John Paul College Limited

ABN 14 010 160 371

Special Purpose Financial Report

For the Year Ended 31 December 2020

John Paul College Limited

Contents For the Year Ended 31 December 2020

Page

Financial Statements Directors' Report 1 Auditor's Independence Declaration 5 Statement of Comprehensive Income 6 Statement of Financial Position 7 Statement of Changes in Equity 8Statement of Cash Flows 9 Notes to the Financial Statements 10 Directors' Declaration 20 Independent Audit Report 21

John Paul College

Directors' Report 31 December 2020

1

The directors present their report on John Paul College (the College) for the financial year ended 31 December 2020.

1 General Information

Directors

The names of the directors in office at any time during, or since the end of, the year are: Mrs Helen Weissenberger (retired 23 July 2020) Mr Dominic Taylor Mr Scott Eustace Mr Kevin Gordon (retired 14 May 2020) Mrs Elizabeth Keen Mr Robin Mack Mr Robert Simpson Mr Philip Beresford Mrs Ilham Ahamed Mr Andrew Reid (appointed 23 July 2020) Mr Benjamin O’Bree (appointed 23 July 2020)

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Principal Activities

The principal activity of John Paul College during the financial year was operating a College of education.

There were no significant changes in the nature of the College's activities during the financial year. The College is a not-for-profit entity reporting under the Australian Charities and Not-for-profits Commission (ACNC) Act 2012.

Review of Operations

The operating deficit of the College amounted to $170,267

Enrolments

The College's enrolments totalled 1,859 students from the Early Learning Centre through to the Senior College and John Paul International College for 2020 (2019: 1925).

2020 2019 Prep - Yr. 12 (Federal census August 2020) 1,605 1,634 Kindy (Enrolments August 2020) 137 132 International College (Enrolments August 2020) 42 84 Early Learning Centre (Full Time Equivalent enrolments August 2020) 75 75 Total 1,859 1,925

Significant Changes in State of Affairs

No significant changes in the College's state of affairs occurred during the financial year.

John Paul College

Directors' Report 31 December 2020

2

Information on Directors

The names of each person who has been a director during the year and to the date of this report are: Mr Dominic Taylor Qualifications B.Eng (Manufacturing Engineering), B.Bus (Business Marketing); Associate

Diploma in Direct Marketing, Graduate Member of the Australian Institute of Company Directors.

Experience Community Board Member for FIRST Disability Services at Eagleby. Special responsibilities Chair of the Board of Directors, Member of the Governance Committee and

Member of the Infrastructure Committee. Mr Scott Eustace

Qualifications B.Bus., LLB (Hons), LLM and Graduate Member of Australian Institute of Company Directors.

Experience QLS Accredited Specialist in Commercial Litigation, Nationally Accredited Mediator and Director of Stokes Lawyers.

Special responsibilities Deputy Chair of the Board of Directors, Chair of the Governance Committee and Member of the Infrastructure Committee.

Mrs Elizabeth Keen Qualifications B.Nursing, Registered Nurse (RN), Certificate of Governance Practice (Governance

Institute of Australia), Member of Australian Institute of Company Directors. Experience Manager of Clinical Governance Implementation and Safety and Quality at

Australian Digital Health Agency. Special responsibilities Member of the Infrastructure Committee.

Mr Robin Mack Qualifications MBA (International Business and Entrepreneurship), B.S. (Business/Finance),

Certified Project Manager Practitioner, Graduate Member of the Australia Institute of Company Directors.

Experience Director and CEO of Innovation Transformation Pty Ltd. Special responsibilities Member of the Governance Committee.

Mr Robert Simpson Qualifications B.A., B.E. (Hons), Registered Professional Engineer of Queensland, Fellow of the

Australian Institute of Company Directors and Fellow of the Institution of Engineers Australia.

Experience Director of Infrastructure and Environment Pty Ltd; Board Advisory Council METS Ignited Australia Ltd; Director, Deputy Chair and Chair of Audit and Risk Committee of Austmine Ltd.

