INSTITUTE OF NOTRE DAME DES MISSIONS INC.

ABN: 25 191 803 876

SPECIAL PURPOSE FINANCIAL REPORTFOR THE YEAR ENDED 31 DECEMBER 2019

Page No:

CONTENTS

Statement by Members of the Leadership Team 1

Statement of Profit or Loss and other Comprehensive Income 2

Statement of Financial Position 3

Statement of Changes in Equity 4

Statement of Cash Flows 5

Notes to the Financial Statements 6

Auditors Report 12

04 March

INSTITUTE OF NOTRE DAME DES MISSIONS INC.ABN: 25 191 803 876

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2019

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Notes 2019 2018

$ $

IncomeRevenue 3 3,504,823 1,397,505

Less ExpensesProperty 162,309 158,597 Community & Personal 321,043 318,362

Intra Congregational Expenses 666,007 917,710 Administration 206,134 197,406 Travel Meetings and Assemblies 146,806 70,885 Formation 79,910 112,082 Depreciation 60,093 63,812 Other 67,061 65,245

Total Expenses 1,709,363 1,904,099

OPERATING SURPLUS 1,795,460 (506,594)Abnormal Items 11 350,808 0

Reallocation of Trust Income (1,271,224) 1,727,551

NET SURPLUS 875,044 1,220,957

The accompanying notes form part of these financial statements.

INSTITUTE OF NOTRE DAME DES MISSIONS INC.ABN: 25 191 803 876

STATEMENT OF FINANCIAL POSITIONAS AT 31 DECEMBER 2019

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Notes 2019 2018ASSETS $ $CURRENT ASSETSCash and Cash Equivalents 4 2,305,066 2,465,086 Investments 5 2,639,444 2,472,401 Other Assets 6 212,289 97,687

TOTAL CURRENT ASSETS 5,156,799 5,035,174

NON-CURRENT ASSETSInvestments 5 17,821,615 15,232,548 Other Assets 6 186,847 230,647 Property, Plant and Equipment 8 10,913,900 10,236,938 TOTAL NON-CURRENT ASSETS 28,922,362 25,700,133

TOTAL ASSETS 34,079,161 30,735,307

LIABILITIESCURRENT LIABILITIESCreditors and Payables 9 339,999 292,388 Provisions 7 8,665 9,150 TOTAL CURRENT LIABILITIES 348,664 301,538

NON-CURRENT LIABILITIESAmounts held in Trust 10 14,641,301 13,370,079

TOTAL NON CURRENT LIABILITIES 14,641,301 13,370,079

TOTAL LIABILITIES 14,989,965 13,671,617

NET ASSETS 19,089,196 17,063,689

EQUITYProvince Funds 13,705,296 12,830,252 Asset Revaluation Reserve 5,383,900 4,233,437

TOTAL EQUITY 19,089,196 17,063,689

The accompanying notes form part of these financial statements.

INSTITUTE OF NOTRE DAME DES MISSIONS INC.ABN: 25 191 803 876

STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 31 DECEMBER 2019

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2019 Opening BalanceOperating

Surplus Movement Closing Balance$ $ $ $

Province Funds 12,830,252 875,044 13,705,296 Asset Valuation Reserve 4,233,437 1,150,463 5,383,900

17,063,689 875,044 1,150,463 19,089,196

2018 Opening BalanceOperating

Surplus Reallocation Closing Balance$ $ $ $

Province Funds 11,599,295 1,220,957 10,000 12,830,252 Asset Valuation Reserve 4,243,437 (10,000) 4,233,437

15,842,732 1,220,957 - 17,063,689

The accompanying notes form part of these financial statements.

INSTITUTE OF NOTRE DAME DES MISSIONS INC.ABN: 25 191 803 876

STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31 DECEMBER 2019

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Notes 2019 2018 $ $

Cash Flows from Operating Activities Receipts from various sources 1,766,252 4,380,715 Payments made for operating activities (1,296,991) (3,081,987)

Net Cash Provided by/(to) Operating Activities 12 469,261 1,298,728

Cash Flows from Investing Activities

Australian Provincial Fund (1,466,489) (2,098,086)

Retirement Fund 0 0

Investment Fund 0 0

Southern Cross Building Loan 43,800 43,800

Asset additions (6,592) (45,365) Proceeds on /(Payment for) Property, Plant and Equipment 800,000 560,390 Net Cash used in Investing Activities (629,281) (1,539,261)

Cash Flows from Financing Activities 0 0

Net Increase/(Decrease) in Cash Held (160,020) (240,533)

Cash at Beginning of the Financial Year 2,465,086 2,705,618

Cash at the End of the Financial Year 4 2,305,066 2,465,086

The above statement should be read in conjunction with the accompanying notes

INSTITUTE OF NOTRE DAME DES MISSIONS INC.ABN: 25 191 803 876

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2019

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1. BACKGROUND

The Nature and purpose of amounts held in trust

Investment Fund - Funds held for the support of mission work and overseas commitments to the Congregation

