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source of current fund revenue
In cooperation with the National Conference of Catholic Bishops, the Archdiocese of Atlanta is publishing
financial data concerning the fiscal affairs of the Chancery Office and of the Parishes and Missions contained
within the Archdiocese.
Your attention is directed to these financial statements: the balance sheet, statement of changes in fund
balances, and the current fund statement of revenues and expenses. Detailed supporting schedules are contained
in the report of our auditors which is on file in the Chancery Office. These accounts relate only to the
Administrative Offices. While subsidies (granted mainly to Saint Joseph’s and Saint Pius High Schools and Our
Lady of Lourdes Grade School) and other auxiliary services and programs are included, the operating data of
such activities are not included. The accounts of the Administrative Offices have been certified by our auditors,
Harris, Kerr, Forster and Company. In addition to the presentation of the financial statements, we make
reference also to graphic charts which indicate the sources of revenue and their disposition.
The balance sheet at June 30, 1972, the end of the fiscal year of the Archdiocese, is comparative with that at
the end of the previous fiscal year. It is prepared on the fund basis of accounting as recommended by the
National Conference of Catholic Bishops and includes the following funds:
Current
Endowment and Similar
Plant
Loan
Custodian
A word with respect to some of the salient features regarding these funds is in order.
THE CURRENT FUND is represented in those assets and obligations concerning the operation of the
Administrative Offices of the Archdiocese, including the subsidy of educational, pastoral and social programs.
Current fund revenues consist primarily of funds received from assessments on the parishes for archdiocesan
administration, operation of the two high schools, and general purposes. Other elements contained in this
revenue category are funds received from the parishes for charity, development, care for dependent children, and
education of seminarians. The expenditures from these funds serve for the total administration of the
archdiocese in a pastoral sense, for education and for social services. Within the social service structure, a
significant amount is expended for dependent children. You may observe the individual items of revenue and
expense of this fund in Exhibit C of this report.
ENDOWMENT AND SIMILAR FUNDS are restricted in nature and are set aside for specific purposes such as
charity and education, and are not for general operating purposes.
PLANT FUNDS consist mainly of land, buildings and equipment, including such properties as sites for future
parishes, Newman centers at the various universities, Saint Joseph’s High School and related buildings, and Saint
Pius High School and field house together with land held for other purposes.
It should be borne in mind with respect to buildings and equipment that these represent primarily single use
facilities and are recorded for historical purposes only and in accordance with sound accounting principles. Their
valuation is reflected at insurance or appraised values at June 1, 1963 and the subsequent additions are valued at
cost. In fact with respect to church and school buildings and related equipment, some hold to a theory that these
should not be recorded in institutional financial statements. However, they do have a historical basis; thus, for
accounting purposes they have been recorded at the values as described.
LOAN FUNDS represent primarily loans which are made to parishes and missions. The amounts due from
parishes are in turn due by the Chancery Office to banks and other lenders. Thus there is no net realizable
balance in these funds which could be attributed to the Chancery Office.
CUSTODIAN FUNDS represent those for which the Chancery acts in the capacity of an agent for parishes and
other archidocesan entities in the investment of funds owned by those parishes and entities. Accordingly, none
of these funds represent assets of the Chancery Office.
SOURCES OF CURRENT FUND REVENUE:
We ask you to refer to the illustration of sources of revenue and their disposition represented in the
accompanying graphic charts. With respect to the sources of revenue, the greatest portion (26%) was received
from the Charity and Development Fund Drive; high school assessments levied on the parishes yielded 21% of
total revenue; mission boards and other contributions totaled 12%; and contributions for dependent children
totaled 6% of revenue. Administrative and general assessments, rental income and investment and other income
combined, totaled 35%; thus accounting for total revenue for the year in percentages.
DISPOSITION OF REVENUES:
Total current fund expenditures during the year amounted to $876,942. Of that amount 23% or $204,206.00
was expended in subsidies for the two archdiocesan high schools and Our Lady of Lourdes Grade School.
As reflected in the graphic illustration, expenditures were distributed as follows:
High School Subsidies
23%
Dependent Children
12%
Religious Education
6%
Campus Ministry
4%
Pastoral
8%
Seminary
6%
Social Services
9%
Other
32%
Total
100%
-year ended June 30, 1973
CONTRIBUTIONS:
A.SSESMENTS:
Dependent Children
Minion Boardi
and Other -
Investments and
Other Incone
Rental Incone
allocation of current fund expenditures
- year ended june 30, 1972
Seminary
Dependent Children
Pastoral
Social Services
Campus Ministry
Central Office of Education
Subsidy to Georgia Bulletin
Archdiocesan Administration:
•— Payroll and Related Expenses
Religious Education
School Subsidies ---------------------
Includes subsidies to the following:
St. Plus X High School
Office Rent
St. Joseph's High School
Priests' Retirement
Our Lady of Lourdas School
Other Administrative
notes to financial statements
june 30, 1972
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
A. Basis of Reporting:
The accompanying financial statements include only the transactions of the
Administrative Offices of the Archdiocese. Subsidies of auxiliary services and
programs are included but detailed operations of such subsidized activites are
not included in the accounts of the Administrative Offices and, accordingly,
are not included in the accompanying financial statements. Moreover, this
report does not include the financial statements of the Parishes and Missions
which are integral components of the Archdiocese of Atlanta.
