Financial Report

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Central Administrative Officesof the Diocese of Buffalo

Financial Report 2015

Jan. 29 - Feb. 4 2012

Central Administrative Officesof the Diocese of Buffalo

Financial Report 2015DIOCESE OF BUFFALO

795 MAIN STREET

BUFFALO, NY 14203-1250

Phone: 716-847-5500

Fax: 716-847-5557OFFICE OF THE BISHOP

A message fromBishop Richard J. Malone

Bishop Richard J. Malone

My Dear Brothers and Sisters in Christ,

As has been our custom for a number of years, I am pleased to present the financial report for our latest fiscal year ended August 31, 2015. A number of long-term initiatives have been supported by parish and diocesan leadership in the past year. These projects, which demonstrate the long-term planning for stabilization and support of the Church’s ministry in Western New York, include the Upon This Rock Appeal, and Lay and Priest Retirement Plan remediation programs. Our Executive Director of Financial Administration, Mr. Steven D. Timmel, has provided his commentary on the following page.

I thank all those responsible for making this fiscal year a successful one. I especially thank our diocesan employees who so capably serve the people of the Diocese of Buffalo and the eight counties of Western New York. I also thank members of the clergy, religious, and laity who assist us as members of various financial committees.

I pray that in this Jubilee Year of Mercy that the Church in Western New York will grow in strength and vitality so that all Christian faithful may continue to spread the Word of God. May God continue to bless our diocese and all those who serve it and are served by it.

Yours sincerely in Christ,

Most Reverend Richard J. Malone, Th.D. Bishop of Buffalo

Diocesan Finance Officer gives highlights of 2015 annual Financial Report

The Diocesan Finance Office is pleased to present, in the Western New York Catholic, the audited financial statements for the Central Administrative Offices (CAO) for the Diocese of Buffalo for the year ended August 31, 2015. This publication continues our tradition of reporting the annual Diocesan financial results since 1974. The audited financial statements include activities and programs that are funded from the CAO. They do not include activities of parishes, Catholic Charities, schools, cemeteries or other institutions. The financial statements are presented in accordance with accounting principles generally accepted in the United States of America. The financial statements were audited by the accounting firm, Bonadio & Co., LLP, and the results were presented to the Diocesan Audit Committee, Diocesan Finance Council and Bishop Richard J. Malone in December 2015.

Diocesan financial results for the fiscal year ended August 31, 2015 have been adversely affected by investment activities. The investment return for the year ended August 31, 2015 was (4.8%) compared to the composite benchmark (3.9%) return. The five year annualized return for the year ended August 31, 2015 was 6.8% compared to the 6.7% composite benchmark return. Diocesan long-term funds are invested in the St. Joseph Investment Fund, which is managed by seventeen professional investment firms and is well diversified among investment styles with an asset allocation approximating 45% equities, 38% fixed income and 17% alternatives. Net assets decreased ($5,063,729), due primarily to unrealized investment losses of ($4,685,299).

The deficiency of revenues before other changes in net assets of ($830,727) is primarily attributed to a one-time education assessment credit approximating $800,000 for ten parishes with school closures in June 2014 to assist the parishes with certain school closure costs. The increased school subsidy expense of $871,241 would have been offset by increased school assessment revenue without this credit. Please refer to the following pages for revenue and expense details of the Funding Plan. Since inception in the 2007-2008 fiscal year, the Catholic Elementary School Funding Plan has provided $40 million to our elementary schools. Approximately 3,200 elementary school pupils were supported in the 2014-15 school year.

Expenditure highlights, which aggregate $11,246,324, are in the following areas:

Elementary school funding $5,187,736 Education support for high schools 1,038,701 Priest formation and seminary support 1,450,552 Support for priest retirement residences 2,089,644 Youth, Family & Pro-Life Services 583,650

Campus ministry 475,401Daybreak TV Productions 420,640

Assisted by our Finance Council, pension Trustees and Investment Committee, the long-term obligations of the Lay and Priest defined benefit retirement programs have been evaluated. The Lay Pension Plan was frozen as of January 1, 2016. A new defined contribution plan has been established as of January 1, 2016 for over 5,000 lay employees in parishes, schools, Baker Victory Services, Catholic Charities and Our Lady of Victory Institutions. Expanded disclosure in footnote #14 provides more information. Through a combination of increased employer funding and certain benefit reductions, the remediation plan is designed to meet the benefits promised to diocesan priests and lay employees, and provide competitive future employee retirement benefits.

The Diocese initiated the Upon This Rock Capital and Endowment Appeal in 2015. The Appeal is managed by the Board of Directors of the Foundation of the Roman Catholic Diocese of Buffalo, N. Y., Inc. The multi-year goal is $100 million to provide a base for long-term development of parish and diocesan wide ministries. Forty percent of the Appeal is dedicated to parish based ministries, with the majority of the balance allocated to evangelization and catechesis, education tuition assistance, Catholic Charities, Christ the King Seminary, healthcare for retired diocesan priests and campus ministry.

The Diocesan Finance Office is available to answer any questions that may arise as a result of a review of the 2014-2015 audited financial statements. Please feel free to call the Diocesan Finance Office at 716-847-5500 or visit the office at 795 Main Street in Buffalo during normal office hours.

