1	Catholic Community Foundation, Inc. Accountability Report and Archdiocesan Financial Update October 24, 2007
2	CCF Accountability Report June 30, 2007 CCF Cash and Investments exceed $161.2 million at June 30, 2007 compared to $135.0 million at June 30, 2006 Endowments distributed $6.4 million in 2007 to support parish, school, and agency ministries Over $8.5 million was contributed to new and existing endowments in 2007 The endowment balances earned an investment return of $25.3 million in 2007
3	CCF Accountability Report June 30, 2007 2006-2007 investment return was 18.1% Compares favorably with our policy benchmark of 17.9% Annual return since inception of the current investment structure on January 1, 1995 is 9.9% Manager Changes: Cramer Rosenthal McGlynn replaced J.L. Kaplan & Associates as a mid-cap value manager Added Seix Advisors to the fixed income portfolio Added Dividend Capital and Beacon Capital to the private real estate portfolio
4	Archdiocesan Financial Update 2006-2007 Actual Operating Results We achieved a $1,053,000 operational surplus on a total annual revenue budget of $39 million (2.7% margin) Compared to a 2006-2007 operational budget of $596,000 surplus and 2005-2006 actual operational results of $614,000 surplus 2007-2008 Budget We are targeting a break-even operational budget for the 2008 fiscal year and continue to identify additional operating savings through cost reduction and revenue generation ideas
5	Archdiocesan Financial Update – LFOM Campaign Progress Report Legacy for Our Mission Campaign – “Behind Every Gift is a Person of Faith” Goal $100 million 3 Keys: Compelling Case, Strong Leadership, and Quality of Implementation 26,527 Gifts to Date; 42 percent participation rate $87.5 Million Pledged to Date Leadership Gifts - $16 M toward $10M goal from identified audience Summer Bridge 2007 28 parishes participating; strong leadership, motivation and parish cases Benchmark $20M; Goal of $30M “Silent” phases underway with many public commitment weekends in November $11.4M pledged to date
6	Archdiocesan Financial Update – LFOM Campaign Progress Report LFOM Allocations through 6/30/07 include: Endowments Home Missions $1,000 Making a Difference (Financial Aid) 750 Priest Retirement 1,000 Catholic Charities capital 1,488 High School capital projects 1,454 Catholic Charities programming 744 Mother Theodore Catholic Academies Programming 515 Permanent Diaconate Formation 173 St. Mary’s Child Center 150 SS. Peter & Paul Cathedral capital 40 Total $7,314
7	Archdiocesan Financial Update – 2007 Analysis and Highlights Property Insurance Reserve Fund Surplus of $195,000 transferred to CCF endowment despite 2 large losses St. Anne, New Castle fire: loss exceeds $750,000 SIR St. Michael, Cannelton fire: $400,000 loss CCF “Property Insurance Reserve Fund” now exceeds $4 million based on surplus since FY 2004 Goal - $4.5 million or 1-1.5 times program cost Raised SIR from $750,000 to $1 million for 2007-2008 to reduce premiums Liability SIR remains at $250,000
8	Archdiocesan Financial Update – 2007 Analysis and Highlights Lay Health Insurance Plan Effective January 1, 2007: full replacement with a high deductible health plan with HSA accounts First six-months of calendar year experiencing a $1,531,000 surplus in the plan The net surplus (or deficit) from the lay health plan, the 403(b) plan, life insurance and disability insurance plan is deposited into (or withdrawn from) a CCF endowment established in September 2007 to help provide and improve lay employee benefits and maintain their affordability
9	Archdiocesan Financial Update – 2007 Analysis and Highlights Lay Retirement Plan Mercer actuarial study conducted during 2006-2007 Evaluated plan assumptions vs. actual plan experience Actual turnover much higher than assumed Mortality table was outdated Result: annual contribution was significantly higher than necessary; funds will be used to enhance cash balance plan and 403(b) match Employees will receive interest crediting at 4,6, and 8% of pay instead of 3,4 and 5% of pay in the cash balance plan Planned 403(b) improvements include automatic enrollment, default investment in lifestyle funds, 50% match up to 6% of pay
10	Archdiocesan Financial Update – Looking Forward Most significant challenges: Healthcare costs Escalating construction costs & property insurance replacement values School operating costs (including healthcare) that are increasing faster than our ability to increase tuition Stable but not increasing school enrollment Growing parish stewardship to meet operating needs and eliminating parish operating deficits Need to continue to generate annual operating surpluses to recover approximately $10 million of deficit spending from mid 1990’s through 2004
11	Archdiocesan Financial Update – Looking Forward Most significant strengths/opportunities: Continuing strong parish Sunday and Holy Day collections Continuing strong Called to Serve/United Catholic Appeal support Strong Legacy for Our Mission campaign results Growing CCF endowments to help mitigate rising operational costs Healthcare & Property Insurance
12	CCF Accountability Report / Archdiocesan Financial Update QUESTIONS?