Consolidated Financial Statements

Transcription

1 CTJH EDA for the Diocese of Melbourne ABN: as Trustees for the Catholic Archdiocese of Melbourne ABN: Consolidated Financial Statements for the year ended 31 December 213

2 CTJH EDA for the Diocese of Melbourne ABN: as Trustees for the Catholic Archdiocese of Melbourne ABN: Index Statement by RCTC Secretary and Treasurer Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Cash Flow Consolidated Notes to the Financial Statements Auditors' Report

3 CTJH EDA for the Diocese of Melbourne ABN: ABN: Statement by the RCTC Secretary and the Treasurer In the opinion of the RCTC Secretary and the Treasurer of the Catholic Archdiocese of Melbourne this special purpose financial report has been prepared in accordance with the accounting policies described in Note 1 to the financial statements. The RCTC Secretary and Treasurer of the Catholic Archdiocese of Melbourne declare that; a. The financial statements and notes present fairly the financial position of the Catholic Archdiocese of Melbourne as at 31 December 213 and its performance for the period ended on that date in accordance with the accounting polices described in Note 1 to the financial statements; and b. In their opinion there are reasonable grounds to believe that the Catholic Archdiocese of Melbourne will be able to pay their debts as and when they become due and payable. Signed at East Melbourne on th~ayof March 214 F X Moore Treasurer

4 CTJH EDA for the Diocese of Melbourne ABN: And Controlled Entities Consolidated Statement of Comprehensive Income for the year ended 31 December 213 Notes Income Books, publications & resources Cathedraticum income Conferences & workshops Course fees Donations Grants Interest - bank & other Investment -capital growth Investment - interest & dividend Investment - profit on sale Investment - rent from investment properties Other income Land acquisition levy Quota income Profit on sale of operating assets Rental Service fees Sponsorships Subscriptions Total Income Other Expense Administration support Advertising Appeal costs Archive costs Audit fees Australian Episcopal Conference fee Bad & doubtful debts Bank charges Board & lodging Books, publications & resources Cartage & freight Catering Chapel costs Cleaning Client expenses Compensation payments Computer expenses Conferences/seminars/retreats Consultants Contract staff Courses Sub Total Carried Forward 2,364, , ,86 1,14,353 2,5,469 9,39, ,575 11,52,182 5,12,88 2,678,213 1,498,59 5,146,6 1,774,915 3,693, ,381 1,685,131 2,452,714 11, ,492 52,793, ,239 11,668 7,835 1,923 4,355 1,664,46 1, 42, , ,621 26, ,821 45, , ,84 1,26, 72, ,181 3,867,53 296, ,28 9,587,665 2,784,637 71,319 27,65 1,97,7 3,554,418 8,699,235 2,285 7,25,389 5,473,51 921,56 1,443,436 4,579, ,889 3,493,49 (116,78) 1,629,68 2,427, , ,55 45,279, ,21 19,68 6,789 4,179 61,396 85,166 1, 43,477 86, ,81 22,111 2,883 51, , , ,76 56,1 391,311 2,823,962 32, ,341 6,981,775 The Consolidated Statement of Comprehensive Income is to be read in conjunction with the Consolidated Notes to the Financial Statements and the Auditor's Report. 2

