2012 FINANCIAL REPORT - archden.org

Dear Friends in Christ,

Since beginning my ministry here in July, I have beenoverwhelmed by the support and friendship I have re-ceived from the faithful of the Archdiocese of Denver. Iam grateful for your kindness. Please know that you arein my daily prayers.

I am pleased to present you with the 2012 FinancialReport of the Archdiocese of Denver. I invite you to takea few moments to read this report. Your finan-cial sacrifices and dedication deserve goodstewardship. With the assistance of those whooversee the fiscal management of the archdio-cese, I am committed to continuing the tradi-tion of prudent and thoughtful financial man-agement that the archdiocese has exercisedthroughout its history. Consistent with that tra-dition, the financial goal of the archdiocese willbe to utilize the financial resources entrusted toit in a manner that neither accumulates unnec-essary reserves nor dissipates those resources to the ex-tent that its overall financial position would not be on asound foundation.

Our fiscal health is particularly important in light ofthe opening of the Year of Faith. Pope Benedict XVI hascalled on every Catholic in the world to spend this yearentering deeply into the mystery of God’s love for us. Hehas called parishes and dioceses to support opportuni-ties for all Catholics to grow in the virtue of faith, and inlove for Jesus Christ and the Church. Our mission hasnever been more clear—the world needs Jesus Christ.We are tasked with a new evangelization, which bringsChrist to the desert of our contemporary world. OurChurch, in order to be an agent of grace, must prudent-ly and creatively steward all that we have been given.

Allow me to highlight some of the more importantmatters relating to the financial condition of the arch-diocese, and some of the challenges that still remain.The archdiocese, its many ministries and related entitiesand agencies are financially sound, as evidenced by theaccompanying report.

Notwithstanding ongoing economic challenges, do-nations to the Archbishop’s Catholic Appeal reflected amodest increase in 2012 from 2011. Likewise, rebates tothose parishes that surpassed their respective goal alsoincreased in 2012.

The faithful of the archdiocese also contributed inmany other positive ways, primarily through increasingdonations to Catholic Charities and various relief effortsthroughout the world. During fiscal 2012 alone, morethan $1.8 million was raised for special collections forthe universal Church. Finally, total offertory donationsfor the 142 parishes locations throughout northern Col-orado increased for the second year in a row.

Both St. John Vianney Theological Seminary and Re-demptoris Mater Archdiocesan Missionary Seminarycontinue to prosper. Eleven men were ordained to thepriesthood in 2012.Total enrollment at the seminaries is126 men in August 2012 as compared to 124 in August2011.The New Harvest Campaign, which is being con-ducted by The Catholic Foundation of Northern Col-orado for the benefit of the seminaries, is going well. In

November 2012, The Foundation andthe seminaries achieved the goal of$35.0 million in pledges, of which $7million has been collected. It is obvi-ous the people of the archdiocese val-ue the formation of our future priests!

The ministry initiatives of the arch-diocese, including those services pro-vided by Catholic Charities and Cen-tro San Juan Diego; and the educationof our youth and young adults through the 37parochial schools, two high schools and the

campus ministry programs at area colleges and univer-sities, continue to grow and prosper. Bishop James D.Conley, now bishop of the Diocese of Lincoln, Neb., andI were honored to dedicate several new ministry facili-ties in just the past five months, including a new homefor the participants of Christ in the City ministry near theCathedral Basilica of the Immaculate Conception; twonew parish church facilities in Longmont and Silver-thorne; the Augustine Institute’s new headquarters inGreenwood Village, the fourth Gabriel House in Lake-wood, which serves women and children in need; andProject Lighthouse, an outreach center for pregnantwomen across the street from one of the nation’s largestPlanned Parenthood centers, near the former Stapletonairport. Clearly, the Church is alive in the archdiocese!

There are also areas of our Church life that call for con-tinued improvement. The most notable challenge that weface involves the future of our beloved and historic CampSt. Malo Retreat and Conference Center in Allenspark,which was substantially destroyed by a fire in November2011. My staff continues to resolve various issues whichwill impact Camp St. Malo’s future. Recently, the board ofdirectors of Camp St. Malo hired an independent consult-ant to conduct a survey of the priests, religious, former at-tendees, school principals, parish religious education andyouth directors and many other interested parties to ob-tain their feedback and reflections on Camp St. Malo.We

are considering several possibilities for the next retreatcenter of the archdiocese, in order to best serve the needsof our Church; rest assured that the St. Catherine of SienaChapel, commonly referred to as the “Chapel on theRock,” will always remain a part of the archdiocese.

In view of the complex financial challenges we face asa country and globally, we have been trully blessed thispast fiscal year. I am thankful to the Archdiocesan Fi-

nance Council and its subcommittees for as-sisting me in the administration of the archdio-cese as well as the board members of our vari-ous related entities and agencies. I am veryproud of the archdiocese’s careful manage-ment of its resources. I realize that nothingcould be accomplished without the generousgift of time, talent and treasure from so manypeople throughout the archdiocese. I also wantto thank the employees of the archdiocese and

those of the parishes within the archdiocese. Withoutyour dedication and sacrifices during these past 18months of transition, all of these accomplishmentswould not have been realized.

Finally, I would like to recognize the leadership ofBishop Conley, who performed so faithfully as the apos-tolic administrator of the archdiocese prior to my arrival.As you know, the archdiocese lost a tremendous andgifted spiritual leader, and a friend, with Bishop Conley’sinstallation as the ninth bishop of the Diocese of Lincolnon Nov. 20.While our loss is great, we are comforted inknowing that the Church in southern Nebraska gained agreat leader as their new shepherd.

I am honored to serve as your archbishop. In the com-ing year I will begin to make pastoral visits to all theparishes of northern Colorado. I am eager to spend timewith each pastor and his staff to better understand theircommunities, and the opportunities and challengesthey face. I look forward to meeting the many wonderfulparishioners of this archdiocese in my travels and cele-brating Mass with many of you.

Asking God’s blessing upon you, your families and allyou hold dear as we celebrate Advent, I am

Gratefully yours in Christ,

Most Rev. Samuel J. Aquila, S.T.L.Archbishop of Denver

2012 FINANCIAL REPORT

INTRODUCTIONThe financial statements contained in this report have been sum-marized and condensed from financial statements prepared in ac-cordance with generally accepted accounting principles. The fol-lowing overview of the archdiocese is an accounting of its stew-

ardship. The accompanying presentation encompasses the 17nonprofit corporations or charitable trusts within the territory ofthe archdiocese. These nonprofit corporations and trusts are gov-erned by separate boards and/or trustees. The assets of these ec-clesiastical entities are held in their respective names and are notcommingled with those of any other entity.

ARCHBISHOPSAMUEL J.AQUILA, S.T.L.

FINANCE COUNCIL

Lowell A. Hare, Chair

Rev. Msgr. Thomas S. Fryar

Wendy Dominguez

Reid Godbolt

James S. Harrington

David A. Holden

John A. Ikard

Brooke B. Leer

Kathy Lutito

Steve Markel

Michael L. O’Donnell

Dave Runberg

Jeff Schmitz

William G. Trainor

Eric Zellweger

INVESTMENTCOMMITTEE

Eric Zellweger, CFA, Chair

Mike W. Beermann

Mick Bleyle, CFA


Larry Luchini, CFA

Kathleen Duggan Marvin,CFA

ACCOUNTING & AUDITCOMMITTEE

William G. Trainor, CPA, Chair


Heath Hill, CPA

Kelly Kozeliski Broughton,CPA

Andrew Newland

Keith Parsons, CPA

Jeff Smith, CPA

Jodi Thomas, CRCM

PROJECT FINANCE &REVIEW COMMITTEE

James S. Harrington, Chair

Rev. David Bluejacket

George Connolly

Peter Furstenberg

Sam N. Perry

Jennifer Reicher

George Shaw

Mike Wisneski

REAL ESTATECOMMITTEE

Brooke B. Leer, Chair, MAI

Gregory Gerken, MAI

Adam Hermanson

Rev. Msgr. Leo Horrigan

Paul Kluck

Steve Roesinger

COMPENSATIONCOMMITTEE

Reid Godbolt, Chair


Lowell Hare

Dave Runberg

The members of the Finance Council and its subcommittees are as follows:

Canon law requires every diocese to have a FinanceCouncil (the council) to advise the archbishop. In theArchdiocese of Denver, the Archdiocesan FinanceCouncil (AFC) functions in accordance with writtenstatutes to advise Archbishop Samuel J. Aquila.

