ANNUAL REPORT 2019 CONTENTS
Letter of Transmittal 2
Chairman’s Report 3
About CSNSW 4
2019 at a Glance 5
Bishop Members of CSNSW 7
Board of Directors 8
CSNSW Management Team 10
Non-Government Reform Support Fund 11
Strategic Priorities 11
Our Achievements in 2019 12
Appendix A: Advisory & Consultation Activity 30
Appendix B: 2019 Financial Report and Independent Auditor’s Report 41
Appendix C: Projects recommended for the CBGA funding in 2019 68
VOLUME 2 LETTER OF TRANSMITTAL
Most Reverend Anthony Fisher OP Chairman, Bishop Members of Catholic Schools NSW Level 16, Polding Centre 133 Liverpool Street SYDNEY NSW 2000
Your Grace, It is with great pleasure that I submit the 2019 Annual Report of Catholic Schools New South Wales Ltd (CSNSW) for the consideration of Bishop Members.
2019 was a year of significant consolidation and achievement for CSNSW as it sought to advance its civil and canonical mandates. This report records some of our achievements and challenges that we continue to face in working with Bishop Members, Diocesan Schools Offices, Religious Institutes and PJPs, and others within the community of Catholic schools in NSW to advance the mission of Catholic schooling in NSW.
It is a privilege to be entrusted with these important responsibilities and to be involved in supporting improved effectiveness across NSW Catholic Schools.
I commend the 2019 Catholic Schools NSW Annual Report to the Bishop Members of CSNSW.
Yours sincerely,
Stephen Sedgwick AO Chairman
ANNUAL REPORT 2019 2 CHAIRMAN’S REPORT
2019 was our second full year of operation. It was certainly a year of consolidation but also of growth. It was characterised by further progress to secure the improvements in governance that led Bishop Members to establish CSNSW in 2017. This is reflected, amongst other things, in:
the bedding down of a revised methodology for the allocation of Commonwealth and NSW government recurrent funding to Diocesan Schools Offices (DSOs) in line with the needs-based funding principles of the relevant legislation; improvements in the procedures to assess applications for capital funding grants under the Commonwealth and NSW government Block Grants arrangements; additional professional support for DSOs in the development of applications for capital funding; and strengthened procedures to ensure that DSOs, Bishop Members and CSNSW can demonstrate compliance with government legislation and meet accountability obligations.
In addition, there were significant new initiatives to build the capacity of CSNSW to add value through more informative reporting to Members, facilitation of greater collaboration across the Catholic schools sector in NSW, and more effective representation of the perspectives and needs of NSW Catholic schools, both systemic and non-systemic, to governments and the broader community. These provide a strong platform from which CSNSW can fulfil its civil and canonical mandates in coming years and support Bishop Members to advance the Mission of Catholic schools in NSW. CSNSW also successfully integrated the operations of Catholic Schools Sports Services, consistent with a decision of the Bishops of the Province, and assisted the Bishops in their examination of appropriate future governance arrangements for the Catholic Commission for Employment Relations (CCER), leading to a decision in principle to incorporate CCER as a wholly owned subsidiary of CSNSW. At the end of 2019, this remained a work in progress, with completion expected in 2020. Elements of our work remain contentious in some quarters. Change is rarely smooth or easy. At times, it can feel that we ‘take two steps forward and one step back’. Overall, however, progress is being made to strengthen the capability, procedures and systems of CSNSW, demonstrate the value that we can add and realise the ambitions that Members embedded in our civil and canonical mandates. The Board wholeheartedly acknowledges the professionalism, commitment and effectiveness of the CEO, Dallas McInerney, and management and staff of CSNSW. We sincerely thank the Members for their continuing philosophical and prayerful support.
Yours sincerely,
Stephen Sedgwick AO Chairman
3 CATHOLIC SCHOOLS NSW ABOUT CSNSW
CSNSW is a company whose members are the 11 Bishop Ordinaries of NSW. Each Bishop has responsibility for the Catholic School Agency in his diocese. Collectively these agencies are recognised by governments as the NSW Catholic school system. CSNSW is recognised by governments as the representative body for NSW Catholic schools. It derives its authority and mandate from the Catholic Bishops of NSW. A company Constitution and Canonical Mandates from the Bishops of NSW outline the functions and authority of CSNSW.
OUR MISSION To advance God’s Mission through our leadership and service to Catholic education
OUR VALUES
SERVICE INTEGRITY Our leadership and service role is founded in We act ethically, justly and honestly. We the Gospels. Our service to those in Catholic demonstrate that we value the dignity and worth education contributes to the achievement of of each individual by listening, speaking and excellence and equity. acting respectfully towards everyone.
ACCOUNTABILITY COLLEGIALITY We demonstrate fidelity to our mission We value the principle of subsidiarity and work in through professionalism in our work, effective close collaboration with others for the common stewardship, transparency and holding ourselves good. and others accountable for outcomes.
The Board of Catholic Schools NSW Ltd is 4. Encouraging and fostering greater delegated to ensure the NSW Catholic school collaboration at different levels among all system advances education and religion in Christ’s faithful who share in the apostolate of Catholic schools and ensures compliance Catholic education. requirements are met including with regard to: CSNSW is the approved authority for the 1. Acting as the recipient of Commonwealth distribution of Commonwealth and State and State Government funding for Diocesan government funding to the NSW Catholic school schools; system. 2. Compliance in relation to Commonwealth and It also distributes targeted funding to the State Government funding and associated systemic schools and to those congregational legislative requirements; schools that choose CSNSW as provider. 3. Reporting against a range of efficiency CSNSW manages the distribution of approved and effectiveness indicators relating to the capital grants. provision of Catholic education; and
ANNUAL REPORT 2019 4 255K 598 STUDENTS SCHOOLS
PRIMARY 129,638 PRIMARY 423 SECONDARY 125,549 SECONDARY 131 SYSTEMIC 217,162 COMBINED 31 RI/PJP 38,025 SPECIAL* 13 CATHOLIC 70% SYSTEMIC 552 OTHER CHRISTIAN 11% RI/PJP 46 NO RELIGION 8% CO-ED 539 OTHER 6% GIRLS 31 ORTHODOX 5% BOYS 28 FEMALE 127,192 BOARDING 13 MALE 127,995 * Includes Special Assistance Schools
STUDENTS BY CATHOLIC SCHOOLS BY CATHOLIC SCHOOL AGENCY SCHOOL AGENCY
SYDNEY 70k SYDNEY 152
PARRAMATTA 43k PARRAMATTA 82 AT A GLANCE AT MAITLAND- RI/PJP 38k NEWCASTLE 58
MAITLAND- RI/PJP NEWCASTLE 20k 46
WOLLONGONG 19k LISMORE 45
LISMORE 17k BROKEN BAY 44
BROKEN BAY 17k WOLLONGONG 38
2019 BATHURST 9k BATHURST 33
WAGGA WAGGA 8k WAGGA WAGGA 31
CANBERRA CANBERRA &GOULBURN NSW 7k &GOULBURN NSW 27
ARMIDALE 6k ARMIDALE 24
WILCANNIA- WILCANNIA- FORBES 2k FORBES 18
5 CATHOLIC SCHOOLS NSW SCHOOLS BY 30K SCHOOLS GEOGRAPHICAL SCHOOLS STAFF BY SIZE REMOTENESS
TEACHING 20,656 <50 students 6% MAJOR CITIES 67% CATHOLIC 80% 50-199 24% INNER 21% REGIONAL NON-CATHOLIC 20% 200-499 50% OUTER 10% NON-TEACHING 9,103 500-999 21% REGIONAL SYSTEMIC 24,096 1,000+ 9% REMOTE 2% RI/PJP 5,663 The average size of a NSW VERY REMOTE <1% Catholic School is ~427 FEMALE 77% students (~285 in Primary MALE 23% and ~818 in Secondary). FULL-TIME 57% PART-TIME 43%
16% 4% 1% 3% 23% 41K 11K 1.9K 8K 60K ENGLISH AS FROM OVERSEAS STUDENTS ABORIGINAL & STUDENTS WITH A SECOND BOARDING TORRES STRAIT DISABILITY LANGUAGE ISLANDER REQUIRING TEACHING ADJUSTMENT $2,105M $594M IN RECURRENT GRANTS FROM THE MILLION IN RECURRENT GRANTS FROM AUSTRALIAN GOVERNMENT DISTRIBUTED THE NSW GOVERNMENT DISTRIBUTED TO CATHOLIC SYSTEMIC SCHOOLS AND TO CATHOLIC SYSTEMIC SCHOOLS AND $300M FOR RI/PJP SCHOOLS $110M FOR RI/PJP SCHOOLS
$20.7M $85.2M IN TARGETED FUNDING DISTRIBUTED FOR CAPITAL WAS ALLOCATED PROJECTS
ANNUAL REPORT 2019 6 BISHOP MEMBERS OF CSNSW
The Members of the Company are the Bishop Ordinaries of the 11 dioceses in NSW. The operational responsibility for Catholic schools remains the responsibility of the individual Bishop Member. The CSNSW Board reports to Bishop Members at least three times each year, drawing to their attention matters of strategic importance to NSW Catholic schools. Certain matters are reserve powers of the Bishop Members.
BISHOP MEMBERS
Armidale Bathurst Broken Bay Canberra & Goulburn Most Rev Michael Most Rev Michael Most Rev Anthony Most Rev Christopher Kennedy DD McKenna DD Randazzo DD Prowse DD STD
Lismore Maitland-Newcastle Parramatta Sydney Most Rev Gregory Most Rev William Wright Most Rev Vincent Long Most Rev Anthony Fisher Homeming OCD DD Van Nguyen OFMConv OP DD BA LLB B. Theol DD D.Phil.
Wagga Wagga Wilcannia-Forbes Wollongong Most Rev Christopher Most Rev Columba Most Rev Prowse DD STD Macbeth-Green OSPPE Brian G Mascord DD (Apostolic Administrator) DD
7 CATHOLIC SCHOOLS NSW BOARD OF DIRECTORS
The 2019 Board of Catholic Schools NSW had ten Directors including the Chairman. Directors bring a wide range of skills to provide informed decision-making. To assist in the execution of its role, the Board has five committees each with its own charter. In addition, the Board has delegated responsibility for capital grants to the Capital Projects Evaluation Panel (CPEP). All directors are members of at least one committee. Each committee is chaired by a Board Director and some draw on external expertise as required. The Board Committees are Audit and Risk; Compliance and Resourcing; Education Effectiveness; Executive; and Governance, Human Resources and Remuneration.
Stephen Sedgwick AO Helen Conway (Chairman) Helen chairs the Governance, Stephen chairs the Board, the Human Resources and Compliance and Resourcing Remuneration Committee and Committee, the Education is a member of the Compliance Effectiveness Committee and and Resourcing Committee of the Executive Committee of the the Board. Board
Anne Cummins Toni Downes Anne is a member of the Toni is a member of the Education Effectiveness Governance, Human Resources Committee and the Executive and Remuneration Committee Committee of the Board. of the Board.
ANNUAL REPORT 2019 8 Vince Graham AM KCSG Michael Lee Vince chairs the Capital Michael is a member of the Projects Evaluation Panel and Audit and Risk Committee and is a member of the Compliance an observer on the Education and Resourcing Committee and Effectiveness Committee of the the Education Effectiveness Board. Committee of the Board.
Moira Najdecki Bishop Anthony Randazzo Moira is a member of the Bishop Anthony is a member of Capital Projects Evaluation the Executive Committee. Panel, the Education Effectiveness Committee and the Governance, Human Resources and Remuneration Committee of the Board.
David Robinson Julian Widdup David is a member of the Julian chairs the Audit and Risk Audit and Risk Committee, the Committee. Capital Projects Evaluation Panel and the Compliance and Resourcing Committee of the Board.
9 CATHOLIC SCHOOLS NSW CSNSW MANAGEMENT TEAM
CSNSW operates from offices on Levels 9, 10 and 12 of the Polding Centre, 133 Liverpool Street, Sydney. The Management Team is responsible for:
leading the work program of the Company as agreed with the Board; monitoring education policy issues such as funding, curriculum and teaching; managing Catholic dioceses’ and schools’ compliance with the requirements of legislation and funding agreements; and supporting CSNSW’s consideration of policy through regular consultations with government and peak education bodies and working in consultation with Board Committees and Reference Groups.
Dallas McInerney Audrey Bower Danielle Cronin (Chief Executive Officer) Audrey leads the Legal, Risk and Danielle leads the Education Policy Dallas leads the Management Team Research Team. Directorate. responsible for the daily operations of CSNSW.
John Kitney Brian McDonald Kwame Wetsi John is the Company Secretary. Brian leads the Resources and Kwame leads the Data Analytics Capital Directorate. Team.
ANNUAL REPORT 2019 10 STRATEGIC PRIORITIES
The CSNSW 2018-2022 Strategic Priorities reflect the outcomes of extensive consultation across the NSW Catholic schools’ sector. The five Strategic Areas and related Goals are:
1. Governance Best Practice 4. Advocacy and Counsel Promote the integrity of NSW Catholic Schools Present CSNSW as the pre-eminent advocate via delivery of governance best practice. and source of counsel for the advancement and interests of Catholic schools in NSW. 2. Effectiveness and Efficieny Maximise student outcomes and the efficiency 5. Service Offerings and effectiveness of the NSW Catholic school Support NSW Catholic School Agencies system. through high quality and targeted service delivery. 3. Value Proposition Enhance the value proposition of Catholic schooling in NSW for current and prospective families.
