BishopAccountability.org
	Boston Archdiocese Audit Shows $46m in Red By Denise Lavoie The Associated Press, carried in San Francisco Chronicle [Boston MA] April 19, 2006 http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2006/04/19/ national/a111724D83.DTL&hw=catholic&sn=001&sc=1000 The scandal-battered Boston Archdiocese released a two-year audit Wednesday that showed it running a $46.3-million deficit. Cardinal Sean O'Malley warned the shortfall is threatening Roman Catholic work in the community. The audit, which covered the 2004 and 2005 fiscal years, also shows assets of nearly $330 million, but most of the money is restricted or earmarked for specific purposes. "When we look at the decrease in revenue over previous years, we see clearly that our programs and ministries are at risk," O'Malley wrote in a letter to parishioners that accompanied the audit. "It is also clear that the revenue numbers reflect the painful experience of our recent past, the anger over the sexual abuse crisis and the closing of parishes," O'Malley wrote. "These numbers are one response of a wounded community, an expression of deep hurt and a measure of our need to remain focused on the long process of healing that lies ahead." A molestation case in Boston four years ago sparked an international crisis over sex abuse by Catholic clergy, resulting in $150 million in lawsuit settlements and other related costs for the local archdiocese alone. O'Malley sought to reassure parishioners that their donations and the money from church closings were not being used to defray abuse-related costs. The cardinal stressed those funds came from a variety of sources, such as property sales, insurance coverage and specific donations to fund therapy for survivors. Critics had demanded more information about the archdiocese's finances after a massive settlement in 2003 to close claims from more than 550 people who were sexually abused by priests. The following year, as O'Malley began a massive restructuring to close more than 80 churches, angry parishioners again called for an accounting of how their donations were being spent. Annual appeal donations that totaled $15.5 million in 2001 dropped to $11.6 million in 2005, according to the audit. In his letter, O'Malley also said Mass attendance has dropped in recent decades, as have the number of priests and students at Catholic school. He said the trends must be reversed to create new Catholic leaders in the church and society at large. "While our revenue is inadequate to fund our ministries, cultural and demographic trends show that those ministries have never been more needed," he said. The release of the 1,000 pages of information completes a promise O'Malley made for better financial disclosure last fall, when the state Legislature was debating a bill that would have required all religious organizations to file annual financial reports with the state. The bill was defeated in the House in January.
Any original material on these pages is copyright © BishopAccountability.org 2004. Reproduce freely with attribution.