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	Diocese of Worcester Releases Annual Report for FY2009 Unrealized Losses from Investments Hurt Bottom Line Roman Catholic Diocese of Worcester January 15, 2010 http://www.worcesterdiocese.org/09AnnualRptRls/tabid/875/Default.aspx [links to financial reports] WORCESTER, MA -- Following a complete audit of its financial accounting, the Diocese of Worcester has issued an online and printed edition of the annual report detailing activities for the fiscal year ending August 31, 2009. Most Rev. Robert J. McManus, S.T.D., Bishop of Worcester, noted in his letter that despite the significant economic challenges, the report demonstrated many strengths. "The Annual Partners in Charity Appeal raised $4,822,180, the second highest amount ever." He also noted that "for the most part, our Diocesan departments and agencies were able to operate with balanced budgets last year." Many of the reported deficits were attributed to unrealized losses on investments, not deficit spending in operational budgets. For example, Central Administration reported $665,150 in expenses over revenue after accounting for an unrealized investment loss of $682,244. One significant challenge that stands out in the report is Priests Retirement care. Bishop McManus noted that the largest subsidy from the Annual Partners in Charity Appeal is for the care of retired priests, with a $920,000 allocation. However, he noted, "our retirement programs for clergy were underfunded last year by $1,368,126." The Annual Report with its associated Financial Reports on Operating Activities is being distributed as a supplement in this weekend's parish bulletins and is posted online at www.worcesterdiocese.org. A complete copy of the auditor's report is also available online. This year's report was audited, as in recent years, by O'Connor, Maloney & Co., P.C. of Worcester. The Annual Report accompanying the Report of Operating Activities discusses the scope of the ministries provided by the Diocese of Worcester in order to give a better sense of the relationship between the parishes and the diocese. Bishop McManus made note of the ongoing pastoral planning process "as we continue to review and strengthen parish life. The most significant reason for pastoral planning is to renew our parishes spiritually. The decision to merge or close parishes, however, helps us to better conserve our resources." Partners in Charity revenue appearing in the report was raised in the 2008 campaign and was disbursed to 27 agencies, ministries, and programs. They included Catholic Charities, Grant-in-Aid for Catholic School Students, Vocations recruitment and seminarian studies, as well as the Priests' Retirement Fund. The Diocesan Expansion Fund reported revenues exceeding expenses by $726,345, including $248,461 in unrealized gain on investments. That was an improvement over the $427,954 in excess revenues the previous fiscal year. With the influx of a subsidy of $29,793 from Partners in Charity, the St. John Cemetery System showed a balanced report at $1,450,529. Central Catholic Schools operations totaled $15,200,298 resulting in a $23,396 loss prior to accounting for subsidies, depreciation, and non-operational funding and loans. That operational loss was lower than in the previous fiscal year, which exceeded $94,000. 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 2,347 students in those four schools during FY2009. The Catholic Free Press operated with a loss of $78,889 as compared to a $54,739 loss the previous year. A complete list of all revenues and expenditures by agency or ministry is available online at www.worcesterdiocese.org and in the printed Annual Report supplement in parish bulletins. The online report includes links to supplemental reports. The document was prepared internally for publication by the Office of Communications. Any questions about the audited financial statement can be directed to Carol Adams, Manager of Accounting at 508-929-4340 or by email to cadams@worcesterdiocese.org
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