Pastoral Office for Administration
The Word of God Is Not Chained
A report to the people of the Diocese
I am pleased to present this overview of the Diocese finances covering fiscal year 2014.
The full financial statements, as well as other supplemental financial information, are available on the Diocesan website at
I hope you will agree the report reflects fiscal responsibility on the part of myself and my staff as well as the generosity of the Catholics of this Local Church. Your generous support of the Church, not only at the Parish level but also the Diocesan level, demonstrates an understanding of the tripartite structure of the Church: Parish, Diocese, and the Universal Church. In addition, you have responded most generously to the special collections on behalf of our seminarians and other special needs. This commitment is a source of ongoing inspiration to me and to all of us who serve you in the fellowship of Christ.
The financial statements for the Central Administration show an increase in revenue of approximately $7.6 million with an increase in expense of $3.3 million. Fruitful Harvest contributions, net of dovetail commitments, were $1.1 million in 2013, and $8.7 million in 2014. This is because of the biennial nature of the Fruitful Harvest campaign. Contributions, including unconditional promises to give, are recognized when pledged. All contributions are reported as increases in unrestricted net assets unless use of the contributed assets is specifically restricted by the donor. Amounts received that are restricted by the donor to use in future periods or for specific purposes are recorded as an increase in either temporarily restricted or permanently restricted net assets consistent with the nature of the restrictions.
On the expense side, insurance program expenses increased by $1.1 million, and the Diocese made the decision to contribute $1 million to the Lay Employees’ Retirement Plan to increase the funding level of the future liability of benefits payments in that plan.
Each year the Diocese subjects itself to the scrutiny of an independent audit. The Carmel firm of Blue & Co. LLC, has performed the audit for the last six fiscal years. As in the past, an unqualified opinion was received. To achieve an unqualified opinion financial accounting standards must be met and commonly accepted internal controls must be in place. With not-for-profit organizations, accounting standards require that revenue such as Fruitful Harvest, which is pledged during a fund raising campaign, be recognized in the year pledges are made. Because of this and the campaign cycle, the audited reports show more revenue during even numbered years than in odd numbered years.
In addition, the Diocese has an established Diocesan Finance Council. The Council, whose existence is required by Canon Law, meets regularly to review budgets, as well as the financial policies and procedures of the Diocese of Lafayette-in-Indiana. Since 2000 the United States Conference of Catholic Bishops (USCCB) has directed that at the end of each fiscal year, each Bishop report to the Metropolitan Archbishop the names and professional titles of members of his Diocesan Finance Council, the dates on which the Finance Council has met and the fact that the Council has reviewed the audited financial statements of the Bishop’s Office (Central Administration). The Diocese of Lafayette has complied with that resolution. Current Finance Council members are:
Most Rev. Timothy L. Doherty
Very Rev. Theodore C. Dudzinski, V.G.
Mr. Gordon Slack, Chief Financial Officer
Mr. Leo Dierckman
Ms. Lynn Layden
Mr. Matt McKillip
Ms. Marianne McLean
Mr. Thomas Parent
Ms. Mary Piantek
Ms. Karla Schlichte
Our Diocesan investments are overseen by the Fund Evaluation Group (FEG). Acting as our investment advisor, FEG monitors the performance of our investment managers, and ensures our portfolio meets the U.S. Conference of Catholic Bishops Social Responsibility Guidelines. Our investment managers are Capital Guardian Group and Becker Capital Management Group. Starting in 2015, the Diocesan Finance Council sponsored an Investment Committee to oversee the investment strategy and results of the Diocese, and advise me on all investment matters.
As part of the Diocese long-term planning we have several investment property holdings that are designated for future parish growth as well as cash rent farming.
Although parish finances are separate and therefore not included in Central Administration figures, in keeping with my desire for accountability and transparency, we are including summary financial information at
for our 62 parishes. It is important for parishioners to understand the costs related to not only ongoing upkeep of the parish, but to the need for expansion and future growth at their parish. The Diocesan Building Commission is currently following 71 projects at our parishes and schools. With parish income totaling $61 million in 2014 and parish expenses totaling $58 million we need to be ever vigilant in the allocation of our parish resources.
To assist the pastor in making financial decisions, according to Canon Law every parish must have a Parish Finance Council consisting of a recommended eight members. The Parish Finance Council is a consultative body which provides the pastor with advice concerning the stewardship of parish fiscal resources. This Council is different from the Parish Pastoral Council; however, some very small parishes may have an overlap between the two Councils. The Parish Finance Council assists the pastor by conducting long-range financial planning with regard to funding operational and capital needs in the parish, developing a three year fiscal plan and developing and overseeing a parish budget process which results in an annual parish budget. They should provide the parish with periodic, no less than annual, reports on the financial position of the Parish.
Just as I am required to report to the Metropolitan Archbishop the names and professional titles of members of my Diocesan Finance Council, the parish is asked to report to my office the names and professional titles of members of the Parish Finance Council along with the dates on which the Parish Finance Council has met and a statement that they have reviewed the financial statements of the parish.
The Diocese has two internal auditors who complete a Parish Administrative Review at each parish approximately every 4 years and at every pastoral change. The report is sent to the pastor and the chairman of the Parish Finance Council.
Lafayette Diocesan Foundation, Inc.
In 1997 the Catholic Foundation of Northcentral Indiana was created with its first fund, the Fund for the Future. In 2012 the name of the Foundation was changed to Lafayette Diocesan Foundation, Inc. and currently includes 103 endowments, 23 Charitable Gift Annuities and two Charitable Remainder Trusts. Total Assets in the Foundation stood at $11.6 million at the end of 2014, with liabilities of $1.6 million.
The various endowments enable parishes, schools and cemeteries to not only raise funds, but to ensure that monies are available to provide for parish ministries for generations to come. For information regarding donating to current endowments or setting up new endowments you may contact Bob McCreary, Planned Giving Officer and Director of the Pastoral Office for Stewardship and Development. The Lafayette Diocesan Foundation is audited yearly by Blue & Co. LLC, and that report is available upon request, while the Foundation’s 2014 Annual Report is available online at
In conclusion, the Diocese financial results illustrate that the Catholics of our diocese continue to be most generous. I am deeply grateful. As our Diocesan Mission Statement proclaims, my goal and the goal of my staff is that we are the people of God uniting in the heart of Jesus Christ, who demonstrate commitment to responsible stewardship.
In Christ’s peace,
Most Rev. Timothy L. Doherty, STL, PhD
Bishop of Lafayette-in-Indiana