The AFC provides policy guidance for the work of sub-committees. Currently, 15 individuals serve on the AFC, in-cluding 14 lay people. In addition, 22 lay, clergy and reli-gious leaders serve on its various subcommittees. The AFCmeets at least quarterly and functions as an advisory boardto the archbishop. Its duties include reviewing the finan-cial and operational performance of the archdiocese andall public juridic persons established by canon law and the

archbishop. Such review is conducted through a series ofreports submitted by the committees that are intended toadvise the archbishop on significant financial matters.

Council members represent a broad cross section ofCatholic business executives from small, medium, andlarge-sized companies of northern Colorado. Profes-sionals practicing in the fields of law, accounting, invest-ment and real estate management are also members.Most serve or have served on their respective parishcouncils, Catholic agencies or other nonprofit boards ofdirectors. The archdiocese also has a governing body ofpriests, which serves as the archbishop’s College of Con-sultors,which also provides advice and guidance on the

finances of the archdiocese. The work of the five sub-committees of the AFC is an important element in de-veloping and fine-tuning the strategy used to addressthe various resource issues confronting the archdiocese.Each committee chairperson is a member of the AFCand provides quarterly updates on their respective com-mittee’s activities to the council.

While these five subcommittees are the primary advi-sory bodies to the AFC, the work and service provided bythe members of the Irrevocable Revolving Fund TrustManagement Committee, the Building Committee, theHealth and Welfare Benefits Trust Committee, thePriest Retirement Committeeand theLay Pension PlanCommittee are also integral to the ongoing stewardshipefforts of the archdiocese.

ARCHDIOCESAN FINANCE COUNCIL AND ITS SUBCOMMITTEES

B2 l 2012 F INANCIAL REPORT DECEMBER 12, 2012 l DENVER CATHOLIC REGISTER

The Archdiocese of Denver (the archdioceseand/or the chancery), is a Colorado nonprofit cor-poration sole, located on the campus of the JohnPaul II Center in south Denver. The chancery is com-posed of the offices of the archbishop, the vicars, di-rectors and others who collaborate in the adminis-tration and oversight of over 30 archdiocesan officesand ministry programs.

The Archbishop’s Catholic Appeal campaign’s fiscal2012 donations increased by $516,000 or 7.1 percent ascompared to fiscal 2011. While parish assessments in-creased modestly from an overall increase in parish of-fertories, grants and contributions declined by ap-proximately $491,000, reflecting the non-recurrence ofnumerous one-time grants recognized in 2011. Invest-ment income decreased by almost $1.9 million in 2012from 2011 due to the decline in the performance ofstock markets during fiscal 2012.

Generally, program expenses in fiscal 2012 de-clined from comparable balances in fiscal 2011 dueto ongoing stewardship and cost containment ef-forts. Gifts and grants expense decreased $1.2 mil-lion due to non-recurrence of funding needed fortechnology upgrades at the Management Corpora-tion in 2011 and a decline in grant funding of certainparish schools.

Cash and short-term investments increased pri-marily due to the reclassification of a $2.8 millioncertificate of deposit from long-term investments toa cash equivalent during fiscal 2012 due to its short-term nature. The decrease in notes, contributionsand accounts receivable as reflected in the State-ment of Financial Position of almost $1.5 million isdue to the refinancing of two parish notes, payableto a financial institution, through the RevolvingFund Trust as well as the pay-off of one parish note

with an independent bank. Notes and bondspayable also declined in a similar amount as thearchdiocese was a co-borrower on the parish obliga-tions to the outside financial institution.

ARCHDIOCESE OF DENVER – CHANCERY

Statements of Financial Position

Statements of ActivitiesYEARS ENDED JUNE 30, 2012 AND 2011

Assets:Cash & cash equivalentsShort term investments for

designated purposesTotal cash & investments

Prepaid expenses & other assetsNotes, contributions & accounts

receivable, netDue from parishes & other related

entities, netInvestmentsProperty & equipment, netTotal assets

Liabilities & net assets:Accounts payable & accrued

expensesFunds held in trust for othersOther liabilitiesNotes & bonds payableTotal liabilities

Net assets:UnrestrictedTemporarily restrictedPermanently restrictedTotal net assets

Total liabilities & net assets

Support & revenue:Support:Archbishop’s Catholic Appeal

contributions, netParish assessments, netGrants & contributionsOther supportTotal support

Revenue:AdvertisingProgram & service, netInvestment income, netOther incomeTotal revenueTotal support & revenue

Expenses:Program expenses:Religious education & schoolsCatholic communicationsSocial development Spiritual & pastoral concernsReligious & ordained ministriesEvangelizationGifts & grantsInterest expenseTotal program expenses

Support & administrativeexpenses

Development & fundraisingTotal expenses

Increase (Decrease) in net assets

As of June 30,

2011

$ 8,044,885

4,394,403

12,439,288

251,817

5,836,707

553,736

17,124,965

30,809,374

$ 67,015,887

$ 1,109,456

1,289,763

663,371

4,001,520

7,064,110

50,040,423

9,861,071

50,283

59,951,777

$ 67,015,887

2012

$ 7,879,185

6,930,251

14,809,436

243,828

4,286,680

652,387

14,418,837

29,985,548

$ 64,396,716

$ 797,114

1,000,445

686,974

2,175,998

4,660,531

49,728,043

9,957,859

50,283

59,736,185

$ 64,396,716

2011

$ 7,189,566

5,988,940

1,495,077

178,519

14,852,102

606,691

1,564,333

2,105,771

232,105

4,508,900

19,361,002

2,045,817

2,760,809

806,882

2,362,959

1,735,026

2,471,363

3,843,684

304,041

16,330,581

1,655,268

811,671

18,797,520

$ 563,482

2012

$ 7,697,517

6,152,051

1,093,751

168,232

15,111,551

607,361

1,509,016

206,100

438,747

2,761,224

17,872,775

2,089,828

2,697,039

970,199

2,566,385

2,058,763

2,308,799

2,557,185

80,768

15,328,966

1,870,606

888,795

18,088,367

$ (215,592)

Special collections, net of fees: International / National Combined

Collections (includes Haiti aid)Catholic Campaign for Human

DevelopmentReligious Retirement CollectionsCombined Mission Collections

Total

2011

$ 805,207

34,901

130,639

467,545

$ 1,438,292

2012

$ 1,178,629

27,632

123,179

477,577

$ 1,807,017

Amounts collected for special collections

YEARS ENDED JUNE 30, 2012 AND 2011

Contributions to special collections provide funds for Catholic Relief Services, Holy Land, Peter’sPence, Catholic University of America, Catholic Communications Campaign, Church in Latin America,Church in Central and Eastern Europe, Propagation of the Faith, Catholic Campaign for Human Devel-opment and Religious Retirement and many other worthwhile organizations. The increase in specialcollections in fiscal 2012, as compared to fiscal 2011, is due to the ongoing generosity of the faithful ofnorthern Colorado. Included in the fiscal 2011 totals for international collections is approximately$108,000 for tsunami relief in Japan.

Such contributions are not reflected in the Statement of Activities for the archdiocese as, when thesefunds are collected, they are held in trust for the ultimate benefactor and distributed to such entities.The archdiocese does withhold a modest administrative fee from these special collections before remit-ting such funds to the respective entity or agency within the Church. Such fees cover banking fees andother processing costs and were approximately 5% of total special collections.

SPECIAL COLLECTIONS

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Claims payable. Claims payable represent an estimat-ed aggregate liability based upon actual healthcareclaims data and estimates of claims incurred but notyet reported for the Welfare Benefit Trust. In addition,the Risk Management Trust also records and esti-mates settlement obligations, claims incurred but notreported and related claims-adjustment expenses. Themethods for making such estimates and for establish-ing the resulting liability are continually reviewed, andany adjustments are reflected in the change in net as-sets in the period in which the estimates are changed.

Depreciation. The systematic and rational allocation ofthe cost of an asset over its anticipated useful life.

Investments and investment income. Investments rep-resents the deposits of excess cash funds into long-term certificates of deposit and/or the purchase ofmarketable equity and fixed income securities. Suchinvestments are recorded at their fair value. Invest-ment income consists of the respective entity’s earn-ings from interest and dividends, the realized gains orlosses from sales of such securities, and the change inthe fair value of the underlying investments from peri-od to period.

Endowment. Funds or property donated as a perma-nent source of income. Generally, only the income pro-

duced from the endowment principal is available forexpenditure.

