From the deep roots of our story to “Something New” Finance

W e, Sisters, Servants of the Immaculate Heart of Mary, rooted in God and in the Gospel, stand together and courageously commit ourselves to enter into the joys, hopes, griefs, and anxieties of the people of this world. W e choose to be transformed by these questions: How do the choices I make today/we make today affect persons who are in need in our time? What choices must we make as we live out our commitment to God and God’s people?

Finance Committee Sr. Ann Monica Bubser Sr. Jean Coughlin Sr. Janet Jeffers Sr. Theresa Jordan Sr. Kathleen Lunsmann Sr. Mary Helen Slavinskas Debbie Worlinsky

Revenues Revenues, gains & other support Compensation for Sisters’ services7,571,7397,452,2067,669,8337,681,417 Health & Retirement benefits1,596,0981,624,9111,758,8481,815,874 Social security benefits1,659,4611,747,5621,787,3441,812,375 Gifts1,136,8241,503,6351,393,4223,358,486 Dividends and Interest245,588136,74538,88728,941 IHM donated services864,187877,699872,231855,715 Donated Property10,39521,16023,71016,382 Religious institute services208,117221,223203,377180,972 Other revenues1,827,2111,641,1972,219,0811,429,114 Gain on disposal of property/equipment 13,604100,2157,26030,347 Unrealized gain (loss) on investments (73,577)(220,134)47, Unrealized gain (loss) on swap contract -(794,457)(238,603)87,183 Total revenues, gains & other support 15,059,64714,311,96215,782,84517,297,765

Expenses General & administrative1,772,7701,847,3302,387,3191,636,843 Religious formation139,656110,356104,946158,943 Care of retired – Our Lady of Peace6,216,8556,533,6796,121,3555,921,425 Personnel development & education 62,16964,25550,91939,295 Health insurance, hospitalization & related expenses 1,676,8132,248,1591,798,8431,431,638 Social security tax146,536134,028124,38993,403 Other general support756,226582,358518,966489,732 Religious institute operations2,074,8212,062,1971,988,0942,165,854 Local communities3,758,8003,873,8003,669,4733,625,240 Other Sisters’ services422,097331,556344,451334,837 Total expenses17,026,74317,787,71817,108,75515,897,210

Revenue/Expense Statement Total Revenues, gains & other support 15,059, ,782,84517,297,765 Total Expenses17,026,74317,787,71817,108,75515,897,210 Gain (loss) revenues over expenses (1,967,096)( )(1,325,910)1,400,555 Contributions to IHM Charitable Trust (23,100)(19,800) (17,600) Increase/decrease in net assets(1,990,196)(3,495,556)(1,345,710)1,382,955 Net assets, beginning of year28,402,05026,411,85422,916,29821,570,588 Net assets, ending26,411,8522,916,29821,570,58823,159,705 DONATIONS FROM TRUST Principal payments on OLP loan500,000 Donations from Trust for Care of retired Sisters 206,1621,307,720 IHM CHARITABLE TRUST BALANCE80,514,46874,197,45481,198,78087,687,242

Revenue vs. Expenses

Net Compensation Compensation & Benefits 9,167,8379,077,1179,428,6819,497,291 Less: Living & Ministry Expenses 4,180,8974,205,3564,013,9243,960,077 Net Compensation & Benefits 4,986,9404,871,7615,414,7575,537,214

Dividends & Interest

Religious Institute Services Bistro, beauty salon, ESL, group retreats, Heartworks, hermitages, IHM days, Photos by Jan, reflection guides, spiritual renewal center, workshops

Other Revenues Local community excess funds, food service-Geisinger, housekeeping-Geisinger, medical insurance claims, OLP resident support, property insurance claims, rent-Geisinger & MCH, rent rebates, legal settlements, vacation houses, TMCC

EXCESS FUNDS 2008 – 2010$365, DEC 2010 – Sweep$131, DEC 2011 – Sweep$124, __________ TOTAL$621,172.90

CARE OF RETIRED SISTERS Marian/OLP6,216,8556,533,6796,121,3555,921,425 IHM Center862,060828,064692,444695,966 Local Communities 202,214180,160179,625196,313 TOTAL7,281,1297,541,9036,993,4246,813,704

