MASSACHUSETTS
Roman Catholic Diocese of Worcester
January 21, 2016
Unrealized losses account for significant deficit
January 21, 2016, 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, 2015.
In his letter, Most Reverend Robert J. McManus, S.T.D., Bishop of Worcester, wrote that the Diocese was challenged on a number of fronts, including $840,001 in unrealized losses on investments. The Bishop referred to the unrealized losses as “primarily a reflection of the state of the market when our year ended on August 31.” The Statements of Activities showed an operating deficit of $1,192,704 after expenses totaling $25,178,740 for 2015 compared to a surplus of $1,276,057 the previous year, primarily from unrealized gains, on expenses totaling $25,271,377.
Bishop McManus wrote that even with a subsidy of $800,000 from Partners in Charity, Priests’ Retirement Care operated at expenses over revenues by $1,230,247, up from the previous year’s difference of $993,535. He expressed his gratitude to the committee that coordinated the Second Annual Celebrate Priesthood event held in the fall of 2015 which raised $150,000 for the current fiscal year. He also noted that the Diocese has established an ad-hoc committee “which is developing innovative ways to reduce costs while providing quality care for those retired priests who dedicated their lives to showing the face of God’s mercy through their priestly ministry.” The total expenses incurred for retired priests care were 4% 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 $976,315 in interest. He noted the increasing number of parishes which are reporting operational deficits in their annual reports and announced that “the Diocesan Finance Committee is exploring alternatives in order to remedy this unsustainable situation.”
The Diocesan Expansion Fund, which is “essentially a savings and loan for the parishes and the diocese,” ended the year on a positive note at $1,618 after unrealized losses on investments of $541,820.
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