · The amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and · The probable economic benefits with the transaction will flow to the entity. Revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided. Estimates of revenues or extent of progress toward completion are revised if circumstances change. Any resulting increases or decreases in estimated revenues are reflected in the statement of comprehensive income in the period in which the circumstances that give rise to the revision become known. Revenue from sale of goods Revenue from the sale of goods is recognised when the entity sells a product to the customer. Interest Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the relevant asset. Government grants



Revenue from grants received from Government funding organizations is recognised when received, and is deferred as a liability to the extent that unspent grants are required to be repaid to the funding organization. d. Cash and Cash Equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Cash is recognised at its nominal amount. e. Trade receivables Trade and other receivables are initially stated at fair value and subsequently measured at amortised cost, less impairment losses. Trade receivables comprise amounts due from customers for metal sales in the ordinary course of business. Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for impairment is established when there is objective evidence that the Consolidated Entity will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial.

f. Other Financial Assets The Consolidated Entity classifies its financial assets in the following categories: financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments and available-for-sale financial assets. Financial assets are derecognised when the contractual rights to the cash flows from the financial assets expire or the asset is transferred to another Entity. In the case of a transfer to another Entity, it is necessary that the risks and rewards of ownership are also transferred. Financial liabilities are derecognised when the obligation under the contract is discharged or cancelled or expired. (i) Other financial assets Other financial assets comprising principally marketable equity securities are non-derivatives that are either designated in this category or not included in any of the above categories. Gains and losses arising from changes in fair value included in the Statement of Comprehensive Income. g. Trade and other payables Trade and other payables are initially stated at fair value and subsequently measured at amortised cost. The amounts are unsecured and usually paid within 90 days of recognition. h. Inventories Inventories are stated at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business less any estimated selling costs. Cost includes those costs incurred in bringing each component of inventory to its present location and condition. i. Contingencies Contingent liabilities are defined as possible obligations resulting from past events whose existence depends on future events, obligations that are not recognised because it is not probable that they will lead to an outflow of resources, or obligations that cannot be measured with sufficient reliability. Contingent liabilities are not recognised in the statement of financial position other than as part of a business combination, but are disclosed in the notes to the financial statements, with the exception of contingent liabilities where the probability of the liability occurring is remote. j. Property, Plant and Equipment All property, plant and equipment are stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.




Revenue from grants received from Government funding organizations is recognised when received, and is deferred as a liability to the extent that unspent grants are required to be repaid to the funding organization. d. Cash and Cash Equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Cash is recognised at its nominal amount. e. Trade receivables Trade and other receivables are initially stated at fair value and subsequently measured at amortised cost, less impairment losses. Trade receivables comprise amounts due from customers for metal sales in the ordinary course of business. Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for impairment is established when there is objective evidence that the Consolidated Entity will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial.

f. Other Financial Assets The Consolidated Entity classifies its financial assets in the following categories: financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments and available-for-sale financial assets. Financial assets are derecognised when the contractual rights to the cash flows from the financial assets expire or the asset is transferred to another Entity. In the case of a transfer to another Entity, it is necessary that the risks and rewards of ownership are also transferred. Financial liabilities are derecognised when the obligation under the contract is discharged or cancelled or expired. (i) Other financial assets Other financial assets comprising principally marketable equity securities are non-derivatives that are either designated in this category or not included in any of the above categories. Gains and losses arising from changes in fair value included in the Statement of Comprehensive Income. g. Trade and other payables Trade and other payables are initially stated at fair value and subsequently measured at amortised cost. The amounts are unsecured and usually paid within 90 days of recognition. h. Inventories Inventories are stated at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business less any estimated selling costs. Cost includes those costs incurred in bringing each component of inventory to its present location and condition. i. Contingencies Contingent liabilities are defined as possible obligations resulting from past events whose existence depends on future events, obligations that are not recognised because it is not probable that they will lead to an outflow of resources, or obligations that cannot be measured with sufficient reliability. Contingent liabilities are not recognised in the statement of financial position other than as part of a business combination, but are disclosed in the notes to the financial statements, with the exception of contingent liabilities where the probability of the liability occurring is remote. j. Property, Plant and Equipment All property, plant and equipment are stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.




