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Again this year the Archdiocese of Atlanta is publishing the annual
financial report of the Chancery Office. Included are the following financial
statements:
Balance Sheet - Fund Basis
June 30, 1976 and 1975
Statement of Changes in Fund Balances
For the Years Ended June 30, 1976 and 1975
Statement of Current Fund Revenues and Expenses
For the Years Ended June 30, 1976 and 1975
Notes to Financial Statements
June 30, 1976 and 1975
These financial statements relate only to the Administrative Offices of the
Archdiocese. While subsidies to schools 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 audited by Harris, Kerr,
Forster & Company and their report, complete with detailed supporting schedules,
is on file in the Chancery Office.
The balance sheet at June 30, 1976 and 1975 is prepared on the fund
basis of accounting as reconmended by the National Conference of Catholic
Bishops and include the following funds:
Current
Endowment and Similar
Plant
Loan
Custodian
THE CURRENT FUND is represented in those assets and obligations
concerning the operation of the Administrative Offices of the Archdiocese,
including subsidy of educational, pastoral and social programs.
ENDOWMENT AND SIMILAR FUNDS are invested funds set aside for speci
fic purposes such as charity and education, and are not available for general
operating purposes.
PLANT FUNDS consist mainly of land, buildings and equipment, in
cluding such properties as sites for future parishes, Newman centers at
the various universities and St. Pius High School and field house together
with land held for other purposes. The cash, marketable securities and
certificates of deposit reflected in this fund are designated for future
expansion.
LOAN FUNDS represent funds which are loaned or are available to be
loaned to parishes and missions.
CUSTODIAN FUNDS represent those for which the Chancery acts in the
capacity of an agent for parishes and other Archdiocesan entities in the
investment of funds owned by the parishes and entities. Accordingly, none
of these funds represents assets of the Chancery Office.
CURRENT FUND REVENUE AND EXPENDITURES:
The source and disposition of current fund revenues on a percentage
basis is presented below:
Contributions
Charity and development
Dependent' children
Parish assessments
Investment and other income
Source
Year
June
1976
Ended
30,
1975
347.
347.
7
7
39
42
20
17
Education
School subsidies
Seminary
Religious education
Other
Dependent children
Social services
Pastoral
Georgia Bulletin
Administration of
Archdiocese
Excess revenue avail
able for debt reduc
tion; expansion,
etc.
1007. 1007.
Year Ended
June
30,
1976
1975
207.
217.
4
4
6
5
6
5
10
10
10
10
10
5
1
1
28
25
5 w
14
1007.
1007.
Source of Current Fund Revenue
Allocation of Current Fund
Sources
Year Ended June 30,
1976 1975
Disposition
Year Ended June 30,
1976 1975
-
1,200,000
s
V
-
1,100,000
X
V
X
Investment and
other income
X
X
X
1,000,000
>
N
S
V
X
Contributions from
-
900,000
\
V
mission boards and
other
X
800,000
x
X
\
\
Contributions for
dependent children
X
V
-
700,000
600,000
500,000
400,000
\
X
X
N
Contributions for
charity and develop
ment
X
X
X
X
-
Assessments
300,000
X
X
\
-
200,000
X
X
X
>
-
100,000
Balance
available
for debt re
duction, ex
pansion, etc.
Other
Social
Services
Education
Administra
tive
Notes To Financial Statements... June 30,1976
Note 1 - Summary of significant accounting policies
Basis of reporting
The accompanying financial statements have been prepared in accord with
principles of the fund method of accounting. The statements include only
the transactions of the Administrative Offices of the Archdiocese. Sub
sidies to auxiliary services and programs are included but detailed
operations of such subsidized activities 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.
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.
Investments in marketable securities
Investments in marketable securites are valued at cost or, if acquired by
gift, at fair market value at the date thereof.
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,
and equipment at June 30, 1976, follows:
A summary of land, buildings
Insurance or
Appraised
Values
Acquisitions
at Cost
Subsequent to
Land
buildings
Furniture, fixtures and
equipment
Automobiles
$ 322,875
$ 741,929
$1,064,804
650,000
2,467,668
3,117,668
231,000
226,160
457,160
-
16.742
16.742
$1,203,875
$3,452,499
$4,656,374
Except for cost of school renovations at Our Lady of Lourdes Parish, the
foregoing does not include properties used by parishes and missions of the
Archdiocese.
Additions of furniture, fixtures and equipment are capitalized while replace
ments are charged to current fund expense.
No allowance for depreciation has been provided in the accounts in accord
with established accounting practices for similar institutions.
Real estate transactions
During the year ended June 30, 1974, the Archdiocese sold certain real
property ‘ (see note 2) and the transaction has been recorded as an install
ment sale. Gain on the sale is recognized when cash payments on the note
receivable taken as part of the selling price are received.
(3) A purchase money promissory note, secured by a purchase money
deed to secure debt for $5,053,936 due in five equal annual
principal installments of $1,010,787 commencing on October 1,
1979. Interest at the rate of 77° per annum is payable annually;
the first payment became due on October 1, 1974.
The selling price exceeded book value by $3,830,142 and the portion of the
gain recognized during the year ended June 30, 1974, on the installment method
amqunted to $684,638; the remainder of $3,145,504 has been deferred pending
receipt of payments on the principal amount of the note (see note 7).