5 CTJH EDA for the Diocese of Melbourne ABN: And Controlled Entities Consolidated Statement of Comprehensive Income for the year ended 31 December 213 Other Expenses Notes Sub Total Brought Forward 9,587,665 6,981,775 Depreciation 1,537,169 1,512,12 Distribution of income 533,783 59,513 Donations 4,771,245 4,416,257 Electricity & gas 448, ,542 Episcopal Trustee fees 63,915 75,1 41 Food provisions 62,494 37,571 Formation Expenses 1,5 19,423 Fringe benefits tax 47,3 78,491 General expenses Hospitality (entertainment) 14,863 97,671 Household expenses 8,15 12,894 Insurance 988,97 927,445 Interest expense 3,362,792 3,14,615 Investment expenses 29,175 21,255 Lease expenses 188,24 187,1 Lecture fees 279,11 268,944 Legal fees 3,74,947 2,828,842 Maintenance & repairs 1,254,535 1,374,484 Medical expenses 175, ,862 Motor vehicle costs 214,461 23,485 Office furniture & equipment purchases 42,357 4,239 Ordination costs 1,62 49,828 Parish support 228, ,631 Payroll Costs 43,937 51,552 Photocopy, facsimile & printing 12, ,295 Postage 233, ,653 Printing 611, ,327 Public relations & media 159, ,67 Purchase of stock for resale 1,21,71 1,376,11 Quotas 37,48 32,98 Rates 183, ,562 Remuneration - clergy 696, ,543 Rents paid 543,55 461,947 Research expenses 14,183 32,97 Rubbish removal 27,396 22,797 Sabbatical leave 19, ,66 Scholarship costs 325, ,173 Security 25, ,734 Staff amenities 46,615 49,595 Staff recruitment costs 2,255 17,69 Staff training 54,684 93,268 Stationary & office supplies 139, ,525 Stipends 1,19,37 1,36,252 Sub Total Carried Forward 34,392,383 3,653,179 The Consolidated Statement of Comprehensive Income is to be read in conjunction with the Consolidated Notes to the Financial Statements and the Auditor's Report. 3

6 CTJH EDA for the Diocese of Melbourne ABN: And Controlled Entities Consolidated Statement of Comprehensive Income for the year ended 31 December 213 Notes Other Expense Sub Total Brought Forward Subscriptions Superannuation for contractors Supply payments Telecommunications Travel & accommodation Vestments Workcover- payments Total Other Expense Salary Expenses Leave - annual leave movement Leave - long service leave provision Salary & wages Superannuation Workcover- insurance premiums Total Salary Expenses Internal Transfers Accounting charges Computer support General contribution Inter department service charge Internal Photocopying charge Total Internal Transfers Total Expenditure Operating Surplus/( Deficit) for year Accumulated funds at 1 January 213 Increased Archdiocese Equity in Carlton Seminary Accumulated funds at 31 December ,392, ,895 1,62 27, , ,55 6,754 2,94 35,623,35 129, ,974 11,455, ,984 76,144 12,954,156 (2,39) (74,4) 1,5 6,648 (7,671) (84,962) 48,492,228 4,31,118 28,55,613 28,55, ,356,731 3,653, ,627 7, ,812 33,673 61,72 5, ,771, , ,844 1,91,82 922,52 77,17 12,376,75 (18,346) (66,6) 1,5 3,825 ~7,657) F 8,278! 44,69,94 1,21,523 26,845,9 26,845,9 28,55,613 The Consolidated Statement of Comprehensive Income is to be read in conjunction with the Consolidated Notes to the Financial Statements and the Auditor's Report. Statement of Financial Position as at 31 December 213 4

7 CTJH EDA Current Assets for the Diocese of Melbourne ABN: And Controlled Entities Notes Cash 4 5,591,73 5,32,325 Trade receivables 5 2,259,447 2,72,838 Other receivables 6 1,952,58 1,896,855 Inventories 986,36 1,149,33 Investments 7(a) 9,124,834 18,682,62 Current assets other 8 588, ,46 Total Current Assets 2,53,386 3,62,43 Non Current Assets Loans 9(a) 6,65,52 6,779,77 Work in Progress 1 4,329,548 3,171,452 Investments 7(b) 165,163,31 155,858,667 Fixed assets 11 3,99,156 4,496,18 Properties 12 19,197,758 16,548,85 Total Non Current Assets 289,33, ,854,649 Total Assets 39,834,22 37,457,79 Current Liabilities Creditors 78, ,586 Employee deductions ,34 319,463 Employee entitlements 14 3,445,78 3,74,412 Current liabilities other 15 1,689,181 2,92,778 Total Current Liabilities 6,158,419 6,8,24 Non Current Liabilities Loans 9(b) 81,228,32 83,23,26 Total Non Current Liabilities 81,228,32 83,23,26 Total Liabilities 87,386,451 89,31,446 Net Assets ,447, ,146,633 Equity Accumulated funds 212,356,731 28,55,613 Reserves 4,486,11 4,486,11 Corpus funds 5,65,1 5,65,1 Total Equity 222,447, ,146,633 The Consolidated Statement of Financial Position is to be read in conjunction with the Consolidated Notes to the Financial Statements and the Auditor's Report. 5

