Archdiocese Moves toward Fiscal Stability

By Eisenstadt-Evans, Elizabeth | National Catholic Reporter, April 11, 2014 | Go to article overview

Archdiocese Moves toward Fiscal Stability


Eisenstadt-Evans, Elizabeth, National Catholic Reporter


PHILADELPHIA * After a course correction impelled by decades of often secretive financial management decisions and an embezzlement crisis, the Philadelphia archdiocese is making progress toward tackling a chronic operating deficit and meeting its financial obligations.

In one sign of contrast with prior administrations, the archdiocese has begun to provide public, audited financial statements that reveal the magnitude of the task facing its chief financial officer.

"I think we're in the process of turning the corner, but it's a big corner," said CFO Tim O'Shaughnessy, who came on board in April 2012. Archbishop Charles Chaput, who arrived in 2011, has charged O'Shaughnessy with getting the archdiocese's financial house in order after former CFO Anita Guzzardi was charged with embezzling more than $900,000. In August 2012, she was sentenced to serve two to seven years in state prison for the theft.

In the fiscal year 2013, the Office of Financial Services, which provides administrative and program support for parishes, schools and other archdiocesan-related groups, incurred a $4.9 million recurring loss. That's a substantial reduction from the previous year, when the "core deficit" (a number that doesn't take into account one-time income and expenses) was $17.6 million.

Unique expenses for fiscal year 2012 included $11.9 million dedicated to legal and other professional fees related to investigations of the embezzlement and of clergy sex abuse, among other expenses, according to archdiocesan spokesman Ken Gavin.

Reported income for fiscal year 2013 showed a shift from a loss of $39.2 million to a $3.9 million surplus (which also included non-recurring income). The archdiocese undertook the move toward solvency with much financial belt-tightening and a decision to restructure many operations.

O'Shaughnessy said he expects that the loss for fiscal 2014 will be somewhere between $3 million and $5 million.

Financial statements released by the archdiocese March 14 for fiscal 2013 reveal increased financial stability for several significant archdiocesan ministries.

Matthew Gambino on Catholic Philly.com reported, "The high schools showed a more dramatic swing in net assets: a $5.8 million gain in 2013, up from a $4 million loss in 2012. Investment gains appeared to be a major reason."

A narrative provided by the archdiocese for Catholic Health Care Services (CHCS) indicates that fiscal 2013 was also profitable. According to the archdiocese, there was "an operating excess of revenue over expenses before interest, depreciation and amortization expense of $3.9 million. The outstanding performance of CHCS in fiscal 2013 is also indicated with an increase in cash of $2.5 million, approximately." The agency is the seventh-largest faith-based provider of nursing homes and assisted living facilities in the U.S.

The picture was less positive for Catholic Social Services. That agency had "negative changes in net assets," according to archdiocesan documents, of $1.1 million, although it received millions of dollars in revenue from appeals, donations and investment returns. Catholic Social Services provides a broad range of services to children, adults and the elderly residents of southeastern Pennsylvania.

Within the past two years, the archdiocese has taken multiple steps to trim its losses. Some of these involve shedding brick-and-mortar edifices, and others, perhaps more painful, human capital.

When O'Shaughnessy took over as financial steward of the archdiocese, he faced four significant, chronic and pressing liabilities:

* $82 million borrowed from the Trust and Loan Fund, an entity created to invest parish deposits and use the assets to make loans to other parishes;

* A $30.4 million shortfall in the risk management program;

* A gap of more than $150 million in the lay employee retirement plan;

* A shortfall of around $92 million in the pension plan for clergy. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Archdiocese Moves toward Fiscal Stability
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.