Yours truly,

Steven D. Timmel Executive Director of Financial Administration

Financial ReportDiocese Of Buffalo

Catholic Elementary School Funding Plan

09/01/14 - 08/31/15

ALLEGANY 67,988 67,988 Immaculate Conception School of Allegany County 123 1,932 Wellsville (237,600) (237,600) TOTAL ALLEGANY 67,988 (237,600) - (169,612) SOUTHERN CATTARAUGUS 195,427 195,427 Southern Tier Catholic School 120 1,993 Olean (239,200) (239,200) TOTAL SOUTHERN CATTARAUGUS 195,427 (239,200) - ( 43,773) CHAUTAUQUA 376,193 376,193 Northern Chautauqua Catholic School 125 1,872 Dunkirk (234,000) (234,000) TOTAL CHAUTAUQUA 376,193 (234,000) - 142,193 GENESEE - WYOMING 227,328 227,328 St. Joseph School Batavia (122,369) (122,369) TOTAL GENESEE - WYOMING 227,328 - (122,369) 104,959 WESTERN NIAGARA 489,865 489,865 Catholic Academy of Niagara Falls (K - 6) 100 1,660 Niagara Falls (150,800) (15,159) (165,959) Niagara Catholic High School (7 - 8) 74 1,744 Niagara Falls (129,050) (129,050) St. Peter School Lewiston (44,550) (44,550) TOTAL WESTERN NIAGARA 489,865 (279,850) (59,709) 150,306 EASTERN NIAGARA - ORLEANS 287,124 287,124 DeSales Catholic School 328 1,538 Lockport (504,600) (504,600) TOTAL EASTERN NIAGARA - ORLEANS 287,124 (504,600) - (217,476) TRI-COUNTY 100,884 100,884 St. Aloysius Regional School 87 2,115 Springville (184,000) (184,000) TOTAL TRI-COUNTY 100,884 (184,000) - (83,116) NORTHWEST - CENTRAL BUFFALO 348,656 348,656 Catholic Academy of West Buffalo 195 1,852 Buffalo (361,150) (361,150) Our Lady of Black Rock School 157 2,099 Buffalo (329,550) (329,550) St. Joseph School - University Heights Buffalo (24,300) (24,300) St. Mark School Buffalo (52,312) (52,312) TOTAL NORTHWEST - CENTRAL BUFFALO 348,656 (690,700) (76,612) (418,656) SOUTHEAST BUFFALO 352,369 352,369 South Buffalo Catholic School 442 1,476 Buffalo (636,550) (15,708) (652,258) 352,369 (636,550) (15,708) (299,889) NORTHERN ERIE 674,126 674,126 Christ the King Snyder (4,050) (4,050) Nativity of the Blessed Virgin Mary School Williamsville (32,400) (32,400) SS.Peter & Paul School Williamsville (32,646) (32,646) St. Amelia School Tonawanda (201,487) (201,487) St. Andrew’s Country Day School Kenmore (39,825) (39,825) St. Benedict School Amherst (16,200) (16,200) St. Christopher School Tonawanda (47,925) (47,925) St. Gregory the Great School Williamsville (17,212) (17,212) St. John the Baptist School Kenmore (76,612) (76,612) St. Mary School Swormville (35,100) (35,100) St. Stephen School Grand Island (16,200) (16,200) TOTAL NORTHERN ERIE 674,126 - (519,657) 154,469

/--Receipts---/ /------Disbursements------/ * * ELEMENTARY REGIONAL CTGP K - 8 K - 8 SUBSIDY EDUCATION SCHOOL AND OTHER VICARIATE ENROLLMENT PER STUDENT LOCATION ASSESSMENT SUBSIDY SUBSIDIES TOTAL

Financial Report

Catholic Elementary School Funding Plan (continued)

The Finance Council of the Diocese of Buffalo

includes: Chairman: Rev. Msgr. David S. Slubecky,

STL, JCL, VG; Members: Most Rev. Edward M.

Grosz, DD, VG; Rev. Msgr. Paul A. Litwin, JCL,

Chancellor; Rev. Msgr. Angelo M. Caligiuri; Rev.

Msgr. Frederick D. Leising; Rev. Mark J. Wolski;

Rev. Msgr. Robert E. Zapfel, STD, MBA; James

J. Beardi; George J. Eberl; Joseph F. Kapsiak; Jay

McWatters, CPA; David Rogers.

Diocesan Finance Council

EASTERN ERIE 979,700 979,700 Mary Queen of Angels School 156 1,562 Cheektowaga (243,600) (243,600) Immaculate Conception School East Aurora (96,862) (96,862) Our Lady of the Blessed Sacrament School Depew (62,100) (62,100) Queen of Heaven School West Seneca (315,562) (315,562) St. John the Baptist School Alden (34,763) (34,763) St. John Vianney School Orchard Park (101,820) (101,820) St. Mary’s Elementary School Lancaster (146,138) (146,138) TOTAL EASTERN ERIE 979,700 (243,600) (757,245) (21,145) SOUTHERN ERIE 370,888 370,888 Nativity of Our Lord School Orchard Park (43,200) (43,200) Our Lady of Victory School Lackawanna (46,238) (46,238) Southtowns Catholic School Lakeview (48,263) (48,263) SS. Peter & Paul School Hamburg (92,475) (92,475) TOTAL SOUTHERN ERIE 370,888 - (230,176) 140,712 TOTAL BY VICARIATE 4,470,548 (3,250,100) (1,781,476) (561,028) Advertising (100,814) Children First Scholarship Donation (62,500) Miscellaneous 7,154 CURRENT YEAR SURPLUS / (DEFICIT) (717,188) PRIOR YEAR SURPLUS 1,156,480 DESIGNATED FOR ELEMENTARY EDUCATION 439,292 * Regional Schools only

/---Receipts---/ /------Disbursements------/ * * ELEMENTARY REGIONAL CTGP K - 8 K - 8 SUBSIDY EDUCATION SCHOOL AND OTHER VICARIATE ENROLLMENT PER STUDENT LOCATION ASSESSMENT SUBSIDY SUBSIDIES TOTAL

2014-2015 CATHOLIC ELEMENTARY SCHOOL FUNDING PLAN BY VICARIATE

Financial Report

Bonadio & Co., LLPCertified Public Accountants

100 Corporate ParkwaySuite 200

Amherst, New York 14226p (716) 250-6600f (716) 250-6605

www.bonadio.com

INDEPENDENT AUDITOR’S REPORT

December 1, 2015

To the Audit Committee of the Central Administrative Offices of the Diocese of Buffalo:

Report on the Financial StatementsWe have audited the accompanying financial statements of the Central Administrative Offices of the Diocese of Buffalo (Central Administrative Offices) which comprise the statements of financial position as of August 31, 2015 and 2014, and the related statements of activity and changes in net assets and cash flows for the years then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of an entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Central Administrative Offices of the Diocese of Buffalo as of August 31, 2015 and 2014, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Report on Supplemental InformationOur audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The supplemental schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