8 CTJH EDA for the Diocese of Melbourne ABN: And Controlled Entities Consolidated Statement of Cash flow for the year ended 31 December 213 Cash flows from Operating Activities Notes Receipts from customers 28,44,526 24,616,235 Receipts from Grants 9,39,532 8,673,795 Payments to suppliers and employees (47,314,737) (42,59,721) Interest & Dividends Received 4,953,833 4,355,578 Net Cash flows from Operating Activities 17 {4,529,847) {4,864, 113) Cash flows from Investing Activities (Purchase) Sale of Investments 8,739,223 8,987,596 (Payment)/Sale of Property,plant & equipment (2,65,479) (16,35,561) Net Cash flows from Investing Activities 6,673,744 (7,362,965) Cash flows from Financing Activities Loans (1,872,52) 11,48,487 Equity Net Cash flows from Financing Activities (1,872,52) 11,48,487 Net lncrease/(decrease) in Cash Held 271,378 (1,178,591) Cash at the beginning of the reporting period 5,32,325 6,498,916 Cash at the end of the reporting period 4 5,591,73 5,32,325 The Statement of Cash flow is to be read in conjunction with the Consolidated Notes to the Financial Statements and the Auditor's Report. 6

9 CTJH EDA for the Diocese of Melbourne ABN: And Controlled Entities Consolidated Notes to the Financial Statements for the year ended 31 December Statement of Significant Accounting Policies This financial report is a special purpose financial report prepared in order to satisfy the reporting requirements of the Roman Catholic Church in Victoria. The Trustees for the Catholic Archdiocese of Melbourne (herein after called "the Archdiocese") have determined that they are not a reporting entity. The financial report have been prepared in accordance with the following Australian Accounting Standards: AAS5 AAS8 Materiality Events occurring after the reporting date No other Australian Accounting Standards, Urgent Issue Group Consensus Views or other authoritative pronouncements have been applied. The financial report has been prepared on a historical cost basis and does not take into account changing values, or except where specifically stated, current valuations of non current assets. The following specific accounting policies, which are consistent with the previous period unless otherwise stated, have been adopted in the preparation of this financial report. (a) Income Tax As part of the Roman Catholic Church in Victoria, the Archdiocese falls under the exemption for Religious organisations as defined under Section 5-5 of the Income Tax Assessment Act (b) Investments All the investments of the Archdiocese have been recorded at their historical cost and do not take into account changing values except for those investments which are managed by external Fund Managers or directly invested in shares listed on the stock exchange, and in these cases, all investments have been marked to market value. 7

10 CTJH EDA for the Diocese of Melbourne ABN: And Controlled Entities Consolidated Notes to the Financial Statements for the year ended 31 December Statement of Significant Accounting Polices (c) Fixed Assets Fixed assets of the Archdiocese are included at cost, independent or Trustee valuations. All assets excluding freehold land and buildings (see Note 1 (d) } are depreciated over their useful life on the following basis (i) Motor Vehicles Diminishing value (ii) Computer Equipment Straight line over 3 years (iii) Industrial Airconditioning Units Straight line over 1 years (iv) Other Assets Straight line over 5 years (d) Freehold Land and Buildings (i) Used for Commercial Purposes Freehold land and buildings of the Archdiocese other than those controlled by the Parishes, which are used for commercial purposes are amortised over their useful life. Any improvements are amortised over the remaining estimated useful life of the property. (ii) Used for Non - Commercial Purposes Freehold land and buildings of the Archdiocese other than those controlled by the Parishes, which are not used for commercial purposes are not amortised. 8

