State of the Archdiocese

1
State of the Archdiocese

• March 2, 2006

2
State of the Archdiocese

• By the Numbersselected high-lights of
  interesting archdiocesan financial oddities
• Financial Overviewa brief orientation to
  archdiocesan finances
• Financial Priorities
• 2006-07 Budget

3
Archdiocese of IndianapolisBy the Numbers

• ONE
• The number of years since the mid- 1990s that the
  archdiocese has achieved a break-even or better
  budget (2004-05)
• Also, the number of times an employee is allowed
  to misspell Archbishop Buechleins name and still
  retain his/her job (1997 agency directors budget
  meeting)

4
Archdiocese of IndianapolisBy the Numbers

• TWO
• The number of tax-exempt bond issues that the
  archdiocese has completed to pay for school and
  Catholic Charities agency construction and
  renovation projects
• 1996 for 38 million
• 2003 for 20 million
• Currently in the process of refinancing the 1996
  bond issue at lower interest rates, which should
  save approximately 130,000/year in interest
  expense

5
Archdiocese of IndianapolisBy the Numbers

• THREE
• The number of thousands of covered lives in the
  archdiocesan healthcare plan
• Healthcare costs continue to grow at a rate of
  3-4 times inflation and the revenue growth of the
  archdiocese
• Some estimates indicate that the healthcare
  system will implode in approximately 5 years
  without significant changes
• More than 44 million Americans are now uninsured
• Our goal is to continue to provide strong
  healthcare benefits at a reasonable cost for
  employees, parishes, schools and the archdiocese

6
Archdiocese of IndianapolisBy the Numbers

• FOUR
• The number of millions of dollars the 16
  center-city parishes and their elementary schools
  had accumulated in operating debt as of June 30,
  2005
• This debt repayment will be supported over the
  next five years through Home Mission Grants made
  possible by the generosity of parishes and their
  parishioners throughout the archdiocese
• Also, the number of Certified Public Accountants
  on staff in the accounting office at the Catholic
  Center

7
Archdiocese of IndianapolisBy the Numbers

• FIVE
• The number of thousands of people paid through
  the archdiocesan payroll system each month
• Also, the number of people on the archbishops
  11-member management council that enjoy periodic
  vacation trips to Las Vegas
• Notably, with Bill Bruns upcoming retirement,
  these statistics are heading in opposite
  directions

8
Archdiocese of IndianapolisBy the Numbers

• SIX
• The number of millions of dollars raised through
  the annual Called to Serve/United Catholic Appeal
  to assist those in need through parish, school
  and Catholic Charities agency ministries
• The appeals goal has grown to 5.7 million from
  a goal of 4.9 million in 2000, a 3.25 annual
  growth rate through difficult economic times

9
Archdiocese of IndianapolisBy the Numbers

• SEVEN
• The number of days/week Jeff works just to keep
  Msgr. Schaedel out of trouble

10
Financial Overview

• The reality
• 70 of U.S. students receive less than one week
  of course work in money management or personal
  finance

11
Financial Overview

• Total budget
• Archdiocesan agencies 60 million
• Parishes schools 165 million
• Less eliminations (20) million
• Total 205 million
• Parish Sunday collections are approximately 60
  million, and parishes are assessed 10 of Sunday
  Collections to support archdiocesan operations

12
Financial Overview

• Operating revenues
• Parish assessments 8.6 million
• Contributions UCA 15.7 million
• Fees, sales events 8.1 million
• Grants 4.3 million
• Investment income 3.0 million
• Total 39.7 million

13
Financial Overview

• Operating expenses
• Salaries 13.9 million
• Employee benefits 3.9 million
• Priest healthcare retirement 1.7 million
• Facilities 3.3 million
• Interest expense 2.4 million
• Professional services 3.9 million
• Ministry, administration, other 6.5 million
• Contributions (inc. op. deficits) 3.9
  million
• Total 39.5 million

14
Financial Overview

• The archdiocese coordinates employee benefit and
  risk management plans for the 150 parishes and 70
  schools of the archdiocese
• Healthcare (13 million)
• Retirement (4 million)
• Property insurance (4 million)

15
Financial Overview

• The Catholic Community Foundation now manages 313
  endowment funds valued at 129 million for the
  parishes, schools and agencies of the archdiocese
• 2004-05 distributions 4.8 million in support
  of ministries
• 9.4 investment return since inception of current
  investment structure on 1/1/1995

16
Financial Priorities

• Stabilize existing operations through endowment
  growth
• Schools
• Home mission parishes
• Charities agencies
• Legacy for Our Mission is expected to grow
  endowments by a minimum of 25 million

17
Financial Priorities

• Recover approximately 10 million spent through
  deficit budgets from the mid 1990s through 2004
• Undesignated bequests
• Positive budgets (target is 200,000-500,000 per
  year)

18
Financial Priorities

• Maintain strong employee benefit plans while
  addressing costs
• Likely to see significant changes in healthcare
  in 2007
• Increased education and improved investment
  options in 403(b) plan

19
Financial Priorities

• Develop long-term facility plans for parishes,
  schools and agencies
• Evaluation of facility needs to support
  ministries
• Evaluation of existing facilities and development
  of planned maintenance schedules and funding
  sources
• On-going annual preventative maintenance
  schedules incorporation into operating budgets

20
2006-07 Budget

• Current projects are break-even
• Were optimistic we can improve to 200,000
  positive
• No room to increase expenses beyond salary
  increases
• Budget materials distributed this week to budget
  coordinators
• Use return electronically the stewardship
  spreadsheet provided
• Return 1st drafts by March 22