Portfolio Budget Statements 2011-12 - NNTT

National Native Title Tribunal

Section 1: Agency overview and resources

1.1Strategic direction statement

The National Native Title Tribunal (NNTT) was established under the Native Title Act 1993 (the Act), the objectives of which include:

•to provide for the recognition and protection of native title

•to establish a mechanism for determining claims to native title, and

•to establish ways in which future dealings affecting native title (future acts) may proceed.

Under the scheme created by the Act, the NNTT is vested with wide-ranging responsibilities which include:

•testing claimant applications for registration purposes

•providing assistance to parties (including geospatial information and historical, anthropological and linguistic research services)

•assisting with the negotiation of indigenous land use agreements (ILUAs) and assessing them for registration

•conducting reviews and inquiries about native title issues

•mediating various types of applications

•mediating, arbitrating and conducting inquiries about certain future acts, and

•maintaining registers of claims, determinations of native title and ILUAs.

The challenges for the NNTT in 2011–12 and beyond include:

•monitoring the NNTT’s mediation practice and related functions following the 2009amendmentsto the Act, and calibrating resources as required

•operating with fewer NNTT members, and

•reduced ongoing funding, requiring organisational and operational changes to maintain high-quality service delivery.

The NNTT operates in a dynamic native title environment by reference to its Strategic Plan 2009–2011, in particular as articulated in its vision: ‘Timely, effective native title and related outcomes’.

The NNTT is actioning key strategies identified in the Strategic Plan 2009–2011:

•maintaining or improving the timeliness of services

•working with parties to develop timely and effective native title and related outcomes

•using cross-cultural mediation experience and geospatial, research and other specialist expertise to deliver effective services

•delivering high-quality mediation and agreement-making services

•fostering a culture of high achievement and performance within the NNTT, and

•managing resources strategically and effectively.

The NNTT monitors and measure its success in these and other initiatives using the ‘balanced scorecard’ strategic management methodology as appropriate.

1.2Agency resource statement

Table 1.1 shows the total resources from all sources.

Table 1.1: Agency resource statement—Budget estimates for 2011–12 as at Budget May 2011

Estimate of
prior year / Actual
amounts / + / Proposed / = / Total / available
available in / at Budget / estimate / appropriation
2011–12 / 2011–12 / 2011–12 / 2010–11
$’000 / $’000 / $’000 / $’000
ORDINARY ANNUAL SERVICES1
Departmental appropriation
Prior year departmental
appropriation2 / 9,555 / – / 9,555 / 16,001
Departmental appropriation3 / – / 26,620 / 26,620 / 27,351
s 31 relevant agency receipts4 / – / 93 / 93 / 88
Total ordinary annual services / 9,555 / 26,713 / 36,268 / 43,440
OTHER SERVICES5
Departmental non-operating
Equity injections / – / – / – / 270
Total other services / – / – / – / 270
Total available annual
appropriations / 9,555 / 26,713 / 36,268 / 43,710
SPECIAL ACCOUNTS
Opening balance / – / – / – / –
Receipts / – / – / – / –
Total special accounts / – / – / – / –
Total net resourcing for agency / 9,555 / 26,713 / 36,268 / 43,710

All figures are GST exclusive.

1. Appropriation Bill (No.1) 2011–12.

2. Estimated adjusted balance carried forward from previous year.

3. Includes an amount of $0.766m in 2011–12 for the departmental capital budget (see Table3.2.5 for further details). For accounting purposes, this amount has been designated as ‘contributions by owners’.

4. Section 31 relevant agency receipts—estimate.

5. Appropriation Bill (No.2) 2011–12.

1.3Budget measures

Budget measures relating to the NNTT are detailed in Budget Paper No.2 and are summarised below.

Table 1.2: Agency 2011–12 Budget measures

2010–11 / 2011–12 / 2012–13 / 2013–14 / 2014–15
Program / $’000 / $’000 / $’000 / $’000 / $’000
Expense measures
Efficiency dividend—temporary increase in the rate / 1.1
Departmental expenses / – / (131) / (242) / (299) / (361)
Total expense measures / – / (131) / (242) / (299) / (361)
Capital measures
Efficiency dividend—temporaryincrease in the rate / 1.1
Departmental capital / – / (4) / (11) / (5) / (12)
Total capital measures / – / (4) / (11) / (5) / (12)

Prepared on a Government Finance Statistics (fiscal) basis.