Special responsibilities Member of the Infrastructure Committee and Chair of the Audit and Risk Committee.

Mr Philip Beresford Qualifications Master of Business Administration, B.Com., Senior Member of the Australian

Computer Society, Fellow of the Australian and New Zealand Institute of Insurance and Finance, International Standards Testing Quality Board Certified Tester, PRINCE2 Practitioner (Project Manager), Graduate Member of the Australian Institute of Company Directors.

Experience Thirty years of experience in Funds Management and Information Technology including executive level positions. Currently running an Independent Consultancy.

Special responsibilities Member of the Audit and Risk Committee.

John Paul College

Directors' Report 31 December 2020

3

Mrs Ilham Ahamed Qualifications MBA-Finance (University of Manchester), B. Business Administration (Honours),

Chartered Accountant, Associate Trinity College London (ATCL), Member of Australian Institute of Company Directors.

Experience Assurance, Financial Accounting and Consulting roles at Ernst & Young pertaining to public listed companies and multi-national organisations; Senior Finance and Management roles in corporate sector organisations in various countries; Currently running an Independent Consultancy.

Special responsibilities Member of the Audit and Risk Committee and Member of the Governance Committee.

Mr Andrew Reid (Appointed 23 July 2020) Qualifications B.Bus., Chartered Accountant. Experience Group Executive – Pharmacy Services, and CEO of domestic operations, for Icon

Group. Director of Epic Good Foundation. Special responsibilities Member of the Audit and Risk Committee Mr Benjamin O’Bree (Appointed 23 July 2020) Qualifications B.Eng.(Civil)(Hons), Registered Professional Engineer of Queensland, Cert.IV

WHS, Member - Institute of Public Works Engineering Australasia, Queensland. Experience Parks Planning, Design and Capital Delivery Program Leader with Logan City

Council. Special responsibilities Chair of the Infrastructure Committee

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Members' Guarantee

John Paul College is limited by guarantee. The contribution of each member to its debts and liabilities in the event of a winding up is restricted to an amount not exceeding $10. There were 484 registered members at 31 December 2020 (2019: 625).

In accordance with the Constitution of the College, no distributions are paid to members.

Events After the Reporting Date

As per Note 17 of the Financial Report, no other matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly affect the operations of the College, the results of those operations or the state of affairs of the College in future financial years.

Environmental Issues

The College's operations are not regulated by any significant environmental regulations under a law of the Commonwealth or of a state or territory of Australia.

Likely Developments and Expected Results of Operations

In the foreseeable future the College expects to continue its principal activity as described above.

Non-Audit Services

The Board of Directors, in accordance with advice from the audit and risk committee, is satisfied that the provision of non-audit services during the year is compatible with the general standard of independence for auditors imposed by the Australian Charities and Not-for-Profit Commission Act 2012. The directors are satisfied that the services disclosed below did not compromise the external auditor's independence for the following reason:

• the nature of the services provided do not compromise the general principles relating to auditor independence in accordance with APES 110: Code of Ethics for Professional Accountants set by the Accounting Professional and Ethical Standards Board.

Details of the amount paid or payable to the auditor (Crowe) for audit and assurance services provided during the year are set out in note 13.

Liability limited by a scheme approved under Professional Standards Legislation. The title ‘Partner’ conveys that the person is a senior member within their respective division and is among the group of persons who hold an equity interest (shareholder) in its parent entity, Findex Group Limited. The only professional service offering which is conducted by a partnership is the Crowe Australasia external audit division. All other professional services offered by Findex Group Limited are conducted by a privately-owned organisation and/or its subsidiaries. Findex (Aust) Pty Ltd, trading as Crowe Australasia is a member of Crowe Global, a Swiss verein. Each member firm of Crowe Global is a separate and independent legal entity. Findex (Aust) Pty Ltd and its affiliates are not responsible or liable for any acts or omissions of Crowe Global or any other member of Crowe Global. Crowe Global does not render any professional services and does not have an ownership or partnership interest in Findex (Aust) Pty Ltd. Services are provided by Crowe Brisbane, an affiliate of Findex (Aust) Pty Ltd. © 2021 Findex (Aust) Pty Ltd

