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	Diocese of Worcester Releases Annual Report for Fy2008 Roman Catholic Diocese of Worcester January 31, 2009 http://198.87.234.92/FY2008AnnualReport/2008PressRelease/tabid/779/Default.aspx [annual report for FY2008] [consolidated financial statement] [supplemental reports by agency, ministry or department] Unrealized losses from investments hurt bottom line JANUARY 29, 2009, WORCESTER, MA -- Following a complete audit of its financial accounting, the Diocese of Worcester this weekend will issue an online and printed edition of the annual report detailing activities for the fiscal year ending August 31, 2008. Most Rev. Robert J. McManus, S.T.D., Bishop of Worcester, noted in his letter that despite the overall numbers, the report contained many hopeful signs. “The Annual Partners in Charity Appeal raised $4,893,100, the highest amount ever, for the 2009 fiscal year. . . Many of our parishes have seen increases in Mass attendance and in donations as well.” Bishop McManus wrote that the diversified portfolio of the DEF is a great help during these tough economic times. He also noted that central administration has taken steps to diminish its debt service to the DEF in order to reduce the impact of interest on indebtedness in its operating budget. Additionally, many of the reported deficits were attributed to unrealized losses on investments, not deficit spending in operational budgets. This was also the first year that depreciation was applied. The Annual Report with its associated Financial Reports on Operating Activities is being distributed as a supplement in this weekend’s parish bulletinsand is posted online at www.worcesterdiocese.org. A complete copy of the auditor’s report is also available online. This year's report was audited, as in recent years, by O’Connor, Maloney & Co., P.C. of Worcester. As noted in the introductory letter by Bishop Robert J. McManus, the annual report recognizes that “informed parishioners are our greatest asset in resolving the long-term financial issues that our parishes and diocese face.” The Financial report is part of an Annual Report which discusses the scope of the ministries in which the Diocese is involved to give a better sense of the relationship between the parishes and the diocese. Bishop McManus noted that he is assisted by a Diocesan Finance Council, and that the diocesan Finance Office “continues to work closely with our pastors, insisting on their collaborating with parish finance councils to thoroughly disclose parish finances to the diocese as well as to their parishioners.” Partners in Charity revenue appearing in the report was raised in the 2007 campaign and was disbursed to 30 agencies, ministries and programs. They include Catholic Charities, Grant-in-Aid for Catholic School Students, Vocations recruitment and seminarian studies, as well as priests’ retirement fund. Central Administration saw expenses exceed revenue by $553,534 following unrealized investment losses of $658,841 and depreciation expense of $135,565. It is funded in large part by the cathedraticum (contributions by parishes based on their offertory collection) and includes the operational budgets or subsidies for the following: Bishop’s Office, Chancellor’s Office, Tribunal, Office of Fiscal Affairs, Vicar for Religious, Building Commission, Communications Office, Women’s Commission, and the Office for Healing and Prevention. With the influx of a subsidy from Partners in Charity, the St. John Cemetery System showed a balanced report at $1,472,913. Priests’ Retirement operated at a loss of $301,266 due to unrealized losses on investments. Central Catholic Schools operations totaled $15,472,274 resulting in a $94,029 loss prior to accounting for subsidies, depreciation and non-operational funding and loans. Central Catholic Schools include the financial activity of the three Central Catholic High Schools (Holy Name, St. Bernard and St. Peter-Marian) and St. Peter Central Catholic Elementary School. There were 2,278 students in those four schools during the school year ending in June 2008. The Catholic Free Press operated with a loss of $54,739 as compared to a $14,491 loss the previous year, after accounting for interest expenses on unpaid receivables. The Diocesan Expansion Fund (DEF) operated with a surplus of $427,954 on $3,705,377 in revenue, as compared to a surplus of $261,833 on $3,821,798 in revenue the previous year. A complete list of all revenues and expenditures by agency or ministry is available online at www.worcesterdiocese.org and in the printed Annual Report supplement in parish bulletins. The online report includes hyperlinks to supplemental reports. The document was prepared internally for publication by the Office of Communications. Any questions about the financial statement can be directed to Carol Adams, Manager of Accounting at 508-929-4340 or by email to cadams@worcesterdiocese.org.
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