NON-GOVERNMENT REFORM SUPPORT FUND
CSNSW is recognised by the Australian 3. Improve Governance and Financial Government as the Representative Body for NSW Management Practices; Catholic schools for the purpose of the Non- 4. Support students, student learning and Government Reform Support Fund. achievement; The Reform Fund provided $7.599m in 2019 to 5. Support teaching, school leadership and support the implementation in NSW Catholic school improvement; and schools of existing and new national policy 6. Enhance the National Evidence Base. initiatives and state educational reforms. CSNSW’s 2019 Reform Fund projects addressed the Australian Government’s school reform priorities:
1. Quality assurance, moderation and support for The outcomes achieved by the continued improvement of the Nationally CSNSW in 2019 result from Consistent Collection of Data on School activities directed by the Students with Disability; CSNSW Strategic Priorities and 2. Implementation of online delivery of the National Assessment Program; the Non-Government Reform Support Fund priorities.
11 CATHOLIC SCHOOLS NSW OUR ACHIEVEMENTS IN 2019
ADVOCACY AND ADVANCEMENT Advocacy on behalf of Catholic education is central to CSNSW’s purpose to advance God’s Mission through leadership and service. Critical to the success of CSNSW’s advocacy is effective engagement with a wide range of stakeholders including policymakers, regulators and school providers and enhancement of its own staff and systems to support Catholic agencies.
Collaboration A strategic priority of CSNSW in 2019 was to nurture quality relationships across the NSW Catholic school sector for the purposes of high-level collaboration and service delivery. The Board held a full-day workshop with key stakeholders at the Polding Centre on 7 August. The workshop:
Engaged stakeholders with strategic issues facing Catholic schools in NSW; Discussed the regulatory and policy environment in 2019/2020; Provided an opportunity to hear first-hand from principals and teachers about their needs and challenges; and Enabled an extensive briefing from leaders of rural and regional Catholic education.
The CSNSW Board and Management and the Conference of Diocesan Directors convene annually in one of the dioceses to familiarise themselves with the issues of that diocese, to visit some schools and the education office, share a liturgy and meal, and hold a joint meeting. In 2019 this took place in the Archdiocese of Canberra and Goulburn on 10-11 April. This event provided an opportunity to discuss the current policy outlook for the education sector and enhance understandings of the compliance requirements for Catholic schools. The Chief Executive Officer visited eight of the 11 dioceses throughout NSW in 2019. He engaged with the staff of their Catholic Schools Offices and made numerous systemic school visits.
ANNUAL REPORT 2019 12 The Chief Executive Officer also met with and the Board of the NSW Education Standards representatives of the Federation of Religious Authority (NESA). In addition, CSNSW fostered Institute and Ministerial PJP Catholic School direct liaison at the highest level with the Authorities in NSW & ACT and visited over External Relations Directorate of the NSW 20 RI/PJP schools distributed throughout Department of Education and at the operational metropolitan and regional NSW. and policy implementation levels with departmental and NESA officers. The weekly email newsletter, Scholaris, continued to be issued to Diocesan Directors, Engagement School Principals, Heads of Department, In September 2019, CSNSW released the Working Parties and teachers and first volume of The Case for Catholic Schools communicated items for action and information. report. The report provides an evidence- It provided up-to-date advice on a range of based explanation of the benefits of Catholic critical as well as ongoing matters affecting schools. This research contributes to public schools, teachers and students. understanding of the many benefits of Catholic In response to consumer habits and building on schools in NSW for taxpayers, families and 2018 initiatives, CSNSW focused on refining and students. enhancing its social media infrastructure during At CSNSW’s inaugural Education Law 2019. Its reach expanded sevenfold and is now Symposium held on 30 September 2019, the a central part of CSNSW’s communications CEO announced an initiative designed to strategy. identify the burden of government regulation Representation that falls on schools and education leaders and to set out a practical, achievable work program Catholic Schools NSW maintained its to lighten this burden. The Better, Smarter relationship with the NSW State Government Regulation project aims to present a Roadmap through membership of the NSW Schools to governments in mid-2020. CSNSW’s Better, Advisory Council, the Non-Government Schools Smarter Regulation Issues Paper is available Advisory Council, the NSW Non-Government here. Schools Not-For-Profit Advisory Committee
13 CATHOLIC SCHOOLS NSW CSNSW also launched a new series of dinners In addition, CSNSW provided advice, through and lunches hosted by the CEO. Guests to these the National Catholic Education Commission events included the Commonwealth and State (NCEC), to the following Commonwealth Education Ministers and the Secretary of the initiatives: NSW Department of Education. These events provided an invaluable opportunity for the Review of Senior Secondary Pathways CSNSW Board, Diocesan Directors, principals Review of the Melbourne Declaration and teachers to discuss various issues with National School Resourcing Board Review of policy makers. Student With Disability Loading Review of NAPLAN reporting Submissions In its role as representative body for NSW Review of NAPLAN (led by NSW, Vic, QLD Catholic schools, CSNSW contributed to and ACT) reviews initiated by government, parliamentary Review of the National Quality Framework committees and statutory authorities. CSNSW (NQF) related to early childhood education submissions were informed by advice from and childcare Diocesan Catholic Schools Offices and individual Catholic schools. CSNSW conducted a review of the Commonwealth’s draft Religious Discrimination CSNSW submissions to two major State reviews Bill. On the basis of this work, CSNSW are publicly available: supported the National Catholic Education Commission in developing the NCEC’s The NSW Government’s Review of the NSW submission to the review. CSNSW has also Curriculum (January 2019) provided advice to the CSNSW Board on the The NSW Legislative Council Inquiry into content of the legislation and its impact on Measurement and Outcomes-based Funding schools. in NSW Schools (August 2019)
ANNUAL REPORT 2019 14 RESOURCES AND REPORTING CSNSW is the approved authority for the distribution of recurrent Commonwealth and State Government funding to the NSW Catholic school system. It also distributes capital and targeted funding to schools in the system schools as well as to congregational schools. CSNSW has reporting obligations to State and Commonwealth Governments on behalf of the system.
Recurrent Funding 2019 In 2019, CSNSW received recurrent grants totalling $2.7 billion for the NSW Catholic school system. The spending of recurrent grant funds is required to be in accordance with the ‘needs-based funding arrangement’ defined in the Australian Education Act. CSNSW allocated the funds it received on a needs basis and the methodology for doing so is published on its website. The expenditure of 2019 funds for educational purposes was assured through the acquittal process which involved the sign-off by independent auditors to Commonwealth and State Governments.
Financial Compliance and Reporting CSNSW, in its capacity as approved authority for funding the NSW Catholic school system, receives each year approximately $2.7 billion in recurrent grant funding as well as smaller amounts of funds in targeted grants. All grants received by CSNSW have associated financial compliance obligations. Since its establishment in 2017, CSNSW has undertaken a program of continuous improvement to ensure the System best responds to its reporting and certification obligations. Policies and procedures have been implemented to support a compliance framework that is becoming increasingly sophisticated. Key aspects if this program in 2019 included:
1. Engaged an independent audit firm ot review processes and procedures across the system in areas of not-for- profit compliance and, in particular, with section 83C of the NSW Education Act. This work has resulted in the development of: Detailed Related Party Transaction and Conflict of Interest template registers; and Independent reasonable market value benchmark frameworks.
15 CATHOLIC SCHOOLS NSW 2. Engaged its system auditors to undertake an independent audit of compliance. 3. Supported testing and reporting by diocesan auditors of key compliance and reporting matters. 4. Developed an assurance process under which Diocesan Catholic School Agencies, within the overall system, provide certifications that reflect their respective accountability and responsibility. 5. Detailed financial eportingr at school level for all schools in the system in accordance with Australian Government specifications, with figures drawn from and reconciled with audited financial statements. 6. Developed a framework to provide a consistent approach throughout the NSW Catholic School System in the application of new or amended accounting standards.
Recurrent Funding 2020 and beyond In 2018, the National School Resourcing Board (the NSRB) undertook an independent review of the methodology used to calculate the capacity of a non-government school community to contribute to the cost of schooling to ensure it is the fairest, most effective, accurate and transparent model available. The NSRB’s final report made six recommendations, including that the capacity to contribute for a school be determined based on a direct measure of income (‘DMI’) of parents and/or guardians of the students at the school. This measure is a much more accurate representation of a household’s capacity to contribute to school fees, compared to the previous area-based SES methodology. The new methodology is forecast to be largely beneficial to systemic Catholic schools. The combination of the new DMI scores, as well as individual school transition pathways (another feature of the new methodology), is estimated to benefit the System by $1.76bn over the next 10 years, with $1.42bn coming from the Commonwealth and $0.34bn from the State. The Australian Government also introduced a Choice and Affordability package for non-government schools which should result in approximately $210m distributed to Catholic Schools in NSW over a period of 10 years (from 2020 to 2029). The primary purpose of the fund is to provide the resources for initiatives that facilitate parental choice and opportunity, giving parents the ability to choose an affordable school that will best suit their individual child. Other priorities for the fund listed by the Australian Government include: transition assistance; special circumstances funding; strengthening outcomes for schools and educationally disadvantaged schools and students; and student wellbeing and support.
Advisory Structure CSNSW has an Advisory Structure including Management Reference Groups, Working Parties and Networks. These form an important part of CSNSW’s commitment to stakeholder engagement, particularly in considering the views of our Catholic partners. Details are provided in Appendix A.
ANNUAL REPORT 2019 16 Full Cost of Educating a Child in a Catholic School To deepen our understanding of the financial and other fundamentals of Catholic school operations, CSNSW implemented a research project aimed at examining the full costs of school education in NSW Catholic schools. The report presented its findings to the Bishops in November 2018. Large economies of scale exist in the education sector across operating costs, capital costs and financing costs. However, the NSW Catholic schools system, which is less than one third the size of the NSW government system, is less able to gain the benefits of the opportunities while providing parents with real choice. Key Targeted Funding 2019 concerns are establishing and maintaining Small amounts of Commonwealth and State optimal class sizes in small communities. funding were available for specific purposes. In 2019, six funded targeted programs The report presented a preliminary review totalling approximately $20 million covered of the full cost of school education in NSW the areas of: Catholic schools. In 2019, a subsequent project was initiated to obtain a better understanding of the cost of capital. This LITERACY AND work is outlined in the next section (Capital $10.6M NUMERACY (STATE) Support). 3: Capital Support
CSNSW undertakes the role of the Catholic EXTERNAL DELIVERY OF HSC VOCATIONAL Block Grant Authority (CBGA) which is to $2.6M EDUCATION AND administer Commonwealth and State capital (STATE) TRAINING grants for NSW Catholic schools. Diocesan Catholic School Agencies and VOCATIONAL $1.8M EDUCATION AND participating congregational schools have (STATE) TRAINING IN SCHOOLS signed updated membership agreements, that include the CGBA Principles approved by Bishop Members and to Commonwealth and $1.9M CHAPLAINS NSW government requirements. (COMMONWEALTH) CSNSW has executive responsibility for the management of the CBGA. The Board delegated responsibility for the approval of SPECIAL NEEDS $2.7M SUPPORT allocations of capital grants for particular (STATE) school projects, along with associated recommendations, to the Capital Projects Evaluation Panel (CPEP) which currently ROAD SAFETY comprises three Board Directors. CPEP’s $662K EDUCATION (STATE) recommendations go to the relevant Commonwealth or State Minister. BEFORE AND AFTER $510K SCHOOL CARE (STATE) PROGRAM
17 CATHOLIC SCHOOLS NSW NSW Capital Grants In 2019, following representations to the NSW Government, CSNSW secured State capital funding of $300 million over four years. To support the implementation of this fund, the NSW Government refocused allocation requirements to enable BGAs to support growth in student places in identified growth areas. For this purpose, a partnership arrangement has been entered into with the NSW Government to meet State enrolment demands. CBGA governance principles have been refined and approved by Members to reflect this revised capital allocation process.
A robust project evaluation process is in place Memorandum of Understanding with which includes independent assessments for Schools Infrastructure NSW each applicant project of (i) the condition of the CSNSW entered into an MOU with Schools school, (ii) the functionality of current facilities, Infrastructure NSW to collaborate on the and (iii) the educational effectiveness of the planning of school facilities. The MoU proposed capital works. identifies that the parties are willing to work In June 2019, all schools were visited by the collaboratively over time and acknowledges the capital assessment team which included: framework and process that both parties will follow in that collaboration. an experienced school architect; The MOU also seeks to provide a framework for a condition assessment expert; and the investigation and agreement of Joint Use a professional quantity surveyor/cost Projects with the aim to optimise social capital engineer. within communities (either owned by schools or other parties) for the mutual benefit of the parties The team rated each project against the pre- involved without compromising school operations. defined set of project attributes. The projects This collaboration with SINSW has already were then ranked in order of priority for funding. borne fruit in useful exchanges of school In 2019, there were 44 project applications planning data and introduction by SINSW of from systemic and congregational schools. potential land use opportunities for schools. The applications required funding of $134.2 million. Thirty-nine applications representing Finance Officers Working Group $85.2 million in grants were recommended to CSNSW convenes the Finance Officers Working governments for funding. Group, with membership from across the system, for the purpose of providing a forum The 2019 list of approved capital projects for to enable exchange of views and sharing funding is provided in Appendix C. information related to resource or financial- related matters. Details are provided in Appendix A.
ANNUAL REPORT 2019 18 GOOD GOVERNANCE SUPPORT AND ENHANCEMENTS CSNSW has a mandate from the Bishops to support compliance with all Commonwealth and NSW legislation by Diocesan Catholic School Agencies. In addition to the Commonwealth’s Australian Education Act 2013 (Commonwealth) and the Education Act 1990 (NSW), with related amendments and Regulations, there are over 70 State and Commonwealth government pieces of legislation that affect NSW Catholic schools.