Funds held in trust for others. Amounts temporarily inthe possession of an entity but which are being held forthe benefit of, and ultimate distribution to, another.Funds are held in trust as an asset on the Statement ofFinancial Position as cash or, because they may be tem-porarily invested pending final distribution, as invest-ments. To reflect the fact that funds held in trust are notthe property of the entity, and are in fact owed to others,an offsetting liability also appears on the Statement ofFinancial Position. Examples of funds held in trust in-clude second collections taken on behalf of other organi-zations and pre-need funeral plan payments.

Inventories. Assets held for eventual resale to othersprimarily for gravesites, urns and caskets at theCemeteries and Mortuary.

Net assets. The net assets of an organization, comput-ed by subtracting liabilities from assets. Net assetsare categorized by type, for example, “unrestricted” or“temporarily restricted.”

Parish assessments. In accordance with canon law,parishes within the territory of the archdiocese con-tribute to the mission of the local Church through the

parish assessment. Parishes pay a percentage of theirassessable income, as defined—from a low of 5.26 per-cent to a high of 7.67 percent—depending on variousconditions of the parish.

Permanent restrictions. A donor-imposed restrictionthat stipulates that resources be maintained perma-nently but permits the archdiocese or the related ec-clesiastical entity to expend part or all of the incomederived from the donated assets.

Statement of activities. Reports the amount of change innet assets for a period of time. Revenues, expenses,gains and losses increase or decrease net assets. Otherevents, such as expiration of donor-imposed restrictions,that simultaneously increase one class of net assets anddecrease another are reported as separate items.

Statement of financial position. Reflects the assets, li-abilities and net assets of an entity at a particularpoint in time.

Temporary restrictions. A donor-imposed restrictionthat permits the archdiocese to use up or expend thedonated assets as specified and is satisfied either bythe passage of time or by actions of the archdiocese.

Unrestricted. Support and revenue that has no donorrestriction as to use or purpose.

GLOSSARY OF TERMS

2012 F INANCIAL REPORT l B3DENVER CATHOLIC REGISTER l DECEMBER 12, 2012

2011

7,189,566

5,988,940

1,495,077

178,519

14,852,102

606,691

1,564,333

2,105,771

232,105

4,508,900

19,361,002

2,045,817

2,760,809

806,882

2,362,959

1,735,026

2,471,363

3,843,684

304,041

16,330,581

1,655,268

811,671

18,797,520

Redemptoris Mater House of Formation (Redemp-toris Mater), a Colorado nonprofit corporation, was es-tablished in 1996 by the archdiocese as an archdiocesanmissionary seminary. Redemptoris Mater prepares menfor the priesthood who come from all over the worldready to serve the Catholic Church, according to the di-rection of “Presbyterorum Ordinis” No. 10. Most of thepriests being formed in Redemptoris Mater are to bearchdiocesan priests for the archdiocese and according-ly, the archbishop decides their assignments. Given theuniversal missionary purpose of the Catholic Church,candidates from all over the world help to create anopen environment without discrimination of language,culture or race. Presently, there are 30 men (22 menstudying for the archdiocese, six men studying for theDiocese of Dallas and two men studying for the Dioceseof Pueblo) at Redemptoris Mater. In fiscal 2012, Re-demptoris Mater ordained two men to the priesthood,who now serve within the archdiocese.

Since 1996, 18 Redemptoris Mater seminarians havebeen ordained as priests of the Archdiocese.

St. John Vianney Theological Seminary (St. JohnVianney) is a Colorado nonprofit corporation thatwas established in 1999 to provide seminary forma-tion and other programs for the education of semi-narians, permanent deacons and members of thelaity. In addition to the seminary, St. John Vianneyoperates the Cardinal Stafford Theological Library,the St. Francis School of Theology for Deacons andthe Division of Lay Formation, including theCatholic Biblical School and Catechetical School forthe education of the laity.

Eleven men were ordained priests in fiscal 2012,four of whom serve within the territory of the arch-diocese. Presently, there are 36 men at St. John Vian-ney and, when combined with 22 men from Re-demptoris Mater and 68 men from other dioceses orreligious orders, the total enrollment at St. JohnVianney is 126.

The recurring operations of St. John Vianney Sem-inary for both fiscal 2012 and 2011 were supportedby contributions from the general public, includinga share of proceeds from the annual parish seminaryappeal, grants from the archdiocese made possiblethrough the annual Archbishop’s Catholic Appealcampaign, Mount Olivet Cemetery, the Archdioceseof Denver Mortuary at Mount Olivet, and from vari-ous restricted endowments owned by The CatholicFoundation for the Roman Catholic Church inNorthern Colorado (The Foundation), including ini-tial distributions from the “New Harvest Campaign.”In conjunction with the New Harvest Campaign, TheFoundation established and owns the New HarvestCampaign’s two endowments, one for future capitalrenovation projects and one for an operating en-

dowment for providing long-term sustainability tothe seminaries. Accordingly, the endowments andtheir related activity (pledges, cash payments andrelated contribution revenues) are not recorded inthe financial statements of either St. John Vianney orRedemptoris Mater Seminaries. Instead, grant dis-tributions from the endowments are recorded asGrants & Contributions when received.

In 2012, tuition income increased due to increas-ing enrollment of seminarians from other dioceses

attending St. John Vianney. In-kind contributionswere also received from the chancery for variousservices and overhead costs at the John Paul II Cen-ter. Overall, the decrease in net assets of $131,179declined from the prior year due to increases infundraising and tuition revenues along with a reduc-tion in costs, primarily the non-recurrence of certaingrant expenditures for construction improvements.

ST. JOHN VIANNEY THEOLOGICAL SEMINARY

REDEMPTORIS MATER HOUSE OF FORMATION


Support & revenue:Grants & contributions Fundraising & otherTotal revenue & support

Expenses:Program expensesSupport & administrative

expensesDevelopment and fundraisingTotal expenses

Increase in net assets

2011

$ 1,524,042

210,976

1,735,018

1,486,231

232,352

1,916

1,720,499

$ 14,519

2012

$ 1,496,369

238,536

1,734,905

1,492,546

236,784

204

1,729,534

$ 5,371


Support & revenue:Support:Grants & contributions

Revenue:Program & serviceFundraising & special eventsTuition incomeInvestment & other income, netTotal revenueTotal revenue & support

Expenses:Religious education & schoolsReligious & ordained

ministriesGrant expenditures for

construction improvementsSupport & administrative

expensesDevelopment & fundraisingTotal expenses

Decrease in net assets

2011

$ 2,243,267

94,511

589,685

2,113,989

19,955

2,818,140

5,061,407

1,006,418

3,982,730

371,422

11,362

231,405

5,603,337

$ (541,930)

2012

$ 2,244,814

85,965

671,920

2,333,483

971

3,092,339

5,337,153

1,037,802

4,133,289

48,854

10,685

237,702

5,468,332

$ (131,179)

FAMILY OF NAZARETH INC.


Assets:Cash & cash equivalentsOther assetsProperty & equipment, netTotal assets

LiabilitiesAccounts payable & accrualsDeferred revenueTotal liabilities

Net assets:UnrestrictedTemporarily restrictedTotal net assets


As of June 30,

2011

$ 577,160

235,000

692,044

$ 1,504,204

$ 8,922

379,695

388,617

909,477

206,110

1,115,587

$ 1,504,204

2012

$ 356,046

-

692,044

$ 1,048,090

$ 5,022

23,250

28,272

813,708

206,110

1,019,818

$ 1,048,090


Support & revenue:Grants & contributions

Revenue:Program revenuesNet gain from sale of Prop/EquipmentInvestment & other incomeTotal revenueTotal revenue & support

Expenses:Program expensesGrants expendituresSupport & administrative

expensesTotal expenses


2011

$ 298,701

-

44,894

100

44,994

343,695

277,640

48,340

37,148

363,128

$ (19,433)

2012

$ 274,132

412,940

-

182

413,122

687,254

695,273

73,106

14,644

783,023

$ (95,769)

Family of Nazareth is a Colorado nonprofit corpora-tion established in 1998. The Family of Nazareth pri-marily assists Redemptoris Mater Archdiocesan Mis-sionary Seminary and supports the work of the newevangelization and all persons connected with themission of the Neocatechumenal Way of the RomanCatholic Church. Since 1998, the Family of Nazarethhas procured real and personal properties as deemednecessary to carry out the missionary work of the newevangelization.

