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Roman Catholic Archdiocese of San Antonio Pastoral Center

Financial Statements and Supplementary Information

June 30, 2014 and 2013

Roman Catholic Archdiocese of San Antonio Pastoral Center Table of Contents Financial Statements Page

Independent Auditor’s Report 1

Statements of Financial Position 3

Statements of Activities and Changes in Net Assets 4

Statements of Cash Flows 6

Notes to the Financial Statements 7

Supplementary Information

Independent Auditor’s Report on Supplementary Information 26

Schedules of Functional Expenses 27

AUSTIN HOUSTON SAN ANTONIO 811 BARTON SPRINGS ROAD, SUITE 550 1980 POST OAK BOULEVARD, SUITE 1500 100 N.E. LOOP 410, SUITE 1100 TOLL FREE: 800 879 4966

AUSTIN, TEXAS 78704 HOUSTON, TEXAS 77056 SAN ANTONIO, TEXAS 78216 WEB: PADGETT‐CPA.COM

512 476 0717 800 879 4966 210 828 6281

Independent Auditor’s Report Most Reverend Gustavo Garica‐Siller, MSpS Archbishop of San Antonio Roman Catholic Archdiocese of San Antonio Pastoral Center San Antonio, Texas Report on the Financial Statements We have audited the accompanying financial statements of the Roman Catholic Archdiocese of San Antonio Pastoral Center (the “Pastoral Center”), which comprise the statements of financial position as of June 30, 2014 and 2013, and the related statements of activities 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 Statements Management 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 Responsibility Our 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 audit 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 the Pastoral Center’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.

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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Pastoral Center as of June 30, 2014 and 2013, 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.

San Antonio, Texas December 3, 2014

Roman Catholic Archdiocese of San Antonio Pastoral Center Statements of Financial Position June 30, 2014 and 2013

Notes to the financial statements form an integral part of these statements. Page 3

2014 2013

Cash and cash equivalents:Plant and operations fund $ 21,042,824 $ 18,942,419Deposit and loan fund 77,870 948,096

Pledges receivable – net of allowance of $574,245 ($661,707 in 2013) 1,356,518 1,591,885Accounts receivable:Insurance programs – net of allowance of $1,060,505($1,072,812 in 2013) 685,252 1,078,930

Archdiocesan assessments – net of allowance of $131,882($110,907 in 2013) 395,646 332,721

Other accounts – net of allowance of $2,596 ($1,955 in 2013) 160,156 1,467,488Interest receivable 67,442 128,704Prepaid expenses and other assets 51,089 62,441Funds held by insurance company 309,272 356,086Investments:Plant and operations fund 11,192,990 10,902,375Deposit and loan fund 1,221,344 1,206,439

Notes receivable:Plant and operations fund – net of allowance of $4,352,886($1,006,123 in 2013) 3,785,212 3,018,369

Deposit and loan fund – net of allowance of $33,495($14,125 in 2013) 625,746 268,371

Land, buildings, and equipment – net 4,338,238 4,331,936

Total assets $ 45,309,599 $ 44,636,260

Liabilities:Accounts payable and accrued expenses $ 1,895,738 $ 937,500Deposits payable – deposit and loan fund 1,753,185 2,259,776Self‐insurance reserve 4,950,460 4,745,447Postretirement benefits obligation 5,501,238 4,830,567Deferred revenue 121,199 103,170Due to others 1,412,823 1,499,310

Total liabilities 15,634,643 14,375,770

Net assets:Unrestricted:Undesignated 6,853,646 8,199,846Designated:Plant and operations fund 22,098,630 21,365,096Deposit and loan fund 632,298 573,295

Total unrestricted 29,584,574 30,138,237

Temporarily restricted 70,382 102,253Permanently restricted 20,000 20,000

Total net assets 29,674,956 30,260,490

Total liabilities and net assets $ 45,309,599 $ 44,636,260

Roman Catholic Archdiocese of San Antonio Pastoral Center Statement of Activities and Changes in Net Assets Year Ended June 30, 2014


Temporarily PermanentlyUnrestricted Restricted Restricted Totals

Revenue, gains, and other support:Archdiocesan assessments $ 8,905,860 $ ‐ $ ‐ $ 8,905,860Educational 135,271 ‐ ‐ 135,271Contributions and support 2,751,672 ‐ ‐ 2,751,672Fees from operations 557,178 ‐ ‐ 557,178Insurance premiums – net of rebates 16,387,695 ‐ ‐ 16,387,695Program fees 299,149 ‐ ‐ 299,149Grant income 738,966 146,926 ‐ 885,892Investment return 913,567 ‐ ‐ 913,567Auxiliary activities 1,396,975 ‐ ‐ 1,396,975Archbishop’s Appeal – net of rebates 4,713,824 ‐ ‐ 4,713,824Deposit and loan fund – interest income 59,694 ‐ ‐ 59,694Advertising revenue and sales 324,548 ‐ ‐ 324,548Gain on sale of assets 500 ‐ ‐ 500Other revenues 56,568 ‐ ‐ 56,568Net assets released from restrictions 178,797 (178,797) ‐ ‐

Total revenue, gains, andother support 37,420,264 (31,871) ‐ 37,388,393

Expenses:Program services:Clergy and Consecrated Life 1,376,911 ‐ ‐ 1,376,911Education and Formation Services 2,346,339 ‐ ‐ 2,346,339San Antonio Seminarians 962,844 ‐ ‐ 962,844Social services 475,784 ‐ ‐ 475,784Communication services 1,096,800 ‐ ‐ 1,096,800Auxiliary services 8,304,225 ‐ ‐ 8,304,225Archbishop’s Appeal 1,883,160 ‐ ‐ 1,883,160Old Spanish Missions Care Services 933,889 ‐ ‐ 933,889

Supporting services:Insurance programs 16,851,790 ‐ ‐ 16,851,790General administrative services 3,370,254 ‐ ‐ 3,370,254Deposit and loan fund – primarilydeposit interest 27,897 ‐ ‐ 27,897

Total expenses 37,629,893 ‐ ‐ 37,629,893

Decrease in net assets beforepostretirement‐related changeother than net periodic pensioncosts (209,629) (31,871) ‐ (241,500)

Postretirement‐related change otherthan net periodic pension costs (344,034) ‐ ‐ (344,034)

Changes in net assets (553,663) (31,871) ‐ (585,534)

Net assets at beginning of year 30,138,237 102,253 20,000 30,260,490

Net assets at end of year $ 29,584,574 $ 70,382 $ 20,000 $ 29,674,956

Roman Catholic Archdiocese of San Antonio Pastoral Center Statement of Activities and Changes in Net Assets Year Ended June 30, 2013


