THE CATHOLIC DIOCESE of JEFFERSON CITY CHANCERY OFFICE Jefferson City, Missouri
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FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT THE CATHOLIC DIOCESE OF JEFFERSON CITY CHANCERY OFFICE Jefferson City, Missouri June 30,2012 THE CATHOLIC DIOCESE OF JEFFERSON CITY CHANCERY OFFICE Jefferson City Missouri CONTENTS Page INDEPENDENT AUDITORS' REPORT 3 FINANCIAL STATEMENTS STATEMENT OF FINANCIAL POSITION 4 STATEMENT OF ACTIVITIES 5-6 STATEMENT OF CASH FLOWS 7 NOTES TO FINANCIAL STATEMENTS 8-27 CPAs and Management Consultants One South Memorial Drive, Ste. 950 St. Louis, MO 63102-2439 ph 314.231.6232 Kerber, Eck & Braeckel LLP fax 314.231.0079 www.kebcpa.com Independent Auditors' Report Board of Directors The Catholic Diocese of Jefferson City- Chancery Office Jefferson City, Missouri We have audited the accompanying statement of financial position of The Catholic Diocese of Jefferson City- Chancery Office (the Diocese) (a Missouri corporation, not-for-profit) as of June 30, 2012, and the related statement of activities and cash flows for the year then ended. These financial statements are the responsibility of the Diocese's management. Our responsibility is to express an opinion on these fmancial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fmancial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedmes that are appropriate in the circtm1stances, but not for the purpose of expressing an opinion on the effectiveness of the Diocese's intemal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As discussed in Note 15 to the financial statements, the Diocese had not determined the funded status of its priests' retirement and health defined benefit plan in accordance with accounting standards generally accepted in the United States of America. The effects of that departure on the financial statements are not reasonably determinable. In our opinion, expect for the effect on the financial statements of the matter discussed in the preceding paragraph, the financial statements referred to in the first paragraph present fairly, in all material respects, the fmancial position of The Catholic Diocese of Jefferson City- Chancery Office as of June 30, 2012, and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. St. Louis, Missouri November 7, 2012 Other Locations Belleville, IL • Carbondale, IL • Springfield, IL • Jacksonville, IL • Cape Girardeau, MO • Milwaukee, WI THE CATHOLIC DIOCESE OF JEFFERSON CITY CHANCERY OFFICE Jefferson City, Missouri STATEMENT OF FINANCIAL POSITION June 30, 2012 Assets Cash and cash equivalents $ 810,633 Investments Funds on deposit with The Catholic Diocese of Jefferson City Fund Pooled investments 1,814,598 Depositor's fund 1,395,134 Other investments 50,030 Accounts receivable, net 721,490 Promised contributions receivable, net 256,726 Accrued interest and investment income 14,760 Prepaid expenses 38,247 Loans made to parishes and other entities 172,210 Land, buildings and equipment, net 590,897 Total Assets $ 5,864,725 Liabilities Accounts payable $ 124,503 Accrued liabilities Compensated absences 66,887 Property and casualty insurance claims 286,987 Pledges payable 163,195 Deferred revenue 6,926 Funds held in custody for others 254,403 Total Liabilities 902,901 Net Assets Unrestricted Undesignated 528,382 Designated for land, buildings and equipment 590,897 Designated for other purposes 385,605 Total Unrestricted Net Assets 1,504,884 Temporarily restricted 2,572,975 Permanently restricted 883,965 Total Net Assets 4,961,824 Total Liabilities and Net Assets $ 5,864,725 See accompanying notes to the financial statements. 4 THE CATHOLIC DIOCESE OF JEFFERSON CITY CHANCERY OFFICE Jefferson City, Missouri STATEMENT OF ACTIVITIES Year Ended June 30, 2012 Temporarily Permanently Unrestricted Restricted Restricted Total Support and Revenues Charitable Support Contributions and Bequests $ 1,466,470 $ 2,034,220 $ 6,050 $ 3,506,740 Diocesan Share of National Collections 16,195 8,317 24,512 Grants 601,866 601,866 Parish Assessments Cathedraticum 969,996 969,996 Infirm Priests and Religious 252,454 252,454 Priest's Retirement 325,000 325,000 Seminarian Formation 400,357 400,357 Other Revenues Program Sales and Fees 1,088,621 53,925 1,142,546 Health Insurance Premiums 7,098,160 7,098,160 Property and Casualty Insurance Premiums 1,211,925 1,211,925 Investment Income Interest and Dividend Income 54,588 33,034 87,622 Realized Loss on Investments {7,021) 5,016 (2,005) Unrealized Loss on Investments (20,371) 17,116 {3,255) Other 6,872 7,971 14,843 Net Assets Released from Restrictions 1,434,531 {1,434,531) Total Support and Revenues 14,297,777 1,326,934 6,050 15,630,761 Total Expenses (page 6) 15,561,449 15,561,449 Net Increase (Decrease) in Net Assets (1,263,672) 1,326,934 6,050 69,312 Net Assets at July 1, 2011, as originally reported 2,442,910 1,246,041 877,915 4,566,866 Prior Period Adjustments 325,646 325,646 Net Assets at July 1, 2011, as restated 2,768,556 1,246,041 877,915 4,892,512 Net Assets at June 30, 2012 $ 1,504,884 $ 2,572,975 $ 883,965 $ 4,961,824 See accompanying notes to the financial statements. 