diocesan investment fund Annual Report

Transcription

1 diocesan investment fund Annual Report

2 contents About the Fund 3 Bishop s Message 4 Chairman s Report 5 Concise Financial Report 7 Customer Service Team 12 Board Members 13 Accredited Fund Agents 14 The Diocesan Investment Fund provides you with a flexible, low risk investment, without any fees or charges. Your investment with the Diocesan Investment Fund helps your Parish to grow and develop. charter To provide a stable source of long term finance at affordable rates of interest, for Catholic Parishes and institutions of the Lismore Diocese and to provide a stable stated return to investors 2

3 about the fund Invest in the Fund that supports your Parish. In 1964, Bishop Farrelly and Rev Fr Leo Donnelly, in conjunction with prominent local business people, established the Lismore Diocesan Investment Fund to provide a stable source of long term finance at affordable rates of interest for Catholic Parishes and institutions of the Lismore Diocese. Your investment in the Diocesan Investment Fund helps your Parish to grow and develop. Your invested funds are used by the DIF to lend to Parishes and other Diocesan entities for specific projects such as aged care services, school infrastructure, Parish and Diocesan buildings as well as Pastoral activities. Competitive rates of interest with no fees The Diocesan Investment Fund provides you with a flexible, low risk investment, without any fees or charges. Your savings are available at call and there is an online facility for you to view your account at anytime. With competitive rates and a stable return, interest is calculated daily and credited to your account quarterly. The Fund is supported by a network of agencies which has been established throughout the Diocese for deposits and withdrawals. Our agents do not receive any commission. Invest with peace of mind The DIF only lends to Catholic entities. This restricted lending policy means the Diocesan Investment Fund is not exposed to the commercial loan environment. This also means that any downturns in the economy have minimal impact on the Diocesan Investment Fund. All investments with the Diocesan Investment Fund are secured by the assets of the Diocese of Lismore and guaranteed by a company set up by the Australian Catholic Bishops Conference. The Fund is audited annually. 3

4 bishop s message My dear people, I write this letter following the recent beatification of Pope John Paul II, recalling that it is ten years since the close of the Year of the Great Jubilee when he appointed me as Coadjutor Bishop of the Diocese of Lismore. I was likewise reminded that last year in the same month of October I had the honour and privilege of being present in Rome for the canonisation of St. Mary of the Cross MacKillop a truly marvellous moment for the Church in Australia. Father Paul Gardiner SJ in his book, Mary MacKillop writes that, On August 15, 1867 Mary made her first religious vows in a little Oratory at Grote St, Adelaide. Not long after Mary was ready enough to admit that she was not a financial genius but in 1891 Mary of the Cross wisely said, Do all you can with the means at your disposal and calmly leave the rest to God. One of the truly providential means at our disposal is our Diocesan Investment Fund. This Fund has, since its inception in 1964, provided a stable source of long-term finance for the Parishes and institutions of our Diocese. This Fund has enabled our Parishes and institutions to do all they can as St Mary of the Cross inspires us. In celebrating last February the tenth anniversary of my episcopal consecration, I have reflected on the long list of wonderful works that have come to be across my decade in office, simply because the Diocesan Investment Fund, with your help, made them possible. St Mary of the Cross offers a sound Christian strategy - Never see a need without doing something about it. I encourage all those who can to be generous in their support of the Diocesan Investment Fund, so that the Church can continue to address human needs through the building and maintaining of churches, presbyteries, schools, aged care facilities, St Vincent s Private Hospital and the other works of our Diocesan Church in the years ahead. I thank you once more for your ongoing and loyal support of the Fund, to the mutual benefit of both yourself and the works of the Church. Most Rev Geoffrey Jarrett, DD - Bishop of Lismore 4

