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A report to
the people of the Local Church
PRAISED BE JESUS
CHRIST!
(Now and Forever)
I am pleased once again to present an overview of the finances for
fiscal years 2004 and 2003. Figures are published annually so the
Catholics of Northcentral Indiana may know the state of the finances of
the Central Administration and have an indication of the financial
situation of our parishes in total. It is a reflection of the generosity
of the Catholics of Northcentral Indiana, generosity that reflects faith
and an understanding of what it means to be a Local Church.
The figures and graphs presented are drawn from the audit of Central
Administration conducted by Katz, Sapper & Miller, an Indianapolis-based
accounting firm. As in the past, an “unqualified” opinion was received.
To achieve an “unqualified” opinion, financial accounting standards must
be met and commonly accepted internal controls must be observed. The
2004 results are reported in comparison to the 2003 audited results
since our main source of funding, Fruitful Harvest, is a two-year
campaign. This two-year presentation will be rolled forward next year.
With not-for-profit organizations, accounting standards require that
revenue pledged during fund-raising campaigns be recognized in the year
pledges are made. Because of this, the audit report will show more
revenue during even-numbered years than in the odd-numbered years.
Although our financial performance shows a surplus of $1.2 million for
2004, that figure needs to be balanced against a loss of $4.2 million in
2003. These numbers are unusually skewed because of monies collected and
expended through the Caring for the Future campaign for the priests’
retirement plan and the redemption of pledges for the construction of
Blessed Theodore Guerin High School. The bottom line is that in 2004,
Central Administration operated with budgetary restraint. Also, after
several years of slow income growth and dramatic increases in health
insurance premiums, parish income rose 13 percent to exceed $50 million
for the first time.
As shown by our recent pulpit appeal for the Vocations Department, our
operational budgets are strained by years of tight controls on spending.
Our department budgets seldom increase except for areas which are not
reasonably within our control, such as health insurance, property
insurance, Vatican and Third World obligations, etc. Please note that
“operations” for this purpose are defined as the combined activities of
the Bishop’s Office and managed property of the diocese, exclusive of
the Catholic Foundation of Northcentral Indiana. Although there have
been increases in the Fruitful Harvest goal, there also have been
decreases in investment income. Those two categories will closely offset
each other, so net income for the Central Administration has been
relatively static for the last five years. Hence, the struggle with
increases in expenses needed to operate.
Our focus on the bishops’ Charter about sexual abuse continues. I wish
to report to you that in 2004, the diocese spent a total of $17,299 for
victims and priests. For counseling of priests, $9,091 was expended; for
victims’ expenses, we spent $8,208. Our estimate of expenditures for
child protection workshops, background checks, etc., is $57,355 for all
parishes and offices.
Accountability is an important part of our stewardship responsibilities.
Each year, the diocese subjects itself to the scrutiny of an independent
audit. The audited financial statements are available for inspection
through the Pastoral Office for Administration. I have established and
regularly confer with the Diocesan Finance Council. The council, whose
existence is required by canon law, focuses on financial policies,
procedures and activities of the Church in Northcentral Indiana. Current
members are: Msgr. Robert L. Sell III, V.G.; Robert H. Quinn, diocesan
finance officer; Leon Cyr, Sacred Heart Parish, Fowler; Leo Dierckman,
Our Lady of Mt. Carmel Parish, Carmel; Donald E. Goetz, St. Cecilia
Parish, DeMotte; Lynn Layden, Lafayette; Edward Lopke, St. Patrick
Parish, Kokomo; Marianne McLean, St. Maria Goretti Parish, Westfield;
Thomas Parent, diocesan attorney, St. Mary Parish, Lafayette; and Lee H.
Snider, St. Mary Parish, Muncie.
At their meeting in November 2000, the bishops of the United States
unanimously approved a resolution regarding diocesan financial
reporting. They directed that at the end of each fiscal year, each
bishop report to the metropolitan archbishop the names and professional
titles of members of his diocesan finance council, the dates on which
that finance council met and a statement signed by the finance council
members and the diocesan finance officer stating that they have reviewed
and discussed the audited financial statements of the diocese. The
Diocese of Lafayette has complied with that resolution.
The figures and graphs illustrate that the Catholics of Northcentral
Indiana have been most generous. That generosity makes it possible for
us to fulfill the basic responsibilities expected of every diocesan
Church. I am most grateful. As our mission statement proclaims, we are a
people gathered by the Holy Spirit who demonstrate commitment to
responsible stewardship.
With my best wishes, I am
Sincerely yours,
William L. Higi
Bishop of Lafayette-in-Indiana |