Section 2: Outcomes and planned performance

2.1Outcomes and performance information

Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to government outcomes over the budget and forward years.

The NNTT’s outcome is described below together with its related program, specifying the performance indicators and targets used to assess and monitor the performance of the NNTT in achieving government outcomes.

The NNTT has a single program with three key components:

•agreement-making

•decisions, and

•stakeholder and community relations

The three effectiveness indicators of the various components are:

•increase in the number of native title and related agreements as an alternative to litigated or arbitrated outcomes

•less than 5% of decisions successfully appealed or reviewed, and

•improvement in the quality of native title and related agreement-making.

Outcome 1 expense statement

Table 2.1 provides an overview of the total expenses for Outcome 1, by program.

Table 2.1: Budgeted expenses for Outcome 1

Outcome 1:Facilitation of native title determinations, agreements and the disposition of related matters for claimants and others with interests in land and waters through mediation, agreement-making and administrative decisions / 2010–11
Estimated / 2011–12
actual / Estimated
expenses / expenses
$’000 / $’000
Program 1.1: National Native Title Tribunal
Departmental expenses
Departmental appropriation1 / 27,013 / 25,937
Expenses not requiring appropriation in the budget year2 / 6,211 / 567
Total expenses for Outcome 1 / 33,224 / 26,504
2010–11 / 2011–12
Average staffing level (number) / 181 / 154

Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.

1. Annual departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No.1)’ and ‘Revenue from independent sources (s31)’.

2.Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses and expenses funded from prior year appropriations.

Contributions to Outcome 1

Program 1.1: National Native Title Tribunal
Program 1.1 objective
The NNTT has a single program with three key components:
•agreement-making
•decisions,and
•stakeholder and community relations.
Agreement-making
The NNTT works with participants in native title proceedings to reach timely and effective native title and native title-related outcomes.
The native title scheme created by the Act expressly anticipates and supports the resolution of native title issues by agreement.
Accordingly, through delivery of a wide range of services, the NNTT facilitates the making of agreements by parties to native title proceedings.
In particular:
•the NNTT must mediate applications for determination of native title and compensation applications that are referred to it by the Federal Court
•parties wishing to make an ILUA or a statutory access agreement may request the NNTT to assist them in negotiating the agreement, and
•parties wishing to reach an agreement about whether or how certain future acts affecting native title may be done can ask the NNTT to mediate.
Program 1.1 objective (continued)
Decisions
The objective is to make timely and legally sustainable decisions in performance of the NNTT’s registration and arbitration functions, including:
•decisions made by the Native Title Registrar, and reconsideration decisions by NNTT members, when considering native title claimant applications for registration on the Register of Native Title Claims
•the Native Title Registrar’s decisions whether to register agreements on the Register of Indigenous Land Use Agreements
•determinations made by the NNTT that a future act may or must not be done and, if the future act may be done, whether it is to be done subject to conditions or not. It also includes decisions whether negotiations to reach agreement about future act determination applications have occurred in good faith, and
•the processing, and finalisation, by the NNTT of objections to the inclusion of the expedited procedure statement in certain future act notices.
Stakeholder and community relations
The NNTT is empowered under the Act to assist native title applicants and other persons with the preparation of applications, and to help people at any stage of a proceeding. The NNTT aims to provide comprehensive services in this regard, through the provision of maps, research reports, register and tenure information and information about native title and agreement-making processes.
In addition, the NNTT builds the capacities of parties to be effective participants in the native title process by facilitating regional planning, forums and workshops, often in partnership with other organisations.
Those roles and functions enhance stakeholder and community relationships and facilitate the efficient and effective operation of the native title system.
Program 1.1 expenses
As a result of a 2010–11 Budget measure, the NNTT has measure savings of $13.600m over the period 2011–12 to 2013–14.
2010–11 / 2012–13 / 2013–14 / 2014–15
Revised / 2011–12 / Forward / Forward / Forward
budget / Budget / year 1 / year 2 / year 3
$’000 / $’000 / $’000 / $’000 / $’000
Annual departmental expenses
Departmental item / 27,013 / 25,937 / 23,896 / 23,565 / 23,704
Expenses not requiring appropriation in
the budget year1 / 6,211 / 567 / 657 / 550 / 500
Total program expenses / 33,224 / 26,504 / 24,553 / 24,115 / 24,204

1. Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses and expenses funded from prior year appropriations.