5

Crowe Brisbane ABN 79 981 227 862 Level 16 120 Edward Street Brisbane QLD 4000 Australia Main +61 (07) 3233 3555 Fax +61 (07) 3233 3567 www.crowe.com.au

Auditor’s Independence Declaration

As an auditor of John Paul College for the year ended 31 December 2020, I declare that, to the best of my knowledge and belief, there have been:

i. no contraventions of the auditor independence requirements as set out in the Australian Charities and Not-for-profits Commission Act 2012 in relation to the audit; and

ii. no contraventions of any applicable code of professional conduct in relation to the audit.

Crowe Brisbane Logan Meehan Partner Dated: 25 March 2021 Gold Coast

John Paul College

Statement of Comprehensive Income For the Year Ended 31 December 2020

The accompanying notes form part of these financial statements. 6

Note2020

$ 2019

$ Revenue 3 42,902,577 46,965,209 Other income 3 59,935 160,602

42,962,512 47,125,811Advertising and promotion (286,920) (430,166) Communication expenditure (99,795) (143,519) Depreciation and amortisation expense 4 (2,884,352) (2,951,345) Employee benefits expense (30,503,180) (30,748,945) Finance costs (479,458) (523,816) Homestay payment (1,960,607) (2,794,850) Insurance (459,242) (411,524) Light and power (402,633) (496,137) Other expenses (1,419,726) (2,026,053) Camps and excursion expenses (336,853) (697,763)Commission international students (294,848) (569,990)Academic resources (616,782) (578,655)Cleaning consumables (202,255) (214,608)Gardening, grounds and greenkeeping costs (206,585) (267,515)Printing and stationery (7,776) (53,674) Professional fees (124,628) (509,361) Rates and taxes (366,122) (338,003) Raw materials and consumables used (544,598) (447,787) Repairs and maintenance (1,125,307) (1,198,085) Technology program expenditure (725,510) (1,019,788) Travel (85,602) (185,945)

Surplus before income tax (170,267) 518,282Income tax expense 2 (a) - -

Surplus for the year attributable to members (170,267) 518,282Other comprehensive income, net of income tax - -

Total comprehensive income for the year attributable to members (170,267) 518,282

John Paul College

Statement of Financial Position 31 December 2020

The accompanying notes form part of these financial statements. 7

Note2020

$ 2019

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 5 3,420,995 2,947,886 Trade and other receivables 6 726,517 791,571 Inventories 786,980 962,843 Prepayments 416,690 400,710TOTAL CURRENT ASSETS 5,351,182 5,103,010NON-CURRENT ASSETS

Property, plant and equipment 7 67,314,190 68,890,952 TOTAL NON-CURRENT ASSETS 67,314,190 68,890,952TOTAL ASSETS 72,665,372 73,993,962

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 8 1,200,950 2,466,596 Borrowings 9 1,500,000 1,500,000 Employee benefits 10 3,030,370 1,961,211 Other liabilities 11 2,529,365 3,121,310 Lease liabilities 12 114,110 -TOTAL CURRENT LIABILITIES 8,374,795 9,049,117NON-CURRENT LIABILITIES

Borrowings 9 14,000,000 14,000,000 Employee benefits 10 608,470 1,211,226 Lease liabilities 12 118,755 -TOTAL NON-CURRENT LIABILITIES 14,727,225 15,211,226 TOTAL LIABILITIES 23,102,020 24,260,343NET ASSETS 49,563,352 49,733,619

