2015

annual report

a n n u a l r e p o r t 2 0 1 5 | C a t H o l I C D e V e l o p M e n t F u n D2

Acknowledgement of country and traditional ownersWe acknowledge Aboriginal Peoples are Australia’s first Peoples and the Traditional Owners and Custodians of the land on which

we work to build a stronger, fairer and kinder society that values children, young people, families and individuals.

a n n u a l r e p o r t 2 0 1 5 | C a t H o l I C D e V e l o p M e n t F u n D 3

Acknowledgement of country and traditional owners 2

About us 4

A message from Bishop Bill Wright 5

A message from the Chairman and Fund Manager 6

Concise financial reports 7

Catholic Development Fund directory 9

Catholic Development Fund contacts 10

Contents

DISCLAIMER

The Catholic Development Fund (CDF) in the Diocese of Maitland-Newcastle 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. The CDF is not subject to the normal disclosure requirements of a financial institution. Deposits with the CDF are guaranteed by CDPF Limited, a company established by the Australian Catholic Bishops Conference for this purpose. We welcome your investment with the CDF 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.

In addition, neither the Corporation of the Trustees of the Roman Catholic Diocese of Maitland-Newcastle, nor the CDF is prudentially supervised by the Australian Prudential Regulation Authority; contributions to the CDF do not obtain the benefit of the depositor protection provisions of the Banking Act 1959; and the CDF is designed for investors who wish to promote the charitable purposes of the CDF.

ON THE COVER St Aloysius Catholic Primary School, Chisholm, NSW.

a n n u a l r e p o r t 2 0 1 5 | C a t H o l I C D e V e l o p M e n t F u n D4

About usMission statementThe Maitland-Newcastle Catholic Development Fund (CDF) exists to provide prudent financial management and to further the pastoral

mission of the Catholic Church in the diocese. By harnessing the financial resources of the Catholic community, we are able to provide

cost-effective financial arrangements for capital works and other essential pastoral programs.

Where we have come fromThe CDF has operated in the Diocese of Maitland-Newcastle for over 50 years. The CDF assists with the management of the finances for

the diocese (agencies, parishes, schools etc) and also offers members a range of investment products. Over the past five years the CDF

has focused effort on building its capital base and strengthening its risk management framework so as to provide an adequate financial

’buffer’ against an uncertain future economic environment.

Our products and services

Investment accounts for clergy, parishes, Catholic schools, religious congregations, Church agencies, members of the community

and other Catholic entities.

Cheque issuance facilities and other financial services for clergy, parishes, Catholic schools, religious congregations, Church

agencies and other Catholic entities (subject to APRA regulations).

Loans for the building of churches and schools and other church-related activities.

Other financial services such as direct debiting, online transactions and funds transfers.

Direct Debit request Form

APPLicAtioN to PAY PLANNeD

GiViNG coNtributioNs

REGULAR ELECTRONIC PLANNED GIVING

I/We ________________________________________________________________________

Name/s of parishioner/s giving the DDR

of __________________________________________________________________________

Parish name/suburb

authorise you ________________________________________________________________

____________________________________________________________________________

Name of debit user APCA user ID number

to arrange for funds to be debited from my/our account at the financial institution

identified below through the Bulk Electronic Clearing System (BECS).

This authorisation is to remain in force in accordance with the terms described in the

Application to pay Planned Giving Contributions by direct debit.

__________________________________________________________ ____/____/____

Signature Date

__________________________________________________________ ____/____/____

Signature Date

Dear Father,I/We hereby make application to pay my/our Planned Giving contribution for

____________________________________________________________________________

Parish name/suburb

1. Name ____________________________________________________________________

Address ____________________________________________________________________

____________________________________________________________________________

Phone ______________________________________________________________________

2. Value of planned giving promise $ ____________________________________ (monthly)

3. This authority will commence on ____/____/____

Date

4. My Planned Giving Number is

5. I would like my monthly contribution to be debited

as per the attached debit requestOR

from my credit cardPlease debit my Bankcard Mastercard Visa

Card Number

Expiry date ____/____/____I/We will advise the parish priest of the cancellation of this authority and will not hold the

parish priest responsible for any action arising from my/our not doing so.

