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Dear Parishioners; Each year, I try to publish the Parish Budget and Financial Report. The latter can be complicated reading, especially for those who are not professional accountants. Nonetheless, I do hope that the following will assist you in understanding how your hard-earned contributions are utilized. Where wording is vague or confusing, I have tried to include some brief explanations. The Diocese of Brooklyn follows the traditional fiscal year of September through August. For your information, I have also added the School Budget and Financial Report. These reports have been reviewed and approved by the Parish Accountants, the Parish Finance Board, and the Parish Trustees. Our Lady of Mercy Church
Due to a very generous bequest, the parish for the first time in years had a surplus at the end of the last fiscal year. We cannot plan on bequests, nor can anyone predict with accuracy the behavior of the stock market. It is better to budget as if the next fiscal year did not provide for an increase in gains from about $400,000 in investments or for bequests. The $400,000 in the Diocesan Compostela Fund is the basic reserve of the parish. If we utilize it, then there is no fall-back. The Diocese cannot help us. In fact, Diocesan funds come from the parishes (cf. assessment above and Annual Catholic Appeal) not the other way around. It was the generous but somewhat misguided attempt of former Diocesan officials to support fiscally insolvent parishes and schools that has led the Diocese of Brooklyn into a most difficult financial situation. I am proud to say that in comparison to the Actual Income and Expenses of 08/09, we did very well this fiscal year. In 08/09, total income was $805,030.35 and total expenses were $868,569.38 with a loss of -$63,539.03. There were no bequests and, as we all know, the stock market collapsed. The result was cumulative loss of -$112,460.097. Since then we have also made major reductions in staff and other areas. Yet, still, it is wise to budget for a shortfall next year of -$26, 500.00. Hopefully, this will prove to be pessimistic and we will show some gains as in this year. Our Lady of Mercy SchoolFor your information, I am also including the School budget and actual numbers. The parish can no longer subsidize the school for ordinary expenses. Mrs. Dougherty has been an extraordinarily effective administrator. Except for a loan in the summer of 2008, the School, with the help of the Home School Association, has been able to meet ordinary expenses with tuition receipts, Home School assistance, and some very small investments. The parish does have the obligation of major capital school repairs. Because of this, but unlike other private schools which must provide for such possible expenses, our school still depends on the parish. Unlike other "private" schools, we are able to keep the tuition somewhat reasonable. It is for this precise reason that the school parents are asked to help support the parish, since the parish is responsible for the school building. As you can observe above, parish finances are fragile, especially if we go through a year in which the Stock Market fails to produce much income, or we lack any major bequests.
Monsignor John A .McGuirl | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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