FYI2004 Diocese

Monday January 23, 2006

Clergy abuse crisis continues financial depletion of the Diocese.

23 Priest removed for sexual misconduct receive salaries totaling $391,000.00.

In reviewing the annual financial report for the 2005 fiscal year of the Worcester Diocese, it is obvious to those who can read between the lines that clergy sexual abuse crisis is depleting cash from diocese.

The Office of Healing, whose director resigned early last year, still registered an expense of $179,000.00. Therapeutic assistance was recorded at $65,000.00 and legal services were listed at $144,000.00 dollars. Total expenses were $388,00.00.

This figure seem extremely disproportionate with the actual services provided to clergy abuse victims in the Worcester Diocese. Not one new clergy abuse victim reported receiving services by the Office of Healing. One alleged victim did contact the Office, was dissatisfied with the interaction and never returned.

The Worcester Diocese has the lowest clergy abuse settlements in all of the United States, averaging $5,000 to $10,000.00 per victim, before attorney fees. Many cases still sit in limbo awaiting a judicial ruling from Superior Court Judge Jeffrey Locke.

What is not listed plainly for all the Worcester Faithful to see in the annual financial report is that $391,000.00 was spent on annual salaries for 23 Worcester diocese priests that have been removed from ministry due to inappropriate sexual misconduct. This figure does not reflect additional fees for medical insurance which is also supplied.

Bishop McManus stated without the donation of $1million dollars by an anonymous individual the diocese would be in financial crisis. Nearly half of that money went to maintain priest who have sexually deviant records. The other half of million was spent to maintain the effects of the clergy abuse crisis.

Perhaps it is time the Worcester diocese undertakes the task of defrocking priests who harmed our most innocent of children.

It would also seem much more appropriate to make honorable and fair settlements with those clergy abuse victims who have yet to settle and stop spending the faithful's collections on supporting those individuals with sexual misconduct records.

The decrease in revenue and in church attendance truly reflects the lack of moral and ethical leadership from within the diocese. The old boy intimation factors implied ten years ago still exist today. Until the direction of the chancery changes, collection and attendance will continue to decrease.

Friday January 20, 2006

$1 million donation keeps diocese in the black

WORCESTER— The Catholic Diocese of Worcester broke even financially in the past year, but would have run a significant deficit if not for a nearly $1 million gift from an unnamed donor.

Bishop Robert J. McManus, in releasing the annual financial report for the 2005 fiscal year that ended Aug. 31 said the diocese had $34,534 in extra revenue going into the 2006 fiscal year and it called it "a virtual break-even year."

"If it were not for the generosity of a significant anonymous contribution of roughly $1 million, we would not have been able to offset those individual deficits and thereby share this overall positive financial report," the bishop said.

The diocese reported income of more than $34,517,934 and spent all but $34,534.

The diocese reported deficits of $271,300 in the 2004 fiscal year and $739,996 in the 2003 fiscal year.

Bishop McManus said the diocese ran deficits in the St. John Cemetery System, Priest's Retirement Program and the Diocesan Expansion Fund.

The bishop also noted the cost of significant interest expenses the diocese incurred from past deficits and by unpaid bills to parishes for various services, including insurance policies bought by the diocese in group plans.

The full report can be accessed at http://worcesterdiocese.org/2005%20Annual%20Rpt/FY2005-rel.htm

Monday January 10, 2005

Worcester Bishop Robert McManus lives the life of luxury while clergy abuse victims are thrown a few meager crumbs.

A review of the financial report recently issued by the Diocese of Worcester for the 2004 fiscal year reveals a budget of $33,771,673. The bishop appears to live very well at a time when the amount of money budgeted for victims of clergy sexual abuse is only pennies on the dollar.

The Worcester diocese, unlike any other diocese in the United States, has refused to settle clergy abuse allegations in group settlements. Legal representation of Goulka and Reardon continue to advocate for dismissal of the remaining civil lawsuits, which would leave the victims with nothing.

The pledge of Bishop Robert J. McManus at his installation last May to heal the wounded has proven to be without merit. Bishop McManus lives the lifestyle that resembles a king with a budget for his residence of $107,000 for one person to live on. His office obtained an additional $209,047 in funds. With one-third of a million dollars in expenditures, it hardly seems like the bishops live a life of poverty.