Program 1.1 deliverables
The NNTT’s deliverables are set out against the following three components (which constitute its single program):
•agreement-making
•decisions, and
•stakeholder and community relations.
The NNTT uses qualitative and quantitative measures to assess and report on its performance. The qualitative measures are set out against each component. The quantitative measures are set out in the table below.
Note: The unique nature of the native system and the factors affecting it (internal and external) create difficulties in the precise forecasting of deliverables.
The target deliverables for 2011–12 have been informed by current workloads and achievements in the previous financial year, and the deliverables for forward years have been formulated on an analysis of workload and achievement trends and the reduced NNTT funding for 2011–12 to 2013–14. Under the scheme created by the Act, the NNTT performs a wide range of mandatory and discretionary functions. It is difficult to forecast with accuracy the impact of reduced NNTT funding on deliverables.
Agreement-making
The deliverables are set out below, under specified departmental items.
ILUAs negotiated with the assistance of the NNTT:
•fully concluded agreements
•milestones in ILUA negotiations.
Native title agreements and related milestones agreements—agreements on native title determination applications (claimant, non-claimant, compensation and revised applications) mediated with the assistance of the NNTT:
•agreements that fully resolve native title applications
•milestones on issues, leading towards the resolution of native title applications
•process and framework milestones.
Future act agreements—agreements mediated with the assistance of the NNTT that a proposed activity or acquisition may or may not proceed, either:
•agreements that fully resolve future act applications, or
•milestones in future act mediations.
The qualitative measure for this component is:
•Clients’ perception of the quality of the agreement-making process.
Program 1.1 deliverables (continued)
Decisions
•Registration of native title claimant applications
•Registration of ILUAs
•Future act determinations
•Finalised objections to the expedited procedure.
The qualitative measures for this component are:
•70% of decisions for the registration of native title claimant applications are completed within six months of receipt of the original or amended application submitted for registration
•90% of decisions for the registration of ILUAs are completed within six months of receipt of the application submitted for registration, where there is no objection or other bar to registration
•80% of future act determinations are finalised within six months of the application being made
•80% of objections to the expedited procedure resolved other than by agreement are finalised within nine months of the section 29 notice closing date
•70% of objections to the expedited procedure resolved by agreement are finalised within nine months of acceptance.
Stakeholder and community relations
The deliverables are as follows:
•Statutory assistance and information: providing a wide range of NNTT services to assist native title claimants and other participants in native title processes
•Capacity-buildinginitiatives and activitiesincluding strategic and regional planning of native title-related activities in conjunction with the Federal Court.
The qualitative measures for this component are:
•80% of respondents to client surveys are satisfied with the assistance, service or product
•80% of respondents to client surveys are satisfied with the quality of the initiative.

Program 1.1 deliverables (continued)

2010–11 / 2012–13 / 2013–14 / 2014–15
Revised / 2011–12 / Forward / Forward / Forward
Deliverables / budget / Budget / year 1 / year 2 / year 3
Agreement-making
ILUAs (fully concluded) / 38 / 34 / 33 / 33 / 33
ILUAs (milestone) / 157 / 138 / 125 / 125 / 120
Native title agreements (full resolution) / 14 / 13 / 13 / 13 / 13
Native title agreements (specific issues) / 125 / 80 / 75 / 75 / 75
Native title agreements (framework and process) / 129 / 72 / 69 / 69 / 69
Future act agreements (full resolution) / 65 / 42 / 41 / 40 / 40
Future act agreements (milestones in negotiations) / 86 / 32 / 32 / 31 / 31
Decisions
Registration of native title claimant applications / 29 / 79 / 74 / 64 / 56
Registration of ILUAs / 60 / 75 / 60 / 55 / 55
Future act determinations / 45 / 60 / 50 / 50 / 50
Finalised objections to the expedited procedure / 1,030 / 1,060 / 1,060 / 1,060 / 1,060
Stakeholder and community relations
Statutory assistance and information / 274 / 274 / 260 / 257 / 249
Capacity-building initiatives and activities / 4 / 14 / 13 / 13 / 12

Note: ILUAs (milestone) consolidated to include those achieved 'inside' and 'outside' mediation.

