Welcome to Scribd. Sign in or start your free trial to enjoy unlimited e-books, audiobooks & documents.Find out more
Standard view
Full view
of .
Look up keyword
Like this
0 of .
Results for:
No results containing your search query
P. 1
Archdiocese Financial Statements

Archdiocese Financial Statements

|Views: 3,162|Likes:
The Archdiocese of St. Paul and Minneapolis have released a detailed financial report, after months of criticism that the church had secretly paid millions of dollars in legal expenses and to support priests who were removed from ministry for abuse.
The Archdiocese of St. Paul and Minneapolis have released a detailed financial report, after months of criticism that the church had secretly paid millions of dollars in legal expenses and to support priests who were removed from ministry for abuse.

More info:

Published by: Minnesota Public Radio on Feb 13, 2014
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less





F   o m  t  h   e i    s h   o  p 
Being accountable to the people we serve
 Archbishop John Nienstedt has not yet returned to writing his column. Bish-op Lee Piché, auxiliary bishop of St. Paul and Minneapolis, offers the follow-ing guest column for this issue.
This year, for the first time, the archdiocese is releasing its full audited financial report, as has been planned for months and communicated publicly in December 2013. We are doing this because we are accountable to the people we serve. Without the time, talent and treasure of the hundreds of thousands of Catholics who support the ministry of this local Church, we could not live out our mission to make the name of Jesus Christ known and loved. The Catholics throughout this local Church
 the Church.The financial information contained in this edition of The Catholic Spirit and posted on-line covers the 2013 and 2012 fiscal years, which ended on June 30, 2013 and 2012. Thanks to you, support for ministry across this local Church remains strong. Local Cath-olics’ steadfast support for ministry to fulfill the mission of the Church speaks to the un-wavering faith of those who make up this lo-cal Church. Catholics understand that the tragic moral failure of a few does not define who we are as Catholics.First, please note a few structural facts that may not be known to everyone. The most im-portant thing for you to know is that the arch-diocesan financial report covers the activities of the archdiocese’s Chancery Corporation. Each parish, as well as certain other Catholic entities located within the 12 counties of the archdiocese, is a separate Minnesota corpora-tion. This means parishes, as well as Catholic entities like Catholic Charities, most Catholic high schools and other Catholic organiza-tions, operate as separate corporations and report their own financial information to their stakeholders.It’s also critically important that you are aware that since March 2012, new internal controls have been put in place. They are enforced strictly. Another important point is this: The information in this issue of The Catholic Spirit, as well as the information posted online, including the full audited financial report, while more expansive than that shared in the past, is still summary by its very nature. Please know that independent auditors had access to all of our finan-cial accounts before issuing an unqualified opinion on our fiscal year 2013 financial statements. An unqualified opinion means that an inde-pendent auditor finds that an institution’s financial statements are fair-ly and appropriately presented, and in accordance with generally ac-cepted accounting principles.In addition to the full audited financial report posted online, in this issue of The Catholic Spirit you will see an article describing financial activities in detail, condensed financial statements and accompanying notes, and additional information about certain financial accounts that have elicited particular interest in recent months. Auditors had access to line items rolling up into those accounts, 1-515 and 1-516, (see state-ment “Detailed Accounting of Accounts 1-515 and 1-516,” page 19), just as they had access to line item detail for all other archdiocesan ac-counts.The archdiocese wishes to thank members of the Archdiocesan Fi-nance Council, the corporate board, and the College of Consultors for their continued diligence in financial oversight and counsel. The Catholics of this local Church are generous — and their generos-ity makes possible the many good works carried out by the Church across our archdiocese, including: • Support for seminarians studying to become priests for this archdio-cese;• Support for Catholic schools, tuition assistance for families, organizational support through the Of-fice of Catholic Schools, and campus ministry;• Support for youth ministry programs that build up the faith of our young people; including Archdi-ocesan Youth Day, which brings together hundreds of area high school youth every year to praise God, grow in the faith, and find fellowship;• Support for Latino ministry outreach to meet the spiritual needs of local Spanish-speaking Catholics at 23 parishes across the archdiocese;• Support for the work of Catholic Charities to help the hungry, the homeless, the elderly, immi-grants and at-risk youth;• Support for the many marriage, family and life programs and events that serve to strengthen mar-riage, build up families and promote the dignity of life from conception to natural death; • Support for the
 evangelization and catechesis initiative, which reaches out with joy to invite others to a full life in the faith.The release of our full audited financial report, as well as additional information to explain particular points of interest, is part of our ongo-ing commitment to improve transparency and accountability, evi-denced not only in our ongoing disclosure of clergy with credible claims of abuse of minors, but also through our commitment to improved fi-nancial reporting.We are taking these steps because they are the right thing to do — be-cause they help us to protect the young and vulnerable, care for victims of abuse, and restore trust among the laity, as well as our clergy who are serving honorably.We have made a commitment to transparency because we are ac-countable to the people we serve. The archdiocese’s Chancery Corpora-tion exists to support the people, parishes, Catholic schools, religious education programs and other Catholic organizations of our commu-nity in fulfilling the mission of the Church. Thank you.