Governance Training for Responsible Education Law Symposium Persons Catholic Schools NSW hosted its Inaugural The Education Act 1990 (NSW) requires Education Law Symposium on Monday 30 registered non-government schools to have September 2019 at the University of Technology and to implement policies and procedures for Sydney. The theme for the event was ‘Catholic proper governance. Each person defined under School Governance in the 21st Century’, and the the Act as a ‘responsible person’ is required program content reflected the many complex to undertake initial and ongoing professional governance-related challenges currently facing learning. the NSW Catholic school sector. CSNSW provides Governance training for The event was attended by over 250 diocesan and school-based Responsible participants, comprising mainly Catholic school Persons with the development or upgrade principals, members of the boards of Catholic of eight training modules which address the schools, Catholic dioceses, Catholic religious requirements of the: institutes and congregations. The program was approved by the New South Wales Education Australian Education Act 2013 including Standards Authority as constituting six hours of amendments, Regulations and other approved governance training for Responsible requirements of the Australian Government Persons. Department of Education; The keynote speaker, Ms Susan Pascoe AM, NSW Education Act 1990 including set the agenda for the day’s conversation amendments, Regulations and other by drawing on the lessons from the Royal requirements of the NSW Department of Commission into Banking and the Financial Education; Services Industry to highlight the critical Australian Charities and Not-for-profits importance of culture. Commission (ACNC); and NSW Education Standards Authority (NESA)
19 CATHOLIC SCHOOLS NSW The quality of speakers, the intellectual in the Assurance program and each of those content of the program, and the engaging risks are assessed with respect to the likelihood panel conversations received high praise and consequence of that risk eventuating. The in the feedback received. Participants also risk is then ranked in priority and linked to clearly appreciated the opportunity to network existing controls and/or treatment plans. Our with colleagues. The Catholic Schools NSW Assurance program allows CSNSW to effectively Education Law Symposium will be an annual monitor and control organisational performance. event. Risk management is a core element of CSNSW’s overall Governance Program linked to its Better, Smarter Regulation business processes and strategic goals and At the September Law Symposium, the CEO objectives. Risks are identified and analysed announced that CSNSW was embarking on an across all key functional areas. CSNSW’s initiative to identify and reduce the growing structured and comprehensive approach to burden of regulation imposed by government. risk is documented within the Program and its The CSNSW Better, Smarter Regulation project organisational policies and procedures. CSNSW is designed to identify, rigorously and clearly, recognises that implementing and effectively the burden of regulation that falls on principals maintaining a Risk Management Program and teachers and to set out a practical, requires strong and sustained leadership and achievable work program to lighten this burden. commitment from the Board of Directors and A comprehensive Issues Paper which explores the Leadership Team. The Board is committed the issues at play in the regulation of school to ensuring oversight of the Risk Management education and identifies potential ways Program. forward was published. It is intended that CSNSW understands that its ability to a final Roadmap which incorporates advice effectively achieve its strategic goals and from Catholic School Agencies and teachers objectives is reliant upon the quality of the will be delivered to State and Commonwealth governance framework, and the strength of its Governments by mid-2020. culture. To this end, CSNSW has implemented:
Statutory Committee An Enterprise Risk Management Program CSNSW is a member of the Non-Government designed in accordance with the Schools Not-For-Profit Advisory Committee. International Risk Management Standard ISO The committee was created by statute (under 31000; section 83C of the Education Act 1990 (NSW)) A Compliance Program designed in and was first established in October 2014. The accordance with the International Committee provides advice to the Minister Compliance Standard AS/ISO 19600; for Education on the compliance of schools A Workplace Health and Safety Program and their proprietors with the not-for-profit designed in accordance with Australian requirements of the Education Act. Standards AS4801 and AS 4804; The Committee contributes to the publication A Privacy Program designed in accordance of a regular newsletter and related guidance on with the 13 Australian Privacy Principles; financial compliance matters affecting schools. A Business Continuity Management Program designed in accordance with Australian Risk Management Business Continuity Standard AS/NZ 5050; CSNSW has developed its Risk Management and Program based on the International Standard Established a whistleblowing service for for Risk Management (ISO 31000:2018). CSNSW employees. Risk management forms an important part of CSNSW’s Governance Program and is closely linked with CSNSW’s Compliance Program. CSNSW uses an online software solution to manage its Risk Management and Compliance Programs. Each identified risk event is recorded
ANNUAL REPORT 2019 20 Legal Hotline and Advice In September 2019, CSNSW launched a Legal Hotline 1800 4CSNSW (1800 EDUCATIONAL 427 679) to assist Catholic School EFFECTIVENESS AND Agencies and leaders with advice. CSNSW provides advice to Principals EFFICIENCY and Catholic School Offices on various CSNSW has a constitutional requirement to matters including Child Protection, provide Catholic School Agencies and Bishop Privacy, Copyright, Family Law, Members with a reporting framework on the Students on Visas and Emergency efficiency and effectiveness of the system and Management. to ‘report against a range of efficiency and From time to time, CSNSW is also effectiveness domains relating to the provision asked to provide advice to Bishops, of Catholic education’ (Constitution 5.2 (k)). This Diocesan offices and Diocesan work is a major strategic imperative. Catholic School Agencies on financial compliance matters related to the Reports on the System delivery of education. CSNSW has initiated bi-annual system-wide reporting on a range of performance indicators Emergency Management through its State of the System report. The In 2019, CSNSW provided leadership purpose of the report is to provide a statistical in the area of emergency management snapshot of the system and attendant analysis of through engagement with the State key trends. A focus of the 2019 report, the second Emergency Operations Centre and in the series, was on providing meaningful ways of the other two school sectors. This visualising information extracted from the data to enabled CSNSW to provide accurate identify trends and developments. The 2019 State and timely information and advice to of the System report was delivered to the Bishops Catholic School Agencies and individual in July. Areas of coverage included: schools to ensure the Catholic school sector was responsive to a range Student/Staff Ratios of emergency situations including Funding Sources bushfires, floods and extreme weather. Apparent Retention Representative Negotiations NAPLAN On occasion, CSNSW represents NSW HSC Catholic schools in the negotiation of licenses or provision of services by VET Participation external bodies. In 2019, CSNSW the Post-School Outcomes following were negotiated. Socio-Educational Advantage Copyright Students with Disability CSNSW participated in the negotiation Indigenous Enrolments of licenses on behalf of Catholic schools in NSW to use copyrighted materials Australian Early Development Census for educational purposes within certain Language Background limitations. Overseas Students Work Experience / Workplacement Student Attendance Insurance Teacher Experience CSNSW secured employer liability cover for 18,907 students in Catholic schools in NSW and ACT undertaking school approved work experience and placement programs in 2019.
21 CATHOLIC SCHOOLS NSW Data Analytics Capacity Enhanced internal data capability CSNSW data analysis capacity was enhanced In 2019, CSNSW Data Directorate commenced with the formation of Analytics Central in 2019. automation of the Census collection process, using a data platform with analytics tools This specialist team, operating as a central and an enterprise data warehouse to reduce resource for all Directorates, worked on a range the challenges of manual processing with its of initiatives including: attendant issues with data quality. The 2019 Projects focusing on enrolments and internal enhancement exercise sought to academic analysis; improve the Census collection, reconciliations and work practices, which previously were System reporting to the Board; manual and resource intensive. Interactive dashboard development, allowing online interactivity and advanced External partnerships visualisation reporting; CSNSW has entered into data sharing Analytics support to Diocesan Catholic agreements with the NSW Education Standards School Agencies and to RI/PJP schools in Authority (NESA) and the NSW Department their strategic planning; and of Education for timely provision of complete Assisting with research and materials for NAPLAN and HSC datasets which enable external advocacy. detailed data analytics and reports on system performance. In addition, the Department of Education analytics platform Scout and CEnet analytics platform CEd3 are used for ongoing analytics support to diocesan Catholic School Agencies and individual schools.
ANNUAL REPORT 2019 22 Census of Enrolments The Census of Student and Staff by CSNSW is conducted biannually (February and August). The February Census is an estimate and not required for recurrent funding, nevertheless its collection supports:
Whole sector statistical analysis and reporting; Historic trend and forecasting analysis to support planning; Strategic policy planning decision-making; Informing recurrent funding and capital works requirements e.g. new school planning; Support for media engagement and public debate; and Government advocacy and information requests.
The August collection is used for recurrent funding by State and Federal governments and for the development of CSNSW State of the System reports.
Address Collection For the purpose of the Student Residential Address and Other Information Collection under the Australian Education Act 2013 for eligible Commonwealth recurrent funding, CSNSW, as system authority, collects and reports student addresses to AGDET. The 2019 address collection saw a significant increase in the validation and accuracy rate from schools using new address validation software. Aspects of initiatives outlined in other sections of this report, notably National and State Education Policy Initiatives, are integral to the CSNSW priority to maximise student outcomes and the efficiency and effectiveness of the NSW Catholic school system and provide the context for achieving elements of the framework.
23 CATHOLIC SCHOOLS NSW NATIONAL AND STATE EDUCATION POLICY INITIATIVES CSNSW manages programs which address national and state education policy priorities including those outlined in the National School Reform Agreement and Bilateral Agreement and the National Data Projects. Aspects of these programs are reported within the CSNSW Efficiency and Effectiveness Reporting Framework. Five State Managers, Policy and Programs within the Education Policy Directorate are responsible for providing expert education policy and program advice to CSNSW, the Catholic School Agencies, schools and government. Each State Manager, typically, has a portfolio of policy and program areas and acts as the executive officer of a reference group, policy network or other consultative group. The State Managers also represent CSNSW on numerous external boards, committees and working groups.
Aboriginal and Torres Strait Islander Education CSNSW supported a range of activity across Catholic School Agencies and schools including in the areas of culturally inclusive schools, strategic partnerships, leadership, quality teaching and workforce development, student attendance and transition, literacy and numeracy and parent, family and community engagement. In 2019, The CSNSW Aboriginal and Torres Strait Islander Conference was held with representation from all diocesan Catholic School Agencies; Diocesan and school personnel participated in NESA- accredited professional learning to support culturally inclusive schools; and The CSNSW Reconciliation Action Plan was ratified.
Assessment Programs CSNSW supported substantial activity across Catholic School Agencies and individual schools in relation to the National Assessment Program, including the transition of NAPLAN tests to an online mode of delivery by 2021. In 2019, CSNSW: Provided expert advice and support to schools and diocesan personnel to assist in their engagement in 2019 NAPLAN online; Contributed to the development, implementation and evaluation of all aspects and stages of the NSW NAPLAN Online transition strategy;
ANNUAL REPORT 2019 24 Coordinated the Catholic sector NAPLAN 50,000 students with disability enrolled in NSW Online Operational Group to assist Catholic Catholic schools in 2019: School Agencies with the transition to NAPLAN Online including roll-out of training, All 598 NSW Catholic schools participated in required participation in the Practice Tests, NCCD data collection and census reporting; Helpdesk support and advice in the use of Representative staff in 594 Catholic schools the NESA NAPLAN analytics application participated in targeted professional (‘Scout’); learning on the NCCD Guidelines as well as Worked to develop a single sign-on to the inter-school diocesan targeted moderating Scout application through the CSNSW activities; identity management system (NETID) now CSNSW’s Personalised Planning for Students available to all NSW Catholic schools; with Disability (PPSD) online tool was Supported the operational delivery of the utilised by 594 schools as well as diocesan 2019 paper-based NAPLAN test across personnel; NSW Catholic School Agencies with the School and diocesan staff applied NCCD intention of enabling progressive transition Guidelines more confidently and consistently to NAPLAN Online by 2021; and when establishing the NCCD classifications Coordinated and provided operational and adjustment levels of their students; support for the required participation in Validated 2019 NCCD data reveals the readiness activities for those schools which frequency of NCCD categories and will deliver NAPLAN in the online mode for adjustment levels is within likely and the first time in 2020. acceptable range; Authorised system personnel are able to Curriculum ‘self-serve’ in accessing and using data During 2019, CSNSW conducted the Preparing visualisations through the online platform. Students for the Future: Curriculum and Assessment project which focused on provision Early Learning of sound policy advice along with coordination CSNSW continued to support 99 schools of Catholic sector engagement with the NSW targeted for participation in the K-2 element K-12 Curriculum Review. Teachers in Catholic of the NSW Literacy Numeracy Strategy 2017- schools from across NSW, including those in 2020. As an obligation under the funding regional and rural settings, engaged in NSW agreement which provides $10m annually to Curriculum Review collaborative forums. support these schools, CSNSW coordinated the Related to this Review, NSW Catholic schools collection, validation and reporting of data for were supported to engage in activities to monitoring and evaluation purposes. enhance applicability of the Literacy and CSNSW supported a network of diocesan Numeracy Learning Progressions. managers of Literacy and Numeracy programs to ensure full representation of Catholic sector Disability Support interests at State meetings and to assist CSNSW supported substantial activity across managers in their implementation of literacy Catholic School Agencies and individual schools and numeracy initiatives. As part of this activity, by providing advice and guidance. the revised Best Start Kindergarten assessment With regard to the annual Nationally Consistent was implemented in 190 Catholic schools. Collection of Data on Students with Disability Tailored early learning resources which focus (NCCD) census, individualised school support, on learning partnerships between home, school professional learning workshops and networking and community were developed. opportunities and resources were provided. CSNSW improved NCCD quality assurance and moderation processes, thus improving consistency of NCCD data for the more than
25 CATHOLIC SCHOOLS NSW Mission and Student Wellbeing CSNSW supported activity across Catholic School Agencies and individual schools in relation to mission and identity, religious education and areas pertaining to the Catholic ethos of the school, in addition to student health, safety, welfare and wellbeing.
In 2019, CSNSW: Continued to provide advice to Catholic Hosted the Towards Wholeness online School Agencies and individual schools resource which supports the teaching in relation to student attendance of Personal Development, Health and matters and acted as the conduit for Physical Education (PDHPE) K-10 in habitual non-attendance referrals to the NSW Catholic schools; NSW Department of Education’s Legal Participated in State and National Services Division in accordance with policy forums with respect to child NSW Education Act requirements; protection and safeguarding as well as Advocated for and represented the Catholic Church’s response to the the Catholic sector with external Royal Commission into Institutional stakeholders through a range of cross Responses to Child Sexual Abuse; sector school education committees and committees convened by health, welfare and child safety agencies.
