Commitment to Transparency
 
One of the things we bishops hear most often from faithful Catholics is a request for transparency, a desire to know how the Church is meeting its various obligations, and how it responds to problems that might arise. It really took hold, I think, during the sex abuse crisis a decade ago. People asked naturally, properly that we tell them how we were going to deal with priests who had been accused of abuse, what procedures we were going to follow in the future, and how we were going to make certain that we were living up to our promises. The Charter for the Protection of Children and Young People, developed by the bishops in Dallas in 2002 and subsequently approved by the Holy See so that it became part of Church law for this country, spelled out the standards that we bishops were setting for ourselves in responding to allegations of sexual abuse. The annual audits which are conducted by an independent agency and examine how each diocese has handled any claims or cases of the sexual abuse of minors over the past year make certain that we are, in fact, doing what we said we would do. Yes, we're constantly trying to do even better, but all agree we've come a long way
 
Now there is another area in which we hear increasing calls for transparency: Church finances. Part of it grows out of the deep concern people feel whenever they hear reports of theft or misuse of Church funds. Sadly, we have had some cases here in the Archdiocese of New York. Just this past fall, for instance, a former archdiocesan employee was sentenced to prison after having pleaded guilty to stealing more than $ 1 million from our education department. There have also been cases of priests taking parish funds and using them for their personal expenses, including the paying off of debts brought on by an addiction to gambling. While it seems like there has been an increase in such misbehavior, I'm not sure that is the case; part of the apparent rise in the number of incidents stems from the fact that we now go public with such cases, rather than simply trying to deal with them internally. We have learned the hard way, perhaps that people want and deserve to know the truth about such matters. And, ultimately, while being transparent in these matters might mean a temporary black eye for the Church, it is certainly better than having these cases come to light through whispers and rumors, accompanied by charges of "cover-up." When there's bad news in the Church, you tell us pastors you'd rather hear it from us
 
As part of our commitment to financial transparency, the Archdiocese of New York has, in recent years, published in Catholic New York an annual report on our services along with acondensed balance sheet and statement of activities, audited and reviewed by KPMG, so that people could see our assets and expenses for the previous year. I am grateful to my two closest collaborators on financial matters, the Chancellor, Monsignor Greg Mustaciuolo, and the Chief Financial Officer, Mr. William Whiston, for their hard work and dedication they're the finance experts, not me and, in particular, for their efforts in producing the annual report. A tremendous debt is also owed to the members of our Finance Council wisely appointed by my predecessor, Cardinal Edward Egan, and enthusiastically reappointed by me for reviewing and approving the report on services and condensed balance sheet and statement of activities, and their ever-vigilant oversight of our financial affairs, as well as their always sage advice
 
At the urging of our Finance Council, we recently had an outside firm review our financial operations basically, how we handle the money, how we keep track of it, what safeguards are in place to make sure that the finances are secure. This special audit, which was in addition to the usual annual audits that result in thecondensed balance sheet and statement of activities, gave us consistently high marks for our operations and procedures; it did make a few suggestions about how we could do things better, and we have taken steps to implement this advice. For example, the firm suggested incorporating enhanced monitoring reports for significant general ledger processes, and expanded communications emphasizing the need for increased awareness for responsibly managing the fiscal resources entrusted to the archdiocese. This is now being done. I believe that it is good practice to periodically have someone, independent of the archdiocese, review our operations to make sure we are utilizing all the best practices, so that we don't allow ourselves to become complacent about our operations
 
Because we are in the midst of two crucially important strategic planning initiatives for the archdiocese Pathways to Excellence, for our schools, and Making All Things New, for our parishes I thought it would be a good idea to go a little deeper into our current financial situation, to help explain, or at least put into some context, why these two strategic plans are so vital to our continued stability and, please God, our ability to grow and adapt as we meet the needs of the Catholic faithful in the 21st century
 
Let me begin by laying out a few important points. The first is that the Archdiocese of New York is not rich. I know that there is a mindset among some pastors, parishioners, and the public, that if any parish, school, or other institution is running a deficit, all they need do is turn to the chancery office, and the money will be on the way. Unfortunately, that kind of mentality simply is not possible anymore. The expectation for every parish and school is that they will operate on a balanced budget, although we know in reality that this is not always possible. And, the archdiocese is not some "Daddy Warbucks" with an endless supply of money
 
The second point is that, while the archdiocese is not rich, it does have a sustained record of supporting our parishes and schools that cannot pay their bills. Thanks to the genius of my predecessors, notably Cardinal Francis Spellman and Cardinal Terence Cooke, the archdiocese has found a way to assist needy parishes, primarily through what has been called Inter-Parish Financing (IPF), which permits financially stronger parishes to support parishes in need. Cardinal John O'Connor and Cardinal Edward Egan each adapted and strengthened IPF, and am I ever glad they did, because it allows many parishes and schools to survive which otherwise would have had to close their doors decades ago. So, I am deeply grateful to my predecessors for their vision and diligence in their support of our institutions
 
While I know that this work of the IPF must and will continue, I also know that we have reached a breaking point, and that some fundamental changes must be made in order for the system to survive and thrive. Right now, $46 million a year goes out to struggling parishes through IPF and other sources! That's way too much. Other needs suffer. And, the archdiocese is in debt. We give so much to help parishes and schools in debt that now the archdiocese is in the red!