Temporarily PermanentlyUnrestricted Restricted Restricted Totals

Revenue, gains, and other support:Archdiocesan assessments $ 8,566,308 $ ‐ $ ‐ $ 8,566,308Educational 135,095 ‐ ‐ 135,095Contributions and support 3,055,474 20,000 ‐ 3,075,474Fees from operations 321,322 ‐ ‐ 321,322Insurance premiums – net of rebates 15,462,703 ‐ ‐ 15,462,703Program fees 396,405 ‐ ‐ 396,405Grant income 1,141,378 130,713 ‐ 1,272,091Investment return 193,437 ‐ ‐ 193,437Auxiliary activities 1,713,994 ‐ ‐ 1,713,994Archbishop’s Appeal – net of rebates 4,246,715 ‐ ‐ 4,246,715Deposit and loan fund – interest income 70,820 ‐ ‐ 70,820Advertising revenue and sales 337,019 ‐ ‐ 337,019Gain on sale of assets 180,686 ‐ ‐ 180,686Other revenues 30,575 ‐ ‐ 30,575Net assets released from restrictions 121,195 (121,195) ‐ ‐

Total revenue, gains, andother support 35,973,126 29,518 ‐ 36,002,644

Expenses:Program services:

Clergy and Consecrated Life 1,330,180 ‐ ‐ 1,330,180Education and Formation Services 2,017,540 ‐ ‐ 2,017,540San Antonio Seminarians 605,615 ‐ ‐ 605,615Social services 722,602 ‐ ‐ 722,602Communication services 1,139,441 ‐ ‐ 1,139,441Auxiliary services 6,134,644 ‐ ‐ 6,134,644Archbishop’s Appeal 1,732,416 ‐ ‐ 1,732,416Old Spanish Missions Care Services 2,078,754 ‐ ‐ 2,078,754

Supporting services:Insurance programs 14,241,333 ‐ ‐ 14,241,333General administrative services 3,585,716 ‐ ‐ 3,585,716Deposit and loan fund – primarily

deposit interest 154,571 ‐ ‐ 154,571

Total expenses 33,742,812 ‐ ‐ 33,742,812

Increase in net assets beforepostretirement‐related changeother than net periodic pensioncosts 2,230,314 29,518 ‐ 2,259,832

Postretirement‐related change otherthan net periodic pension costs (344,034) ‐ ‐ (344,034)

Changes in net assets before donationsto Catholic Community Foundation 1,886,280 29,518 ‐ 1,915,798

Donation to Catholic CommunityFoundation (note 13) (18,260,350) ‐ (18,088) (18,278,438)

Changes in net assets (16,374,070) 29,518 (18,088) (16,362,640)

Net assets at beginning of year 46,512,307 72,735 38,088 46,623,130

Net assets at end of year $ 30,138,237 $ 102,253 $ 20,000 $ 30,260,490

Roman Catholic Archdiocese of San Antonio Pastoral Center Statements of Cash Flows Years Ended June 30, 2014 and 2013


2014 2013

Cash Flows From Operating ActivitiesChanges in net assets $ (585,534) $ (16,362,640)

Adjustments to reconcile changes in net assets to netcash provided by (used in) operating activities:Depreciation expense 296,372 351,864Gain on sale of assets (500) (180,686) Provision for allowance for doubtful accounts 3,287,980 156,978Unrealized and realized (gains) losses on investments (515,051) 153,522Postretirement‐related change other thannet periodic pension costs 344,034 344,034

Changes in operating assets and liabilities:Pledges receivable 322,829 160,842Accounts and interest receivable (500,012) (958,140)Prepaid expenses and other assets 11,352 2,010Funds held by insurance company 46,814 59,824Accounts payable and accrued expenses 958,240 (277,646)Self‐insurance reserve 205,013 343,818Postretirement benefits obligation 326,637 (1,391,247)Deferred revenue 18,029 (44,888)Due to others (86,487) 155,861

Net cash provided by (used in) operating activities 4,129,716 (17,486,494)

Cash Flows From Investing ActivitiesInvestment purchases (5,701,464) (6,101,595)Sale of investments 5,911,493 20,498,667 Purchase of land, buildings, and equipment (302,674) (270,746) Proceeds on sale of property ‐ 278,276

Net cash provided by (used in) investing activities (92,645) 14,404,602

Cash Flows From Financing ActivitiesIssuance of notes receivable (3,550,535) (2,556,898)Collections of notes receivable 1,250,234 1,707,130Increase (decrease) in deposits payable – deposit and loan fund (506,591) 115,967

Net cash used in financing activities (2,806,892) (733,801)

Net increase (decrease) in cash and cash equivalents 1,230,179 (3,815,693)

Cash and cash equivalents at beginning of year 19,890,515 23,706,208

Cash and cash equivalents at end of year $ 21,120,694 $ 19,890,515

Reconciliation of Cash and Cash Equivalents to Statements of Financial Position

Plant and operations fund $ 21,042,824 $ 18,942,419Deposit and loan fund 77,870 948,096

$ 21,120,694 $ 19,890,515

Supplemental Disclosures of Cash Flow InformationCash paid for interest $ 8,527 $ 13,627

Roman Catholic Archdiocese of San Antonio Pastoral Center Notes to the Financial Statements

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1. Summary of Significant Accounting Policies Organization The Roman Catholic Archdiocese of San Antonio Pastoral Center (the “Pastoral Center”) is the administrative entity of the Roman Catholic Archdiocese of San Antonio (the “Archdiocese”). The Pastoral Center provides planning and direction in the administration of pastoral, vocational, educational, and other services to its parishes and Archdiocesan institutions. The Pastoral Center also provides insurance, financing, investing, and other advisory services to certain organizations of the Archdiocese. The accompanying financial statements include all accounts maintained by and directly under the administration and operational direction of the Pastoral Center. The Pastoral Center’s fund accounting balances include the following activities as the plant and operations fund:

General operations of the Pastoral Center

Insurance programs

Archbishop’s Appeal activities

Catholic Schools/Designated Schools Endowment Funds

Hope for the Future tuition assistance program

Custodian fund activities

Catholic Television

Old Spanish Missions, Inc.

Land, buildings, and equipment of the Pastoral Center – net of accumulated depreciation In addition, the Pastoral Center maintains a deposit and loan fund whereby funds can be deposited by parishes or individuals, and loans can be obtained by parishes for construction or special needs. The Pastoral Center’s accompanying financial statements do not include the accounts of other organizations of the Archdiocese, such as parishes, foundations, schools, cemeteries, seminaries, or any other institutions owned and operated by religious orders of men or women, except insofar as financial transactions have taken place between such organizations and the Pastoral Center. These organizations may or may not be separate corporations under civil law; however, each is an operating entity distinct from the Pastoral Center, maintains separate accounts and operating controls, carries on its mission through its services and programs, and is expected to report annually to its respective constituency.


