Opening Prayer - Gene Zirkel

Welcome - Pat Zirkel

Announcements:

Legislative Committee - Tom Dowling
• Advocacy in Albany is being organized by the Legislative Committee for January 25th to support legislation re mandatory reporting of sexual abuse of minors. Members are encouraged to participate in this important effort.

Conference Announcement -- Phil Megna
• Conference scheduled for Saturday, March 19, St. Joseph's Day (eve of Palm Sunday) at Huntington Hilton: Faith Convention II: The Future of our Church -- Evolving Roles of Laity & Priests
• Speakers - Thomas P. Doyle, OP - priest advocate for abused; John Allen, chief Vatican reporter for NCR; commentator for CNN & NPR
• Cost: $35 pp/ includes lunch & coffee
• Please mail in requests for tickets asap.
• We are requesting sponsors for the event. Event journal will acknowledge contributors

Vigils Committee - Lisa Braglia
• Lost Sheep vigils - collaboration between VOTF and SNAP to reach out to silent victims in parishes where there has been a history of abuse allegations. Vigils are needed at parishes throughout the diocese where there have been allegations of abuse. A handout found on chairs as people came in tonight summarizes the Lost Sheep Vigil efforts since Nov. We are encouraging more members to join this effort of reaching out and supporting victims. Members of the Vigils Committee will be available after the meeting to answer questions.
• Another way to support victims now: We are encouraging members to write their suggestions to Bishop Murphy on how the diocese can better care for abuse victims (in response to Sean Dolan's statement that they are always open to suggestions). Please write your thoughts/suggestions and place them in the "Suggestion Box" as you leave tonight. They will be presented to the chancery office this week. Some ideas on topics . . .
- Public disclosure of names of credibly accused priests
- Public disclosure of $$ paid toward counseling assistance
- Public disclosure of $$ paid out to victims of abuse
- Public disclosure of $$ paid to priests removed from ministry because of accusations
- Need for parish safety committees
- Listing of above disclosures on diocesan website
- Listing of alternative counseling sites (SNAP) for victims of abuse

Main Presentations:

1. Introduction of Financial presentations scheduled for this evening. - Dan Bartley

Good Evening. We have a very informative evening in store for everyone regarding Diocesan Finances. Before we dig into the details however, I would like to put the overall topic into context:

Dick Grafer performed a rather though analysis. The analysis raised some very legitimate questions. The main questions are:

1) Who establishes spending priorities for the diocese?

2) Do those spending priorities reflect the values and priorities of parishioners (Those that gave the diocese its money in the first place.)

The analysis indicates – they may not.

We came up with what we believe to be a very viable, practical and reasonable way to address this issue: The formation of a representative (elected) diocesan finance council.

This council would work alongside the existing appointed council.

The role of the appointed council would be to continue to do what it has done well-
Safeguard diocesan assets.
Monitor investment returns

The role if the representative council would be to say: “Ok we have all this money - hundreds of millions of dollars- What spending recommendations can we make that would reflect the values of parishioners?” Again those that gave the money in the first place.

For making this suggestion we are called, “Wrong and irresponsible.”

Finally – the diocese says we don’t need a representative council – Catholics can use existing structures- Translation- we want your money but not your opinion.

Just before I left from work to come here I received an email from a priest-

With regard to the establishment of a representative council he said:

“Actually, it's a very fine idea, especially in light of the fact that the current constitution of the diocesan finance council is composed simply of upper tier folks who don't represent the middle class or growing underclass on Long Island.”

Unfortunately, the email also said: “I frankly think it's unlikely that Bishop Murphy will have anything to do with a proposal that emanates from VOTF.”

So we have come to the point where our bishop would reject a very good idea simply because it comes from us. How sad.

We should push for this with our pastors and fellow parishioners. The time has come for the formation of a diocesan finance Council

Thank you.

2. Introduction of key speakers: Kevin Connors
Intro of Dick Grafer - 28 years accounting with Arthur Anderson; served as Green Beret in Vietnam. Last year he independently undertook an analysis of the financial information made available by the diocese.

3. Dick Grafer:
It is ironic that when so many dioceses are suffering financial difficulty - some bankruptcy – the Diocese of Rockville Centre has over four years of financial reserves.

First financial statements published in spring 2003 for fiscal year ended 8/02 . . . published in LIC piecemeal over several months. Dick - 'just for fun' - began to put them together and was shocked to find that initial tally came to $119 million. Wrote to bishop . . . received response and an additional detailed response from the comptroller. Didn't answer all of my questions but was helpful. DG sent a second letter with detailed questions and concerns; no response was received. (Contradicting their statement to Newsday that they answered all his questions & addressed all of his concerns).

A Parish Voice in Nassau County invited him to share the financial analysis; somehow it got picked up by the NY Times -- this got DRC's attention; long response was published in the LIC -- many inaccuracies, many omissions; insulting tone; personal attack on Dick G.

