Unrealized gains account for surplus for the year

Roman Catholic Diocese of Worcester
January 15, 2015

http://worcesterdiocese.org/communications/FinancialReportsforFY2014/tabid/1767/Default.aspx

January 15, 2015, WORCESTER, MA -- Following a complete audit of its financial accounting, the Diocese of Worcester has issued online Financial Statements and online and printed editions of the Annual Report on Financial Activities for the fiscal year ending August 31, 2014.

In his letter, the Most Reverend Robert J. McManus, S.T.D., Bishop of Worcester, wrote that the reports continue to demonstrate good stewardship of donations received throughout the year. The Combined Statements of Activities showed an operating surplus of $1,276,057 after expenses totaling $25,271,377 for 2014 compared to a surplus of $122,418 the previous year on expenses totaling $24,750,617.

Bishop McManus wrote that even with a subsidy of $550,000 from Partners in Charity, retirement programs for clergy operated at expenses over revenues by $993,535, up from the previous year’s difference of $715,325. He expressed his gratitude “to the committee that came together last year to begin the task of raising awareness of this critical need in our diocese” including the Celebrate Priesthood event held in the fall of 2014 which will benefit the 2015 fiscal year. The total expenses incurred for retired priests care were 3.6% higher than the previous year.
The other area which he noted as a challenge is the need to service outstanding debt, which cost Central Administration $995,956. He thanked the parish and diocesan staff and volunteers who participated in workshops on parish finances this past year and noted that dedicated assistance to help parishes with their goal of balanced budgets will begin in 2015.

The Diocesan Expansion Fund, which provides “a safe and secure resource for parish and diocesan savings while providing for the borrowing needs of our parishes,” ended the year on a positive note at $1,782,652 including unrealized gains of $839,486. This gain contributed significantly to the overall 1,276,057 increase in unrestricted net assets reported on the combined statement of activities.

Partners in Charity revenue appearing in the report was raised in the 2013 campaign and was disbursed to 28 agencies, ministries, and programs. They included Catholic Charities, Grant-in-Aid for Catholic School Students, Haitian Apostolate Ministry, Seminarian Education, and Religious Education. In his letter Bishop McManus noted that the 2014 appeal raised $5,000,000 including “a contribution from a $1.6 million bequest which will endow this appeal for the future.” In his letter, Bishop McManus expressed his gratitude to over 19,226 donors to this appeal in our diocese “including 1,055 new donors and the 108 members of the St. Paul Society who donated a minimum of $5,000 each.”

The St. John Cemetery System showed a balanced report due in part to a subsidy of $148,852 from Partners in Charity, up from $119,098 in the previous year. Recognizing a trend of cremation over internment, Bishop McManus noted that a marketing consultant is being contracted in 2015 to assist the cemetery system. The Catholic Free Press operated with a loss of $124,451, compared to a loss of $119,147 the previous year.

Central Catholic Schools’ operating expenses totaled $11,924,700 resulting in expenses over revenues of $83,717 prior to accounting for depreciation and non-operational funding. Central Catholic (C.C.) Schools include the financial activity of the Holy Name C.C. Jr./Sr. High School, St. Bernard C.C. High School, and St. Peter-Marian C.C. Jr./Sr. High School, as well as St. Peter C.C. Elementary School. There were 1,623 students in Pre-K through grade 12 in those four schools during the school year ending June 2014.

The complete text of the Bishop’s management letter accompanies the Annual Report on Financial Activities for FY2014 prepared by the diocesan Office of Fiscal Affairs. The Annual Report on Financial Activities is being distributed as a supplement to parishes for distribution on the weekend of January 17 and 18 and is posted online at www.worcesterdiocese.org. A complete copy of the audited Financial Report is also available online at worcesterdiocese.org. As in recent years, this year’s report was audited by O’Connor, Maloney & Co., P.C. of Worcester.

Any questions about the reports can be directed to Carol Adams, director of Fiscal Affairs at 508-929-4340508-929-4340 or by email to cadams@worcesterdiocese.org.