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Central Ministries Budget Fiscal Year 2012

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Central Ministries Budget Fiscal Year 2012 ARCHDIOCESE OF BOSTON Central Ministries Budget Fiscal Year 2012 ARCHDIOCESE OF BOSTON Introduction . 1-2 Archdiocesan Cabinet . .3 . Priest Budget Advisory Committee . 4 Corporation Sole Financial Responsibility and Oversight Matrix . 5 Central Ministries Total Budget Summary . 6-9 Total Revenue Sources of Central Ministries . 10 Total Expense Uses of Central Ministries . .11 . 5-year and 10-year Trends . 12-13 Highlights of Mission Effectiveness . 14-15. Description of Agencies, Departments and Staffing . 16-22 . James P. McDonough, Chancellor Secretary for Administrative and Financial Services Presented for review is a comprehensive Central Ministries Budget Report for Fiscal 2012 which began on July 1, 2011 and ends June 30, 2012. Also included is five and ten-year trend data that show positive trends as a result of the difficult decisions and sacrifices made since the economic downturn in 2008. WHAT ARE THE CENTRAL MINISTRIES? They are comprised of almost 50 agencies and departments grouped by Cabinet Secretary who report to Cardinal Seán and the Vicar General, Monsignor Robert P. Deeley. Within these agencies and departments are additional cost centers stewarded by over two hundred Pastoral Center employees who provide more service today with fewer resources than ever due to the continually challenged economy. Central Ministries operates within Central Operations which is one of four parts of the Corporation Sole along with Parishes, Self Insurance and Endowment Funds (see page 5). The Corporation Sole audited financial statements are part of the annual Archdiocese of Boston Financial Report released each year. This budget report is for the purpose of reviewing the operating budget of Central Ministries only. RECENT TRENDS Budgeting for Fiscal 2009 was very challenging as the economy sank into recession and Appeal contributions as well as interest and dividend income dropped sharply. Significant planning took place during Fiscal 2009 to prepare for a projected $4M shortfall in Fiscal 2010. A balanced budget was achieved through a variety of means. Most significantly, we reduced approximately 20 positions at the Pastoral Center through layoffs, open position eliminations and adjustments, freezing of open positions and salary reductions. Through this process, we developed and achieved a balanced Fiscal 2010 Central Ministries operating budget. As we planned for Fiscal 2011, another deficit was projected of $3.5M despite the reductions and adjustments made in prior fiscal years. To create a balanced budget, an additional 21 positions were impacted through various means as well as additional reductions made to the cost structure creating a “base-line” budget where operations were cut sharply. While Fiscal 2011 final results are being audited, it is expected that once again, Central Ministries Operations will be balanced. TODAY Fiscal 2012 began on July 1st and a balanced budget was approved without the need to reduce staff. In addition, a 3% salary increase was approved marking the first approved increase in the past four years. - 1 - To put things in perspective, below are some historical highlights on the budgeted cost of Central Ministries and the number of staff: Total Cost Structure Total FTEs 38 40 500 32 400 30 28 400 23 290 277 300 Millions 20 218* 200 65% -16% 38% -31% -21% 10 -13% 100 0 0 1990 2000 2006 2012 Fulltime Equivalent Employees 1990 2000 2006 2012 (FTE’s = full-time equivalent employees) *Excludes staff of Pilot, Catholic Directory and Digital Media transferred to New Catholic Media Secretariat in Fiscal 2011. The budget continues to be an important area of concern and review. The Finance Council meets quarterly to discuss the budget and other issues as does the Priest Budget Advisory Committee, a subgroup of the Presbyteral Council, which provides feedback on budgeted operations from a Pastors’ perspective and also to assist prioritizing areas within Central Ministries that are most helpful to parishes. Thank you for the opportunity to present this budget update. If you have any questions or suggestions about the budget please do not hesitate to contact me at 1-617-746-5670 or email at [email protected]. James P. McDonough, Chancellor Secretary for Administrative and Financial Services - 2 - Archbishop of Boston Archdiocesan Cabinet Vicar General, Moderator of the Curia Cardinal Seán P. O’Malley Judicial Vicar Rector of Rector of Blessed St. John Seminary John XXIII Seminary Monsignor Assistant Vicar Robert P. Deeley for Administration Bishop - 3 Fr. Mark O’Connell Fr. William Palardy Arthur Kennedy Fr. Bryan K. Parrish Communications & Faith Formation Education Institutional Advancement Delegate for Religious Public Affairs & Evangelization Administrative and Social Services Catholic Media Parish Life & Leadership Financial Services & Healthcare Mary Grassa O’Neill Terrence Donilon Kathleen Driscoll Janet Benestad Sr. Marian Batho, CSJ Scot Landry Fr. Thomas Foley James McDonough Fr. J. Bryan Hehir Priest Budget Advisory Committee Established in 2010 as a result of feedback from the "IFRC" process to address transparency and feedback concerns relating to the Central Ministries budget, the "PBAC" advises Cardinal Seán, the Vicar General and the Chancellor on the budget, how it impacts Archdiocesan strategic priorities and how it impacts Parishes and Pastors. The committee is a subgroup of the Presbyteral Council. - 4 Reverend Brian Manning, Chair Pastor, St. Mary Franklin Reverend Joseph Raeke, Reverend Thomas Rafferty Pastor of 3 Brockton Parishes: Reverend Marc Bishop Reverend Shawn Allen Reverend John Unni Pastor, St. John the Evangelist Christ the King Pastor, Our Lady of Good Counsel Pastor, St. Theresa of Lisieux Pastor, St. Cecelia in Swampscott and Our Lady of Lourdes Methuen Billerica Boston St. Thomas Aquinas in Nahant Saint Edith Stein Roman Catholic Archbishop of Boston: A Corporation Sole CENTRAL OPERATIONS OTHER Central Ministries - 5 Budgeted Operations Restricted Funds Central Ministries Other Activities (primarily non-cash) Parishes Self Insurance Endowments Parish Reconfiguration Special Collections Roman Catholic Archbishop of Boston Central Ministries Budgeted Operations (within Central Operations) (000's omitted) FISCAL YEAR 2012 BUDGET FORECAST NON-PROGRAM SOURCES REVENUE EXPENSE NET Catholic Appeal $14,000 — $14,000 Gifts and Bequests 1,000 — 1,000 Interest and Dividends 550 — 550 Restricted Fund Distributions 500 — 500 Cathedraticum Collection 325 — 325 Other 1 500 — 500 Subtotal $16,875 — $16,875 MISSION AND ADministration Parish Life and Leadership $583 $1,750 ($1,167) Faith Formation and Evangelization 2 2,379 4,089 (1,710) Catholic Schools Office 216 1,526 (1,310) Social Services and Health 562 562 — Central Services 260 2,902 (2,642) Communications and Public Affairs 150 420 (270) Administrative Services 3 6,785 9,951 (3,166) General Counsel 35 1,045 (1,010) Parish Support and Emergencies — 2,100 (2,100) Professional Responsibility and Oversight — 800 (800) Fundraising 4 — 2,300 (2,300) Clergy in Transition 5 — 400 (400) Subtotal $10,970 $27,845 ($16,875) Total $27,845 $27,845 — 1. Other revenue is parish tithe receipts form IFRM model less Appeal rebates. 4. Fundraising increase of 28% form Fiscal 2011 to Fiscal 2012 to reflect fully staffed Boston Catholic Development Services team. The level of support has 2. Faith Formation and Evangelization revenue and expense down 38% and 25% been restored from the one-time drop in funding during Fiscal 2011. respectively due to the Catholics Come Home program being a Fiscal 2011 event only and the conclusion of the ARISE/RENEW program. 5. Clergy in Transition reflect support of Clergy from Central Ministries budget only and not reflective of other Clergy supported by RCAB's Clergy Fund and other 3. Administrative Services increase in expense of 4% for the staffing of Improved non-operating reserves. Financial Relationship Model (IFRM), implementation of 401k plan and uniform payroll service. 6. Child Advocacy and Victim Assistance included in Risk Management Operations - 6 - with self insurance of Corporation Sole. Roman Catholic Archbishop of Boston Central Ministries Budgeted Operations (within Central Operations) (000's omitted) FISCAL YEAR 2012 BUDGET FORECAST PARISH LIFE AND LEADERSHIP REVENUE EXPENSE NET Secretary for Parish Life and Leadership — $139 ($139) Clergy Support and Ongoing Formation $150 150 — Priests Pursuing Higher Studies — 85 (85) Vocations — 226 (226) Permanent Diaconate 58 358 (300) Clergy Personnel — 189 (189) Ecumenical Commission — 18 (18) Pastoral Planning 5 215 (210) Clergy Funds Administration 370 370 — Total $ 583 $1,750 ($1,167) FAITH Formation AND EVANGELIZation Secretary for Faith Formation and Evangelization — $233 ($233) Health Care Ministry $1,463 1,400 63 Religious Education 38 281 (243) Cultural Diversity 231 501 (270) Marriage Ministry and Natural Family Planning 21 147 (126) New Evangelization of Youth and Young Adults 152 414 (262) Worship and Spiritual Life 7 222 (215) Airport Chaplaincy 68 68 — Campus Ministries 399 690 (291) Support to Parents Alliance for Catholic Education (PACE) — 50 (50) Hispanic Ministry — 83 (83) Total $2,379 $4,089 ($1,710) - 7 - Roman Catholic Archbishop of Boston Central Ministries Budgeted Operations (within Central Operations) (000's omitted) FISCAL YEAR 2012 BUDGET FORECAST REVENUE EXPENSE NET Catholic Education $216 $1,526 ($1,310) Health AND SOCIAL SERVICES Respect Life Program $114 $114 — Industrial Relations - Labor Guild 144 144 — Pro-Life 304 304 — Totals
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