Denver Catholic

B2 I 2014 FINANCIAL REPORT DECEMBER 3, 2014 I DENVER CATHOLIC REGISTER curia from April of 2005 through May of 2014. Msgr. Fryar served both Archbishop Chaput and I in run- ning the day-to-day operations of the Pastoral Center during this period. In June of 2014 he was appoint- ed as the pastor of our largest parish community, St. Thomas More Parish. Simply put, Msgr. Fryar's devo- tion and administration of the Pastoral Center, along with his pastoral responsibilities at the Cathedral Ba- silica of the Immaculate Conception during the past eight years, were extraordinary and his accomplish- ments were significant. The Holy Spirit should be our guide in everything we do—in education, in charity for the poor and those suffering from political and economic hard- ship, and in our outreach to those on the margins of society. When we listen to the Holy Spirit we are able to grow in deeper love with Christ and intimacy with the Father. Our challenge is to use the gifts God has given us for his praise and glory and, in doing so, help the Archdiocese of Denver become a place filled with intentional disciples who stand together on the frontlines of the new evangelization. May God richly bless you throughout the Advent season and the coming year! Most Reverend Samuel J. Aquila, S. T. L. Archbishop of Denver The Archdiocese of Denver is a Colorado nonprof- it corporation, located on the campus of the St. John Paul II Center for the New Evangelization in south Denver. The Pastoral Center is composed of the of- fices of the archbishop, vicars, directors and others who collaborate in the administration and oversight of more than 30 archdiocesan offices and ministry programs. The Archbishop's Catholic Appeal (ACA) cam- paign's fiscal 2014 donations decreased slightly from fiscal 2013 as the campaign started approximately four weeks later than the prior year. We anticipate that the current ACA campaign will ultimately exceed last year's results when it concludes later this year. Parish assessments increased modestly for the third year in a row due to an overall increase in parish of - fertories throughout northern Colorado. In 2014, grants and contributions decreased by more than $5.8 million from the 2013 results. This decrease is due to the non-recurrence of a $5.8 million perma- nently restricted gift from a charitable trust to the arch- diocese in 2013. As discussed last year, the beneficial purpose of this charitable trust allows the funds to be used solely for the maintenance and critical needs of the Cathedral Basilica of the Immaculate Conception Parish. During 2013 the archdiocese commenced a capital campaign in May to raise restricted funds for the construction of the Holy Trinity Center on the St. John Paul II Center campus. During fiscal 2014, $1.3 million in additional pledge commitments, along with cash receipts, were received in conjunction with this campaign as compared to $1.2 million in 2013. In fiscal 2014, program and service income de- creased almost $1 million from 2013 due to the occur- rence of two Steubenville of the Rockies conferences in 2013 as compared to no conferences in 2014. In addi- tion, investment income increased by $500,000 in 2014 from the comparable amount in 2013 due to the per- formance of financial markets throughout fiscal 2014. Program costs for religious education decreased by $688,000 as a result of no Steubenville conferences being held in 2014. In 2014, gifts and grants increased by more than $800,000 from 2013 due to increased funding for the seminaries and special grants of ap- proximately $200,000 made to parishes that were significantly impacted by the mudslides and flood- ing that occurred during September 2013. Generally, all other program expense categories in fiscal 2014 increased from comparable balances in fiscal 2013 due to modest pay increases for staff. Statements of Financial Position As of June 30, Assets: Cash & cash equivalents Short-term investments for designated purposes Total cash & investments Prepaid expenses & other assets Notes, contributions & accounts receivable, net Due from parishes & other related entities, net Investments Benefical interest in charitable trust Property & equipment, net Total assets Liabilities & net assets: Accounts payable & accrued expenses Funds held in trust for others Other liabilities Notes & bonds payable Total liabilities Net assets: Unrestricted Temporarily restricted Permanently restricted Total net assets Total liabilities & net assets 2013 $ 8,846,211 6,719,446 15,565,657 90,057 5,410,179 694,650 15,911,344 5,787,790 29,747,272 $ 73,206,949 $ 1,524,703 1,122,408 291,774 1,853,008 4,791,893 51,043,017 12,117,318 5,254,721 68,415,056 $ 73,206,949 2014 $ 8,706,973 4,033,220 12,740,193 100,309 5,078,470 669,531 19,387,603 6,077,121 30,657,853 $ 74,711,080 $ 1,348,785 1,370,114 495,311 1,016,193 4,230,403 53,315,255 11,910,701 5,254,721 70,480,677 $ 74,711,080 Statements of Activities YEARS ENDED JUNE 30, 2014 AND 2013 Support & revenue: Support: Archbishop's Catholic Appeal contributions, net Parish assessments, net Grants & contributions Other support Total support Revenue: Advertising Program & service, net Other income Total revenue Total support & revenue Expenses: Program expenses: Religious education & schools Catholic communications Social development Spiritual & pastoral concerns Religious & ordained ministries Evangelization Gifts & grants Interest expense Total program expenses Support & administrative expenses Development & fundraising Total expenses Income from operations before investment return Investment income, net Increase in net assets 2013 $ 7,291,225 6,347,449 8,574,274 165,967 22,378,915 731,559 2,190,776 615,504 3,537,839 25,916,754 2,640,408 2,653,666 1,054,728 2,258,067 2,111,629 2,580,270 2,704,499 70,009 16,073,326 1,823,684 867,823 18,764,833 7,151,921 1,526,900 $ 8,678,871 2014 $ 7,236,677 6,565,130 2,810,402 178,807 16,791,016 746,119 1,180,658 561,920 2,488,697 19,279,713 1,952,314 2,671,760 640,174 2,453,881 2,376,769 2,751,353 3,554,803 57,188 16,458,242 1,836,234 965,189 19,259,665 20,048 2,045,573 $ 2,065,621 ARCHDIOCESE OF DENVER – PASTORAL CENTER Canon law requires every diocese to have a finance council to advise the archbishop. In the Archdiocese of Denver, the Archdiocesan Finance Council (AFC) func- tions in accordance with a written charter to advise Arch- bishop Samuel J. Aquila. The AFC provides policy guidance for the work of sub- committees. Currently, 14 individuals serve on the AFC, including 13 lay people. In addition, 22 lay, clergy and re- ligious leaders serve on its various subcommittees. The AFC meets at least quarterly and functions as an adviso- ry board to the archbishop. Its duties include reviewing the financial and operational performance of the arch- diocese and all public juridic persons established by canon law and the archbishop. Such review is conducted through a series of reports submitted by the committees that are intended to advise the archbishop on significant financial matters. Council members represent a broad cross section of Catholic business executives from small, medium and large-sized companies of northern Colorado. Profession- als practicing in the fields of law, accounting, investment and real estate management are also members. Most serve or have served on their respective parish councils, Cath- olic agencies or other nonprofit boards of directors. The archdiocese also has a governing body of priests, which serves as the archbishop's College of Consultors, which provides advice and guidance on the finances of the arch - diocese. The work of the five subcommittees of the AFC is an important element in developing and fine-tuning the strategy used to address the various resource issues con- fronting the archdiocese. Each committee chairperson is a member of the AFC and provides quarterly updates on their respective committee's activities to the council. While these five subcommittees are the primary advi- sory bodies to the AFC, the work and service provided by the members of the Irrevocable Revolving Fund Trust Management Committee, the Building Committee, the Health and Welfare Benefits Trust Committee, the Priest Retirement Committee and the Lay Pension Plan Committee are also integral to the ongoing stewardship efforts of the archdiocese. ARCHDIOCESAN FINANCE COUNCIL AND ITS SUBCOMMITTEES INTRODUCTION The financial statements contained in this report have been summarized and condensed from financial statements prepared in accordance with generally ac- cepted accounting principles. The following overview is an accounting of the archdiocese's stewardship. The accompanying presentation encompasses the 17 nonprofit corporations or charitable trusts within the territory of the archdiocese. These nonprofit corpora - tions and trusts are governed by separate boards and trustees. Catholic Charities and Community Services of the Archdiocese of Denver, Inc. (Catholic Charities) publishes its annual financial report separately. To learn more about Catholic Charities, please visit their website at www.ccdenver.org. The assets of these ecclesiastical entities are held in their respective names and are not commingled with those of any other entity. Letter From Page B1 FINANCE COUNCIL Lowell A. Hare, chairman Very Reverend Randy Dollins Wendy Dominguez Greg Gerken Reid Godbolt James S. Harrington David A. Holden Kevin Kuhn Kathy Lutito Dave Runberg Jeff Schmitz Jodi Thomas William G. Trainor Eric Zellweger, CFA INVESTMENT COMMITTEE Eric Zellweger, CFA, chairman Mick Bleyle, CFA Charles Dahlman Very Reverend Randy Dollins Larry Luchini, CFA Kathleen Duggan Marvin, CFA Brian Rorick, CPA ACCOUNTING & AUDIT COMMITTEE William G. Trainor, CPA, chairman Very Reverend Randy Dollins Brian Callahan, CPA Heath Hill, CPA Kelly Kozeliski, CPA Andrew Newland Keith Parsons, CPA Jeff Smith, CPA PROJECT FINANCE & REVIEW COMMITTEE James S. Harrington, chairman George Connolly Peter Furstenberg Rev. Frank Maroney Sam N. Perry Jennifer Reicher George Shaw Mike Wisneski Robert Zarlengo REAL ESTATE COMMITTEE Gregory Gerken, chairman Adam Hermanson Msgr. Leo Horrigan Paul Kluck Kevin McCabe Edward Blieszner COMPENSATION COMMITTEE Reid Godbolt, chairman Very Reverend Randy Dollins Lowell Hare Dave Runberg

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