State of the Archdiocese March 2, 2006


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State of the Archdiocese March 2, 2006

  1. 1. State of the Archdiocese March 2, 2006
  2. 2. State of the Archdiocese <ul><li>“By the Numbers”—selected high-lights of interesting archdiocesan financial oddities </li></ul><ul><li>Financial Overview—a brief orientation to archdiocesan finances </li></ul><ul><li>Financial Priorities </li></ul><ul><li>2006-07 Budget </li></ul>
  3. 3. Archdiocese of Indianapolis “By the Numbers” <ul><li>ONE: </li></ul><ul><ul><li>The number of years since the mid- 1990s that the archdiocese has achieved a break-even or better budget (2004-05) </li></ul></ul><ul><ul><li>Also, the number of times an employee is allowed to misspell Archbishop Buechlein’s name and still retain his/her job (1997 agency directors’ budget meeting) </li></ul></ul>
  4. 4. Archdiocese of Indianapolis “By the Numbers” <ul><li>TWO: </li></ul><ul><ul><li>The number of tax-exempt bond issues that the archdiocese has completed to pay for school and Catholic Charities agency construction and renovation projects </li></ul></ul><ul><ul><ul><li>1996 for $38 million </li></ul></ul></ul><ul><ul><ul><li>2003 for $20 million </li></ul></ul></ul><ul><ul><li>Currently in the process of refinancing the 1996 bond issue at lower interest rates, which should save approximately $130,000/year in interest expense </li></ul></ul>
  5. 5. Archdiocese of Indianapolis “By the Numbers” <ul><li>THREE: </li></ul><ul><ul><li>The number of thousands of covered lives in the archdiocesan healthcare plan </li></ul></ul><ul><ul><ul><li>Healthcare costs continue to grow at a rate of 3-4 times inflation and the revenue growth of the archdiocese </li></ul></ul></ul><ul><ul><ul><li>Some estimates indicate that the healthcare system will “implode” in approximately 5 years without significant changes </li></ul></ul></ul><ul><ul><ul><li>More than 44 million Americans are now uninsured </li></ul></ul></ul><ul><ul><ul><li>Our goal is to continue to provide strong healthcare benefits at a reasonable cost for employees, parishes, schools and the archdiocese </li></ul></ul></ul>
  6. 6. Archdiocese of Indianapolis “By the Numbers” <ul><li>FOUR: </li></ul><ul><ul><li>The number of millions of dollars the 16 center-city parishes and their elementary schools had accumulated in operating debt as of June 30, 2005 </li></ul></ul><ul><ul><ul><li>This debt repayment will be supported over the next five years through Home Mission Grants made possible by the generosity of parishes and their parishioners throughout the archdiocese </li></ul></ul></ul><ul><ul><li>Also, the number of Certified Public Accountants on staff in the accounting office at the Catholic Center </li></ul></ul>
  7. 7. Archdiocese of Indianapolis “By the Numbers” <ul><li>FIVE: </li></ul><ul><ul><li>The number of thousands of people paid through the archdiocesan payroll system each month </li></ul></ul><ul><ul><li>Also, the number of people on the archbishop’s 11-member management council that enjoy periodic vacation trips to Las Vegas </li></ul></ul><ul><ul><li>Notably, with Bill Bruns upcoming retirement, these statistics are heading in opposite directions </li></ul></ul>
  8. 8. Archdiocese of Indianapolis “By the Numbers” <ul><li>SIX: </li></ul><ul><ul><li>The number of millions of dollars raised through the annual Called to Serve/United Catholic Appeal to assist those in need through parish, school and Catholic Charities agency ministries </li></ul></ul><ul><ul><ul><li>The appeal’s goal has grown to $5.7 million from a goal of $4.9 million in 2000, a 3.25% annual growth rate through difficult economic times </li></ul></ul></ul>
  9. 9. Archdiocese of Indianapolis “By the Numbers” <ul><li>SEVEN: </li></ul><ul><ul><li>The number of days/week Jeff works just to keep Msgr. Schaedel out of trouble </li></ul></ul>
  10. 10. Financial Overview <ul><li>The reality: </li></ul><ul><ul><li>70% of U.S. students receive less than one week of course work in money management or personal finance </li></ul></ul>
