The Word of God Is Not Chained
I am pleased to present an overview of the finances for fiscal year 2010. I hope you will agree the report reflects fiscal responsibility on the part of myself and my staff as well as the generosity of the Catholics of our diocese in northcentral Indiana, a generosity rooted in faith and an understanding of what it means to be a Local Church.
Figures and graphs are drawn from the most recent audit of Central Administration. 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 in place. With not-for-profit organizations, accounting standards require that revenue such as Fruitful Harvest which is pledged during a fund raising campaign be recognized in the year pledges are made. Because of this and the campaign cycle, the audited reports show more revenue during even numbered years than in the odd numbered years.
Audit returns show a surplus of $5,050,919 in 2010 after a deficit of $116,049 restated for 2009. This fluctuation shows the nature of the Fruitful Harvest campaign solicitation which is conducted in each even numbered year. Since the solicitation is not conducted in the odd number years the increase in contributions is precipitous from $486,000 to $7,571,696 as shown on the first line of the Statement of Activities. This 2010 surplus is mainly the result of pledges of contributions to Fruitful Harvest which were received from donors during the year ended 12/31/10. All donor support is reported as an increase in temporarily or permanently restricted net assets. When a donor restriction expires, that is when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statement of Activities as net assets released from restrictions. I am assured by my Finance Council that the Central Administration operates with budgetary restraint.
Accountable reporting is an important part of our stewardship responsibilities. Each year the Diocese subjects itself to the scrutiny of an independent audit. The Carmel firm of Blue & Co. LLC, performed the audit for the 2009 and 2010 fiscal years. 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, meets regularly to review budgets, as well as the financial policies and procedures of the Catholic Diocese of Lafayette-in-Indiana. Current members are:
Mr. Leon Cyr, Sacred Heart Parish/Fowler
Mr. Leo Dierckman, Our Lady of Mt. Carmel Parish/Carmel
Mr. Donald E. Goetz, St. Cecilia Parish/DeMotte
Ms. Lynn Layden, Lafayette
Mr. Edward Lopke, St. Patrick Parish/Kokomo
Ms. Marianne McLean, St. Maria Goretti Parish/Westfield
Mr. Thomas Parent, Diocesan Attorney, St. Mary Cathedral Parish/Lafayette
Ms. Mary Piantek, Saint Thomas Aquinas Parish/West Lafayette
Mr. Lee H. Snider, St. Mary Parish/Muncie
Reverend Monsignor Robert L. Sell, III, V.G.
Mr. Robert H. Quinn, Diocesan Finance Officer
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 has met and the fact that the Council has reviewed the audited financial statements of the Bishop’s Office (Central Administration). The Diocese of Lafayette has complied with that resolution.
Your support of the Church at the Diocesan level demonstrates an understanding of the tripartite structure of the Church: Parish, Diocese, and the Universal Church. In addition, you have responded most generously to the special collections on behalf of our seminarians. This commitment is a source of ongoing inspiration to me and to all of us who serve you in the fellowship of Christ, especially during these challenging economic times.
The figures and graphs before you illustrate that the Catholics of our diocese in northcentral Indiana continue to be most generous. I am deeply grateful. As our Diocesan Mission Statement proclaims, my goal and the goal of my staff is that we be a people gathered by the Holy Spirit who demonstrate commitment to responsible stewardship.
In Christ’s peace,
Most Rev. Timothy L. Doherty, STL, PhD
Bishop of Lafayette-in-Indiana