5 chairman s report This year has once again proved very positive. Many of our Parishes have seen the contribution by the Federal Government towards capital expenditure in our schools. Most of our Parishes have improved facilities for our children and our teachers. These improvements shall decrease the need for our Parishes to fund loans for school improvements in the short to medium future. Well done to all Parishes for their management of their funds with thanks to the Diocesan School Planning and Priority Committee as too, Mr. Paul O Brien and Mr. Andrew Young. Whilst a great deal of the funds for the building work was funded by the Federal Government, some were funded by the Parishes with assistance from the Catholic Education Board and our Diocesan Investment Fund. As investors you can be assured the loans made by the Fund to our Parishes have been used to great benefit by the Parish Priests for their Parishioners well being. Thank you for your continued loyalty to our Fund which continues to be very competitive considering all your invested money is on call whenever you may need those funds. The Board thanks our Bishop, all Priests in the Diocese, Religious, and all Parishioners for your continued support and loyalty. this year has once again proved very positive... Most of our Parishes have improved facilites for our children and our teachers. Personally I thank all members of the Board for their continued vigour, support and loyalty in setting policy for the fund. A huge thank you to Mavourneen who ably manages the fund. We also thank her staff and Mr. Greg Isaac for his support to Mavourneen, the Bishop and our Board Members. Frank Hannigan - Chairman 5

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7 DIOCESAN INVESTMENT FUND ABN Discussion and Analysis of the financial statements Information on Diocesan Investment Fund Concise Financial Report The financial statements and disclosures in the concise financial report have been derived from the 2011 Financial Report of the Diocesan Investment Fund. A copy of the full financial report and auditor s report will be sent to any member, free of charge, upon request. The discussion and analysis is provided to assist members in understanding the concise financial report. The discussion and analysis is based on the Diocesan Investment Funds financial statements and the information contained in the concise financial report has been derived from the full 2011 Financial Report. Statement of comprehensive income The Fund recorded a profit from ordinary activities after income tax for the year of $6,401,769 ( $9,738,973). This decrease in profit from prior year is mainly attributable to a decrease in unrealised gains on our market linked investments, down from $4,650,230 to $1,559,471. The year to 31 March 2010 saw a strong turn around in the share markets after the global financial crisis. The 2011 year saw a more moderate growth in share markets. As in the 2010 year, the unrealised gains for the year have been transferred to a reserve. Our investment properties are carried at cost. An assessment of the current fair value of these properties at 31 March 2011 was obtained from a local real estate agent. The total current fair value for the three properties was in excess of the carrying value (or cost) by $1,245,000. As in prior years, the Diocesan Finance Council has decided to adopt a conservative stance and not bring to account the increase in value of our investment properties. Statement of Financial Position Total assets increased by $30,813,556 to $403,068,375. Total liabilities increased by $27,049,341 to $376,748,676, mainly arising from an increase in our investors deposits. Liabilities have also increased due to a provision at year end for a distribution to the Diocese of Lismore of $2,637,553 (2010: $3,684,689). Accumulated funds at year end totalled $20,109,998. An addition of $1,559,470 has been made to the unrealised investment revaluation reserve bringing the balance at 31 March 2011 to $6,209,701 Statement of Cash Flows The cash held at the end of the year decreased by $221,124 from $1,277,665 as at 31 March 2010 to $1,056,541 at 31 March Auditor s Independence Declaration UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE MEMBERS OF THE DIOCESAN FINANCE COUNCIL I declare that, to the best of my knowledge and belief, during the year ended 31 March 2011 there have been no contraventions of any applicable code of professional conduct in relation to the audit. MF PARTNERS MARK CHARTER (Partner) Dated at Ballina this 4th day of May Address: 95 Tamar Street Ballina NSW

8 DIOCESAN INVESTMENT FUND ABN Statement of Comprehensive Income FOR THE YEAR ENDED 31 MARCH 2011 Note $ $ Revenues from investing activities 2 22,964,985 18,826,065 Other revenue Interest incurred (17,664,861) (13,114,345) Employee benefits expense (148,470) (177,815) Depreciation and amortisation expenses (618) (630) Other expenses from ordinary activities (308,738) (444,531) Changes in fair value of financial assets at fair value 2 1,559,471 4,650,230 Profit/(loss) from ordinary activities before income tax expense 6,401,769 9,738,973 Income tax expense relating to ordinary activities 0 0 Net profit /(loss) for the year after income tax expense attributable to Trustees of the Fund 6,401,769 9,738,973 Other comprehensive income 0 0 Change in net assets attributable to Trustees of the fund 6,401,769 9,738,973 Statement of Financial Position FOR THE YEAR ENDED 31 MARCH 2011 Note $ $ ASSETS Cash and cash equivalents 356, ,665 Held to maturity financial assets 259,893, ,541,000 Available for sale financial assets 11,989,704 18,452,648 Loans and advances 113,907, ,280,960 Other 2,490,516 1,827,127 Property plant and equipment 565 1,183 Investment property 14,430,807 13,674,235 TOTAL ASSETS 403,068, ,254,819 LIABILITIES Trade and other payables 2,738,992 3,744,923 Interest bearing loans and liabilities 373,975, ,919,746 Provisions 33,722 34,666 TOTAL LIABILITIES 376,748, ,699,335 NET ASSETS 26,319,699 22,555,483 EQUITY Accumulated Funds 20,109,998 17,905,254 Reserves 6,209,701 4,650,230 TOTAL EQUITY 26,319,699 22,555,483 8 The accompanying notes form part of these financial statements.

