My Dear Friends in Christ,
We are pleased to present the audited financial statements of the Diocese of Wilmington, Inc. This is the parent corporation of the Catholic Church in Delaware and the Eastern Shore of Maryland. It provides administration and support to parishes, schools and affiliated Diocesan corporations, along with direct ministry in a variety of programs. The financial statements are audited by a certified public accounting firm each year for compliance with accounting principles generally accepted in the United States. We believe that such a complete financial reporting is consistent with our ongoing commitment to transparency, and greatly helps us with the work of the Church. As reflected in the financial statements, without the generosity and support of the Catholic faithful, the many pastoral, educational, and charitable services and ministries the diocese offers would not be possible.
Compliance with generally accepted accounting principles requires that our statements contain terms and concepts that may be unfamiliar to some readers. The following summary is intended to provide a brief explanation of some standard accounting language.
The purpose of a balance sheet is to provide a listing of assets and liabilities as of a specific date; for our financial statements it is June 30, the end of the fiscal year. The difference between what is owned (assets) and what is owed (liabilities) yields net assets. Within the net asset section, amounts are divided by restrictions that have been placed on gifts by donors. This ensures that monies given for a specific purpose are only used for that purpose. Unrestricted net assets are available for any purpose. As you can see, the Diocese of Wilmington has benefited greatly from the generosity of our people. $21.5 million of $30.3 million in net assets is restricted in use. There are more than 60 individual restricted accounts, with some funds dating back to the early part of the 1900’s. The most significant examples include $8.7 million in the Diocesan Education Fund that provides tuition assistance for families wanting a Catholic Education and $4.2 million for the Sustaining Hope for the Future Capital Campaign. Within the Restricted Asset section you will also see $29.1 million under the captions “Assets held for Affiliates” and “Assets Owed to Affiliates”. This money belongs to parishes and other related organizations, such as Catholic Cemeteries and Catholic Charities. Since these funds are invested in the Diocese’s investment program, they are shown on the Diocese’s balance sheet, both as an asset and a corresponding liability.
The statement of Support, Revenue, and Expenses is another name for the income statement. It captures income and expense information over the fiscal year. Similar to the balance sheet, restricted and unrestricted activities are reported separately. Principal sources of revenue, like the Annual Appeal, Parish Assessments and Insurance Premiums are noted, as are ministry expenses and insurance and employee benefit cost. The income statement calculates a change in net assets as the difference between income and expenses.
The financial statements also include a cash flow statement. This report reconciles the change in cash from one year to the next. It is most often used by creditors to see if the organization has sufficient cash flow to pay its bills.
Again, we are pleased to present audited financial statements of the Diocese of Wilmington, Inc. for the fiscal year ending June 30, 2014. We hope that the information provided here will be helpful to all who have an interest in or wish to learn more about the Diocese. The statements can be viewed at the link below.
Joseph P. Corsini
Chief Financial Officer