11 CTJH EDA for the Diocese of Melbourne ABN: And Controlled Entities Consolidated Notes to the Financial Statements for the year ended 31 December Statement of Significant Accounting Polices (e) (i) Employee Entitlements Long Service Leave (LSL) The Archdiocese provides for LSL for all permanent employees within the Diocesan office from the date of commencement until 15 months after termination of reasonable prospect of future employment. If an employee transfers or commences with a Parish or Agency office within 12 months of termination of employment at the Diocesan office then the LSL entitlement is transferred to that Parish or Agency, upon request within 13 months of the last day of service at the Diocesan office. (ii) Annual Leave (AL} The Fund provides for AL for all permanent employees within the Diocesan office from the date to commencement, until the date of termination. (iii) Movement in Entitlements The increase/( decrease) in the entitlements for the current year were as follows Long service leave Annual leave 241,66 129, , ,42 163,342 31,762 (f) Comparative Figures Where required by Accounting Standards comparative figures have Standards comparative figures have been adjusted to conform with changes in presentation for the current financial year. 2 Roman Catholic Trusts Corporation Legislation was enacted by the Parliament of Victoria in 197 which provided for the creation of Corporate Bodies of Trustees in which property belonging to the Roman Catholic Church in Victoria may be vested, and for other purposes. The Roman Catholic Trusts' Corporation for The Diocese of Melbourne was constituted on the 13 January 198 to act as Corporate Trustee for the purpose of holding, managing and dealing with property in Trust for the benefit of the Archdiocese of Melbourne. 9

12 CTJH EDA for the Diocese of Melbourne ABN: And Controlled Entities Consolidated Notes to the Financial Statements for the year ended 31 December Internal Trust Funds Over time funds have been given by donors or Deceased Estates to the Archdiocese, some for a specific purpose, others of a general nature. lt became common practice to refer to these funds as "Trust Funds" even though no strict trust requirement existed in the majority of cases. Each contribution of funds received, whether for a specific or general purpose, have been accounted for as a separate ''Trust Fund". The allocation depending on whether a specific purpose was indicated, or if silent, which general purpose "Trust Fund" was deemed appropriate. (a) As at the 31 December the following amounts have been consolidated into the Statement of Financial Position under the heading Internal Trust Funds Assets Cash Other receivables Investments Liabilities Trade creditors Current liabilities other Net Assets 1,42,23 69,776 17,595,618 19,67,417 3,537 3,537 19,63,88 1,61,13 137,17 16,848,18 18,586,139 18,586,138 Equity Accumulated funds Corpus funds Total Equity 13,481,642 5,582,238 19,63,88 13,3,91 5,582,238 18,586,138 (i) At the 31 December the cash figure is made up of Cash at Bank The NAB - main account figure is a derived figure used to balance each individual ''Trust Fund". 1,42,23 1,42,23 1,61,13 1,61,13 1

13 CTJH EDA for the Diocese of Melbourne ABN: And Controlled Entities Consolidated Notes to the Financial Statements for the year ended 31 December Internal Trust Funds (ii) At the 31 December the Current Liabilities Other amount comprises Accrued expenses other (b) For the year ended 31 December 213 the following amounts have been consolidated into the Statement of Comprehensive Income of under the heading Internal Trust Funds. Income Donations Investment- capital growth Investment- interest & dividend Total Income Other Expenditure Audit Fees Bank charges Distribution of Income Donations Investment expenses Stipends Total Other Expenditure Internal Transfers Accounting General contributions Interest recharge Total Internal Transfers Total Expenditure Operating Surplus for year Accumulated funds as at 1 January 213 Trf to Arch Direct Funds Accumulated funds as at 31 December , ,676 79,638 1,499, , ,64 25,783 4, 68,268 17, , ,668 1,23, ,823 13,3,91 1,919 13,481,642 74, , ,833 1,335,47 1, ,513 86,917 22,169 7,928 16, ,5 45,38 345,677 1,46,65 288,442 15,151,211 (2,435,752) 13,3,91 11

14 CTJH EDA for the Diocese of Melbourne ABN: And Controlled Entities Consolidated Notes to the Financial Statements for the year ended 31 December Cash Cash at Bank Petty Cash 5,584,73 7, 5,591,73 5,313,325 7, 5,32,325 5 Trade Receivables Trade debtors Provision for uncollected quota fund income Debtors - general other systems Recoverable costs from CatholicCare 2,828,479 (535,83) (33,987) 785 2,259,447 3,87,23 (435,83) 68, ,72,838 6 Other Receivables Accrued income - other Accrued interest - income GST paid 1,737,996 44, ,629 1,952,58 2,423,5 41,563 (568,28) 1,896,855 7 Investments (a) Current National Australia Bank Term deposits Catholic Development Fund Funds at call Term deposits 1,686,76 66,417 6,778,341 9,124,834 1,481,615 1,427,564 6,772,884 18,682,62 (b) Non Current Investment properties Shares not quoted on stock exchange Share quoted on stock exchange Convertible notes 72,969,99 9,43, ,18 78, 165,163,31 75,476,533 79,41, , , ,858,667 8 Current Assets Other Prepayments Sundry costs 64,544 (16,82) 588, ,91 8, ,46 12