Family of Nazareth’s net assets decreased by $95,769 in2012 as compared to a decrease of $19,433 in fiscal 2011.During 2012, Family of Nazareth realized program rev-enues of $412,940 for services provided for World YouthDay, which was held in Madrid, Spain, in August 2011.

Program expenses in fiscal 2012 increased as a resultof travel and other costs associated with more than 150pilgrims attending World Youth Day. Other programexpenses and grant expenditures reflect the ongoingsupport of the new evangelization in Denver, the Unit-ed States and worldwide.

EDUCATION AND FORMATION


Assets:Cash & cash equivalentsPrepaid expenses & other assetsContribution & accounts

receivable, netProperty & equipment, netTotal assets

Liabilities & net assets:Accounts payable & accrualsFunds held in trust for others Deferred tuition incomeTotal liabilities



As of June 30,

2011

$ 1,086,387

255,592

7,250

500,459

$ 1,849,688

$ 291,206

11,417

101,824

404,447

1,139,697

280,544

25,000

1,445,241

$ 1,849,688

2012

$ 951,892

237,937

67,738

369,414

$ 1,626,981

$ 211,204

17,868

83,847

312,919

1,064,700

224,362

25,000

1,314,062

$ 1,626,981


Assets:Cash & cash equivalentsOther assetsDue from other AODProperty & equipment, netTotal assets

Liabilities & net assets:Accounts payable & accruals

Net assets (deficit):UnrestrictedTemporarily restrictedTotal net assets


As of June 30,

2011

$ 13,545

49,039

8,403

13,867

$ 84,854

$ 7,941

60,340

16,573

76,913

$ 84,854

2012

$ 4,622

61,678

-

24,602

$ 90,902

$ 8,618

51,202

31,082

82,284

$ 90,902

GRANT AND OTHER FUNDING TO CATHOLIC SCHOOLS AND EDUCATION MINISTRY PROGRAMSThe Archdiocese of Denver Catholic Schools com-

prises the largest private school system in Colorado.Located in 18 cities in northern Colorado, 37 parishschools and two high schools educated 9,616 stu-dents during the school year ended in June 2012. Themajority of Catholic school revenue comes from thesacrifice families make to pay tuition, and while thisis a generous investment, it is not sufficient to coverthe salaries and related benefit costs of faculty andstaff. Accordingly, these schools also rely on fundrais-ing, parish support and philanthropy to survive fi-nancially. In contrast, the majority of revenue for

public schools comes from taxpayers, whether theyare users of the services or not. For the 2011-2012school year, Catholic schools and related education-al ministry programs of the archdiocese receivedmore than $5.9 million in grants and other supportthrough The Catholic School Assistance Fund (CSAF)into which each parish contributes, The Seeds ofHope Charitable Trust, The Catholic Foundation, andthe Archdiocese of Denver (through the Archbishop’sCatholic Appeal). The financial help of each of theseentities allows Catholic education to be made avail-able to as many families as possible.

Based on the teachings of Jesus Christ, Holy FamilyHigh School Inc. (HFHS) seeks to provide a Catholiclearning environment that stresses academic excel-lence, fosters mutual respect, demands responsibilityand encourages self-growth. Nearly 5,000 men andwomen have benefited from their HFHS experience,sharing with their families, communities and beyond,the faith, values and learning developed by theirCatholic education. HFHS is a Colorado nonprofit cor-poration established in 1999 and is located in Broom-field. HFHS is celebrating 90 years of excellence in ed-ucation and continues the tradition of a family of faithinvesting in the future of our young people and ourChurch.

For the school year ending June 2012, HFHS gradu-ated 142 seniors, who received $16.0 million in merit-based scholarships to attend colleges and universitiesthroughout the United States. For the current schoolyear that began in August of 2012, HFHS is near its ca-pacity, educating over 600 students.

HFHS’s loss from operations was $578,787 in fiscal2012 compared to $638,493 in fiscal 2011. Average en-rollment for the 2011/2012 school year of 570 studentswas more than the 558 students for the 2010/2011school year, resulting in an increase of $218,972 in op-erating revenue in fiscal 2012.

Operating expenses were $159,266 higher in fiscal2012 compared to fiscal 2011 due to higher personnelcosts in fiscal 2012. The fiscal 2012 and 2011 lossesfrom operation include depreciation totaling $591,210and $598,525, respectively.

During 2012, HFHS concluded the “A Growing Tra-dition” capital campaign that began in 2006 andraised, on a cumulative basis, nearly $1.0 million forvarious restricted purposes. One of these projects

was to finish the landscape of the track and footballfields, and through the generosity of a group ofdonors and funds from the capital campaign, a con-cession stand was built to serve the school’s loyalfootball, baseball, track and cross country fans.


Bishop Machebeuf High School Inc. (BMHS) is aCatholic college preparatory high school that is commit-ted to integrating faith formation and supporting a di-verse, college-bound community. BMHS is a Coloradononprofit corporation, established in 1999, located inthe Lowry neighborhood of east Denver. BMHS was ini-tially founded in 1958 as a coeducational Catholicschool for students in grades nine through 12. BMHS’svision is to be a dynamic educational community en-veloped in the rich tradition of the Catholic Church andthe Gospels of Jesus Christ. BMHS is recognized for itscommitment to faith, academic excellence, ethnic vari-ety and service to others.

BMHS takes great pride in being the only Catholichigh school in Colorado to be recognized in 2006, 2007,2008 and 2012 as one of the Top 50 Catholic HighSchools in the United States by the Cardinal NewmanSociety (formerly the Acton Institute). Students whosucceed at BMHS are those who live their faith and striveto make a difference, both as individual Catholic citizensand as members of this academic community of faith.For the school year ending June 30, 2012, BMHS gradu-ated 72 seniors who were awarded merit-based scholar-ships totaling $5.8 million.

During fiscal 2012, BMHS celebrated the remarkableaccomplishment that 100 percent of its graduating sen-ior class gained admission to colleges and universitiesnationwide for the second year in a row. For the currentschool year, which began in August 2012, BMHS is edu-cating 361 students.

BMHS’s loss from operations totaled $594,420 for fis-cal 2012. Actual enrollment for the fiscal 2012 schoolyear ended at 358 students. For fiscal 2011, the operatingloss totaled $412,055 and actual enrollment was 366 stu-dents. The increase in operating loss in fiscal 2012 is pri-

marily due to an increase in operating expenses as a re-sult of higher personnel costs; unexpected repair andmaintenance costs; and a decrease in operating revenuedue to the necessity for increased financial aid andscholarships.

The loss from operations at BMHS includes depre-ciation expense totaling $426,789 in 2012 and$390,245 in 2011. Excluding depreciation expense,BMHS has generated cash from operations for three

consecutive years. Such accomplishments would notbe possible without the generous donations and phil-anthropic support for financial aid that BMHS has re-ceived over the years.

During 2012, BMHS concluded its “Building on a Tra-dition of Excellence” capital campaign that began in2008 and raised, on a cumulative basis, more than $2.2million for restricted purposes.


Assets:Cash & cash equivalentsCash & short-term investments

held in trust or restrictedTotal cash & short-term investmentsTuition receivable and other

assets, netContributions receivable and

other assets, netInvestmentsProperty & equipment, netTotal assets


expensesFunds held in trust for othersTuition & fees paid in advanceTotal liabilities



As of June 30,

2011

$ 887,344

305,493

1,192,837

11,106

27,868

2,928,027

10,760,152

$ 14,919,990

$ 147,715

88,130

522,544

758,389

10,995,988

665,613

2,500,000

14,161,601

$ 14,919,990

2012

$ 947,271

140,063

1,087,334

12,532

-

2,951,101

10,632,909

$ 14,683,876

$ 188,469

97,071

568,860

854,400

10,837,492

352,784

2,639,200

13,829,476

$ 14,683,876


Operating revenues:Tuition income, netInterparish school assistanceStudent fees & other operating

revenuesTotal operating revenue

Operating expensesEducational salaries & direct

expensesFacilities & educational

administrationSupport & administration Total operating expensesLoss from operations

Non-operating support & expenses:ContributionsSpecial events, net of expensesInvestment income (loss), netDevelopment, fundraising

& other expensesNet non-operating support


2011

$ 3,852,766

400,000

441,576

4,694,342

3,382,825

1,644,881

305,129

5,332,835

(638,493)

91,859

184,703

417,548

(263,053)

431,057

$ (207,436)

2012

$ 3,950,478

462,400

500,436

4,913,314

3,449,823

1,724,217

318,061

5,492,107

(578,787)

296,768

203,283

28,299

(281,688)

246,662

$ (332,125)


Assets:Cash & cash equivalentsCash & short-term investments

held in trust or restrictedTotal cash & short-term investmentsTuition receivable, netPrepaid expenses & other assetsContribution receivablesProperty & equipment, netTotal assets


expensesDue to other related entitiesTuition & fees paid in advanceFunds held in trust for othersNote payable to archdioceseTotal liabilities



As of June 30,

2011

$ 119,632

984,250

1,103,882

19,549

19,231

288,313

8,279,357

$ 9,710,332

$ 270,372

152,960

297,042

58,995

452,888

1,232,257

7,365,977

1,112,098

8,478,075

$ 9,710,332

2012

$ 108,955

934,181

1,043,136

25,730

24,243

83,450

8,110,161

$ 9,286,720

$ 302,299

411,761

59,089

402,888

1,176,037

7,140,658

970,025

8,110,683

$ 9,286,720

Years Ended June 30

A wide range of information addressing investment opportunities and frequently

asked questions about our Catholic schools is available on the Archdiocese of

Denver website: www.archden.org/index.cfm/ID/2231/Frequently-Asked-Questions/.