__________________________________________________________ ____/____/____

Signature Date

__________________________________________________________ ____/____/____

Signature Date

I/We request that you debit my/our account in accordance with our agreement

$__________________________________________________________ ____/____/____

Amount to be debited First payment date

The frequency of the debit is once per month. If the direct debit should fall on a

weekend or public holiday, it will not be actioned until the next working day.

The payment is for my/our Planned Giving

contributions identified by Planned Giving Number

___________________________________ ___________________________________

Signed by customer Signed by customer

____________________________________________________________________________

Name of financial institution____________________________________________________________________________

Name of financial institution

–

BSB Account number

Customer’s authority

Details of account to be debited (all account details must be supplied)

Parish to complete

Please tick the box

Agreement

GIVING MADE EASY

The Catholic Development Fund

Diocese of Maitland-Newcastle 025223

A rAnge of products

The CDF offers a range of products to our members.

As well as the student account, members can utilise

the following:

• fixedterminvestment

• monthlyinterestterminvestment

• premiumsaveraccount

• Christmasclub

• pensioneraccount

• savingsaccount.

Thepremiumsaveraccountisan

at-callcash

managementstyleaccountwit

hfullinternetbanking

access,makingsavi

ngeasy.Itpaysaco

mpetitiverate

ofinterestandisafa

ntasticwaytosavef

oryourgoals.

Therearenofeesor

chargesandyouha

vefreeaccessto

internetbankingand

ourdirectdebitand

electronictransfer

system.Savingforyourgoa

lshasneverbeen ea

sier.

TheChristmasCluba

ccountisanexcelle

ntwayfor

parentstosaveforo

neofthemostexpen

sivetimesof

theyear.Youcanm

akedepositsintoy

ourChristmas

Clubaccountatyou

rchild’sschool.

How to find out more

Log on to our website for more information

abouttheCDFand

howitcanhelpyou

realise

yoursavingpotentia

l.Visitusonlinenow

at

www.cdfmn.com.au

Phone us on our freecall number 1800 810 330

Write to us at

Reply Paid 171

Catholic Development Fund

PO BOX 765

Newcastle NSW 2300

(No postage stamp required)

www.cdfmn.com.au

serving tHe diocese of mAitlAnd–newcAstle

STUDENT ACCOUNT

Investments with Catholic Development Fund (CDF) are guaranteed by Bishop William

Wright, Bishop of Maitland-Newcastle Diocese and CDPF Limited, a company

established by the Australian Catholic Bishops Conference for this purpose. We welcome

your investment with the CDF 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. The CDF is not subject to the provisions of the Corporation

Act 2001 nor has it been examined or approved by the Australian Securities and

Investments Commission. The CDF is also exempt from the normal requirements to have

a disclosure statement or Product Disclosure Statement under the Corporations Act

2001(Cth).Neither CDF nor the Trustees of the Roman Catholic Church for the Diocese of

Maitland-Newcastle are prudentially supervised by the Australian Prudential Regulation

Authority. Contributions to CDF do not obtain the benefit of the depositor protection

provisions of the Banking Act 1959. CDF is designed for investors who wish to promote

the charitable purposes of the Diocese.

contAct us

Ifyouhaveanyenq

uiriesortofindou

tmore,pleasegive

us a call:

cAtHolic development fund

CatholicDioceseo

fMaitland-Newcastle

841HunterStreet

NewcastleWestNSW2302

POBox756NewcastleNS

W2300

P0249791160 |

F0249791169

E cdf@mn.catholic.org.au

W www.cdfmn.com.au

wHAt is tHe cdf?

TheCDFisafinanc

ialintermediarythatexiststo

furtherthe

pastoralmissionofth

eChurchinourdioc

ese.Itdoesthisby

lending members funds to finance diocesan and parish projects.

The fund also generates income for the diocese to assist the

parishesandfundp

astoralworks.TheC

DFhasbeenoperat

ing

successfullyinthisd

ioceseforover50y

ears.Allinvestments

areguaranteedbyth

etotalassetsofthe

diocese.

A rAnge of productsThe CDF offers a range of products to our members.

As well as the student account, members can utilise

the following:

• fixedterminvestment

• monthlyinterestterminvestment

• premiumsaveraccount

• Christmasclub

• pensioneraccount

• savingsaccount.

Thepremiumsaveraccountisanat-callcash

managementstyleaccountwithfullinternetbanking

access,makingsavingeasy.Itpaysacompetitiverate

ofinterestandisafantasticwaytosaveforyourgoals.