Health Insurance, Hospitalization and Related Expenses

Other General Support Burial, departure, family ministry, foreign sisters support, legal/professional fees, vacation house rental payments

Religious Institute Operations IHM Center, all property owned by Cong., except OLP, Justice & Peace, Associate Program, EEI, Heartworks, Bistro, Beauty Salon, LIFE, Photos by Jan, IHM on-line, Foreign Missions

House Budgets 2008 – 2011 Base Amount per Sister 2008$470 – $500 – $500 – $525 – 575

Local Community Budgets 2011 # of Sisters Living in Household # of Houses Total # of Sisters Total CostAvg Cost/Sister 179 1,284, , , , , , , , , , , , , , , , , , TOTAL2653,340, , Total does not include sisters residing at the IHM Center, Our Lady of Peace Residence, in Peru, on Family Ministry or Sabbatical

Actual Members Living Expenses FY Household$1,426, Personal$921, Employee Salaries$145, Religious/Charity$66, Professional$35, Car$177, Other-Excess Funds, etc,$262, Total$3,034, (does not include housing & auto insurance paid directly by Congregation)

Rent/Lodging Paid from Local Budgets FY Average Rent by State DC$935 Delaware$513 Florida$1500 Kentucky$430 Massachusetts$1800 Maryland$635 Michigan$830 New Jersey$507 New Mexico$570 New York$591 Pennsylvania$500

Rent/Lodging Paid from Local Budgets FY (Continued) Average Rent Within PA Scranton, Dunmore, Carbondale$465 Wilkes Barre Area$451 Pittsburgh, Altoona$523 Williamsport, Danville, Steeleton$354 Southeastern PA$696 Average Rent per Sister – All States$482.92

Our Lady of Peace Loan Summary May 31, 2012 Total Loan$15,000,000 Loan Balance 5/31/12$ 6,437,500 Additional payments made on principal loan balance$ 4,000,000 From Trust1,500,000 From Weinberg Grant1,000,000 From Building Fund1,500,000 Debt Summary: Total Principal Paid as of April 3, ,500, Total Principal Due on April 3, ,500, Total Estimated Interest Paid as of April 3, ,340, Total Principal and Interest paid as of April 3, ,340, NOTE: On April 3, 2016 a final payment of $3.5M will be due to AIB. The Charitable Trust has invested $3.5M in Laddered Treasury Bonds for this purpose.

LIFE (Living Independently For Elderly) Program  LIFE PROGRAM  25 Sisters enrolled  5 other Sisters potentially eligible  Elimination of out of pocket expenses for: medical care, dental, hearing aids, ophthalmology, medical/surgical supplies, transportation & food supplements  Income  Rental fee for use of facility  Contribution toward capital expense  Dietary & other ancillary services

IHM Congregation Charitable Trust 2001$53,792, $85,635, $53,884, $80,514, $58,398, $74,197, $64,547, $81,198, $72,171, $87,687, $77,951, $90,309,086

IHM Congregation Charitable Trust Trustees Sr. Ellen CarneyMr. Bob Gordon Sr. Ann Monica BubserSr. Michel Keenan Mr. John H. GrahamMrs. Debbie Worlinsky Sr. Theresa Jordan

National Religious Retirement Office (NRRO) Unfunded Past Service Liability Total Past Service Liability$138,979, Less Currently Designated Retirement Assets - 80,789, Unfunded Past Service Liability $58,190, Percent of Retirement Fund Unfunded41.87%

NRRO Grants Basic$4,681, Supplemental$0 Special Assistance$ 15, SING$ 1, ___________ Total$4,697,862.00

Grants from Church-Sponsored Retirement Programs FY FY National Retirement Fund for Religious (NRRO) $224,684$221,520 Brooklyn & Rockville Center$18,398$21,038 Archdiocese of New York$4,490$8,762 Philadelphia-Harrisburg- Allentown $975$1,066 Syracuse$35,681$60,609 Totals$284,228$312,995 NRRO deducts the amounts received from Diocesan Programs from their grants