At the closing on October 1, 1973, the Archdiocese leased back from the buyers
for a term ending on July 1, 1976, the portion of the property on which St.
Joseph's High School is located. The amount of rent payable by the Archdiocese
under this lease is based on a formula whereby the aforementioned interest
payable by the purchaser on the remainder of the purchase price is reduced
in the same proportion as the portion of the property covered by the lease
bears to the portion of the property covered by the previously mentioned pur-?
chase money deed to secure debt. During the term of the lease the ratio of
leased property to total property covered by the deed to secure debt was
49.327>. The Archdiocese is obligated to pay, as additional rent, any
ad valorem taxes assessed on the property used by St. Joseph's High School.
The pro-rata portion of such taxes through June 30, 1976, amounting to
$52,442, has been charged to unexpended plant funds.
Interest income from the note receivable equal to the total of rental and
property taxes is reported in the plant fund. The remainder of the interest
income is budgeted and used for current fund purposes and, accordingly, is
reflected as income of the current fund.
On July 1, 1976, with the expiration of the lease the school was closed.
Note 3 - Retirement plans
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 deemed necessary to keep the plan
actuarially sound based upon the recommendations of an actuary. The actu-
arially computed value of vested benefits as of January 1, 1976 (most
recent computation) exceeded the pension fund assets by approximately
$208,500. Contributions to the retirement plan by the Administrative Offices
for the current year amounted to $35,000. Parishes within the Archdiocese
have been billed additional amounts of approximately $12,000 which will be
paid into the plan when received.
Effective July 1, 1975, the Archdiocese adopted a retirement plan for lay
employees within the Archdiocese. The total pension cost for this plan
charged to current fund expenses for the year ending June 30, 1976, was
$39,472. This amount includes normal cost and amortization of past ser
vice cost over a ten-year period at the rate of $18,028 per year.
Note 4 - Notes and Mortgages Payable
June 30. 1976
June 30, 1975
The notes and mortgages payable are secured by properties of the Administra
tive Offices of the Archdiocese with a book value of roundly $1,650,000 and
by real estate of various parishes and missions within the Archdiocese.
Note 5 - Loan funds
The amounts due from parishes relate, primarily, to funds receivable for
payment of Archdiocesan notes and mortgages payable. At June 30, 1976, the
allowance for doubtful loans account, in the amount of $150,000, is funded
by marketable securities in an amount equal to the allowance. These securi
ties have been designated to provide for estimated losses that may be incur
red by the Administrative Offices resulting from uncollectible loans.
Included in amounts due from parishes are loans to parishes, financed with
proceeds of Archdiocesan investments sold in 1974. The parishes will repay
these loans to the Administrative Offices in monthly installments over a
twelve year period to September 15, 1986, together with interest at a rate
which will be determined periodically by the Archdiocese. At June 30, 1976,
interest is charged at the rate of 8-1/27° per annum and the loans outstanding
amounted to $638,678, of which $40,340 is due within one year.
Note 6 - Commitment
The Archdiocese is committed under a contract for the construction of a rec
tory and parish center at Sacred Heart Parish. The total estimated cost of
construction is $446,000 of which $38,000 was paid during the year ended
June 30, 1976.
Note 7 - Subsequent events
Interest due on October 1, 1976 on the 77. purchase money promissory note in
the principal amount of $5,053,936 (see note 2) has not been received. Con
sequently, on October 20, 1976 the Archdiocese issued a notice to the maker
of the note indicating the intention to commence foreclosure proceedings on
the Ivy and Baker Street property that secures this note, if payment is not
received within 15 days from the date the notice is received by the maker.
Interest, net of rent, due on October 1, 1976 and accrued at June 30, 1976,
the date of these financial statements is as follows:
Due on Accrued at
October 1, 1976 June 30, 1976
Interest
Less rent on St. Joseph
High School
Net interest receivable
$353,776
(150.236)
$203.540
$265,330
(149.840)
$115.490
Maturities
Maturities
Current
Non-Current Current
Non-Current
Note 2 - Note receivable and deferred gain on sale of real estate
On October 1, 1973, the Archdiocese sold certain property located at Ivy
and Baker Streets, Atlanta, Georgia, the selling price of which was $6,153,936
payable as follows:
(1) Earnest money paid as of June 30, 1973
(2) Cash paid at closing, October 1, 1973
$600,000
500,000
77 0 Unsecured demand note
Current funds
Plant funds
Loan funds (see note 5)
803.984
803,984
78,600
260,000
555,654
894,254
to 9-l/27 0 notes and mortgages
Plant funds 71,206 749,689 17,320
Loan funds 206.613 3.603.989 356.327
Total notes and mortgages
277.819 4.353.678
114,894
3.224.531
373.647 3.339.425
$1.081.713 $4.353.678 $1.267.901 $3.339.425
If the Ivy and Baker Street property securing this note (see note 2) is fore
closed the basis in the property to the Archdiocese of $2,305,859 will be
restored to the accounts. In addition, the TL purchase money note receivable
in the principal amount of $5,053,936 plus accrued interest and the deferred
gain on the sale totaling $3,145,504 will be eliminated from the accounts.
The net effect of this transaction would increase the plant fund balance
approximately $280,000.