Therearenofeesorchargesandyouhavefreeaccessto

internetbankingandourdirectdebitandelectronictransfer

system.Savingforyourgoalshasneverbeen easier.

TheChristmasClubaccountisanexcellentwayfor

parentstosaveforoneofthemostexpensivetimesof

theyear.YoucanmakedepositsintoyourChristmas

Clubaccountatyourchild’sschool.

How to find out moreLog on to our website for more information

abouttheCDFandhowitcanhelpyourealise

yoursavingpotential.Visitusonlinenowat

www.cdfmn.com.au

Phone us on our freecall number 1800 810 330

Write to us at

Reply Paid 171

Catholic Development Fund

PO BOX 765

Newcastle NSW 2300

(No postage stamp required)

www.cdfmn.com.auserving tHe diocese of mAitlAnd–newcAstle

STUDENT ACCOUNT

Investments with Catholic Development Fund (CDF) are guaranteed by Bishop William

Wright, Bishop of Maitland-Newcastle Diocese and CDPF Limited, a company

established by the Australian Catholic Bishops Conference for this purpose. We welcome

your investment with the CDF 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. The CDF is not subject to the provisions of the Corporation

Act 2001 nor has it been examined or approved by the Australian Securities and

Investments Commission. The CDF is also exempt from the normal requirements to have

a disclosure statement or Product Disclosure Statement under the Corporations Act

2001(Cth).Neither CDF nor the Trustees of the Roman Catholic Church for the Diocese of

Maitland-Newcastle are prudentially supervised by the Australian Prudential Regulation

Authority. Contributions to CDF do not obtain the benefit of the depositor protection

provisions of the Banking Act 1959. CDF is designed for investors who wish to promote

the charitable purposes of the Diocese.

contAct usIfyouhaveanyenquiriesortofindoutmore,pleasegive

us a call:

cAtHolic development fund CatholicDioceseofMaitland-Newcastle

841HunterStreetNewcastleWestNSW2302

POBox756NewcastleNSW2300

P0249791160 | F0249791169

E cdf@mn.catholic.org.au

W www.cdfmn.com.au

wHAt is tHe cdf?TheCDFisafinancialintermediarythatexiststofurtherthe

pastoralmissionoftheChurchinourdiocese.Itdoesthisby

lending members funds to finance diocesan and parish projects.

The fund also generates income for the diocese to assist the

parishesandfundpastoralworks.TheCDFhasbeenoperating

successfullyinthisdioceseforover50years.Allinvestments

areguaranteedbythetotalassetsofthediocese.

a n n u a l r e p o r t 2 0 1 5 | C a t H o l I C D e V e l o p M e n t F u n D 5

As Bishop, I feel confident I speak for the diocesan community

when I say that I am proud of the strong performance of our

Catholic Development Fund for the year to 30 June 2015. I offer

my congratulations to all concerned, highlighting those who, as

investors, make it all possible.

In this last year, with the support of the CDF, the diocese

has continued to expand housing for people living with a

disability and affordable housing as well as new offices for

CatholicCare, the social services outreach arm of the diocese.

The CDF has also supported the diocese’s expansion into early

education through its new agency, St Nicholas Early Education.

In addition, the CDF continues to fund various school

development projects. Construction has been completed for the

new primary school at Chisholm, St Aloysius. It is due largely

to the successful operation of the CDF that the diocese has the

means and the confidence to be undertaking these significant

developments of our ministries.

In Laudato Si’, Pope Francis writes, “If we acknowledge the

value and the fragility of nature and, at the same time, our God-

given abilities, we can finally leave behind the modern myth

of unlimited material progress. A fragile world, entrusted by

God to human care, challenges us to devise intelligent ways of

directing, developing and limiting our power.”

Laudato Si’ offers much food for thought and I recommend it

to you. It asks nothing less than a conversion of all peoples

to a genuine acceptance of the responsibility to care for

our common home. On a local level, it’s satisfying that the

effectiveness of the CDF enables me, through our various

agencies and instrumentalities, to sanction new ministries and

further develop existing initiatives.

I am pleased to recognise another successful year for the CDF

in supporting the life and mission of the diocese. I wish to thank

the Advisory Board members, who gave their time and expertise

so generously, and especially the Chairman, Mr Ray O’Brien,

and the Fund Manager, Mr Sean Scanlon, together with the

dedicated staff of CDF, our many agents and investors.

