Year-end shows more spending, loss in net assets, investments

CHICAGO — The audited financial statements of the Eparchy of Parma for the fiscal year July 1, 2016-June, 30, 2017, indicate a net asset decrease and an increase in spending.

In a letter dated Sept. 6, the eparchy’s CFO, Martin F. Kopmeyer, said the eparchy’s net assets decreased by $465,505 and spending increased by $138,419 from the previous year. In 2015-2016, the eparchy had reported an increase in net assets of $23,235.

“The eparchy had net assets of $2,098,511 at June 30, 2017, compared with $2,564,016 at June 30, 2016,” he said in his letter.

Kopmeyer said the financial statements are presented “on the ‘modified cash basis’ of accounting and do not include assets, liabilities, net assets and results of operations of the parishes, shrine, Parishes Together Fund or Pension Fund.”

The 13-page report, published in its entirety in this issue of Horizons, indicates that the eparchy’s cash and investments totaled $787,963 at June 30, 2017, compared with $1,157,996 the previous year, a drop of $370,033.

The eparchy earned less revenue in 2016-2017. The total revenue was $1,160,231, compared with $1,510,552 the previous year. This is a decrease of $350,321.

Kopmeyer identified the key categories where revenue dropped from the previous year. They include grant income, $52,500 versus $165,000; support for the Byzantine Catholic Cultural Center, $9,456 versus $288,740; and gain on sale of property, $0 versus $170,580.

The largest income sources in 2016-2017 were eparchial assessments, $414,719, up from $255,294 the previous year.

Expenses were up in 2016-2017, totaling $1,625,736, compared with $1,487,317 — an increase of $138,419.

Kopmeyer identified the five areas with the highest expenses in 2016-2017. They include clergy health and life insurance premiums, $325,046, up $79,600 from the previous year; administrative and clergy salaries, $246,127, up $59,500 from the previous year; utilities, telephone, insurance, repairs and maintenance, $143,952, up $16,000 from the previous year; monastery, $138,581, up $48,800 from the previous year; and seminary expenses, $124,616, up $39,000 from the previous year.

The three categories in which costs decreased most from the previous year include clergy and parish assistance, down about $80,400; priests pension plan contributions, down $24,000, and postage and office expenses, down about $11,700.

The net assets in the priest retirement plan were $2,498,520 as of June 30, 2017, compared with $2,297,285 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.

The Parishes Together Fund totaled $1,680,775, compared with $1,576,081 the previous year.

“Although the final numbers are not available at this point, the eparchy is expected to incur a deficit again for the year ending June 30, 2018, which was funded by converting investments to cash for use in operations,” said Kopmeyer. “In response, we have adopted certain changes and are exploring initiatives to reduce costs and increase cash receipts during the fiscal year ending June 30, 2019, so that we may ‘get back on track.’”

The audit was conducted by Rea & Associates, Inc., and submitted to the eparchy June 29, 2018.
 
The 2016-2017 Financial Report is only available in the print edition of Horizons.
 
As published in Horizons, Sept. 30, 2018.
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