Financial Report

2015 ASSETS

CASH AND CASH EQUIVALENTS $ 2,809,306 $ 3,855,936

ACCOUNTS RECEIVABLE – Net 1,568,055 1,317,326

PLEDGES RECEIVABLE – Net 814,476 851,000

INVESTMENTS: Split-interest agreements 834,786 908,414 Designated for potential uninsured losses 9,210,427 9,690,494 Designated for seminarian assistance 3,908,593 4,112,322 Undesignated investments 29,995,378 33,192,562

Total 43,949,184 47,903,792

PROPERTY, BUILDINGS, AND EQUIPMENT – Net 11,488,641 11,659,861

OTHER ASSETS 481,181 605,662

TOTAL $ 61,110,843 $ 66,193,577

2014

LIABILITIES AND NET ASSETS

ACCOUNTS PAYABLE AND ACCRUED EXPENSES $ 4,989,129 $ 4,441,126

NOTES PAYABLE - 401,239

PROVISION FOR PARISH RESTRUCTURING COSTS 1,800,000 1,800,000

PROVISION FOR POTENTIAL UNINSURED LOSSES 11,350,000 11,550,000

ASSET RETIREMENT OBLIGATION 987,056 940,053

LIABILITY FOR SPLIT-INTEREST AGREEMENTS 271,947 284,719

Total liabilities 19,398,132 19,417,137

NET ASSETS: Unrestricted: Undesignated 40,026,782 44,204,492 Designated for elementary education 439,292 1,156,480

Total 40,466,074 45,360,972

Temporarily restricted 1,246,637 1,415,468

Total net assets 41,712,711 46,776,440

TOTAL $ 61,110,843 $ 66,193,577

See notes to financial statements.

STATEMENTS OF FINANCIAL POSITION AS OF AUGUST 31, 2015 AND 2014

CENTRAL ADMINISTRATIVE OFFICES OF THE DIOCESE OF BUFFALO

Financial Report

2015 2014

REVENUES: Bishop’s Fund for the Faith $ 3,126,009 $ 744,000 $ 3,870,009 $ 3,007,536 $ 851,000 $ 3,858,536 Contributions and bequests 170,368 39,753 210,121 42,585 12,800 55,385 Diocesan assessments 6,124,778 - 6,124,778 5,992,538 - 5,992,538 Elementary education assessment 4,470,547 - 4,470,547 4,455,288 - 4,455,288 Priest retirement assessment 2,408,000 - 2,408,000 2,296,692 - 2,296,692 Realized investment gains 1,940,075 - 1,940,075 2,476,559 - 2,476,559 Net assets released from restrictions 890,753 (890,753) - 715,800 (715,800) - Total 19,130,530 (107,000) 19,023,530 18,986,998 148,000 19,134,998

EXPENSES: Pastoral 2,487,609 - 2,487,609 2,435,677 - 2,435,677 Religious personnel development 4,329,662 - 4,329,662 3,820,127 - 3,820,127 High schools support 1,038,701 - 1,038,701 975,581 - 975,581 Other educational apostolates 1,721,919 - 1,721,919 1,603,568 - 1,603,568 Elementary school funding plan 5,187,736 - 5,187,736 4,316,495 - 4,316,495 Family and youth services 583,650 - 583,650 525,143 - 525,143 Central support ministry 4,504,980 - 4,504,980 4,257,836 - 4,257,836 Total 19,854,257 - 19,854,257 17,934,427 - 17,934,427

(DEFICIENCY) EXCESS OF REVENUES (UNDER) OVER EXPENSES BEFORE OTHER CHANGES IN NET ASSETS (723,727) (107,000) (830,727) 1,052,571 148,000 1,200,571

INSURANCE ACTIVITY – Net (26,707) - (26,707) (309,562) - (309,562)INCOME FROM OTHER ACTIVITIES – Net 174,883 - 174,883 280,859 - 280,859SPLIT-INTEREST AGREEMENT ACTIVITY – Net - (61,831) (61,831) - (39,786) (39,786)CATHOLIC PARTNERSHIP HEALTH PLAN 365,952 - 365,952 335,104 - 335,104UNREALIZED (LOSS) GAIN ON INVESTMENTS (4,685,299) - 4,685,299) 2,224,241 - 2,224,241

CHANGE IN NET ASSETS (4,894,898) (168,831) (5,063,729) 3,583,213 108,214 3,691,427NET ASSETS – Beginning of year 45,360,972 1,415,468 46,776,440 41,777,759 1,307,254 43,085,013NET ASSETS – End of year $ 40,466,074 $ 1,246,637 $ 41,712,711 $ 45,360,972 $ 1,415,468 $ 46,776,440

See notes to financial statements.

STATEMENTS OF ACTIVITY AND CHANGES IN NET ASSETSFOR THE YEARS ENDED AUGUST 31, 2015 AND 2014

Temporarily Temporarily Unrestricted Restricted Total Unrestricted Restricted Total

CENTRAL ADMINISTRATIVE OFFICES OF THE DIOCESE OF BUFFALO

Financial Report

2015 2014

CASH FLOW FROM OPERATING ACTIVITIES: Change in net assets $ (5,063,729) $ 3,691,427

Adjustments to reconcile change in net assets to net cash (used in) provided by operating activities: Asset retirement obligation – accretion 47,003 44,764 Unrealized depreciation (appreciation) on fair value of investments 4,685,299 (2,224,241) Realized investment gains (1,940,075) (2,476,559) Increase in provision for parish restructuring costs - 100,000 (Decrease) increase in provision for potential uninsured losses (200,000) 1,200,000 Depreciation and amortization 885,093 856,693 Increase (decrease) in provision for uncollectible accounts 45,762 (48,061) Loss (gain) on sales of property, buildings, and equipment 100 (9,994) Changes in assets and liabilities: Increase in accounts and pledges receivable (259,967) (31,868) Decrease (increase) in other assets 124,481 (81,651) Increase (decrease) in accounts payable and accrued expenses 548,003 (1,864,975) Decrease in split-interest agreement liability (12,772) (535,679)

