Archdiocese releases annual financial report
BRAINTREE -- The Archdiocese of Boston released Jan. 26 its annual financial report for the fiscal year ending June 30, 2011.
The report identifies key financial performance measures, including its financial position and changes in net assets during the most recent fiscal year. The full report is available on the Archdiocese's website (http://www.bostoncatholic.org/annualreport) together with the audited financial statements of Archdiocesan related organizations. The report should be read in conjunction with the recently issued 2012 Budget, which focuses on Central Ministries.
The report provides a comprehensive review of the archdiocese's assets, liabilities and financial activities. Included are the audited financial statements of the Roman Catholic Archbishop of Boston, a Corporation Sole, encompassing the activities of the parishes, central operations, the endowment fund, and the general insurance fund. The report also includes an accounting of payments for sexual abuse settlements and related expenses and the sources of these funds.
Cardinal Seán P. O'Malley stated that "The Archdiocese of Boston has greatly benefitted by the financial management of recent years that has achieved and sustained a balanced budget. The stabilization of our finances has led to increased confidence among our many generous benefactors, who provide us the means to invest in our parishes, schools, evangelization and the important mission of serving the poor and those in need. We are aware that there remain challenges to be addressed, but are encouraged by the progress being made in rebuilding our local Church. Going forward, we will maintain our commitment to be a sign of the presence of the Lord to the Catholics of the Archdiocese and the wider community."
Chancellor Jim McDonough stated, "We have made great progress in moving the Archdiocese from a position of financial freefall just a few short years ago to one of stability, fully committed to supporting our parishes, schools and ministries. Despite the challenges presented by the global financial crisis of 2008, we have worked diligently to achieve growth in many areas of our portfolio. This has been achieved while maintaining the cardinal's goal of being a mission driven Church. It is also important to note the many sacrifices our priests, deacons, religious, staff and laity have made to help right our financial ship. By making the difficult decisions in recent years we have achieved stability and we are better prepared to improve our ability to support the many important programs and ministries of the Archdiocese."
In his letter that accompanies the financial report, Chancellor McDonough added, "Central Ministries and the Pastoral Center remain committed to a culture of service, financial transparency and fiscally stable operations. Much work has been done and more remains. We will continue to serve and guide in these turbulent times knowing that 'we can do all things through Christ, which strengthens us'."
FY11 annual report highlights
Central ministries, a component of central operations, achieved a balanced budget maintained for second straight year.
Internal financial controls have continued to improve, eliminating the significant control deficiencies that had existed in prior years.
Net assets increased $31.0 million, primarily as a result of strong investment performance, and stronger operating performance by parishes.
Clergy Trust Funds unfunded liability declined $6.1 million.
Parish offertory increased 3 percent.
Enrollment grew in over half of the Archdiocese's Catholic schools and increased by 1 percent in Boston for the first time in 20 years.
Phase 1 parishes operating under the Improved Financial Relationship Model (IFRM) saw an overall net increase in operating funds of $1.2 million.
Average investment appreciation for the Common Investment Fund was 19 percent, a solid continuation and improvement on fiscal 2010 growth of 12 percent.
The lay Pension Plan transition to a new 401(k) plan was initiated.