Funding Sources 2011 (Actual) 2012 (Actual) 2013 (Projected)

Archdioceseof Denver $ 950,100 $ 609,400 $ 730,300

The CatholicFoundation $ 1,053,000 $ 680,000 $ 665,000

Seeds of Hope $ 1,251,000 $ 1,371,300 $ 1,277,700

Catholic SchoolsAssistance Fund $ 3,088,000 $ 3,287,300 $ 3,429,600

Total $ 6,342,100 $ 5,948,000 $ 6,102,600


Operating revenues:Tuition income, netInterparish school assistanceStudent fees and other operating

revenuesTotal operating revenue

Operating expensesEducational salaries & direct

expensesFacilities & educational

administrationSupport & administrationTotal operating expensesLoss from operations

Non-operating support and ex-penses:Capital campaign, netGrants & other contributionsSpecial events, net of expensesInvestment & other incomeDevelopment, fundraising & other

expensesNet non-operating support

Increase (Decrease) in net assets

2011

$ 2,697,251

233,400

373,912

3,304,563

1,934,038

1,378,433

404,147

3,716,618

(412,055)

272,414

255,553

85,498

6,200

(131,563)

488,102

$ 76,047

2012

$ 2,668,433

238,400

374,562

3,281,395

2,018,513

1,430,016

427,286

3,875,815

(594,420)

35,023

216,288

89,432

4,290

(118,005)

227,028

$ (367,392)

HOLY FAMILY HIGH SCHOOL INC.

BISHOP MACHEBEUF HIGH SCHOOL INC.


The mission of the Seeds of Hope Charitable Trust(Seeds of Hope) is to make the tremendous benefits of aCatholic education available to economically disadvan-taged children of all faiths. Since its inception in 1996,Seeds of Hope has assisted nearly 14,000 students withmore than $23.0 million in assistance. The studentsserved have grown into successful high school students,college graduates, and flourishing members of the sur-rounding communities.

Through its tuition assistance programs, Seeds ofHope supports the Catholic elementary and highschools that serve low-income, high-risk populations.While Seeds of Hope focuses on five Schools in UrbanNeighborhoods (S.U.N.) and seven Focus schools, dur-ing the 2011-2012 school year, assistance was providedto students in 27 parish schools in northern Colorado.During the year ended June 30, 2012, Seeds of Hope pro-vided approximately $1.4 million of assistance to morethan 940 students.

In fiscal 2012, Seeds of Hope’s net assets decreased by$452,663 as compared to an increase in net assets of$1,486,750 in fiscal 2011. This change is primarily attrib-utable to investment returns between the two years. Inaddition, Seeds of Hope received a $400,000 grant in fis-cal 2011 from the Daniels Fund to be paid over fouryears. Such grant was recognized, in its entirety for fi-nancial reporting purposes, in fiscal 2011.

While Seeds of Hope is fortunate to maintain variousendowment funds totaling more than $7.3 million as ofJune 30, 2012, the annual spending restrictions of suchendowments limit the amount of grant awards that canbe made in any given year. Accordingly, ongoingfundraising efforts and donations are essential to pro-vide much needed tuition assistance.

Please visit www.seedsofhopetrust.org for more infor-mation and to donate.

MORTUARY AND CEMETERIES

The Archdiocese of Denver Mortuary (the mortuary),located on the grounds of Mount Olivet Cemetery, is aColorado nonprofit corporation committed to servingthe Church as a symbol of the community of faith unbro-ken by death. The mortuary began offering funeral serv-ices in 1981 to the Catholic community of northern Col-orado. It was established by the archdiocese to ensurethat proper dignity would be provided to the beloveddead and their grieving families. Additionally, the mortu-ary was established to offer funeral services at affordablecosts to the Catholic community, especially the poor.

During fiscal 2012 and 2011, the mortuary providedfuneral services to 590 and 602 families, respectively. In-cluded in these numbers are services to the County So-cial Services offices for 106 cases in 2012 and 102 casesin 2011. Accordingly, the mortuary contributed morethan $322,000 in care services to the poor and their fam-ilies in 2012.

Income from operations during fiscal 2012 of$156,547 combined with investment income of $99,063resulted in a modest increase in net assets. Overall, theincrease in net assets of $255,610 in fiscal 2012 wasdown from the comparable amount in 2011 due to thedecline in the number of funeral services and in invest-ment returns in 2012.

The mortuary’s board continued its long-standing tra-

dition of funding other ministry programs in the arch-diocese when it approved respective grants of $31,000and $69,000 to St. John Vianney and Redemptoris Materseminaries in fiscal 2012 as compared to respectivegrants of $55,400 and $144,600 in fiscal 2011.


Support & revenue:Mortuary salesMiscellaneousTotal support & revenue

Expenses:Mortuary operating expensesGifts & grantsSupport & administrative


Income from operations beforeinvestment return

Investment income, net


2011

$ 2,811,547

88,888

2,900,435

2,110,816

200,000

341,484

2,652,300

248,135

2,427,938

$ 2,676,073

2012

$ 2,732,244

3,702

2,735,946

2,124,771

100,000

354,628

2,579,399

156,547

99,063

$ 255,610


Assets:Cash & cash equivalentsParish assessments receivables, netContribution receivablesRestricted investmentsOther assets, netTotal assets

Liabilities & net assets:Accounts payable & accrualsTotal liabilities



As of June 30,

2011

$ 1,332,509

41,020

595,150

7,845,313

17,232

$ 9,831,224

$ 25,671

25,671

1,311,452

775,836

7,718,265

9,805,553

$ 9,831,224

2012

$ 1,405,097

47,324

433,991

7,487,494

7,939

$ 9,381,845

$ 28,955

28,955

1,294,533

723,851

7,334,506

9,352,890

$ 9,381,845


Assets:Cash & cash equivalentsAccounts receivable, net

Prepaid expenses & otherRestricted investmentsProperty & equipment, netTotal assets


liabilitiesPre-need trustTotal liabilities

Net assets:UnrestrictedTemporarily RestrictedTotal Net Assets


As of June 30,

2011

$ 1,211,971

1,434,375

50,627

15,519,769

42,189

$ 18,258,931

$ 177,028

9,862,590

10,039,618

8,219,097

216

8,219,313

$ 18,258,931

2012

$ 1,282,012

1,359,874

61,933

16,048,477

47,780

$ 18,800,076

$ 146,893

10,178,260

10,325,153

8,474,707

216

8,474,923

$ 18,800,076


Support and revenue:Gifts and grants, netSpecial events, netParish assessmentsTotal support and revenue

ExpensesGrants to schools and studentsGrant making expensesTotal program expenses

Supporting servicesManagement and generalDevelopment and fundraisingTotal supporting servicesTotal expenses

Income (loss) from operationsbefore investment return

Investment income (loss), net

Increase (decrease) in net assets

2011

$ 1,115,448

483,172

250,235

1,848,855

1,251,350

125,874

1,377,224

113,812

257,859

371,671

1,748,895

99,960

1,386,790

$ 1,486,750

2012

$ 656,680

570,354

256,486

1,483,520

1,371,277

85,058

1,456,335

115,498

206,346

321,844

1,778,179

(294,659)

(158,004)

$ (452,663)

SEEDS OF HOPE CHARITABLE TRUST

Mount Olivet Cemetery Association (Mount Olivet)is a Colorado nonprofit corporation and is located inWheat Ridge. It was consecrated in 1891. By buryingthe dead and comforting the bereaved, the staff ofMount Olivet teaches the faithful to look beyondearthly existence and thereby deepen faith in eternalsalvation and life everlasting in the Lord.