Total adjustments 3,922,927 (5,071,571)

Net cash used in operating activities (1,140,802) (1,380,144)

CASH FLOW FROM INVESTING ACTIVITIES: Proceeds from sales of property, buildings, and equipment - 9,994 Purchase of property, buildings and equipment (713,973) (860,316) Proceeds from sale of investments 1,209,384 1,293,860

Net cash provided by investing activities 495,411 443,538

CASH FLOW FROM FINANCING ACTIVITIES: Proceeds from lines of credit 2,000,000 1,200,000 Repayment of long term financing (401,239) (576,329) Repayment of lines of credit (2,000,000) (1,300,000)

Net cash (used in) financing activities (401,239) (676,329)

NET DECREASE IN CASH AND CASH EQUIVALENTS (1,046,630) (1,612,935)

CASH AND CASH EQUIVALENTS – Beginning of year 3,855,936 5,468,871

CASH AND CASH EQUIVALENTS – End of year $ 2,809,306 $ 3,855,936

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Interest paid during the year $ 33,569 $ 51,869 Fixed asset additions in accounts payable at end of year $ - $ 106,217

See notes to financial statements.

STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED AUGUST 31, 2015 AND 2014

CENTRAL ADMINISTRATIVE OFFICES OF THE DIOCESE OF BUFFALO

Financial Report

NOTES TO FINANCIAL STATEMENTSAS OF AND FOR THE YEARS ENDED AUGUST 31, 2015 and 2014

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations and Basis of Presentation – The Diocese of Buffalo, N.Y. (the “Diocese”) was established in 1847 to serve the Catholic community in Western New York. The Diocese includes the Central Administrative Office (“CAO”) unit which consists of the Bishop’s office and supporting staff, who minister to parishes and other institutions in the eight counties of Western New York State. The CAO does not include the assets, liabilities, or activities of individual parishes, various agencies such as secondary and elementary schools, cemeteries or social services agencies.

The Diocese initiated the Upon This Rock Capital and Endowment Appeal in 2015. The multi-year goal is $100 million to provide a base for long-term development of parish and diocesan-wide ministries. The Appeal is managed by the Board of Directors of the Foundation of the Roman Catholic Diocese of Buffalo, N.Y., Inc. The activities of the Appeal are reported in the financial statements of the Foundation.

Cash and Cash Equivalents – The CAO considers all highly liquid debt instruments with a maturity of three months or less when acquired to be cash equivalents. Cash is held in bank demand de-posit accounts which may, at times, exceed federally insured limits. The CAO believes it is not exposed to any significant credit risk with respect to cash and cash equivalents and has not experienced any losses in such accounts.

Designated Investments and Designated Net Assets – Investments designated for potential uninsured losses and seminarian assistance are adjusted for interest and dividend income and realized and unrealized investment gains or losses on those funds. Investment income activity is reported in the statements of activity and changes in net assets. Designated net assets for elementary education are the excess of assessments and parish contributions over elementary school support.

Property, Buildings, and Equipment – Acquisitions with an initial cost of $1,000 or more are capitalized at cost when purchased or at fair value at the date of gift when donated. Certain real estate for which no values are available has been recorded at nominal amounts. Depreciation is calculated on the straight-line method based on estimated useful lives of 30 years for buildings, 10 years for build-ing improvements and furniture and fixtures, and 4 years for equipment.

The CAO regularly assesses all of its long-lived assets for impairment and recognizes a loss when the carrying value of an asset exceeds its fair value. The CAO determined that no impairment loss needs to be recognized for applicable assets for the years ended August 31, 2015 and 2014.

Investments – Investments are measured at fair value in the statements of financial position. Investment income or loss (including realized and unrealized gains and losses on investments, interest and dividends) is included as a component of unrestricted activity unless the income or loss is restricted by donor or law.

Fair Value Measurement – Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Generally accepted accounting principles in the United States (GAAP) establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the CAO. Unobservable inputs are inputs that reflect the CAO’s assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances.

The hierarchy is broken down into three levels based on the reliability of inputs as follows:

• Level 1 – Valuations are based on quoted prices in active markets for identical assets or liabilities that the CAO has the ability to access. Valuation adjustments are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these instruments does not entail a significant degree of judgment.

• Level 2 – Valuations are based on quoted prices in markets that are not active or for which all significant inputs are observable, directly or indirectly.

• Level 3 – Valuations are based on inputs that are unobservable and significant to the overall fair value measurement.

Investment Risks – Investment securities are exposed to various risks, such as interest rate, market and credit risk. Due to the level of risk associated with certain investment securities and the level ofuncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in the near term could materially affect the amounts reported in the accompanyingfinancial statements.

Provision for Potential Uninsured Losses – The provision for potential uninsured losses is an estimate of the amount necessary to settle outstanding claims, including claims incurred but not reported, based on the facts in each case and the CAO’s experience with similar cases. The estimate is reviewed and updated regularly by management, and any resulting adjustments are reflected in current activities.

Deferred Revenue – Deferred revenue is recognized when cash advances exceed revenues earned against such advances. Deferred revenue is included in accounts payable and accrued expenses in the accompanying statements of financial position and is disclosed in Note 7.

Unrestricted and Temporarily Restricted Net Assets – Temporarily restricted net assets are those whose use by the CAO has been limited by donors to a specific time period or purpose. Unrestricted net assets are those whose use by the CAO has not been limited by donors.

Functional Allocation of Expenses – The costs of providing the various programs and other activities of the CAO have been summarized on a functional basis in the statements of activity and changes in net assets. Accordingly, certain costs have been allocated among the programs and supporting services benefited.

Income Taxes – The CAO is exempt from federal income tax under provisions of Section 501(c)(3) of the Internal Revenue Code. The CAO has also been classified by the Internal Revenue Service as an entity that is not a private foundation.

GAAP addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. For tax-exempt entities, their tax-exempt status itself is deemed to be an uncertainty, since events could potentially occur to jeopardize their tax-exempt status. As of August 31, 2015 and 2014, the CAO did not have liabilities for unrecognized tax benefits.