EQUITY

Retained earnings 49,563,352 49,733,619 TOTAL EQUITY 49,563,352 49,733,619

John Paul College

Statement of Changes in Equity For the Year Ended 31 December 2020

The accompanying notes form part of these financial statements. 8

2020

Retained Earnings

$ Total

$

Balance at 1 January 2020 49,733,619 49,733,619Surplus/(deficit) for the year (107,267) (107,267)

Balance at 31 December 2020 49,563,352 49,563,352 2019

Retained Earnings

$ Total

$ Balance at 1 January 2019 49,215,337 49,215,337Surplus/(deficit) for the year 518,282 518,282

Balance at 31 December 2019 49,733,619 49,733,619

John Paul College

Statement of Cash Flows For the Year Ended 31 December 2020

The accompanying notes form part of these financial statements. 9

Note2020

$ 2019

$

CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers 42,746,555 47,034,384Payments to suppliers and employees (inclusive of goods and services tax) (40,722,380) (42,251,867)Interest received 3,118 8,602Net cash provided by operating activities 16 2,027,293 4,791,119

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property, plant and equipment (1,086,026) (2,532,516) Net cash used by investing activities (1,086,026) (2,532,516)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds/(Repayment) of bank loan - (500,000)Interest paid (468,158) (523,816)Net cash used by financing activities (468,158) (1,023,816)- Net increase in cash and cash equivalents held 473,109 1,234,787 Cash and cash equivalents at beginning of year 2,947,886 1,713,099 Cash and cash equivalents at end of financial year 5 3,420,995 2,947,886

John Paul College

Notes to the Financial Statements For the Year Ended 31 December 2020

10

1 Basis of Preparation In the directors' opinion, the College is not a reporting entity because there are no users dependent on a general purpose financial report. John Paul College Limited is incorporated under the Australian Charities and Not-for-profits Commission (ACNC) Act 2012 as a company limited by guarantee and not having share capital. Under clause 10 of the Constitution of the Company, every member who is a member or within one year afterwards, is liable to contribute to the assets of the Company in the event of a winding up, to an amount not exceeding ten dollars ($10). At 31 December 2020, there were 484 registered members (2019: 625). This is a special purpose financial report that has been prepared for the sole purpose of complying with the Australian Charities and Not-for-profits Commission (ACNC) Act 2012 requirements to prepare and distribute a financial report to the members and must not be used for any other purpose. The financial report has been prepared in accordance with the recognition and measurement principles of Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board and the Australian Charities and Not-for-profits Commission (ACNC) Act 2012. It contains only those disclosures considered necessary by the directors to meet the needs of the members. John Paul College Limited is a not-for-profit entity for the purpose of preparing the financial report. Historical cost convention The financial statements have been prepared under the historical cost convention.

Critical Accounting Estimates and Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgments.

Management bases its judgments, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgments and estimates will seldom equal the related actual results. The judgments, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Estimation of useful lives of assets

The College determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated useful lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off, or written down.

Employee benefits provision

As discussed in Note 10, the liability for employee benefits expected to be settled more than 12 months from the reporting date is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at the reporting date. In determining the present value of the liability estimates of attrition rates and pay increases through promotion and inflation have been taken into account.

Impairment of non-financial assets

The College assess impairment of non-financial assets at each reporting date by evaluating conditions specific to the College and to the particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value less cost of disposal or value-in-use calculations, which incorporates a number of key estimates and assumptions.

Provision of impairment for receivables

The receivables at reporting date have been reviewed to determine whether there is any objective evidence that any of the receivables are impaired. The Board believes that the full amount of the receivables may not be fully recoverable and therefore, a provision for impairment has been made.

John Paul College

Notes to the Financial Statements For the Year Ended 31 December 2020

11

2 Summary of Significant Accounting Policies

The principal accounting policies adopted in the preparation of the financial statements that are deemed mostsignificant to the operations of the College are disclosed in the relevant corresponding notes. Other accounting policiesare disclosed below. Accounting policies have been consistently applied to all the years presented, unless otherwisestated.

