Financial Report

Financial Report 2019

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, 2018, to June 30, 2019. These are independently audited financial statements, performed again this past year by LaPorte CPAs & Business Advisors.

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 particular report is just one element of the accountability and transparency that the diocese strives to practice on a continuing basis. Whether it be the construction of our operating budget, monitoring our progress and/or properly controlling our expenses, 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.

I ask for God’s blessing on each of you in this Lenten season, and once again thank you for your continued and generous support of our Diocese of Houma-Thibodaux.

Respectfully submitted,

Jon J. Toups Chief Operating & Financial Officer Diocese of Houma-Thibodaux

2019 Diocese of Houma

Statement of revenues and expenses

Assets

Cash and Investments $ 56,292,732 Accounts Receivable and Other Current Assets 1,609,184 Property and Equipment, net of Depreciation 10,359,341 Other Assets 4,634,564

Total Assets $ 72,895,821

Liabilities and Net Assets (Deficit) Liabilities

Accounts Payable and Other Current Liabilities $ 2,018,318 Central Finance Deposit Liabilities 57,922,907 Postretirement Benefit Liability – Priests 12,579,734 Other Liabilities 497,599

Total Liabilities $ 73,018,558

Net Assets (Deficit)

With Donor Restrictions $ 6,673,996 Without Donor Restrictions (6,796,733)

Total Net Assets (Deficit) (122,737)

Total Liabilities and Net Assets (Deficit) $ 72,895,821

Revenues and Other Support:

Without Donor With Donor Restrictions Restrictions

Cathedraticum $ 2,381,848 $ - Donations and Grants 3,103,836 249,785 Investment and Royalty Income 3,156,066 (3,507) Insurance Premiums 10,414,042 - Other Program Income 2,664,151 - Net Assets Released From Restrictions 91,125 (91,125)

Total Revenues and Other Support $ 21,811,068 $ 155,153

Expenses:

Program Expenses:

Formation Ministries $ 1,876,670 $ - Social Ministries 1,985,671 - Clergy and Religious Expenses 2,102,768 - Administration Ministries 11,931,896 - General and Administrative Expenses 1,051,428 - Stewardship Expenses 213,849 -

Total Expenses $ 19,162,282 $ -

Other Increases (Decreases) in Net Assets

Diocese of Houma-Thibodaux Assets

Parish loans, $1,866,958 Property, plant & equipment, net, $10,359,341

Other current assets, $1,609,184

Other assets, $2,767,606

Cash and investments, $56,292,732

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 exceed the total balance of cash and 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, $12,579,734

Diocese of Houma-Thibodaux Liabilities

Central finance deposits, $40,279,323

Insurance program reserves, $497,599 Endowments held for others, $17,643,584 Accounts payable and other current liabilities, $2,018,318

Some notes regarding the Diocese's liabilities and accruals:

Some notes regarding the diocese’s liabilities and accruals:

Seventy-nine (79%) 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.

Thibodaux Financial Report

for the year ended June 30, 2019

Diocesan Finance Council

The Diocese of Houma-Thibodaux is grateful to the members of the diocesan finance council. These individuals play an important consultative role in the fiscal management of the diocese. The 2018-2019 diocesan finance council members are:

Father Michael Bergeron Angelique Barker Robert Naquin Quint Ocker Tim Robichaux Craig Stanga Rodney Whitney Consultants: Jon J. Toups April M. LeBouef Ex-Officio Member: Very Rev. Simon Peter Engurait, V.G.

The Audit and the Auditor’s Opinion

The financial statements were audited by an independent certified public accounting firm. Diocesan management chooses to hire these auditors to help fulfill its role as good and responsible stewards of the generous funds contributed by its parishioners. The auditors expressed an “unmodified” opinion on the diocese’s financial statements. An “unmodified” opinion means the financial statements are fairly presented, in all material respects, in accordance with accounting principles generally accepted in the United States of America.