Depreciation is calculated on a diminishing value basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives. Depreciation rates (useful lives) and methods are reviewed at each reporting date and necessary adjustments are recognised in the current and future reporting. The depreciation rates applying to each class of depreciable asset are as follows: - Computer Equipment 20% - Leasehold

Improvements 20%

- Motor vehicles 22% - Household Items 15% - Office equipment 20% The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the incorporated association. Gains and losses between the carrying amount and the disposal proceeds are recognised in other income/expense in the Statement of Comprehensive Income. k. Impairment Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, and at the end of each financial year. When indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying value. Recoverable amount is the higher of an asset’s fair value less costs to sell and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit. l. Employee Benefits Provision is made for the Consolidated Entity’s liability for employee benefits and termination indemnities arising from services rendered by employees to balance date. (i)Short-term benefits Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liability for accumulated annual leave is recognized in the provision for employee benefits. All other short term employee benefit obligations are presented as payables. (ii) Long-term employee benefit obligations The liability for long service leave and annual leave which is not expected to be settled within 12 months after the end of the period in which the employees render the related service is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period. Liabilities for long service leave and annual leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore recognized in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period. The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least 12 months after the reporting period, regardless of when the actual settlement is expected to occur. (iii) Defined contribution superannuation expense Contributions are made to the employee contribution superannuation fund of their choice and are expensed in the period in which they are incurred.



m. Grants Grants are recognised at their fair value where there is a reasonable assurance that the grant will be received and all attached conditions will be complied with. n. Taxation WDLAC and its controlled entities are exempt from all forms of taxation except fringe benefits tax and the goods and service tax (GST). Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position. The cash flow statement discloses the GST component of investing and financing activities as operating cash flows. o. Intangible assets (i) Goodwill Goodwill arises on the acquisition of subsidiaries, associates and jointly controlled entities. Goodwill represents the excess of the cost of acquisition over the consolidated entity’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the acquiree. When the excess is negative it is recognised immediately in profit or loss. Goodwill is not amortised and is subsequently measured at cost less accumulated impairment losses. p. Principles of consolidation (i) Subsidiaries The consolidated financial report comprises the financial statements of the Company and its controlled entities. The Consolidated Entity controls an entity when the Consolidated Entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. All inter-company balances and transactions between entities in the consolidated entity, including any unrealised profits or losses, have been eliminated on consolidation. Where a subsidiary enters or leaves the consolidated entity during the year, its operating results are included or excluded from the date control was obtained or until the date control ceased. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with those applied by the parent entity. Refer to Note 17.

q. Fair Value of Assets The Consolidated Entity measures some of its assets at fair value on either a recurring or non-recurring basis, depending on the requirements of the applicable Accounting Standard. Fair value is the price the Consolidated Entity would receive to sell an in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at the measurement date. As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability. The fair values of assets that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. To the extent possible, market information is extracted from either the principal market for the asset (i.e. the market with the greatest volume and level of activity for the asset) or, in the absence of such a market, the most advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the receipts from the sale of the asset, after taking into account transaction costs and transport costs). For non-financial assets, the fair value measurement also takes into account a market participant's ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use. Valuation techniques








In the absence of an active market for an identical asset, the Consolidated Entity selects and uses one or more valuation techniques to measure the fair value of the asset, The Consolidated Entity selects a valuation technique that is appropriate in the circumstances and for which sufficient data is available to measure fair value. The availability of sufficient and relevant data primarily depends on the specific characteristics of the asset being measured. The valuation techniques selected by the Consolidated Entity are consistent with one or more of the following valuation approaches:

Market approach: valuation techniques that use prices and other relevant information generated by market transactions for identical or similar assets or liabilities.

Income approach: valuation techniques that convert estimated future cash flows or income and expenses into a single discounted present value.

Cost approach: valuation techniques that reflect the current replacement cost of an asset at its current service capacity.

Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing the asset, including assumptions about risks. When selecting a valuation technique, the Consolidated Entity gives priority to those techniques that maximise the use of observable inputs and minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly available information on actual transactions) and reflect the assumptions that buyers and sellers would generally use when pricing the asset are considered observable, whereas inputs for which market data is not available and therefore are developed using the best information available about such assumptions are considered unobservable. Fair value hierarchy AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which categorises fair value measurements into one of three possible levels based on the lowest level that an input that is significant to the measurement can be categorised into as follows: Level 1 Measurements based on quoted prices (unadjusted) in active markets for identical assets that the entity can access at the measurement date. Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset, either directly or indirectly. Level 2 Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset, either directly or indirectly. Level 3 Measurements based on unobservable inputs for the asset. The fair values of assets that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. If all significant inputs required to measure fair value are observable, the asset is included in Level 2. If one or more significant inputs are not based on observable market data, the asset is included in Level 3. The Consolidated Entity would change the categorisation within the fair value hierarchy only if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or vice versa; or if significant inputs that were previously unobservable (Level 3) became observable (Level 2) or vice versa. When a change in the categorisation occurs, the Consolidated Entity recognises transfers between levels of the fair value hierarchy (i.e. transfers into and out of each level of the fair value hierarchy) on the date the event or change in circumstances occurred. r. Comparatives

Where necessary, the prior year comparatives have been amended to facilitate comparison with the current year presentation of financial information.

