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Diocesan Financial Statements Explained

(Editor’s note: For the 2009-2010 fiscal year, comparative statements were not available because in past years the funds were reported in the aggregate. The graphic is linked to a PDF showing those categories and figures. Click on the graphic and it will take you to a larger image of the statements.)

For the fiscal year ended June 30, 2010, the primary financial initiative focused on accountability and improved operational controls. Accordingly, performance tracking was enhanced by segregating operations by functionality. The major components of the diocese’s general operations were isolated into separate not-for-profit corporations.

Prior to the fiscal year ended June 30, 2010, the majority of these activities were consolidated within the diocesan Administrative Offices. The Financial statements presented here reflect this change in format. Because this new format existed only for the 2009-2010 fiscal year, comparisons to prior year results of operations
are not available.
The financial results of operations for the Administrative Offices consist of the administrative, operational and day-to-day activities of the diocese. Included within the operating results are departmental costs such as Human Resources, Accounting and Finance, Property Management, Clerical and Administrative support and Information Technology. Responsibilities falling within the Administrative Offices also include the coordination of diocesan risk management, legal services and energy management.

The Catholic Service & Ministry Appeal (CSMA) Fund reflects the status and activity of the
annual appeal. Under the direction of the independent CSMA committee, funds are solicited throughout the diocese during the year and distributed to charitable agencies and schools on the basis of need. The committee consists of volunteer lay and religious individuals and diocesan priests who serve a three- (3) year term.

The Parish and Agency Resource Fund, formerly the Deposit and Loan Fund, was established to maximize the financial resources and needs of the agencies and parishes within the diocese. Acting as a conduit, the fund provides parishes and agencies with an alternative for short-term investing while also providing parishes with a ready source of financing for short and intermediate term projects. Both the returns offered to depositors and the borrowing rates charged on loans are superior to the current rates offered by outside financial institutions.
The large decrease in Unrestricted Net Assets reported in the current fiscal year was due entirely to the write-off of assets associated with the sale of the Meredith Memorial Home.
Due to the continuing drain on diocesan assets from the home’s operations, it was necessary
to discontinue operations at this facility.

The Ministry Formation Fund (formerly the Seminary Fund) was created as a resource for increasing the number of clergy serving the diocese and to provide assistance for the formation of those accepting God’s call. Through the generous donations of many current and past contributors, the Fund has been able to provide financial assistance to those discerning the priesthood and those studying to be ordained, who otherwise, would be unable to meet their monetary obligations. Diocesan departments benefiting from this Fund’s resources are the vocation and permanent diaconate offices and the Office of Worship.

The Property Insurance Fund is responsible for the management and coordination of the diocese’s insurance coverage. The activities within this area of responsibility include the property, personal liability, workmen’s compensation and auto liability coverages for all diocesan parishes and agencies. By consolidating this function into a single negotiating entity, the diocese is able to minimize premiums, maximize coverage and diversify risk.

The Catholic Community Foundation is a separate not-for-profit corporation utilizing outside investment consultants and having a focus on long-term investment strategies. Parishes, agencies and related organizations investing with the Foundation are benefitting from equity and fixed income market returns at significantly lower overall costs. Primarily as a result of improved market performance, the Foundation, and correspondingly their investors, realized an annual increase in Fund assets of 7.29 percent.

In cooperation with the bishop’s cabinet, separate independent boards and committees participate in the monitoring and coordination of activities of the Funds previously discussed. The members of the boards and committees consist of lay individuals and clergy throughout the geographical boundaries of the diocese. Meetings are generally held quarterly and decisions rendered by majority vote. Annual separate independent outside audits are conducted for the Administrative Offices, the Catholic Service & Ministry Appeal, the Parish and Agency Resource Fund and for the Catholic Community Foundation.

Submitted by Jim Mroczkowski
Diocesan Chief Financial Officer