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Financial Statements 2010 Print E-mail

 
The Roman Catholic Diocese of Rockville Centre, New York (the “Diocese”) is pleased to publish the financial statements of the Diocesan high schools for the fiscal year ended June 30, 2010; the Diocese’s administrative offices, and its cemeteries and insurance units for the fiscal year ended August 31, 2010.

Also published on this site are the audited financial statements of entities associated with the Diocese, which include; Telecare; Diocesan Service, Inc. and the Seminary of the Immaculate Conception for the fiscal year ended August 31, 2010 and Catholic Charities, Ecclesia Assurance Co. and Propagation of the Faith and Mission Office for the fiscal year-ended December 31, 2011. 

Below is a brief synopsis of the financial reports of the Diocese’s administrative offices, and its cemeteries and insurance units, as well as of certain entities associated with the Diocese, for the fiscal year ended August 31, 2010. These synopses include fiscal year performance and notation of any major changes in financial reporting format.

Audited financial statements of Telecare for the fiscal year ended August 31, 2010 will be posted when the audit is complete.
 

>>> Click on the Offices and Entities Below to Download the Specific Statements  (Adobe PDF)

I.  Diocesan High Schools

Diocesan High Schools
The Diocesan High Schools include Bishop McGann-Mercy High School in Riverhead, Holy Trinity High School in Hicksville and St. John the Baptist High School in West Islip.  In fiscal year 2010, the schools had $37.7 million in combined revenues and $38.2 million in expenditures, resulting in a net loss of $0.5 million from operations before Diocesan subsidy.  The Diocese provided the schools with $1.4 million in total support: $1.0 million towards operations and $362,000 towards mortgage commitments for Bishop McGann-Mercy.  Total temporarily restricted net assets decreased by $362,000 in fiscal year 2010.

 

II.  The Diocese’s Administrative Offices, and its Cemeteries and Insurance Unit

Administrative Offices
The financial statements of the Administrative Offices include Pastoral Center Operations, Plant, Diocesan Loan Account, and the Catholic Ministries Appeal.  In 2010, total net assets of the Administrative Offices decreased from $37.2 million to $35.8 million, a decrease of $1.4 million.  Total revenues increased by $11.0 million due primarily to a one-time sale of property of $5.8 million and special collections of $3.3 million.  Net appreciation in the fair value of investments was $220,000.  Total expenses remained flat inclusive of a $2.0 million transfer to the Mission Assistance Corporation which occurred in fiscal 2009.


Catholic Cemeteries
Catholic Cemeteries include Holy Rood Cemetery, Holy Sepulchre Cemetery and Queen of All Saints Cemetery.  During the fiscal 2010 year, the Cemeteries contributed $3.25 million to the Administrative Offices.  The Cemeteries ended the fiscal year with a net increase of $5.0 million in total net assets due primarily to both realized and unrealized gains on investments.

When a “right of burial” or entombment is sold by Catholic Cemeteries, a percentage of the fee is designated as a Permanent Maintenance fund or a Mausoleum Maintenance Care fund. These funds are not donations; therefore, they are not permanently restricted under U.S. generally accepted accounting principles. Further, New York State only regulates permanent maintenance funds when they are held by entities other than religious corporations, requiring that such funds be treated as trust funds, prudently invested with the intent of preserving capital and producing a reasonable income. Although Catholic Cemeteries is exempt from the State regulations, it recognizes a written promise to invest the principal of the Permanent Maintenance Fund and to use the income to fund the general maintenance and improvements of the cemetery.  As of August 31, 2010, Catholic Cemeteries had $79.4 million of net assets contractually committed for such purposes.

In fiscal 2009, Catholic Cemeteries undertook a study to estimate the amount of maintenance that they will incur in the future to care for Catholic Cemeteries.  Based on an actuarial projection of 50 years and a discount rate of 3.5%, the present value of future obligations for permanent maintenance are substantial and would require an estimated $134.0 million to be fully funded as of August 31, 2010.
 

Health Insurance Program
The Health Insurance Program provides medical, dental, life, and non-occupational disability insurance for participating employees of the Diocese and many entities associated with the Diocese.  During 2010, net assets available for benefits decreased by $2.0 million, which was the result of higher claims, offset by higher medical assessment billing.  The fiscal year ended with total net assets available for benefits of $15.6 million and a benefit obligation of $3.9 million.

 

Protected Self Insurance Program
The Protected Self Insurance Program (PSIP) was initiated by the Diocese principally to administer a program for the self-indemnification of property and casualty losses of participating parishes, health facilities, institutions and organizations and individuals within the Diocese on an occurrence basis.  During fiscal 2010, net assets held for the benefit of participants decreased by $9.3 million. The decrease was primarily the result of increases in loss reserves and reinsurance premiums.  In addition, the following prior-period changes are reflected on the financial statements:

  • Change in accounting principle to record recoverable from health facilities on an undiscounted basis.  The impact of this

  change is presented as an adjustment to net assets available to participants as of August 31, 2009.