During fiscal 2012 and 2011, Mount Olivet providedburial services to 1,623 and 1,581 families, respective-ly. Total cemetery sales revenue in fiscal 2012 reflecteda decrease of 14.2 percent from fiscal 2011 due to therecognition in fiscal 2011 of revenues of crypts andniches for the newly opened St. Francis of Assisi Mau-soleum. Approximately $830,000 of the new mau-soleum’s revenues recognized in fiscal 2011 reflectedsales that originated in 2010 but were deferred untilthe mausoleum opened. Included in the funeral serv-ices data above are services to the County Social Serv-ices offices for 372 cases in 2012 and 384 cases in 2011.Accordingly, Mount Olivet contributed more than$675,500 in care services to the poor and their familiesin fiscal 2012.

The decline in investment returns in fiscal 2012 wasa primary reason for the significant fluctuation in theincrease in net assets during fiscal 2011 as comparedto 2012. However, the contribution realized from the

forgiveness of debt by the Perpetual Care Trust (seeCemeteries Perpetual Care Trust) more than offset thedecline in investment results.

Mount Olivet’s board continued its long-standingtradition of funding other ministry programs in the

archdiocese when it approved respective grants of$157,000 and $343,000 to St. John Vianney and Re-demptoris Mater seminaries in fiscal 2012 as com-pared to respective grants of $139,000 and $361,000 infiscal 2011.


Assets:Cash & cash equivalentsInventoriesAccounts receivable, netNote receivable from St. SimeonRestricted investmentsProperty & equipment, netTotal assets


expensesPre-need trustNote payable to perpetual trustTotal liabilities

Net assets:Unrestricted


As of June 30,

2011

$ 3,012,542

2,962,657

3,058,439

1,082,420

8,206,987

3,111,861

$ 21,434,906

$ 221,468

5,261,220

2,415,392

7,898,080

13,536,826

$ 21,434,906

2012

$ 3,186,083

2,746,259

2,945,135

1,170,555

8,531,250

3,052,829

$ 21,632,111

$ 213,137

5,525,380

-

5,738,517

15,893,594

$ 21,632,111

MOUNT OLIVET CEMETERY ASSOCIATION


Support & revenue:Cemetery salesMiscellaneous support, netRental incomeTotal support & revenue

Expenses:Gifts & grantsCemetery operating costsSupport & administrative


Income (loss) from operationsbefore investment return andcontributionsContribution for debt forgivenessInvestment income, net


2011

$ 5,180,903

155,075

200,000

5,535,978

500,000

3,680,805

637,211

4,818,016

717,962

-

1,270,682

$ 1,988,644

2012

$ 4,335,811

164,694

250,266

4,750,771

500,000

3,415,695

707,849

4,623,544

86,390

2,229,541

40,837

$ 2,356,768

ARCHDIOCESE OF DENVER MORTUARY AT MOUNT OLIVET INC.

The Archdiocese of Denver Management Corpora-tion (the Management Corporation) is a Coloradononprofit corporation that provides payroll, account-ing, real estate, construction, financial planning, hu-man resources, and other management services to thearchdiocese, the parishes in northern Colorado andvarious ecclesiastical entities, pursuant to serviceagreements.

During fiscal 2012, the Management Corporation’ssupport and administrative expenses increased by ap-proximately $340,000. This increase was due to mod-est salary and benefit increases and technology ex-penses. In addition, management wrote-off $181,496in costs related to the implementation of certain soft-ware modules which have no future value. Significantservices provided by the Management Corporationduring fiscal 2012 included the following:

The Office of Information Systems (OIS) continuedto implement the strategic technology plan for thearchdiocese to improve operating efficiencies and en-hance decision-making capabilities. During 2012, OISimplemented the Raiser’s Edge fundraising softwareto record, maintain and account for the annual Arch-bishop’s Catholic Appeal and other fundraising eventsin the archdiocese. This software now allows the arch-diocese to accept online donations.

The Office of Parish Finance (OPF) continues to train,educate, support and assist parish staff in the applica-tion of proper business practices for parish manage-ment. The OPF conducted numerous training sessions

throughout the past year to assist parish business man-agers and new or reassigned pastors in their positions.

Construction management services for parishesand related ecclesiastical entities involved the over-sight of 34 new projects with an estimated value of$9.7 million in fiscal 2012 as compared to 33 projectsvalued at $26.5 million in fiscal 2011. In fiscal 2012, 39

construction projects were completed within north-ern Colorado with a value of approximately $17.8 mil-lion as compared to 40 projects valued at $14.9 millionin fiscal 2011.

Real estate services for the archdiocese, parishesand related ecclesiastical entities in fiscal 2012 includ-ed the purchase of nine new properties, valued at $4.6million, the sale of real estate valued at $1.1 million,and 56 leasing transactions, valued at $1.0 million.

The Internal Audit department visited 83 parishesand issued 72 reports in fiscal 2012. The Internal Auditdepartment also oversees the Parish Review Program,in which another 26 parishes were reviewed by exter-nal CPA firms during fiscal 2012.


ARCHDIOCESE OF DENVER MANAGEMENT CORPORATION

St. Simeon Cemetery (St. Simeon), located in Aurora,is a Colorado nonprofit corporation that was establishedin 2000. St. Simeon provided burial services to 91 fami-lies in both fiscal 2012 and 2011. Of these burial services,

Social Service cases totaled 60 and 59 in fiscal 2012 andfiscal 2011 respectively. In essence, St. Simeon con-tributed more than $189,000 in care services to the poorand their families in 2012.

The Board of Directors of St. Simeon and managementhave anticipated that the financial results of St. Simeonwill generate operating losses until St. Simeon’s advertis-ing and referral efforts increase interest in the cemetery.This year’s operating loss reflects a $50,000 increase fromthe prior year. Careful monitoring of operating costs con-tinues to be a priority of management of St. Simeon.

OTHER TRUSTS AND ARCHDIOCESAN ENTITIES

CEMETERIES PERPETUAL CARE TRUSTThe Perpetual Care Trust (the Trust) funds are dedi-

cated in perpetuity for the ongoing maintenance ofthe beautiful pastoral setting that characterizes bothMount Olivet and St. Simeon Cemeteries. The ceme-teries may set aside a pre-determined percentage ofthe gross sales price of each grave and crypt sold andinvest such funds in a Trust. During the years endedJune 30, 2012, and 2011, the cemeteries did not con-tribute to the Perpetual Care Trust based on Manage-ment’s analysis of the adequacy of such funding.

In accordance with the purpose of the Trust, the Trustfunded various renovation costs of $166,683 at bothMount Olivet and St. Simeon Cemeteries in 2012 ascompared to $137,055 in fiscal 2011. In addition, duringfiscal 2010 and 2011, the Trust provided financing toMount Olivet Cemetery to fund the construction of theSt. Francis of Assisi Mausoleum. After careful considera-tion, the Trustees elected to forgive the balance due on

the note obligation of $2.2 million in December 2011.This contribution has been reflected as Gifts and Grantsin the Trust’s financial statements in fiscal 2012.


