Denver Catholic

B8 I 2014 FINANCIAL REPORT DECEMBER 3, 2014 I DENVER CATHOLIC REGISTER Camp St. Malo Religious Retreat and Conference Center (St. Malo or the center) is located on 160 acres at the base of Mount Meeker, surrounded by the Roo- sevelt National Forest and Rocky Mountain National Park. St. Malo is a Colorado nonprofit corporation. As previously reported, a significant fire occurred at the center on Nov. 14, 2011 and since that date, St. Malo has been closed. Significant portions of the retreat and conference facilities, including the conference center, dining room and kitchen, related equipment, records and other assets were destroyed. While the historic St. Catherine Chapel on the grounds of St. Malo was not impacted by the fire, the guest lodging units were damaged extensively. In fiscal years 2011 and 2012, the remnants of the conference center, kitchen and dining room were removed from the property. In September of 2013, the center was impacted again from the significant rainstorms and flooding that oc- curred in northern Colorado. Specifically, a mudslide originating at Mount Meeker swept down the moun- tain and onto the center's property, causing significant damage to the natural terrain of the property. In the spring of 2014, the Colorado Department of Transpor- tation (CDOT) contributed significant in-kind services of approximately $488,000 for their work in remedi- ating some of the damage incurred by the mudslide. Such work was primarily focused on clearing timber, rocks and mud, stabilizing water run-off, including creek and pond drainage issues for Cabin Creek, which flows from Mount Meeker through the property and under the state highway located on the property. While the long-term impact to the property is unknown at this time, the estimated clean-up, remediation and res - toration efforts, even after the efforts of CDOT, will cost approximately $4.4 million to return the property to its condition prior to the mudslide. During fiscal 2013, management of St. Malo success- fully concluded negotiations with its insurance carri- er. For financial reporting purposes, this preliminary insurance settlement of $10.7 million was recorded in fiscal 2013 when it was received from the insurance carriers. When combined with other insurance recov- eries of approximately $400,000 ($300,000 for building content losses and $100,000 for clean-up efforts and related costs), St. Malo recorded $11.2 million in insur- ance reimbursements in 2013. During fiscal 2014, St. Malo received the in-kind con- tribution from CDOT previously mentioned and a grant of $100,000 from the United States Conference of Cath- olic Bishops (USCCB) which was restricted to assist in the clean-up and remediation efforts. Management of St. Malo utilized the USCCB funds and a portion of the insurance proceeds to engage outside professional firms to advise and assist in coordinating remediation efforts and in determining next steps for the property. In May of 2014, the board of directors of St. Malo approved a grant of $100,000 to the John Paul II Adventure Institute (JPII Institute), an independent apostolate in northern Colorado that provides outdoor education activities and camping experiences for both youth and young adults. While no long-term commitment was made to the JPII Institute, the board of directors of Camp St. Malo rec- ognizes the need and importance of providing such experiences to the youth of northern Colorado, especial - ly to the poor and needy. Interest earnings from the in- surance settlement was used to fund this grant. Management of St. Malo, with the assistance of the Archdiocese of Denver, continues to address various property issues as a result of the fire and mudslide and is evaluating various options as to the best utilization of the property going forward, including the propriety of renovating certain portions of the property. Howev- er, in light of the significant remediation costs to the property, the ongoing uncertainty regarding the sta- bility of Mount Meeker, the unknown impact of future water and sediment flows on the property, it has been determined that it is not prudent to rebuild a confer- ence center or youth camp on the St. Malo property. CAMP ST. MALO RELIGIOUS RETREAT AND CONFERENCE CENTER, INC. Statements of Financial Position As of June 30, Assets: Cash & cash equivalents Investments Property & equipment, net Total assets Liabilities & net assets: Accounts payable & accrued expenses Net assets: Unrestricted net assets Total liabilities & net assets 2013 $ 322,256 10,463,233 136,967 $ 10,922,456 $ 41,029 10,881,427 $ 10,922,456 2014 $ 158,346 10,492,027 100,429 $ 10,750,802 $ 15,593 10,735,209 $ 10,750,802 Statements of Activities YEARS ENDED JUNE 30, 2014 AND 2013 Revenue: Support revenues Investment income (loss) Total revenue, net Expenses: Administrative & other Gifts & grants Total expenses Operating loss before