  • Correction of an error through an increase of approximately $37.8 million to (a) insurance reimbursable on unpaid losses

  and loss adjustment expenses and (b) a comparable increase in losses and loss adjustment expenses payable. 
  The correction had no impact on net assets available to participants or the statement of activities as of August 31, 2009.

 

III.  Entities Associated with the Diocese

Unitas Investment Fund, Inc.
Unitas Investment Fund, Inc. (Unitas) is an investment company administered by the Diocese to facilitate cost efficient investing in harmony with the teaching and beliefs of the Roman Catholic Church .  The net assets of Unitas represent separate accounts owned individually by each of its participating entities, such as the Diocese, parishes and schools.  The fiscal 2010 total return (calculated based on the AICPA’s Audit and Accounting Guide for Investment Companies) for all Unitas assets was 5.50%.  For fiscal year 2010, net assets available for participants decreased $24.3 million to $204.9, resulting from net withdrawals of $35.5 million, offset by $11.3 million of realized and unrealized gains.
 

Mission Assistance Corporation
The Mission Assistance Corporation (MAC) was formed to provide financial assistance to parishes in need. Since inception, twenty-two parishes have received financial assistance in the form of loans and grants.  In 2010, total net assets increased $564,000 to $14.3 million due primarily to net appreciation in the fair value of investments of $628,000.  In 2009, MAC received a $2.0 million grant from the Diocese of Rockville Centre.  There were no grants made in 2010.  At fiscal year-end, MAC held total parish loans of $2.6 million.
 

Catholic Press Association
The Catholic Press Association is the publisher of “The Long Island Catholic” weekly newspaper.  In 2010, unrestricted net assets decreased $457,000 to $1.7 million due primarily to reductions in Parish subscription and advertising revenue in the amount of $1.0 million, coupled with increases in total expenses of $84,000. In total, expenses exceeded revenues by $1.3 million in fiscal year 2010 (including $147,000 of investment returns), offset by $800,000 in subsidy from the Diocese of Rockville Centre.
 

Telecare
To Be Posted


Diocesan Service, Inc.
Diocesan Service, Inc. (DSI) provides insurance brokerage services for the Diocese and many entities associated with the Diocese.  In 2010, DSI earned total revenues of $19,000 and had total expenses of $21,000.  Total retained earnings at the end of 2010 were $150,000, after a net loss of $1,700.
 
 
Seminary of the Immaculate Conception
The Seminary of the Immaculate Conception is an institution of higher learning established for the training of men for the priesthood.  In 2010, the Seminary had a net decrease in unrestricted net assets of $171,000, resulting from an operating deficit, offset by Diocesan subsidies totaling $1.6 million.  Of the total subsidy, $1.1 million was for general subsidy and $451,000 was for tuition and health insurance.


Ecclesia Assurance Company
Ecclesia is a New York State captive insurance company that provides various property and casualty insurance to the Diocese.  Ecclesia is a stock corporation the stock of which is wholly owned by the Diocese.  In 2010, Ecclesia had net income of $4.0 million due to net premiums earned offset by underwriting expenses.   At the close of the fiscal year, Ecclesia had $26.9 million in total assets and $12.4 million in total stockholder’s equity.


Propagation of the Faith and Mission Office
The Diocese of Rockville Centre Propagation of the Faith and Mission Office (the Mission Office) is a member of the National Office for the Society for the Propagation of the Faith (the National Office), which was organized to develop an awareness of the work of the Missionaries and a better understanding of the social, economic, cultural and religious conditions of the people with whom they work; encourage support of the Missions and Missionaries through prayer and donations; and develop personal contact with the Missionaries.  In 2010, unrestricted net assets remained unchanged as the majority of the activity within the Mission Office is custodial in nature, except for administrative fees, investment earnings and operating/fundraising expenses.


Catholic Charities and Affiliates (CC)
The financial statements of Catholic Charities (the “Agency”) and Affiliates include the Agency’s programs and administration, as well as the accounts of three affiliated corporations: Catholic Charities Support Corporation (“CCSC”), Catholic Charities Health Systems of the Diocese of Rockville Centre (“CCHS”) and Regina Maternity Services Corporation (“Regina”).  In 2010, combined unrestricted net assets from operations increased $162,000 and total combined net assets increased $2.4 million, to $24.9 million.  In 2010, Catholic Charities recognized receipt of $2.3 million in assistance from the Diocesan CMA program.