2. CRITICAL ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGEMENTS The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to












assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events; management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year and judgments, apart from those involving estimations, which have the most significant effect on the amounts recognised in the financial statements, are (i) Financial assets at Fair value: As at balance date, the Consolidated Entity holds 4,500,000 'Share Options exercisable at a price of $0.50 per option and an expiration date of 28 February 2017, after which time, if not exercised they will lapse. In February 2016 MMS transferred the shares to WDLAC as part of the winding down process. The fair value of the options was calculated at 30 June 2016 using the Black-Scholes Option Pricing Model. The Black-Scholes model inputs for the options held at 30 June 2016 are set out below:

Valuation date Expiry date

Exercise price

Number of options

Share price at valuation

Risk free rate

Share price volatility

30/06/2016 28/02/2017 $0.50 4,500,000 $0.43 1.59% 56.46% To provide an indication about the reliability of the inputs used in determining fair value, the Consolidated Entity has considered the classification into three levels prescribed under the accounting standards and has determined that the financial assets at FV as at the end of the current financial year amounted to $259,791 and comparative financial year amounted to $1,484,574 are Level 2 financial instruments. There were no transfers between levels for recurring fair value measurements during the year. (ii) Subsidiaries Consolidation: Martu United Pty Ltd which is a wholly owned subsidiary of WDLAC (refer to note 17) is also a trustee of the following:

Martu United Direct Benefit Trust Martu United Charitable Trust,

which were established in December 2013. The Directors have determined that WDLAC does not meet the requirements of control as per AASB 10 in regards to the Trusts. The Trusts are not controlled by WDLAC given WDLAC is not a beneficiary of the Trusts and only beneficiaries have the right to variable returns generated by the Trusts and the power over these entities to affect that return.



4. REVENUE CONSOLIDATED ENTITY WDLAC 2016 2015 2016 2015 $ $ $ $

Revenue from services Operational Support 849,107 1,172,272 849,107 1,116,695 Operational Income 1,456,156 1,673,184 1,361,244 1,256,027

2,305,263 2,845,456 2,210,351 2,372,722

Other revenue Other Grants - 4,996 - 4,996 Other revenue 524,496 524,907 461,935 486,845

524,496 529,903 461,935 491,841

5. EXPENSES CONSOLIDATED ENTITY WDLAC 2016 2015 2016 2015 $ $ $ $

Operating Surplus includes the following specific expenses: Note 5a. Employee Benefits Wages and Salaries 1,097,054 2,323,562 954,749 1,592,465 Leave and other entitlements (4,597) (127,649) 2,553 44,242 Superannuation 75,364 167,734 66,983 144,680 Total Employee expenses 1,167,821 2,363,647 1,024,285 1,781,387 Note 5b. Depreciation Computer Equipment 20,658 13,581 8,979 10,662 Leasehold improvements 11,338 24,972 11,338 14,172 Motor vehicles 49,566 117,249 48,238 105,801 Household Items & Artwork 9,257 10,890 9,257 10,890 Office equipment 9,913 12,261 9,913 12,261 Total Depreciation 100,732 178,953 87,725 153,786

Note 5c: Contractors and Consultants Legal 111,109 340,729 111,109 340,729 IT 20,361 49,991 19,968 49,026 Accounting and Auditing 30,751 19,000 25,751 19,000 Chief Financial Officer 290,914 - 292,400 Other 222,694 67,715 167,960 172,708 Total Contractors and Consultants 384,915 768,349 324,788 873,863 Note 5d: Finance Costs Interest and bank charges 11,479 6,503 3,254 6,109 Total Finance charges 11,479 6,503 3,254 6,109

Note 5e: Other Expenses Bad and doubtful debts 144,407 308,809 137,047 366,494 Community support - 87,672 - 82,092 Net loss on disposal of assets - 9,276 - 9,276 Impairment of assets 52,278 59,645 256,541 59,645













assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events; management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year and judgments, apart from those involving estimations, which have the most significant effect on the amounts recognised in the financial statements, are (i) Financial assets at Fair value: As at balance date, the Consolidated Entity holds 4,500,000 'Share Options exercisable at a price of $0.50 per option and an expiration date of 28 February 2017, after which time, if not exercised they will lapse. In February 2016 MMS transferred the shares to WDLAC as part of the winding down process. The fair value of the options was calculated at 30 June 2016 using the Black-Scholes Option Pricing Model. The Black-Scholes model inputs for the options held at 30 June 2016 are set out below:

Valuation date Expiry date

Exercise price

Number of options

Share price at valuation

Risk free rate

Share price volatility

30/06/2016 28/02/2017 $0.50 4,500,000 $0.43 1.59% 56.46% To provide an indication about the reliability of the inputs used in determining fair value, the Consolidated Entity has considered the classification into three levels prescribed under the accounting standards and has determined that the financial assets at FV as at the end of the current financial year amounted to $259,791 and comparative financial year amounted to $1,484,574 are Level 2 financial instruments. There were no transfers between levels for recurring fair value measurements during the year. (ii) Subsidiaries Consolidation: Martu United Pty Ltd which is a wholly owned subsidiary of WDLAC (refer to note 17) is also a trustee of the following:

Martu United Direct Benefit Trust Martu United Charitable Trust,

which were established in December 2013. The Directors have determined that WDLAC does not meet the requirements of control as per AASB 10 in regards to the Trusts. The Trusts are not controlled by WDLAC given WDLAC is not a beneficiary of the Trusts and only beneficiaries have the right to variable returns generated by the Trusts and the power over these entities to affect that return.





