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	Audit Shows Slight Surplus for Diocese Bishop Concerned about Parishes' Debts By Bronislaus B. Kush Telegram & Gazette January 21, 2008 http://www.telegram.com/article/20080121/NEWS/801210584/1008/NEWS02 WORCESTER— The Diocese of Worcester showed a slight surplus on its financial ledger last fiscal year, despite a whopping $5.2 million owed to it by more than half of its member parishes. An audit released by church officials last week showed the diocese with $34,372,749 in unrestricted revenues and $33,056,453 in unrestricted expenses — resulting in an operating surplus of 4 percent. The audit was compiled by O'Connor, Maloney & Co. P.C. of Worcester and examines the fiscal year that ended Aug. 31. The report was good news to diocesan officials, who have been wrangling with a number of financial challenges over the past decade. For example, the diocese faced a financial crisis in 2003, when officials had to deal with a deficit of nearly $794,000. Since then, officials have made significant strides in balancing the budget. For the fiscal year that ended in the summer of 2006, diocesan expenses exceeded income by only 0.2 percent, or $75,993. "We're not in the business to break even, because of all the services and outreach that we try to provide to the community," said Raymond L. Delisle, diocesan spokesman. "So, this is really good news." In a statement, Bishop Robert J. McManus noted the financial picture was made much brighter last year by an unrealized gain of $594,163 in investments. Most of that money was used to reduce a longstanding mortgage on Holy Name and St. Peter-Marian high schools. Bishop McManus said he was still concerned about the outstanding debts to the diocese owed by 86 parishes for centralized purchases of services such as property and liability insurance and medical insurance for lay staff. Officials said that diocesan funds that ordinarily would have been used to expand ministries were used instead to service the debts of the parishes. "To be a viable and effective pastoral presence, a parish must be able to meet its financial obligations," the bishop wrote. Mr. Delisle said the bishop has made it a point over the past couple of years of making area Catholics more aware of the finances of their parishes. He said that church law calls for finance councils to assist pastors with the management of local churches. Church officials said they were pleased with turnarounds in a number of budget accounts. For example, The Catholic Free Press, the diocesan newspaper, operated with a loss of $14,491, compared to a $45,643 loss the previous fiscal year. Also, the Diocesan Expansion Fund operated with a surplus of $261,833, compared to a loss of $99,982 the previous year. Contact: bkush@telegram.com
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