The cases involving clergy sexual abuse that have been settled are said to be in the range of $3,000 to $7,000 and $10,000 is the top disclosure. It is also difficult to get more information since these suits are being written with confidentiality agreements. Clergy abuse victim Mr. David Lewcone reported the Worcester dioceses paid him $110,000, after he was sexually abuse by Fr Thomas Teczar, other reported payments are as high as $800,000 for one Rev. Robert Kelley victim in the 90's.

Of the 38 lawsuits filed against the diocese, 13 remain to be settled. Gavin Reardon, who represents the diocese in the lawsuits, said the diocese is seeking dismissal of the remaining 13 civil lawsuits based on issues of First Amendment rights due to the diocese and the issue of the statue of limitations that would make some cases too old to litigate. The diocese is also citing a previous ruling by a Springfield judge that upheld the state law that granted charitable immunity to religious institutions and caps the amounts of settlements at $20,000. Currently the ruling on the motion by Justice Jeffrey Locke in Worcester Superior Court has not been released.

According to recent articles in the Worcester Telegram, Monsignor Thomas Sullivan, diocesan chancellor whose office received $74,000 in the budget, disclosed that he felt the pending clergy abuse civil suit were of little merit. His office received more money than any clergy abuse victim in the last year and may well exceed the total of all payments applied. Monsignor Sullivan additionally was identified in a legal deposition this year with holding clergy abuse information in a “secret” file he keeps within the chancery, placing a serious question on his credibility. With Monsignor Sullivan’s additional position as liaison to the district attorney’s office the “secret Grand Jury” action further appears to have granted legal protection to the diocese.

In a September 2004 deposition, Bishop Reilly disclosed that the Priests’ Assistance Fund was responsible for payments to priests who have been removed from ministry for allegations of sexual abuse. A review of documents shows the Worcester diocese has 28 priests eligible to receive such compensation. The fund in the 2004 fiscal year that ended on August 31, 2004 had $349,457. It is not known how much of this money is actually paid to these priests because the diocese said the money could also go to priests placed on medical leave.

A review of the Diocesan Directory indicated only four priests could be identified as being on possible medical leave. If the bishop’s pledge for transparency was being honored we would have truthful disclosure and these questions would be honestly answers. The American bishops signed off on a Charter for the Protection of Children and Young People at the June 2002 meeting in Dallas, Texas. A section of the charter says that ''each diocese will develop a communications policy that reflects a commitment to transparency and openness'' and that diocese ''will deal as openly as possible with members of the community.''

The Worcester diocese’s Office for Healing received $170,845 in operational expenditures. Again we see a huge difference in monies given to the victims of clergy sexual abuse and the administrators. Attorney Patty Engdahl’s salary for directing that office has never been publicly disclosed. Her office also include Mrs. Frankie Nugent, a part-time victims advocate. Add the additional legal services of $131,875 and the total expense is $302,720. But the victims have gotten zero.

The Office of Healing and Prevention has remained silent in the face of legal abuse perpetrated upon the victims of clergy abuse in the diocese and at no time has either Ms. Engdahl or Ms. Nugent stood publicly and chastised the diocese insurance attorney, Ms. Joanne Goulka, for the harsh and rash treatment of many of those alleged victims. The office has not tried to advocate for fair and equitable monetary settlements. This office has failed to reach out to those who have been victimized by the church scandal. Horror stories were released in 2004. One victim was issued a legal notice after her attempt to contact the bishop’s office, a move on her part she said was made at request of the bishop.

The Worcester diocese today remains in turmoil. We have seen a resurgence of the Voice of the Faithful movement with David O’Brien, well-known professor at Holy Cross College, leading the drive with a strong take no nonsense approach.

Seven new clergy abuse civil suits have been filed, named three previously unknown Worcester clergy members. The latest civil suit – WOCV2005-0002 – additionally names District Attorney John Conte as a defendant. Also, action is in progress to seek criminal charges of child endangerment and a meeting is planned this week with the Massachusetts Attorney General’s Office.