DG responded to the attack, but, needless to say, was never published or responded to.

In 1/04 next set of financial statements was published for FY '03. DG again went to work on an analysis - not fully completed until fall'04 -- revealed $180 million in available free cash reserves.

Results were sent by Don Auriemma to the DRC in November. Acknowledgement letter received stating that their concerns would be passed on to the comptroller and financial council.

Explanation of analysis process:

Does not include Catholic Health Services - separate 'stand alone'
Analysis is provided in handout:
Adjustments/Exclusions
Deposit and loan account liabilities
Restricted investments
Other restricted net assets.

What is the reserve being used for? Comparison to a family’s expenses . . . imagine having four years 'operating expenses'.

Diocese claims that funds are 'designated' for future use. In accounting terms this is a 'term of convenience'; most are very vague, non quantifiable.

Examples:
• Designated for 'parish assistance': Over past years average annual assistance to parish is $3m in the forms of loans to be repaid by parishes.
• Quasi endowment fund for future emergencies - interest income supports current operations.
• Protected self-insurance fund: $52.5m. Stop loss insurance covers claims over set amounts; so insurance liabilities are limited. Independent actuaries determine what is needed in reserve - $45.6m.
• Tax on parishes: inflated insurance charges.
• Catholic cemeteries - restricted (46.4m) and non-restricted ($44.6) to pay for future cost of maintaining mausoleums; maintaining cemeteries after they have filled up and stop generating income.
• Catholic Charities Support Corporation - $19.0m

Conclusions: Reserve of 3.8 years worth of operating expenses
Not-for-Profit standard is 6-12 months of cash reserves.
DRC has 4 to 8 times the 'best practices' norm.

Even considering the pending sexual abuse settlements, based on other settlements so far, significant reserves will remain excessive.

Five basic questions that Dick Grafer continues to have; feels that all supporters of the diocese should have . . .
• Is there a mechanism to balance current human/social needs and future contingent needs?
• Do specific guidelines exist to determine when reserves are excessive?
• Why doesn't the DRVC publish combined (consolidated) financials? Why are they removed from the diocesan website so quickly . . . before people can review them. What is it hiding?
• If reserves are 'adequate' as now admitted, why not use future increases for high priority human needs. Reserves are increasing by $10-20m/year . . . Why accumulate wealth?
• If $180 million is not enough, then how much is enough?

Questions from the audience:
Q. Why does the diocese persist in the Catholic Ministries Appeal, putting the burden on pastors and parishes? And poor parishes even have an increase (ex. Wyandanch increased 20% this year).
A. Either there would be cutbacks in services or they would need to dip into reserves. Obviously the diocese refuses to consider either.

Q. With abuse cases still pending, is reserve really excessive? We may have more than 180 victims; if settlement of $1million each was made, would reserve be accessed?
A Insurance coverage will kick in for excessive settlement amounts. Usually actual payouts are far less than published settlements. To date little has been disclosed and nothing approved.

Q. Some parishes also have accumulated wealth (one East End parish is known to have over $11million reserve funding); What would be the effect on the diocesan balances?
A. Diocesan 'parish investment fund' (which was excluded from the 'excess reserve' estimate.) DG suspects that rich and poor parishes would balance out.

Q. Re distribution of 2003 Bishop's Annual Appeal -- published an accounting - which left $5.5m as 'undesignated.' Two years of requests for an explanation have gone unanswered.
Comment: The Catholic Charities portion has remained constant over past ten years -- no increase in monies.

Kevin Connors -- introduction of Don Auriemma --
Last year Don founded CFOs (Church Financial Overseers) - tonight speaking on "Our $$ Make a Difference" -- the VOTF 'parish use only' program of restricted donations which he helped to found in his parish.

4. Don Auriemma—

Our primary goal is to effect structural change in the church. Clearly they do not listen to anything we suggest . . . but they do read our financial analysis . . . and they do listen when the money is in danger.

If you want structural change, you must participate in this program of restricting donations to 'parish use only' - this eliminates the diocesan 'tax' of 8+% on every parish donation. How does it work? Those who count the money at the parish level must record such donations as "restricted donations" which must be reported on the annual financial statements of the parish. This program is designed to help your parish and to hurt no one. As discussed, the donations are not needed on the diocesan level.

Many VOTF members feel that their pastor will not honor such requests. Don suggests -- 'don't blink' . . . demand that your money not be sent to the diocese. Your pastor has a choice to receive all - or none - of your donation. Our checkbooks are our only weapons against the immoral accumulation of wealth. Stress to the pastor that you refuse to contribute to it.

Q. In our parish all the donations go into the same pot. Those who count it will not sort or separate designated checks.
A. The parish's annual report to the diocese must show 'restricted donations and bequests.' Demand that the pastor make this report

Comment: We don't take any chance that it will get put into the Sunday collection. We mail in our donations every Wednesday so that it arrives separately from the Sunday collection.