9 DIOCESAN INVESTMENT FUND ABN Statement of Changes in Equity FOR THE YEAR ENDED 31 MARCH 2011 Unrealised Investment Revaluation Reserve Accumulated Funds Total Balance at 1 April ,501,199 16,501,199 Profit attributable to the entity 0 9,738,973 9,738,973 Transfers to/(from) Investment Revaluation Reserve 4,650,230 (4,650,230) 0 Sub-total 4,650,230 21,589,943 26,240,172 Distribution to Diocese paid or provided for 0 (3,684,689) (3,684,689) Balance at 31 March ,650,230 17,905,254 22,555,483 Profit (loss) attributable to the entity 0 6,401,769 6,401,769 Transfers to/(from) Investment Revaluation Reserve 1,559,471 (1,559,471) 0 Sub-total 6,209,701 22,747,551 28,957,252 Distribution to Diocese paid or provided for 0 (2,637,553) (2,637,553) Balance at 31 March ,209,701 20,109,998 26,319,699 Statement of Cash Flows FOR THE YEAR ENDED 31 MARCH 2011 Note $ $ CASH FLOW FROM OPERATING ACTIVITIES Interest received 20,462,290 16,480,568 Dividend received 529, ,656 Interest paid (17,664,861) (13,114,345) Other receipts 1,309,640 1,345,780 Payments to suppliers and employees (416,948) (643,444) Net cash provided by (used in) operating activities 4,219,787 4,574,215 CASH FLOW FROM INVESTING ACTIVITIES Movement in loans - loans advanced (27,073,387) (21,991,535) - loans repaid 35,447,104 24,424,298 Movement in investments - held to maturity Purchases (256,687,000)(212,394,000) Proceeds on maturity 212,235, ,482,000 Movement in investments - available for sale Purchases (1,546,409) (1,471,120) Proceeds from disposal 9,568,825 1,244,324 Payment for plant and equipment 0 0 Payment for investment property (756,572) 0 Net cash provided by (used in) investing activities (28,812,438) (11,706,033) CASH FLOW FROM FINANCING ACTIVITIES Deposits received 391,073, ,185,116 Deposits repaid (363,017,302)(370,143,858) Grant paid (3,684,689) 0 Net cash provided by (used in) financing activities 24,371,527 7,041,258 Net decrease in cash held (221,124) (90,560) Cash at beginning of year 1,277,665 1,368,225 Cash at end of year 1,056,541 1,277,665 The accompanying notes form part of these financial statements. 9

10 DIOCESAN INVESTMENT FUND ABN Notes to the Concise Financial Report FOR THE YEAR ENDED 31 MARCH 2011 NOTE 1: BASIS OF PREPARATION OF THE CONCISE FINANCIAL REPORT The concise financial report has been prepared in accordance with Accounting Standard AASB 1039: Concise Financial Reports. The financial statements, specific disclosures and other information included in the concise financial report are derived from and are consistent with the full financial report of the Diocesan Investment Fund. The concise financial report cannot be expected to provide as detailed an understanding of the financial performance, financial position and financing and investing activities of the Diocesan Investment Fund as the full financial report. A copy of the full financial report and auditors report will be sent to any member, free of charge, upon request. The accounting policies have been consistently applied by the Fund and are consistent with those of the previous financial year except where otherwise stated. The Diocesan Investment Fund has prepared financial statements in accordance with the Australian equivalents to International Financial Reporting Standards (IFRS). NOTE 2: revenue Note $ $ Operating activities - Interest earned 2a 21,125,679 16,974,629 - Distributions from managed trusts 399, ,277 - Dividends received 529, ,657 - Rental income 910, ,468 - Other income ,964,985 18,826,065 Non-operating activities Unrealised gain on investments 1,559,471 4,650,230 1,559,471 4,650,230 Total revenue 24,524,456 23,476,295 a. Interest from Other persons 21,125,679 16,974,629 NOTE 3: SEGMENT REPORTING The Fund operates predominantly in one business and geographical segment being the Finance sector principally in the Catholic Diocese of Lismore. The fund produces monthly management reports based on this one segment and as such all significant operating decisions are based upon the fund as one segment. The financial results from this segment are equivalent to the financial statements of the Fund as a whole. NOTE 4: EVENTS SUBSEQUENT TO REPORTING DATE Since the end of the financial year no subsequent events have come to light which would require disclosure in this financial report. NOTE 5: DISTRIBUTIONS There was a distribution accrued of $2,637,553 (2010:$3,684,689) to be paid to the Roman Catholic Diocese of Lismore. 10

