Denver Catholic

2014 FINANCIAL REPORT I B5 DENVER CATHOLIC REGISTER I DECEMBER 3, 2014 2013 2,750,336 229,000 356,051 3,335,387 2,028,065 1,410,622 422,390 3,861,077 (525,690) 217,464 106,510 3,918 (122,486) 205,406 (320,284) Activist for four exempla- President's senior Steinmark students classroom their com- students the beau- faith with while also growing broth- The Archdiocese of Denver Catholic Schools compris- es the largest private school system in Colorado. Locat- ed in 18 cities in northern Colorado, 37 parish schools and two high schools educated 9,300 students during the school year ended in June 2014. The majority of Catholic school revenue comes from the sacrifice fam- ilies make to pay tuition, and while this is a generous investment, it is not sufficient to cover the salaries and related benefit costs of our faculty and staff. According- ly, these schools also rely on fundraising, parish support and philanthropy to survive financially. In contrast, the majority of revenue for public schools comes from taxpayers, whether they are users of the services or not. For the 2013-2014 school year, Catholic schools and re- lated educational ministry programs of the archdiocese received more than $5.9 million in grants and other support through The Catholic School Assistance Fund (CSAF) into which each parish contributes, Seeds of Hope Charitable Trust, The Catholic Foundation and the Archbishop's Catholic Appeal. The financial help of each of these entities allows Catholic education to be made available to as many families as possible. GRANT AND OTHER FUNDING TO CATHOLIC SCHOOLS AND EDUCATION MINISTRY PROGRAMS YEARS ENDED JUNE 30 To learn more about the Archdiocese of Denver Catholic Schools, please visit our website at www.archden.org/schools/office-catholic-schools 2014 (Actual) $ 560,285 616,000 1,323,693 3,469,000 $ 5,968,978 2015 (Projected) $ 623,500 620,000 1,348,500 3,775,000 $ 6,367,000 Funding Sources Archdiocese of Denver The Catholic Foundation Seeds of Hope Catholic Schools Assistance Fund Total 2013 (Actual) $ 598,631 665,000 1,402,125 3,379,600 $ 6,045,356 SEEDS OF HOPE CHARITABLE TRUST The mission of Seeds of Hope Charitable Trust (Seeds of Hope) is to make the tremendous benefits of a Cath- olic education available to economically disadvantaged children. Since its inception in 1996, Seeds of Hope has served more than 15,000 students with nearly $25 million in assistance. The students served have grown into suc- cessful high school students and college graduates, as well as flourishing members of the surrounding communities. Through its tuition assistance programs, Seeds of Hope primarily supports the Catholic elementary schools that serve low-income, high-risk populations. Seeds of Hope focused on five Schools in Urban Neighborhoods (S.U.N.) and six Focus Schools, primarily in inner-city Denver during the 2013-2014 school year. During the year ended June 30, 2014, Seeds of Hope provided more than $1.3 million of assistance to nearly 950 students. In fiscal 2014, Seeds of Hope's net assets increased by approximately $796,383 as compared to an increase in net assets of $533,004 in fiscal 2013. This change is pri- marily attributable to an increase in investment returns in 2014 as compared to 2013. Seeds of Hope is fortunate to maintain various en- dowment funds, providing long-term stability for the organization and the schools served, totaling $8.4 mil- lion as of June 30, 2014. To maintain the organization's financial security, the annual spending restrictions of the endowment funds limit the amount of grant awards that can be made in any given year. Endowment earn- ings provide the majority of operational expenses, there- by allocating donor dollars directly to students in need. Operation expenses consistently run well above the in- dustry benchmark of 75 percent. Three events raise es- sential funds to provide needed tuition assistance on an annual basis. The Adopt-A-Student Program is also very popular, allowing donors to interact with their students through letters, reports and a personal meeting. Please visit www.seedsofhopedenver.org for more information. Statements of Financial Position As of June 30, Assets: Cash & cash equivalents Parish assessments receivable, net Contributions receivable Investments Other assets, net Total assets Liabilities & net assets: Accounts payable & accruals Grants payable Total liabilities Net assets: Unrestricted Temporarily restricted Permanently restricted Total net assets Total liabilities & net assets 2013 $ 1,679,312 48,935 280,024 7,901,804 5,107 $ 9,915,182 $ 29,288 - 29,288 1,513,578 679,994 7,692,322 9,885,894 $ 9,915,182 2014 $ 2,077,643 40,608 273,222 8,370,293 5,005 $ 10,766,771 $ 34,494 50,000 84,494 1,995,571 644,215 8,042,491 10,682,277 $ 10,766,771 Statements of Activities YEARS ENDED JUNE 30, 2014 AND 2013 Support and revenue: Gifts and grants, net Special events, net Parish assessments Total support & revenue Expenses Grants to schools and students Grant making expenses Total program expenses Supporting services Management and general Development and fundraising Total supporting services Total expenses Loss from operations before investment return Investment income, net Increase in net assets 2013 $ 811,339 556,697 260,840 1,628,876 1,402,125 79,089 1,481,214 141,415 173,621 315,036 1,796,250 (167,374) 700,378 $ 533,004 2014 $ 894,474 420,153 260,957 1,575,584 1,323,693 132,397 1,456,090 130,284 201,140 331,424 1,787,514 (211,930) 1,008,313 $ 796,383 The Archdiocese of Denver Mortuary (the mortuary), located on the grounds of Mount Olivet Cemetery, is a Colorado nonprofit corporation committed to serving the Church as a symbol of the community of faith un- broken by death. The mortuary was established 1981 to ensure that proper dignity would be provided to the be- loved dead and their grieving families and to offer funeral services at affordable costs to the Catholic community, especially the poor. During fiscal 2014 and 2013, the mortuary provided funeral services to 592 and 598 families, respectively. In- cluded in these numbers are services to the county So- cial