6
IN THE DIOCESE
June 19, 2018 | The Valley Catholic
Diocesan Financial Report
Dear Parishioners of the Diocese of San Jose,
In response to the blessings that come from all who
sacrifice your treasure for the work of the Church in
the Diocese of San Jose, we strive to be good stew-
ards of these funds. Transparency and constructive
feedback is important to a process of continuous
improvement. To this end, we have worked to make
the Diocesan financial report easier to understand
and accessible here in The Valley Catholic and on-line at
www.dsj.org/wp-content/uploads/2018/02/Diocese-
of-San-Jose-A-010-12-16-Final-Issuance-FS-2-2-18.pdf.
A simplified income statement and balance sheet
for the fiscal year ending June 30, 2017, can be found
on page 7. These financials have been independently
audited by Moss Adams and have received an un-
qualified opinion (clean audit).
The Diocese of San Jose presents its financial re-
sults on a consolidated basis that excludes parishes
and schools. The financials are reported as seven
separate funds, as well as in total. These funds rep-
resent six separate supporting structures and a fund
to track donor restricted donations (assets donors
assigned to a specific purpose), which predominantly
support the Operating Fund. The Operating Fund
is the “chancery” fund which includes the majority
of the central administrative staff who support the
Diocesan parishes and schools. The Service Fund
includes all insurance and payroll billing support
that is provided to all Diocesan entities. All “profit”
from this Fund goes to insurance reserves for the self-
insured portions of the Diocesan Insurance Program.
Other funds (Priest Retirement, Drexel, Cemetery and
Deposit and Loan) operate under the umbrella of the
chancery, but are completely separate from the main
Operating Fund of the chancery.
Overall, with the help of our generous donors,
the Central Administrative Offices (CAO) had one
of its most successful financial years in the history
of the Diocese. The CAO experienced a $9.8 million
operational gain for the year and, when taking into
account investment gains and calculated pension
improvements, the CAO had a net gain of $16.8 mil-
lion. The net of the operating and restricted fund was
a $4.6 million gain which was predominantly from
investment gains, the Priest Retirement fund had a
$1.9 million gain, the Service Fund put away $4.3 mil-
lion towards insurance reserves, the cemetery made
$4.8 million, Drexel received in excess of $3.3 million
of five-year