Investments, Land Sale Help Fulfill $40m Diocese Payout

Cincinnati Post [Covington KY]
January 30, 2007

The Roman Catholic Diocese of Covington seems to have weathered the financial storm of a $40 million payout for sexual abuse victims pretty well.

The diocese started its fiscal 2005-2006 year in the minus column, with nearly $8 million more in liabilities than assets, but finished to the good with nearly $17.3 million in net assets, according to a report the diocesan newspaper, the Messenger, published earlier this month.

The diocese agreed in June 2005 to pay $40 million of its own money and to sue its insurance companies for up to $80 million to settle a class-action suit brought by victims of priest sexual abuse.

The diocese said that it funded its $40 million obligation by selling its Marydale retreat center property, off Donaldson Road in Erlanger, for $25 million. The diocese also used "substantially all of its uncommitted cash and investments," Bishop Roger Foys told the Messenger.

The audit shows that the diocese began the year with $28.7 million in investments and ended it with $11.6 million, a difference of about $17 million.

Over the past three fiscal years, the diocese has paid nearly $42.5 million to settle claims of sexual abuse by priests.


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