11 DIOCESAN INVESTMENT FUND ABN Declaration by Members of the Diocesan Finance Council We In accordance with a resolution of the members of the Diocesan Finance Council: 1. The financial statements and notes, as set out in pages 7 to 10: a. complies with Accounting Standard AASB 1039: Concise Financial Reports; and b. has been derived from and is consistent with the full financial report of the Diocesan Investment Fund. 2. in the members of the Diocesan Finance Council opinion there are reasonable grounds to believe that the Fund will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the members of the Diocesan Finance Council and is signed for and on behalf of the members by: Chairman - Frank Hannigan Dated this 4th day of May Deputy Chairman - Michael Shay Independent Audit Report TO THE BISHOP AND TRUSTEES OF THE DIOCESE OF LISMORE Scope We have audited the concise financial report of the Diocesan Investment Fund for the financial year ended 31 March 2011 as set out on pages 7 to 10, in order to express an opinion on it to the Bishop and the Trustees of the Diocese of Lismore. The members of the Diocesan Finance Council are responsible for the concise financial report. The concise financial report does not contain all disclosures required by the Australian Accounting Standards. Responsibility of the Members of the Finance Council for the Financial Report The members of the Diocesan Finance Council are responsible for the preparation and presentation of the concise financial report in accordance with Accounting Standard AASB 1039: Concise Financial Reports (including the Australian Accounting Interpretations), statutory and other requirements. This responsibility includes establishing and maintaining internal control relevant to the preparation of the concise financial report; selecting and applying the appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditor s responsibility Our responsibility is to express an opinion on the concise financial report based on our audit procedures. We have conducted an independent audit, in accordance with Australian Auditing Standards, of the financial report of the Diocesan Investment Fund for the year ended 31 March Our audit report on the financial report for the year was signed on 4 May 2011 and was not subject to any modification. The Australian Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report for the year is free from material misstatement. Our procedures in respect of the concise financial report included testing that the information in the concise financial report is derived from, and is consistent with, the financial report for the year, and examination on a test basis, of evidence supporting the amounts, discussion and analysis, and other disclosures which were not directly derived from the financial report for the year. These procedures have been undertaken to form an opinion whether, in all material respects, the concise financial report complies with Accounting Standard AASB 1039: Concise Financial Reports and whether the discussion and analysis complies with the requirements laid down in AASB 1039: Concise Financial Reports. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we followed applicable independence requirements of Australian professional ethical pronouncements. We have given to the members of the Finance Council a written Auditor s Independence Declaration, a copy of which is included on page 7. Auditor s opinion In our opinion the concise financial report of the Diocesan Investment Fund complies with Accounting Standard AASB 1039: Concise Financial Reports. MF PARTNERS MARK CHARTER (Partner) Dated at Ballina this 4th day of May Address: 95 Tamar Street Ballina NSW

