2024 Bishops Report to the Diocese
Dear Brothers and Sisters in Christ,
Grace and peace be with you!
I appreciate this annual opportunity, along with our Diocesan Finance Officer, Angela Laville, to share directly with you details of the Diocesan Financial Report, our financial stewardship of the resources provided by your donations and other gifts supporting the work, ministry and mission of the Church entrusted to us by Jesus Christ. Your gifts, sacrificial offerings, bequests, and tithes enable our diocese to sustain and appropriately grow the ministries and services that support and enable our parishes, schools and other institutions to be all they are meant to be.
In the Scriptures, Jesus teaches in parables about good stewardship—how we each have a responsibility to use well the gifts that God has given us. As your bishop, I must be a good steward of not only my own personal gifts, but also those that you, the Catholic faithful, entrust to the Church for its mission.
As you will note from this report, our diocese is in a strong financial position. Last year, we had a successful Annual Catholic Appeal and were successful in other key appeals which support seminarian education and our Bright Futures Schools. Our 2024-2025 Annual Catholic Appeal is under way and your contribution remains essential to the mission and ministry of the Church. Your participation this year at some level is itself an expression of faith.
The past year has been a blessed one for our diocese in many ways. Several years removed from the pandemic, our parish communities continue to see a restoration of vitality in worship, evangelization, and charitable service. In addition, overall parish offertory increased in the diocese last year. Catholic School enrollment remains steady, helped partly by the families who are able to take advantage of the MOScholars Program in our diocese.
At the very end of 2023, we were blessed to ordain one new priest, and we celebrated a second priest ordination in May 2024. We are seeing healthy growth in the number of men discerning the priesthood, with 19 seminarians from our diocese in various stages of formation. As part of our stewarding responsibility, we have strategically examined how we can use our resources most wisely. In the past year, three of our rural mission parishes and one additional parish completed their mission and were closed which, while painful, will better apportion our clergy, facilities and properties for mission. Other parishes are stable, seeing strong growth, as many continue to transform into mission-oriented communities focused on growing God’s family and making disciples, which is evident in the numbers of people sharing their faith and in those entering the Catholic Church throughout the year.
As we prepare to welcome the infant Jesus into our hearts and our homes this Christmas, let us personally consider what difference he makes in our lives and make a choice to live fully for him. I offer my own thanks to each of you who play a part in renewing the Church which Jesus created and to which we belong, that there be life in abundance. (cf. Jn 10:10) Thank you for your faith, for your witness to your baptism, for your generous heart, and your acts of love in service to others. Thank you for your generosity in giving back to God from the various blessings God has given you; for indeed, “the Love of Christ urges us on!” (2 Cor 5:14).
Gratefully yours in Christ,
+ Bishop James V. Johnston, Jr.
Letter from the Diocesan Finance Officer
Stewardship and accountability for the financial resources of the Diocese of Kansas City-St. Joseph is critical to the mission of using resources wisely. With that, we wish to remain transparent and present the financial status of the components of the administration of the diocese for the fiscal year ending June 30, 2024. The information disclosed covers the following areas of the diocese.
- Diocesan Chancery Operation (DCO) – includes administrative functions, ministries and programs operated at the Catholic Chancery (at the Catholic Center), as well as our campus ministry locations.
- Diocesan Deposit and Loan Fund (DLF) – is a segregated trust that contains deposits of parishes and schools ‘in trust’ and offers loans to parishes and schools for new construction and major renovation. The Trust is overseen by a seven-member Board of Trustees.
- Diocesan Insurance Operation (DIO) – represents the Diocesan self-insurance fund for property and casualty insurance along with the lay and clergy benefit programs.
The disclosure of the financial information represents the commitment to transparency regarding the source of funds along with the use of those funds. Bishop Johnston, Diocesan Leadership, the Diocesan Finance Council and the staff of the Diocesan Finance Office wish for all to be aware of the overall financial condition of the diocese.