ANNUAL REPORT 2019 26 Professional Learning Institute Vocational Education and Training A focus in 2019 was the establishment of the CSNSW supported Vocational Education Professional Learning Institute as a means to and Training (VET) activity across Catholic further build system capacity and to support School Agencies and individual schools in quality teaching and school improvement. relation to VET including in the areas of CSNSW: Agriculture, Automotive Servicing, Business, Construction, Early Childhood Education and Scoped the options for a Catholic sector Care, Engineering, Electrotechnology, Financial Professional Learning Institute and Services, Hospitality, Individual Support commenced a review and consolidation of (Ageing), Retail Services and Sports Coaching. existing professional offerings; CSNSW advocated for and represented the Developed a strategy, in consultation Catholic sector with external stakeholders with Catholic School Agencies and the through a range of committees. NSW Education Standards Authority, to support teachers seeking higher levels of accreditation; CSNSW managed the VET Teacher Training Scoped the development of targeted Program to ensure the Catholic sector strategies to support regional, rural and has qualified VET trainers and oversees remote professional learning; and the External Vocational Education and Offered specific teacher and school Training (EVET) program for the Catholic leadership professional development in areas sector which involves working with the NSW such as: Department of Education and Association Governance and Responsible Persons; of Independent Schools and external HSC analysis; Registered Training Organisations. Crossing Cultures, Hidden Histories; Aboriginal and Torres Strait Islander education; Disability support; VET teacher training; K-6 forums; Early years education; and Highly Accomplished and Lead Teachers. 11,279 268 1300 STUDENTS STUDENTS VET TEACHERS In 2019, 11,279 students There were also 268 students In 2019, CSNSW developed undertaking a Higher School in Years 9 and 10 who were an online tool to support VET Certificate (HSC) study enrolled in at least one VET students and their teachers were enrolled in at least one qualification that contributed manage the requirements of VET qualification (30.27%). towards the NSW Record of mandatory work placement. The total VET qualification School Achievement (ROSA). 1300 VET teachers in Catholic enrolments that contributed schools and their 11,500 towards the HSC in 2019 students implemented the were 14,854. new online tool.
27 CATHOLIC SCHOOLS NSW CATHOLIC SCHOOLS NSW SPORT In 2018, the Bishop Members appointed the CEO and Company Secretary of CSNSW as board members of Catholic School Sports Services (CSSS) with a brief to bring CSSS into the CSNSW structure. In late 2019, the Catholic School Sports Services team was formally incorporated into Catholic Schools NSW. Catholic Schools Sports Services (CSSS) was formed in 2012 to expand the service of pathway sport and to provide support to diocesan Catholic School Agencies. Since 1995, two separate entities operate to provide opportunities for students in Catholic schools to have a pathway to representative sport. NSW Combined Catholic Colleges Sports Association (CCC) for students in Catholic secondary schools runs through a combination of sporting Associations (e.g. Metropolitan Catholic Colleges Sports Association, Metropolitan Catholic Schools Sports Association, Catholic Girls Schools Secondary Sports Association etc.) and the dioceses.
ANNUAL REPORT 2019 28 NSW Catholic Primary Sports Council (CPS) for students in Catholic primary schools operates through the dioceses via two groupings:
Polding, including the dioceses of Armidale, Bathurst, Broken Bay, Lismore, Maitland- Newcastle and Wilcannia-Forbes; MacKillop, including the dioceses of Canberra and Goulburn, Parramatta, Sydney, Wagga Wagga and Wollongong.
Over 22 sports are offered across primary and secondary. Diocesan Catholic School Agencies are represented in the committee structures that assist administration of Catholic school sports. Building on this foundation and recognising the importance of sport as a rich source of values and virtues, Catholic Schools NSW Sport aims to ensure schools can use sport as a means of Christian formation and personal development for all students. Pope Francis recently noted:
Sport plays a very important role in growth and development. That is why the Church values sport in itself as an arena of human activity where one can foster virtues of temperance, humility, courage and patience, and witness encounters with beauty, goodness, truth and joy.
Sport is a key part of a school’s identity and the development of young people. CSNSW Sport endeavours to offer effective and enjoyable pathway programs that allow all those involved to display their sporting skills in a safe, vibrant and inclusive environment. In late 2019, the CSNSW Sport website was launched to assist students, teachers, parents and other stakeholders engaging with pathway sport. In 2019, over 10,000 Catholic school children have attended selection events in both CPS and CCC. In 2020, Catholic Schools NSW Sport will look to the future as it aims to take a pro-active role in ensuring that Catholic Schools in NSW fully realise the benefit that sports can have on Catholic education. CSNSW Sport will continue to form strong partnerships with schools, parents, state and national sporting associations, and other education sectors.
29 CATHOLIC SCHOOLS NSW APPENDIX A: ADVISORY & CONSULTATION ACTIVITY
ANNUAL REPORT 2019 30 MANAGEMENT REFERENCE GROUPS CSNSW has four reference groups which are an important part of stakeholder engagement, particularly in considering the views of our Catholic partners. Individuals were appointed following a nomination process across Diocesan school offices with regard for their professional history and finding the right mix between rural and regional representatives, primary and secondary school representatives, in addition to congregational representation.
Aboriginal and Torres Strait Islander Education The Aboriginal and Torres Strait Islander Education Reference Group met on six occasions in 2019.
Membership Jayde Ward (Chair), State Manager Policy and Programs, Aboriginal Education, CSNSW Sharon Cooke, Diocese of Armidale Darlene Murdoch, Diocese of Bathurst Kerry O’Callaghan, Archdiocese of Canberra and Goulburn Kate Rayment, St Scholastica’s College, Glebe Karan Taylor, Diocese of Wollongong Merindah Wilson, Diocese of Wilcannia-Forbes
Focus of Activity In 2019, the Aboriginal and Torres Strait Islander Reference Group:
Provided advice on Aboriginal issues within early childhood education; Provided expert advice to NESA regarding the Aboriginal Languages K-10 Syllabus development; Provided advice and guidance regarding CSNSW’s Reconciliation Action Plan; Participated in NATSICC workshops and provided guidance with respect to the acknowledgement plaques endorsed by the Australian Catholic Bishops Conference; Provided advice on NSW Aboriginal and Torres Strait Islander Policy.
31 CATHOLIC SCHOOLS NSW Education Policy The Education Policy Reference Group met on six occasions in 2019.
Membership Danielle Cronin (Chair), Director, Education Policy, CSNSW Anne-Maree Creenaune, Diocese of Wollongong Tony Fitzgerald, Mater Dei, Camden Rose-Marie Van Raad, Diocese of Bathurst Sue Walsh, Diocese of Parramatta Maree Williams, Archdiocese of Canberra and Goulburn
Focus of Activity The Education Policy Reference Group provided advice to CSNSW on key national and state policy developments:
The National Schools Reform Agreement and Bilateral Agreement; The NSW Curriculum Review; The Commonwealth Senior Secondary Pathways Review; The Tri-State NAPLAN Review; Review of the Melbourne Declaration; Matters arising from other Reference Groups.
Mission and Identity The Mission and Identity Reference Group met on four occasions in 2019.
Membership Danielle Cronin (Chair), Director, Education Policy, CSNSW Giovanna Angeli, Council of Catholic School Parents Gary Borg, Diocese of Parramatta Anthony Cleary, Archdiocese of Sydney Joanne Hack, St Mary Star of the Sea College, Wollongong John Kyle-Robinson, Marist Schools Australia Gary Reen, Diocese of Lismore
Focus of Actvity The Mission and Identity Reference Group:
Contributed to the Review of the Melbourne Declaration; Discussed issues related to the participation of children and young people with disability in the sacramental life of the Church; Discussed Issues related to the CSNSW resource, Towards Wholeness; Contributed to the CSNSW response to the NESA Curriculum Review; Discussed implications for Mission and Identity in Pope Francis’ document: Gaudete et Exsultate.
ANNUAL REPORT 2019 32 Vocational Education and Training Focus of Activity The Vocational Education and Training The Vocational Education and Training Reference Group met on four occasions in 2019. Reference Group:
Membership Supported the delivery of Vocational Gerard Delany (Chair), State Manager Education and Training in Catholic Schools; Policy and Programs, Vocational Education, Assisted the nine Catholic sector RTOs to CSNSW ensure their compliance under the Standards Geraldine Blake, Diocese of Maitland- for RTOs; Newcastle Supported the development of vocational Phil Cox, Diocese of Broken Bay learning and careers development in Catholic schools; Joanne Flanagan, Diocese of Wagga Wagga Supported teacher training for new teachers Christine Fraser, Diocese of Wollongong and the transitioning of teachers to the new Stephen Mitchell, Diocese of Bathurst qualifications where the qualification was Stephen Pares, St Agnes’ Parish Education, superseded; and Port Macquarie Provided advice to CSNSW on VET as part Mark Pincott, Archdiocese of Canberra and of the NSW Education Standards Authority Goulburn review of the curriculum. Christine Shakya, Archdiocese of Sydney Virginia Van Gend, St Stanislaus College Bathurst Sue Watts, Diocese of Lismore
33 CATHOLIC SCHOOLS NSW September) Glenn McLachlan, Archdiocese of Sydney WORKING PARTIES (from September) A number of Working Parties support the work Steve Reissig, International Education of CSNSW and participating dioceses across a specialist (by invitation) range of strategic areas. Bede Ritchie, Diocese of Wollongong Aboriginal and Torres Strait Islander Chris Smyth, Diocese of Armidale Catholic Education NSW State Conference Rose-Marie van Raad, Diocese of Bathurst The ATSI 2019 Conference Working Party met Greg Whitby (until September) on twelve occasions in 2019. Dan White, Archdiocese of Sydney (until September) Membership Armidale: Sharon Cooke Focus of Activity Bathurst: Darlene Murdoch The Efficiency and Effectiveness Working Party: Maitland-Newcastle: Louise Campbell, Suzanne Fern, Susan Hutchens Provided advice on the 2019 CSNSW State of the System report provided to the NSW Wollongong: Karan Taylor Bishops; CSNSW: Jayde Ward, State Manager Policy Contributed to the development of a and Programs, Aboriginal Education landscape paper on system and school Focus of Activity improvement; The Punaal, Ponte-Boone, Biamie Aboriginal Provided advice on excellence and equity and Torres Strait Islander Catholic Education with respect to Catholic education and State Conference was held on 11-12 September student outcomes. 2019, in partnership with Catholic Education in the Diocese of Maitland-Newcastle. There Finance Officers were over 500 attendees, both Aboriginal and The Finance Officers Working Party met on 11 non-Aboriginal, from all dioceses and many occasions in 2019. RI/PJP schools. The conference provided an opportunity for participants to explore effective Membership and culturally appropriate strategies to enhance Armidale: Helen Williamson the educational outcomes for Aboriginal and Bathurst:Sue Boss Torres Strait Islander children and young people. Broken Bay: Helen Bentham It was also an opportunity to play an active role Canberra and Goulburn: Margaret Ciccolini, in the process of reconciliation by strengthening Alison Wildman existing networks and to share, collaborate and Lismore: Peter McWilliam celebrate the achievements of our students, teachers and schools. Maitland-Newcastle: Oliver Connolly Steven Shaw Effectiveness and Efficiency Parramatta: Nick Shaw Sydney: Glen McLachlan, Anthony Smith The Efficiency and Effectiveness Working Party Wagga Wagga: Andrew McIntosh met on five occasions in 2019. Wilcannia-Forbes: Mal Goodwin Membership Wollongong: Bede Ritchie Danielle Cronin (Chair), Director Education CSNSW Permanent: Brian McDonald (Chair), Policy, CSNSW Natalie Bui, Con La Spina Jenny Allen, Diocese of Bathurst CSNSW ad hoc: Dallas McInerney, Geoff Michael Bezzina, Education Consultant (until Miller, Kevin Morrison
ANNUAL REPORT 2019 34 Focus of Activity The Finance Officers Working Party: Bathurst:Pauline Walkom Broken Bay: Carmel Kriz Provided oversight of the implementation of common new policies to be used by Canberra and Goulburn: Colleen Caddey- diocesan school offices and schools in Murphy relation to: Lismore: Mary Walsh – related party transactions (RPTs); Maitland-Newcastle: Sue Hutchens – RPT registers created by diocesan school Parramatta: Liz McQuade-Jones offices and schools; Sydney: Sue Sinko – establishing a minimum level of evidence Wagga Wagga: Louise Blanchard required to satisfy reasonable market Wilcannia-Forbes: Simone Harding value (RMV) for transactions as required by S83C of the Education Act NSW Wollongong: Kay Blundell (1990); CSNSW: Karen Ferrante (Chair), Angela Cain – developing a common understanding of expectations to be able to comply with Focus of Activity: S83C; and Co-ordinated the operation of the Best Start – a declaration process and forms to Kindergarten Assessment, Best Start Year 7 ensure satisfactory levels of compliance; and the Phonics Check and the deployment of PLAN2 as a student achievement analytics Identified areas that would become part of tool; the next phase of the compliance project; Undertook detailed data analysis of available Significantly improved the assurance datasets including NAPLAN, to monitor processes for the NSW Catholic school school achievement; system by developing an agreed set of integrated audit arrangements to be applied Co-ordinated the development of during the 2020 audits that involved professional learning particular to Literacy streamlining some processes, additional and Numeracy K-2 and the Literacy and audits in some specific areas and more Numeracy Learning Progressions; closely defined areas of responsibility Evaluated the utility of PLAN2 as an between diocesan and system auditors; and analytics package and provided feedback Provided an effective forum for: to the NSW Department of Education regarding required enhancements; – the dissemination of system wide news to diocesan finance personnel; Co-contributed to the CSNSW 2019 LNAP implementation plan and progress report; – diocesan finance personnel to alert others of potential pitfalls and concerns; and NAPLAN Online Membership – the sharing of ideas and approaches to Armidale: Dale Cain common problems across the system. Bathurst:Teresa Dobosz, Vicki Vance Literacy and Numeracy Action Plan Broken Bay: Mark Askew The Literacy and Numeracy State Action Plan Canberra and Goulburn: Phil Pettit Working Party met on nine occasions in 2019. Lismore: Andrew Madden, Rick Sanderson Membership Maitland-Newcastle: Catherine Murray Armidale: Dale Cain Parramatta: Gary Brown, Stefan Boffa Sydney: Anne Addicoat (Chair) Wagga Wagga: Karen Gardiner
35 CATHOLIC SCHOOLS NSW Wilcannia-Forbes: Simone Harding Wollongong: Therese Campbell, David Emery NETWORKS CCER: Colin Davey Networks are less formal groups which provide a professional forum to share advice and CEnet: Ian Gregory information and to develop resources. Members CSNSW: Karen Ferrante of Networks connected online and occasionally through face-to-face meetings. Focus of Activity The NAPLAN Online Working Party: Communications Co-ordinated the operation of the Catholic Schools NSW hosted a fortnightly Student Readiness Test in schools; teleconference with communications contacts from each Diocese to provide updates on Co-ordinated the participation in Government engagement and other media a mandatory practice test event in activity. Catholic Schools NSW media team March 2019 including the provision of remains available to support schools and face-to-face and online training for Diocese with media enquiries as required. schools delivering the tests online in the May event; Early Years Evaluated the new analytics package, The Early Years Network met on two occasions Scout, and provided feedback to in 2019. the NSW Department of Education regarding required enhancements; Membership Considered proposals from NESA Armidale: Dale Cain regarding the establishment of a Bathurst: Melissa Fuller, Pauline Walkom NAPLAN unique and persistent Broken Bay: Janai Alyer, Sally Harrison identifier to replace the Student Canberra and Goulburn: Alice Castrission Registration Number (SRN) from 2019. Lismore: Marina Hynes, Christie Ismay, Kate Salmon Maitland-Newcastle: Kim Moroney Parramatta: Angela Machado, Liz McQuade Sydney: Franceyn O’Connor, Sue Sinko Wagga Wagga: Penny Ludicke Wollongong: Jo Treffone Mater Dei Early Childhood Education Program: Pamela Templeton CSNSW: Karen Ferrante, Cathie Renfrew, Mary Ryan
Focus of Activity Contribution to the development of the CSNSW Foundations for Learning project; Contribution to the Review of the National Quality Framework Review; Provided advice on transition to school programs.