Retirement Fund- Funds for the care of the Sisters in Australia

Specified Funds: Study, Health, Solidarity, and Bequests and Legacy Funds

Australian Province Funds (not held in trust) - funds the operations of the Australian Province

2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

(a) Statement of Compliance

AASB 101 : Presentation of Financial StatementsAASB 107: Cash Flow Statement AASB 108: Accounting Policies, Changes in Accounting Estimates and ErrorsAASB 1048: Interpretation of StandardsAASB 1054: Australian Additional Disclosures

The Institute of Notre Dame Des Missions Inc. operates as the Sisters of Our Lady of the Missions and is an international Missionary Congregation of Religious Women founded in Lyon, France in 1861. The Missions are based in 23 countries across the world where the sister are dedicated to the education and advancement of women and children in need, especially those marginalised through health, poverty, politics and discrimination of any kind.

The Institute holds amounts in trust for specific beneficiaries which are represented by designated assets as follows:

As at 31 December 2019, the Investment fund totalled $5,440,240 (2018: $4,991,606) and was invested as detailed at Note 11.

As at 31 December 2019, the Retirement fund totalled $8,049,043 (2018: $7,208,055) and was invested as detailed at Note 9.

As at 31 December 2019, Study, Health, Solidarity, and Bequests and legacy funds are reflected on the balance sheet.

As 31 December 2019, the Australian Province Funds totalled $13,611,034 (2018: $12,830,252)and was represented by the remaining assets net of liabilities.

This financial report is a special purpose report prepared to satisfy the financial reporting requirements of Australian Charities and Not-for-profits Commission Act 2012 and the Association Incorporation Act 1987 (WA).

The financial report has been prepared in accordance with the requirements of the following Australian Accounting

INSTITUTE OF NOTRE DAME DES MISSIONS INC.ABN: 25 191 803 876

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2019

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(b) Basis of preparation

(c ) Financial instruments

Recognition

Financial assets at fair value through profit and loss

(d) Property plant and equipment

Furniture & Equipment 5%Office Equipment 7.5% to 40%Motor Vehicles 15%

Furniture and Equipment and motor vehicles are stated at cost less accumulated depreciation.

The following rates reflecting the estimated useful lives are used in the calculation of depreciation:

Freehold property (land and buildings) has been revalued over a number of years. The revaluation totalling $5,383,900 has been reflected in the Asset Revaluation Reserve at 31 December 2019 (2018:$4,243,436) .

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less.

The following specific accounting policies, which are consistent with the previous period unless otherwise stated, have been adopted in the preparation of this report:

Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.

Cash and Cash Equivalents

A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management Realised and unrealised gains and losses arising from changes in the fair value of these assets are included in the income statement in the period in which they arise.

2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)

No other Australian Accounting Standards, Australian Accounting Interpretations or other authoritative pronouncements of the Australian Accounting Standards Board have been applied.

The financial report is prepared on an accruals basis using historic cost, except for property plant and equipment and financial instruments that are measured at revalued amounts as explained in the accounting policies below.

Historical cost is generally based on the fair values of the consideration given in exchange for goods and services. All amounts are presented in Australian dollars, unless otherwise noted. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis.

INSTITUTE OF NOTRE DAME DES MISSIONS INC.ABN: 25 191 803 876

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2019

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(e) Revenue and Other Income

(f) Expenses

(g) Goods and Services Tax (GST)

(h) Comparative Figures

2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)

Revenue is measured at the value of the consideration received or receivable. Revenue includes annual stipends, pensions and investment income, which includes dividends and interest. Dividend income and income distributions are recognised on an accruals basis.

Expenses are recognised as they are incurred and reported in the financial year to which they relate.

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST.

Comparative figures may have been adjusted to conform to changes in presentation for the current year.

INSTITUTE OF NOTRE DAME DES MISSIONS INC.ABN: 25 191 803 876

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2019

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2019 2018$ $

NOTE 3: REVENUE

Salaries and Pensions 532,383 590,740

Donations, Grants & Scholarships 214,303 376,406

Bequests and Legacy 0 29,755

Investment and Finance Income 1,075,767 895,895

Realised & Unrealised Gains and Losses 1,628,130 (604,268)

Specified Fund Income 12,313 18,387

Profit on sale of assets (refer abnormal items) 0 36,417 Other 41,927 54,173

3,504,823 1,397,505

NOTE 4: CASH AND CASH EQUIVALENTS

Cheque and Savings accounts 687,921 932,661

Restricted Accounts 1,538,439 1,457,069

Community Bank accounts 77,763 73,131

Petty cash 943 2,225

2,305,066 2,465,086

NOTE 5: INVESTMENTSCURRENT

Retirement Fund 1,834,621 1,672,240 Investment Fund 804,823 800,161 Total Current Investments 2,639,444 2,472,401

NON-CURRENTRetirement Fund 6,214,422 5,535,816 Australian Provincial Fund 6,971,776 5,505,286 Investment Fund 4,635,417 4,191,446 Total non-current Investments 17,821,615 15,232,548