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The Pastoral Center maintains the accounts and provides the administration and operating direction for the following programs. Clergy and Consecrated Life – The Clergy and Consecrated Life program was established to assist with the pastoral care of all Archdiocesan priests and deacons and encourages their personal and spiritual growth, the pursuit of theological updating, and the ongoing development of their pastoral and ministerial skills through annual retreats, clergy days, and annual convocation. Education and Formation Services – The Education and Formation programs provide resources, educational opportunities, and faith formation to assist people of all ages from various walks of life to promote Gospel values in the local parish, the local Church, and the world. The offices of ministry include: Archdiocesan Catechetical Center/Adult Faith Formation; Young Adult/Campus Ministry; Youth Ministry; Marriage, Family Life, and Natural Family Planning; RCIA; Life, Justice and Peace; Liturgy; Evangelization; and Mission Awareness. The Catholic Schools Office provides services and direction to pastors, principals, teachers, and other school leaders so the vision of Catholic education in the Archdiocese can be realized. San Antonio Seminarians – The San Antonio Seminarian education and formation expenses for men studying for the priesthood are paid by the Pastoral Center. The newly established Seminarian Formation Endowment Fund, owned by the Catholic Community Foundation, will provide donations to the Pastoral Center to assist with these expenses. Social Services – The social services program works to promote, at the parish and community level, the development of social services throughout the Archdiocese. Communication Services – The communication services program brings the message of Jesus in an understandable way to Catholics and non‐Catholics alike. It distributes information on Archdiocesan events and developments in the church to the media and provides messages from the Archbishop to the members of the church, as well as the public. Auxiliary Services – The auxiliary services program consists of agencies whose purpose is to provide assistance to parishes, schools, and programs through fundraising and stewardship. Archbishop’s Appeal – This annual fundraising campaign provides supplemental financial assistance to institutions, programs, and ministries affiliated with the Catholic church throughout the Archdiocese of San Antonio. Old Spanish Missions Care Services – Old Spanish Missions, Inc. (“OSM, Inc.”) is a not‐for‐profit corporation operated by the Pastoral Center. OSM, Inc. was established to provide care for the four missions located within the San Antonio, Texas area. Its mission is to maintain and restore the four missions located in San Antonio, Texas.


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Insurance Programs – Insurance programs is a fund established for the accounting of the insurance benefits established by the Archdiocese in which all Archdiocesan agencies participate. The insurance benefits included are a health insurance plan, workers’ compensation, and property liability insurance. Payments for insurance premiums received in advanced for future periods are recorded as deferred revenues. Supporting Services – Supporting services are essential and legitimate costs of providing services to the Archdiocesan agencies. These costs include expenses such as salaries and benefits, information technology, office supplies and postage, utilities, and repairs and maintenance, among others. Deposit and Loan Fund – The deposit and loan fund was established to fund a depository at the Pastoral Center whereby funds can be deposited by parishes or individuals, and loans can be obtained by parishes for construction or special needs. A reduced rate of interest is applied, to ensure the basic Christian concept of communities helping communities might be achieved in the realm of financial sharing. Basis of Presentation The financial statements of the Pastoral Center are prepared on the accrual basis of accounting with standards applicable to not‐for‐profit organizations in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The net assets, revenues, expenses, gains, and losses of the Pastoral Center are classified based on the existence or absence of donor‐imposed restrictions. Accordingly, the net assets of the Pastoral Center and changes therein are classified and reported as follows. Unrestricted Net Assets – Unrestricted net assets represent expendable funds available for operations, which are not otherwise limited by donor restriction. Unrestricted net assets may be designated for a specific purpose by action of the Board of Directors (the “Board”). Temporarily Restricted Net Assets – Temporarily restricted net assets consist of contributed funds subject to specific donor‐imposed restrictions contingent upon specific performances of a future event or a specific passage of time before the Pastoral Center may spend the funds. Permanently Restricted Net Assets – Permanently restricted net assets, including endowments received by the Pastoral Center, are subject to irrevocable explicit donor restrictions requiring that the assets be maintained in perpetuity, usually for the purpose of generating investment income to fund annual operations. Support and revenue are reported as an increase in unrestricted net assets unless use of the related assets is limited by donor‐imposed restrictions. Expenses are reported as decreases in unrestricted net assets. Gains and losses on investments and other assets or liabilities are reported as increases or decreases in unrestricted net assets unless their use is restricted by explicit donor stipulation or by law. Expirations of temporary restrictions on net assets (e.g., the donor‐stipulated purpose has been fulfilled and/or the stipulated time period has elapsed) are reported as reclassifications between the applicable classes of net assets.


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Accordingly, the Pastoral Center reports gifts of cash and other assets as temporarily restricted support if they are received with donor restrictions that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statements of activities and changes in net assets as net assets released from restrictions. Donor‐restricted contributions whose restrictions are met in the same reporting period are reported as unrestricted support. Some of the funds generated by the Pastoral Center are designated by various boards that serve the Archdiocese for endowment funds for long‐term investment purposes, and the interest income earned is distributed at the discretion of the boards to individual agencies and schools. The Pastoral Center has created the Archdiocese of San Antonio Endowment Fund, Inc.; the Archdiocesan Catholic Schools Endowment Fund, Inc.; the Archdiocesan Designated Catholic Schools Endowment Fund, Inc.; and the Seton Home Endowment Fund, Inc. Gifts of cash and other assets are classified as permanently restricted if the donor’s explicit stipulation is to place the funds in perpetuity in one of the Pastoral Center’s endowments. The income earned on the permanently restricted net assets is to be made available for program activities. As further described in note 13, the Pastoral Center donated the assets of certain endowment funds in fiscal year 2013. Cash and Cash Equivalents For financial statement purposes, the Pastoral Center considers funds in money market accounts and highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Pledges Receivable – Capital Campaigns The Pastoral Center recognizes promises to give, also known as pledges, in the financial statements when there is sufficient evidence in the form of verifiable documentation that a promise was made and received. Pledges receivable are from commitments to OSM, Inc.’s capital campaign, the Good Shepherd Center, the Archbishop’s Appeal, and Hope for the Future. The related pledges receivable are discounted to an estimated present value. Accounts and Notes Receivable The allowance for doubtful accounts is established as losses are estimated to have occurred through a provision for bad debts charged to earnings. Losses are charged against the allowance when management believes the receivable is no longer collectible. Subsequent recoveries, if any, are credited to the allowance. The allowance for doubtful accounts is evaluated on a regular basis by management and is based on specifically identified questionable receivables. The evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. Accounts Receivable – Insurance Program Insurance program receivables are recorded on the accrual basis of accounting. Each fiscal year, the Pastoral Center bills the various entities for their share of the self‐insurance program which covers their respective property, liability, workers’ compensation, and health insurance expenses.