Program 1.1 key performance indicators
The key performance indicators for the program components are as follows:
Agreement-making
•Increase in the number of native title and related agreements as an alternative to litigated or arbitrated outcomes.
Decisions
•Less than 5% of decisions successfully appealed or reviewed.
Stakeholder and community relations
•Improvement in the quality of native title and related agreement-making.

Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2011–12 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, special accounts and government Indigenous expenditure.

3.1Explanatory tables

3.1.1Movement of administered funds between years

The NNTT has no administered appropriations.

3.1.2Special accounts

Special accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister’s Determination under the Financial Management and Accountability Act 1997 or under separate enabling legislation. Table3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by the NNTT.

Table 3.1.2: Estimates of special account flows and balances

Opening / Closing
balance / Receipts / Payments / Adjustments / balance
2011–12 / 2011–12 / 2011–12 / 2011–12 / 2011–12
2010–11 / 2010–11 / 2010–11 / 2010–11 / 2010–11
Outcome / $’000 / $’000 / $’000 / $’000 / $’000
Other Trust Moneys— / 1 / – / – / – / – / –
FMA Act s20(D)1 / 1 / – / – / – / – / –
Total special accounts 2011–12 Budget estimate / – / – / – / – / –
Total special accounts 2010–11 estimated actual / – / – / – / – / –

(D) = Departmental.

1. The purpose of this account is to hold moneys advanced to the NNTT by Comcare for the purpose of distributing compensation payments made in accordance with the Safety Rehabilitation and Compensation Act 1988. Where the NNTT makes payment against accrued sick leave entitlements pending determination of an employee’s claim, permission is obtained in writing from each individual to allow the NNTT to recover moneys from this account. This account is non-interest-bearing. Since it is not possible to estimate compensations claims and payments, no amounts have been estimated.

3.1.3Australian Government Indigenous expenditure

Table 3.1.3 shows the NNTT’s Australian Government Indigenous expenditure relating to Outcome 1.

Table 3.1.3: Australian Government Indigenous expenditure (AGIE)

Appropriations
Bill / Bill / Special / Total
No. 1 / No. 2 / approp / approp / Other / Total
$’000 / $’000 / $’000 / $’000 / $’000 / $’000 / Program
Outcome 1
Departmental 2011–12 / 26,620 / – / – / 26,620 / 93 / 26,713 / 1.1
Departmental 2010–11 / 27,351 / 270 / – / 27,621 / 88 / 27,709 / 1.1
Total AGIE 2011–12 / 26,620 / – / – / 26,620 / 93 / 26,713
Total AGIE 2010–11 / 27,351 / 270 / – / 27,621 / 88 / 27,709

3.2Budgeted financial statements

3.2.1Differences in agency resourcing and financial statements

There is no significant difference between the agency resourcing and financial statements.

3.2.2Analysis of budgeted financial statements

The budget for 2011–12 and forward estimates to 2014–15 show a decrease in appropriation to the NNTT in line with prior year measures.

The budgeted operating result for 2010–11 is a deficit of $6.211m. This deficit is largely a result of one-off costs budgeted to occur in 2010–11 to allow the Tribunal to operate within its funding in 2011–12. The deficit is funded from prior year unspent accumulated appropriation amounts.

The operating deficits from 2011–12 onwards are due only to depreciation and amortisation expenses, which are not included in annual appropriation funding.

In 2011–12, the provisions for employees and associated administrative costs are expected to decrease due to the expected reduction in staff numbers. Over the years 2011–12 to 2014–15, the NNTT expects the downward trend in expenses to continue in response to reduced funding in these future years.