2,305,263 2,845,456 2,210,351 2,372,722


524,496 529,903 461,935 491,841










2,305,263 2,845,456 2,210,351 2,372,722


524,496 529,903 461,935 491,841







Total Other Expenses 196,685 465,402 393,588 517,507

6. CASH ON HAND CONSOLIDATED ENTITY WDLAC

2016 2015 2016 2015 $ $ $ $

Cash on deposit - WDLAC 1,328,457 64,639 1,328,457 64,639 Cash on deposit - MMS 15,588 8,088 - - Cash on deposit - DFS 14,430 43,563 - - Cash on deposit - MALAC - 89,412 - - Cash on Hand - DFS - 3,418 - - Total Cash and Cash Equivalent 1,358,475 209,120 1,328,457 64,639 Cash on deposit earns interest at the rates determined by the bank.

7. TRADE AND OTHER RECEIVABLES CONSOLIDATED ENTITY WDLAC

2016 2015 2016 2015

$ $ $ $ Trade Receivables 694,307 571,911 721,034 572,483 Provision for doubtful debt (399,437) (262,399) (455,265) (323,226) Total trade receivables 294,870 309,512 265,769 249,257 Other debtors 9,631 - 9,631 - Martu debtors 11,848 16,365 11,848 13,845 Provision for doubtful debt- Martu debtors (11,524) (11,524) (11,524) (11,524) GST receivable - 27,328 - - Total other receivables 9,955 32,169 9,955 2,321 TOTAL TRADE AND OTHER RECEIVABLES 304,825 341,681 275,724 251,578 All receivables are current assets. Trade receivables are aged as follows: Due by: Less than 30 days 131,368 135,004 131,369 167,940 30 to 60 days 95,666 112,301 95,666 104,685 60 to 90 days 14,512 186,476 14,512 185,295 More than 90 days 452,761 138,130 479,487 114,563 Total Trade receivables (gross) 694,307 571,911 721,034 572,483

Provision for Doubtful debts is aged as follows: Due by: Less than 30 days - (3,959) - (64,786) 30 to 60 days - (2,000) - (2,000) 60 to 90 days - (185,295) - (185,295) More than 90 days (399,437) (71,145) (455,265) (71,145) Total Provision for doubtful debts (399,437) (262,399) (455,265) (323,226)





2016 2015 2016 2015 $ $ $ $



2016 2015 2016 2015





8. OTHER CURRENT ASSETS CONSOLIDATED ENTITY WDLAC 2016 2015 2016 2015 $ $ $ $

Prepayments 10,662 50,776 10,662 48,675 Security Bond 65,939 70,961 65,939 70,939 Total Other Debtors 76,601 121,737 76,601 119,614

9. NON-CURRENT ASSETS – PROPERTY, PLANT $ EQUIPMENT CONSOLIDATED ENTITY WDLAC

2016 2015 2016 2015 $ $ $ $

Land & Buildings - 376,420 - -

- 376,420 - -

Office Equipment – at cost 112,567 129,784

112,567 129,783

Less: Accumulated depreciation (77,117) (80,213) (77,117) (80,213) 35,450 49,571 35,450 49,570

Computer Equipment – at cost 79,878 125,533 79,878 101,412 Less: Accumulated depreciation (48,556) (68,956) (48,556) (56,516)

31,322 56,577 31,322 44,896

Motor vehicles - at cost 330,958 624,141 330,958 555,110 Less: Accumulated depreciation (163,123) (300,696) (163,123) (272,245)

167,835 323,445 167,835 282,865

Household items & Art - at cost 118,184 118,184 118,184 118,184 Less: Accumulated depreciation (65,729) (56,473) (65,729) (56,473)

52,455 61,711 52,455 61,711

Leasehold improvements - at cost 158,480 314,090 158,480 159,590 Less: Accumulated depreciation (113,440) (113,702) (113,440) (102,902)