Services offices for 81 cases in 2014 and 97 cases in 2013. Accordingly, the mortuary contributed more than $269,570 in care services to the poor and their families in 2014. In addition, preneed mortuary service contracts for future funeral services, totaling 434 and 303, were contracted for in 2014 and 2013 respectively. Income from operations during fiscal 2014 of $45,888 was generally consistent with the results in 2013. How- ever, when combined with an increase in investment income of more than $800,000 from 2013, the mortu- ary realized a significant increase in net assets as com- pared to 2013. Operations were also favorably impacted by an increase in mortuary sales, primarily from sales of preneed service contracts. In addition, the mortuary's board continued its long-standing tradition of fund- ing other ministry programs in the archdiocese when it approved respective grants of $113,000 and $87,000 to St. John Vianney and Redemptoris Mater seminaries in fis- cal 2014 as compared to respective grants of $81,000 and $119,000 in fiscal 2013. During fiscal 2014, the mortuary invested approxi- mately $370,000 in new hearses and limousines to en- hance its customer service. Statements of Financial Position As of June 30, Assets: Cash & cash equivalents Accounts receivable, net Prepaid expenses & other Restricted investments Property & equipment, net Total assets Liabilities & net assets: Accounts payable & accrued liabilities Pre-need trust Total liabilities Net assets: Unrestricted Temporarily Restricted Total Net Assets Total liabilities & net assets 2013 $ 1,361,401 1,287,865 81,335 18,224,186 59,663 $ 21,014,450 $ 183,442 10,495,238 10,678,680 10,335,554 216 10,335,770 $ 21,014,450 2014 $ 1,629,876 1,505,201 83,668 20,953,931 380,561 $ 24,553,237 $ 199,456 11,319,172 11,518,628 13,034,609 - 13,034,609 $ 24,553,237 Statements of Activities YEARS ENDED JUNE 30, 2014 AND 2013 Support & revenue: Mortuary sales Miscellaneous Total support & revenue Expenses: Mortuary operating expenses Gifts & grants Support & administrative expenses Total expenses Income from operations before investment return Investment income, net Increase in net assets 2013 $ 2,866,995 3,124 2,870,119 2,142,832 200,000 486,333 2,829,165 40,954 1,819,893 $ 1,860,847 2014 $ 3,060,567 13,968 3,074,535 2,371,623 201,800 455,224 3,028,647 45,888 2,652,951 $ 2,698,839 ARCHDIOCESE OF DENVER MORTUARY AT MOUNT OLIVET INC. MORTUARY AND CEMETERIES GLOSSARY OF TERMS Claims payable. Claims payable represent an estimated aggregate liability based upon actual healthcare claims data and estimates of claims incurred but not yet reported for the Welfare Benefit Trust. In addition, the Risk Management Trust also records and estimates settlement obligations, claims incurred but not reported and related claims-adjustment expenses. The methods for making such estimates and for establishing the resulting liability are continually reviewed, and any adjustments are reflected in the change in net assets in the period in which the estimates are changed. Depreciation. The systematic and rational allocation of the cost of an asset over its anticipated useful life. Investments and investment income. Investments represents the deposits of excess cash funds into long-term certificates of deposit and/or the purchase of marketable equity and fixed income securities. Such investments are recorded at their fair value. Investment income consists of the respective en- tity's earnings from interest and dividends, the realized gains or losses from sales of such securities, and the change in the fair value of the underlying investments from period to period. Endowment. Funds or property donated as a permanent source of income. Generally, only the income produced from the endowment principal is avail- able for expenditure. Funds held in trust for others. Amounts temporarily in the possession of an entity but which are being held for the benefit of, and ultimate distribution to, another. Funds are held in trust as an asset on the Statements of Financial Position as cash or because they may be temporarily invested pending final distribution as investments. To reflect the fact that funds held in trust are not the property of the entity, and are in fact owed to others, an offsetting liabil- ity also appears on the Statements of Financial Position. Examples of funds held in trust include second collections taken on behalf of other organizations and preneed funeral plan payments. Inventories. Assets held for eventual resale to others primarily for gravesites, urns and caskets at the cemeteries and mortuary. Net assets. The net assets of an organization, computed by subtracting liabilities from assets. Net assets are categorized by type, for example, "unre- stricted" or "temporarily restricted." Parish assessments. In accordance with canon law, parishes within the terri- tory of the archdiocese contribute to the mission of the local Church through the parish assessment. Parishes pay a percentage of their assessable income, as defined—from a low of 5.26 percent to a high of 7.67 percent—depending on various conditions of the parish. Permanent restrictions. A donor-imposed restriction that stipulates that resources be maintained permanently but permits the archdiocese or the related ecclesiastical entity to expend part or all of the income derived from the donated assets. Statements of activities. Reports the amount of change in net assets for a period of time. Revenues, expenses, gains and losses increase or decrease net assets. Other events, such as expiration of donor-imposed restrictions, that simultaneously increase one class of net assets and decrease another are reported as separate items. Statements of Financial Position. Reflects the assets, liabilities and net assets of an entity at a particular point in time. Temporary restrictions. A donor-imposed restriction that permits the arch - diocese to use up or expend the donated assets as specified and is satisfied either by the passage of time or by actions of the archdiocese. Unrestricted. Support and revenue that has no donor restriction as to use or purpose.

• Cover