THE CATHOLIC FOUNDATION OF UTAH Financial Statements and Supplementary Information June 30, 2020 and 2019 (With Independent Auditors’ Report Thereon) THE CATHOLIC FOUNDATION OF UTAH Table of Contents Page Independent Auditors’ Report 1 Financial Statements: Statements of Financial Position 3 Statements of Activities 4 Statements of Cash Flows 5 Notes to Financial Statements 6 Supplementary Information Endowment and Gift Information with Donor Restrictions 17 KPMG LLP Suite 1500 15 W. South Temple Salt Lake City, UT 84101 Independent Auditors’ Report The Most Reverend Oscar A. Solis: We have audited the accompanying financial statements of The Catholic Foundation of Utah (the Foundation), which comprise the statements of financial position as of June 30, 2020 and 2019, and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The Catholic Foundation of Utah as of June 30, 2020 and 2019, and the changes in its net assets and its cash flows for the years then ended in accordance with U.S. generally accepted accounting principles. KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. Other Matter Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The supplementary information relating to Endowment and Gift Information with Donor Restrictions is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Salt Lake City, Utah November 10, 2020 2 THE CATHOLIC FOUNDATION OF UTAH Statements of Financial Position June 30, 2020 and 2019 Assets 2020 2019 Cash and cash equivalents $ 1,713,101 1,401,923 Interest receivable 64,746 67,669 Investments 44,051,705 43,489,171 Other assets 547,955 528,351 Total assets $ 46,377,507 45,487,114 Liabilities and Net Assets Liabilities: Accrued liabilities $ 20,275 21,389 Annuity and charitable remainder unitrust liabilities 277,987 289,974 Funds held for related-entity endowment liabilities 13,360,597 13,047,141 Total liabilities 13,658,859 13,358,504 Net assets: Without donor restrictions — — With donor restrictions Purpose restricted 5,162,002 5,084,202 Donor-restricted endowments 27,556,646 27,044,408 Total net assets with donor restrictions 32,718,648 32,128,610 Total net assets 32,718,648 32,128,610 Total liabilities and net assets $ 46,377,507 45,487,114 See accompanying notes to financial statements. 3 THE CATHOLIC FOUNDATION OF UTAH Statements of Activities Years ended June 30, 2020 and 2019 2020 2019 Changes in net assets without donor restrictions: Operating activities: Beneficiaries services $ (1,168,031) (924,169) Management and general (156,153) (159,386) Fundraising (152,216) (152,920) Other income 191 2,597 Net assets released from restrictions 1,476,209 1,233,878 Total changes from operating activities — — Agency activities: Transfer from other Catholic entities 211,262 944,639 Transfer to other Catholic entities (176,000) (380,551) Net return on agency investments 278,194 748,093 Net change in funds held for related-entity endowment liabilities (313,456) (1,312,181) Total changes from agency activities — — Increase in net assets without donor restrictions — — Changes in net assets with donor restrictions: Purpose restricted: Contributions 163,801 57,363 Interest and dividends on investments 126,515 112,032 Net realized gains on investments 178,746 169,760 Net unrealized (losses) gains on investments (123,250) 102,352 Net assets released from restrictions (268,012) (215,097) Increase in purpose restricted net assets 77,800 226,410 Donor-restricted endowments: Contributions restricted for long-term investment 475,710 1,190,027 Interest and dividends on investments 648,788 595,632 Net realized gains on investments 896,967 747,639 Net unrealized (losses) gains on investments (656,081) 605,055 Other Catholic entities contributions 320,443 11,569 Change in value on charitable remainder unitrusts 14,863 6,255 Change in cash surrender value on insurance policies 19,745 4,423 Net assets released from restrictions (1,208,197) (1,018,781) Increase in donor-restricted endowments 512,238 2,141,819 Increase in net assets with donor restrictions 590,038 2,368,229 Increase in net assets 590,038 2,368,229 Net assets at beginning of year 32,128,610 29,760,381 Net assets at end of year $ 32,718,648 32,128,610 See accompanying notes to financial statements. 4 THE CATHOLIC FOUNDATION OF UTAH Statements of Cash Flows Years ended June 30, 2020 and 2019 2020 2019 Cash flows from operating activities: Increase in net assets $ 590,038 2,368,229 Adjustments to reconcile increase in net assets to net cash (used in) provided by operating activities: Net realized gains on investments (1,075,713) (917,399) Net unrealized losses (gains) on investments 779,331 (707,407) Contributions restricted for long-term investment (475,710) (1,190,027) Changes in operating assets and liabilities: Interest receivable 2,923 (3,918) Other assets (19,604) (4,446) Accrued liabilities (1,114) (92,204) Annuity and charitable remainder unitrust liabilities (11,987) (7,491) Net realized and unrealized gains on agency investments (149,761) (645,727) Funds held for related-entity endowment liabilities 313,456 1,312,181 Net cash (used in) provided by operating activities (48,141) 111,791 Cash flows from investing activities: Purchase of investments (15,168,454) (16,498,899) Proceeds from sale of investments 15,052,063 15,048,515 Net cash used in investing activities (116,391) (1,450,384) Cash flows from financing activity: Proceeds from contributions restricted for long-term investment 475,710 1,190,027 Net cash provided by financing activity 475,710 1,190,027 Net increase (decrease) in cash and cash equivalents 311,178 (148,566) Cash and cash equivalents at beginning of year 1,401,923 1,550,489 Cash and cash equivalents at end of year $ 1,713,101 1,401,923 See accompanying notes to financial statements. 5 THE CATHOLIC FOUNDATION OF UTAH Notes to Financial Statements June 30, 2020 and 2019 (1) Organization and Summary of Significant Accounting Policies (a) Basis of Presentation The accompanying financial statements include the accounts of The Catholic Foundation of Utah (the Foundation) only, and present no accounts of any other components of the Roman Catholic Bishop of Salt Lake City (the Bishop), a Corporation Sole. The Foundation is incorporated under the Utah Nonprofit Corporation and Cooperative Association Act. (b) Donated Assets Assets donated to the Foundation are recorded at fair value at the date of donation. (c) Net Assets Contributions are generally recognized as revenue at their fair value in the period received or made. The financial statements report net assets and changes in net assets in two classes that are based upon the existence or absence of restrictions on use that are placed by its donors, as follows: (i) Without Donor Restrictions Net assets without donor restrictions represent resources which are not subject to donor restrictions and over which the Foundation retains control to use the funds in order to achieve the Foundation’s purpose.