12 customer service team Rachael Bennett Cathy Daley Gemma Habchi Derelle Layton Emma Storer Our customer service team prides itself on providing outstanding professional service to our investors. Our team in our DIF Head Office and all our agents are here to help you with any questions, to receive deposits, organise withdrawals or change any aspect of your investment. Our website provides an alternative avenue of information however if you can t find what you need online, contact us via phone, or by visiting our Head Office or one of our Agents. We are happy to assist you. Diocese Investment Fund Building Lismore Diocese s Catholic Schools We are all walking around pinching ourselves; our new school is so beautiful we feel like we are in a dream. This is how the Principal Ms Claire Mellon describes the newly built St Mary s Primary School at Bowraville. There were times when the future of Bowraville s only Catholic School was in doubt over the last decade but thanks to the Diocesan Investment Fund, St Mary s Primary School community has renewed spirit. Our new School is a huge vote of confidence to the Aboriginal community about the commitment of Catholic education in Bowraville, said Ms Mellon. St Mary s Primary School is one of the 46 schools in the Diocese of Lismore that has benefited from the Diocesan Investment Fund s assistance. According to Mavourneen Kennedy, Diocesan Investment Fund Manager, one of the DIF s priorities is to support the Schools in their pursuit to provide quality Catholic education for communities in the Diocese of Lismore. The DIF has loaned out in excess of $100 million to Catholic schools in the Lismore Diocese, and we know that the funding assistance makes a meaningful contribution to our children s learning, said Mrs Kennedy. 12

13 board members Bishop of Lismore Most Rev Geoffrey Jarrett (ex officio) Chairman Frank Hannigan Deputy Chairman Michael Shay Dudley Kelso the Board thanks our Bishop, all Priests in Tony Simmon Vicar General Rev Peter Slack Brian Tierney the Diocese, Religious, Absent: Rev Jim Reilly and all by invitation Parishioners for your continued support and loyalty. Chancellor Deacon Chris Wallace Diocesan Business Manager Greg Isaac Fund Manager Mavourneen Kennedy Mr Frank Hannigan Auditors: MF Partners. Solicitors: Hannigans Solicitors. Bankers: Westpac Banking Corporation 13

14 FUND AGENCIES The Diocesan Investment Fund is represented in various towns within the Diocese by the following Accredited Agents. Deposits and withdrawals may be made during normal business hours. ALSTONVILLE Bruno Ivan & Co Chartered Accountant - 92a Main Street BALLINA L J Hooker Real Estate - 89 River Street Crowley Cherry Street BELLINGEN Parish Office (Tues, Wed, Fri) - Park Street CASINO Hannigans Solicitors - 92 Centre Street Parish Office Canterbury Street COFFS HARBOUR Bailey Centre Pharmacy (opposite the Showgrounds) Parish Office - 12 Gordon Street CORAKI Parish Office (Mon, Fri) - Union Street EVANS HEAD L J Hooker Real Estate - Oak Street GRAFTON Westlawn Investments - Cnr Fitzroy & Queen Streets Parish Office - 1 Victoria Street KEMPSEY Paul Stubbs Law Office - 44 Belgrave Street KINGSCLIFF Parish Office (Mon, Tues, Wed, Fri) - 16 Pearl Street KYOGLE Hannigans Solicitors - 92 Summerland Way LAURIETON Parish Office Ocean Drive LISMORE DIF Head Office - 75 Magellan Street Parish Office - Leycester Street MULLUMBIMBY Healthcare Pharmacy - 60 Burringbar Street MURWILLUMBAH John G McDonald & Partners Solicitors - 97 Main Street NAMBUCCA HEADS Roberts First National Real Estate - 10 Bowra Street PORT MACQUARIE Parish Administration Centre - Hay Street SAWTELL Parish Office - 44 Boronia Street Marian Grove Retirement Village - Marian Place Toormina SOUTH WEST ROCKS Peter Needs Pharmacy - 11 Memorial Avenue TWEED HEADS Parish Office - 3 Pearl Street YAMBA Yamba Soul Pattinson Pharmacy - 17 Yamba Street These agents provide their services without payment. Please show your appreciation for their generosity and support their businesses. The Diocesan Investment Fund (DIF) is not subject to the provisions of the Corporations Act 2001 nor has it been examined or approved by the Australian Securities and Investments Commission. Deposits with the DIF are guaranteed by CDPF Limited, a company established by the Australian Catholic Bishops Conference for this purpose. We welcome your investment with the DIF rather than with a profit oriented commercial organisation as a conscious commitment by you to support the Charitable, Religious and Educational works of the Catholic Church. Neither the DIF nor the Trustees of the Roman Catholic Church for the Diocese of Lismore are prudentially supervised by the Australian Prudential Regulation Authority; contributions to the DIF do not obtain the benefit of the depositor protection provisions of the Banking Act 1959; the DIF is designed for investors who wish to promote the charitable purposes of the DIF. 14

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