DIOCESE OF HOUMA-THIBODAUX FINANCIAL SUMMARY 2021-2022

Brothers and Sisters in Christ:

I am pleased to continue the practice of sharing with you the annual financial report for our diocese here in the Bayou Catholic.

Again this year, we are publishing an accounting of the financial operations of the diocese, which are taken directly from the Audits of Consolidated Financial Statements of the Central Administrative Offices of the Roman Catholic Diocese of Houma-Thibodaux, offices and institutions – fiscal year July 1, 2021, to June 30, 2022. These are independently audited financial statements, performed again this past year by LaPorte CPAs & Business Advisors. The full report is available on our website at www.htdiocese.org on the Finance Office page.

The report indicates that our current financial position is stable, continuing a positive trend with proper controls in place to effectively monitor, manage and report on the financial health of our diocese. In the opinion of the auditor, our financial statements “present fairly our financial position, change in net assets and cash flows for the years ended in accordance with accounting principles generally accepted in the United States of America.”

This report is just one element of the accountability and transparency that the diocese strives to practice on a continuing basis. I would like to assure each of you that our diocesan staff is committed to the most ethical and prudent fiscal management of the resources to which you have entrusted us.

Of note, is that this report is as of the close of the fiscal year ending June 30, 2022. We are approximately one year behind in our normal flow of reporting due to circumstances outside of our control. We experienced delays with transition within our audit firm coupled with delays with third party actuarial calculations. We do not anticipate these same delays this year and are currently closing the financials for the June 30, 2023, fiscal year. That report should be available in the coming months.

Additionally, these financials present a very different picture than the norm. As a result of Hurricane Ida, we received $50 million in insurance proceeds in early 2022 and spent nearly $20 million in remediation expense by the close of the fiscal year. The impact of these will skew a year-to-year comparison whereby most of these revenues will be reflected in the June 30, 2022, financials with the expense reflected in subsequent years as the rebuild process continues. The financial impact of Hurricane Ida on normal diocesan operations has been very minimal. We continue to work towards full restoration of our facilities with the long-term financial impact still unknown.

I once again ask for God’s blessing on each of you, and thank you once again for your ongoing and generous support of our current leadership and the Diocese of Houma-Thibodaux.

Respectfully submitted,

William (Bill) J. Barbera Chief Operating & Financial Officer Diocese of Houma-Thibodaux

$1,723,991 plant & equipment, net $9,573,285 Other assets $2,694,241 $117,733,389

Some notes regarding the diocese’s assets:

The diocese’s assets are comprised primarily of investments and property, plant and equipment. The source of the invested funds stems mainly from the Diocesan Central Finance program. Deposits and endowments in the Central Finance program account are included in investments. Property, plant and equipment includes property received from the Archdiocese of New Orleans upon the formation of our diocese in 1977. Also, it includes the cost of fixed asset additions made since the formation of the diocese (exclusive of replacements), net of depreciation.

Priests' postretirement benefits liability $11,894,614 Central finance deposits $37,672,700 $79,433,909

Some notes regarding the diocese’s liabilities and accruals:

Seventy percent (70%) of the liabilities of the Diocese result from the inclusion of deposits in the diocese’s Central Finance program and endowments in the liability category. The liability for priests’ postretirement benefits other than pensions (mainly health insurance and long-term care) have historically been paid and will be paid in the future through the diocese’s normal annual budgetary process.

Central Finance Deposits: Parishes $10,258,302 Cemeteries $5,114,723 Schools and other deposits $22,299,675 $37,672,700

Some notes regarding Central Finance Deposits: Deposits from schools are comparatively larger at June 30 than they are at most other times during the year. This is due to the prepaid tuition program in which most schools in the diocese participate. Approximately 76% of the deposited funds for schools will be drawn by the schools during the year to pay for their operations. Cemetery deposits do not include St. Joseph Cemetery in Thibodaux, which is owned by the diocese.

Condensed Statement Of Financial Position

Some notes regarding the net assets of the diocese:

Net assets represent the difference between the diocese’s assets and liabilities. Net assets are also commonly referred to as “net worth.” The net assets of the Diocese are segregated into net assets that are restricted as to use by donors and those that are not. For those net assets that are not restricted, the diocese has designated net assets to fund diocesan programs and projects. The remaining net assets not designated are classified as “unrestricted, undesignated.” “Unrestricted, undesignated” does not mean that the diocese has this amount in reserves. Rather, this figure represents total assets minus total liabilities and net assets that are restricted and/or designated.

Condensed Statement Of Activities And Changes In Net Assets

Diocese of Houma-Thibodaux

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