AOM Financial Report

The Archdiocese of Miami published its’ Financial report for the Fiscal Year ended June 30, 2007 in the Florida Catholic April 4-10, 2008. We encourage our readers to review this report and direct any questions to the Archbishop or to his expanded Finance Council.

We share the concern expressed by Archbishop Favalora in his covering letter regarding the impact of the economy on individuals and families and applaud that he remains “ committed and hold(s) as the highest of priorities our apostolates for the less fortunate and most vulnerable, as well as the continued life and vibrancy of our churches  and schools.”

A related article of interest was published in the Florida Catholic April 11-17, 2008. The stewardship priorities are discussed and a budget cutback at the Pastoral Center (administrative offices) is announced. The highest priority for the coming fiscal year (2008-2009) noted is to address the needs of the churches and schools, specifically “the growing need of financial assistance to poorer parishes and schools.”

There is a question as to how the recently announced closing of Saint Monica School in Miami Gardens reconciles with this stewardship priority.If nothing else, this must create a level of anxiety in the minds of organizations who have received greater levels of subsidies over the past, increasing in recent years due to the economic conditions and the need to repair facilities following 2005 storm damages.

When viewing these publications there would appear to be an inconsistency; combined Cash & Marketable Securities, Total Assets, and Net Assets all reflect increases over the prior year. How can this be so unfavorable? However, the reader must remind himself that the recently completed financial report is nine months after the fact. With economic conditions continuing to worsen during these intervening months, any trends reflected by the financial report have more than likely been exacerbated. Also, the focus needs to be on the Pastoral Center component of the report. In order to evaluate this information you need to compare it against the same report issued for the previous year. As we retain copies in our files, we have done this analysis, and it would to appear to show liquidity problems. While Net Assets are unchanged at $32 million, the makeup of the accounts indicates a discomforting trend. Working Capital (cash, marketable securities, and receivables) has decreased $9 million. The total $131 million of current assets is not sufficient to meet the $153 million in liabilities. While the level of liabilities has remained relatively
constant year to year, the makeup has changed. Notes payable and savings deposits payable to parishes and agencies have increased $16 million, offset by a decrease in Self Insurance Reserves. (This latter balance at $18 million seems inadequate unless the recently announced judgment of $14 million allowed by the courts is reversed).

The current financial report and Archbishop Favalora’s statement on priorities referred to above can be viewed  at www.miamiarch.org

Click on “About Us” and under “Statements” the April 7, 2008 item. At the end of the article is a link to the full financial report.