Chancellor provides additional information on financial statement

The following Q&A was prepared by the Office of the Chancellor to respond to potential questions related to the 2004 financial statement of the archdiocese printed on pages 16-19 in this week’s edition.

Q: The statements you gave us are for FY 2004 only. Why don’t you make comparative statements available?

A: We provide substantial additional detail with our trailing fiscal year statements as published in The Pilot. Full comparatives and footnotes are available on our Web site.

Q: Last fall, Archbishop Seán P. O’Malley said that the Central Fund was losing $10 million per year. These statements show an operating loss of $19.3 million. How do you explain his statement?

A: The archbishop was referring to the amount by which our recurring expenses exceed our recurring revenue. The $19.3 million “operating loss” includes $12.9 Million in non- recurring settlement expenses. When you subtract the non-recurring expense, add back the increased appeal that these statements show because of timing differences and adjust for inflation you come out at a $10 million dollar level, which is just what the archbishop reported.

Q: What about the appeal. Last year, the statements showed $7.6 million. This year, they show $12.2 million. How do you explain that?

A: Our financial statements follow generally accepted accounting principals. Non-profit institutions recognize revenue when they receive it or when they have a firm pledge. Due to the Promise for Tomorrow campaign, part of the FY 2003 appeal was conducted during FY 2004.

Q: What are the real appeal numbers?

A: The Catholic population is coming back to the appeal and doing so in large numbers. The number of donors has increased from 40,843 in 2002 to 44,097 in 2003 to 53,999 in 2004. Donations for those same appeal years were, $8,788,860, $10,435,348 and $10,881,793 (to date) respectively.

Q: Your statements show $99,260,500 going to settlement related expenses during the two-year period. In the past, you have said that no appeal money has been used for settlements. Is that still true?

A: Yes. Those same statements show gains on real estate exceeded the amounts paid for settlement items.

Q: Are you saying that the settlements have had no impact on the Church?

A: No. I’m only saying that the Archbishop has kept his word and deserves your confidence. I will say that the Archbishop would never have sold most of the Brighton campus to Boston College were it not for the need to compensate victims. Nonetheless, it would be foolish to say that those tasked with developing a long-range strategic plan would not have had more options to consider if we still owned the property we sold.

Q: We have heard a lot about strategic planning. When will it be done?

A: A full plan will take several months to complete. Portions of the planning projects are underway. Some have not yet begun. We are grateful to the Finance Committee for taking the lead and brought in so many talented volunteers to help with it.

Q: Will it be months before anything is done?

A: No. You will start to see the impact in the FY 2006 budget process. Ongoing losses will be reduced. It’s too soon to tell exactly how much, but the reduction will be significant.

Q: You mentioned pension liability in your cover letter. What is the status of the lay and clergy pension plans?

A: FY 2004 was a good year for investment performance. A total return of 13.6 percent was attained. This narrowed the funding gap in both plans. Archbishop O’Malley’s estimate of a total incremental funding need of $25 million in the lay plan is solid and is being closed in on because of the changes in future benefits made and communicated last year. His estimate of $55 million, after pending design changes, in the clergy plan is also conservative based on last year’s market performance. Fully funding these plans will be a high priority of the ongoing strategic planning effort.

Today is 'hour of the laity,' Archbishop Gomez tells Encuentro delegates

GRAPEVINE, Texas (CNS) -- Hispanic Catholic leaders are living an important moment in the history of the Catholic church in the U.S. and are called to ...

Stay close to the suffering, forgive one another, pope tells Latvians

AGLONA, Latvia (CNS) -- What would Mary do? was the question Pope Francis, in effect, asked Latvian Catholics gathered at their nation's popular Marian ...

Joy, hope contagious for Encuentro participants as they discern priorities

GRAPEVINE, Texas (CNS) -- Joy, hope, energy and a spirit of continued collaboration are contagious among the participants of the Fifth National Encuentro, ...

Update: Pope in Lithuania: Don't let anti-Semitism, hatred resurge

VILNIUS, Lithuania (CNS) -- Outside the former KGB headquarters in Vilnius, Pope Francis ended a day of paying homage to victims of totalitarianism and ...

God is patient, even with failures, pope tells young Lithuanians

VILNIUS, Lithuania (CNS) -- Meeting young Lithuanians in Vilnius, Pope Francis said he wanted a relaxed conversation, like they were sitting in a pub ...

Update: Vatican signs provisional agreement with China on naming bishops

VILNIUS, Lithuania (CNS) -- For the first time in decades, all of the Catholic bishops in China are in full communion with the pope, the Vatican announced. Pope ...

Find strength in tolerance, solidarity, pope tells Lithuanians

VILNIUS, Lithuania (CNS) -- In Lithuania, a nation that experienced invasions, atrocities and persecution, Pope Francis began his visit with a plea to ...

Ospino: Encuentro reflects 'energy, maturity' of a church 'here to stay'

GRAPEVINE, Texas (CNS) -- The thousands of Hispanic Catholic ministry leaders gathered in Texas for the Fifth National Encuentro shared views on the maturity ...

N.J. cardinal won't attend synod, asks to remain home at 'time of crisis'

NEWARK, N.J. (CNS) -- Cardinal Joseph W. Tobin of Newark told the people of his archdiocese Sept. 21 that Pope Francis has granted his request that he ...

Detroit Archdiocese welcomes investigation into Michigan dioceses

DETROIT (CNS) -- Michigan's attorney general has opened an investigation into the handling of sexual abuse by clergy in all of Michigan's seven Catholic ...

Catholics believe in God but 'don't believe in us,' Miami archbishop says

MIAMI (CNS) -- The crisis the Catholic Church is facing is not "a crisis of faith" or "mainly about a crisis of sexual abuse by clergy," but is "a crisis ...