Comment: From St. Joseph's, Kings Park - This member has persisted in pursuing the issue of having her donations restricted, and it took a long time, but finally she was successful in having the parish establish a separate budget line for their restricted donations.

5. Kevin Connors:

Thanks speakers/summarizes presentations.
What is it that we are trying to accomplish?
We want transparency and openness
We want accountability to the people of the diocese.

What are we asking the diocese to do:
-- Requesting the establishment of a representative diocesan finance council
-- Mechanism built around the faith community to bridge the gap between the excessive accumulated wealth of the diocese and the needs of our diocesan Catholics.

Suggestions:
Become members in Our $$ Make A Difference. Every VOTF member should encourage all your fellow parishioners to participate in this.

First weekend of every month is "Financial Accountability Weekend". We suggest that you put nothing except a card stating that you are participating in LI VOTF’s $$ Make a Difference Program in the collection that weekend. You can make up the $ amount on the following weekend. We do not want to hurt our parishes; we do want the challenge diocesan leadership to accountability.

Re Catholic Ministries Appeal -- Until the excessive levels of cash reserves are fully identified, we suggest that concerned Catholics find alternatives for their charitable giving.

Re parish CMA rebate: If our efforts will diminish the parish rebate, we are asking members and others redirecting their contributions away from the CMA, to give an extra restricted donation to the parish to compensate their loss.

Re members’ poll on financial concerns:
Overwhelming response from members supported our financial efforts

Questions/Comments:
Q. We know the diocese and the bishop has noticed; so I think you're doing a good job.
A. It is all the people in this room and all our members and their fellow parishioners who need to do the job. We will only be effective as we increase our numbers and make a significant financial impact.

Q. (Fr. Damian Halligan, SJ, St. Ignatius Retreat House) - regret that there isn't a member of the diocesan finance council here tonight to respond. Goes on to speak of the Virtus sex abuse programs.
A. Diocesan rep was invited over a month ago. Response (regrets) received yesterday. Also, we affirm the efforts to prevent future abuse; however, the level of secrecy that persists makes it impossible for us to know whether the efforts are effective.

Q. Are 'special collections' taxed by the diocese?
A We've heard two versions: First, that there is a significant diocesan "handling fee" taken out; alternatively, another person has told us that the entire amount does indeed go to the cause for which it is collected. We don't know.

Dan B: Emphasizes the use of the collection basket card.
Q. Why use the card. Many people who will not support VOTF may think this is a good idea.
A. Anyone can make up their own cards. But we have to work to overcome VOTF's sometimes-negative image and get more people to join.

Committee Reports:
Ann Kerrigan for Liaison Committee: A date has been set for a meeting with the Bishop’s Liaison Team for January 19th. Topics: Bishop's resignation; and the meaning of ‘structural change.’

Joan Bedosky for Membership: Introduction of a VOTF representative council of PVs with direct link to the board. Will improve communication between membership, council, and board and improve members' participation. Working with Coordinators reinforces VOTF's conviction that We Are the Church. We need and deserve a 'seat at the table.'
The council will give us a way of demonstrating a new way of being Church; to demonstrate the kind of structural change we see as needed to renew the Church.
Another goal of Province Coordinators is to keep the three established goals of VOTF in play; to constantly keep them in play as three strands of a braid. Remember that the leadership of VOTF must be responsive, open, transparent, and accountable to our membership.

Tom Lloyd - Membership: We need to increase membership one person at a time.

Pat Zirkel - spiritual reflection on the role of the Spirit in our work:

I received a letter from a priest in the Brooklyn Diocese who does a lot of work with the poor. Referring to the Christmas season he says:

“I have been reflecting on this great feast and I have come to realize what the Scriptures are saying is most awesome and powerful. The Infancy Narratives in Luke and Matthew’s Gospels both say that the Holy Spirit came upon Mary. The Gospels say it is by the Holy Spirit that God is enfleshed in Jesus of Nazareth. God’s Spirit, as we have seen it even in the Book of Genesis as the breath of God hovering over the waters, is the Spirit that is making nothing into something. The work of the Spirit of God is not to make things spiritual or invisible, but rather to make the invisible, visible. The work of the Spirit of God is to put things into motion...”

The work of the Spirit is to make the invisible, visible; to bring to reality that which is not yet; to make real what should be and to make the imperfect more fitting in God’s sight.

This is also our work as Voice of the Faithful: to bring the at present poorly visible beauty of the Church to better light; to bring to reality a reformed Bride of Christ; to make real the Church that God intended, and to present ourselves to God as his own authentic work.

Thank you.

Announcement: Please don't forget the collection envelopes on your way out.

Closing Prayer: Ed Thompson