One of the concerns I often hear from Catholics relates to reports that funds collected from parishioners at Christmas and Easter for the support of sick and retired priests were used for other than the announced purposes. The following is a press release from the archdiocese regarding the publication of an independent accountants' review of the Clergy Funds in question. On the archdiocesan website, you may read the full
report to which the press release refers.
Braintree, MA - At the request of the priests of the Archdiocese of Boston, and at the direction of Cardinal Seán P. O'Malley, the Archdiocese commissioned a thorough study to review the financial history of the Clergy Funds from their beginning in 1972 through June 2008. This study is one of several steps in the overall effort to understand the current situation and to stabilize the Clergy Funds, which provide for the retirement, medical and financial needs of our priests, and bring the Clergy Funds to full health as soon as possible.
Very Reverend Richard M. Erikson, Vicar General & Moderator of the Curia, said, "Cardinal Seán considers the stabilizing of the Clergy Funds to be one of his top priorities as Archbishop. The great effort undertaken in recent months by many talented people is bearing much fruit for our priests. This process has been one of the most consultative and transparent initiatives undertaken by the Archdiocese. We welcome the continued input of our priests for whom we serve through this important work and the committed lay leaders who are assisting us in this endeavor."
The study was conducted by Joel Aronson, CPA, and his team from Alexander, Aronson, Finning & Co. (AAF), one of the largest full-service public accounting and consulting firms in New England. The Clergy Funds study is the result of a significant amount of effort by AAF with the assistance of more than 30 priests and staff of the Archdiocese over the past six months. The full study was mailed to priests of the Archdiocese of Boston during the week of June 22. All priests were invited to attend presentations and discussions about the report at any of three locations in the Archdiocese on June 29th and 30th.
The Archdiocese noted that the study clearly shows that over its 37-year history, the Clergy Funds have, as reported by AAF, experienced a dramatic increase in expenditures due to an aging population of priests and the rising cost of health care and housing. AAF also noted that while "operating revenues have increased over the years, they have not increased at the same pace as expenses."
In addition, AAF stated that "we did not identify any use of Clergy Benefit Trusts Funds that were outside the scope of benefits and related costs covered by the trust agreements or any diversion of funds." Church officials concur with this determination and believe that the money collected was used appropriately for the care of the priests of the Archdiocese.
Current estimates point to a Clergy Funds unfunded liability for future anticipated retirement expenses to be in excess of $114 million. If not addressed, the Funds will run out of money in 2011. In a letter to the priests, Chancellor James P. McDonough said, "We are simply not going to allow that to happen." He added, "From the start Cardinal Seán has made clear that he is absolutely committed to provide for the care of our priests. You have earned this respect from a lifetime of giving so much during your ministry to the people of God. To that end, working together, we will not fail you in this endeavor."
The Archdiocese stated that the reasons for the deficit include, among others: the Christmas and Easter collections have remained relatively flat for the past several years; investment returns have fallen below actuarial projections; and there have been dramatic increases in health care and housing costs while the percentage of the priests' population comprised of senior priests has increased from 16% to 36%.
More specifically, the Clergy Funds Operating Budget is receiving approximately $5.5 million per year from the Christmas and Easter collections but the Church is spending in excess of $15 million per year for retired and disabled priests' stipends, housing costs, and medical/dental benefits.
...
Read the complete press release
and find a link to the complete independent accountants' report here.
-ConcordPastor
One of the concerns I often hear from Catholics relates to reports that funds collected from parishioners at Christmas and Easter for the support of sick and retired priests were used for other than the announced purposes. The following is a press release from the archdiocese regarding the publication of an independent accountants' review of the Clergy Funds in question. On the archdiocesan website, you may read the full report to which the press release refers.
I was just listening to a NPR report on how the funds for the past few years were diverted to other areas, and then I saw your post.
ReplyDeleteI also heard that the Archdiocese is no longer going to support priests that reside in nursing homes, and that they will have to use medicade.
That's sad.
CC: not as bad/sad as it may seem. It's not that priests in nursing homes wouldn't still receive support from the archdiocese. It's a question of availing the archdiocese and the priest of funds that are there for them already. Other forms of support (including financial support) would still be in place.
ReplyDeleteCC: Here's more info on the topic you raised. Msgr. Dennis Sheehan is on the priests committee connected to this study:
ReplyDeleteMonsignor Sheehan said dioceses of comparable sizes already rely on Medicaid to pay for priests in nursing homes. But he understands that priests will be worried about the changes. “This kind of change brings apprehension and fear,” he said. “The only thing we can do is reassure no lack of place or resources for them to live on or no lack of medical care for them to live on. And no lack of adequate medical care for them.”
CP, with all due respect, you let them off far too easily.
ReplyDeletePriests received a letter from the RCAB in May 2005 telling them there was not enough money to pay for the retirement of priests. What’s news is that the RCAB seems to have done very little about it during the past 4 years.
Also news is how cleverly this financial information is being spun to make it look like everything has been investigated and, as Chancellor McDonough concludes, “I want to be clear that AAF has not uncovered any evidence of money being misappropriated or stolen.”
Well, in the other half of the story AAF says, “in the past management had not established segregation of duties within the Clergy Benefits Office as a component of proper internal controls. Based on our understanding, one person within that office could have approved ancillary medical invoices, received the majority of the related disbursement checks from the Finance Department and disbursed the checks. In addition one person could have managed the database that was used to prepare pension and housing stipends, supervised the printing with an electronic signature of these disbursements and also disbursed these checks. Also, as identified in Appendix B, there were certain transactions selected for testing for which supporting documentation could not be located. Although we found no evidence of any misappropriation or theft of funds and the transactions we tested were in accordance with the trust agreements, the lack of internal controls prevents us from stating any absolute conclusion on this subject. In addition, although there may have been internal approvals and supervisory oversight within the Clergy Benefits Office itself, we were unable to locate written indication of such approvals of individual transactions. Management has advised us that appropriate internal controls requiring segregation of duties are currently in place.”
Note, AAF did not test to ensure those controls are actually in place and working properly. If there’s any interest, we can go into further details.
"From the start Cardinal Seán has made clear that he is absolutely committed to provide for the care of our priests" Well I should bloody well think so! I have the very tiniest window into how much priests in this archdiocese especially have given to the institution and to the people of the church. The very *least* the hierarchy can do is put a priority on taking care of retired priests. (Harumph!)
ReplyDeleteAs to "priests that reside in nursing homes... will have to use medicade [sic]," is it Medicaid or Medicare? I would think the retired priests would qualify for Medicare, as do most at age 65 when they retire from their careers, so why shouldn't they receive that benefit? If it's Medicaid, then shame on the Archdiocese for letting the retired priests' income fall so low they qualify!
I can remember 25 or 30 years ago being scandalized when some impoverished nuns were forbidden by their bishop from making use of government programs to support themselves when they had no other money coming in to provide for food and shelter. Citizens who qualify for government help shouldn't be barred from receiving it, no matter what their profession or chosen lifestyle.