Diocesan Chancery Operation (DCO)
Catholic Diocese of Kansas City-St. Joseph
Chancery Operation Statements of Financial Position
Years Ended June 30, 2024 and 2023
| 2024 Total | 2023 Total | ||
ASSETS |
|||
| Cash & Cash Equivalents | $30,734,046 | $29,251,679 | |
| Loans & Accounts Receivable | $9,829,748 | $8,282,616 | |
| Pledges Receivable-Annual Catholic Appeal | $437,140 | $190,104 | |
| Land, Buildings & Equipment | $10,813,735 | $9,658,649 | |
| Beneficial Interest in Others | $703,255 | $632,768 | |
| Investments, At Market | $3,857,231 | $3,418,170 | |
| Total Assets | $56,375,155 | $51,433,986 | |
LIABILITIES |
|||
| Accounts Payable | $2,001,494 | $1,831,895 | |
| Other Short-Term Deposits | $2,175,853 | $1,835,773 | |
| Annuities Payable | $658,246 | $596,287 | |
| Long-Term Deposits Payable: | |||
| Diocesan Insurance Reserves | $16,780,521 | $13,323,052 | |
| Retired Priests Benefit Obligations | $7,141,224 | $7,182,639 | |
| Deferred Revenue | $12,336 | $41,359 | |
| Total Liabilities | $28,769,674 | $24,811,005 | |
NET ASSETS |
|||
| Without Donor Restrictions | |||
| Designated Funds | $4,067,028 | $4,272,266 | |
| Designated for Annuities | ($79,571) | ($19,623) | |
| Expended for Plant | $9,537,427 | $8,633,427 | |
| Undesignated Reserves | $4,662,074 | $4,832,663 | |
| Total Net Assets Without Donor Restrictions | $18,186,958 | $17,718,733 | |
| With Donor Restrictions: | |||
| Other | $665,258 | $665,258 | |
| Endowments | $8,753,265 | $8,238,990 | |
| Total Net Assets with Donor Restrictions | $9,418,523 | $8,904,248 | |
| Total Net Assets | $27,605,481 | $26,622,981 | |
| Total Liabilities & Net Assets | $56,375,155 | $51,433,986 |
The above information is from the 2023/2024 annual audit report prepared by the accounting firm RSM US. The audit resulted in a “clean opinion” which means that there were no qualifications and the financial statements “represent fairly, in all material respects, the financial position of the Catholic Diocese of Kansas City-St. Joseph Chancery Operation as of June 30, 2024 and June 30, 2023, and…are in accordance with the accounting principles generally accepted in the U.S.”. In addition, the audit firm indicated that there were not any internal control weaknesses identified within the scope of the audit. The Diocesan Finance Council reviewed and recommended approval of the audit at the meeting on November 25, 2024. This recommendation was subsequently approved and accepted by Bishop Johnston.
The below information is based on the DCO’s Statement of Financial Position presented above.
Total Net Assets Without Donor Restrictions increased by approximately $0.5 million to $18.2 million.
Operationally, the DCO ended the fiscal year with a surplus of $1.0 million. There are various aspects to this improvement.
Diocesan Deposit and Loan Fund (DLF)
Catholic Diocese of Kansas City-St. Joseph
Deposit and Loan Fund Statements of Financial Position
Years Ended June 30, 2024 and 2023
| 2024 Total | 2023 Total | ||
ASSETS |
|||
| Cash & Cash Equivalents | $5,807,928 | $2,403,133 | |
| Loans & Accounts Receivable | $12,807,583 | $11,051,612 | |
| Investments | $69,083,959 | $66,030,370 | |
| Total Assets | $87,699,470 | $79,485,115 | |
LIABILITIES & NET ASSETS |
|||
LIABILITIES |
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| Accounts Payable | $0 | $60 | |
| Parish Deposits | $45,695,851 | $42,706,765 | |
| School Deposits | $774,464 | $1,757,557 | |
| Other Short Term Deposits | $30,463,885 | $25,563,252 | |
| Long Term Deposits Payable: | |||
| Cemetery Perpetual Care Funds | $6,787,039 | $6,711,023 | |
| Total Liabilities | $83,721,239 | $76,738,597 | |
NET ASSETS |
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| Without Donor Restrictions | |||
| Designated Funds | $1,547,972 | $1,547,972 | |
| Undesignated Funds | $713,745 | ($452,129) | |
| Total Unrestricted Net Assets | $2,261,717 | $1,095,843 | |
| With Donor Restrictions | |||
| Endowments | $1,716,514 | $1,650,615 | |
| Total Restricted Net Assets | $1,716,514 | $1,650,615 | |
| Total Net Assets | $3,978,231 | $2,746,458 | |
| Total Liabilities & Net Assets | $87,699,470 | $79,485,055 |
The Board of Trustees of the Diocesan Deposit and Loan Fund approved the Fund’s audit on October 7, 2024. The audit of this Fund was performed by RSM US and received an unqualified opinion and represents the seventh full year of operation as a separate trust. The Statement of Financial Position demonstrates growth from the prior year in total assets of $8.2 million to $87.7 million. Of this amount, $74.9 million is held in cash and investments to address future withdrawals and loans. Total Net Assets increased in the 2023/2024 fiscal year from $2.7 million to $4.0 million. The amount of net deposits as of June 30, 2024, in conjunction with internal projections of deposits, withdrawals, loans and principal paybacks through the end of the calendar year, indicate adequate capacity to handle anticipated loans and withdrawals. While there remains impending construction and renovation projects, the Fund balances are predicted to be sufficient.
