Friday, December 13, 2013

Audit shows Philadelphia Archdiocese seeing start of financial rebound

The latest audited financial statements for Archdiocese of Philadelphia show a dramatic turnaround in church finances with a reported $3.9 million surplus for the 2013 fiscal year, up dramatically from the $39.2 million deficit reported for fiscal year 2012. 

The accounting firm Grant Thornton audited the financial statements and dated their opinion Nov. 22. 

The archdiocese released the information Dec. 5. 

"Since my arrival in Philadelphia, we've worked hard to be transparent about the financial health of our local Church," Archbishop Charles J. Chaput said in a statement. "We'll continue to do so. I'm pleased to relate that our actions are beginning to have the much needed effect. Today, we're releasing our financial report for the fiscal year that ended on June 30, 2013. It shows that we're making significant progress in some areas and that we still have a long way to go in others." 

While the steep climb out of last year's deep deficit into surplus may encourage Catholics in the five-county archdiocese, an analysis offers further insight. 

The $3.9 million "operating result" is a reported surplus that the financial statements call a "change in net assets before other items." 

The figure includes several nonrecurring transactions so a "core deficit" remains, though not nearly as severe as in the previous fiscal year.

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