Bishop Checchio reflects on 2020 Financial Report

Dear Brothers and Sisters in Christ,   
 

Each year, in preparing to release the financial report and statistics about the life of our diocese, I am reminded of the people I have met, particularly within the past year, but also throughout these past five years while serving as your bishop.   
 

As you know well from your own lives, the memories of this past year certainly look different. They are marked more by virtual events and gatherings on Zoom rather than in-person interactions and celebrations. While I am grateful for the technology that kept us connected, I must admit that I am thankful, too, to be back visiting our parishes and ministries. It always brings me great joy to witness the good work happening in our parishes, schools and Catholic institutions and meet the many people working to build up the Kingdom of God in our local Church of Metuchen. Gratefully, there are so many faithful in our diocese who continue to rise to this occasion every day, even when faced with difficulties like that of a global pandemic.   
 

When the extensive closures in our state were announced on March 16, 2020, the staff of Catholic Charities, Diocese of Metuchen never stopped services. In fact, their services increased as the overwhelming need became ever greater. Working with resilience, compassion, and creativity, they continued to operate in each of our four counties to respond to the growing needs of those hurting and in need of assistance. This pandemic has shown us more than ever the increasing need for the charitable presence of the Church.   
 

Partnering with Catholic Charities each month to tell their stories of encounter, accompaniment and mercy, “The Catholic Spirit,” our diocesan newspaper, pivoted to a monthly publication since distribution through our churches was not possible during the pandemic. They shared inspiring stories of faith in a unique way and with a local lens both in print and on their online version. The newspaper also features stories about our 90 parishes, many of which went to great lengths this past year to remain connected to their parishioners, ensuring they could continue finding comfort in the presence of the Eucharist and the other sacraments, even through an Act of Spiritual Communion when necessary. The newspaper also frequently highlights the 27 Catholic schools in our diocese, all of which were able to safely reopen their doors in the fall thanks to the tireless work of our Diocesan Catholic Schools Office and our administrators and teachers.   
 

Our Catholic school students have such a love for their schools and their teachers; they were happy to be back in their classrooms. Now, thanks to our special “adopt-a-seminarian” initiative, each school has “adopted” a seminarian whom they prayerfully support. Our Catholic school children have a great love for vocations and our seminarians — a gift for both our students and our men studying to become priests!
 

We have the most seminarians that we have had in over 25 years, which is a great blessing to us, but also a strain on our diocesan budget. As you know, any education can be quite expensive, but no matter the cost, it is truly a joy to witness their deepening friendships with Christ and to have them studying to serve the Church of Metuchen. They are a great sign of life and hope in our Church, and they are also a great inspiration for me personally. This group of men who responded “yes” to God’s call, give themselves fully to their human, intellectual, pastoral, and spiritual formation so that they are prepared to serve our diocese as your future priests. None of this would be possible without your generosity to our Bishop’s Annual Appeal and in so many other ways!   
 

Yes, we have many great laborers here in this vineyard of Metuchen, working to advance our mission. In order that we can continue to provide for the many spiritual, pastoral and service needs of those in our diocese, I take my responsibility to steward our financial gifts very seriously. I have written to you recently about the implementation of an anonymous reporting mechanism for concerns surrounding parish finances. In addition, we have created a new Parish Financial Services Office to assist our parishes with their own financial practices and compliance. Our Diocesan Finance Council, comprised of mostly lay members who are experts in finances, are a great aid to me, as is our diocesan staff. They have helped to make our operations sound, especially as a large number of institutions faced financial uncertainty this past year with the pandemic.
 

In the financial summary, you will notice that the pandemic has led to expected fluctuations in our own financials.  You will also see a decrease in net assets, presented on our Statement of Activity, resulting from the decrease in the discount rate, or interest rate, used to value the clergy retirement obligations. The decrease in this rate is reflective of the overall interest rate environment and increases and decreases over time. The decrease in net assets also reflects net unrealized losses in the investment portfolio as of June 30, 2020. These pension and investment valuation adjustments are “non-cash” changes but affected our bottom line for the year. The results from operations, excluding these non-cash adjustments, were positive.
 

While this report is only a snapshot, for so many people the effects of this past year — the emotional, physical, and financial impacts — could never be fully represented in a snapshot, but rather will forever be realized in our everyday lives. This pandemic has forever changed our world and the way we live, but I have no doubt that God is working through us. He is asking us to build up His Kingdom here in this diocese, which He has entrusted to us, and I know that you, the good people of our parishes, are doing just that. For that, you have my heartfelt thanks! Your generosity and the sacrifices you have made to make Christ known and loved in our world, and most importantly, your ongoing prayers, leave me feeling humbled and very blessed to be serving as your bishop in this beautiful Church of Metuchen.
 

Please know of my love and daily prayers for you, and I ask in your kindness that you remember me in your prayers, too. May our efforts always be pleasing to God and may we always give our best and all to Him. May His Kingdom come through our cooperation with His graces.   
 

With renewed best wishes, I remain   

Yours in Christ,       

Most Reverend James F. Checchio, JCD, MBA   

Bishop of Metuchen