Wednesday, January 23, 2013

Facing their own “Fiscal Cliff”: Boston Archdiocese released the 2012 Annual Report

With almost no fanfare, the Boston Archdiocese released the 2012 Annual Report on Friday. This stands in contrast to last year, when the archdiocese released the 2011 results saying they had a “balanced budget,” when that really was not true. Central Operations for the archdiocese ran at a loss of about $6.8M, and the archdiocese also faces their own “fiscal cliff” of sorts as they have $137M of debt and no obvious way of paying it right now.

For all who care about the future of the Boston Archdiocese and her ability to carry out the saving mission of Jesus Christ for generations to come, there is reason for serious concern.

The report, available here, presents a lot of data, and it is easy to be overwhelmed with the data and miss the meaning of the data, as the Boston Globe did in their article on Friday. Once you look at the big picture, the message should raise alarm bells at 66 Brooks Drive and at the Vatican that we can no longer have “business as usual.” A few finance experts looked over the report and helped shed insight for us into the data. Here are just some of the key things you should know:

o Despite a “balanced budget” announced for the 2011 fiscal year, the recently released financial statements show (page 24, and page 73–Column 2) that the Central Operations of the archdiocese had an operating loss of $6.8 million in 2012 and $6.3M in 2011 (page 24). BCI pointed out the deception last year, and at least this year, they did not say they had a balanced budget–they just said they had a goal of having one.

BOSTON (MA)

- Boston Catholic Insider