(a) Income Tax

The College is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

(b) Inventories

Inventories acquired at no cost, or for nominal consideration are valued at the current replacement cost as at the date of acquisition, which is the deemed cost. Net realisable value is the estimated selling price in the ordinary course of the business, less the estimated costs of completion and the costs necessary to make the sale.

(c) Goods and Services Tax (GST)

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payable are stated inclusive of GST. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the statement of financial position. Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

(d) New, Revised or Amending Accounting Standards and Interpretations Adopted

During the current year, there were no new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that impacted the College’s financial statements.

John Paul College

Notes to the Financial Statements For the Year Ended 31 December 2020

12

3 Revenue and Other Income

2020 $

2019 $

Sales revenue

Books clothing and tuckshop 772,451 583,086 Fees charged 25,867,256 30,545,367 Recurrent and capital grants 16,169,454 15,663,476

42,809,161 46,791,929

Other revenue

Interest 3,118 8,602 Other revenue 90,298 164,678

93,416 173,280

Total Revenue 42,902,577 46,965,209

Other Income

- Net gain on disposal of property, plant and equipment 12,323 63,789 - Donations received 47,612 96,813

59,935 160,602

Revenue and Other Income

Revenue is recognised on a basis that reflects the transfer of promised goods or services to customers at an amount that reflects the consideration the College expects to receive in exchange for those goods or services. Revenue is recognised by applying a five-step model as follows:

1. Identify the contract with the customer 2. Identify the performance obligations 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations 5. Recognise revenue as and when control of the performance obligations is transferred

Fees and grant income are recognised on an accrual basis consistent with the provision of the relevant educational service.

Boarding and tuition fees are recognised as revenue in the year to which the fees relate.

Tuition and enrolment fees received in advance are recorded as a liability as unearned revenue and brought into account as revenue in the year to which the fees relate.

Grants are recognised at their fair value where there is a reasonable assurance that the grant will be received, and all attached conditions will be complied with. If conditions are attached to the grant which must be satisfied before the entity is eligible to receive the contribution, the recognition of the grant as revenue will be deferred until those conditions are satisfied. Where grant revenue is received whereby the entity incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt.

John Paul College

Notes to the Financial Statements For the Year Ended 31 December 2020

2020 $

2019 $

13

4 Expenses

Surplus before income tax includes the following specific expenses: Depreciation

Buildings 1,304,421 1,274,354 Plant and machinery 238,967 283,557 Furniture and equipment 1,227,042 1,393,434 Right of use assets 113,922 -

2,884,352 2,951,345

5 Cash and Cash Equivalents Cash at bank and on hand 1,420,995 2,056,705 Short-term deposits 2,000,000 891,181

3,420,995 2,947,886

Cash and cash equivalents comprise cash on hand, demand deposits and short-term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

6 Trade and Other Receivables CURRENT

Trade receivables 744,890 841,836 Provision for doubtful receivables (210,107) (189,376)

534,783 652,460 Other debtors 9,046 14,845 Goods and service tax receivable 182,688 124,266

Total current trade and other receivables 726,517 791,571

Fee debtors

Fees charged are included in 'Fee Debtors' and are recognised initially at fair value and subsequently measured atamortised cost, less provision for doubtful debts. Fee debtors are due for settlement within 7 days of statement.

Collectability of fee debtors is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off. A provision for doubtful receivables is established when there is objective evidence that the College will not be able tocollect all amounts due according to the original terms of receivables. The amount of the provision is recognised in the statement of comprehensive income.

