Priests’ retirement care expenses hit diocesan budget

The Diocese of Worcester ended the 2011 fiscal year with an operating deficit of $315,690, according to the annual budget report.
In a letter to the diocese, Bishop McManus said that the deficit included depreciation expenses of $467,874. He noted that “all offices and programs under the Central Administration operated within their budgets.”
He said that priests’ retirement care continues to be a challenge. According to the annual report, the Priests Retirement Fund ended the fiscal year with a deficit of $1,036,127, even with a subsidy from Partners in Charity of $450,000. The fund had revenue totaling $1,340,424, including the subsidy, and expenses totaling $2,616,693.
The bishop wrote that “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 2010 Partners in Charity drive showed  donations totaling $4,807,782, uncollected pledges of $305,537 and funds available for use totaling $4,502,245.
The annual Partners in Charity Appeal  helps to support 29 charitable, educational and ministerial organizations in the diocese. That support amounted to $4,454,026, leaving revenue after funding of $48,219. The printed annual report mistakenly listed the $48,219 revenue surplus as expenditures over funding.
In his letter the bishop said that, because the 2011 Partners in Charity Appeal missed its $5 million goal by $275,650, challenges could arise in this fiscal year.
Central Administration showed revenue totaling $4,016,691, expenses of $3,409,629, depreciation of $103,674, with revenue over expenses of $503,388.
The Central Catholic Schools had revenue  totaling $12,584,090 and expenses totaling $12,607,299, with a deficit of $23,209. There were 1,933 students in pre-kindergarten through 12th grade in the four Central Catholic schools. The schools include Holy Name and St. Peter-Marian Central Catholic Junior/Senior High schools and St. Peter Central Catholic Elementary School, all in Worcester, and St. Bernard Central Catholic High School in Fitchburg.
The St. John’s Cemetery System showed revenues of $1,225,388 and expenses of $1,406,388, but with  a Partners in Charity subsidy of $180,492, it broke even.
The Catholic Free Press had a deficit of $103,990 on revenue of $520,557 and expenses of $624,547. Parishes were assessed $429,203 for subscriptions but paid only $275,714 to the paper. Other revenue included direct subscriptions, advertising and print shop sales.
The Diocesan Expansion Fund showed revenue of $3,323,124 on investment income and interest on loans. Expenses were $2,584,337, plus $356,926 unrealized gain in investments. The Fund finished the fiscal year with revenue over expenses of $381,861.
The annual report was distributed last week to parishes as a supplement to bulletins and is posted online at www.worcesterdiocese.org. The document was prepared internally for publication by the diocesan Office of Communications.

The annual financial statement was audited by O’Connor, Maloney & Co. P.C. of Worcester. Questions about the audited financial statement may be directed to Carol Adams, co-director of Fiscal Affairs at 508-929-4340 or by email to cadams@worcesterdiocese.org.



CFP File Photo: Retired priests and religious were entertained by St. Peter 's Central Catholic Elementary School children at a Christmas program last year.