Update: Disney animator says grounding in Catholic schools led to success

SIOUX CITY, Iowa (CNS) -- Ron Clements is a renowned animator, screenwriter and producer-director of award-winning Disney films, including the blockbuster ...

#WhyImCatholic movement aims to share hope at difficult time for church

CHICAGO (CNS) -- Catholic Extension has launched a new social media campaign called #WhyImCatholic to offer "hope and unity" for Catholics by inviting ...

Continue to be an evangelizing church, nuncio tells Encuentro delegates

GRAPEVINE, Texas (CNS) -- Quoting from Pope Francis' apostolic exhortation "The Joy of the Gospel," Archbishop Christophe Pierre encouraged Hispanic Catholic ...

Encuentro opens with procession, papal message, prayers for abuse victims

GRAPEVINE, Texas (CNS) -- A video message from Pope Francis and a procession of Encuentro crosses representing all of the participating episcopal regions ...

Retired Green Bay auxiliary bishop failed to report abuse, withdraws from ministry

Green Bay, Wis., Sep 20, 2018 CNA/EWTN News.- Bishop Robert Morneau, Auxiliary Bishop Emeritus of Green Bay, has withdrawn from public ministry saying ...

Dolan 'impatient' waiting for apostolic visitation in response to McCarrick

New York City, N.Y., Sep 20, 2018 CNA.- The Archbishop of New York said Thursday that while he has confidence in the way Pope Francis is handling the ...

Two more Chilean bishops step down in wake of abuse crisis

VATICAN CITY (CNS) -- Pope Francis accepted the resignations of two more Chilean bishops, bringing to seven the number of bishops who have stepped down ...

Celebration of the Priesthood dinner raises over $1.8 million

BOSTON -- A record 1,700 people attended the 10th annual Celebration of the Priesthood dinner to raise funds for the Clergy Health and Retirement Trust ...

Lawrence parish helps community cope with gas explosion aftermath

LAWRENCE -- Volunteers at St. Patrick Church's Cor Unum Meal Center were serving dinner when multiple natural gas explosions and fires broke out in homes ...

Ceremony, Mass kick off St. Augustine Chapel bicentennial

SOUTH BOSTON -- St. Augustine Chapel and Cemetery began its year-long bicentennial celebration on the weekend of Sept. 14-16 with tours, special Masses, ...

Mass. Knights install new officers

The Massachusetts State Council Knights of Columbus recently held its Installation of State Officers at St. John the Evangelist Parish in Canton with ...

Deal will keep Sancta Maria Nursing Facility open

CAMBRIDGE -- Sancta Maria Nursing Facility announced Sept. 17 that it has negotiated a comprehensive operational contract with Advocate Healthcare Management ...

From Cardinal Seán's blog

As I mentioned in my preface to last week's blog, this week and last, I have been in Rome for meetings related to the work of the Pontifical Commission ...

N.Y. Archdiocese names judge as independent reviewer on abuse protocols

NEW YORK (CNS) -- New York Cardinal Timothy M. Dolan has named a former federal judge to study archdiocesan policies and procedures with respect to sexual ...

U.S. reports poverty declines, but agencies finding needs remain great

WASHINGTON (CNS) -- The good news from the U.S. Census Bureau Sept. 12 was that the poverty rate dropped for the third straight year in 2017 and median ...

Class-action lawsuit filed against eight Pennsylvania dioceses

PITTSBURGH (CNS) -- A class-action lawsuit was filed Sept. 17 against eight Catholic dioceses in Pennsylvania demanding the dioceses provide proof that ...

Apostolic visitor outlines plans for expansion at Medjugorje shrine

WARSAW, Poland (CNS) -- The Polish archbishop tasked with overseeing Bosnia-Herzegovina's Medjugorje shrine has outlined plans for expansion, including ...

Pope names administrator as Indian bishop investigated for alleged rape

MUMBAI, India (CNS) -- Pope Francis has accepted the request of an Indian bishop accused of raping a nun to be relieved of his duties during the investigation. In ...

In letters to German cardinal, retired pope defends way he stepped down

VATICAN CITY (CNS) -- Retired Pope Benedict XVI expressed his displeasure with the way a German cardinal publicly criticized his stepping down as pontiff, ...

Thousands of Hispanics expected in Texas for Encuentro summit

Fort Worth, Texas, Sep 20, 2018 CNA/EWTN News.- As many as 3,000 Catholics of Hispanic background are expected in Texas this week for the National V Encuentro, ...

Church plans third-party abuse reporting system, code of conduct

WASHINGTON (CNS) -- Pledging to "heal and protect with every bit of the strength God provides us," the U.S. bishops' Administrative Committee Sept. 19 ...

Be grateful to parents, never insult them, pope says

VATICAN CITY (CNS) -- Honoring mothers and fathers means being grateful for the gift of life and Christians should never insult anyone's parents, Pope ...

Canadian cardinal: Women should help screen, train priest applicants

Poznan, Poland, Sep 18, 2018 CNA.- Increasing the role of women in screening and training priests is among the steps that should be taken to prevent future ...

Vatican delegation will travel to China this month to finalize agreement, Chinese newspaper reports

Beijing, China, Sep 18, 2018 CNA.- A newspaper tied to the Chinese Communist Party reported Tuesday that a delegation of Vatican officials will head to ...

Media reporting Vatican-China agreement could be signed in late September

HONG KONG (CNS) -- The long-awaited Sino-Vatican agreement on the nomination of bishops is expected to be signed in September, reported several media ...

Update: Irish singer Bono calls pope 'extraordinary man for extraordinary times'

VATICAN CITY (CNS) -- Bono, the lead singer of the Irish band U2, said he told Pope Francis that in Ireland "it looks as though the abusers are being ...