The complete audited report is available to all on the diocesan website, www.htdiocese.org. Click as follows: Offices, Administration, Finance, then Documents.

Expenses by Office/Department

Formation Ministries: Family Ministries $ 129,278 Worship 63,755 Catholic Schools 288,314 Religious Education 6,933 Parish Support 444,454 Evangelization 205,274 Youth Ministries 41,315 Communications 139,660 Bayou Catholic 373,465 ABA Grants to Parishes and Schools 184,222 Total Formation Ministries $ 1,876,670

Social Ministries:

Catholic Charities $ 445,408 Hospital Chaplain 89,529 Assisi Bridge House 365,466 St. Lucy Childcare Center 378,802 Disaster Services 35,422 Catholic Housing 45,047 Micro-Enterprise (C.E.N.T.S.) 32,023 Foster Grandparent 223,584 Food Banks 370,390 Total Social Ministries $ 1,985,671

Clergy and Religious:

Seminarian Formation $ 549,160 Vocations 41,320 Permanent Diaconate 3,529 Continuing Education 41,811 Office of the Bishop 106,062 Pension and Postretirement Benefits 1,360,886 Total Clergy and Religious $ 2,102,768

Administration Ministries:

Computer and Technology Support $ 171,679 Construction 55,184 Archives 53,274 Tribunal 62,267 Safe Environment 145,890 Cemeteries and Cemeteries Trust 79,578 St. Joseph Cemetery 429,049 Property and Casualty Insurance 3,389,520 Human Resources and Employee Benefits 6,724,649 Central Finance 491,054 Lumen Christi 329,752 Total Administration Ministries $ 11,931,896

Program expenses

Formation Social Clergy and Administration Total General and Ministries Ministries Religious Ministries Program Administrative Stewardship Total

Revenues:

Cathedraticum $ - $ - $ - $ - $ - $ 2,381,848 $ - $ 2,381,848 Donations and grants 377,020 1,244,016 600,577 14,917 2,236,530 53,191 814,115 3,103,836 Investment income - 14,383 26,015 2,647,262 2,687,660 - - 2,687,660 Oil and gas royaltie - - - - - 468,406 - 468,406 Program service and other income 460,592 983,086 24,120 11,380,196 12,847,994 230,199 - 13,078,193 Net assets released from restrictions - 34,847 - 56,278 91,125 - - 91,125

Total revenues $ 837,612 $ 2,276,332 $ 650,712 $ 14,098,653 $ 17,863,309 $ 3,133,644 $ 814,115 $ 21,811,068

Expenses:

Salaries - lay personnel $ 513,518 $ 680,472 $ 13,752 $ 719,532 $ 1,927,274 $ 171,986 $ 21,686 $ 2,120,946 Salaries - religious 133,975 31,955 67,398 20,000 253,328 39,858 - 293,186 Payroll taxes 37,420 48,784 1,047 47,035 134,286 13,957 1,522 149,765 Group insurance 144,198 179,167 76,220 160,049 559,634 59,434 3,491 622,559 Group insurance - retired priests - - 1,267,160 - 1,267,160 - - 1,267,160 Pension and benefits 28,299 34,263 6,663 42,217 111,442 11,967 1,241 124,650 Business allowance/reimbursement 38,056 30,078 28,592 11,901 108,627 35,035 51 143,713 Conference and travel 20,709 38,694 25,384 15,234 100,021 18,362 - 118,383 Program expenses 591,824 223,473 528,402 9,510,573 10,854,272 30,575 185,858 11,070,705 Supplies 3,687 47,896 13,998 66,197 131,778 17,632 - 149,410 Maintenance and repair 3,417 97,070 18,926 118,959 238,372 68,268 - 306,640 Insurance - 34,082 - - 34,082 - - 34,082 Occupancy expenses 4,500 73,138 9,755 75,112 162,505 44,388 - 206,893 Other operating expenses 12,290 83,583 8,338 60,063 164,274 156,226 - 320,500 Copying and printing 127,865 355 2,350 - 130,570 38,908 - 169,478 Papal quota and Catholic Conference - - - - - 72,810 - 72,810 Contributions and grants 184,222 - - 508,491 692,713 6,911 - 699,624 Depreciation 32,690 71,988 33,653 85,479 223,810 252,450 - 476,260 Central finance interest expense - - - 491,054 491,054 - - 491,054 Emergency assistance and disaster relief - 283,207 - - 283,207 - - 283,207 Telephone - 27,466 1,130 - 28,596 12,661 - 41,257

