Nearly Doubled Its Cash on Hand Orange Diocese Seems on Road to Financial Recovery Following 2005 Clergy Sexual Abuse Settlement, Newspaper Reports, California Catholic Daily, December 11, 2008

" Nearly Doubled Its Cash on Hand"
Orange Diocese Seems on Road to Financial Recovery Following 2005 Clergy Sexual Abuse Settlement, Newspaper Reports

California Catholic Daily
December 11, 2008

http://www.calcatholic.com/news/newsArticle.aspx?id=c86709f9-9695-4504-b442-760548c97d1f

The Diocese of Orange is apparently recovering well from the financial hit it took when it paid its share of a $100 million settlement to victims of clergy sexual abuse in 2005, the Orange County Register reports.

Half of the settlement money came from diocesan coffers, while the other half was paid by the diocese. "Backed into similar financial corners, other dioceses declared bankruptcy or sold church property to fulfill their obligations," the Register story said. The Orange diocese, facing a $50 million debt, laid off about a dozen workers and said at the time it could be forced to sell off some diocesan property.

Instead, said the Register, "The Diocese took out a loan -- and less than one year later, paid off the entire $50 million. How? By liquidating part of its $200 million investment portfolio and dipping into profits from its cemetery and other businesses." The diocese owns Ascension Cemetery and Mausoleum in Lake Forest, Holy Sepulcher Cemetery in Orange and Good Shepherd Cemetery and Mausoleum in Huntington Beach.

As a result, fiscal year 2005-2006 was what Bishop Tod Brown termed "a turnaround year," said the newspaper – a turnaround that has continued today as the diocese seems to be making steady progress toward financially recovering from the settlement.

"The Diocese's audited financial statements for the fiscal year ending June 30, 2007 show that: Its assets climbed nearly 17 percent between 2006 and 2007 -- to $291 million from $248.6 million," the Register reported. "It nearly doubled its cash on hand, to $23.3 million from $12.3 million. Long-term investments grew about 14 percent, to $209.9 million from $184.4 million. The checking accounts for its parishes and schools grew more than 10 percent, to $136.5 million from $123.6 million."

The newspaper congratulated the diocese for opening its books to the public: "What is it they say about confession being good for the soul? Perhaps it's good for the bank account as well… Churches are not required to disclose their finances. We commend the Diocese for this startling bit of financial transparency."