45,040 200,388 45,040 56,688

Total Property, Plant & Equipment 332,102 1,068,112 332,102 495,730






2016 2015 2016 2015 $ $ $ $



2016 2015 2016 2015








2016 2015 2016 2015 $ $ $ $


- 376,420 - -


112,567 129,783



31,322 56,577 31,322 44,896


167,835 323,445 167,835 282,865


52,455 61,711 52,455 61,711


45,040 200,388 45,040 56,688








2016 2015 2016 2015 $ $ $ $


- 376,420 - -


112,567 129,783



31,322 56,577 31,322 44,896


167,835 323,445 167,835 282,865


52,455 61,711 52,455 61,711


45,040 200,388 45,040 56,688



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19

10. FINANCIAL ASSETS CONSOLIDATED ENTITY WDLAC

2016 2015 2016 2015 $ $ $ $

Share Options 259,791 1,484,574 259,791 - Total Share Options 259,791 1,484,574 259,791 - The consolidated entity holds 4,500,000 Share Options exercisable at a price of $0.50 per option and an expiration date of 28 February 2017, after which time, if not exercised they will lapse. As at balance date, these options have not yet been exercised. These options were valued as at 30 June 2016 under the Black Sholes model. Refer to note (2)(i) for inputs used in the valuation.

11. TRADE AND OTHER PAYABLES CONSOLIDATED ENTITY WDLAC

2016 2015 2016 2015 $ $ $ $

Trade payables 52,351 505,862 52,351 330,542 Other payables - related parties - - 75,612 Total trade payables 52,351 505,862 52,351 406,154 GST payable 104,113 89,348 112,076 83,904 Total other payables 104,113 89,348 112,076 83,904 Total 156,464 595,210 164,427 490,058 All trade payables are current liabilities.

12. PROVISIONS CONSOLIDATED ENTITY WDLAC

2016 2015 2016 2015 $ $ $ $

Note 12a: Provisions Current Employee Benefits 64,040 44,299 64,040 37,150 Total Provisions - Current 64,040 44,299 64,040 37,150

Note 12b: Provisions Non-Current Employee Benefits - 24,338 - 24,338 Total Provisions - Non-Current - 24,338 - 24,338


20

13. OTHER CREDITORS CONSOLIDATED ENTITY WDLAC

2016 2015 2016 2015 $ $ $ $

Employee accruals payable 189,597 31,758 189,499 10,072 Other accrued expenses 22,000 19,000 17,488 19,000 Money held in trust 167,828 51,295 242,828 51,295 Other payables 18,559 19,417 23,639 13,413 Total other creditors 397,984 121,470 473,454 93,780

14. DEFERRED REVENUE CONSOLIDATED ENTITY WDLAC

2016 2015 2016 2015 $ $ $ $

Arising from customers (i) 676,409 175,510 676,409 175,510 Total Deferred Revenue 676,409 175,510 676,409 175,510 (i) The deferred revenue arises from billing invoices in relation to tenement agreements issued in the current year but related to more than one financial year. 15. RETAINED EARNINGS ENTIRE ENTITY WDLAC

2016 2015 2016 2015 $ $ $ $

Analysis of Equity Retained surpluses at the beginning of the financial year 2,378,038 4,782,705 110,725 1,711,123 Operating (deficit) / surplus for the year (1,341,141) (2,404,667) 773,620 (1,600,398) Retained surpluses at the end of the financial year 1,036,897 2,378,038 884,345 110,725



20

13. OTHER CREDITORS CONSOLIDATED ENTITY WDLAC

2016 2015 2016 2015 $ $ $ $

Employee accruals payable 189,597 31,758 189,499 10,072 Other accrued expenses 22,000 19,000 17,488 19,000 Money held in trust 167,828 51,295 242,828 51,295 Other payables 18,559 19,417 23,639 13,413 Total other creditors 397,984 121,470 473,454 93,780

14. DEFERRED REVENUE CONSOLIDATED ENTITY WDLAC

2016 2015 2016 2015 $ $ $ $

Arising from customers (i) 676,409 175,510 676,409 175,510 Total Deferred Revenue 676,409 175,510 676,409 175,510 (i) The deferred revenue arises from billing invoices in relation to tenement agreements issued in the current year but related to more than one financial year. 15. RETAINED EARNINGS ENTIRE ENTITY WDLAC

2016 2015 2016 2015 $ $ $ $

Analysis of Equity Retained surpluses at the beginning of the financial year 2,378,038 4,782,705 110,725 1,711,123 Operating (deficit) / surplus for the year (1,341,141) (2,404,667) 773,620 (1,600,398) Retained surpluses at the end of the financial year 1,036,897 2,378,038 884,345 110,725



21

16. CASH FLOW RECONCILIATION Note 16a: Reconciliation of operating surplus to net cash from Operating Activities CONSOLIDATED ENTITY WDLAC