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Accounts Receivable – Archdiocesan Assessments Archdiocesan assessments are recorded on the accrual basis of accounting. Each fiscal year, the Pastoral Center assesses its parishes between 2% and 12% on parish revenues (graduated based on parish income level), plus an additional 5% of the assessment rate for parishes with schools or an additional 7% of the assessment rate for parishes without schools. Accounts Receivable – Other Other receivables are recorded on the accrual basis of accounting. The Pastoral Center records receivables for reimburseable expenses made on behalf of other entities. Investments Investments consist of certificates of deposit (“CDs”) and mutual fund accounts. Investments are reported at their fair values in the statements of financial position. Unrealized and realized gains and losses are included in the statements of activities and changes in net assets. Land, Buildings, and Equipment Land, buildings, and equipment are stated at cost, if purchased, or at fair value, if donated, less depreciation. Assets with lives greater than one year and that have a value greater than $5,000 for movable assets, renovations and building additions that add value or extend the life of the assets, as well as all land and construction costs of new buildings, are capitalized. Depreciation is calculated on the straight‐line method based on the estimated useful lives of the assets. The following estimated useful lives are used:

Asset

Land improvements 15 yearsBuildings and leasehold improvements 30 yearsEquipment 15‐25 yearsMovable equipment 2‐10 years

Estimated Useful Life

Self‐Insurance Reserves The Pastoral Center establishes insurance claims liabilities based on estimates of the ultimate cost of claims (including future claim adjustment expenses) that have been reported, but not settled, and of claims that have been incurred, but not reported. The length of time for which such costs must be estimated varies depending on the coverage involved. The amount paid to ultimately settle these claims may be more or less than the amounts currently accrued. Contributions All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Unconditional promises to give are recorded as received, and allowances are provided for amounts estimated to be uncollectible. Unconditional promises to give that are expected to be collected within one year are recorded at net realizable value. Unconditional promises to give that are expected to be collected in future years, if any, are recorded at the present value of their estimated future cash flows. Conditional promises to give are not included as support until the conditions are substantially met.


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Functional Allocations of Expenses The costs of providing various programs and other activities have been summarized on a functional basis in the statements of activities and changes in net assets. Accordingly, certain costs have been allocated among the programs and supporting services benefited. Federal Income Taxes The Pastoral Center is exempt from federal income tax under provisions of Section 501(c)(3) of the Internal Revenue Code. However, the Pastoral Center is subject to tax under Section 511(a) to the extent it has unrelated business taxable income. The Pastoral Center has no material unrelated business taxable income for the years ended June 30, 2014 and 2013. The Pastoral Center, generally, is no longer subject to income tax examinations by federal authorities for the years prior to June 30, 2011. Contributed Services Contributed services are reflected in the financial statements at the fair value of the services received. The contributions of services are recognized if the services received (a) create or enhance nonfinancial assets or (b) require specialized skills and are provided by individuals possessing those skills and would typically need to be purchased if not provided by donation. Contributed services recognized are not significant. Contingencies Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Pastoral Center, but which will only be resolved when one or more future events occur or fail to occur. The Pastoral Center’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Pastoral Center or unasserted claims that may result in such proceedings, the Pastoral Center’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Pastoral Center’s financial statements. If the assessment indicates a potentially material loss contingency is not probable, but is reasonably possible, or is probable, but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Use of Estimates The preparation of financial statements in conformity with GAAP 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.


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Advertising and Promotional Costs The Pastoral Center expenses advertising and promotional costs when they are incurred. Advertising and promotional costs for the year ended June 30, 2014 totaled $134,404 ($227,011 in 2013). Subsequent Events The Pastoral Center has evaluated subsequent events through December 3, 2014, the date financial statements were available to be issued. Reclassification Certain reclassifications have been made in the prior year’s financial statements to conform to the current year’s presentation. 2. Pledges Receivable Pledges receivable – net consist of the following:

2014 2013

OSM, Inc.’s capital campaign $ 70,800 $ 75,485Pastoral Center’s capital campaigns 1,285,718 1,516,400

Total pledges receivable – net $ 1,356,518 $ 1,591,885

June 30,

OSM, Inc.’s Capital Campaign OSM, Inc. started a capital campaign during fiscal year 2008. The purpose of the capital campaign is to preserve San Antonio’s missions by securing financial support for the restoration and preservation of those missions. At June 30, 2014 and 2013, pledges net receivable of $70,800 and $75,485, respectively, are included as unrestricted designated net assets. Total amount of pledges receivable – net is summarized as follows:

2014 2013

Unrestricted designated:Less than one year $ 256,700 $ 256,700One to five years 162,500 223,000

419,200 479,700Less provision for allowance for pledges receivable 348,002 401,502Less discount for present value (0.11% in 2014and 0.58% in 2013) 398 2,713

Pledges receivable – net $ 70,800 $ 75,485

June 30,


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Pastoral Center’s Capital Campaigns Total amount of pledges receivable – net is summarized as follows:

2014 2013

Unrestricted designated:Less than one year $ 1,371,874 $ 1,673,039One to five years 141,253 109,666

1,513,127 1,782,705Less provision for allowance for pledges receivable 226,243 260,205Less discount for present value (0.11% in 2014and 0.58% in 2013) 1,166 6,100

Pledges receivable – net $ 1,285,718 $ 1,516,400

June 30,

3. Accounts Receivable Accounts receivable consist of the following:

2014 2013

Insurance program $ 1,745,757 $ 2,151,742Archdiocesan assessment 527,528 443,628Other 162,752 1,469,443

Total accounts receivable 2,436,037 4,064,813

Less allowance for uncollectible accounts 1,194,983 1,185,674

Total accounts receivable – net $ 1,241,054 $ 2,879,139

June 30,

In fiscal year 2014, the Pastoral Center transferred the accounts receivable balance of the Mission Concepcion Sports Park, Inc. of $1,758,099 to a note receivable. Also, in fiscal year 2014 and as described in footnote 6, an accounts receivable from the Good Shepherd Network of Catholic Schools, Inc. (“GSN”) was also transferred to a note receivable. 4. Fair Value Measurements The requirements of Fair Value Measurements and Disclosures of the Accounting Standards Codification apply to all financial instruments and all nonfinancial assets and nonfinancial liabilities that are being measured and reported on a fair value basis. Fair value is defined as the price that would be received to


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sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair Value Measurements and Disclosures also establishes a fair value hierarchy that prioritizes the inputs used in valuation methodologies into the following three levels:

Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 Inputs – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, or other inputs that can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 Inputs – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or other valuation techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

At June 30, 2014 and 2013, all investments were classified as Level 1. The fair value of the Pastoral Center’s cash and cash equivalents, pledges and accounts receivable and payable, and notes receivable approximates the carrying amounts of such instruments due to their short maturity. 5. Investments The Pastoral Center’s investments are invested at various financial institutions with the majority of the investments managed by the Catholic Community Foundation (“CCF”). These investments are exposed to various risks such as interest rate, market, and credit risk. Due to the level of risk associated with such investments and the level of uncertainty related to changes in the value of such investments, it is at least reasonably possible that changes in risks in the near future would materially affect investment balances and the amounts reported in the financial statements. Investments consist of the following:

Estimated Estimated Fair Unrealized Fa ir Unreal i zed

Cost Value Appreciation Cost Va lue Depreciation

CDs $ 2,255,939 $ 2,256,606 $ 667 $ 2,375,725 $ 2,373,485 $ (2,240) Mutual funds 10,145,401 10,157,728 12,327 10,151,522 9,735,329 (416,193)

$ 12,401,340 $ 12,414,334 $ 12,994 $ 12,527,247 $ 12,108,814 $ (418,433)

June 30, 2014 June 30, 2013


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Investment returns (losses) consist of the following:

2014 2013

Interest income $ 283,601 $ 241,324 Dividend income 284,127 299,101 Realized gains 83,624 756,149 Unrealized gains (losses) 431,427 (909,671)Investment expenses (169,212) (193,466)

$ 913,567 $ 193,437

Deposit and loan fund – interest income $ 59,694 $ 70,820

Years EndedJune 30,

Investment returns include interest and dividends from money market accounts the Pastoral Center considers to be cash equivalents. See description of cash and cash equivalents in note 1. 6. Notes Receivable The Pastoral Center manages and is responsible for long‐term notes made to entities related to the Archdiocese. At June 30, 2014, the deposit and loan fund has net notes receivable due from parishes totaling $625,746 ($268,371 in 2013). The plant and operations fund has net notes receivable at June 30, 2014 due from other entities totaling $3,785,212 ($3,018,369 in 2013). The notes have various repayment terms and bear interest rates ranging up to 8.5%. As of June 30, 2014 and 2013, there was accrued interest included in interest receivable on these loans. As of June 30, 2014, notes receivable include a note and the related accrued interest from GSN for $3,072,362. This note also includes a transfer of $431,951 from both accounts and interest receivable related to prior insurance billings. The Pastoral Center has recorded a provision for uncollectible accounts in the allowance for doubtful accounts for the full amount of the GSN note.


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7. Land, Buildings, and Equipment Land, buildings, and equipment consist of the following:

2014 2013

Land and improvements $ 1,440,018 $ 1,440,018Buildings and leasehold improvements 8,776,237 8,408,411Equipment 793,498 785,743Construction in progress 2,620 75,527

11,012,373 10,709,699Less accumulated depreciation 6,674,135 6,377,763

$ 4,338,238 $ 4,331,936

June 30,

Depreciation expense for the year ended June 30, 2014 totaled $296,372 ($351,864 in 2013). 8. Deposits Payable The Pastoral Center maintains savings accounts for the Archdiocesan entities and pays interest semiannually. The balance of such deposits due to parishes and other Archdiocesan entities at June 30, 2014 totaled $1,753,185 ($2,259,776 in 2013). Deposits bear interest at rates ranging from 0.5% to 2.0% for parishes and entities and 1.2% for burse funds based on the time commitment. 9. Insurance The Archdiocese has established a self‐insured fund to pay for all property, liability, and workers’ compensation claims under $100,000 each claim. All property claims are at replacement cost coverage. Claims above the self‐insured retention of $100,000 are insured by outside commercial insurers. The Archdiocese’s Risk Management Office administers all claims under the self‐insured trust and the excess loss coverage. Health Insurance Benefits The Pastoral Center became self‐insured effective September 1, 2012 for health insurance benefits. The Pastoral Center provides healthcare benefits to active lay and priest employees through the self‐insured plan that includes medical and prescription drug benefits. Dental benefits are fully insured through an outside commercial insurer. The payment of claims associated with these benefits is handled by a third‐party administrator. The Pastoral Center is self‐insured for the first $150,000 of medical claims per person, and also fully insured for claims in excess of $150,000 up to a maximum annual aggregate stop‐loss payment amount of $1,000,000.


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Employee Death Benefit Effective July 1, 2014, the Pastoral Center became self‐insured for a death benefit for all permanent full‐time employees of the Archdiocese. The death benefit is $20,000 for eligible employees up to age 70 and $10,000 for employees 70 years and older. The death benefit discontinues at the time of termination, resignation, retirement, or with a status change from full‐time to part‐time. Archdiocesan priests, both active and retired, are eligible for this benefit. Administration of the benefit will be the responsibility of the Pastoral Center’s Office of Human Resources. As of June 30, 2014, a self‐insurance reserve of $4,950,460 has been made for the settlement of all incurred claims, which includes claims incurred, but not reported ($4,745,447 in 2013). The self‐insurance reserve is an estimate of the cost of claims incurred, but not settled. Reserve estimates for reported claims are primarily determined by the evaluation of individual reported claims by the plan administrators. Provisions for estimates for claims incurred, but not reported are based on prior experience. The methods for making such estimates and for establishing the resulting liabilities are periodically reviewed and updated. Any adjustments to these estimates are reflected in the statements of activities and changes in net assets when they become known. 10. Pension Plans The Archdiocese sponsors a defined contribution pension plan. The pension plan provides for 100% vesting after seven years of service. An employee is eligible to participate in the pension plan upon the completion of six months of service with a covered unit and obtaining a minimum salary equal to 1,000 hours times the minimum wage at January 1 of the given year. Contributions and cost are determined as 5% of each covered employee’s salary. The Archdiocese makes annual contributions to the pension plan equal to the amount accrued for pension expense. Total pension expense for the Pastoral Center for the year ended June 30, 2014 was approximately $269,000 ($255,000 in 2013). The Archdiocese has a noncontributory pension plan for priests. Funding for the plan is provided by the individual employers and such funding is not included in the accompanying financial statements. 11. Postretirement Benefits Plan The Archdiocese has a commitment to provide for postretirement healthcare and support benefits for certain infirm and retired Archdiocesan priests not covered under the priest pension and insurance plans. GAAP requires the accrual, during the years that the participant renders the necessary service, of the expected cost of providing those benefits to a participant, the employee’s beneficiaries, and covered dependents. The Pastoral Center has a policy to have an actuarial valuation of the plan performed on a biannual basis. The most recent valuation was performed in fiscal year 2013 based on fiscal year ended June 30, 2013 data. The 2014 data was based on a rollforward from the fiscal year 2013 financial data.