1.

CENTRAL ADMINISTRATIVE OFFICES OF THE DIOCESE OF BUFFALO

Financial Report

Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

ACCOUNTS RECEIVABLE

Diocesan Assessments and Other Accounts Receivable – The CAO assesses parishes an annual amount based primarily on historical parish offertory. Assessments are due on a monthly basis with the bal-ance at year-end representing uncollected amounts. An allowance for possible uncollectible amounts is maintained for current and prior years’ assessments.

Other accounts receivable consists primarily of amounts due from parishes and other institutions for Diocesan Purchasing Division (“DPD”) sales and payroll related expenses for parishes participating in the centralized payroll service.

The components of accounts receivable as of August 31, 2015 and 2014 were as follows:

PLEDGES RECEIVABLE

Pledge contributions relate to the annual Bishop’s Fund for the Faith campaign and are due to be received within twelve months of each fiscal year-end. Pledges receivable are reported net of an allowance for uncollectibility and as of August 31, 2015 and 2014, are as follows:

INVESTMENTS

Investments of the CAO are held primarily in the St. Joseph Investment Fund (the “SJIF”). The SJIF was organized by the Diocese for the purpose of offering Diocesan organizations a professionally managed fund in harmony with the teaching and beliefs of the Roman Catholic Church. The investments are managed by seventeen investment management firms and are overseen by the Investment Committee and Board of Directors of the SJIF. Investment income and investment management fees are allocated to SJIF participants based on the percentage of the net asset value of the individual funds to the total investment balance.

The following schedule for the years ended August 31, 2015 and 2014 summarizes the unrestricted investment activity in the statements of activity and changes in net assets:

The cost and fair value of the CAO’s investments at August 31, 2015 and 2014 is summarized as follows:

2015 2014

School assessments $ 599,904 $ 562,970Parish assessments 470,368 432,980Other 1,087,473 865,304Less: allowance for uncollectible accounts – school (328,487) (316,107)Less: allowance for uncollectible accounts – parish (261,203) (227,821)Total $ 1,568,055 $ 1,317,326

2.

Dividends and interest $ 740,568 $ 649,495

Investment management fees (168,873) (202,010)

Net realized gain 1,368,380 2,029,074

Realized investment income $ 1,940,075 $ 2,476,559

2015 2014

Cost Fair Value Cost Fair ValueSt. Joseph Investment Fund, Inc. $ 42,151,332 $ 43,283,006 $ 41,356,583 $ 47,228,150

Other Investments 88,466 666,178 83,028 675,642 Total Investments $ 42,239,798 $ 43,949,184 $ 41,439,611 $ 47,903,792

2015 2014

3.

4.

2015 2014Pledges due:

In less than one year $ 831,220 $ 869,263

Less: allowance for uncollectibility (16,744) (18,263)

Pledges receivable – net $ 814,476 $ 851,000

CENTRAL ADMINISTRATIVE OFFICES OF THE DIOCESE OF BUFFALO

Financial Report

Fair Value Disclosures

The following tables represent the CAO’s investments that are measured at fair value on a recurring basis at August 31, 2015 and 2014:

Level 1 Level 2 Level 3 Total St. Joseph Investment Fund, Inc. $ - $ 43,283,006 $ - $ 43,283,006 Other Investments: Interm. Diversified Bond Fund - 102,200 - 102,200 Value Equity Fund - 85,185 - 85,185 Core Equity Index Fund - 81,382 - 81,382 Growth Fund - 91,794 - 91,794 Small Cap Equity Index Fund - 81,291 - 81,291 International Equity Fund - 122,505 - 122,505 Opportunistic Bond Fund - 101,821 - 101,821 Other Investments - 666,178 - 666,178 Total Investments $ - $ 43,949,184 $ - $ 43,949,184 Level 1 Level 2 Level 3 Total St. Joseph Investment Fund, Inc. $ - $ 47,228,150 $ - $ 47,228,150 Other Investments: Interm. Diversified Bond Fund - 100,992 - 100,992 Value Equity Fund - 88,414 - 88,414 Core Equity Index Fund - 81,181 - 81,181 Growth Fund - 88,105 - 88,105 Small Cap Equity Index Fund - 81,598 - 81,598 International Equity Fund - 134,792 - 134,792 Opportunistic Bond Fund - 100,650 - 100,650 Other Investments - 675,642 - 675,642 Total Investments $ - $ 47,903,792 $ - $ 47,903,792

2015

The CAO’s investment in the SJIF represents an interest in the investment pool held by the SJIF.

The CAO may make additional investments in the SJIF at will, but is under no obligation to do so. Withdrawals can also be made at will, and are executed quarterly.

Other investments include investment funds of Christian Brothers Investment Services, Inc. (CBIS), which provides socially responsible investment services to Catholic organizations. CBIS provides daily net asset value information for shares of its investment funds, but these funds are not traded on public exchanges. CAO values its interest in the CBIS funds based on its under-standing of the price at which shares of these funds are purchased or liquidated by other CBIS investors, and on other information provided by CBIS. Therefore, these investments are classified as utilizing level 2 inputs.

Split-Interest Agreements – The CAO has been named the trustee for several irrevocable split-interest agreements. The donors have made a contribution to the CAO in exchange for a promise by the CAO to pay fixed amounts for a specified period of time to the beneficiary(s). The assets contributed are recognized at fair value when received and a liability is recognized for the amounts due to the beneficiary(s) at the present value of future cash flows using a discount rate prevalent at the date of the gift. Discount rates ranged from 1.4% to 6.2% for amounts owed at August 31, 2015 and 2014. The fair value of split-interest agreement assets is $834,786 and $908,414 as of August 31, 2015 and 2015, respectively. The liability for split-interest agreements is $271,947 and $284,719 as of August 31, 2015 and 2014, respectively.

PROPERTY, BUILDINGS, AND EQUIPMENT– NET

The components of property, buildings, and equipment as of August 31, 2015 and 2014 were as follows:

2015 2014

Property, administrative offices and residences $ 26,900,204 $ 26,239,293 Equipment, furnishings, and autos 4,495,289 4,443,487 Asset retirement costs 127,172 127,172

Less accumulated depreciation (20,034,024) (19,150,091)

Total $ 11,488,641 $ 11,659,861 Accumulated depreciation includes $127,172 of accumulated depreciation on asset retirement costs.

