Dear Friends of the Diocese of Lincoln,
This fiscal year, 2020-2021, was another year of pandemic challenges. The Catholic Church in our Diocese and others has continued to carry out the mission of the Church while remaining flexible and adhering to government restrictions to assist in keeping people safe and healthy. We are so thankful for the generosity of the Catholic community in the Diocese of Lincoln. They have blessed the ministries in their parishes and schools with gifts that have in turn blessed the whole Diocese.
This financial summary is limited to the activities of the Chancery of the Diocese. It is derived from the audited financial statements and does not include the activities of parishes, missions, schools, the Diocesan Investment and Loan Trust Fund, or other related entities.
While the global health crisis continued throughout this fiscal year, we did see improvement in many of our financial metrics. Our receivable balances decreased as we both collected many of outstanding Joy of the Gospel pledges and many of the loans and receivables due from parishes. Our investments held by the Catholic Foundation of Southern Nebraska grew due to the significant returns in the financial markets. These investments support our ministries, especially in the areas of the Good Shepherd Scholarship Fund, priest retirement funds and vocations. Pledges for our two diocesan wide appeals, The Charity and Stewardship Appeal and The Bishop’s Appeal for Vocations both increased year over year, 14% and 9%, respectively.
The Diocese operates shared insurance plans for health insurance and property casualty. Those plans operated in the black this year. Another bright financial spot was the investment returns to the Priest pension plan which is fully funded.
The Good Shepherd Scholarship distributed $2.4 million to parishes and schools for K-12 education, about half of which was funded by donations and the other half from Joy of the Gospel distributions. Additionally related to education, the Diocese saw donor funding for our centralized education technology office decrease in 2021 and it will come to an end in 2022. The office will now be fully funded through a per-student charge to each parish and school with a K-12 school.
The following information will provide more detail into the financial activities of the Chancery that support the Catholic community in the Diocese of Lincoln.
Sincerely,
Tracy Lockwood,
Chief Financial Officer
Every year the Chancery goes through a detailed budgeting effort with the goal of budgeting at a break-even or better operation. For fiscal year 2020-2021 we were within a narrow margin of our break-even operating budget of $9 million in expenses. Our budget for the year we are in, 2021-2022, is mostly consistent with prior years with the exception of the change in the funding for the Educational Technology department. The Educational Technology department provides standardized, current technology to diocesan schools. Prior to the 2020 school year, this department was funded by a private foundation which is now winding down its contribution over a three year period. The department is now an assessment to the supported institutions. The cost of operating the Educational Technology department is approximately $2,000,000 per year and will be fully funded by an assessment by the school year 2022-2023.
The charts here exclude the programs for property and health insurance and the St. John Vianney program which are considered non-operating.
Joy of the Gospel
Glossary of Terms
Amounts due to parishes and other diocesan entities: These are primarily rebates from Joy of the Gospel and Charity and Stewardship Appeal that are payable to parishes.
Apostolic: Provides services including but not limited to Hispanic ministry, pro-life programs, hospital and nursing home ministries, prison chaplaincy, etc.
Contributed Support: Includes unrestricted and restricted donations to CBL from generous benefactors.
Development: Expenses related to managing diocesan appeals and campaign including the Joy of the Gospel and Charity and Stewardship Appeal.
Education: Expenses of the Diocesan Catholic Education office including the Education Technology initiative which collectively support the Catholic elementary and high schools of the diocese
Family Life: Includes ministries for family life, youth ministry, religious education and catechesis and evangelization which administer youth events, pilgrimages, retreats for young people, families and engaged couples, Natural Family Planning, support for parish programs of evangelization and formation.
Insurance and benefits program: The Diocese administers the health care insurance plan and property and liability insurance program for all Diocesan employees, parishes, schools and related ecclesiastical entities. The expense line represents premium, claim and other expenses related to these shared service plans.
Joy of the Gospel restricted net assets: Assets and liabilities of the Diocese of Lincoln reflect the significant pledges and contributions made to the Joy of the Gospel campaign (JOG).
Loans, Net: Loans issued by the Chancery to parishes or schools. These loans are from the Chancery directly and not from the Lincoln Diocesan Investment and Loan Trust.
Operational Assessment: Annual contribution from parish collections to the centralized ministries and services of the diocese, St. John Vianney Association for priest retirement and the SNR.
Program revenue: Funds received in fees for programs, retreats, etc.
Program services: Direct and indirect costs related to providing the ministry related programs and services.
Propagation of the Faith: “Missions” office for bringing the Catholic faith to people around the world.
St. John Vianney: Retirement, medical and other assistance for the care of our priests.
SNR: The diocesan newspaper mailed to all homes in the diocese; the Southern Nebraska Register also assists with broader communications such as social media, video production and the diocesan website.
Supporting Services: Operational support and maintenance, upkeep and depreciation for diocesan properties including homes for Bishop Conley and Bishop Bruskewitz, salaries and health insurance of priests and laity serving in administrative and ministry leadership, diocesan support for the Nebraska Catholic Conference and USCCB, and legal and accounting fees.
Tribunal: The tribunal deals with issues of canon law, primarily declarations of nullity.
Vocations: Funds the education of seminarians, and provides opportunities for discernment to priesthood and religious life.
Accountability
Transparency and accountability are important parts of our stewardship responsibilities. Each year the Diocese subjects itself to an independent audit. Diocesan leadership has established and regularly confers with the Diocesan Finance Council. The council, whose existence is required by canon law, focuses on financial policies, procedures and activities of the Church in Southern Nebraska. Current members of the Diocesan Finance Council are:
Bishop James Conley
Fr. Justin Fulton, Vicar General
Tracy Lockwood, CFO
Msgr. John Perkinton, Diocesan Superintendent of Schools
Doris Robertson, St. Joseph Parish, Lincoln
Monica Balters, Cristo Rey Parish, Lincoln
Tony Fulton, St. Peter Parish, Lincoln
Fr. Leo Kosch, Sacred Heart Lincoln
Alan Slattery, Cathedral of the Risen Christ Parish, Lincoln
Pat Kenner, Sacred Heart Parish, Hebron
Tammy Beck, St. Joseph Parish, Lincoln
Sean Wolfe, St. Patrick Parish, McCook