Bishop Lee Piché
For the annual report of the archdiocese’s Chancery Corporation, please see pages 17 to 20.
His Excellency, the Most Rev. John C. Nienstedt, has announced the following appointments in the Archdiocese of Saint Paul and Minneapolis.
Effective February 8, 2014
Most Reverend Andrew Cozzens,
 appointed “ad nutum episcopi” as parochial administrator of the Church of the Assumption in Richfield. Bishop Cozzens succeeds the Rev. Charles McCarthy, OFM Conv., who was transferred to another assignment outside of the Archdiocese.
Most Reverend Lee Piché
, appointed “ad nutum episcopi” as parochial administrator of the Church of Saint Boniface in Minneapolis. Bishop Piché will cover pastoral responsibilities while the current pastor, Rev. Mark Wehmann, is on a leave of absence.
Most Reverend Lee Piché
, appointed “ad nutum episcopi” as parochial administrator of the Church of Saint Cecilia in Saint Paul. Bishop Piché succeeds Bishop Cozzens as administrator.
 February 13, 2014 The Catholic Spirit
One year later, Pope Benedict enjoying retired life
Catholic News Service
In retirement, Pope Benedict XVI follows a daily schedule similar to that of any retired bishop or religious: He prays, reads, strolls, talks with people and offers them spiritual advice, the Vatican spokesman said.Although he “lives in a low-key way, without public attention, that does not mean he’s isolated or enclosed in a strict cloister,” Jesuit Father Federico Lombardi told Vatican Radio.Marking the one-year anniversary of Pope Benedict’s resignation Feb. 11, Father Lombardi and Archbishop Georg Gans-wein, the retired pope’s longtime personal secretary, spoke about the very normal daily life of a man who is in the unusual position of being a retired pope.Archbishop Ganswein, who continues as Pope Benedict’s personal secretary while also serving Pope Francis as prefect of the papal household, summarized the retired pope’s day as filled “with prayer most of all, with study, with personal cor-respondence and visits.”“The day begins with Mass, then with the breviary, followed by breakfast,” he told Famiglia Cristiana, a Catholic magazine. “The morning usually is dedicated to prayer and study, to the mail and to receiving guests.”Archbishop Ganswein and the consecrated laywomen who assist the retired pope join him for lunch at 1:30 p.m., and a nap always follows, he said. Pope Benedict spends the after-noon dealing with his correspondence and listening to music until 4 p.m., when he and the archbishop recite the rosary while walking in the garden behind the former Vatican con-vent where he lives. They eat dinner at 7:30 p.m. and watch the evening news at 8 p.m.Archbishop Ganswein said Pope Benedict had told him he was retiring long before the Feb. 11 announcement, but under the strictest secrecy. “Instinctively, I said, ‘No, Holy Father, it’s not possible,’ but I realized immediately that he wasn’t com-municating something he wanted to discuss, but a decision already made.”The archbishop said the “VatiLeaks” scandal, which saw the publication of confidential papal correspondence and internal Vatican documents, “did not cause or even influence the resig-nation.”“The pope did not flee a responsibility, but was courageous” enough to realize he no longer had the strength to carry out the papal ministry, he said.Archbishop Ganswein also confirmed that Pope Francis and Pope Benedict speak frequently on the telephone.