15 CTJH EDA for the Diocese of Melbourne ABN: And Controlled Entities Consolidated Notes to the Financial Statements for the year ended 31 December Loans (a) Non Current Assets Loans to parishes - serviced sites Loans to others Loan - Retirement Investment Fund 5,452 1,463,8 5, 18,81 6,65,52 48,973 1,549,933 5,18,81 6,779,77 (b) Non Current Liabilities 1 Work in Progress Catholic Development Fund Capital and property Parish projects 81,228,32 81,228,32 3,89, ,294 4,329,548 83,23,26 83,23,26 1,87,979 1,363,473 3,171, Fixed Assets (a) Furniture and fittings Accumulated costs Less Accumulated depreciation 975, ,143 83,395 1,72, , ,987 (b) Plant and equipment Accumulated costs Less Accumulated depreciation 4,343,724 1,671,718 2,672,6 4,1 4,424 1,175,141 2,965,283 (c) Motor vehicles Accumulated costs Less Accumulated depreciation 1,73,313 63,19 47,123 1,59,9 471,89 587,919 (d) Computer equipment and software Accumulated costs Less Accumulated depreciation 3,345,85 2,581, ,631 3,99,156 3,17,89 2,293, ,828 4,496,18 13

16 CTJH EDA for the Diocese of Melbourne ABN: And Controlled Entities Consolidated Notes to the Financial Statements for the year ended 31 December Property (a) Equity in property Mercy College 1,22 1,22 Archdiocese equity in Carlton Seminary 8,234,639 8,234,639 Rice Village unit 11,271 11,271 8,247,13 8,247,13 (b) (c) Properties under construction St Catherine's - Balwyn 584,4 64, ,4 64,836 Freehold land and buildings Freehold land & buildings at cost 57,937,384 57,937,384 Building improvements 2,64,183 2,232,278 Property purchase - non service sites 45,357,564 43,26,915 15,899,131 13,196,576 Accumulated depreciation - buildings 5,787,544 5,499,736 1,111,587 97,696,84 13 Employee Deductions 19,197,758 16,548,85 Catholic Superannuation Fund clearing 29,695 15,486 Other superannuation fund clearing 2,594 1,14 Group tax (2,82) (2,41) Suspense - salaries clearing (27,351) (41,47) Salary sacrifice clearing 33, ,47 Social club 9,955 4, ,34 319, Employee Entitlements Long service leave 2,74,823 1,833,217 Annual leave 1,37,958 1,241,195 3,445,78 3,74,412 14

17 CTJH EDA for the Diocese of Melbourne ABN: And Controlled Entities Consolidated Notes to the Financial Statements for the year ended 31 December Current Liabilities Other Accrued expenses - other 1 '111,599 1,129,98 Accrued purchase of stock for resale 336, ,524 GST collected 28,455 Collection - Holy Places 5,291 5,275 Collection - Holy Father ,519 Collection - Apostleship of Sea 1,292 1,292 Collection - DEAF Appeal 14,486 5,955 Charitable - Bushfire Appeal 4, ,291 Other creditors 18,412 18,211 Unpaid commitments 21, ,81 Workcare- premiums clearing (42,92) (37,751) 1,689,181 2,92, Net Assets are represented by Funds held on behalf of Diocesan General Purpose Funds 139,21, ,586,314 Diocesan Pastoral and Development Fund 17,73,569 15,265,953 Education of Priests 16,237,995 14,122,59 Religious Education Text 4,219,888 4,94,478 Internal Trust Funds 19,63,88 18,586,138 Archbishop's Funds 25,993,693 26,491, ,447, ,146, Financial Instruments (i) Financial instruments assets Cash and liquid assets 5,591,73 5,32,325 Loans 6,65,52 6,779,77 Total Financial instruments assets 12,241,755 12,1,32 Catholic Development Fund Loans 81,228,32 83,23,26 Total Financial Instruments Liabilities 81,228,32 83,23,26 (ii) Liquidity Assets Variable Interest rates Deposits as Call 66,417 1,427,564 Variable Interest rates Term Deposits 8,464,417 8,254,499 Variable Interest rates Convertible Notes 78, 755,475 Stock Exchange Shares 983,18 585,141 Managed Funds 9,43,132 79,41,518 11,318,145 99,64,197 Liabilities Catholic Development Fund Loans 81,228,32 83,23,26 Interest Risk 15