ANNUAL REPORT 2019 36 Inter-Diocesan Educational Accountability Road Safety (IDEA) Group The Road Safety network met on four occasions The IDEA Group met on four occasions in 2019. in 2019.
Membership Membership Armidale: Gary Burdett, Gary McSweeney, Armidale: Carmel McCosker Paul Holman Bathurst:Linda Densmore Bathurst:Teresa Dobosz, Cathy Gaudry Canberra and Goulburn: Sheree Bush Broken Bay: Rosemary Vellar (Chair) Lismore: Karen Evans Canberra and Goulburn: Tim Elliott, Katrina Maitland-Newcastle: Bernadette Duggan McGrath Parramatta: Beth Lincoln Lismore: Andrew Madden Sydney: Andrew Sortell Maitland-Newcastle: Lisa Little Wagga Wagga: Anthony Hood Marist Schools Australia: Elizabeth Gallagher Wilcannia-Forbes: Simone Harding Parramatta: John Gildea, Phillip Smith Wollongong: John Sparks Sydney: Anne Addicoat CSNSW: Peter Grace (January to May); Wagga Wagga: Rosemary Clarke Jennifer Coen (from November) Wilcannia-Forbes: Maryellen Dempsey, Brett Henderson Focus of Activity Worked on special projects with Transport Wollongong: John Barrington for NSW (TfNSW) to update curriculum CSNSW: Bronwyn Hession resources which were then shared across the three education sectors in NSW; Focus of Activity The IDEA Group: Commenced social media communications; Commenced work on development of a Established a support mechanism for Road Safety Policy and the implementation diocesan officers who take carriage of online teaching resources. of school reviews; this fostered the development of working relationships Student Wellbeing between diocesan officers to enable them The Student Wellbeing network met on four to seek clarification of regulatory matters occasions in 2019. within a non-judgemental environment. Established common understandings of Membership regulatory requirements culminating in the Armidale: Carmel McCosker development of diocesan specific support Broken Bay: Patti Beattie documents for schools. Canberra and Goulburn: Christine Wanjoura Developed documentation comparing and Lismore: Karen Evans contrasting diocesan approaches to school Maitland-Newcastle: Kathy Gillespie, Craig review and related issues. Moore Established joint-ventures between dioceses Parramatta: Anouska Houseman that enabled the use of common web-based Sydney: Di Beckett, Deidre Clifton, Jo solutions for compliance management and Gonzaga, Wendy Howlett, Rana Meldrum administration. Wagga Wagga: Monica Cameron Provided a reference group for CSNSW to coordinate responses/submissions to Wollongong: Kerrie Hayes-Williams, Monika regulatory authorities on issues as they Trauth-Goik arose. CSNSW: Peter Grace (January to May); Jennifer Coen (from November)
37 CATHOLIC SCHOOLS NSW Focus of Activity NDIA were also invited from time to time to Facilitated presentations by an international share training and advice speaker on Positive Behaviour for Learning specifically in the area of disability and diverse (PBL); learning Shared current PBL best practice in NSW Catholic schools including leadership strategies, change management initiatives, The Students with disability networks met advanced implementation processes and on 4 occasions in 2019. Membership of the classroom support plans. diocesan network
included senior officers with responsibility for Students with Disability disability and the RI/PJP Two students with disability networks operated Network included practitioners and middle in 2019, one for diocesan leaders. officers and another for practitioners in RI/ Membership PJP schools. The purpose of the networks is to The network is drawn from each of the 11 NSW provide a professional Catholic dioceses with specific responsibilities in forum for sharing advice and information on the areas of disability policy and programs and state and federal the NCCD. disability policy and provide training and Armidale: Pauline Hawkins support for the CSNSW Bathurst: Diana Scullard Personalised Planning tool. Facilitated Broken Bay: Christine Grima Farrell collaborative sharing Archdiocese of Canberra Goulburn: Christine opportunities were also provided for the Wanjura participants in areas such Lismore: Danny Rankin as NCCD processes and implementation, Maitland Newcastle: Kathy Gillespie including moderation, and HSC Parramatta: Mary Creenaune Disability provisions. Other external Sydney: Karen Cahill stakeholders such as NESA and the
ANNUAL REPORT 2019 38 Wagga Wagga: Monica Cameron Designed implementation strategies and Wilcannia Forbes: Prue Dawson timelines for enforcement of suspension of teacher accreditation due to non-payment of Wollongong: Cynthia McCammon fees from 2019; Achievements Exchanged strategies for effective TAA The Students with Disability network group monitoring of member school compliance successfully guided and navigated diocesan with teacher accreditation policies and schools through the 2019 NCCD collection, with procedures; a tremendous increase in data quality as well as Provided constructive feedback to NESA an increase in teacher capacity and confidence regarding functionality problems of NESA’s to implement the NCCD Guidelines. online accreditation management system, eTAMS, NESA’s TAA communication, and Teacher Accreditation Authorities policy development. The Teacher Accreditation Authorities network met on four occasions in 2019. Teacher Development The Teacher Development Network met on four Membership occasions in 2019. Armidale: Gary Burdett, Colin Butters, Paul Holman Membership Bathurst:Sue Dickson, Teresa Dobosz Armidale: Colin Butters, Amelia Woolaston Broken Bay: Narelle Cartright, Brenton Bathurst: Sue Dickson, Teresa Dobosz, Greg Gurney McKay Canberra and Goulburn: Katrina McGrath, Broken Bay: Narelle Cartright, Brenton Lynette Smith Gurney Lismore: Dianne McGowan Canberra and Goulburn: Lynette Smith Maitland-Newcastle: Narelle Cross, Liz Lismore: Michele McDonald, Nadine Slingsby Latham, Jane Scahill Maitland-Newcastle: Narelle Cross, Liz Parramatta: John Gildea, Sue Mackenzie, Latham, Jane Scahill Matthew Troy Parramatta: Patrick Barrett, Matthew Troy Sydney: Elizabeth Atherton, Steven Gough Sydney: Elizabeth Atherton, Steven Gough Wagga Wagga: Prue Horan, Charlene Wagga Wagga: Prue Horan, Anne Ryan Robson Wilcannia-Forbes: Vicki Bourne-Fallon, Wilcannia-Forbes: Maryellen Dempsey, Maryellen Dempsey, Angela Kennedy Simone McCarthy Wollongong: Gayle McMahon Wollongong: Robyn Fletcher, Gayle CSNSW: Danielle Cronin, Bronwyn Hession, McMahon Mary Ryan, Paul Rodney CCER: Carolyn Synott CSNSW: Bronwyn Hession, Mary Ryan, Paul Focus of Activity Rodney The Teacher Development Network has been instrumental as platform through which Focus of Activity dioceses can share and consider professional The Teacher Accreditation Authorities (TAA) learning. The TDN has acted as a collective think group: tank for dioceses to examine their work and the work of others with a particular focus on Planned training for assessors of applications developing leaders. for accreditation for highly accomplished and lead;
39 CATHOLIC SCHOOLS NSW Years K to 6 The Years K to 6 network met on two occasions in 2019.
Membership The K-6 Network is comprised of curriculum specialists from each of the 11 NSW Catholic dioceses and RI/PJP schools.
Focus of Activity Shared quality K-6 pedagogical practices from across diocesan and school settings; Engaged in collaborative professional learning, including engaging with external guest speakers from NESA, ACARA, Copyright Agency Limited, Reading Australia; Engaged in syllabus consultation, familiarisation and implementation discussions; Contributed to the NSW Curriculum Review.