 February 13, 2014 The Catholic Spirit
Archdiocesan Chancery Corporation Annual Report • 2012 – 2013
Financial officer report
By Thomas Mertens,
CFO, Archdiocese of St. Paul and Minneapolis
Since I arrived at the archdiocese in late 2012, along with the Archdiocesan Finance Council (AFC), I have made recommendations regarding financial best practices, including measures to improve transparency regarding financial data of the archdiocesan Chancery Corporation. Work was underway in this area when I arrived, and I have made it my top priority to continue this important effort. To this end, we are releasing our full audited financial report for the first time. I believe this is critically important in assuring our many stakeholders that we are accountable to them and we are good stewards of the gifts entrusted to us in service of the mission of the Church. The recommendation to release the full audited financial report is supported fully by the archbishop and the AFC, a body made up primarily of lay accounting and finance professionals. The AFC unanimously approved the recommendation in October 2013 at its monthly meeting. As has been the practice for more than 25 years, in February, the archdiocese releases financial information regarding the previous fiscal year and publishes it in The Catholic Spirit. For the past several years, condensed financial statements and related notes have been published. This year, we again are including the condensed financial statements and notes, along with this commentary article, but encourage you to go online to archspm.org to see the full audited financial report. The archdiocesan financial report covers the activities of the archdiocese’s Chancery Corporation. Each parish, as well as certain other Catholic entities located within the 12 counties of the archdiocese, is a separate Minnesota corporation. This means parishes, as well as Catholic entities like Catholic Charities, most Catholic high schools, and other Catholic organizations operate as separate corporations and report their own financial information to their stakeholders.Our financial statements were audited by the independent certified public accounting firm of CliftonLarsonAllen LLP, who have issued an unqualified opinion. An unqualified opinion means that an independent auditor finds that an institution’s financial statements are fairly and appropriately presented, and in accordance with generally accepted accounting principles (GAAP). For at least the past 15 years, the earliest for which records are readily available, independent accountants have been given full access to all of our financial records in order to perform an audit, in each case giving us an unqualified opinion on our financial statements. These audits were performed by two different firms during that 15-year time period. It also is important to note that since March 2012, new internal controls have been put in place to safeguard assets and these controls are enforced strictly. Archdiocesan leaders have made a firm commitment to create a culture of transparency and continue to make strides in this regard, as evidenced now by the release of our full audited financial report for the first time in our history.
Financial condition
At June 30, 2013, the financial condition of the archdiocese is solid even with the contingent liability related to litigation stemming from the unprecedented third “open window” in the civil statute of limitations for alleged sexual abuse. The financial result of operating activities in 2013 resulted in a deficit of $3,872,000. The deficit can be attributed to the increase in reserves of $3,950,000 to cover potential liability related to civil litigation.
Total Operating Revenue for 2013 was $35,494,000 as compared to $32,179,000 in 2012. Fees and Program Revenue increased $2,551,000, due to revenue generated by The Catholic Spirit after it became part of the Chancery Corporation on July 1, 2012. The primary sources of revenue, Parish Assessments and the Catholic Services Appeal (CSA), were up 4 percent and 6 percent respectively in 2013. The increase in assessments reflects increased contributions at parishes during the modest economic recovery that began in 2010. CSA revenue, as reported, is after deductions for rebates to parishes and allowances. On a pre-deduction basis, the CSA generated $10,118,000, which was $174,000 more than the CSA generated the previous year ($9,944,000 pre-deduction). The growth in net CSA income speaks to the consistent generosity of the local Catholic community to the designated ministries supported by the CSA. It is very important to note that beginning with the 2014 CSA, all contributions to the CSA will be held by the Catholic Services Appeal Foundation (CSAF), an independent 501(c)(3) organization which was established recently. CSA contributions will be used for the benefit of designated ministries of the CSAF and for no other purposes, honoring donor intent. Funds used to prepare for potential litigation costs do not come from contributions through the CSA. More information is available at csafspm.org.Contributions through unsolicited gifts and bequests decreased slightly and unrealized losses and lower income from mutual fund fixed income investments resulted in a decrease of $608,000 in Investment Income. The archdiocese maintains a conservative investment philosophy to pursue continued growth in assets without unnecessary exposure to volatility. For this reason, we primarily are invested in fixed income mutual funds, which did not see the growth equities enjoyed in 2013.
