Financial Impact to the Local Church

For the past several weeks, Minnesota Public Radio, as well as other media, have run stories on the financial impact on our local church because of the recent disclosures of clergy sexual misconduct.  These stories have in turn raised concerns about our Archdiocesan and parish finances.  Specifically, concerns have been raised about secret accounts, hidden payments, generous severance packages, questionable business practices, and the impact this is having on parish finances.  While the revelations contained in these stories have been painful, it is important that they be brought into the open.   It is only in being open and honest regarding these matters that we can begin the healing process and move forward in faith and hope.  

In reflecting on the revelations contained in these various stories, it seemed to me they left some questions unanswered, or with answers that were incomplete.  Given this, I would like to offer some comments about our parish finances, our Archdiocesan finances, and the hidden accounts and secret payments that have been made.

In regard to our parish finances, I would note the following:

  • Our Finance Committee is comprised of 18 individuals from a variety of backgrounds.  Members can serve two consecutive three year terms and then must rotate off the committee. I, along with Terri Ashmore, our managing director, and Audra Johnson, our Director of Finance and Human Resources, also sit on the Finance Committee.   The Finance Committee meets monthly except during the summer.
  • At our meetings we review and monitor our monthly income and expenses to make sure we are on target in regard to our budget.   .  
  • The Finance Committee has four subcommittees: Audit, Budget, Investment and Nominating.  
  • An audit is conducted each year by an outside independent auditor, and the results of the audit are shared with the Finance Committee and our Parish Council.  For the past two years, a summary of the audit has been available on-line, and as I mention each year, copies of the full audit are available for anyone who is interested.   
  • Each parish is assessed 8% of its stewardship income to help run the Archdiocese. In the next year, this will increase to 9% for those parishes without a school.  
  • We work hard at being open and accountable for the financial support of our parishioners. Certainly we don’t do this perfectly.  I think we do it pretty well, though, and we are always open to suggestions about how to do it better. 

In regard to our Archdiocesan Finances, I would note the following:

  • As it appears from the recent media reports, our Archdiocese has not done a very good job of being open and transparent in regard to its finances. There is no excuse for this.  It needs to change.
  • As it also appears from the recent media reports, our Archdiocese has not had a system of checks and balances in place to prevent embezzlement and other abuses of the system.  Again, there is not excuse for this.  All of us in the Church need to be transparent.  
  • In addition to the money received from parish assessments, the Archdiocese also receives income from investments, bequests, and special gifts. Our Archdiocese needs to be open and transparent in regard to these sources of revenue and how they are used.     
  • Money collected through the yearly Catholic Services Appeal goes directly to the programs, ministries and services that are funded through the Appeal.  None of the money from the Catholic Services Appeal goes to the Archdiocese.  This was reinforced this year when The Catholic Services Appeal Foundation was established to collect and disburse money collected through the Appeal.

Finally, in regard to the hidden accounts and secret payments that were made by the Archdiocese I would note the following:

  • First, I believe we need to apologize that we weren’t honest and open about these payments. Frankly and bluntly, I believe this was wrong.  It certainly is not consistent with the goal of transparency. 
  • In regard to people who have been victimized by priests, while nothing can undo the pain and harm they have experienced, I personally believe we must help them in any way we can, whether in the form of a settlement, payments for counseling, or other services. 
  • In regard to priests who have abused or victimized individuals, we need to be clear:  because our church ordained them, we are responsible for them.   While many people would like to see these men formally removed from ministry, this is a long involved canonical process that is expensive and can take years to complete.   Most dioceses have chosen instead to reach settlement agreements with these men.   These agreements remove them from ministry but also tie them to ongoing monitoring. It is my understanding that these agreements are negotiated with each individual priest, and are based on their particular needs and circumstances.   Clearly some of these settlements appear to be overly generous.  I don’t understand this.   I do believe, though, ---- and I know many people will disagree with me --- that it is better to negotiate these settlements, and tie them to ongoing monitoring, than to go to the time and expense of trying to remove these priests from ministry through a canonical process.     

The current crisis in our Church is painful to all of us.  It is made more so by the fact that while our Archdiocese has talked about being open and transparent; we seem unable to do this. We continue to be reactive instead of proactive in our communication efforts, and, at least at this point, our words are not supported by our deeds. 

 As I mentioned at the beginning of this column, certainly the current revelations have been painful.  It is important, though, that they be brought into the open.   It is only in being open and honest regarding these matters that we can begin the healing process and move forward in faith and hope. I invite you to join your prayers to mine that this process will begin soon.   

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