ANNUAL REPORT 2019 40 APPENDIX B: 2019 FINANCIAL REPORT AND INDEPENDENT AUDITOR’S REPORT
41 CATHOLIC SCHOOLS NSW STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2019
2019 2018 Note $ $ Revenue from Continuing Operations 2 17,784,678 12,562,121 Employee benefits expense (9,108,179) (6,961,182) Depreciation and amortisation expense (1,166,572) (147,465) Finance charges (168,420) - Projects and grant costs (4,990,239) (2,217,589) Office services expense (694,507) (953,453) Travel expense (700,108) (286,350) Information technology expense (934,564) (639,027) Administration expense (1,487,356) (1,242,309) (Deficit) surplus for the year before transfer of assets (1,465,267) 114,746 Gain on transfer of assets from Catholic Schools Sports Services 3 (“CSSS”) 1,093,611 - Gain on transfer of assets from Catholic Education Commission New South Wales (“the CECNSW”) - 3,475,264 (Deficit) surplus for the year from continuing operations (371,656) 3,590,010 Other comprehensive income - - Total Comprehensive (loss) income for the year (371,656) 3,590,010
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2019
2019 2018 $ $ Total Equity at the Beginning of the Year 3,908,035 318,025 Total Comprehensive (loss) income for the Year (371,656) 3,590,010 Total Equity at the End of the Year 3,536,379 3,908,035
ANNUAL REPORT 2019 42 STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2019
2019 2018 Note $ $ CURRENT ASSETS Cash and cash equivalents 4 799,736 464,416 Trade and other receivables 5 396,333 701,088 Inventories 6 167,228 - Other financial assets 7 50,093,210 41,086,447 Other assets 8 1,250,625 995,117 Total Current Assets 52,707,132 43,247,068 NON-CURRENT ASSETS Property, plant & equipment and intangible assets 9 2,358,725 332,027 Right of use assets 10 2,516,881 - Total Non-current Assets 4,875,606 332,027 Total Assets 57,582,738 43,579,095 CURRENT LIABILITIES Trade and other payables 11 49,473,677 38,386,820 Employee entitlements 12 1,162,979 1,012,134 Lease liabilities 13 667,835 - Total Current Liabilities 51,304,491 39,398,954 NON-CURRENT LIABILITIES Employee entitlements 12 445,466 272,106 Lease liabilities 13 1,958,520 - Leasehold make-good provision 337,882 - Total Non-current Liabilities 2,741,868 272,106 Total Liabilities 54,046,359 39,671,060 Net Assets 3,536,379 3,908,035 EQUITY Accumulated Funds 14 3,536,379 3,908,035 Total Equity 3,536,379 3,908,035
43 CATHOLIC SCHOOLS NSW STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2019
2019 2018 Note $ $ CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers (inclusive of goods and services tax) 16,875,094 14,105,047 Payments to suppliers and employees (inclusive of goods and services tax) (18,449,877) (13,356,857) (1,574,783) 748,190 Net interest received 424,391 317,982 Other revenue 194,484 44,018 Interest paid on lease liabilities (164,842) - Net Cash (Outflow) Inflow From Operating Activities (1,120,750) 1,110,190 CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant & equipment and intangible assets (2,092,379) (249,972) Proceeds from sale of property, plant & equipment 40,000 21,189 Net cash inflow (outflow) received from (paid to) related entities 146,859 (335,255) Net cash inflow attributable to government programs 11,935,404 11,769,136 Net Cash Inflow From Investing Activities 10,029,884 11,205,098 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds on transfer of cash and deposits from CSSS 3 1,169,248 - Proceeds on transfer of cash from CECNSW - 736,619 Proceeds on transfer of deposits from CECNSW - 28,205,683 Payments on behalf of CSSS by CSNSW (128,120) - Repayment of lease liabilities (608,179) - Net Cash Inflow From Financing Activities 432,949 28,942,302 Net Increase in cash and cash equivalents 9,342,083 41,257,590 Cash and cash equivalents at the beginning of the year 41,550,863 293,273 Cash and Cash Equivalents at the end of the year 4 50,892,946 41,550,863
ANNUAL REPORT 2019 44 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Catholic Schools NSW Limited (“CSNSW”) is do not include the financial effect of any funds a not for profit company limited by guarantee received or disbursed in trust under Government incorporated and domiciled in Australia. The grants except to the extent that CSNSW significant accounting policies adopted in the receives administration fees and retains interest preparation of CSNSW financial statements are earned (shown as operating revenue) for set out below. management of the grants, and the government grant received by CSNSW in relation to the (a) Basis of preparation Non-Government Reform Support Fund. These general purpose financial statements CSNSW depends on these administration fees have been prepared in accordance with from the Australian and NSW governments Australian Accounting Standards - Reduced for a significant volume of its revenue. During Disclosure Requirements, interpretations issued the 12 months ended 31 December 2019, by the Australian Accounting Standards Board approximately 67% (2018 - 76%) of CSNSW’s (AASB), and the Australian Charities and Not- revenue from operating activities was received for-profits Commission Act 2012 (“the ACNC from government programs. Act”). The financial statements are presented in The funds administered by CSNSW on behalf Australian currency. of the Australian and NSW governments are disclosed in note 16 to the financial report. Compliance with Australian Accounting Standards - Reduced Disclosure (c) Other Financial Assets Requirements Negotiable certificates of deposit and bank The financial statements of CSNSW comply accepted bills are stated at face value less with Australian Accounting Standards - unearned income. Income is brought to account Reduced Disclosure Requirements as issued on a daily accrual basis. by the AASB. Historical cost convention (d) Property, plant & equipment These financial statements have been Property, plant & equipment is stated at cost prepared under the historical cost less accumulated depreciation and impairment convention. losses. For leasehold improvements, cost includes an estimate of any costs to dismantle (b) Transactions as trustee and remove the asset at the end of the lease. CSNSW is the approved authority for funding for the NSW Catholic Schools system as well Depreciation is calculated on a straight-line as the Catholic Block Grant Authority and basis to write off the net cost of property, plant representative body for all New South Wales and equipment over its expected useful life to Catholic schools with the Australian and NSW CSNSW. Estimates of useful lives are made on a governments and their agencies. CSNSW regular basis for all assets. receives and distributes funds allocated under The depreciation rates are: government financed education programs with state-wide application, co-ordinates the Leasehold improvements 10% - 30% administration of these programs, and meets Office furniture & equipment 20% - 40% appropriate accountability requirements. Motor vehicles 12.5% These financial statements reflect that CSNSW Leasehold make-good asset 20% administers certain government funds in its capacity as Trustee. Other than disclosed at note 1(n)(v), the statement of comprehensive income and cash flows from operating activities
45 CATHOLIC SCHOOLS NSW (e) Software Capitalisation Right-of-use assets Developed software is stated at cost less At lease commencement date, CSNSW accumulated amortisation and impairment losses. recognises a right-of-use asset and a lease Expenditures in relation to the development of liability on the balance sheet. The right-of-use identifiable and unique software products used asset is measured at cost, which is made up of by CSNSW, and that will generate probable the initial measurement of the lease liability, any economic benefits exceeding costs beyond initial direct costs incurred by the organisation, one year, are recognised as intangible assets and any lease payments made in advance of and amortised over their estimated useful lives. the lease commencement date (net of any Capitalised costs include costs of software incentives received). CSNSW depreciates the development. Expenditures associated with right-of-use assets on a straight-line basis from maintaining computer software programs are the lease commencement date to the earlier recognised as an expense when incurred. of the end of the useful life of the right-of-use asset or the end of the lease term. CSNSW also IT development costs include only those costs assesses the right-of-use asset for impairment directly attributable to the development phase when such indicators exist. and where the entity has an intention and ability to use the asset. CSNSW has elected not to recognise a right- of-use asset and corresponding lease liability Amortisation of software applications is for short-term leases with terms of 12 months charged to expenses on a straight-line basis or less and leases of low-value assets. Lease over their estimated useful lives, from the date payments on these assets are expensed to they are available for use, that is, when it is in surplus or loss as incurred. the location and condition necessary for it to be capable of operating in the manner intended by Lease Liabilities management. At the commencement date, CSNSW measures The estimated useful life for software is 3 the lease liability at the present value of the years. Acquired computer software licenses are lease payments unpaid at that date, discounted expensed over the duration of the licences. using the interest rate implicit in the lease if that rate is readily available or CSNSW’s incremental (f) Impairment of assets borrowing rate. Lease payments included in the measurement of the lease liability are made The carrying amounts of CSNSW’s assets are up of fixed payments (including in substance reviewed at each balance date to determine fixed), variable payments based on an index or whether there is any indication of impairment. rate, amounts expected to be payable under a If any such indication exists, the assets’ residual value guarantee and payments arising recoverable amount is estimated. An impairment from options reasonably certain to be exercised. loss is recognised whenever the carrying Variable lease payments not dependent on an amount of an asset exceeds its recoverable index or a rate, are expensed as incurred and amount. Impairment losses are recognised in are not included within the right-of-use asset surplus or loss. and lease liability calculation. Subsequent to The recoverable amount of assets is the higher initial measurement, the liability will be reduced of an asset’s fair value less costs to sell and for payments made and increased for interest. its value in use. Value in use is taken to be the It is remeasured to reflect any reassessment depreciated replacement cost of the asset or modification, or if there are changes in in- concerned. substance fixed payments. When the lease liability is remeasured, the corresponding (g) Right-of-use assets and Lease liabilities adjustment is reflected in the right-of-use asset, CSNSW determines if an arrangement is a lease or surplus and loss if the right-of-use asset is at inception. For any new contracts entered into already reduced to zero. on or after 1 January 2019, CSNSW considers whether a contract is, or contains a lease. (h) Employee leave entitlements The amounts expected to be paid to employees
ANNUAL REPORT 2019 46 for their entitlement to annual leave and long (l) Income Tax service leave within the next twelve months are CSNSW has an endorsement as an income provided for at current pay rates and disclosed exempt charitable entity and as such incurs no as current liabilities. liability to pay income tax. A liability for long service leave is recognised as a non-current liability, and is measured as (m) Goods and services tax the present value of expected future payments Revenues, expenses and assets are recognised to be made in respect of services provided by net of the amount of goods and services tax employees up to balance date. In assessing (“GST”). Receivables and payables are stated expected future payments the CSNSW has with the amount of GST included. The net based the provision on remuneration rates amount of GST recoverable from, or payable current for all employees with one or more years to, the Australian Taxation Office (“ATO”) is of service. This method provides an estimate of included as a current asset or current liability in the liability that is not materially different from the Statement of Financial Position. Cash flows the estimate that would be made by using a are included in the statement of cash flows on a present value basis of measurement. Related gross basis. The GST component of cash flows on-costs have also been included in the liability. arising from investing and financing activities which are recoverable from, or payable to, the CSNSW has not made a provision for non- ATO are classified as operating cash flows. vesting sick leave as the Directors believe it is not probable that payment will be required. (n) Revenue recognition (i) Trade and other receivables Revenue from contracts with customers Trade receivables are initially recognised at fair Revenue is recognised at an amount that value, less any allowance for impairment. Trade reflects the consideration to which CSNSW receivables are generally due for settlement is expected to be entitled in exchange for within 30 days. Collectability of trade transferring goods or services to a customer. receivables is reviewed on an ongoing basis. For each contract with a customer, CSNSW: Debts which are known to be uncollectable are identifies the contract with a customer; written off by reducing the carrying amount identifies the performance obligations in directly. An allowance for impairment of trade the contract; determines the transaction receivables is raised when there is objective price which takes into account estimates of evidence that CSNSW will not be able to collect variable consideration and the time value all amounts due according to the original terms of money; allocates the transaction price to of the receivables. the separate performance obligations on the basis of the relative stand-alone selling (j) Inventories price of each distinct good or service to be delivered; and recognises revenue when or Inventories include finished goods held either as each performance obligation is satisfied for sale, or for consumption in the ordinary in a manner that depicts the transfer to the course of business operations. Inventories are customer of the goods or services promised. measured at the lower of cost and net realisable value using the weighted average cost basis. Variable consideration within the transaction Where inventories are acquired for no cost price, if any, reflects concessions provided to or nominal consideration, they are measured the customer such as discounts, rebates and at current replacement cost at the date of refunds, any potential bonuses receivable acquisition. from the customer and any other contingent events. Such estimates are determined (k) Cash and cash equivalents using either the ‘expected value’ or ‘most For purposes of the statement of cash flows, likely amount’ method. The measurement cash and cash equivalents include deposits of variable consideration is subject to a at call and bank term deposits which are constraining principle whereby revenue will readily convertible to cash and subject to an only be recognised to the extent that it is insignificant risk of changes in value. highly probable that a significant reversal
47 CATHOLIC SCHOOLS NSW in the amount of cumulative revenue Uniform sales and rebates recognised will not occur. The measurement Revenue from uniforms and rebates is constraint continues until the uncertainty recognised on transfer of the goods to a associated with the variable consideration third party. is subsequently resolved. Amounts received that are subject to the constraining principle Donations and sponsorship income are recognised as a refund liability. Donations and sponsorship income is recognised as revenue when received as Levies received these do not include enforceable rights Revenue is received from levies charged and obligations or ‘sufficiently specific’ to schools and other entities on an annual performance obligations that the Company basis. Levies charged cover the year to 31 must satisfy. December and are recognised throughout the year. (o) Trade and other payables These amounts represent liabilities for goods Administration costs recovered and services provided to CSNSW prior to the Administration costs are charged by end of the financial year. The amounts are CSNSW to the various programs that unsecured and are usually paid within 30 days CSNSW manages, and are recognised of recognition. uniformly throughout the year in which the administration services performed by (p) Leasehold make-good provision CSNSW have been rendered. Provisions for make good obligations are Interest received recognised when CSNSW has a present obligation (legal or constructive) as a result of Interest is recognised as it accrues on a daily a past event, it is probable that an outflow of basis. resources embodying economic benefits will be Government grants received required to settle the obligation and a reliable estimate can be made of the amount of the On occasions where CSNSW provides obligation. services in relation to government grants received, revenue generated for specific (q) programs is recognised only to the extent Critical accounting estimates of work completed on the programs, when The preparation of financial statements the grant is for a specific purpose and is in conformity with Australian Accounting enforceable (i.e. needs to be repaid if grant Standards requires the use of certain critical monies not spent in accordance with the accounting estimates. Significant assumptions grant agreement). have been used by CSNSW in determining an estimate for the provision for make-good If there is no specific purpose or the grant is for leased premises, and the expenditure of not enforceable, grant revenue is recognised the Non-Government Reform Support Fund on receipt. grant (“NGRSF grant”). In particular, CSNSW has estimated the cost attribution of its ATSI Conference income organisation divisions towards the achievement Registration fees and donations income of Commonwealth reform objectives that relate relating to the ATSI Conference is recognised to the NGRSF grant. in the year in which the conference is delivered. Other than the above and estimating useful lives for the purpose of calculating depreciation/ Sports affiliation fee amortisation of property, plant & equipment The sports affiliation fee is charged to and intangible assets, there are no other schools and other entities on an annual areas involving a high degree of judgement or basis. Sports affiliation fees cover the year to complexity, or other areas where assumptions 31 December. and estimates are significant to the financial statements.