John Paul College

Notes to the Financial Statements For the Year Ended 31 December 2020

14

7 Property, Plant and Equipment

Work in progress

$

Freehold land and buildings

$

Plant and machinery

$

Furniture and equipment

$

Right of Use

$ Total

$

As at 31 December 2020

Cost 79,651 82,462,842 3,938,870 14,804,560 332,271 101,618,194Accumulated depreciation - (20,192,117) (2,639,208) (11,358,757) (113,922) (34,304,004)

Balance at the end of the year 79,651 62,270,725 1,299,662 3,445,803 218,349 67,314,190

Work in progress

$

Freehold land and buildings

$

Plant and machinery

$

Furniture and equipment

$

Right of Use

$ Total

$

As at 31 December 2019

Cost 8,417 82,367,183 3,871,535 14,063,469 - 100,310,604 Accumulated depreciation - (18,887,696) (2,400,241) (10,131,715) - (31,419,652)

Balance at the end of the year 8,417 63,479,487 1,471,294 3,931,754 - 68,890,952

Buildings and property, plant and equipment are stated at historical cost less depreciation. Land is stated at historical cost. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the College and the cost of the item can be measured reliably.

The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to the statement of comprehensive income during the reporting period in which they are incurred.

Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives as follows:

Buildings 50 years

Furniture and equipment 3-10 years

Plant and machinery 10 years

Motor vehicles 5 years

At the end of each annual reporting period, the depreciation method, useful life and residual value of each asset is reviewed. Any revisions are accounted for prospectively as a change in estimate. An asset's carrying amount is written down immediately to its recoverable amount, if the asset carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposal are determined by comparing proceeds with carrying amount. These are included in the statement of comprehensive income.

Impairment of Assets

Assets that are subject to amortisation/depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount exceeds their recoverable amounts. The recoverable amount is the higher of an asset's fair value less costs to sell and value-in-use.

John Paul College

Notes to the Financial Statements For the Year Ended 31 December 2020

2020 $

2019 $

15

8 Trade and Other Payables Current

Trade payables 424,930 1,499,787Accruals 767,470 966,812GST payable 8,550 -

1,200,950 2,466,596

All amounts are short term and the carrying values are considered to be a reasonable approximation of fair value.

These amounts represent liabilities for goods and services provided to the College prior to the end of the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months from the reporting date.

9 Borrowings Current

Secured business loan 1,500,000 1,500,000

1,500,000 1,500,000

Non-current

Secured market rate loan 14,000,000 14,000,000

14,000,000 14,000,000

Bank loans

Bank loans and overdraft of the College are secured by first mortgages over the College's freehold land and buildings.

Financing arrangements

Floating rate Total facilities

Bank overdraft 1,000,000 1,000,000Bank loan facilities 19,000,000 19,000,000

20,000,000 20,000,000

Used at balance date

Bank loan facilities 15,500,000 15,500,000

Unused at balance date

Bank overdraft 1,000,000 1,000,000 Business loan facility 3,500,000 3,500,000

4,500,000 4,500,000

Borrowing costs are recognised as an expense in the period in which they are incurred. Borrowing costs include:

(i) Interest on bank overdrafts and short-term and long-term borrowings, and

Bank Facilities

The liability for bank loans is recorded as the principal owing. The liability for the bank loan is recorded at face value. The amount of principal or face value due for repayment within the next twelve months is shown as a current liability. Interest payable is recorded on an accruals basis. The amount unpaid at balance date is included in accounts payable. The amounts prepaid at balance date are included in prepayments. A fixed interest rate agreement of 2.65% applies to $7,000,000 of the secured market rate loan for a five year term ending on 31 May 2022. The remaining balance of this facility is subject to interest applied at variable rate.

John Paul College

Notes to the Financial Statements For the Year Ended 31 December 2020

2020 $

2019 $

16

10 Employee Benefits Current liabilities

Employee benefits 3,030,370 1,961,211

3,030,370 1,961,211

Non-current liabilities

Employee benefits 608,470 1,211,226

608,470 1,211,226

Short-term employee benefits

Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.

Other long-term employee benefits

The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to the expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using the market yields at the reporting date on national government bonds with term to maturity and currency that match, as closely as possible, the estimated future cash outflows.