Total investments 20,461,059 17,704,949

NOTE 6: OTHER ASSETSCurrent 212,289 97,687 Non-Current 186,847 230,647

399,136 328,334

NOTE 7: PROVISIONSAccrued Annual Leave & LSL 4,795 5,989 Other 3,870 3,161

8,665 9,150

INSTITUTE OF NOTRE DAME DES MISSIONS INC.ABN: 25 191 803 876

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2019

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2019 2018 $ $

NOTE 8: PROPERTY, PLANT AND EQUIPMENTLand and Buildings at valuation 10,480,000 9,749,537

Furniture & Equipment 609,029 609,029 Less: Accumulated Depreciation (243,214) (202,568)

365,816 406,461

Office Equipment 27,254 20,662 Less: Accumulated Depreciation (19,462) (16,643)

7,793 4,019

Motor Vehicles 182,696 182,696 Less: Accumulated Depreciation (122,404) (105,775)

60,292 76,921

Total Property Plant and Equipment 10,913,900 10,236,938

Note 9: CREDITORS AND PAYABLES

Creditors - Other 5,931 6,121 Credit Card - ANZ Visa (458) (2,162)Donations Payable 75,085 30,099 Payables - Restricted Funds 259,441 258,330

339,999 292,388

Note 10: NON CURRENT LIABILITIESAmounts held in trustInvestment Fund 5,440,240 4,991,606

Retirement Fund 8,049,043 7,208,055

Specified Funds:

- Study Fund 222,246 232,088

- Health Fund 61,675 49,362

- Solidarity Fund 204,909 205,722

- Bequests and Legacies 663,188 683,246

1,152,018 1,170,418 14,641,301 13,370,079

NOTE 11: ABNORMAL EXPENSESProfit (Loss) on Sale of Property 380,000 0 Relocation costs (29,192) 0

350,808 0

INSTITUTE OF NOTRE DAME DES MISSIONS INC.ABN: 25 191 803 876

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2019

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2019 2018 $ $

NOTE 12: CASH FLOW INFORMATIONReconciliation of Cash Flows from Operations with Operating SurplusOperating surplus 875,044 1,220,957 Add / Less non-cash items:Depreciation 60,093 63,812 Gain on disposal of assets (380,000) (30,388)Changes in assets and liabilities:(Increase)/decrease in other current assets (114,604) 4,438 (Decrease)/Increase in Creditors and other Payables 29,213 36,863 (Decrease)/Increase in Provisions (485) 3,045

469,261 1,298,727

NOTE 13: CONTINGENT LIABILITIESThere are no contingent liabilities at 31 December 2019 (2018: nil)

Liability limited by a scheme approved under Professional Standards Legislation.

MMS Consulting Pty Ltd Chartered Accountants ABN 15 131 024 158 P.O. Box 194 Doncaster Vic 3108 (03) 9840 6999 www.mmsconsulting com.au

INDEPENDENT AUDITOR’S REPORT

To the Leadership Team of the Institute of Notre Dame Des Missions Inc.

I have audited the accompanying financial report, being a special purpose financial report, of the Institute of Notre Dame Des Missions Inc., which comprises the statement of financial position as at 31 December 2019, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year ended then ended, and notes to the financial statements, including a summary of significant accounting policies, and the Statement by Members of the Leadership Team.

In my opinion, the financial report of the Institute of Notre Dame Des Missions Inc. has been prepared in accordance with Division 60 of the Australian Charities and Not-for-profits Commission Act 2012 including:

(a) giving a true and fair view of the registered entity’s financial position as at 31 December 2019 and of its performance for the year then; and

(b) complying with Australian Accounting Standards to the extent described in Note 2 and the Association Incorporation Act 1987 (WA).

Basis of opinion

I conducted my audit in accordance with Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report. I am independent of the registered entity in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Emphasis of Matter - Basis of Accounting

I draw attention to Note 2 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the registered entity’s financial reporting responsibilities under the ACNC Act. As a result, the financial report may not be suitable for another purpose. My opinion is not modified in respect of this matter.

Leadership Team Members’ Responsibility for the Financial Report

The Leadership Team of the registered entity is responsible for the preparation of the financial report that gives a true and fair view and have determined that the basis of preparation described in Note 2 to the financial report is appropriate to meet the requirements of the ACNC Act, the Association Incorporation Act 1987 (WA) and the needs of the members. The Leadership Teams’ responsibility also includes such internal control as the responsible entities determine is necessary to enable the

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preparation of a financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the Leadership Team is responsible for assessing the registered entity’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the responsible entities either intend to liquidate the registered entity or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the audit of the Financial Report

My objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report.

As part of an audit in accordance with Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the registered entity’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by responsible entities.

• Conclude on the appropriateness of responsible entities’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the registered entity’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the registered entity to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

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• I communicate with the Leadership Team regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Dr Margaret M Salter FCA PhD Dated this 4th day of March 2020

70 Church Road Doncaster VIC. 3108