CHICAGO — The audited financial statements of the Eparchy of Parma for the fiscal year July 1, 2017-June 30, 2018 indicate a decrease in spending, but also a decrease in net assets.
In a letter dated June 10, the eparchy’s CFO, Martin F. Kopmeyer, said the eparchy’s net assets decreased by $438,000, as spending decreased by $96,000 from the previous year. In 2016-2017, the eparchy had reported a decrease in net assets of $465,505.
“The eparchy had net assets of $1,132,000 at June 30, 2018, compared with $1,570,000 at June 30, 2017,” he said in his letter.
He noted that the financial statements are presented this year “on the ‘modified cash basis’ of accounting and do not include assets, liabilities, net assets and results of operations of the parishes, shrine, Christ the Bridegroom Monastery, Parishes Together Fund or Pension Fund.”
This year as well, the financial statements are presented with comparative amounts from last year, “which were restated to exclude the assets, liabilities, net assets and results of operations” of the monastery.
The 14-page report, published in its entirety in this issue of Horizons, indicates that the eparchy’s cash and investments totaled $265,000 at June 30, 2018, compared with $644,000 the previous year, a drop of $379,000.
As well, the drop in investment income, from $109,000 in 2017 to $31,000 in 2018, was due to the liquidation of investments to fund operations.
The eparchy had a slight increase in revenue in 2017-2018. Total revenue was $944,000, compared with $937,000 the previous year.
The largest income sources in 2017-2018 were eparchial assessments, $374,000, down from $415,000 the previous year, and the stewardship contributions, $189,000, down $3,000 from the previous year.
Expenses were down in 2017-2018, totaling $1,381,000, compared with $1,477,000 the previous year.
Kopmeyer identified the five areas with the highest expenses in 2017-2018: occupancy, repairs, maintenance, and office expenses ($236,000); administrative and clergy salaries ($209,000), clergy health and life insurance premiums ($161,000), professional fees ($138,000), and Cultural Center, religious education, youth and family ministry ($137,000).
The net assets in the priest retirement plan were $2,649,000 as of June 30, 2018, compared with $2,498,520 the previous year. The fund is maintained and invested separately, outside the general assets of the eparchy, in restricted accounts and administered by a board.
Kopmeyer underlined two significant financial commitments the eparchy has entered into that are not reflected as liabilities in the financial statements. The first is the refund of a $291,000 donation over five years; the second involves office-related leases, totaling $299,000, also to be paid over five years.
The financial statements indicate that the Cultural Center property in Cleveland is listed for sale.
“The eparchy experienced significant losses for the past two years totaling $978,000,” said Kopmeyer. “In response, we have adopted certain changes and continue to explore initiatives to reduce costs and increase cash receipts during the fiscal years ending June 30, 2019 and 2020.’”
The audit was conducted by Rea & Associates, Inc., and submitted to the eparchy May 30, 2019.
Please note that the full financial statements are only available in the print edition of Horizons, dated June 23, 2019.
As published in Horizons, June 23, 2019.
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