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	Catholic Diocese Lost $1 Million Deficit Blamed on Investment Problems By Bronislaus B. Kush Telegram & Gazette January 16, 2010 http://www.telegram.com/article/20100116/NEWS/1160358/1101/raw_headlines WORCESTER — The Diocese of Worcester experienced unrealized losses in its master investment portfolio totaling $1,056,759 — generating an operating loss of $1,091,127 last fiscal year, an annual audit of the local Roman Catholic diocese shows. However, despite the struggling economy, the diocese's departments and agencies, for the most part, were able to operate with balanced budgets last fiscal year. Chancery officials stressed that many of the reported department deficits were attributed to those unrealized losses and not on deficit spending. For example, the Central Administration budget reported $655,150 in expenses over revenue, after taking into account an unrealized investment loss of $682,244. The diocese yesterday released a review of its financial operation and chancery officials said they were generally pleased with the results, given Wall Street's shaky financial footing. "Overall, the report was pretty good," said Raymond L. Delisle, vice chancellor of operations. "Everybody continues to have problems with their investments. The diocese is no different." Officials expressed optimism about the future because of "considerable gains" shown over the last two quarters of the fiscal year. The report card on the local diocese's financial health was presented in an overall report of diocesan operations, including ministries, over the past year. The audit, as in years past, was compiled by O'Connor, Maloney & Co., P.C. of Worcester and covers the period from Sept. 1, 2008, to Aug. 31, 2009. Unlike a corporation or a municipality, the diocese does not present its financial findings in traditional budgetary format. Rather, it breaks down the numbers of specific departments and agencies. Most broke even, thanks to generous contributions from the Partners in Charity annual fundraising campaign. For example, the expenditures of the St. John Cemetery System, which oversees diocesan graveyards, exceeded revenue by $29,793. That deficit was wiped out by moving funds from Partners in Charity. Partners generates money for 27 educational, health, social service, ministerial and other programs offered by the diocese. Last year, $4,822,180 was raised, the second highest amount ever. Officials said the decision to merge or close parishes also helped the diocese to better conserve its resources. They added, however, that some department budgets remain problematic. For example, officials said "one significant (financial) challenge" is the account that funds the retirement of priests. That account received the largest subsidy from Partners in Charity, an allocation of $920,000. Overall, retirement programs for clergy were underfunded by $1,368,126. Chancery officials said the situation is expected to worsen, as more and more aging priests retire. In a statement accompanying the report, Bishop Robert J. McManus said he was grateful for the generosity of benefactors and local Catholics. He said the diocesan Finance Office conducted special meetings last October to discuss the fiscal "challenges" that the local church is facing. He also asked all pastors to meet regularly with their own parish finance councils and to keep parishioners informed about parish financial matters. "I am confident that the Lord will always provide for us," he said. "I look to your continued good will and support as we join our efforts to provide for all of God's people in our diocese and beyond." Contact: bkush@telegram.com
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