18 CTJH EDA for the Diocese of Melbourne ABN: And Controlled Entities Assets Variable Interest rates Deposits as Call Variable Interest rates Term Deposits Variable Interest rates Convertible Notes Stock Exchange Shares Managed Funds 2.88% 3.93% 8.9% 24.78% 17.86% 2.45% 6.5% 7.39% 9.93% 4.94% Liabilities Catholic Development Fund Loans 5.4% 5.4% 18 Reconciliation of Cash Flow from Operating Activities with the Operating Surplus for year Operating surplus for year Non cash flows in operating surplus Investment - capital growth Investment- profit on sale Profit on sale of operating assets Depreciation Movement in operating assets & liabilities (Decrease)/increase in current assets Increase/( decrease) in current liabilities Net cash flow from operating activities 4,31,118 (11,52,182) (2,678,213) (344,381) 1,537,169 6,277,53 {2,12,41) (4,529,847) 1,21,523 {7,25,389) {921,56) 116,78 1,512, 12 1,156,414 (687,335) (4,864, 113) 16

19 CTJH EDA for the Diocese of Melbourne ABN: And Controlled Entities Consolidated Notes to the Financial Statements for the year ended 31 December Contingent Asset Insurance Recoveries The Archdiocese is having ongoing discussions with the Catholic Church Insurance Limited (CCI) for the recovery of certain expenditure incurred by the Archdiocese in relation to notified complaints. Total recoveries to date Recoveries this period Since balance date and the date of this report further recoveries from CC! have been received. lt Is possible that further significant recoveries will be received in future. 1,8,186 1,138,369 8,941, ,77 2 Contingent Liabilities (a) Debts for organisation within the Archdiocese The Archbishop has provided a Note in Hand to the National Australia Bank in respect of debts for other organisations within the Archdiocese. 7,576,5 7,576,5 (b) Unrelated Deposits Under the provision of the Corporations Act 21, Sub Section 111 AT - Exemption to "Charitable" Bodies, the Archdiocese has acknowledge a a liability to unrelated depositors with the Catholic Development Fund As at 31 December 213 the Catholic Development Fund had a surplus (deficiency) of funds available to meet the demands of unrelated depositors 1,43,55 45,65,51 17

20 CTJH EDA for the Diocese of Melbourne ABN: And Controlled Entities Consolidated Notes to the Financial Statements for the year ended 31 December Contingent Liabilities (b) Unrelated Deposits This surplus/( deficiency) has been determined as follows Funds available to satisfy unrelated depositors Unrelated loans Retained earnings held by the Catholic Development Fund Total funds available Unrelated deposits Surplus/( deficiency) of funds available 215,567,84 116,589, ,157, ,114,23 1,43,55 262,21,193 14,79, ,, ,349,842 45,65,51 The Archbishop believes that the Catholic Development Fund is capable of meeting any request for repayment by these unrelated depositors. (c) RC Education Supplies Pty Ltd The RC Education Supplies Pty Ltd, is a separate company set up by the Archdiocese, to acquire and manage motor vehicles for Diocesan clergy. The Archdiocese has underwritten any deficiency incurred by the company. as at 31 December 213 the accumulated deficiency was Nil (212 Nil} In addition the company has a contingent liability in respect of unexpired financial lease contracts, which is funded by contractual payments due from the participating parishes. 1,428,24 1,591,918 18