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The following (unaudited) table presents the plan’s status reconciled with amounts recognized in the Pastoral Center’s statements of financial position:

2014 2013

Accumulated postretirement benefits obligation:Active participants fully eligible for benefits $ 1,662,558 $ 1,519,167Active participants not fully eligible for benefits 2,850,704 2,250,175Retired participants 987,976 1,061,225

Postretirement benefits obligation $ 5,501,238 $ 4,830,567

Postretirement‐related change other than net periodicpension costs – unrecognized prior service gain $ (344,034) $ (344,034)

Net period postretirement benefits cost for components:Service cost for period – net of amortization $ 189,192 $ 251,302Interest cost on accumulated postretirement benefits 223,208 231,300

Unrecognized net (gain) loss – immediate recognition 409,904 (1,352,589)

Net period postretirement benefits cost $ 822,304 $ (869,987)

June 30,

A rollforward of the accrued postretirement benefit obligation is summarized as follows:

2014 2013

Balance at beginning of year $ 4,830,567 $ 5,877,780

Net periodic postretirement benefits cost 822,304 (869,987)Claims paid (151,633) (177,226)

Balance at end of year $ 5,501,238 $ 4,830,567

June 30,

For measurement purposes, a 7.4% annual rate increase in the per capita cost of covered benefits (e.g., healthcare cost trend rate) was assumed for 2013; the rate is assumed to decrease gradually to 5.0% by the year 2019 and remain at that level thereafter. The healthcare cost trend rate assumption has a significant effect on the amounts reported. For example, increasing the assumed healthcare cost trend rate by one percentage point in each year would increase the accumulated postretirement benefits obligation (“APBO”) by $961,472 as of June 30, 2014 ($758,892 in 2013) and the aggregate of the service and interest cost components of net periodic postretirement benefits cost by $92,000 for the year ended June 30, 2014 ($123,492 in 2013). A reduction in assumed healthcare cost trend rate by one percentage point in each year would decrease the APBO by $760,859 as of June 30, 2014 ($607,704 in 2013) and the


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aggregate of the service and interest cost components by $70,311 for the year ended June 30, 2014 ($92,410 in 2013). The weighted‐average discount rate used in determining the APBO at June 30, 2014 was 4.2% (4.7% in 2013). 12. Due to Others Amounts due to others are monies held for the benefit of other agencies and affiliates. Funds are noninterest‐bearing and without repayment terms. Due to others is as follows:

2014 2013

Casa de Padres $ 1,064,516 $ 1,029,725Custodian and operating agency accounts 348,307 469,585

$ 1,412,823 $ 1,499,310

June 30,

13. Net Assets The unrestricted designated net assets are as follows:

2014 2013

Plant and operations fund:Self‐insurance programs – including property and medical benefits $ 4,797,324 $ 4,792,309

Archbishop’s Appeal 8,314,558 7,389,712Archdiocese of San Antonio 4,734 4,734Hope for the Future 2,263,947 2,288,733OSM, Inc. 2,469,108 2,774,492Seton Home Endowment Fund, Inc. 199,880 183,536Catholic Television – deficit (282,051) (280,102)Catholic Youth Ministry Program ‐ 76,382Plant – net of payables 4,331,130 4,135,300

$ 22,098,630 $ 21,365,096

Deposit and loan fund $ 632,298 $ 573,295

June 30,

Temporarily restricted net assets consist of specific purpose grant contributions totaling $70,382 at June 30, 2014 ($102,253 in 2013).


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Permanently restricted net assets consist of the following:

2014 2013

Mary Jane Clark Endowment Fund $ 20,000 $ 20,000

June 30,

Donation to CCF In fiscal year 2013, the Pastoral Center donated approximately $18,300,000 to the CCF for the establishment of the Archbishop Jose H. Gomez Ministry Endowment Fund and the Hope for the Future Catholic School Endowment Fund. The donation included all assets of the Archdiocese Catholic School Endowment Fund, Inc., approximately $2,630,000; the Archdiocesan Designated Catholic Schools Endowment Fund, Inc., approximately $1,430,000; and the Archdiocese of San Antonio Endowment Fund, Inc., approximately $5,120,000. The Pastoral Center also donated approximately $9,100,000 from another fund for the establishment of the Archbishop Jose H. Gomez Ministry Endowment Fund, including the $18,088 from the Archdiocese of San Antonio Endowment Fund, Inc. These two endowment funds have a similar mission and purpose on the use of these funds. The purpose of the Archbishop Jose H. Gomez Ministry Endowment Fund is to make distributions to the Archbishop of San Antonio to support the religious and charitable activities within the geographical boundaries of the Archdiocese. Also, the purpose of the Hope for the Future Catholic School Endowment Fund is to make distributions to the Archdiocese to support Catholic school education within the geographical boundaries of the Archdiocese. 14. Net Assets Released From Restrictions Net assets were released from donor restrictions by incurring expenses satisfying restricted purposes or by the occurrence of other events specified by the donors. For the year ended June 30, 2014, $178,797 of net assets was released from restriction ($121,195 in 2013). 15. Endowment Funds Interpretation of Relevant Law for Donor‐Restricted Endowment Funds In July 2006, the Uniform Law Commission approved the Uniform Prudent Management of Institutional Funds Act of 2006 (“UPMIFA”) as a modernized version of the Uniform Management of Institutional Funds Act of 1972, the model act governing the investment and management of donor‐restricted endowment funds by not‐for‐profit organizations. Among its changes, UPMIFA prescribes new guidelines for expenditure of a donor‐restricted endowment fund, including Subsection 4(a), which states, “unless stated otherwise in the gift instrument, the assets in an endowment fund are donor‐restricted assets until appropriated for expenditure by the institution.”


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Management has interpreted the State Prudent Management of Institutional Funds Act (“SPMIFA”) as requiring the preservation of fair value of the original gift as of the gift date of the donor‐restricted endowment fund, absent explicit donor stipulations to the contrary. As a result, the Pastoral Center classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor‐restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the Pastoral Center in a manner consistent with the standard of prudence prescribed by SPMIFA. In accordance with SPMIFA, the Pastoral Center considers the following factors in making a determination to appropriate or accumulate donor‐restricted endowment funds:

The duration and preservation of the fund

The purposes of the organization and the donor‐restricted endowment fund

General economic conditions

The possible effect of inflation and deflation

The expected total return from income and the appreciation of investments

Other resources of the Pastoral Center

The investment policies of the Pastoral Center The endowment net assets composition by type is as follows:

Temporarily PermanentlyUnrestricted Restricted Restricted

June 30, 2014Donor‐restricted endowment funds $ ‐ $ ‐ $ 20,000Board‐designated endowment funds 199,880 ‐ ‐

$ 199,880 $ ‐ $ 20,000

June 30, 2013Donor‐restricted endowment funds $ ‐ $ ‐ $ 20,000Board‐designated endowment funds 183,536 ‐ ‐

$ 183,536 $ ‐ $ 20,000


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The unrestricted Board‐designated endowment funds consist of the following:

2014 2013

Seton Home Endowment Fund, Inc. $ 199,880 $ 183,536

June 30,

The Pastoral Center had the following changes in endowment net assets for the years ended June 30, 2014 and 2013:

Temporarily PermanentlyUnrestricted Restricted Restricted

Year Ended June 30, 2014Endowment net assets at beginning of year $ 183,536 $ ‐ $ 20,000