non-operating support & write-down of im- paired assets In-kind grants and other contributions Write down of impaired assets Insurance recoveries Increase (decrease) in net assets 2013 $ 3,200 (36,767) (33,567) 387,566 - 387,566 (421,133) 10,000 (660,000) 11,241,564 $ 10,170,431 2014 $ 24,377 188,794 213,171 847,489 100,000 947,489 (734,318) 588,100 - - $ (146,218) The Archdiocese of Denver Welfare Benefits Trust (Welfare Benefits Trust) provides access to quality health care to archdiocesan, parish and related ecclesiastical entities' employees along with the Diocese of Colora- do Springs and the employees of its parishes and relat- ed ecclesiastical entities. Effective July 2014, Catholic Charities and Community Services of the Archdiocese of Denver, Inc. (Catholic Charities) and its employees also joined the trust. Accordingly, more than 2,000 employ- ee participants now receive health-care benefits from the Welfare Benefits Trust. The Welfare Benefits Trust is partially self-insured and bears the financial losses on insurance claims up to certain limitations of acceptable risk. Traditional indemnity insurance products cover losses exceeding the fund's risk limitations. The Health Care Advisory Committee of the trust comprised of parish representatives and staff from both the Denver and Colorado Springs dioceses con- tinually evaluates the financial performance of the Welfare Benefits Trust, and is sensitive to the impact of rising medical rates on the various participating em- ployers and their employees. For fiscal 2014 and 2013 there were no increases in our medical and prescription premiums to the partici- pating employers and their employees. Unfortunately, the Welfare Benefits Trust has experienced unfavorable claims experience leading to a decrease in net assets of $1.6 million and $1.9 million in fiscal 2014 and 2013, respectively. In its evaluation of the renewal for the fis- cal 2015 plan year, the committee focused on the goals for the trust of operating under a balanced budget, to prudently manage the level of cash and investment re- serves of the trust, to preserve current employee ben- efit levels as much as possible, but be responsive and alert to upcoming changes required by the Patient Pro- tection and Affordable Care Act (PPACA) signed into law on March 23, 2010. Accordingly it was determined that a medical premium increase of 7 percent across all plans (medical, pharmacy, dental, vision and life insur- ance) was both prudent and appropriate for the fiscal year that commenced on July 1, 2014. ARCHDIOCESE OF DENVER WELFARE BENEFITS TRUST Statements of Financial Position As of June 30, Assets: Cash & short term investments Accounts receivable - other Investments Due from parishes & other related entities, net Total assets Liabilities & net assets: Accounts payable Deferred revenue Claims payable Total liabilities Net assets: Unrestricted Total liabilities & net assets 2013 5,810,425 187,464 7,957,550 213,776 $ 14,169,215 $ 147,086 - 2,022,000 2,169,086 12,000,129 $ 14,169,215 2014 4,498,731 149,216 8,101,052 239,302 $ 12,988,301 $ 154,222 186,667 2,258,000 2,598,889 10,389,412 $ 12,988,301 Statements of Activities YEARS ENDED JUNE 30, 2014 AND 2013 Revenue: Self insurance premiums & insurance Investment & other income (loss) Total revenue Expenses: Self insurance claims, premiums, costs Support & administrative expenses Total expenses Decrease in net assets 2013 $ 19,070,294 (28,857) 19,041,437 20,322,341 584,295 20,906,636 $ (1,865,199) 2014 $ 19,957,464 146,065 20,103,529 21,434,207 280,039 21,714,246 $ (1,610,717) The St. John Paul II Center, a Colorado nonprofit corpo- ration, is located at 1300 S. Steele St. and was established in 1996. The center provides Catholics with a gathering place for meetings, education, marriage preparation classes, liturgies and classroom instruction in Scripture and Church doctrine. In addition, the St. John Paul II Cen- ter houses the Archdiocese of Denver's Pastoral Center, the St. John Vianney Theological Seminary, the Redemp- toris Mater Archdiocesan Missionary Seminary, Our Lady of Mercy Convent, and the Cardinal Stafford Theological Library, which contains 150,000 volumes and is consid- ered the finest such theological resource between Chica- go and Los Angeles, and the Holy Trinity Center. Statements of Financial Position As of June 30, Assets Property & equipment, net Liabilities & net assets: Liabilities Unrestricted net assets Total liabilities & net assets 2013 $ 2,441,473 $ - 2,441,473 $ 2,441,473 2014 $ 2,428,703 $ - 2,428,703 $ 2,428,703 Statements of Activities YEARS ENDED JUNE 30, 2014 AND 2013 Revenue: Grants & contributions Total revenue Expenses: Program expenses - depreciation Decrease in net assets 2013 $ - - 12,770 $ (12,770) 2014 $ - - 12,770 $ (12,770) THE ST. JOHN PAUL II CENTER FOR THE NEW EVANGELIZATION

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