2. NOTE RECEIVABLE:
The note receivable in the principal amount of $416,448 is due in four
annual installments of $104,112 plus interest at the rate of 8%. The next
installment of principal and interese is due on March 4, 1973. The note is
secured by deed to secure debt on land and improvements thereon in DeKalb
County, Georgia. The grantor of the deed agrees that, prior to release of any
land occupied by buildings or commencing demolition, destruction and
removal of any part of the buildings, he shall pay the grantee $80,000 which
shall be credited against principal payments on the notes in the inverse order
of their maturity dates.
Under terms of suplemental trust indentures dated February 8, 1971, the
serial notes are secured by deeds to secure debt on certain Archdiocesan
properties used by the Parish of St. Jude the Apostle and by St. Pius X High
School. In the event that all debt (other than that represented by the serial
notes) secured by mortgages, security deeds and like instruments on any of the
properties does not exceed the aggregate sum of $500,000 the property
conveyed by the aforementioned security deeds relating to St. Jude’s Parish
and to St. Pius X High School shall be reconveyed.
Title to all property of the Archdiocese vests in the Archbishop and his
successors in office while obligations of the Archdiocese, likewise, are those of
the Archbishop and his successors in office.
B. Investments in Marketable Securities:
Investments in marketable securities are valued at cost, or if acquired by
gift, at fair market value at the date thereof.
C. Land, Buildings and Equipment:
Land, buildings and equipment acquired on or before June 1, 1963, are
stated at amounts derived from insurance values and land appraisals as of that
date. Subsequent additions are recorded at cost. A summary of land, buildings
and equipment on June 30, 1972, follows:
Insurance Or
Appraised
Values
June
1,
1963
3. LONG-TERM LEASE:
The Archdiocese is obligated as lessee of an office building housing
administrative and program offices. The lease provides for annual rental of
$52,080 for a term of four years commencing June 1, 1969. The lessee has an
option to renew the lease for an additional five year term at a rental of
$55,800 a year and an option to acquire the landlord’s leasehold interest in
the premises under certain conditions involving an exchange for property to be
selected by the lessor with an approximate value of $287,000. Property taxes,
utility charges, maintenance and janitorial services are payable by the lessor.
4. RETIREMENT PLAN:
On July 1, 1969, the Archdiocese adopted a retirement plan which covers
all priests within the Archdiocese. The Archdiocese shall make contributions
in such amounts and at such time as it shall determine to keep the plan
acturially sound based upon the recommendations of an actuary. Total
retirement plan expenditures for the current year amounted to $25,000 by the
administrative offices. Parishes within the Archdiocese have been billed
additional amounts of approximately $9,800.
5. NOTES AND MORTGAGES PAYABLE:
Further, terms of the supplemental trust indentures provide, among others,
that so long as any of the notes remain outstanding and from and after
February 8, 1971, the Archbishop will not place any mortgage on any of the
properties of the Archbishop, exceeding in the aggregate SI,750,000,
excluding any mortgage or similar security instrument granting a security
interest in real property of the Archbishop securing the aforementioned serial
notes, nor shall the Archbishop incur or allow to exist any indebtedness
exceeding forty percent of the net book value of the assets of the Archbishop
as of the date such indebtedness is incurred. The Archbishop obtained a loan
of $1,250,000 for use of the Archdiocese, secured by security deed on
properties used by the Village of St. Joseph and by Holy Cross and by Holy
Spirit Parishes and subsequent to this loan the limitation on additional
borrowing, as referred to above, amounted to S500.000.00.
6. DUE FROM PARISHES:
The amounts due from Parishes related, primarily, to funds receivable for
payment of Archdiocesan notes and mortgages payable.
/Acquisitions
At Cost
Subsequent To
June 1,
1963
Total
June
30,
1972
Land
Land Improvements
Buildings
Furniture, Fixtures
and Equipment
Automobiles
$1,274,100
1,603,000
265,100
$1,086,968
23,260
1,646,054
221,288
25,464
$2,361,068
23,260
3,249,054
486,388
25,464
Total
$3,142,200 $3,003,034 $6,145,234
Except for certain properties of Our Lady of Lourdes Parish, the foregoing
does not include properties used by parishes and missions of the Archdiocese.
No allowance for depreciation has been provided in the amounts in accord
with established accounting practices for similar institutions.
Maturities
Current
Non-Current
Demand Notes Payable -
Unsecured
$850,805
$
Notes and Mortgages
271.466
4.160.115
Total
$1,122,271
$4,160,115
The notes and mortgages payable are secured by properties of the
Administrative Offices of the Archdiocese with a book value of roundly
$2,500,000 and by real estate of various Parishes and Missions within the
Archdiocese.
7. SUBSEQUENT EVENT:
On August 2, 1972, an otpion agreement was executed for the sale of
certain property owned by the Administrative Offices of the Archdiocese of
Atlanta. Upon exercise of. the option, this property, recorded on the books at
approximately $2,400,000, will be sold for about $6,000,000. At October 17,
1972, the purchaser had deposited $390,000 in escrow in accordance with
terms of the agreement.
If not exercised by October I, 1974, the option expires.
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