5 THE CATHOLIC DIOCESE OF JEFFERSON CITY CHANCERY OFFICE Jefferson City, Missouri STATEMENT OF ACTIVITIES Year Ended June 30, 2012 Temporarily Permanently Unrestricted Restricted Restricted Total Expenses Worship Liturgical Commission $ 5,452 $ $ $ 5,452 Evangelization Mission Office 418,546 418,546 Other 160 160 Community Health Insurance Premiums for Parishes 7,027,822 7,027,822 Property and Casualty Insurance Expense 1,185,091 1,185,091 Care of Infirm Clergy and Religious 452,750 452,750 Catholic Missourian 434,611 434,611 Clergy Retirement 353,385 353,385 Youth Ministry 270,888 270,888 Vocations Office 188,061 188,061 Marriage Tribunal 143,783 143,783 Community Reconciliation 104,893 104,893 Communications Office 77,305 77,305 Pro Life Activities 68,587 68,587 Newman Communities 43,500 43,500 Other 590 590 Education Seminarian Formation 552,592 552,592 Catholic Schools Office 286,056 286,056 Religious Education Office 217,634 217,634 Ministry to Priests 176,485 176,485 Diaconate Formation 34,383 34,383 Ministry Refugee and Immigration Services 372,881 372,881 Catholic Charities of Central and Northern Missouri 330,890 330,890 Hispanic Ministry 197,854 197,854 Hospital Ministry 135,785 135,785 Episcopal Oversight Central Administration 1,305,945 1,305,945 Finance Office 312,301 312,301 Office of the Bishop 256,399 256,399 Office ofthe Chancellor 211,018 211,018 Properties Office 86,136 86,136 Office of the Vicars and Moderator of the Curia 56,936 56,936 Presbyteral Council 3,734 3,734 Fundraising Stewardship Office 248,996 248,996 Total Expenses (page 5) $ 15,561,449 $ $ $ 15,561,449 See accompanying notes to the financial statements. 6 THE CATHOLIC DIOCESE OF JEFFERSON CITY CHANCERY OFFICE Jefferson City, Missouri STATEMENT OF CASH FLOWS (INDIRECT METHOD) Year Ended June 30 2012 Cash Flows from Operating Activities Change in Net Assets $ 69,312 Adjustments to Reconcile Change in Net Assets to Net Cash Provided by Operating Activities Depreciation 83,391 Contribution of non-cash assets to Catholic Charities of Central and Northern Missouri 26,115 Net unrealized and realized loss on investments 5,260 (Increase) Decrease in: Accounts receivable, net 98,156 Promised contributions receivable, net (79,320) Pledged contributions receivable- Jubilee Fund, net 64,050 Accrued interest and investment income (4,615) Prepaid expenses 349,573 Increase (Decrease) in: Accounts payable (28,483) Pledges payable (77,223) Accrued liabilities (39,960) Deferred revenue (384,745) Funds held in custody for others (77,651) Net Cash Provided by Operating Activities 3,860 Cash Flows from Investing Activities Loan collections from parishes and other entities 6,355 Purchase of investments (4,227,948) Sale of investments 3,895,573 Purchase of land, buildings and equipment (67,139) Net Cash Used in Investing Activities (393,160) Net decrease in cash and cash equivalents (389,300) Cash and cash equivalents at July 1, 2011 1,199,933 Cash and cash equivalents at June 30, 2012 $ 810,633 See accompanying notes to the financial statements. 7 THE CATHOLIC DIOCESE OF JEFFERSON CITY CHANCERY OFFICE Jefferson City, Missouri NOTES TO THE FINANCIAL STATEMENTS June 30,2012 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General Information The Catholic Diocese of Jefferson City - Chancery Office (Diocese) is not-for-profit organization that is exempt from income tax under Section 50l(c)(3) of the Internal Revenue Code. The Diocese is also a corporate body under the Code of Canon Law of the Roman Catholic Church. The Bishop, as local ordinary, exercises the pastoral mission entrusted to him by the Lord Jesus of sanctification, teaching and leadership, in communion with the Church Universal, under the leadership of its chief pastor, the Pope. To carry out this mission, the Diocese is organized into five strategic areas of ministry and oversight. Through Worship and Evangelization, the Good News is preached to the people who live in the 38 counties of the Diocese and to mission churches throughout the world.