By Peter McNamee, Director
Diocesan Financial Services

This issue of The Montana Catholic contains a summary comparison of the financial reports for the fiscal years that ended June 30, 2010 and June 30, 2009. Some items in the reports require explanation.

Each year, at the end of June, we write numerous checks for National Collections, Deposit and Loan Fund interest, construction bills, and other year-end items. Before June 30, it is not possible to estimate accurately the cash balance needed. Therefore, in some years, there is a large cash balance at the end of the fiscal year in anticipation of June 30 payments.

The promises receivable asset reflects Annual Catholic Appeal (formerly Diocesan Offertory Program) pledges and grant award notifications that apply to future years.

Prepaid expenses include approximately $75,000 in the reserve for the self-insured health plan. This amount is the net after deducting medical bills that were incurred during the fiscal year but not reported until after July 1. Most of the rest is prepaid expenses for Legendary Lodge camps. The camp season overlaps two fiscal years.

Property, plant and equipment expenses increased mainly due to the construction of a building at Legendary Lodge.

Accounts receivable decreased because of more timely parish receipts and reimbursement of a portion of the from Age to Age capital campaign costs paid during the campaign by the Roman Catholic Bishop of Helena (RCB). The capital campaign costs were paid during the campaign and are now being reimbursed to the diocese through a portion of pledge dollars received.

The loans receivable in the current operating fund are due from the diocesan cemeteries in Butte and Missoula, which are part of the Resurrection Cemetery Association. The loans will be paid from future cemetery land lease revenues.

The “due from CSS+ST” (Clergy Senior Status and Security Trust, which is the retirement plan for priests) decrease is a result of donations that were transmitted to the priest retirement account at the end of fiscal year 2008-2009, which included a portion specified by the donors for the use of the Roman Catholic Bishop.

There was little activity in our investment accounts. Our investment gains for the year were approximately $301,000. Most planned gifts, including endowments, are solicited now by the Foundation for the Diocese of Helena Inc., so the endowment fund of the RCB very seldom receives new endowment gifts.

The amounts in checking, savings and investments include funds we hold locally until transfer to our Guatemala mission accounts in Guatemala banks. The offsetting liability is called fiscal agent liabilities.

Annuity obligations are the amount of the charitable gift annuities estimated to be due to annuitants based on life expectancy. Funding for this obligation is met by setting aside a portion of each gift annuity received. The remainder is the future estate planning gift to the diocese.

The beneficial interest in annuities held for the Foundation for the Diocese of Helena is an estimate of the amounts that will transfer to the foundation upon the death of the annuitant.

The loan increase from 1st Interstate Bank reflects the need to cover cash flow shortages caused by construction in parishes and at Legendary Lodge. The loan increase also is due to the shortfall in the ACA collection. This loan was paid in fiscal year 2010-2011.

Accounting standards require that we report the long-term future cost of postretirement benefits. These are medical costs associated with some laypersons who retire at age 65 after 20 years of service for the Diocese of Helena and retired priests (the bulk of the cost). Annual income funds these costs. Although reporting them is required, they are unfunded, meaning there is no requirement that total net assets cover them.

By May 23, this report will be available on the diocesan website www.diocesehelena. org/offices/financial.html.

If you have comments on this report, or would like clarification, please write to Peter McNamee, Diocesan Financial Services Director, P.O. Box 1729, Helena MT 59624-1729 or e-mail pmcnamee@diocesehelena.org. The consolidated comments, questions and responses will be on the website or in The Montana Catholic.


Published in The Montana Catholic, Vol. 27, No. 2, February 18, 2011.