Diocesan Insurance Operation (DIO)
Catholic Diocese of Kansas City-St. Joseph
Diocesan Insurance Office Statements of Financial Position
Years Ended June 30, 2024 and 2023
| 2024 | 2023 | ||
ASSETS |
|||
| Current Assets: | |||
| Cash | $52,286 | $142,818 | |
| Prepaid Premiums | $325,867 | $303,000 | |
| Accounts Receivable | $40,078 | $60,929 | |
| Total current assets | $418,231 | $506,747 | |
| Investments: | |||
| Deposits with Catholic Diocese of Kansas City St. Joseph | $16,780,521 | $13,323,052 | |
| Investments, National Catholic Risk Retention Group Stock | $1,693 | $1,693 | |
| $16,782,214 | $13,324,745 | ||
| Total Assets | $17,200,445 | $13,831,492 | |
LIABILITIES |
|||
| Current Liabilities: | |||
| Auto premium reserve | $112,437 | $106,712 | |
| Claims & expenses payable – Property & Casualty |
$4,622,740 | $1,198,144 | |
| Claims & expenses payable – Self Funded Health Insurance |
$390,425 | $505,186 | |
| Total Current Liabilities | $5,125,602 | $1,810,042 | |
| Claims Incurred But Not Reported | $1,773,199 | $1,535,623 | |
| Total Long-term Liabilities | $1,773,199 | $1,535,623 | |
| Net Assets (Deficit) Without Donor Restrictions | $10,301,644 | $10,485,827 | |
| Total Liabilities & Net (Deficit) | $17,200,445 | $13,831,492 |
The Diocesan Insurance Operation is reviewed by RSM US each year. The scope of a review is substantially less in scope than an audit. A review includes applying analytical procedures to management’s financial data and making inquiries of management but does not result in an opinion regarding the financial statements as a whole. The Diocesan Finance Council reviewed this report at its meeting on November 25, 2024.
On January 1, 1975, the diocese established a self-insurance program for property and casualty insurance coverages. Under this program, the diocese self-insures the property and casualty coverages (except for boiler insurance and worker’s compensation insurance) for all Diocesan parishes, schools, early childhood centers, Catholic Cemeteries Association and Catholic Charities of Kansas City-St. Joseph. The self-insurance programs provide coverage for buildings, machinery and equipment, boiler, workers’ compensation, automobile, student accident, comprehensive general liability, fiduciary liability, professional liability, sexual misconduct liability and cyber liability. The program includes a limit on each claim payable by the diocese. Claims in excess of the self-insured retention are insured by licensed insurance carriers. Under the program, the diocese contracts for the administration of claims, appraisals, and loss control and prevention services. The Diocesan Insurance Office coordinates the placement of coverage and the payment of claims and premiums with insurance companies and service providers.
In addition to the property and casualty coverages, the Diocesan Benefits Office (as part of the Office of Human Resources) administers the clergy and lay employee benefit programs, which include pension, life insurance, short-term disability, health care insurance, voluntary dental care, voluntary supplemental life insurance, flexible spending accounts, health savings accounts, long-term care (clergy) and supplemental medical reimbursement (clergy). Please note that the actual pension plans for the Diocesan priests and the lay employees of the parishes, schools and other entities are contained in two separate trusts overseen by two different boards.
Premiums for the self-insurance property and casualty coverages are based on an exposure assessment for the specific line of coverage such as the appraised value of structures and contents for property coverage. Premiums are collected by the DIO and used to pay claims as they are incurred. Premiums for insured coverages are collected by the DIO from all the entities of the Catholic Diocese of Kansas City-St. Joseph, Catholic Cemeteries Associated of Kansas City-St. Joseph, and Catholic Charities of Kansas City-St. Joseph.
The DIO Statement of Financial Position presented in this article demonstrates that net assets is $10.3 million at the end of fiscal year 2023/2024. The DIO operations resulted in a loss for 2023/2024 of ($0.2M). This is the first year of a net loss in 10 years demonstrating primarily positive claims experience.
CLOSING
In summary, stewardship and accountability for the financial resources of the various areas of the Diocese of Kansas City-St. Joseph are functioning with integrity. The DCO continues to operate with a surplus while achieving goals toward the Mission. The DLF effectively addresses the savings and loan needs of parishes and schools while the DIO continues to implement short and long term strategies for cost-effective coverage and healthcare for lay employees and clergy. The Mutually Shared Vision of One Family, Restored in Christ, Equipment for Mission remains a priority to move our diocese forward.
Finally, Bishop Johnston is extremely grateful to all who have continued stewardship of time, talent and treasure. His gratitude extends beyond the giving to the DCO to your generosity to parishes, schools and Catholic Charities.
If you have questions or wish to discuss the information contained in this report, please contact me at (816) 714-2319 or email me at laville@diocesekcsj.org. The complete audits for the DCO and the DLF along with the review for the DIO can be found on the Diocesan Finance page.
We understand that you all have multiple organizations that request your resources and we appreciate your continued support. It is our hope that this report demonstrates that your support is valuable in many aspects for the Diocese of Kansas City-St. Joseph.
Angela Laville, Diocesan Finance Officer
