Annual Report 2012 www.adfmelbourne.org.au ADF 2012 1 Holy Apostles, Sunshine Braybrook St John’s, Cranbourne – Worship Centre St Silas’ and St Anselm, Albert Park From the Chairman Dr Graeme Blackman OAM The Anglican Development Fund (ADF) has had a successful year. The balance sheet grew by 7.8% during 2012 driven by an increase in investments from both parish and individual investors in the Fund. We greatly appreciate and are encouraged by this increase in support. The ADF holds an Exemption from the Banking Act, and as the Exemption states, “is an investment opportunity for those who wish to support the charitable and religious purposes of the Diocese of Melbourne”. This means that the ADF is not supervised by the Australian Prudential Regulatory Authority (APRA). APRA has recently extended the Exemption until June 2014, while it reviews its terms and conditions from that date. Your funds are guaranteed by the Diocese of Melbourne. The ADF Management Committee, which is appointed by the Council of the Diocese, takes its commitment to the ADF’s investors very seriously and has established policies for minimum levels of cash liquidity and equity capital. These are similar to those which would be applicable if we were supervised by APRA. Throughout 2012, we comfortably exceeded those benchmarks and are resolved to maintain that position. The ADF achieved a surplus of $317,000 in 2012. This is a satisfactory result. However it understates the overall financial contribution that the ADF makes to the Diocese, through our lending to parishes and other Anglican institutions. Our lending interest rate is significantly below market rates. This enables parishes to undertake capital projects, some of them major, at a markedly lower cost than would normally be the case. In 2012, the ADF made 20 new loans to parishes, following 27 new loans in 2011. The ADF now has loans to over 102 parishes in the Diocese, which is a renewing legacy of the financial services it has provided to parishes since its establishment in the 1960s. We assess that the financial contribution to the work of the Diocese through the operation of the ADF in 2012, to be approximately $850,000, being the difference between the market interest rates and those charged on loans by the ADF, together with the direct contribution Parishes to which the ADF has advanced funds for significant parish projects in the last two years include: St Silas, Albert Park St John’s, Cranbourne Banyule Anglican Parish St Clement’s, Elsternwick Bellarine Anglican Parish St Luke’s, South Melbourne St Paul’s, Boronia Christ Church, Melton Holy Apostles, Sunshine Braybrook Mt Eliza Anglican Parish St Thomas’, Burwood St Mary’s, North Melbourne St John’s, Camberwell St Mark’s, Templestowe 2 ADF 2012 by the ADF of $200,000 to the operational costs of the Diocese. The ADF Management Committee, supported by the Diocesan Council, has decided that in the future any distribution of surpluses by the ADF will be to the Church Extension and Development Fund, which makes capital grants for church growth in new growth areas of the Diocese. We think that this distribution of the ADF surpluses is wholly consistent with the purpose of the ADF. These contributions and achievements have been generated primarily through the support of our investors to demonstrate their belief in the ADF’s purpose. They have invested their funds with the ADF at interest rates that have involved a sacrifice of some income compared with what they could have obtained elsewhere, The ADF is grateful for this ongoing support, which enables it to earn the financial margin on transactions that would otherwise typically go to the banks. With the ADF’s introduction of electronic facilities in late 2011, the ADF is now able to provide enhanced products and services which at least match those available elsewhere. We hope that this will lead to an even higher level of support from our investors, particularly parishes, whether borrowing or not, so that the ADF can further increase its contribution to the mission of the Church. Dr Graeme Blackman OAM Chairman ADF Management Committee Statement of Comprehensive Income for the year ended 31 December 2012 20122011 $$ Interest and Investment Income 2,365,909 2,846,534 Interest Paid 1,567,539 1,584,103 Net Interest and Investment Income 798,370 1,262,431 Other Income 101,440 113,089 Total Operating Income 899,810 1,375,520 Employee Benefit Expenses 272,534 289,688 Depreciation Expenses 113,763 227,200 Management Fees 77,854 75,741 Other Operating Expenses 258,966 244,859 Total Operating Expenses 723,117 837,488 Net Operating Income 176,693 538,032 Net Gain (Loss) on Financial Assets 140,956 (673,106) Total Comprehensive Income 317,649 (135,074) Statement of Financial Position as at 31 December 2012 Assets Current Assets Cash and Cash Equivalents Receivables Total Current Assets Non-Current Assets Financial Assets at Fair Value through Profit or Loss Receivables Investment Properties Plant and Equipment Total Non-Current Assets 7,006,210 8,865,254 27,837,33927,420,925 5,074,200 5,114,401 169,518 243,080 40,087,267 41,643,660 Total Assets 49,474,896 Liabilities Current Liabilities Payables Interest Bearing Liabilities Provisions Total Current Liabilities 597,712500,334 44,755,668 41,486,369 44,45734,996 45,397,837 42,021,699 Total Liabilities 45,397,837 42,021,699 4,077,059 3,959,410 4,077,059 4,077,059 3,959,410 3,959,410 Net Assets Equity Accumulated Surplus Total Equity 20122011 $$ 9,085,315 4,105,052 302,314232,397 9,387,629 4,337,449 45,981,109 These summarised accounts are not the audited statutory accounts but a summary of information relating to both the statement of financial activities and the balance sheet. The full financial statements, from which this summary is derived, have been prepared by the Fund’s auditor and may be obtained by emailing the ADF office at adf@adfmelbourne.org.au ADF 2012 3 Thank you for your support... By investing with the ADF you are… • • • • making a tangible contribution to the ministry of your church supporting capital developments within your parish and within the Diocese not being charged any fees able to access online services including transfers between accounts and BPay and downloading of transaction histories • able to access your funds at any time • reassured your investments are secured by the Diocese • able to access a flexible range of products and your parish has… • free use of the ADF’s credit card processing service • experienced advisers to facilitate your next stewardship campaign • access to funds for approved capital projects at competitive interest rates Contact our friendly staff with any enquiries. We will be pleased to assist you and provide helpful information on our investment accounts on offer and our current interest rates. Andrew Hibbard, Manager Julie Sizer, Senior Customer Service Officer Robyn Jones, Customer Service Officer Neither the ADF nor the Melbourne Anglican Trust Corporation (MATC) is prudentially supervised by the Australian Prudential Regulation Authority (APRA) and investments in the ADF are not deposits and do not obtain the benefit of the depositor protection provisions of the Banking Act 1959 (Cth). An investment in the ADF is designed for persons who wish to promote the charitable purposes of the Anglican Diocese of Melbourne and for whom the considerations of profit are not of primary relevance to a decision to make an investment in the ADF. Anglican Development Fund The Anglican Centre, 209 Flinders Lane Reply Paid 70597, Melbourne Vic 3000 Phone (03) 9653 4220 Fax (03) 9653 4239 Email adf@adfmelbourne.org.au 4 ADF 2012 www.adfmelbourne.org.au