Operating expenses
Operating Expense totaled $39,366,000 in 2013 as compared to $30,672,000 in 2012. Program Services costs increased $2,650,000 while Support Services costs increased $6,044,000, year over year. The increase in Program Services costs relates to an expansion of the Communications and Community Relations office, which brought The Catholic Spirit into the Chancery Corporation and resulted in expenses related to its production being included in archdiocesan financials. This increase also was due to costs related to the Rediscover: evangelization and catechesis initiative, and continued improvements to data, fundraising, and accounting systems at the archdiocesan level that benefit parishes and Catholic schools across the archdiocese. The archdiocese did not provide $1,000,000 of support to the Cathedral of St. Paul parish to reduce debt, as it did in 2012, which explains the decrease in Community Services expenses. The increase in Support Services costs year over year is due to the $5,000,000 increase in Litigation Reserve Expense. This $5,000,000 change is the result of the 2013 expense of $3,950,000, due to an increase in reserve and the 2012 negative expense of $1,050,000, due to a reduction in the prior year reserve. The Chancery Corporation is involved in various lawsuits relating to claims of alleged sexual abuse. For known claims there is no practical means to determine the likelihood of outcome. Under accounting standards, when no amount within a particular reserve range is a better estimate of a particular outcome than any other amount, we are required to use the minimum amount of the range for our accrual. We have not accrued any amount for unknown claims as these cannot be reasonably determined due in part to the unprecedented third “open window” for civil sexual abuse claims in Minnesota. We are not able to look to dioceses in other states for guidance because no other state has had as many “open windows” during which the civil statute of limitations has been lifted. These accruals are management’s estimates and not intended to be indicative of the actual legal outcomes of the individual cases. Losses from unknown claims could be substantial. We will tender the defense of these claims to our insurers whenever possible. However, claims can go back to a time period in which insurance may not have been available or coverage limits were minimal. Most cases which have surfaced to date relate to alleged incidents 20-30 years ago; some are related to incidents alleged to have occurred more than 50 years ago. In addition, Support Services costs increased year over year as a result of expenses related to the transition in leadership for the Chancellor for Civil Affairs and the Chief Financial Officer, in which the incumbent and new leaders were each drawing salaries for a period of time. Following is a narrative that explains the services the various offices and programs of the archdiocese provide to serve Catholics and our larger community in support of the mission of the Church. Accompanying the narrative is a chart depicting the expenditures by program.
Report continued on next page 
 What’s new this year?
The archdiocese’s Chancery Corporation has shared summary financial information in various formats in The Catholic Spirit since 1988.Here’s how the archdiocese’s Chancery Corporation financial information shared in this issue is different from what was shared in past years:
 For the first time, the archdiocese will share the full audited financial report for the Chancery Corporation, which can be found on archspm.org, including:• Statements of Financial Position, Statements of Activities, and Statements of Cash Flows;• Full notes to financial statements — including information on litigation claims payable and detailed financials of the General Insurance Program Trust;• The independent auditors’ report.
 The archdiocese is also sharing in a separate statement more detailed information than what is in the full audited financial report regarding accounts that have become the subject of public interest: accounts 1-515 and 1-516. Outside independent auditors had access to line items rolling up into accounts 1-515 and 1-516, just as  they had access to line item detail for all other archdiocesan accounts.
The following comments elaborate on the financial statements of the Archdiocese of St. Paul and Minneapolis’ Chancery Corporation for the fiscal year ended June 30, 2013. Condensed financial statements are included in this issue of The Catholic Spirit. The full audited financial statements with footnotes and auditors’ opinion are  posted at archspm.org on the Administration and Finance page.
Continued from page 17 
Program Services
Clergy Services - $8,364,000
The role of this office is to assist the archbishop with support and formation for priests and deacons in all aspects of ministry and pastoral care.
Seminarian Formation:
 There are currently 65 men in formation for the priesthood in service of our archdiocese. While this number changes throughout the discernment process, our archdiocese has one of the largest enrollments of seminarians of any diocese in the country. Expenses include a portion of the cost of tuition, room and board for men at The Saint Paul Seminary School of Divinity and St. John Vianney College Seminary.
Center of Clergy Formation
: Institute of Ongoing Formation for Clergy and the Institute of Diaconate Formation comprise the Center of Clergy Formation. Each entity of the center provides an integrated approach to priestly and diaconate formation, including gatherings and support for newly ordained priests, programs to assist new pastors in their role, and ongoing formation opportunities for priests and deacons throughout the archdiocese.
Continuing Education
: This includes continuing education opportunities; a sabbatical program; international enculturation; and a biennial presbyteral assembly.
: There are 10 priests and one deacon in full- or part-time ministry at hospitals and correctional facilities throughout the archdiocese. Numerous other priests and deacons volunteer their time in this ministry. They offer the sacraments and spiritual support during some of the most difficult times in peoples’ lives. Last year, thousands of people throughout our community were served by archdiocesan chaplains.
Specialized Ministries
: This includes the Office of Vocations, support for international clergy, and retired clergy. Accounts to support priests credibly accused of sexual abuse and other misconduct, as well as those struggling with addiction and other behavioral issues, and provide services to victims of clergy misconduct are included in Clergy Services. (See Statement from the Archdiocese regarding accounts 1-515 and 1-516 on page 19 for more information.)