2016 2015 2016 2015 $ $ $ $

Operating Profit/(Loss) after Income Tax (1,341,141) (2,404,667) 773,620 (1,600,398) Less: Interest Received (investing income) (2,887) 2,374 (2,876) 2,353 Less: Listed options received - - (516,332) - Add: Depreciation and Amortisation 106,720 178,953 87,725 153,786 Less: Gain on sale of assets (28,704) 9,274 (10,357) 9,274 Add: Loss in disposal of business 410,385 - - - Add: Impairment - 59,645 - 59,645 Gain/ (loss) on changes in fair value 1,224,784 432,426 256,541 - Changes in assets and liabilities (Increase)/Decrease in debtors 9,528 921,019 (24,146) 982,583 (Increase)/Decrease inventory - (53,641) - - (Increase)/Decrease in prepayments 40,114 (23,236) 38,013 (23,863) (Increase)/Decrease in other debtors 5,022 (2,375) 5,000 (2,351) Increase/(Decrease) in trade payables (453,511) 378,881 (357,459) 315,405 Increase/(Decrease) in deferred revenue 500,899 50,510 500,899 50,510 Increase/(Decrease) in accruals 141,423 (112,520) 179,582 (97,536) Increase/(Decrease) in provisions 13,962 (128,157) 21,111 (126,286) Increase/(Decrease) in GST 27,752 (76,937) 19,180 (18,236) Increase/(Decrease) in money held in trust 116,534 (95,650) 191,533 (95,651) 770,880 (864,101) 1,162,034 (390,765) Note 16b: Reconciliation of cash Reconciliation of cash at the end of the financial year to the related items in the financial report is as follows: CONSOLIDATED ENTITY WDLAC

2016 2015 2016 2015 $ $ $ $

Total cash and cash equivalents 1,358,475 209,120 1,328,457 64,639 1,358,475 209,120 1,328,457 64,639


22

17. FINANCIAL RISK MANAGEMENT This note explains the Consolidated Entity’s exposure to financial risks and how these risks could affect the Consolidated Entity’s future financial performance. As a result of the nature of the Consolidated Entity’s business and internal policies dealing with the management of financial risk, the exposure to market, credit and liquidity is considered to be low. Market risk

a) Foreign currency risk The Consolidated Entity is not exposed to any significant foreign currency risk. As at 30 June 2016 the Consolidated Entity does not have any financial assets or liability nominated in a currency different from AUD.

b) Price risk The entity is exposed to equity price risk arising from equity investments. Equity investments are held for strategic rather than trading purposes. The entity does not actively trade these financial instruments. The sensitivity analyses below have been determined based on the exposure to equity price risks at the end of the period. If equity prices had been 5% higher/lower:

- Other gains or losses for the year ended 30 June 2016 would increase/ (decrease) by $46,041 (2015: increase/ (decrease) by $131,971 as a result of changes in fair value investments.

c) Interest risk rate

Floating Interest Rate Non-Interest Bearing Total Weighted Average

2016 2015 2016 2015 2016 2015 2016 2015 $ $ $ $ $ $ % %

Financial Assets

Cash and Cash equivalents

1,358,475 209,120

- -

1,358,475 209,120 2.6 1.3

Trade and other receivables

- -

304,825 341,681

304,825 341,681 - -

Security bond - - 65,939 70,961 65,939 70,961 - -

Share option - - 259,791 1,484,574 259,791 1,484,574 - -

Total 1,358,475 209,120 630,555 1,897,216 1,989,030 2,106,336

Financial Liabilities Trade and other payables

- -

52,351 505,862

52,351 505,862 - -

GST payable - - 104,113 89,348 104,113 89,348 - -

Money held in trust - - 167,828 51,295 167,828 51,295 - -

Total - - 324,292 646,505 324,292 646,505



23

17. FINANCIAL RISK MANAGEMENT (continued) Liquidity risk Vigilant liquidity risk management requires the Consolidated Entity to maintain sufficient liquid assets (mainly cash and cash equivalents) to be able to pay debts as and when they become due and payable. The Consolidated Entity manage liquidity risk by maintaining adequate cash reserves by continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities. Credit Risk Credit risk is the risk that counterparty fails to discharge an obligation to the Consolidated Entity. The Consolidated Entity is exposed only to the risk associated in terms of cash on deposit, receivables with customers and amounts owing from Martu people. The Consolidated Entity’s maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at the reporting date, as summarised below: CONSOLIDATED ENTITY

2016 2015

$ $ Cash on deposit 1,358,475 209,120 Trade and other receivables 294,870 309,512 Martu debtors 324 4,841 Other debtor 9,631 - Total 1,663,300 523,473

Impairment Trade receivables Individual receivables which are known to be uncollectible are written off by reducing the carrying amount directly. The other receivables are assessed collectively to determine whether there is objective evidence that impairment has been incurred but not yet been identified or if doubts exist in relation to the receivable recoverability. For these receivables the estimated losses are recognised in a separate provision. Receivables for which an impairment provision was recognised are written off against the provision when there is no expectation of recovering additional cash. Impairment losses are recognised in profit or loss within other expenses. 18. RELATED PARTY TRANSACTIONS

a) Key management personnel Any person(s) having authority and responsibility for planning, directing and controlling the activities of the Consolidated Entity, Directly or Indirectly, including any director is considered key management personnel. Executive managers The number of executives of the Consolidated Entity included in these figures are shown below in the relevant remuneration bands: Executive Managers' Remuneration 2016 2015 The number of key management personnel 1 2 Short Term salary -(a) $23,000 $779,535

(a) The CFO was engaged through a consultancy agreement terminated in July 2015.