Employee benefit on-costs

Employee benefit on-costs are recognised and included in employee benefit liabilities when the employee benefits are recognised as liabilities.

11 Other liabilities Current

Fees in advance 2,419,515 3,028,553Deposits held 109,850 92,757

2,529,365 3,121,310

John Paul College

Notes to the Financial Statements For the Year Ended 31 December 2020

2020 $

2019 $

17

12 Lease liabilities

Amounts recognised in the balance sheetRight-of-use assets*

Office equipment- photocopier 332,271 -

332,271 -

*included in the line item “Property, plant and equipment” in the statement of financial position.

Lease liabilities

Current 114,110 - Non-current 118,755 -

232,865 -

Amounts recognised in profit or loss

Depreciation charge of right-of-use assets:

Office equipment- photocopier 113,922 - Interest expense (included in finance costs) 11,300 - The total cash outflow for leases in 2020 was $110,708.

The company’s leasing activities and how these are accounted for

The College leases office equipment. Rental contracts are typically made for fixed periods of 3 to 5 years. Lease terms are negotiated on an individual basis. The lease arrangements do not impose any covenants, but leased assets may not be used as security for borrowing purposes. Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the College. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term using the straight-line depreciation method. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:

The company’s leasing activities and how these are accounted for (continued) • Fixed payments (including in-substance fixed payments), less any lease incentives receivable • Variable lease payments that are based on an index or a rate • Amounts expected to be payable by the lessee under residual value guarantees • The exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and • Payments of penalties for terminating the lease, if the lease terms reflects the lessee exercising that option

The lease payments are discounted using the interest rate implicit in the lease, if that rate can be determined, or the company’s incremental borrowing rate.

Right-of-use assets are measured at cost comprising the following: • The amount of the initial measurement of lease liability • Any lease payments made at or before the commencement date, less any lease incentives received • Any initial direct costs, and • Restoration costs

John Paul College

Notes to the Financial Statements For the Year Ended 31 December 2020

2020 $

2019 $

18

13 Auditors' Remuneration

During the year the following fees were paid or payable for services provided by the auditor of the College and its related practices:

- Audit and review of financial reports 31,300 30,400 - assistance in the preparation of the financial statements 2,700 2,700

Total remuneration for audit and other assurance services 34,000 33,100

Other services

- taxation advice 3,300 5,030

Total remuneration for other services 3,300 5,030

Total remuneration of auditors 37,300 38,130

14 Contingencies

Details and estimates for the maximum amounts of contingent liabilities are as follows:

Pursuant to the conditions attached to the Commonwealth and State government capital grants, the College is contingently liable to repay based on a formula, all of the grants received, if the project to which the funds are applied, ceases to be used for the purpose approved or is sold or otherwise disposed of within 20 years of the completion of the project. The maximum contingent liability is $4,295,570 (2019: $4,458,986). As it is the Board's intention that the College will continue in its current capacity, in their opinion, no liability is anticipated.

15 Related party Transactions

Directors

The names of persons who were directors of the College at any time during the financial year are as follows:

Mrs Helen Weissenberger (retired 23 July 2020) Mr Dominic Taylor Mr Scott Eustace Mr Kevin Gordon (retired 14 May 2020) Mrs Elizabeth Keen Mr Robin Mack Mr Robert Simpson Mr Philip Beresford Mrs Ilham Ahamed Mr Andrew Reid (appointed 23 July 2020) Mr Benjamin O’Bree (appointed 23 July 2020)

Transactions with directors and director related entities.

The directors pay John Paul College tuition fees in relation to their children’s attendance at the College and participation in extra-curricular activities. All such transactions are on normal commercial terms and conditions.

Certain directors and staff members receive other payments from the College such as homestay payments. These payments are on the same terms as with any other party.

The directors of John Paul College are remunerated for their services. In aggregate the total fees paid to directors for the year ended 31 December 2020 was $138,270 (2019: $140,000). The annual total quantum of directors' fees paid is capped by a resolution of members as provided by the Constitution.

