Dear brothers and sisters in Christ,

The following two pages of this edition of The Central Minnesota Catholic feature the annual report for the diocese’s offices and ministries for the fiscal year running from July 1, 2020, to June 30, 2021. I believe it’s very important to publish a report each year to be transparent and accountable to you regarding our finances. The ministries and services the diocesan offices provide are possible only because of your generosity and commitment to the Church. Each year, our finance office works closely with the diocesan offices to create fiscally responsible ministry budgets. We are very grateful for your support, and we strive to be good stewards of the gifts we receive.

I want to explain a few items in this year’s report. As you know, the Minnesota Bankruptcy Court approved a plan for reorganization last December for the diocese to compensate survivors of past clergy sexual abuse. The payment to the survivors’ trust and court fees are listed under “Other Expenses” in the report. The funds for the trust came from insurance proceeds, the sale of property owned by the diocese, and a line of credit secured by the diocese. Parishes also contributed to the trust. Because of the respectful approach to negotiations by all the parties involved, we limited the length of the bankruptcy process and reduced our administrative expenses. This abuse should never have happened, and I continue to pray for all survivors/victims. I also remain committed to fostering safe environments for young people.

Second, the report shows an increase in earnings from investments for seminarian education and vocation office-related expenses from the previous fiscal year. These are designated funds that can be used solely for these purposes; they were not used for any expenses related to the bankruptcy reorganization settlement. The increase was due
to an improved economy and market performance. Likewise, gifts to the Bishop’s Annual Appeal — which funds diocesan ministries — are also designated funds that can be used only for that purpose and nothing else.

Third, you will notice that program fees for diocesan ministries were substantially lower than what was budgeted. This was due to the coronavirus pandemic, which necessitated the cancellation of many in-person events and programs while shifting some to online “virtual” events. I’m proud of the work our offices did to adapt their ministries to the realities of 2020-2021. Our staff learned new skills and used new tools for ministry that will supplement the work they do and make it even better moving forward. Let us continue to pray for those still struggling because of the pandemic and do all we
can to keep ourselves and others healthy and safe.

Thank you again for your generous support of the Church. If you have any questions regarding this report, please contact diocesan finance officer Joe Spaniol at jspaniol@gw.stcdio.org or 320-251-2340. You can also contact me at the same telephone number or by email at dkettler@gw.stcdio.org.

May God bless you and your loved ones.

Sincerely yours in Christ,

+ Donald J. Kettler

Bishop of Saint Cloud
Notes to the financial activities of

The Diocese of St. Cloud

for the year ended June 30, 2019

…………………………………………………………………………………………………………………

ORGANIZATION
This is the annual financial report for the St. Cloud Diocese Corporation. The St. Cloud Diocese Corporation is a civil corporation formed in 1900. It was organized pursuant to and operates in compliance with Minnesota State Law. The St. Cloud Diocese Corporation holds and manages temporal assets, including real property, personal property and investments, for the purpose of assisting the bishop in his ecclesiastical obligation to provide for the spiritual care of the community of the faithful living in the Diocese of Saint Cloud. The ecclesiastical Diocese of Saint Cloud was established by the Roman Catholic Church in 1889 and currently includes the 124,000 Catholics living in 16 counties comprising the diocese. These counties are Stearns, Sherburne, Benton, Morrison, Mille Lacs, Kanabec, Isanti, Pope, Stevens, Traverse, Grant, Douglas,

…………………………………………………………………………………………………………………

BASIS OF PRESENTATION
The financial statements include all administrative and program offices and departments of the St. Cloud Diocese Curia. The financial statements do not include the assets, liabilities and operations of the parishes or schools, which are separate and independent corporations, nor do they include any other separately incorporated operations such as Assumption and Calvary cemeteries, Catholic Charities, The Catholic Foundation, Society for the Propagation of The Faith (Mission Office), Deposit & Loan or Gabriel Media, each of which, as a separate and independent corporation, issues its own financial report.

…………………………………………………………………………………………………………………

DIOCESAN FINANCE OFFICER REPORT
The following comments elaborate on the major categories of revenues and expenses for the Diocese
of St. Cloud.
ON THE MATTER OF THE BANKRUPTCY
The diocese filed a voluntary petition for relief under Chapter 11 of the bankruptcy code on June 15, 2020. The Bankruptcy Court approved the plan on Dec. 4, 2020. This plan provided for $22.5 million to the trust to compensate survivors of past clergy sexual abuse. The funds were made up of insurance coverage settlements ($14 million); property sales, including the sale of the St. Cloud Children’s Home ($5.25 million); contributions
from parishes and a line of credit ($3.25 million). The plan was funded on Dec. 18, 2020. The plan also includes non-monetary protocols for the protection of children.
By Joseph Spaniol, finance officer

…………………………………………………………………………………………………………………