24

Executive remuneration includes salary, superannuation and associated costs paid to officers employed for the full financial year. Yamatji Marlpa Aboriginal Corporation was engaged to perform Executive office, Finance and Legal services to WDLAC for a two-year term.

Directors The number of Directors of the Corporation included in these figures are shown below in the relevant remuneration bands: 2016 2015 $ Nil - $149,999 24 19 $150,000 - $224,999 1 $ 225,000 - $239,000 Total number of directors of the Corporation 24 20 $ $ Directors Remuneration 30,392 507,265 Expenses 2,119 47,179 32,511 554,444

Loans to and other transactions with Directors and key management personnel: Loans to Directors - 12,968

b) Subsidiaries

The consolidated financial statements incorporate the assets, liabilities and results of the parent entity; Western Desert Lands Aboriginal Corporation, and the subsidiaries listed as follows: Name of Entity Equity Holding 2016 2015 Martu Mining Services Limited 100% 100% Desert Food Security Pty Ltd 100% 100% Martu Aboriginal Law and Culture Aboriginal Corporation 100% 100% Below is summarised the financial information for Martu Mining Services Limited and Martu Aboriginal Law and Culture Aboriginal Corporation. Refer to Note 21 for the financial information of Desert Food Security Pty Ltd.

Subsidiaries (continued)



24

Executive remuneration includes salary, superannuation and associated costs paid to officers employed for the full financial year. Yamatji Marlpa Aboriginal Corporation was engaged to perform Executive office, Finance and Legal services to WDLAC for a two-year term.

Directors The number of Directors of the Corporation included in these figures are shown below in the relevant remuneration bands: 2016 2015 $ Nil - $149,999 24 19 $150,000 - $224,999 1 $ 225,000 - $239,000 Total number of directors of the Corporation 24 20 $ $ Directors Remuneration 30,392 507,265 Expenses 2,119 47,179 32,511 554,444

Loans to and other transactions with Directors and key management personnel: Loans to Directors - 12,968

b) Subsidiaries

The consolidated financial statements incorporate the assets, liabilities and results of the parent entity; Western Desert Lands Aboriginal Corporation, and the subsidiaries listed as follows: Name of Entity Equity Holding 2016 2015 Martu Mining Services Limited 100% 100% Desert Food Security Pty Ltd 100% 100% Martu Aboriginal Law and Culture Aboriginal Corporation 100% 100% Below is summarised the financial information for Martu Mining Services Limited and Martu Aboriginal Law and Culture Aboriginal Corporation. Refer to Note 21 for the financial information of Desert Food Security Pty Ltd.

Subsidiaries (continued)



26

20. AVERAGE STAFFING LEVELS 2016 2015

The average staffing levels for the entity during the year were: 4 9

21. DISCONTINUED OPERATIONS 21.1 On 30 January 2016 the Company entered into a sale agreement to dispose of Nullagine Minimart and the building at 1 Walker Street, Nullagine owned by Desert Food Security Pty Ltd. The proceeds of sale was substantially less than the carrying amount of the related net assets. Details of the assets and liabilities disposed of, and calculation of the profit or loss on disposal, are disclosed in note 22. 21.2 Analysis of profit for the year from discontinued operations The combined results of the discontinued operations included in the loss for the year are set out below. The comparative profit and cash flows from discontinued operations have been re-presented to include those operations classified as discontinued in the current year. 2016 2015

$ $ Profit for the year from discontinued operations Revenue 444,971 556,261 Expenses (466,275) (885,483) Loss before tax (21,304) (329,222) Gain/(loss) on disposal of operation (410,385) -

Loss for the year attributable to the members of the Company (431,689) (329,222) Cash flows from discontinued operations Net cash outflows for operating activities (217,456) (195,954) Net cash inflow from investing activities 184,902 (584,512) Net cash outflow from financing activities - 823,114 Net cash outflows (32,554) 42,648


27

22. DISPOSAL OF DESERT FOOD STORE 2016

$ Consideration received Consideration received in cash and cash equivalents 184,902 Total consideration received 184,902 Analysis of assets and liabilities of discontinued operations 2016

$ Current assets Inventories 53,641

Non-current assets Property, plant and equipment 431,646 Goodwill 110,000 Net assets disposed of 595,287