Total expenses $ 1,876,670 $ 1,985,671 $ 2,102,768 $ 11,931,896 $ 17,897,005 $ 1,051,428 $ 213,849 $ 19,162,282

Excess (deficiency) of revenues over expenses $ (1,039,058) $ 290,661 $ (1,452,056) $ 2,166,757 $ (33,696) $ 2,082,216 $ 600,266 $ 2,648,786

Office of Catholic Schools The diocesan Office of Catholic Schools provides assistance, support and guidance for administratorministers, teacher-ministers, school advisory councils, and parents in order to promote and enhance the educational ministry of the Catholic Church here in our diocese.

The 12 Catholic schools in our diocese educate over 5,000 students each year, making it the largest evangelical ministry in the diocese. The District ACT College Readiness Results for the recent 2019 graduating class from the three diocesan high schools reflected an average composite score that was almost five points higher than the state average.

Office of Parish Support The diocesan Office of Parish Support exists to serve, provide resources, and accompany pastors, their staffs, and their pastoral leadership teams in the work of parish renewal. The OPS replaces the previous offices of Religious Education, Youth Ministry and Family Ministry.

The Office of Parish Support is comprised of a team of parish liaisons who assist parishes in the implementation of their individual parish strategic plans and serve as a support and resource for the pastor, his staff, and lay leadership teams. Rather than focusing on one area of expertise, the liaisons become the expert in all aspects of parish life: Adult formation, youth formation, Sunday and outreach. Catholic Foundation of South Louisiana The Catholic Foundation provides an avenue allowing donors of the Diocese of Houma-Thibodaux to give to the many different Catholic entities of the diocese in the best manner possible. By working closely with parishes, schools and individual donors, the CFSL makes giving simple and meaningful. The Foundation can administer a donor’s philanthropic giving, both now and after their death. The CFSL provides

a flexible array of services that helps donors shape a meaningful charitable legacy.

The CFSL has administered a number of successful initiatives in the diocese in recent years, including the Annual Bishop’s Appeal, #iGiveCatholic and the Mother Teresa Women’s Giving Circle.

Project Updates As described elsewhere in this issue, the generous donation of Mary’s Manor from the Mary & Al Danos Family Foundation provides a beautiful diocesan presence in the South Lafourche area, with the potential of retired priest housing in the years to come.

Diocesan officials in recent months have been working closely with archival experts nationally to improve, digitize and conform diocesan records to current standards. The improvements will not only greatly assist the diocesan Archives and Historical Research Center housed on the Nicholls State University campus, but provide much needed assistance to church parish and school staffs.

The Diocese of Houma-Thibodaux raised the second highest figure of all Louisiana dioceses and secured a top 10 national ranking in the 2019 24-hour #iGiveCatholic online giving challenge. Over $460,000 was raised, celebrating and greatly assisting the work of our parishes, schools and other ministries. By virtue of a $150,000 grant from the Mary & Al Danos Family Foundation, the diocese will soon purchase and implement a new financial management system to assist pastors, bookkeepers, finance councils, school presidents and administratorministers throughout our diocese. The diocesan Finance and Accounting Office is also in the early stages of providing compliance assistance to those same employees, with an end goal of providing protection and compliance assurance to ensure all are better financial stewards.