2014

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6. OTHER ASSETS

Other assets as of August 31, 2015 and 2014 consisted of the following: 2015 2014

Equity in insurance pool $ 17,327 $ 18,864 Inventory 252,168 315,340 Notes receivable 119,099 154,283 Prepaid expenses 92,587 117,175

Total $ 481,181 $ 605,662 Equity in insurance pool relates to the CAO’s participation in a liability risk retention pool (see Note 9). The equity is recorded based upon the CAO’s pro-rata share of the net assets of the pool as reported by pool management.

Inventory is recorded at the lower of cost or market.

ACCOUNTS PAYABLE AND ACCRUED EXPENSESAccounts payable and accrued expenses as of August 31, 2015 and 2014 consisted of the following:

2015 2014

Accounts payable $ 2,169,590 $ 1,926,104 Provision for guaranteed loans (Note 15) - 10,000 Funds held for national collections 399,123 379,882 Deferred revenue 685,154 680,590 Advance collections of insurance premiums 1,735,262 1,444,550 Total $ 4,989,129 $ 4,441,126

LETTERS OF CREDIT, LINES OF CREDIT AND NOTES PAYABLE

The CAO has a workers’ compensation letter of credit in the amount of $4,863,800 which matures on April 1, 2016. No balance was outstanding as of August 31, 2015. This letter of credit requires the CAO to pay fees of $24,724 and $24,823 in 2015 and 2014, respectively. This letter of credit is secured by a pledge agreement designating certain Diocese of Buffalo insurance assets invested in the St. Joseph Investment Fund as collateral.

The CAO has a disability letter of credit in the amount of $80,000 which matures on April 30, 2016. No balance was outstanding as of August 31, 2015. This letter of credit requires the CAO to pay fees of $560 and $560 in 2015 and 2014, respectively.

The CAO has a $2,000,000 line of credit available for short term operational needs. This line of credit bears interest at 30 day LIBOR plus 2.50%. No balance was outstanding as of August 31, 2015 and 2014, respectively.

The CAO has an additional $3,000,000 line of credit available for short term operational needs. This line of credit bears interest at 30 day LIBOR plus 2.25%. In March 2010, the CAO obtained a $2,700,000 term loan to finance the construction of the Msgr. Conniff Priest Retirement Residence. The loan is for a term of five years, maturing on April 1, 2015 requiring monthly payments of $51,058 including interest at 5.01%. The loan was paid in full April 1, 2015.

INSURANCE ACTIVITIES

The Insurance Services Department of the CAO manages insurance programs on behalf of parishes and other institutions within the Diocese through a combination of self-insurance retentions, participa-tion in a liability risk retention group with other Dioceses, and the purchase of excess insurance coverage above the self-insured levels. A provision for potential uninsured losses is maintained for workers’ compensation, general liability, priest misconduct, and disability. The provision for potential uninsured losses is reviewed annually by management and was $11,350,000 at August 31, 2015 and $11,550,000 at August 31, 2014. Parishes and institutions are billed premiums to defray the cost of the program. A summary of the insurance activities for the years ended August 31, 2015 and 2014 is as follows:

2015 2014 Premium revenue $ 7,148,390 $ 6,875,227 Realized investment gain 512,151 639,199 Total revenue 7,660,541 7,514,426

Claim expenses and administrative costs 5,639,171 5,799,691 Commercial insurance premiums 2,048,077 2,024,297 Total expenses 7,687,248 7,823,988 Net insurance activity $ (26,707) $ (309,562)CATHOLIC PARTNERSHIP HEALTH PLAN

The CAO, parishes, and other Diocesan entities participate in a voluntary self-insured health coverage program for lay employees. A provision for incurred but not reported claims has been made each plan year. The CAO paid premiums to the program of $1,566,288 and $1,401,915 for the years ended August 31, 2015 and 2014, respectively. A summary of the program for the years ended August 31, 2015 and 2014 is as follows: 2015 2014 Premium revenue $ 3,443,181 $ 3,307,462 Medical and prescription claims 2,565,405 2,522,046Stop loss premiums 241,147 229,545Claim administration fees 270,677 220,767Total expenses 3,077,229 2,972,358Net insurance activity $ 365,952 $ 335,104

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11. ACCOUNTING FOR CONDITIONAL ASSET RETIREMENT OBLIGATIONS

The CAO records all known asset retirement obligations for which the fair value of the environmental remediation liability can be reasonably esti-mated. The CAO has identified and recorded asbestos asset retirement obligations.

The following amounts are reflected in the statements of financial position as of August 31, 2015 and 2014 related to these obligations:

2015 2014

Asset retirement obligation - beginning of year $ 940,053 $ 895,289 Accretion expense during year 47,003 44,764 Asset retirement obligation - end of year $ 987,056 $ 940,053

The CAO is not aware of any other conditional asset retirement obligations as of August 31, 2015.

TEMPORARILY RESTRICTED NET ASSETS

Net assets temporarily restricted as of August 31, 2015 and 2014 consisted of the following:

2015 2014 Bishop’s Fund for the Faith $ 744,000 $ 851,000 Split-Interest Agreements 502,637 564,468 $ 1,246,637 $ 1,415,468

Temporarily restricted net assets were released from restriction during the years ended August 31, 2015 and 2014 as follows: 2015 2014

Bishop’s Fund for the Faith $ 851,000 $ 703,000 Contributions 39,753 12,800 $ 890,753 $ 715,800

OTHER ACTIVITIES

Other activities for the years ended August 31, 2015 and 2014, consisted of the following:

2015 2014

(Loss) gain on property, buildings, and equipment sales $ (100) $ 9,994 Rental and other net income 229,650 271,007 Diocesan Purchasing Division net loss (54,667) (142) Total $ 174,883 $ 280,859

The CAO leases property under the terms of a non-cancelable lease agreement to a tenant for $331,578 per year through December 31, 2022.

