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PARKERSBURG -- The Roman Catholic Diocese of Wheeling-Charleston incurred significant expenses over the investigation of a former bishop, according to an audit of fiscal 2019.
The audit released on Friday was the first time in the history of the diocese such a financial report was released.
The precedent-setting release was promised in July 2019 by Bishop William Lori, former apostolic administrator of the diocese who was appointed upon the forced retirement of Bishop Michael Bransfield over allegations of sexual harassment and improprieties and lavish spending.
"As we move past a tragic episode in the life of our diocese, we intend to conduct the affairs of our Church responsibly with the transparency that lay faithful, clergy and religious have a right to expect," a letter from Bishop Mark E. Brennan said.
About $1.488 million was spent on investigations, according to the audit.
"…the diocese incurred significant expenses owing to the investigation of retired Bishop Michael J. Bransfield's behavior and various legal issues facing the diocese during the past fiscal year," Brennan said. "Apart from the severe sanctions levied by the Holy See against the bishop, based on the report sent to Rome, the diocese has benefited from the recommendations of the report."
Changes included the creation of a dedicated fund for ministering to victims of sexual abuse, enhanced criminal background checks on clergy, religious and lay employees, sexual harassment training, a review and clarification of financial practices of the Diocesan Finance Office and its expansion and expansion of the Sexual Abuse Review Board, Brennan said.
"Those will be enduring benefits for our people," he said.
Among key points in the report is the value of the Diocese investments as of June 30, 2019, at $239 million, said Alex J. Nagem, the new chief financial officer for the Diocese. The report also listed $16.2 million a year in royalties from oil and gas deposits in Texas bequeathed a century ago to the Diocese.
"The initial impression for anyone looking at the $239 million value of investments and $16.2 million in royalty revenue for this past year is that the Diocese is able to solve all the financial problems of schools and parishes," he said. "Unfortunately that is not the case. Fully funding all schools (including tuition), parishes and charities would leave the Diocese financially insolvent in just a few years.
"There is no doubt that the Diocese has been blessed with these resources bequeathed to it over 100 years ago and which, in the present day, provide critical support for many schools, parishes and Catholic entities," Nagem said. "But we must be honest about our situation and begin positioning the Diocese for the future when revenue from gas and oil extraction will not be available."
The report by Clifton Larsen Allen LLP also showed spending was more than revenue for 2019 and 2018, $4.7 million and $918,000, respectively. The Diocese stock investment portfolio did not significantly increase with the stock market because the Diocese spends the market value increase on support of schools, parishes and other Church agencies and programs that are not self sustaining, Nagem said.
"When combined with the widely reported spending practices of the former bishop, the Diocese has been supporting its expenses primarily from its savings for many years, a practice which cannot continue," he said. "Diocesan expenses and requests for financial help from parishes and schools have only grown over the years. Deferred maintenance of buildings, the decrease in the number of parishioners and fewer students in our Catholic schools has resulted in a drain on Diocesan resources."
Jess Mancini can be reached at jmancini@newsandsentinel.com.