Saturday, January 8, 2005

Diocese cuts its fiscal losses

Deficit reduced by more than half from last year
By Kathleen A. Shaw
Telegram & Gazette Staff
kshaw@telegram.com

Worcester-The Diocese of Worcester ended the 2004 fiscal year with a loss of $271,300.

Although the diocese finished in the red, the losses were significantly less than the previous year, when the diocese had a loss of nearly $800,000.

Bishop Robert J. McManus, in releasing the financial report, said most services operated within their budgets, “and I offer my thanks to our diocesan directors for their commitment to fiscal responsibility.”

“Numbers, however, cannot relate the impact we have had through our various agencies and ministries upon the tens of thousands of people we serve throughout our diocese and Central Massachusetts,” the bishop said.

The diocese received income from parishioners through what is called the cathedraticum for a total of nearly $2 million. The insurance program yielded $729,595, and investments brought in $640,120. Bequests to the diocese brought $127,725 in income.

The report, also to be available online at www.worcesterdiocese.org and printed in yesterday’s edition of The Catholic Free Press, was issued after a complete audit by O’Connor Maloney & Co. P.C. of Worcester. The fiscal year ended Aug. 31.

The largest losses came from the St. John Cemetery system, which continued to invest in capital improvements at many former parish cemeteries that joined the system in the past few years. The cemetery deficit was nearly half of the previous year’s deficit. The cemetery system ended up $377,528 in the red this past year.

The Catholic school system took in $15.7 million in revenue and ended the year with a surplus of $111,529. This included income of nearly $13 million from tuition, $1.7 million from fund-raising, $658,275 from the bookstore, $158,550 in parish assessments, and $118,345 in other income.

The Diocesan Expansion Fund, which functions like a bank, ended the year with a surplus of $154,512. The fund received $1.9 million in investment income and another $1.8 million in interest on loans it made. The fund paid out $3.2 million in interest on its savings accounts, spent $237,986 on loan forgiveness, and administration of the fund cost $196,300.

The Priests Retirement Fund also operated at a loss of $289,862 because of costs involved in assisted living and medical services for older priests being cared for in rectories. The diocese managed to cut the loss from the $577,288 deficit the previous year.

The retirement fund received $519,000 from the Bishop’s Fund, $939,004 in parish assessments, $268,755 in investment income, and $246,071 in donations. It cost the diocese $148,000 to maintain priests at the Vianney House for retired priests, which is operated by the diocese, and it cost more than $1.4 million to support retired priests. The diocese paid out another $660,633 for priests in nursing homes or assisted living care.

Diocesan central administration took in more than $3.4 million, but expenses also exceeded its budget, and it finished with a loss of $41,754.

The diocese continued to pay for services related to the clergy sexual abuse scandal. A number of the pending civil lawsuits related to alleged incidents of sexual abuse were settled in the past year. Several are still pending, and six new suits were recently filed. The diocese said it paid out $131,875 for all legal services it incurred during 2004. The Office of Healing and Prevention received a total of $170,845.

A total of $82,100 was paid out in therapeutic assistance. The fiscal affairs office operated with a budget of $386,999. Interest on debts was $624,540.

The Priests’ Financial Assistance Fund, which retired Bishop Daniel P. Reilly testified in a deposition is where priests can be paid when they are removed from ministry because of misconduct allegations, was set at $349,457. The diocese has said, however, that not all this money goes for removed priests, but it also goes for priests on leave for medical reasons.

The financial report also shows that the diocese created a “bad debt” reserve of $115,000 and had a “loan receivable write-off” entry totaling $210,000.

Also in central administration, the bishop’s office spent $209,047. The bishop’s residence cost $107,066. Donations and memberships cost $233,813. The Moderator of the Curia cost $120,479. The Tribunal, the church court, cost $249,696 to operate. The chancellor’s office spent $74,928. The Vicar for Priests was budgeted at $19,121, and the Vicar for Religious had a $50,471 budget.

The Bishop’s Fund took in more than $3.8 million and spent it all on the programs that the fund supports. The Catholic Free Press, the diocesan newspaper, took in $821,475 in revenue, but expenses exceeded that amount and the paper ended with a loss of $25,240. The communications office spent about $124,000.