John Paul College

Notes to the Financial Statements For the Year Ended 31 December 2020

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16 Cash Flow Information

Reconciliation of result for the year to cashflows from operating activities

Reconciliation of net income to net cash provided by operating activities:

2020

$ 2019

$ Surplus for the year (170,267) 518,282 Cash flows excluded from profit attributable to operating activities

Non-cash flows in profit:

- Depreciation 2,884,352 2,951,345 - Interest expense 479,458 523,816

Changes in assets and liabilities:

- (increase)/decrease in trade and other receivables 65,054 (219,121) - (increase)/decrease in trading stock 175,863 (116,516) - (increase)/decrease in other assets (15,980) 46,878 - (increase)/decrease in GST Receivable - 192,965 - increase/(decrease) in trade and other payables (1,265,645) 944,296 - increase/(decrease) in other current liabilities (591,945) (103,547) - increase/(decrease) in employee benefits 466,403 52,721

Cashflows from operations 2,207,293 4,267,303

17 Events After the End of the Reporting Period

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the College, the results of those operations or the state of affairs of the College in future financial years.

Liability limited by a scheme approved under Professional Standards Legislation. The title ‘Partner’ conveys that the person is a senior member within their respective division and is among the group of persons who hold an equity interest (shareholder) in its parent entity, Findex Group Limited. The only professional service offering which is conducted by a partnership is the Crowe Australasia external audit division. All other professional services offered by Findex Group Limited are conducted by a privately-owned organisation and/or its subsidiaries. Findex (Aust) Pty Ltd, trading as Crowe Australasia is a member of Crowe Global, a Swiss verein. Each member firm of Crowe Global is a separate and independent legal entity. Findex (Aust) Pty Ltd and its affiliates are not responsible or liable for any acts or omissions of Crowe Global or any other member of Crowe Global. Crowe Global does not render any professional services and does not have an ownership or partnership interest in Findex (Aust) Pty Ltd. Services are provided by Crowe Brisbane, an affiliate of Findex (Aust) Pty Ltd. © 2021 Findex (Aust) Pty Ltd

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Crowe Brisbane ABN 79 981 227 862 Level 16 120 Edward Street Brisbane QLD 4000 Australia Main +61 (07) 3233 3555 Fax +61 (07) 3233 3567 www.crowe.com.auIndependent Auditor’s Report

To the Members of John Paul College Limited

Opinion We have audited the special purpose financial report (the financial report) of John Paul College Limited (the “College”), which comprises the statement of financial position as at 31 December 2020, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the Directors’ Report.

In our opinion, the accompanying financial report of the College is in accordance with the Division 60 of the Australian Charities and Not-for-profits Commission Act 2012 (the ACNC Act), including:

(a) Giving a true and fair view of the College’s financial position as at 31 December 2020 and of its financial performance for the year then ended.

(b) Complying with Australian Accounting Standards to the extent described in Note 1, and Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013.

Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the College 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 our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter - Basis of Accounting We draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the College’s financial reporting responsibilities under the ACNC Act and the Education Act and Regulation 2013. As a result, the financial report may not be suitable for another purpose. Our opinion is not modified in respect of this matter.

Responsibilities of the Directors for the Financial Report The Directors are 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 1 to the financial report is appropriate to meet the requirements of the ACNC Act and the Education Act. The Directors’ responsibility also includes such internal control as they determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

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In preparing the financial report, the Directors are responsible for assessing the College’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intend to liquidate the College or to cease operations, or have no realistic alternative but to do so.

The Directors are responsible for overseeing the College’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Report Our 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 our 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 this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We 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 our 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 College’s internal control.

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

• Conclude on the appropriateness of the directors’ 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 College’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the College 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.

We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during the audit.

Crowe Brisbane Logan Meehan Partner Dated: 29 March 2021 Gold Coast