21 CTJH EDA for the Diocese of Melbourne ABN: And Controlled Entities 22 Catholic Archdiocese of Melbourne manages the accounts of Episcopal Trustees, Parish Funds and Priests Retirement Investment Fund and as at 31 December 213 held the following balances: (a) Episcopal Trustees Cash 1,258,142 1,22,799 Investments 676, ,822 Property & Other Assets 9,416,535 9,526,41 Liablities (219,1) (155,382) Total Accumulated Funds Held 11,132,353 1,788,649 (b) Parish Funds Cash 3,553 2,288 Investments 3,399,324 3,613,36 Property & Other Assets 35,744 26,233 Total Accumulated Funds Held 3,465,621 3,659,827 (c) Priests Retirement Investment Fund Investments 36,835,357 34,834,818 Property & Other Assets 2,652,3 2,747,494 Liablities (14,614,9) (1 4,68,31 ) Total Accumulated Funds Held 24,872,487 22,974,12 19

22 CTJH EDA INDEPENDENT AUDIT REPORT TO THE TRUSTEES OF THE ROMAN CATHOLIC TRUSTS' CORPORATION Chaundy & Henry CHARTERED ACCOUNTANTS A.B.N P W Selkng F C A D A Manton F C A Scope The financial report and Trustees' responsibility We have audited the attached financial repot1, being a special purpose financial report. The financial report comprises the Statement of Financial Position, The Statement of Comprehensive income, Cash Flows, accompanying notes to the financial statements, and the RCTC Tmstee Member and Treasurer's statement for the Roman Catholic Trusts' Corporation for the year ended 31st December 213. The Trustees of the Corporation are responsible for the preparation and true and fair presentation of the financial report and have determined that the accounting policies used and described in Note 1 to the financial statements are appropriate to meet the needs of the members. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial repo11. The financial report has been prepared for distribution to members. We disclaim any assumptions of responsibility for any reliance on this report or on the financial report to which it relates to any person other than the members, or for any purpose other than that for which it was prepared. Audit Approach We conducted an independent audit in order to express an opinion to the Trustees. Our audit was conducted in accordance with Australian Auditing Standards, in order to provide reasonable assurance as to whether the financial report is free of material misstatement. The nature of an audit is influenced by factors such as the use of professional judgement, selective testing, the inherent limitations of internal control, and the availability of persuasive rather than conclusive evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected. We performed procedures to assess whether in all material respects the financial repo11 is presented fairly in accordance with the accounting policies described in Note 1, so as to present a view which is consistent with our understanding of the Trusts' financial position, and of its performance as represented by the results of its operations. These policies do not require the application of all Accounting Standards and other mandatory professional rep11ing requirements in Australia. No opinion is expressed as to whether the accounting policies used and described in Note 1, are appropriate to the needs ofthe members. We formed our audit opinion on the basis of these procedures, which included: examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial report, and assessing the appropriateness of the accounting policies and disclosures used and the reasonableness of significant accounting estimates made by the Trustees 32 Church Street. Abbotsford. Vie. 367 Phone (3) Fax (3) Ema111nfo@chaundyandhenry com au In association with Chaundy & Henry Services Pty. Lld. A. B. N Liability limited by a scheme approved under Professional Standards Legislation

23 CTJH EDA While we considered the effectiveness of management's internal controls over financial reporting when determining the nature and extent of our procedures, our audit was not designed to provide assurance on internal controls. Independence In conducting our audit, we followed applicable independence requirements of Australian professional ethical pronouncements. Audit Opinion We have only verified freehold properties contained in the accounts and accordingly, we express no opinion as to freehold properties, the title deeds of which are in the name of the Corporation but the equity belongs to the individual parishes. In our opinion, the financial statements of the Roman Catholic Trusts' Corporation are properly drawn up so as to give a true and fair view, in accordance with the basis of accounting policies described in Note I to the financial statements. Subject to the above and matters outlined in Note 1, in our opinion: (iii) (iv) all trust monies have been properly kept and accounted for; the accounts are properly drawn up so as to give a true and fair view of the state of affairs of the Roman Catholic Trusts' Corporation for the Diocese of Melbourne as at the 31st December 213, and results for the period ended on that date. CHAUNDY & HENRY Chartered Accountants P. W. SELKRIG Partner Melbourne, 2ih day of March 214