Vehicle Information Congregation Fleet Vehicles = 204 The Congregation adds/replaces an average of 14 vehicles each year We should replace 10% of the fleet (20 cars) per year

Vehicle Purchases/Donated $224, $172, $ 80, $180, $334, $322,413

Vehicle Disposals

Driving Assessment Committee Sr. Mary Kay FaliskieSr. Susan Brown Sr. St. Monica CostelloDebbie Worlinsky The purpose of the Driving Assessment Committee is to assist drivers by providing ongoing driver education, reviewing driving records, and making specific recommendations to the Leadership Team with regard to individual drivers. The Leadership Team and the Driving Assessment Committee have revised our Driving Policy. The main change from the original policy is that at age 75 and every 3 years thereafter, each sister driver with a valid drivers license will be required to take a “behind the wheel” driver test with a qualified state licensed driving instructor and submit the certificate to the Temporal Resources Office. The policy will be sent out in August and will be effective as of January 1, 2013.

Vehicle Incident Report to to Incidents with Congregation’s driver at fault Incidents with other party at fault Incidents with unknown party at fault5.00 Vehicles that were vandalized Total Vehicle Incidents3537 Sisters in multiple incidents33 Incidents involving non-IHM Sisters20 Cars totaled44

Vehicle Incident Report (continued) to to Total cost of repairs$36,903.87$39, Payments from Congregation insurance for repairs $25,462.88$42, Payments from other insurance companies $5,724.11$4, Total Payments Received$31,186.99$46, Total Payments by Congregation $5,716.88($7,553.07)

Theresa’s Treasure Committee Members Sr. Ellen CarneySr. Elizabeth Pearson Sr. Mary Ellen HigginsSr. Grace Elizabeth Surdovel Sr. Eleanor Mary Marconi Purpose: To lend financial support to women’s causes by encouraging individual sisters, local communities and others to contribute to Congregational funds that will either provide seed money for women’s projects, or help to proclaim God’s unconditional love for all as we channel our energies to foster respect for diversity. (Chapter 1994 and 2002) Since fiscal year the Development Office has received donations of $29,884 for Theresa’s Treasure. The committee has approved requests totaling $36,681. Congregation funds supplement the difference.

Business Office Business ManagerDebbie Worlinsky Office ManagerJackie Roche AccountantLaura Bondy AccountantJeanne Hill Accounting Asst.Sr. Theresa Fitzgerald Accounting Asst.Paula Thompson Accounting Asst.Mary Lou Vandorick ClerkSr. Geraldine Dranginis ReceptionistSr. Judy Ziegler SecretarySara Thomas

Our Financial Strengths  Trust in Divine Providence  Focus on Mission  Responsible stewardship  Development efforts which allow others to participate in and sustain our ministries  Continued efforts to reduce expenses  Sisters’ efforts to “negotiate” compensation packages  The Charitable Trust

Financial Challenges Decreasing Revenue  Sisters Compensation  Decline in number of sisters who are able to be compensated for their ministries  Stipend & salary freezes or minimal increases  Financial problems of parishes, schools and other employers  Employers changing ministries from full time stipend to part-time stipend  Difficulty in obtaining part time ministries  Effect of economic conditions on ability of donors to give  Bequests to Congregation are unpredictable

Financial Challenges (continued) Increasing Expenses  Local living expenses  Employee salaries & benefits  Health insurance, medical & hospitalization bills  Insurance, utilities, fuel, gasoline  Cars  Buildings & properties

To What Are We Being Called? To evaluate how each decision affects persons who are in need. To evaluate each decision in light of the common good. To commit ourselves to common good and responsible use of our human and temporal resources. To understand and own our financial reality – what is each of us willing to do so we are able to continue to minister to God’s people, care for our retired and active members and provide for future needs. Since we are in and will continue to be in a time of diminishing financial resources (decreasing revenue and increasing expenses), what can we do to decrease expenses?

Questions to Ponder How does this information impact my life/our lives? What more can I/we do to ensure a financially secure future for our ministries and our Sisters?