I commend this annual report to you.

Sincerely in Christ

Most Reverend William Wright

BISHOP OF MAITLAND-NEWCASTLE

A message from Bishop Bill Wright

a n n u a l r e p o r t 2 0 1 5 | C a t H o l I C D e V e l o p M e n t F u n D6

On behalf of the CDF Advisory Board it is with great pleasure that we present the annual report for 2015.

The Fund continued to perform well during the period, surpassing the previous year’s result. The financial

performance of the Fund for the 2014-15 year delivered a net operating surplus of $6.28m, of which

$4m was distributed to the diocese to fund numerous pastoral services and works across the Catholic

community, an increase of $2m over the previous year.

The Fund has delivered on the objective to build its capital reserves which totalled $22.8m by June 2015.

The CDF also increased its Capital Adequacy Ratio, which is a measure of its capital reserves divided

by its risk-weighted assets from 13.37% at 30 June 2014 to 15.19% by 30 June 2015. The Fund thus

sits firmly within its target Core Tier 1 capital adequacy ratio range of 14 - 16%. As result there has

been a significant increase in the distribution to the diocese. This is the fruit of a disciplined approach to

financial and capital management over the last five years.

The CDF expects that the coming period will continue to present challenges with regulatory changes

expected. We believe the Fund is now well positioned to meet that changing landscape, however, there

is certain to be some impact on the products that can be offered.

Key to the fund is its ability to support school developments, such as the recent opening of St Aloysius

at Chisholm, and redevelopment at St Joseph’s, Lochinvar, and St Pius, Adamstown, to name a few.

The provision of funding to build more affordable housing, accommodation for people we support and

new offices from which CatholicCare can provide services has grown in the past year and we expect this

to continue with development of early education centres becoming more important.

The CDF distribution allows the diocese to provide services such as youth ministries, port

chaplaincy, parish assistance and Zimmerman Services, as well as the work of CatholicCare such as

refugee services.

We thank the many loyal supporters of the Fund – our investors, our clergy and our agents allow the

Fund to do the good work of the Church. Your faith is the bedrock of the Fund and we look forward to

continuing to serve you.

Thank you to our fellow Advisory Board Members for giving your valuable time and expertise without

monetary reward. Your contribution helps keep the Fund strong and ensures good governance in the

management of investments entrusted to the Fund.

Ray O’Brien

CHAIRMAN

Ray O’Brien

CHAIRMAN

Sean Scanlon

FUND MANAGER

Sean Scanlon

FUND MANAGER

A Message from the Chairman and Fund Manager

a n n u a l r e p o r t 2 0 1 5 | C a t H o l I C D e V e l o p M e n t F u n D 7

Key Financial Indicators – Income Statement

Annual surplus of $6.28m (2014: $5.79m)

Contribution to the diocese $4.00m (2014: $2.00m)

Operating costs as a % of surplus averaging 16.0% (2014: 16.9%)

Concise Financial ReportsIncome Statement for the year ended 30 June 2015

2015$’000

2014$’000

Interest income 14,246 14,166

Interest expense (6,973) (7,403)

Net interest income 7,273 6,763

Other operating income 1 0

Operating expenses (991) (977)

Surplus for the year before diocesan distribution 6,283 5,786

Distribution to Diocese of Maitland-Newcastle (4,000) (2,000)

Surplus for the year 2,283 3,786

Revaluation of available-for-sale assets (105) 0

Other comprehensive income for the year (105) 0

Total comprehensive income for the year attributable to the Catholic Development Fund 2,178 3,786

Fund perating costs as a % of surplus - last 5 yearsS

urplus ($

M)

Op

erating costs (%)

Surplus before diocesan distribution ($M)% Operating cost/surplus

20112011

20122012

20132013

20142014

20152015

7

6

5

4

3

2

1

19%

18%

17%

26%

15%

14%

Fund total equity - last 5 years

Total equity ($M)

Eq

uity ($M

)

25

20

15

10

5

0

a n n u a l r e p o r t 2 0 1 5 | C a t H o l I C D e V e l o p M e n t F u n D8

Concise Financial Reports Balance Sheet as at 30 June 2015

2015$’000

2014$’000

ASSETS

Cash and cash equivalents 7,032 5,030

Fund investments 219,225 222,140

Loans and advances 60,895 49,820

Receivables 6 37

Total Assets 287,158 277,027

LIABILITIES

Customer investments 261,573 255,075

Payables 2,773 1,338

Provisions 51 31

Total Liabilities 264,397 256,444

Net Assets 22,761 20,583

EQUITY

Retained Profits 22,761 20,583

Total Equity 22,761 20,583

Key Financial Indicators – Balance Sheet

Loan funds advanced - $18.0m (2014: $21.2m).