Community Services - $2,438,000
The archdiocese helps men, women and children most in need within our local community, including the poor, hungry, homeless, and those with special needs. The archdiocese does this through cash and non-cash support to Catholic Charities and CommonBond Communities (a housing agency for low- and moderate-income families, the elderly, and the disabled). In addition, emergency support is provided to parishes stressed by debt or operational issues.
Catholic Education - $6,547,000
The Office of Catholic Schools supports the education and formation of children at Catholic schools within the Archdiocese of St. Paul and Minneapolis. This support includes: Catholic identity review and support, leadership development and assistance in implementing academic programs. The Office of Catholic Schools also provides programmatic oversight to promote innovation and excellence in local urban Catholic schools.
Parish Services - $2,238,000
The Office of Parish Services provides consultation, planning and leadership development opportunities to parishes throughout the archdiocese. One example of this is the GROW initiative, which encourages parishes to develop and implement robust pastoral and strategic plans. The archdiocese supports outreach ministry to various groups and members of the archdiocesan community, including Latino ministry, Indian ministry, the Commission on Black Catholics, the Venezuelan mission, and Archdiocesan Council of Catholic Women, deaf ministry, and other groups and coalitions. As one example: the Latino Ministry Advisory Council, led by the Vicar for Latino Ministry, oversees support and programming at 23 Latino Ministry parishes throughout the archdiocese. These 23 parishes offer the sacraments, catechesis and spiritual support to tens of thousands of Spanish speaking people throughout the local Church. Latino Ministry also oversees special days of celebration of the faith and family throughout the year. In addition, Latino Ministry runs biblical, catechetical and pastoral leadership development institutes for members of the Latino community to grow in the faith and engagement in the Church.
Central Services - $6,352,000
The Department of Central Services provides support and services to the Chancery Corporation staff and the parishes. The department includes the offices of: the Chancellor (the civil and canonical counsel for the archdiocese); computer services; metropolitan tribunal who work with those seeking annulments; human resources and benefits; the Parish Accounting Service Center (which provides contract accounting services to parishes and schools); and maintenance. Also covered in this category are administrative services to the General Insurance Program Trust, the lay and priest pension plans, and the Archdiocese Medical Benefit Plan Trust, as well as dues to the Minnesota Catholic Conference and the United States Conference of Catholic Bishops.
Marriage, Family and Life - $1,250,000
This department assists the laity and parishes through programs supporting: marriage preparation, family, youth and young adults, respect life, pro-life groups, biomedical ethics and outreach for disabilities. The Office of Marriage, Family and Life also sponsors the annual Archdiocesan Youth Day that brings together hundreds of local high school-aged teens to praise God, grow in the faith and find fellowship. In addition, this office helps coordinate local representatives attending World Youth Day, the National Catholic Youth Conference and other youth events.In 2013, the archdiocese provided $200,000 in financial assistance to a broad coalition to support marriage in the state of Minnesota. The sources of these funds did not come from parish assessments, the Catholic Services Appeal, or restricted donations to the archdiocese.
Communications and Community Relations - $3,608,000
The Office of Communications fulfills the role of Community Relations by helping convey the teachings of the Church and fostering two-way communication between the archdiocesan Chancery Corporation and the faithful, parish and school leaders and staff, and others in our community. It does this through The Catholic Spirit (the official archdiocesan bi-weekly newspaper) multiple websites, social media, video, radio, e-newsletters and other communications vehicles. On July 1, 2012, The Catholic Spirit newspaper became part of the Office of Communications. The move increases efficiency and will reduce expenses over time. Rediscover: is an ongoing pre-evangelization, evangelization, and catechesis initiative that supports outreach to all Catholics and provides formation opportunities to deepen their faith by complementing the good outreach and formation work already being done by parishes, Catholic schools and ministry organizations throughout the archdiocese. Attendance topped 15,000 for the 2013 Rediscover: faith Speakers
Report continued on next page 
Archdiocesan Chancery Corporation Annual Report • 2012 – 2013
February 13, 2014 • The Catholic Spirit
Archdiocese of St. Paul and Minneapolis Operating Revenue FY 2013 (in Millions) $35.5 Millio
Archdiocese of St. Paul and Minneapolis Operating Expense FY 2013 (in Millions) Program and Support Services $39.4 Million

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->