3.2.3Budgeted financial statements tables

Departmental

Table 3.2.1: Comprehensive income statement (showing net cost of services) (for the period ended 30June)

Estimated / Budget / Forward / Forward / Forward
actual / estimate / estimate / estimate / estimate
2010–11 / 2011–12 / 2012–13 / 2013–14 / 2014–15
$’000 / $’000 / $’000 / $’000 / $’000
EXPENSES
Employee benefits / 19,425 / 17,397 / 16,868 / 16,676 / 16,773
Supplier expenses / 12,832 / 8,540 / 7,028 / 6,889 / 6,931
Depreciation and amortisation / 967 / 567 / 657 / 550 / 500
Total expenses / 33,224 / 26,504 / 24,553 / 24,115 / 24,204
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of
services / 88 / 93 / 97 / 97 / 80
Total own-source revenue / 88 / 93 / 97 / 97 / 80
Net cost of (contribution by)
services / 33,136 / 26,411 / 24,456 / 24,018 / 24,124
Revenue from government / 26,925 / 25,844 / 23,799 / 23,468 / 23,624
Surplus (deficit) / (6,211) / (567) / (657) / (550) / (500)
Surplus (deficit) attributable to
the Australian Government / (6,211) / (567) / (657) / (550) / (500)
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation reserves / – / – / – / – / –
Total other comprehensive income / – / – / – / – / –
Total comprehensive income / (6,211) / (567) / (657) / (550) / (500)
attributable to the Australian
Government / (6,211) / (567) / (657) / (550) / (500)

Prepared on Australian Accounting Standards basis.

Note: Reconciliation of comprehensive income attributable to the agency
2010–11 / 2011–12 / 2012–13 / 2013–14 / 2014–15
$’000 / $’000 / $’000 / $’000 / $’000
Total comprehensive income
(loss) attributable to the
Australian Government / (6,211) / (567) / (657) / (550) / (500)
Plus non-appropriated expenses
Depreciation and amortisation
expenses / 967 / 567 / 657 / 550 / 500
Total comprehensive income
(loss) attributable to the agency / (5,244) / – / – / – / –

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)

Estimated actual 2010–11 $'000 / Budget / Forward estimate 2012–13 $'000 / Forward estimate 2013–14 $'000 / Forward estimate 2014–15 $'000
estimate
2011–12
$’000
ASSETS
Financial assets
Cash and cash equivalents / 500 / 340 / 677 / 752 / 690
Trade and other receivables / 9,555 / 8,814 / 7,961 / 7,461 / 7,211
Total financial assets / 10,055 / 9,154 / 8,638 / 8,213 / 7,901
Non-financial assets
Land and buildings / 3,042 / 3,403 / 4,087 / 4,314 / 4,607
Property, plant and equipment / 603 / 518 / 900 / 1,105 / 1,126
Intangibles / 186 / 472 / 472 / 472 / 472
Other / 352 / 258 / 205 / 114 / 53
Total non-financial assets / 4,183 / 4,651 / 5,664 / 6,005 / 6,258
Total assets / 14,238 / 13,805 / 14,302 / 14,218 / 14,159
LIABILITIES
Payables
Suppliers / 718 / 684 / 955 / 1,001 / 675
Total payables / 718 / 684 / 955 / 1,001 / 675
Provisions
Employee provisions / 4,569 / 3,961 / 3,778 / 3,766 / 3,719
Other / 779 / 779 / 779 / 779 / 779
Total provisions / 5,348 / 4,740 / 4,557 / 4,545 / 4,498
Total liabilities / 6,066 / 5,424 / 5,512 / 5,546 / 5,173
Net assets / 8,172 / 8,381 / 8,790 / 8,672 / 8,986
EQUITY
Parent entity interest
Contributed equity / 3,111 / 3,887 / 4,953 / 5,385 / 6,199
Retained surplus/
(accumulated deficit) / 5,061 / 4,494 / 3,837 / 3,287 / 2,787
Total parent entity interest / 8,172 / 8,381 / 8,790 / 8,672 / 8,986
Total equity / 8,172 / 8,381 / 8,790 / 8,672 / 8,986

Prepared on Australian Accounting Standards basis.