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	Annual Report Details Budgets By By William T. Clew Catholic Free Press January 15, 2010 http://www.catholicfreepress.org/_Pages/_This%20Week/0115annual.html WORCESTER (MA) -- The 2009 diocesan Annual Report issued this week shows that, "for the most part, our diocesan departments and agencies were able to operate with balanced budgets last year," Bishop McManus said in a letter accompanying the report. Bishop McManus also noted in his letter that despite significant economic challenges the Partners in Charity Appeal raised the second highest amount; $4,822,180. "This would not have been possible without the extraordinary generosity of our priests and people," he said. The report details the disbursement of Partners money that was collected in the campaign that ended in August 2008 and was used to help support 27 diocesan charitable, educational and ministerial organizations. The gifts and pledges of $4,893,101, toped its $4.8 million goal with the highest amount ever raised. However, the annual report shows, $208,491 in pledges remained uncollected, leaving $4,684,610 available for use. Expenses exceeded revenue by $2,831, it was reported. In the previous year gifts and pledges totaled $4,801,840 and $186,140 went uncollected, leaving $4,615,700 in available funds. Many of the deficits reported were attributed to unrealized losses on investments, not deficit spending in operational budgets, the bishop said. Unrealized losses on investments sometimes are called paper losses because, though the value of the investment has dropped, there is no actual loss of funds unless the investment is sold. An unrealized loss in investment of $682,244 was the major item in a reported $665,150 deficit for the diocese's Central Administration in the 2009 fiscal year, according to Bishop McManus. That was one of the items in the diocesan annual report for the last fiscal year that ended Aug. 31. Without that paper loss Central Administration would have finished with revenues of $3,702,266 and expenses of $3,582,098, or $120,568 in the black. In the 2008 fiscal year Central Administration showed a deficit of $553,534 which included an unrealized investment loss of $658,841. The largest subsidy from Partners in Charity Appeal disbursed in 2009, $920,000, went to the Priest Retirement Fund. Income came to $1,881,415. That included the Partners in Charity subsidy, $805,733 in parish assessments, $82,063 in investment income and $73,619 in donations. Expenses included $2,097,567 in support for retired priests and $528,998 for nursing home/assisted living costs. There also was an unrealized loss on investment of $622,976. Total expenditures came to $2,626,565. "Our retirement programs for clergy were underfunded last year by $1,368,126," the bishop reported. In fiscal 2008, the Priest Retirement Fund received $921,785 in a Partners in Charity subsidy, $817,150 in parish assessments, $662,167 in investment income and $107,279 in donations, which brought income to $2,508,381. Expenses in fiscal 2008 included $2,102,294 in support for retired priests and $447,869 for nursing home/assisted living costs. The retirement fund gained $140,491 on a property sale and had an unrealized loss on investment of $399,975. The programs were underfunded by $301,266. Other major subsidy amounts from the Partners in Charity Appeal in fiscal 2009 included $421,269 for the education of seminarians, $326,491 for vocations and the House of Studies, $400,000 to Catholic Charities and $350,000 for grants-in-aid for Catholic school students. Central Catholic Schools had revenue of $15,176,902 and expenses of $15,200,298, for a deficit of $23,396, the bishop reported. The Central Catholic schools are Holy Name Junior/Senior High School, St. Peter-Marian Junior/Senior High School and St. Peter Elementary School, all in Worcester, and St. Bernard High School in Fitchburg. Other income for the schools, including a Partners in Charity subsidy, donations and grants for the wind turbine at Holy Name and a plant fund loan forgiveness, minus expenses including depreciation, interest on loan and bond interest and the deficit gave the schools a net change in assets of $360,937. In fiscal 2008, school revenues totaled $15,378,245 and expenses came to $15,472,274. Operational losses totaled $94,029. The schools had a net change in assets of $256,591. The St. John Cemetery System had revenue of $1,420,736 and expenses of $1,450,529. The deficit of $29,793 was offset by a Partners in Charity subsidy of the same amount. In fiscal 2008 the cemetery system had revenue of $1,302,541 and expenses of $1,472,913. The deficit of $170,372 was offset by a Partners subsidy of the same amount. The Diocesan Expansion Fund (diocesan bank) had income of $3,831,412 and expenses of $3,353,528, for a gain of $477,884. Added to that amount is $248,461 in unrealized gain on investments, putting the expansion fund $726,345 in the black. That is $298,391 more than in fiscal 2008, when revenue came to $3,705,377, expenses were $3,148,687 and there was an unrealized loss on investment of $128,736. The Catholic Free Press had revenues of $598,328 and expenditures of $677,217, ending the fiscal year with a deficit of $78,889. The deficit was $54,739 in fiscal 2008. Last year some of the deficit was offset by a $50,000 subsidy from Central Administration. That subsidy was discontinued in fiscal 2009. The annual report was audited by O'Connor, Maloney & Co., P.C. of Worcester. It is to be distributed in parishes this weekend, along with its associated Financial Reports on Operating Activities. A complete list of all revenues and expenditures by agency or ministry for fiscal 2009 is available on line at www.worcesterdiocese.org. The on-line report includes links to supplemental reports. A copy of the auditor's report also is available online. The document was prepared internally for publication by the diocesan Office of Communications. Those with questions about the audited financial statement may call Carol Adams, manager of accounting, at 508-929-4340 or by email to cadams@worcesterdiocese.org
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