The Diocesan Purchasing Division (“DPD”) was established to take advantage of the high volume created by the purchasing needs of parishes and nonprofit institutions of the Diocese. DPD also operates the Catholic Union Store which is a retail specialty store located in the Catholic Center. A substantial portion of the DPD’s transactions are with affiliated parishes and other religious organizations. Sales to the Diocesan institutions amounted to $1,683,504 and $2,038,554, for the years ended August 31, 2015 and 2014, respectively. The combined DPD and store sales and other income were $1,719,587 and $2,121,828 for the years ended August 31, 2015 and 2014, respectively. The amount receivable related to Diocesan institutions was $111,586 and $199,264 for the years ended August 31, 2015 and 2014, respectively, and are included as part of other accounts receivable (see Note 2).

MULTIEMPLOYER RETIREMENT BENEFIT PLANS

Defined Benefit Pension PlansThe CAO contributes to two multiemployer defined benefit pension plans, the Diocese of Buffalo, New York Retirement Plan (Lay Plan), and the Retirement Plan for Secular Priests of the Diocese of Buffalo, New York (Priest Plan), in conjunction with other Diocesan organizations. The CAO does not directly manage these multiemployer plans, which are managed by a board of trustees. A majority of the CAO’s employees are participants in one of these multiemployer plans as of August 31, 2015 and 2014, subject to eligibility requirements.

Each of these plans is organized as a nonelecting noncontributory multiemployer church retirement plan, and therefore the plans are not subject to certain reporting requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA).

The risks of participating in a multiemployer plan are different from a single employer plan in the following aspects: (1) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (2) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; (3) if an employer chooses to stop participating in a multiemployer plan, the company may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. If a plan were to terminate, if participants voluntarily withdrew or there was a mass withdrawal, CAO may also be required to make additional payments to the plan for its proportionate share of underfunded liabilities.

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Total Plan Contributions for Contributions for Contributions Plan Funded Status as of the Year ended the Year ended Greater than December 31, 2014 August 31: December 31: 5% of Total? Plan Employer Accumulated Identification and BenefitPlan Plan Number Assets Obligation 2015 2014 2014 2013

Lay Plan 16-0743984-002 $ 180,165 $227,716 $ 430 $ 436 $ 7,560 $6,000 Yes

Priest Plan 16-0743984-001 $ 46,758 $ 45,538 $ 170 $ 125 $ 700 $ -0- Yes*

* The CAO’s contributions for the years ended August 31, 2015 and 2014 listed in the table above also include amounts paid for the multiemployer health and welfare plan noted below. The CAO made contributions greater than 5% of the total contributions to the Retirement Plan for Secular Priests of the Diocese of Buffalo, New York.

The plans’ accumulated benefit obligations are determined annually by the plans’ actuary. Significant actuarial assumptions utilized for the Lay Plan include a discount rate of 6.5%, an expected rate of investment return of 6.5%, and an expected rate of salary increase of 3.0%. Significant actuarial assumptions utilized for the Priest Plan include a discount rate of 6.5%, an expected rate of investment return of 6.5%, and an annual cost of living benefit increase of 3.0%. Plan assets for both plans are invested in two distinct investment trusts. Funded status information is not available as of August 31, 2015 and 2014 as actuarial valuations were not performed as of that date due to the significant cost of such retroactive calculations. The plans’ certified zone status is not available since the plans are not subject to ERISA reporting requirements.

In May 2015, the Board of Trustees of the plan approved a recommendation to freeze the plan as of January 1, 2016. Upon freezing the plan, a participant’s annual accrued benefit at the normal retire-ment date will remain the same as it is as of December 31, 2015, except for those participants not yet fully vested. Vesting service will continue to be credited for service completed in 2016 and later years. Contributions to the plan will continue at a reduced rate until the plan is fully funded. The Trustees also approved the implementation of a new defined contribution plan with a points based contribution schedule that will incorporate age and years of service.

Other Postretirement Benefit PlansIn addition to the multiemployer benefit pension plans described above, the CAO also participates in a multiemployer health and welfare plan that provides other postretirement benefits including health, dental and auto insurance for retired priests. The expected post retirement obligation is $27,800,000 as of January 1, 2015. Benefits are funded by contributions from parishes and participating employers in the Diocese. The health and welfare plan is unfunded. A long-term remediation plan has been developed to establish a distinct investment fund for priest retirement benefits other than pension. The CAO contributions noted above funded the health and welfare plan.

RELATED PARTIES

Substantial portions of the CAO’s activities involve transactions with parishes and other religious organizations. The following significant related-party transactions occurred during the years ended August 31, 2015 and 2014, respectively:

In 2015 and 2014 the CAO supported Christ the King Seminary (the “Seminary”) in East Aurora through an annual operating subsidy of $300,000, and through tuition and support payments for men from the Diocese who are studying for the priesthood. Total subsidy and support was $1,450,552 and $1,086,730 for fiscal years ended August 31, 2015 and 2014, respectively.

The CAO administers a payroll service through a third-party payroll provider for various parishes and the Seminary. Accounts receivable related to the payroll service were $25,400 and $24,906 as of August 31, 2015 and 2014, respectively (see Note 2). The Diocesan Computer Services Department of the CAO provides technical support to the Diocesan Cemeteries, and Christ the King Seminary. Total income for these services amounted to $30,000 and $30,000 in the fiscal years 2015 and 2014, respectively.

In fiscal year 2015, $10,800 in contributions were received from the Foundation to the Office of the Vicar for Religious, $10,545 to Daybreak TV Productions, $300 to the Pro-Life Office, $5,900 to the Catholic Education Department and $3,500 to the University of Buffalo Newman Center.

In fiscal year 2014, $17,500 in contributions were received from the Foundation for Lifelong Faith Formation, $10,500 for Daybreak TV Productions, $2,994 for the Pro-Life Office, $10,000 for the Catholic Education Department and $3,000 for the University of Buffalo Newman Center.

The CAO received $-0- and $66,776 from the Foundation in 2015 and 2014, respectively, for expenses incurred by the CAO in promoting Planned Giving initiatives.

