Diocesan annual report released; overhead costs reduced, technology investments made

The Diocese of Worcester released its annual report, highlighting major department activities and finances for the fiscal year ending Aug. 31, 2024. A copy is inserted in today’s printed edition of The Catholic Free Press. A digital version of this year’s report and some years past, can be found at worcesterdiocese.org/diocesan-financial-reports. Audited financial statements are anticipated by late spring.

The diocese ended the year with an operational deficit of $166,303, as compared to a deficit of $762,077 the previous year, prior to allowing for unrealized gains on investments and other income restricted to non-operational use. The year ended with a change in net assets of $4,572,480 compared to a $986,869 last fiscal year, after recognizing unrealized gains on investments and restricted income.
In his management letter, Bishop McManus acknowledged that the diocese had to “reduce our overhead costs to be more in line with available funds.” But said investments have been made in an updated accounting system and support services given “today’s increasingly technology-dependent and highly regulated world.” He also acknowledged additional investments in personnel “to increase enrollment at St. Paul Diocesan Jr./Sr. High School in order to solidify its future.”
In 2023 the diocese asked all parishes to contribute an additional 2.5% to the cathedraticum, which would be designated solely to reducing debt to the Diocesan Expansion Fund (DEF) which acts as a diocesan “bank.” In the past years he noted that much of that debt came from unpaid parish bills such as property and liability insurance which was owed to the diocese. Fiscal Year 2024 was the first year to collect that additional income, which totaled $670,000 according to the Report on Financial Activities.

The letter cited continuing financial challenges at St. John Cemetery System, which are being addressed, and the conclusion of extraordinary legal costs from organizational restructuring. He also noted that “legal costs for abuse-related claims for incidents which occurred in the 1970s were addressed and it is important to note that only undesignated funds are ever used for these legal costs and settlements.”

Bishop McManus expressed gratitiude for the generosity of Church donors. “I continue to be grateful to God for the ongoing generosity of our donors to Partners in Charity, Celebrate Priesthood, the Ash Wednesday Collection, and the many national and international special collections, while supporting parish offertory and honoring long-term commitments to the Legacy of Hope capital campaign.”

He said that the number of donors is declining, while the average gift continues to rise “in response to the growing, demonstrated need.”

The bishop’s letter also acknowledged the contributions by many volunteers on advisory committees.

The report also listed amounts received for national and international collections through parishes and the diocesan online web portal.

The report’s narrative describes the goals and objectives of 16 diocesan agencies and ministries and highlights their accomplishments.

Bishop McManus concluded his letter with a reminder that we are currently in the Jubilee Year of Hope. He added, “It is not a facile hope based on wishes and empty promises. It is the hope that Jesus imparts to all of us when he won the promise of eternal life for us by his suffering, death and resurrection. If we keep our eyes fixed on that mission, we will all be filled with that spirit of hope and empowered to share that hope with the world.”