  11. 11. Financial Overview <ul><li>Total budget: </li></ul><ul><ul><li>Archdiocesan agencies: $60 million </li></ul></ul><ul><ul><li>Parishes & schools: $165 million </li></ul></ul><ul><ul><li>Less: eliminations: ($20) million </li></ul></ul><ul><ul><ul><li>Total: $205 million </li></ul></ul></ul><ul><li>Parish Sunday collections are approximately $60 million, and parishes are assessed 10% of Sunday Collections to support archdiocesan operations </li></ul>
  12. 12. Financial Overview <ul><li>Operating revenues: </li></ul><ul><ul><li>Parish assessments: $8.6 million </li></ul></ul><ul><ul><li>Contributions & UCA: 15.7 million </li></ul></ul><ul><ul><li>Fees, sales & events: 8.1 million </li></ul></ul><ul><ul><li>Grants: 4.3 million </li></ul></ul><ul><ul><li>Investment income: 3.0 million </li></ul></ul><ul><ul><ul><li>Total: $39.7 million </li></ul></ul></ul>
  13. 13. Financial Overview <ul><li>Operating expenses: </li></ul><ul><ul><li>Salaries: $13.9 million </li></ul></ul><ul><ul><li>Employee benefits: 3.9 million </li></ul></ul><ul><ul><li>Priest healthcare & retirement: 1.7 million </li></ul></ul><ul><ul><li>Facilities: 3.3 million </li></ul></ul><ul><ul><li>Interest expense: 2.4 million </li></ul></ul><ul><ul><li>Professional services: 3.9 million </li></ul></ul><ul><ul><li>Ministry, administration, other: 6.5 million </li></ul></ul><ul><ul><li>Contributions (inc. op. deficits): 3.9 million </li></ul></ul><ul><ul><ul><li>Total: $39.5 million </li></ul></ul></ul>
  14. 14. Financial Overview <ul><li>The archdiocese coordinates employee benefit and risk management plans for the 150 parishes and 70 schools of the archdiocese: </li></ul><ul><ul><li>Healthcare ($13 million) </li></ul></ul><ul><ul><li>Retirement ($4 million) </li></ul></ul><ul><ul><li>Property insurance ($4 million) </li></ul></ul>
  15. 15. Financial Overview <ul><li>The Catholic Community Foundation now manages 313 endowment funds valued at $129 million for the parishes, schools and agencies of the archdiocese </li></ul><ul><ul><li>2004-05 distributions = $4.8 million in support of ministries </li></ul></ul><ul><ul><li>9.4% investment return since inception of current investment structure on 1/1/1995 </li></ul></ul>
  16. 16. Financial Priorities <ul><li>Stabilize existing operations through endowment growth </li></ul><ul><ul><li>Schools </li></ul></ul><ul><ul><li>Home mission parishes </li></ul></ul><ul><ul><li>Charities agencies </li></ul></ul><ul><li>Legacy for Our Mission is expected to grow endowments by a minimum of $25 million </li></ul>
  17. 17. Financial Priorities <ul><li>Recover approximately $10 million spent through deficit budgets from the mid 1990’s through 2004 </li></ul><ul><ul><li>Undesignated bequests </li></ul></ul><ul><ul><li>Positive budgets (target is $200,000-$500,000 per year) </li></ul></ul>
  18. 18. Financial Priorities <ul><li>Maintain strong employee benefit plans while addressing costs </li></ul><ul><ul><li>Likely to see significant changes in healthcare in 2007 </li></ul></ul><ul><ul><li>Increased education and improved investment options in 403(b) plan </li></ul></ul>
  19. 19. Financial Priorities <ul><li>Develop long-term facility plans for parishes, schools and agencies </li></ul><ul><ul><li>Evaluation of facility needs to support ministries </li></ul></ul><ul><ul><li>Evaluation of existing facilities and development of planned maintenance schedules and funding sources </li></ul></ul><ul><ul><li>On-going annual preventative maintenance schedules & incorporation into operating budgets </li></ul></ul>
  20. 20. 2006-07 Budget <ul><li>Current projects are break-even </li></ul><ul><li>We’re optimistic we can improve to $200,000 positive </li></ul><ul><ul><li>No room to increase expenses beyond salary increases </li></ul></ul><ul><li>Budget materials distributed this week to budget coordinators </li></ul><ul><ul><li>Use & return electronically the stewardship spreadsheet provided </li></ul></ul><ul><ul><li>Return 1 st drafts by March 22 </li></ul></ul>