Loans approved - $32.5m (2014: $20.8m)

Year End customer investments balances of $261.6m (2014:$255.1m), a increase of $6.5m (+2.6%)

Year End fund investments balance of $219.2m (2014: $222.1m), an decrease of $2.9m (-1.3%)

Fund Capital Adequacy Ratio - last 5 years

Capital Adequacy Ratio (%)

20112012

20132015

2014

CA

R (%

)

16%

14%

12%

10%

8%

Customer investments by Ministry ($261.6M)Loans by Ministry ($60.9M)

Parishes (6.4%)

Diocese (12.9%)

Education (80.7%)Parishes (1.1%)

Systemic schools (45.2%)

Other including laity (49.4%)

Diocese (4.3%)

a n n u a l r e p o r t 2 0 1 5 | C a t H o l I C D e V e l o p M e n t F u n D 9

Catholic Development Fund DirectoryFund Staff

Fund Manager Sean Scanlon

B.Com CA Dip Law Grad Dip Legal Practice

Customer Service Anne Campbell (Office Manager)

Kathryn Weekes

Cath McDonell

Frances Johnson

Sue Cummings

Financial Controller Graham Heath

B.Com CPA

Accountant: Nikki Ridgway

B.Com

Advisory Board Members

Chairman Ray O’Brien (joined 10 August 2009)

Members Jennifer Leslie (joined 17 February 2010);

(resigned 17 December 2015)

Michael O’Connor

(joined 14 October 2010)

Sean Scanlon—ex officio

(joined 10 August 2009)

Mark Harrison (joined 21 August 2014)

Other Key Groups

External Auditors PricewaterhouseCoopers

Internal Auditors PKF Lawler Partners Pty Limited

Solicitors Makinson and d’Apice

a n n u a l r e p o r t 2 0 1 5 | C a t H o l I C D e V e l o p M e n t F u n D1 0

CDF Agent Details

Adamstown

(02) 4957 1817

Wilsons Chemist 256 Brunker Road

Cessnock

(02) 4990 2673

Ryan Accounting Shop 1 & 2 Empire Centre Edward Street

Charlestown

(02) 4943 4872

Charlestown Pharmacy Shop 4, 316 Charlestown Road

Dungog

(02) 4992 2107

Country Affair 174 Dowling Street

Forster

(02) 6554 7777

Bromhead Legal 20 Wallis Street

Merriwa

(02) 6548 2031

The Merriwa Newsagency 155 Bettington Street

Muswellbrook

(02) 6543 3860

TFS Group Pty Ltd 28 Sowerby Street

Nelson Bay

(02) 4981 1044

O’Meara Property 12 Stockton Street

Raymond Terrace

(02) 4987 2492

Rachel Mulley’s Pharmacy 26 William Street

Scone

(02) 6540 1200

MacCallum Inglis Pty Ltd 198 Kelly Street

Singleton

(02) 6572 4000

Peter Dunn Real Estate 220 John Street

Taree

(02) 6552 1084

Parish Office 77 Albert Street

Toronto

(02) 4959 5711

Lake Macquarie Jetty Finance 13 The Boulevarde

Wallsend

(02) 4955 9874

Wilsons Chemist 136 Nelson Street

Catholic Development Fund Contacts

CDF Contact Details

Catholic Development Fund Diocese of Maitland-Newcastle

1800 810 330 (02) 4979 1160 (02) 4979 1169

841 Hunter Street Newcastle West NSW 2302

PO Box 765 Newcastle NSW 2300

www.cdfmn.com.au cdf@mn.catholic.org.au

p a g e 1 1a n n u a l r e p o r t 2 0 1 3 C a t H o l I C C a r eCathedral Parish Columbarium, Hamilton, NSW.

841 Hunter Street Newcastle West NSW 2302Phone 02 4979 1160 Fax 02 4979 1169 Visit us online www.cdfmn.com.auEmail cdf@mn.catholic.org.au