PHILADELPHIA (PA)
CatholicPhilly
BY MATTHEW GAMBINO
Archbishop Charles Chaput in his column last week on CatholicPhilly.com called the Archdiocese of Philadelphia’s new financial report “very serious – and that’s an understatement.”
True to his word, a 37-page report released today shows an operating deficit of $39.1 million for the fiscal year spanning July 1, 2011 to June 30, 2012.
An accompanying supplemental document to the report, audited by the firm Grant Thornton, put the deficit in the context of new accounting procedures and one-time expenses and revenues during the period.
Those “non-recurring” items included revenues of $15.8 million from the sale of Cardinal Dougherty and Northeast Catholic high schools (closed in 2010) and expenses totaling $21.2 million. Considering those one-time adjustments, the “core” operating deficit for the year was $17.4 million.
Notable components of those expenses were a $13 million increase in the self-insurance reserve needed to pay insurance claims against the Archdiocese in areas such as workman’s compensation, liability and automobile insurance; and legal and professional fees of $11.9 million.
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