Support & revenue:Investment income, netLoan InterestTotal Support & revenue

Expenses:Gifts & grantsSupport & administrative



2011

$ 1,746,621

51,799

1,798,420

137,055

20,884

157,939

$ 1,640,481

2012

$ 66,668

32,500

99,168

2,396,224

21,857

2,418,081

$ (2,318,913)


Assets:Cash & cash equivalentsPrepaid expensesNote receivableRestricted investmentsTotal assets

Liabilities & net assets:Accounts payableOther liabilitiesTotal Liabilities



As of June 30,

2011

$ 2,688

2,278

2,415,392

12,296,629

$ 14,716,987

$ 6,547

137,055

143,602

14,573,385

$ 14,716,987

2012

$ 254,145

1,975

-

12,005,978

$ 12,262,098

$ 7,626

-

7,626

12,254,472

$ 12,262,098


Assets:Cash & cash equivalentsAccounts receivable, net of

allowancesInventories and prepaid assetsInvestmentsProperty & equipment, netTotal assets

Liabilities & net assets:Accounts payableNote payable to Mt. OlivetPre-need trustTotal liabilities



As of June 30,

2011

$ 1,003

105,289

856,192

75,704

4,166,990

$ 5,204,378

$ 13,159

1,082,420

86,144

1,181,723

4,019,050

3,605

4,022,655

$ 5,204,378

2012

$ 1,000

97,503

837,542

94,264

4,085,658

$ 5,115,967

$ 10,324

1,170,555

100,188

1,281,067

3,830,795

4,105

3,834,900

$ 5,115,967

ST. SIMEON CEMETERY ASSOCIATION

PHOTO BY JAMES BACA/DCR

ST. SIMEON Cemetery


Assets:Cash & cash equivalentsPrepaid expenses & other assetsAccounts & other receivables, netDue from other related entities &

parishesProperty & equipment, netTotal assets


expensesFunds held in trust for othersDue to other related entitiesTotal liabilities

Net assets


As of June 30,

2011

$ 937

49,180

47,318

178,562

1,049,216

$ 1,325,213

$ 709,514

461

30,703

740,678

584,535

$ 1,325,213

2012

$ -

79,074

221,566

97,517

754,552

$ 1,152,709

$ 546,738

-

23,567

570,305

582,404

$ 1,152,709


Support & revenue:Management & service feesGifts & Grants, netTotal support & revenue

Expenses:Support & administrative

expensesWrite-off of impaired assetsTotal expenses


2011

$ 5,098,658

816,194

5,914,852

5,397,875

-

5,397,875

$ 516,977

2012

$ 5,917,322

-

5,917,322

5,737,507

181,496

5,919,453

$ (2,131)


Support & revenue:Cemetery salesGrants & ContributionsInvestment income (loss), netOther incomeTotal support & revenue

Expenses:Cemetery operating costsSupport & administrative



2011

$ 526,033

14,258

(158)

9

540,142

503,945

173,291

677,236

$ (137,094)

2012

$ 466,551

2,885

(235)

78

469,279

464,601

192,433

657,034

$ (187,755)


The Archdiocese of Denver Irrevocable RevolvingFund Trust (the Trust) answers the Church’s call up-on parishes and ecclesiastical entities within north-ern Colorado to help one another spiritually and fi-nancially. The Trust serves as the primary source ofproject financing to parishes and other ecclesiasticalentities in Northern Colorado at affordable rates.The Trust currently pays a very competitive rate of.50 percent to depositors on their savings accountsheld in the Trust. Such deposits have no restrictionsas to terms, minimum balances or contain early-withdrawal penalties.

While the Trust holds legal title to its assets, theequitable and beneficial owners of its assets belongto, and are owned by, each parish and other relatedecclesiastical entities participating in the Trust. De-posits to the Trust are encouraged but not mandat-ed. The assets, deposits and other accounts of thetrust are administered by an independent financialinstitution acting as the trustee.

Net interest income decreased from $856,613 infiscal 2011 to $832,387 in 2012. The Trust also recog-nized a net realized and unrealized loss of $110,478during fiscal 2012 from its investment portfolio ascompared to $20,876 during the prior fiscal year.Nevertheless, net income for fiscal 2012 exceededmanagement’s expectations at $556,058.

During fiscal 2012 the Trust continued to invest invery conservative and stable short-term bond andtreasury funds managed by PIMCO and Vanguard.There is no exposure to equity stock holdings.

The management committee of the Trust, com-prised of four priests and a lay member, approvedeight new loans in fiscal 2012 to parishes totaling

more than $2.7 million as compared to $5.5 millionin fiscal 2011. The Trust continues to have availableliquidity and the ability to fund parish and other re-lated entities’ construction and renovation projectsboth currently and for the foreseeable future.


Interest income:LoansInvestmentsTotal interest income

Interest expenseNet interest income

Realized and Unrealized gains(losses) from investments, net

Other expenses, net:Trustee feesGeneral & administrative

expensesTotal other expenses


2011

$ 574,486

509,559

1,084,045

227,432

856,613

(20,876)

73,976

103,459

177,435

$ 658,302

2012

$ 576,951

440,710

1,017,661

185,274

832,387

(110,478)

58,673

107,179

165,852

$ 556,057


Assets:Cash & cash equivalentsPrepaid expenses & otherLoans receivableInvestmentsTotal assets

Liabilities & net assets:Due to related entities & otherSaving depositsTotal liabilities



As of June 30,

2011

$ 11,695,494

268

16,654,753

21,180,641

$ 49,531,156

$ 21,851

44,926,623

44,948,474

4,582,682

$ 49,531,156

2012

$ 7,060,249

266

19,149,439

17,497,145

$ 43,707,099

$ 25,598

38,542,762

38,568,360

5,138,739

$ 43,707,099

ARCHDIOCESE OF DENVER IRREVOCABLE REVOLVING FUND TRUST

Statements of Financial Position Statements of ActivitiesYEARS ENDED JUNE 30, 2012 AND 2011

AssetsProperty & equipment, net

Liabilities & net assets:LiabilitiesUnrestricted assets


Revenue:Grants & contributionsTotal revenue

Expenses:Program expenses - Depreciation


As of June 30,

2011

$ 2,467,012

$ -

2,467,012

$ 2,467,012

2012

$ 2,454,243

$ -

2,454,243

$ 2,454,243

2011

$ -

-

12,770

$ (12,770)

2012

$ -

-

12,769

$ (12,769)

The John Paul II Center, a Colorado nonprofit cor-poration, is located at 1300 S. Steele St. in southDenver and was established in 1996. The center pro-vides Catholics with a gathering place for meetings,media education, marriage preparation classes,liturgies and classroom instruction in Scripture andChurch doctrine. In addition, the John Paul II Center

houses the Archdiocese of Denver’s chancery, the St.John Vianney Theological Seminary, the Redemp-toris Mater Archdiocesan Missionary Seminary, OurLady of Mercy Convent and the Cardinal StaffordTheological Library, which contains 150,000 vol-umes and is considered the finest such theologicalresource between Chicago and Los Angeles.

JOHN PAUL II CENTER FOR THE NEW EVANGELIZATION

The Archdiocese of Denver Risk Management andProperty/Casualty Insurance Trust (the Risk Man-agement Trust) strives to protect parishes and otherparticipating ecclesiastical entities within the terri-tory of the archdiocese from catastrophic financialloss. Prevention and other cost-containment meas-ures are stressed to minimize risk and control plancosts. Archdiocesan entities and parishes within theterritory of the archdiocese pay premiums to theRisk Management Trust.

The Risk Management Trust is partially self-fund-ed and bears the financial loss on claims up to cer-tain limitations of acceptable risk. Traditional in-demnity insurance policies cover losses exceedingthe fund’s risk limitations. The staff of the Risk Man-agement Trust coordinates safety, compliance withenvironmental law and risk-awareness programs forparishes, schools and other participating organiza-tions within the territory of the archdiocese. Duringfiscal 2012, the Risk Management Trust processed138 workman’s compensation claims, valued at $1.0million and 120 property and casualty insuranceclaims totaling $1.1 million (excluding Camp St. Ma-lo). During fiscal 2011, 119 workman’s compensa-tion claims totaling $387,500 and 98 property andcasualty claims totaling $703,000 were processed.

The Risk Management Trust significantly in-

creased its net assets by $1.4 million during fiscal2012. This improvement is attributable to a decrease

in litigation costs related to claims. Additionally, theRisk Management Trust realized favorable claims ex-perience related to its self-funded claims under theproperty and workers’ compensation insurance pro-grams.

ARCHDIOCESE OF DENVER RISK MANAGEMENT AND PROPERTY/CASUALTY INSURANCE TRUST


Support & revenue:Self insurance premiums &

insurance billingsInvestment incomeMiscellaneous, netTotal support & revenue

Expenses:Self insurance claims, premiums,

settlements & other costsSupport & administrative



2011

$ 5,324,043

5,652

92,447

5,422,142

2,640,888

399,212

3,040,100

$ 2,382,042

2011

$ 5,000,575

4,061

1,079

5,005,915

3,255,245

350,027

3,605,272

$ 1,400,443


Assets:Cash & cash equivalentsPrepaid expenses & other assetsAccounts receivableDue from parishes & other related

entities, net Property & equipment, netTotal assets


expensesDue to other related entitiesClaims payable

Total liabilities



As of June 30,

2011

$ 4,376,402

204,721

35,555

395,002

679

$ 5,012,359

$ 35,894

98,709

713,178

847,781

4,164,578

$ 5,012,359

2012

$ 5,649,221

77,435

35,555

410,715

804

$ 6,173,730

$ 143,707

-

465,002

608,709

5,565,021

$ 6,173,730

PHOTO BY JAMES BACA/DCR

THE JOHN Paul II Center for the New Evangelization


Camp St. Malo Retreat Center (the Center) is lo-cated on 160 acres at the base of Mount Meeker, sur-rounded by the Roosevelt National Forest and RockyMountain National Park.