ANNUAL REPORT 2019 48 (r) New and amended accounting standards There was no impact of AASB 15 compared with adopted the previous Accounting Standard AASB 118 The new Accounting Standards and Revenue on the current reporting period. Interpretations most relevant to CSNSW that became effective during the current reporting AASB 1058 Income of Not-for-Profit Entities period are as follows: AASB 1058 replaces AASB 1004 Contributions in respect to income recognition requirements AASB 15 Revenue from Contracts with for not-for-profit entities. The timing of income Customers recognition under AASB 1058 is dependent AASB 1058 Income for Not-for-Profit Entities upon whether the transaction gives rise to a liability or other performance obligation at the AASB 16 Leases time of receipt. Where a transaction occurs with a customer that doesn’t create enforceable Several other amending Accounting Standards rights and obligations, income is recognised at and Interpretations issued by the AASB apply the time of receipt. If the transaction occurred for the first time in the current reporting in a contract with a customer that created period. These other amending Accounting enforceable rights and obligations and the Standards and Interpretations did not result in contract does not include ‘sufficiently specific’ any adjustments to the amounts recognised performance obligations, income is recognised or disclosures in the financial statements. at the time of receipt. Income may also be Consequently, no further disclosures have been recognised where: an asset is received in a included. transaction, such as by way of grant, bequest or donation; there has either been no consideration AASB 15 Revenue from Contracts with transferred, or the consideration paid is Customers significantly less than the asset’s fair value; AASB 15 replaces AASB 118 Revenue and several and where the intention is to principally enable revenue related Interpretations. The standard CSNSW to further its objectives. provides a single comprehensive model for revenue recognition. The core principle of the For transfers of financial assets to CSNSW standard is that CSNSW shall recognise revenue which enable it to acquire or construct a to depict the transfer of promised goods or recognisable non-financial asset, CSNSW must services to customers at an amount that reflects recognise a liability amounting to the excess of the consideration to which CSNSW expects the fair value of the transfer received over any to be entitled in exchange for those goods related amounts recognised. Related amounts or services. The standard introduced a new recognised may relate to contributions by contract-based revenue recognition model with owners, AASB 15 revenue or contract liability a measurement approach that is based on an recognised, lease liabilities in accordance with allocation of the transaction price. Credit risk AASB 16, financial instruments in accordance is presented separately as an expense rather with AASB 9 Financial Instruments, or provisions than adjusted against revenue. Contracts with in accordance with AASB 137 Provisions, customers are presented in CSNSW’s statement Contingent Liabilities and Contingent Assets. of financial position as a contract liability, a The liability is brought to account as income contract asset, or a receivable, depending on over the period in which CSNSW satisfies its the relationship between CSNSW’s performance performance obligation. If the transaction does the customer’s payment. Customer acquisition not enable CSNSW to acquire or construct a costs and costs to fulfil a contract can, subject recognisable non-financial asset to be controlled to certain criteria, be capitalised as an asset and by CSNSW, then any excess of the initial amortised over the contract period. carrying amount of the recognised asset over the related amounts is recognised as income AASB 15 was adopted using the modified immediately. retrospective approach and, as such, comparatives have not been restated. There was AASB 1058 was adopted using the modified no impact on accumulated funds as at 1 January retrospective approach and as such 2019. comparatives have not been restated. There
49 CATHOLIC SCHOOLS NSW was no impact of AASB 1058 compared with borrowings during the year and therefore previous Accounting Standard AASB 1004 on determined the discount rate based on the current reporting period. observable market borrowing rates. CSNSW elected to measure the right-of-use AASB 16 Leases assets at an amount equal to the lease liability AASB 16 Leases replaces AASB 117 Leases adjusted for any prepaid or accrued lease . AASB 16 has been applied using the payments that existed at the date of adoption. modified retrospective approach and as such The following practical expedients permitted by comparative information has not been restated. AASB 16 were applied by CSNSW on adoption: The new accounting policies are disclosed in note 1(g). CSNSW accounted for operating leases The adoption of AASB 16 has resulted in CSNSW with a remaining lease term of less than 12 recognising right-of-use assets and related months as at 1 January 2019 as short-term lease liabilities in connection with all former leases; leases except for those identified as low-value CSNSW relied on previous assessments on or having a remaining lease term of less than whether leases are onerous as an alternative 12 months from the date of initial application. to performing an impairment review. There Operating lease expense is also no longer were no onerous contracts as at 1 January recognised for these operating leases and is 2019; and now replaced by interest and depreciation excluding initial direct costs for the expense in the statement of comprehensive measurement of the right-of-use asset at the income. For classification within the statement date of initial application. of cash flows, the interest portion is disclosed in operating activities as finance costs paid and CSNSW has also elected not to reassess the principal portion of the lease payments are whether a contract is, or contains, a lease at the separately disclosed in financing activities, as date of the date of initial application. Instead, repayment of lease liabilities. for contracts entered into before the transition On adoption, lease liabilities were measured date CSNSW has relied on its assessment at the present value of the remaining lease made applying AASB 117 and Interpretation 4 payments, discounted using CSNSW’s Determining whether an Arrangement contains incremental borrowing rate as at 1 January 2019. a Lease . The weighted average incremental borrowing The impact on the financial position of CSNSW rate that applied to the lease liabilities on at 1 January 2019 from the adoption of AASB 16 1 January 2019 was 5.69%. CSNSW had no is detailed below:
$ Right-of-use assets recognised under AASB 16 3,234,534 Lease liabilities recognised under AASB 16 - current 608,178 Lease liabilities recognised under AASB 16 - non-current 2,626,356
The impact in accumulated funds on 1 January 2019 was $nil as CSNSW has used the practical expedients permitted by the standard, as noted above.
ANNUAL REPORT 2019 50 The lease liabilities as at 1 January 2019 can be reconciled to the operating lease commitments as of 31 December 2018, as follows:
$ Operating lease commitments as at 31 December 2018 3,952,606 Add: CSSS printers operating lease amalgamated into CSNSW on 1 January 2019 68,806 Less: commitments relating to outgoings (353,954) Operating lease liabilities before discounting 3,667,458 Discounted using incremental borrowing rate as at 1 January 2019 (432,924) Total lease liabilities recognised under AASB 16 at 1 January 2019 3,234,534
(s) New accounting standards and interpretations Certain new accounting standards of the Australian Accounting Standards Board have been published that are not mandatory for 31 December 2019 reporting periods. CSNSW’s assessment of the impact of these new standards is that they will have no material impact on the future financial reports of CSNSW.
2. REVENUE
2019 2018 $ $ Levies received 3,354,491 2,556,180 Administration costs recovered 2,960,015 3,439,942 Government grant revenue 8,970,083 6,149,317 Interest received (see below) 436,845 372,664 ATSI Conference income 389,421 - Sports affiliation fee 833,987 - Uniform sales and rebates 525,325 - Grants, donations and sponsorships 120,027 - Related party service fee received - National Catholic Education Commission 55,813 37,500 Other revenue 138,671 6,518 Revenue from Continuing Operations 17,784,678 12,562,121
CSNSW received total interest of $2,362,030 (period ended 31/12/2018 - $2,646,940) of which $1,917,102 (period ended 31/12/2018 - $2,265,029) was applicable to funds held on behalf of government programs, $8,083 (period ended 31/12/18 - $9,247) related to funds held on behalf of the Council of Catholic School Parents and $436,845 (period ended 31/12/2018 - $372,664) was applicable to CSNSW's own funds.
51 CATHOLIC SCHOOLS NSW 3. OPERATING (DEFICIT) SURPLUS
2019 2018 $ $ The operating (deficit) surplus was determined after charging the following specific amounts: Expenses Amortisation of leasehold improvements, intangible assets and make- good asset 261,489 26,303 Depreciation of office furniture, equipment and motor vehicles 187,430 121,162 Depreciation of right-of-use assets 717,653 - Loss on disposal of fixed assets 21,768 10,751 Interest expense relating to lease liabilities 164,842 - Rental expense relating to operating leases Minimum lease payments 64,085 523,644 Other Income: Gain on transfer of assets from Catholic Schools Sports Services 1,093,611 - Gain on transfer of assets from CECNSW - 3,475,264
(a) Transfer of assets to Catholic Schools NSW Limited During the year ended 31 December 2019, Catholic Schools NSW Limited (“CSNSW”) amalgamated with Catholic Schools Sports Services (“CSSS”). On 19 March 2019, the implementation Deed (“the Deed”) was executed by the Board of CSNSW and CSSS (“the parties”). The Deed specifies that the parties have agreed to transfer all business, employees, contracts, assets and assumed liabilities, and the assignment of the property lease from CSSS to CSNSW on and from the Agreement date of 19 March 2019. The effective date of the transfer was 1 January 2019. Prior to and subsequent to 31 December 2018, CSNSW has paid $262,401 in professional services relating to the amalgamation, on behalf of CSSS. This has been offset against the gain on transfer of net assets from CSSS. On 1 January 2019 CSNSW recorded a gain of $1,093,611, being the transfer of the net assets of the CSSS to CSNSW at $nil consideration. The assets and liabilities transferred from the CSSS to CSNSW effective on 1 January 2019 were as follows:
ANNUAL REPORT 2019 52 2019 $ Cash and cash equivalents 494,188 Trade and other receivables 46,310 Other financial assets 675,060 Inventories 261,866 Intangibles 113,135 Trade and other payables (114,361) Employee entitlements (61,817) Net assets transferred 1,414,381 Costs of amalgamation with CSNSW (262,401) Employee entitlements - adjustment to CSSS 31 December 2018 closing balance (58,369) Net assets transferred from Catholic Schools Sports Services on 1 January 2019 1,093,611
4. CASH AND CASH EQUIVALENTS
2019 2018 $ $ Cash at bank and on hand 799,736 464,416 For the purposes of the Statement of cash flows, cash and cash equivalents are made up as follows: Cash at bank and on hand 799,736 464,416 Other financial assets (Note 7) 50,093,210 41,086,447 Cash and Cash Equivalents as per Statement of Cash Flows 50,892,946 41,550,863
5. TRADE AND OTHER RECEIVABLES
2019 2018 $ $ Funds advanced to: National Catholic Education Commission 254,100 242,536 Catholic Schools Sports Services - 192,652 Accounts receivable 119,203 88,459 Sundry debtors 23,030 177,441 Total Trade and Other Receivables 396,333 701,088
53 CATHOLIC SCHOOLS NSW 6. INVENTORIES
2019 2018 $ $ Inventories 167,228 -
7. OTHER FINANCIAL ASSETS
2019 2018 $ $ Unsecured Deposits at call 45,893,210 36,986,447 Term Deposits 4,200,000 4,100,000 Total Other Financial Assets 50,093,210 41,086,447
Of the $50,093,210 (2018 - $41,086,447) other financial assets, $46,987,382 (2018 - $35,051,978) is held on behalf of Government Programs, and $757,922 (2018 - $599,499) is held on behalf of the Council of Catholic School Parents.
8. OTHER ASSETS
2019 2018 $ $ Prepayments 761,775 495,734 Non-Government Reform Support Fund Grant receivable* 378,500 377,950 Other assets 42,190 65,727 Interest receivable 68,160 55,706 Total Other Assets 1,250,625 995,117
*This represents five percent of the annual Non-Government Reform Support Fund grant allocation of $7,559,000. This is in accordance with the Non-Government Reform Support Fund Guidelines 2018 (“the Guidelines”) made for the purposes of sections 31 and 36 of the Australian Education Regulation 2013 . The Guidelines state that sixty-five percent of the annual allocation for a non- government representative body will be paid in January on approval by the Minister of the work plan for that year. A thirty percent progress payment will be made in August each year, and the remainder will be paid once the annual report for the previous year has been approved by the Minister.
ANNUAL REPORT 2019 54 9. PROPERTY, PLANT & EQUIPMENT AND INTANGIBLE ASSETS
2019 2018 $ $ Leasehold improvements - at cost 1,115,572 59,458 Provision for amortisation 178,442 12,597 937,130 46,861 Leasehold make good asset 337,883 - Provision for amortisation 75,085 - 262,798 - Office furniture, equipment and motor vehicles - at cost 1,024,337 383,863 Provision for depreciation 288,610 119,256 735,727 264,607 Intangibles-Software - at cost 457,335 34,265 Provision for amortisation 34,265 13,706 423,070 20,559 Total Property, Plant & Equipment and Intangible Assets 2,358,725 332,027
55 CATHOLIC SCHOOLS NSW Reconciliations of the carrying amounts of property, plant and equipment and intangible assets at the beginning and end of the current and previous financial years are set out below.
Office furniture, Intangibles- Leasehold make Leasehold equipment and Total software good asset improvements motor vehicles $ $ $ $ $ Year ended 31 December 2019 Carrying amount at the beginning of year 20,559 264,607 - 46,861 332,027 Transfers from Catholic Schools Sports Services 113,135 - - - 113,135 Additions 309,935 726,329 337,883 1,056,114 2,430,261 Disposals - (67,778) - - (67,778) Depreciation/amortisation expense (20,559) (187,431) (75,085) (165,845) (448,920) Carrying amount at end of year 423,070 735,727 262,798 937,130 2,358,725
Year ended 31 December 2018 Carrying amount at the beginning of year - 21,682 - 5,760 27,442 Transfers from CECNSW 34,265 190,191 - 9,562 234,018 Additions - 205,836 - 44,136 249,972 Disposals - (31,940) - - (31,940) Depreciation/amortisation expense (13,706) (121,162) - (12,597) (147,465) Carrying amount at end of year 20,559 264,607 - 46,861 332,027 ANNUAL REPORT 2019 56 10. RIGHT-OF-USE ASSETS
2019 2018 $ $ Office leases - right-of-use asset 3,174,416 - Less: accumulated depreciation (705,426) - 2,468,990 - Printer - right-of-use asset 60,118 - Less: accumulated depreciation (12,227) - 47,891 - 2,516,881 -
11. TRADE AND OTHER PAYABLES
2019 2018 $ $ Funds held on behalf of Government Programs (Note 16) 46,987,382 35,051,978 GST payable 126,377 157,627 Accounts payable 1,370,429 678,751 Current account - Council of Catholic School Parents 757,922 599,499 Committed grant funding - Non-Government Reform Support Fund grant - 1,409,683 Other creditors and accruals 231,567 489,282 Total Trade and Other Payables 49,473,677 38,386,820
12. EMPLOYEE ENTITLEMENTS
2019 2018 $ $ Current Annual Leave 679,072 522,713 Long service leave 483,907 489,421 1,162,979 1,012,134 Non-Current Long service leave 445,466 272,106
57 CATHOLIC SCHOOLS NSW 13. LEASE LIABILITIES
2019 2018 $ $ Current Lease liabilities 667,835 - Non-Current Lease liabilities 1,958,520 -
AASB 16 was adopted using the modified retrospective approach and comparatives for lease liabilities have not been provided. Refer to Note 1.
14. ACCUMULATED FUNDS
2019 2018 $ $ Accumulated funds at the beginning of the year 3,908,035 318,025 (Deficit) surplus for the year (371,656) 3,590,010 Accumulated funds at the end of the year 3,536,379 3,908,035
15. COMMITMENTS FOR EXPENDITURE
(a) Lease Commitments Commitments for minimum lease contributions in relation to non-cancellable leases contracted for at the reporting date but not recognised as liabilities are payable as follows:
2019 2018 $ $ Within one year 77,904 827,449 Later than one year but not later than 5 years 208,123 3,125,157 Commitments not recognised as liabilities in the financial statements 286,027 3,952,606
(b) Capital Commitments As at 31 December 2018, CSNSW had capital commitments of $726,000 in relation to refurbishment works on level 9 and level 10 of CSNSW’s office premises at Polding Centre, 133 Liverpool Street, Sydney NSW 2000. There are no capital commitments as at 31 December 2019.