Investment return:Investment income, gains, andlosses – net 18,454 ‐ ‐

Amount appropriated for expenditures (2,110) ‐ ‐

Endowment net assets at end of year $ 199,880 $ ‐ $ 20,000

Year Ended June 30, 2013Endowment net assets at beginning of year $ 9,534,144 $ ‐ $ 38,088

Investment return:Investment income, gains, andlosses – net (155,947) ‐ ‐

Donation out (9,167,707) ‐ (18,088) Investment fees (21,460) ‐ ‐ Amount appropriated for expenditures (5,494) ‐ ‐

Endowment net assets at end of year $ 183,536 $ ‐ $ 20,000


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Descriptions of amounts classified as permanently restricted net assets and temporarily restricted net assets (endowment only) are as follows:

2014 2013

Permanently Restricted Net AssetsThe portion of perpetual endowment funds that is required to be retained permanently, either by explicit donor stipulation or by SPMIFA $ 20,000 $ 20,000

June 30,

Funds With Deficiencies From time to time, the fair value of assets associated with individual donor‐restricted funds may fall below the level that the donor or SPMIFA requires the Pastoral Center to retain as a fund of perpetual duration. There were no such deficiencies as of June 30, 2014 or 2013. Return Objectives and Risk Parameters The Pastoral Center endowment funds are managed by the CCF, and the Pastoral Center has adopted the CCF’s investment policies for the endowment assets, which attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of the endowment assets. Endowment assets include those assets of donor‐restricted funds that the Pastoral Center must hold in perpetuity or for a donor‐specified period(s), as well as Board‐designated funds. Under this policy, as approved by the Board, the endowment assets are invested in a manner that is intended to produce results which, when compared to the current market place, would be better than average performance for fund managers with similar styles primarily based upon three‐year rolling returns and net of (after) investment fees and expenses. The Pastoral Center expects its endowment funds, over time, to provide an average rate of return comparable to the benchmarks outlined in the investment policy. Actual returns in any given year may vary from these benchmarks. Strategies Employed for Achieving Objectives To satisfy its long‐term rate‐of‐return objectives, CCF diversifies its portfolio among a number of investments managers, within the feasibility of cost efficiency, to limit risk and maximize investment opportunities. The goal of CCF is to preserve and maintain the real purchasing power of the principal of portfolios by realizing a real total annual return of 500 basis points over inflationary expectations for equity funds, 100‐200 basis points over inflation expectations for fixed income fund dependent upon quality exposure. Spending Policy The Pastoral Center’s current practice is to approve the annual budget for appropriation of expenditures. A formal spending or disbursement policy has not been adopted. 16. Related Party Transactions For the years ended June 30, 2014 and 2013, the Pastoral Center recorded Archdiocesan assessments and the corresponding accounts receivable resulting from these transactions.


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All Archdiocesan agencies participate under the Archdiocesan insurance plans. For the years ended June 30, 2014 and 2013, the Pastoral Center recorded insurance premiums and insurance program expenses in the statements of activities and changes in net assets. Receivables from these transactions are included in accounts receivable at year‐end. The Archdiocese assesses its parishes an annual quota based on Sunday collections for the Archbishop’s Appeal. Amounts raised in excess of set goals are rebated to the parishes that exceed their goal. 17. Commitments – Unaudited The Archbishop of San Antonio is the signer and guarantor of loans incurred by parishes, schools, and agencies under his jurisdiction. At June 30, 2014, the total of such loans was approximately $44,828,000 ($53,872,000 in 2013). These loans are not recognized in the financial statements, as these are only contingent liabilities, as the Archbishop is only responsible if the parishes, schools, and agencies do not pay the obligations. 18. Contingencies The Archdiocese is involved in various claims and legal actions. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Pastoral Center’s financial position, changes in net assets, or liquidity. 19. Concentration of Credit Risk Cash balances are maintained by the Pastoral Center at several banks. Accounts at each institution are insured by the Federal Deposit Insurance Corporation up to a maximum of $250,000. The Pastoral Center held cash balances in excess of the $250,000 at various times during the year.

Supplementary Information

AUSTIN HOUSTON SAN ANTONIO 811 BARTON SPRINGS ROAD, SUITE 550 1980 POST OAK BOULEVARD, SUITE 1500 100 N.E. LOOP 410, SUITE 1100 TOLL FREE: 800 879 4966

AUSTIN, TEXAS 78704 HOUSTON, TEXAS 77056 SAN ANTONIO, TEXAS 78216 WEB: PADGETT‐CPA.COM

512 476 0717 800 879 4966 210 828 6281

Independent Auditor’s Report on Supplementary Information Most Reverend Gustavo Garica‐Siller, MSpS Archbishop of San Antonio Roman Catholic Archdiocese of San Antonio Pastoral Center San Antonio, Texas Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The supplementary information is presented for purposes of additional analysis and is 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 supplementary information has been subjected to the auditing procedures applied in the audits of the financial statements and certain additional procedures, including comparing and reconciling such supplementary 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 supplementary information is fairly stated in all material respects in relation to the financial statements taken as a whole.

San Antonio, Texas December 3, 2014

Roman Catholic Archdiocese of San Antonio Pastoral Center Schedule of Functional Expenses Year Ended June 30, 2014

See independent auditor’s report on supplementary information. Page 27

Clergy and Education San Old SpanishConsecrated and Formation Antonio Social Communication Auxiliary Archbishop’s Missions Supporting Total

Life Services Seminarians Services Services Services Appeal Care Services Services 2014