The CAO provides administrative and accounting services to the SJIF. Administrative fees paid by the SJIF to the CAO amounted to $97,500 and $95,000 in the years ended August 31, 2015 and 2014, respectively.

The CAO assisted the former Diocesan high schools with an aggregate subsidy of $1,038,701 and $975,581 in 2015 and 2014, respectively.

The following table presents information on the plans and the CAO’s participation in the plans (000):

SUBSEQUENT EVENTS

Subsequent events have been evaluated through December 1, 2015, which is the date the financial statements were available to be issued.* * * * * *

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CONTINGENCIES

The Diocese is guarantor of loans to parishes and other institutions which approximated $6,570,000 for 15 loans and $6,861,000 for 15 loans as of August 31, 2015 and 2014, respectively. The CAO annually reviews the financial projections of the parishes and other institutions to determine if the loan obligations are able to be fulfilled. Based upon management’s most recent review, the CAO has determined that no liability is necessary for these loans as of August 31, 2015. The loans are provided by 4 lending institutions in 2015 and principally supported the construction and remodeling of parish facilities.

A provision for parish restructuring costs has been established related to the Journey in Faith and Grace strategic plan. An analysis of the ability of parishes to meet their financial obligations through the restructure process has been completed by management. A reserve of $1.8 million for 2015 and 2014 has been established for certain parish communities that may need financial assistance.

Various legal actions are pending against the Diocese. The outcome of these matters is not presently determinable but, in the opinion of management, the CAO is adequately protected by purchased insurance coverage and by insurance reserves, and any ultimate resolution will not have a material adverse effect on the financial condition of the CAO.

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SCHEDULES OF EXPENSESFOR THE YEARS ENDED AUGUST 31, 2015 and 2014

CENTRAL ADMINISTRATIVE OFFICES OF THE DIOCESE OF BUFFALO

2015 2014PASTORAL: Subsidy to St. Joseph Cathedral $ 401,829 $ 323,293 National Assessments 297,986 234,963 Parish Restructuring expenses 22,489 188,262 Parish Subsidy 3,076 4,649 St. Columban Retreat House 169,762 152,075 Hospital Apostolate 65,366 75,201 Tribunal (net of related revenues of $67,318 in 2015 and $61,211 in 2014) 294,867 272,290 Communications (net related revenues of $42,565 in 2015 and $42,396 in 2014) 175,569 168,576 Telecommunications (net of related revenues of $3,553 in 2015 and $4,644 in 2014) 34,605 34,405 Daybreak TV Productions (net of related revenues of $69,204 in 2015 and $118,916 in 2014) 420,640 424,283 Western New York Catholic (net of related revenues of $426,901 in 2015 and $422,863 in 2014) 57,809 29,298 Office of Worship (net of related revenues of $13,275 in 2015 and $14,301 in 2014) 84,402 98,204 Office of Catechumenate (net of related revenues of $1,600 in 2015 and $2,005 in 2014) 42,070 37,137 Office of Cultural Diversity (net of related revenues of $15,200 in 2015 and $15,300 in 2014) 176,563 178,259 Office of Church Ministry 22,388 16,336 Evangelization and Parish Life 124,134 104,081 Network of Religious Communities 23,000 23,000 Vicar for Priests 19,507 21,819 Charismatic Renewal 7,848 515 Apostolate for the Deaf 24,123 22,626 Council of Priests 14,340 14,725 Other 5,236 11,680 Total pastoral 2,487,609 2,435,677

RELIGIOUS PERSONNEL DEVELOPMENT: Priests’ retirement residences and other retired priests’ benefits (net of related revenues of $366,689 in 2015 and $385,542 in 2014) 2,089,644 2,058,575 Priest Personnel Board 47,884 43,533 Christ the King Seminary subsidy 300,000 300,000 Seminarian Education 1,150,552 786,730 Vicariate for Religious 56,217 51,062 Vocations Office 113,504 119,979 St. Mark’s Residence 4,490 6,380 Continuing Formation of Priests 101,898 56,946 Priests’ Special Medical Care 316,112 241,576 Diaconate Program 93,904 108,574 Counseling Center 41,588 35,680 Catholic Urban Outreach (net of related revenues of $39,000 in 2015 and $37,750 in 2014) 13,869 11,092 Total religious personnel development 4,329,662 3,820,127

HIGH SCHOOLS SUPPORT $ 1,038,701 $ 975,581 OTHER EDUCATIONAL APOSTOLATES: Office of Superintendent of Catholic Education 1,133,405 1,053,917 (net of related revenues of $342,170 in 2015 and $510,895 in 2014) Elementary Schools Subsidy 63,126 62,626 Campus Ministry (net of related revenues of $516,886 in 2015 and $514,065 in 2014) 475,401 438,048 Catechetical Mission centers 49,987 48,977 Total other educational apostolates 1,721,919 1,603,568

ELEMENTARY SCHOOL FUNDING PLAN 5,187,736 4,316,495

2015 2014

FAMILY AND YOUTH SERVICES: Youth Department (net of related revenues of $379,393 in 2015 and $418,044 in 2014) 314,675 259,206 Family Life (net of related revenues of $51,491 in 2015 and $57,300 in 2014) 101,418 99,673 Pro Life (net of related revenues of $68,624 in 2015 and $48,903 in 2014) 167,557 166,264

Total family and youth services 583,650 525,143

CENTRAL SUPPORT MINISTRY: Administrative Offices 2,709,030 2,566,318 Buildings and Properties Department (net of related revenues of $-0- in 2015 and expenses of $29,428 in 2014) 418,752 382,294 Computer Services Center (net of related revenues of $40,895 in 2015 and $40,895 in 2014) 490,093 483,214 Advancement Office (net of related revenues of $351,448 in 2015 and $437,008 in 2014) 404,606 393,099 Human Resources 103,199 96,164 Research, Planning and Census 121,784 119,058 Legal and audit 229,709 199,706 Interest 27,807 17,983

Total central support ministry 4,504,980 4,257,836

TOTAL EXPENSES $ 19,854,257 $ 17,934,427

See accompanying notes.