ANNUAL REPORT 2019 58 16. GOVERNMENT FUNDS ADMINISTERED
CSNSW as the Approved Authority and Representative Body receives and distributes school operating and targeted grants received from the Australian and NSW governments. CSNSW in its capacity as the NSW Catholic Block Grant Authority (CBGA) manages and distributes capital and other block grants. During 2019, the following grants were received and distributed through CSNSW, excluding GST:
2019 2018 $ $ Government program funds held (advanced) at the beginning of year 35,051,978 (95,222) Government program funds transferred from CECNSW to CSNSW on 1 January 2018 - 23,378,064 School grants received from government during the year 2,784,019,158 2,662,046,803 Interest & other income earned by programs 1,917,102 2,313,903 School grants disbursed to the NSW Catholic Schools system during the year (2,754,675,238) (2,638,515,588) School grants disbursed to NSW Congregational schools during the year (8,805,753) (3,189,161) Funds retained for program administration recognised in income (Note 2) (2,960,015) (3,439,942) Government grants used by CSNSW for program management (7,559,850) (6,149,317) Government grants retained by CSNSW for program management - (1,031,733) Net funds transferred by CBGA to CSNSW to pay GST - (265,829) Government program funds held at the end of the year (Note 11) 46,987,382 35,051,978
59 CATHOLIC SCHOOLS NSW 17. RELATED PARTY DISCLOSURES
Transactions with related parties
Director transactions Each non-executive director and chairman receives a fee for being a director of CSNSW. Total fees paid for the year ended 31 December 2019 were $359,225 (2018 - $320,540).
2019 2018 $ $ Compensation of key management personnel including directors Total compensation 2,414,447 2,148,070
CSNSW undertook a number of transactions with some other Church-related entities and these transactions are included in the CSNSW related party transactions register. The related parties are:
Catholic Church Insurances; Centacare Industries; AccessEAP; Broken Bay Institute - Taite; The Trustees of the Roman Catholic Church Catholic Schools Sports Services Ltd, for the Archdiocese of Sydney; activities of which from 1 January 2019 were The Council of Catholic School Parents subsumed within CSNSW; [NSW & ACT]; Catholic Communications; Professional Standards Resources Group of Catholic Secondary School Association; and NSW & ACT; Mary Mackillop Place. National Catholic Education Commission;
2019 2018 $ $ Total purchases from the above related parties during the year 2,193,186 1,264,682 Total revenue generated from the above related parties during the year 1,156,548 3,512,764 Total payments of Government grants to the NSW Catholic Schools system 2,754,675,238 2,638,515,588 Total payments of Government grants to NSW Congregational schools 8,805,753 3,189,161 The following balances are outstanding at the end of the reporting period in relation to transactions with related parties: Current payables 889,587 642,039 Current receivables 369,454 522,940
18. CONTINGENCIES
No contingent liabilities exist as at the date of this financial report.
ANNUAL REPORT 2019 60 19. SUBSEQUENT EVENTS
(a) Catholic Commission for Employment Relations The NSW Bishops in 2019 requested the Board of CSNSW to provide advice on the future structure and governance arrangements of the Catholic Commission for Employment Relations (“CCER”). CCER is a not-for-profit member-based unincorporated entity established for advising Catholic organisations in NSW and the ACT on employment relations and human resource issues. At their meeting on 31 October 2019, the Bishops considered the submissions received from CSNSW and CCER and resolved that CCER be transitioned from an unincorporated entity to that of an incorporated entity in the form of a subsidiary of CSNSW to be known as CER Limited. Assets and liabilities of CCER will be transferred to the newly incorporated entity.
(b) COVID-19 Outbreak Subsequent to the end of the financial year, the Coronavirus disease 2019 (“COVID-19”) outbreak was declared a pandemic by the World Health Organisation (“WHO”) on 11 March 2020. CSNSW has not seen a significant impact on its business to date. The outbreak and the response of Governments in dealing with the pandemic is interfering with general activity levels within the community, the economy and the operation of Catholic schools across New South Wales. The scale and duration of these developments remain uncertain as at the date of this report. However, they may have an impact on CSNSW’s earnings, cash flow and financial condition in the future. It is not possible to estimate the impact of the outbreak’s near and longer-term effects on Governments’ varying efforts to combat the outbreak and support businesses. This being the case, CSNSW does not consider it practicable to provide a quantitative or qualitative estimate of the potential impact of this outbreak on CSNSW at this time. The financial report has been prepared based on conditions existing at 31 December 2019 and considering those events occurring subsequent to that date, that provide evidence of conditions that existed at the end of the reporting period. As the outbreak of COVID-19 occurred after 31 December 2019, its impact is considered an event that is indicative of conditions that arose after the reporting period and accordingly, no adjustments have been made to the financial report as at 31 December 2019 for the impacts of COVID-19.
20. MEMBERS’ GUARANTEE
CSNSW is a public company limited by guarantee that is incorporated and domiciled in Australia. If CSNSW is wound up, its Constitution states that each member is required to contribute a maximum of $10 each towards meeting any outstanding obligations of CSNSW. At 31 December 2019 the number of members was 11 (2018:11).
61 CATHOLIC SCHOOLS NSW CATHOLIC SCHOOLS NSW LIMITED ACN 619 593 639
DECLARATION BY the Directors FOR THE YEARENDED 31 DECEMBER 2019
In theopinion of the Directors of Catholic Schools NSW Umited:
{a) the financialstatements and notes set out on pages 2 to 15 are in accordance with the Australian Charities and Not-for-profits Commission Act 2012, including:
(i) complying with Accounting Standards• Reduced Disclosure Requirements and the AustralianCharities and Not-for-profitsCommission Regulation2013; and
(ii) giving a true and fair view of the Company's financial position as at 31 December 2019 and of its performance for the financial year ended on that date; and
(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of the Board of Directors.
This declaration is signed in accordance with section 60.15 of the AustralianCharities and Not-for-profitsCommission Regulation 2013.
Stephen Sedgwick AO Julian Widdup Chairman Director
Sydney Dated this 10th day of June 2020 Auditor’s Independence Declaration to Catholic Schools NSW Limited
We declare that, to the best of our knowledge and belief, there have been no contraventions of any applicable code of professional conduct in relation to the audit of the financial report of Catholic Schools NSW Limited for the year ended 31 December 2019.
HLB Mann Judd Assurance (NSW) Pty Ltd Sydney, NSW Chartered Accountants 10 June 2020 Auditor’s Independence Declaration to Catholic Schools NSW Limited Independent Auditor’s Report to Members of Catholic Schools NSW Limited
We declare that, to the best of our knowledge and belief, there have been no contraventions of any applicable Opinion code of professional conduct in relation to the audit of the financial report of Catholic Schools NSW Limited for the year ended 31 December 2019. We have audited the financial report of Catholic Schools NSW Limited (“the Company”) which comprises the statement of financial position as at 31 December 2019, the statement of profit or loss and other 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 declaration.
In our opinion, the accompanying financial report of the Company has been prepared in accordance with Division 60 of the Australian Charities and Not-for-profits Commission Act 2012, including:
HLB Mann Judd Assurance (NSW) Pty Ltd Sydney, NSW (a) giving a true and fair view of the Company’s financial position as at 31 December 2019 and of its Chartered Accountants 10 June 2020 financial performance for the year then ended; and
(b) complying with Australian Accounting Standards – Reduced Disclosure Requirements 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 Company in accordance with the auditor independence 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 confirm that the independence declaration required by Division 60 of the Australian Charities and Not- for-profits Commission Act 2012, which has been given to directors, would be in the same terms if given as at the time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter – Current and Possible Effects and Uncertainties of COVID-19
We also draw attention to Note 19 to the financial report, which describes the current and possible effects and uncertainties on the Company arising from the on-going issues associated with COVID-19. Our opinion is not modified in respect of this matter.
Information Other than the Financial Report and Auditor’s Report Thereon
The directors are responsible for the other information. The other information comprises the information included in the Company’s annual report for the year ended 31 December 2019, but does not include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
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 in accordance with the Australian Accounting Standards – Reduced Disclosure Requirements and the Australian Charities and Not-for-profits Commission Act and for such internal control as management determines is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.
In preparing the financial report, management is responsible for assessing the Company’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 Company or to cease operations, or have no realistic alternative but to do so.
The directors are responsible for overseeing the Company’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 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 Company’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management. • Conclude on the appropriateness of the management’s 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 Company’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 Company 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 our audit. If, based on the work we have performed, we conclude that there is a material misstatement of this other We also provide the directors with a statement that we have complied with relevant ethical requirements information, we are required to report that fact. We have nothing to report in this regard. regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. 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 in accordance with the Australian Accounting Standards – Reduced Disclosure Requirements and the Australian Charities and Not-for-profits Commission Act and for such internal control as management determines is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. HLB Mann Judd Assurance (NSW) Pty Ltd A G Smith Chartered Accountants Director In preparing the financial report, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern Sydney, NSW basis of accounting unless management either intend to liquidate the Company or to cease operations, or 12 June 2020 have no realistic alternative but to do so.
The directors are responsible for overseeing the Company’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 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 Company’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management. • Conclude on the appropriateness of the management’s 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 Company’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 Company 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 our audit. Independent Auditor’s Statement
Our audit examination was made for the purpose of forming an opinion on the financial report set out on pages 2 to 15 inclusive (“the audited financial report”).
The supplementary information set out on pages 22 to 24 is presented for the purposes of additional analysis but does not form part of the audited financial report. The information presented is in accordance with the accounting records maintained by the Catholic Schools NSW Limited but amounts stated therein have not necessarily been verified as part of our audit examination.
HLB Mann Judd Assurance (NSW) Pty Ltd Sydney, NSW Chartered Accountants 12 June 2020 APPENDIX C: Independent Auditor’s Statement PROJECTS RECOMMENDED
Our audit examination was made for the purpose of forming an opinion on the financial report set out on pages 2 to 15 inclusive (“the audited financial report”). FOR THE CBGA FUNDING The supplementary information set out on pages 22 to 24 is presented for the purposes of additional analysis but does not form part of the audited financial report. The information presented is in accordance with the IN 2019 accounting records maintained by the Catholic Schools NSW Limited but amounts stated therein have not necessarily been verified as part of our audit examination.
HLB Mann Judd Assurance (NSW) Pty Ltd Sydney, NSW Chartered Accountants 12 June 2020
ANNUAL REPORT 2019 68 Local Cost Grant School Name Location Diocese Contribution
$m $m $m NEW PLACES Eileen O'Connor Catholic College Lewisham Syd 1.0 1.0 0.0 St Francis Catholic College Edmondson Wol 6.5 4.6 2.0 Park St Gabriel's School for Hearing Castle Hill Cong. 4.0 4.0 0.0 Impaired Children St Bede's Catholic College Chisholm M/N 10.0 7.0 3.0 Catherine McAuley Catholic College Medowie M/N 4.3 3.2 1.0 St Joseph's Catholic Primary School Rosebery Syd 3.5 2.4 1.0 Rosebank College Five Dock Cong. 2.1 1.5 0.6 St Patrick's Catholic College Sutherland Syd 7.8 5.4 2.3 St Justin's Catholic Primary School Oran Park Wol 1.0 0.7 0.3 John Paul College Coffs Harbour Lis 4.0 2.8 1.2 St Benedict's Catholic College Oran Park Wol 2.5 1.8 0.8 Holy Spirit College Bellambi Wol 1.8 1.3 0.5 St Joseph's Primary School Schofields Par 0.6 0.4 0.2 St Agnes' Catholic High School Rooty Hill Par 0.6 0.4 0.2 TOTAL NEW PLACES 14 49.6 36.5 13.1
69 CATHOLIC SCHOOLS NSW Local Cost Grant School Name Location Diocese Contribution $m $m $m EXISTING PLACES St Edmund's School Wahroonga Cong. 4.7 4.7 0.0 St Scholasticas College Glebe Point Cong. 6.3 4.4 1.9 St James' Catholic Primary School Kotara South M/N 2.6 1.8 0.8 Regina Coeli Catholic Primary School Beverly Hills Syd 4.2 2.9 1.2 St Mary and St Joseph Catholic Maroubra Syd 4.3 3.0 1.3 Primary School Champagnat Catholic College Maroubra Syd 2.3 1.6 0.7 Pagewood Magdalene Catholic High School Narellan Wol 2.1 1.4 0.6 St Therese's Catholic Primary School West Wol 1.7 1.2 0.5 Wollongong St Joseph's Primary School Jerilderie Wag 0.3 0.3 0.0 Our Lady Queen of Peace Primary Greystanes Par 2.5 1.7 0.7 School St Patrick's Primary School Holbrook Wag 0.2 0.2 0.1 St John’s College Woodlawn Lismore Lis 0.2 0.2 0.1 St Brigid's Primary School Coonamble Bath 1.8 1.5 0.3 St Pius X Primary School Dubbo West Bath 1.5 1.1 0.5 St Michael’s Catholic Primary School Meadowbank Syd 2.1 1.5 0.6 McAuley Catholic Central School Tumut C/G 1.4 1.3 0.1 St Laurence's Primary School Forbes W/F 0.8 0.8 0.0 St Francis of Assisi Primary School Glendenning Par 3.8 2.7 1.1 Trinity Catholic College Auburn Syd 5.1 3.6 1.5 St Agnes' Catholic Primary School Matraville Syd 3.2 2.2 1.0 Marian Catholic College Griffith Wag 4.1 3.4 0.7 St Francis Xavier Catholic Primary Arncliffe Syd 1.7 1.2 0.5 School Xavier High School Albury Wag 3.7 2.6 1.1 St Pauls’ Catholic College West Lis 2.8 2.8 0.0 Kempsey St Dominic’s College Kingswood Cong. 1.0 0.7 0.3
TOTAL EXISTING PLACES 25 64.4 48.7 15.8
GRAND TOTAL 39 114.1 85.2 28.9
Catholic Schools NSW Ltd ABN: 46 619 593 369 Level 9, 133 Liverpool Street Sydney NSW 2000 02 9287 1555 PO Box 20768 World Square NSW 2002 www.csnsw.catholic.edu.au