Advertising and promotion $ 2,234 $ 11,237 $ ‐ $ ‐ $ 1,867 $ 115,288 $ ‐ $ 3,603 $ 175 $ 134,404Benefits 35,340 208,061 335,054 ‐ 82,471 143,959 ‐ 11,614 203,192 1,019,691Cathedraticum ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 146,093 146,093Continuing education 112,436 8,162 401,795 ‐ ‐ 2,412 ‐ 1,648 1,410 527,863Copying, duplicating, and printing 847 1,634 725 ‐ 145,110 22,419 ‐ 4,311 73 175,119Depreciation expense ‐ ‐ ‐ ‐ 9,844 ‐ ‐ ‐ 286,528 296,372 Direct agency support and assessments 604,388 ‐ ‐ 475,784 ‐ 405,556 1,657,026 ‐ ‐ 3,142,754Dues and publications 777 8,889 575 ‐ 357 7,593 ‐ 1,512 1,070 20,773Gifts and donations 470 6,220 ‐ ‐ ‐ 2,235,738 ‐ 307,257 38,872 2,588,557Grants expense ‐ ‐ ‐ ‐ ‐ 42,920 ‐ ‐ ‐ 42,920Hospital expense and support – retired priests 145,705 12,280 33,146 ‐ ‐ 2,594 ‐ ‐ ‐ 193,725Hospitality 7,061 72,537 13,309 ‐ 1,136 11,332 ‐ 1,579 13,491 120,445Interest and other ‐ ‐ 49,500 ‐ ‐ ‐ ‐ ‐ ‐ 49,500 Office equipment maintenance and leases ‐ 807 ‐ ‐ 1,047 8,902 ‐ 572 99,986 111,314Office supplies and postage 3,379 12,855 353 ‐ 96,959 71,310 ‐ 4,456 176,428 365,740Professional, legal, and other fees 52,780 2,438 44,768 ‐ 12,891 72,837 ‐ 9,169 76,675 271,558Property tax ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 30,228 30,228Provision for allowance for doubtful accounts ‐ ‐ ‐ ‐ ‐ 3,352,805 226,134 (54,000) ‐ 3,524,939Rent – building 15,144 43,519 7,425 ‐ ‐ 32,768 ‐ 3,824 6,880 109,560Repairs and maintenance ‐ 5,634 ‐ ‐ 623 ‐ ‐ 565,494 101,318 673,069Resource materials and audio visual 881 120,493 24,337 ‐ 7,378 25,362 ‐ 272 9,043 187,766Salaries 224,664 1,403,233 5,037 ‐ 673,025 895,829 ‐ 60,485 1,661,529 4,923,802Special assessment ‐ ‐ ‐ ‐ ‐ 300,604 ‐ ‐ ‐ 300,604Stipends and contracted services 34,354 287,924 12,450 ‐ 27,120 229,606 ‐ ‐ 327,628 919,082Professional development 1,215 11,956 7,939 ‐ ‐ 19,543 ‐ ‐ 1,628 42,281Utilities 2,082 24,048 102 ‐ 3,874 15,275 ‐ 4,266 152,772 202,419Vehicle 12,431 64,869 9,404 ‐ 11,411 23,368 ‐ 4,362 28,285 154,130Workshop and banquets 120,723 39,543 16,925 ‐ 21,687 266,205 ‐ 3,465 6,950 475,498

Total 1,376,911 2,346,339 962,844 475,784 1,096,800 8,304,225 1,883,160 933,889 3,370,254 20,750,206

Other programs (including allowance for doubtful accounts):

Insurance programs ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 16,851,790 16,851,790Deposit and loan fund – deposit interest ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 27,897 27,897

$ 1,376,911 $ 2,346,339 $ 962,844 $ 475,784 $ 1,096,800 $ 8,304,225 $ 1,883,160 $ 933,889 $ 20,249,941 $ 37,629,893

Roman Catholic Archdiocese of San Antonio Pastoral Center Schedule of Functional Expenses Year Ended June 30, 2013

See independent auditor’s report on supplementary information. Page 28

Clergy and Education San Old SpanishConsecrated and Formation Antonio Social Communication Auxiliary Archbishop’s Missions Supporting Total

Life Services Seminarians Services Services Services Appeal Care Services Services 2013

Advertising and promotion $ 2,772 $ 20,617 $ ‐ $ ‐ $ 10,857 $ 185,462 $ ‐ $ 6,547 $ 756 $ 227,011

Benefits 26,789 148,147 189,114 36,550 81,957 121,629 ‐ 6,970 191,272 802,428Cathedraticum ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 250,721 250,721Continuing education 90,100 4,486 255,754 740 ‐ 2,118 ‐ 1,535 1,120 355,853Copying, duplicating, and printing 1,122 4,246 209 ‐ 154,986 19,585 ‐ 7,168 8,822 196,138Depreciation expense ‐ ‐ ‐ ‐ 7,533 ‐ ‐ ‐ 344,331 351,864 Direct agency support and assessments 574,914 ‐ ‐ 476,121 ‐ 406,000 1,482,988 ‐ ‐ 2,940,023Dues and publications 1,331 6,723 ‐ 592 418 5,692 ‐ 975 1,295 17,026Gifts and donations 1,652 4,066 ‐ 57 150 3,049,687 ‐ 504,013 190,710 3,750,335Grants expense ‐ 5,154 ‐ ‐ ‐ 30,314 ‐ ‐ ‐ 35,468Hospital expense and support – retired priests 204,808 ‐ 48,382 3,952 ‐ 2,118 ‐ ‐ ‐ 259,260Hospitality 7,985 54,234 4,755 3,446 1,057 15,506 ‐ 640 5,551 93,174Interest and other ‐ ‐ 34,250 ‐ ‐ ‐ ‐ ‐ ‐ 34,250 Office equipment maintenance and leases ‐ 1,430 ‐ ‐ 1,161 21,526 ‐ 618 93,757 118,492Office supplies and postage 6,768 10,526 (6) 1,291 104,881 60,149 ‐ 6,813 189,094 379,516Professional, legal, and other fees 29,930 4,253 9,234 ‐ 14,230 45,896 ‐ 22,393 76,485 202,421Property tax ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 34,895 34,895Provision for allowance for doubtful accounts ‐ 1,228 ‐ ‐ ‐ 425,956 249,428 48,668 ‐ 725,280Rent – building ‐ 62,711 4,185 ‐ ‐ 50,611 ‐ 6,593 4,750 128,850Repairs and maintenance ‐ ‐ ‐ 2,128 995 ‐ ‐ 1,345,227 120,493 1,468,843Resource materials and audio visual 631 110,959 14,278 5,028 11,658 12,129 ‐ ‐ 10,085 164,768Salaries 201,617 1,120,327 4,989 134,973 689,664 807,230 ‐ 58,804 1,580,715 4,598,319Special assessment ‐ ‐ ‐ ‐ ‐ 284,377 ‐ ‐ ‐ 284,377Stipends and contracted services 44,607 411,482 7,650 21,887 28,914 324,137 ‐ ‐ 267,431 1,106,108Professional development 6,906 10,767 8,720 1,044 1,985 4,537 ‐ ‐ 2,986 36,945Utilities 3,195 12,623 108 6,944 4,203 12,797 ‐ 6,208 170,327 216,405Vehicle 12,698 23,411 7,351 26,124 13,974 23,134 ‐ 7,258 24,568 138,518Workshop and banquets 112,355 150 16,642 1,725 10,818 224,054 ‐ 48,324 15,552 429,620

Total 1,330,180 2,017,540 605,615 722,602 1,139,441 6,134,644 1,732,416 2,078,754 3,585,716 19,346,908

Other programs (including allowance for doubtful accounts):

Insurance programs ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14,241,333 14,241,333Deposit and loan fund – deposit interest ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 154,571 154,571

Subtotal before Donation 1,330,180 2,017,540 605,615 722,602 1,139,441 6,134,644 1,732,416 2,078,754 17,981,620 33,742,812

Donation to Catholic Community Foundation ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 18,278,438 18,278,438

$ 1,330,180 $ 2,017,540 $ 605,615 $ 722,602 $ 1,139,441 $ 6,134,644 $ 1,732,416 $ 2,078,754 $ 36,260,058 $ 52,021,250

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