Loss on disposal of business 2016

$ Consideration received 184,902 Net assets disposed of (595,287) Loss on disposal (410,385) Subsequent to the disposal the balance sheet consisted of cash of $14,430 and creditors of $14,432 23. COMMITMENTS The Consolidated Entity has entered into operating leases on certain properties relating to rental of offices. All leases include a clause to enable upward revision of rental charge on periodic basis according to prevailing market conditions and consumer price-index. Future minimum rental expenses payable under the non-cancellable operating leases as at 30 June are as follows:

CONSOLIDATED ENTITY WDLAC 2016 2015 2016 2015

$ $ $ $

Within one year

433,214 172,055

433,214 172,055 Later than one year but no later than 5 years 653,115 862,372 653,115 862,372 In more than 5 years - 264,064 - 264,064 Total Commitments 1,086,329 1,291,491 1,086,329 1,291,491

24. CONTINGENT LIABILITIES Following their appointment the Special Administrators terminated the consultancy agreement between the Corporation and Wright Corporate Services Pty Ltd. The consultancy agreement was for a term of four years and was due to end 31 March 2018. Subsequent to the termination, the Special Administrators received correspondence from legal advisers for Wright Corporate Services Pty Ltd claiming the consultancy agreement had been wrongfully terminated and as such Wright Corporate Services Pty Ltd would reserve their rights to claim damages against the Corporation. The CATSI Act provides that proceedings may not be commenced against the Corporation until the end of the Special Administration and as such this has been disclosed as a contingent liability. The estimated amount of potential liability has been calculated as $183,000 which represents six months’ worth of fees under the agreement. There are no other known contingent liabilities as at 30 June 2016.


25

Martu Mining Services Limited

Martu Aboriginal Law and Culture Aboriginal

Corporation

2016 2015 2016 2015

$ $ $ $ Current assets 30,020 59,485 86,192 102,959 Non-current assets - 1,792,821 - 625,612 Total assets 30,020 1,852,306 86,192 728,571

Current liabilities 29,950 43,715 (13,436) 1,460 Total liabilities 29,950 43,715 (13,436) 1,460

Net assets 70 1,808,591 99,628 727,111

Martu Mining Services Limited

Martu Aboriginal Law and

Culture Aboriginal Corporation

2016 2015 2016 2015 $ $ $ $ Accumulated profits 70 1,808,591 99,628 727,111 Total equity 70 1,808,591 99,628 727,111

Revenue from services 350,043 508,054 - 117,127 Revenue from ordinary activities 350,043 508,054 0 117,127 Employee expenses (143,536) (275,475) - (14,385) Administrative expenses (104,262) (314,684) (77,483) (98,920) Other expenses (1,910,765) (457,593) (550,000) - Loss from continuing operations before income tax (1,808,520) (539,698) (627,483) 3,822 Income tax expense - - - - Loss from continuing operations after income tax (1,808,520) (539,698) (627,483) 3,822

Other comprehensive income Other comprehensive income for the year - - - - Total comprehensive loss for the year (1,808,520) (539,698) (627,483) 3,822

19. AUDITOR REMUNERATION CONSOLIDATED ENTITY WDLAC 2016 2015 2016 2015 $ $ $ $

The fair value of services provided was: Audit of the financial statements 34,110 19,000 25,751 19,000



26

20. AVERAGE STAFFING LEVELS 2016 2015

The average staffing levels for the entity during the year were: 4 9

21. DISCONTINUED OPERATIONS 21.1 On 30 January 2016 the Company entered into a sale agreement to dispose of Nullagine Minimart and the building at 1 Walker Street, Nullagine owned by Desert Food Security Pty Ltd. The proceeds of sale was substantially less than the carrying amount of the related net assets. Details of the assets and liabilities disposed of, and calculation of the profit or loss on disposal, are disclosed in note 22. 21.2 Analysis of profit for the year from discontinued operations The combined results of the discontinued operations included in the loss for the year are set out below. The comparative profit and cash flows from discontinued operations have been re-presented to include those operations classified as discontinued in the current year. 2016 2015

$ $ Profit for the year from discontinued operations Revenue 444,971 556,261 Expenses (466,275) (885,483) Loss before tax (21,304) (329,222) Gain/(loss) on disposal of operation (410,385) -

Loss for the year attributable to the members of the Company (431,689) (329,222) Cash flows from discontinued operations Net cash outflows for operating activities (217,456) (195,954) Net cash inflow from investing activities 184,902 (584,512) Net cash outflow from financing activities - 823,114 Net cash outflows (32,554) 42,648


27








$ $ $ $

Within one year

433,214 172,055



42 | WDLAC ANNUAL REPORT 2015/2016


28

25. SUBSEQUENT EVENTS As part of the restructuring WDLAC management terminated 4 employees in July 2016. Appropriate provision was made in the accounts. Refer to Note 13


27








$ $ $ $

Within one year

433,214 172,055




27








$ $ $ $

Within one year

433,214 172,055



Address PO BOX 331 West Perth WA 6005

Phone 08 9486 9797

Email [email protected]

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