Sadly, a significant fire occurred at the Center onNov. 14, 2011. Gratefully, no one was injured duringthe fire, the memorabilia from the Camp St. Maloyouth camp days and Pope John Paul II’s visit to theCenter in 1993 were saved, and the Blessed Sacra-ment was safely reposed. However, significant por-tions of the retreat and conference facilities, includ-ing the conference center, dining room and kitchen,related equipment, records and other assets weredestroyed. While the historic St. Catherine chapel lo-cated on the grounds of Camp St. Malo was not im-pacted by the fire, the guest lodging units were dam-aged extensively but were determined to not be a to-tal loss at this time. The effects of the fire have madethe Center inoperable and have been devastating tothe ministry of St. Malo, the CLM/SCV communityand the former St. Malo employees.

Since November 2011, St. Malo has been closedand will remain so for an indefinite period of time.Management of St. Malo, with the assistance of theManagement Corporation, is handling variousproperty issues and is evaluating options as to thebest utilization of the property going forward, in-cluding the propriety of rebuilding a new retreat andconference center facility and repairing the guestlodging at the existing site or, rebuilding elsewhere.In October 2012, the board of directors of Camp St.Malo hired an independent consultant to conduct asurvey of the priests, religious, former customers,and many other interested parties to obtain theirfeedback and reflections on Camp St. Malo.

During fiscal 2012, Camp St. Malo recorded a lossof $2,108,759 representing the impairment in valueto the property and equipment impacted by the fire.

In addition, Camp St. Malo incurred other costs re-lated to securing the property, clean-up efforts andother related costs. Such costs totaled $93,740 dur-ing fiscal 2012 and were expensed. While manage-ment anticipates reimbursement of some of thesecosts from insurance proceeds, no receivable hasbeen recorded for such claims as of June 30, 2012.Certain clean-up costs incurred at the facility in fis-cal 2012 were approved and paid directly by the in-surance carriers.

Camp St. Malo maintains a comprehensive prop-erty and general liability insurance coverage withloss limits management believes will provide sub-stantial and broad coverage for the losses from thefire. Management continues working with its insur-ance carrier and third party consultants to deter-mine the extent of the losses at this time.

While significant losses have been recognized

during fiscal 2012, management anticipates signifi-cant insurance recoveries may be recorded duringthe fiscal year ending June 30, 2013, once a final set-tlement with the insurance carriers is determined.However, for financial reporting purposes, such re-coveries will not be recorded until they are realizedfrom the insurance carriers.

From 2003 to 2011, the Center was operated by theChristian Life Movement (CLM) and the SodalitiumChristianae Vitae (SCV), a society of apostolic life. Asa result of the fire, the lease and operating agree-ments with CLM and SCV were terminated in Janu-ary 2012. The archdiocese is now exploring otherministry options for the CLM/SCV community.

CAMP ST. MALO CATHOLIC RETREAT, CONFERENCE AND SPIRITUAL CENTER


Assets:Cash & cash equivalentsProperty & equipment, netTotal assets


expenses



As of June 30,

2011

$ 49,118

2,772,720

$ 2,821,838

$ 11,145

2,769,809

40,884

2,810,693

$ 2,821,838

2012

$ -

755,465

$ 755,465

$ 44,496

710,996

-

710,996

$ 755,465


Revenue:

Support revenuesTotal revenue

Expenses:Administrative & other

Loss before depreciationexpense, non-operating supportand write-down

Contributions from archdiocese and others

Write down of impaired assetsDepreciation expense


2011

$ -

-

106,186

(106,186)

223,000

-

(187,141)

$ (70,327)

2012

$ 10,464

10,464

168,865

(158,401)

167,463

(2,108,759)

-

$ (2,099,697)

The Archdiocese of Denver Welfare Benefits Trust(Welfare Benefits Trust) provides access to qualityhealth care to approximately 1,731 archdiocesan,parish and related ecclesiastical entities’ employeesalong with the Diocese of Colorado Springs (the dio-cese) and the employees of its parishes and relatedecclesiastical entities. Those entities and parisheswithin the territories of the archdiocese and the dio-cese pay premiums to the Welfare Benefits Trust. TheWelfare Benefits Trust is partially self-insured andbears the financial losses on insurance claims up tocertain limitations of acceptable risk. Traditional in-demnity insurance products cover losses exceedingthe fund’s risk limitations.

The Health Care Advisory Committee (the com-mittee) of the Trust, comprised of parish representa-tives and staff from both the archdiocese and thediocese, continually evaluates the financial per-formance of the Welfare Benefits Trust, and is sensi-tive to the impact of rising medical rates on the var-ious participating employers and their employees.While the committee is pleased with the adequacy ofthe trust’s cash and investment reserves as of June30, 2012, it continues to focus on improving com-munications to the employee participants and pre-serving current participant benefit levels.

For fiscal 2011 and 2012, the respective increase inour medical and prescription premiums were 0 per-cent and 2.0 percent, respectively. For the currentfiscal year 2013, the increase in the medical pre-scription premium for the employers and employeesof the Welfare Benefits Trust was 0 percent. Theserate increases compare very favorably to other Col-orado employees’ healthcare plans, which experi-enced average increases of 14.4 percent, 9.4 percentand 7.4 percent in 2011, 2012 and 2013. The adviso-ry committee has been able to limit such increases,as compared to other employers, based solely on theadequacy of the trust’s existing cash and investmentreserves and the favorable rates it has negotiatedwith its provider network. During this same time pe-riod, the Welfare Benefits Trust has been able tomaintain all of its current coverage levels for medicalbenefits.

The Welfare Benefits Trust’s net assets increasedby $761,767 in fiscal 2012, which is primarily attrib-utable to favorable claims experience. During fiscal

2012, the committee engaged a specialist to conducta claims’ audit for the health care plans of the arch-diocese and diocese. The primary purpose of thisaudit was to ensure the integrity of the claimsprocessed by Trust’s claims’ processors. The com-mittee is pleased to report that the results of theclaims’ audit were positive and the independent au-ditors found minimal overpayment errors to med-ical providers.

ARCHDIOCESE OF DENVER WELFARE BENEFITS TRUST


Revenue:Self insurance premiums &

insuranceInvestment and other income

Total revenue

Expenses:Self insurance claims,

premiums, costsSupport & administrative



2011

$ 18,094,450

34,532

18,128,982

16,306,668

492,103

16,798,771

$ 1,330,211

2012

$ 18,825,357

23,099

18,848,456

17,697,031

389,658

18,086,689

$ 761,767


Assets:Cash & cash equivalentsShort term investmentsTotal cash and short term

investmentsPrepaid expenses & other assetsAccounts receivable - otherDue from parishes & other

related entities, netTotal assets

Liabilities & net assets:Accounts payableClaims payableTotal liabilities

Net assets:UnrestrictedTotal liabilities & net assets

As of June 30,

2011

$ 7,993,200

6,380,450

14,373,650

5,000

494,256

105,246

$ 14,978,152

$ 148,591

1,726,000

1,874,591

13,103,561

$ 14,978,152

2012

$ 6,527,572

8,893,935

15,421,507

5,000

79,395

265,750

$ 15,771,652

$ 155,324

1,751,000

1,906,324

13,865,328

$ 15,771,625

The various benefit plans (e.g. medical, dental and other)sponsored, operated and maintained under the WelfareBenefits Trust are self-funded church medical benefitsplans that are currently “grandfathered plans” under thePatient Protection and Affordable Care Act (PPACA),which was signed into law by the President on March 23,2010. Accordingly, these plans are currently not subjectto certain requirements of the PPACA, and are exemptfrom the regulations promulgated by the United StatesDepartment of Health and Human Services regardingmandatory provision of contraceptive services in thespring of 2012. Maintaining grandfathered status is a pri-ority of the Plan administrator, although there is no as-surance that can be achieved over time.

BIRDS-EYE view of the John Paul II Center

2012 FINANCIAL REPORT - archden.org

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Transcript of 2012 FINANCIAL REPORT - archden.org