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Diocese of Worcester Releases Annual Report for FY2011

Priests Retirement Care continues to present challenge to balanced budget

December 15, 2011, WORCESTER, MA -- Following a complete audit of its financial accounting, the Diocese of Worcester has issued online and printed editions of the annual report detailing activities for the fiscal year ending August 31, 2011.

In his letter, the Most Rev. Robert J. McManus, S.T.D., Bishop of Worcester, noted that the Diocese of Worcester “ended the fiscal year with an operating deficit of $315,690 after accounting for depreciation expenses of $467,874.” He also noted that “all office and programs under the Central Administration operated within their budgets.”

As noted by Bishop McManus in past annual reports, Priests’ Retirement Care is a continuing challenge. The bishop reported that, even with a $450,000 subsidy from Partners in Charity, retirement programs for clergy operated at significant expenses over revenues by $1,036,127. In his letter he writes “while I am firmly committed to the well-deserved and appropriate care for these priests who served our parishes throughout their lives, typically until the age of 75 or beyond, prudence dictates that continued deficit spending cannot continue and additional funding among other efforts will be explored this year.”

The Diocesan Expansion Fund ended the year on a positive note despite “the rocky investment year,” reporting revenue exceeding expenses by $381,861.

The printed report on financial activities is accompanied by an interview with Bishop McManus about his Ad Limina report to the Vatican which occurred in November 2011. That interview stressed the dialogue that occurs between each diocese and the various departments of the Holy See as the universal church continues to evaluate how effectively the Catholic Church is carrying on its evangelizing mission.

The Annual Report is being distributed as a supplement for 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. As in recent years, this year's report was audited by O’Connor, Maloney & Co., P.C. of Worcester.

Partners in Charity revenue appearing in the report was raised in the 2010 campaign and was disbursed to 29 agencies, ministries, and programs. They included Catholic Charities, Grant-in-Aid for Catholic School Students, Haitian Apostolate Ministry, Seminarian Education, and Religious Education. In his letter Bishop McManus noted that challenges could arise in the coming year, given the fact that the Annual Partners in Charity Appeal fell short of its $5 million goal by $275,650.

The St. John Cemetery System showed a balanced report due in part to a subsidy of $180,492 from Partners in Charity.
Central Catholic Schools operations totaled $12,607,299 resulting in expenses of $23,209 over revenues prior to accounting for depreciation, and non-operational funding. 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 1,933 students in Pre-K through grade 12 in those four schools during FY2010.

The Catholic Free Press operated with a loss of $103,990.

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 for parish bulletins. 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, co-director of Fiscal Affairs at 508-929-4340 or by email to cadams@worcesterdiocese.org.