Chapter Report, May 20
A look at the congregational finances
After reviewing and approving the minutes, the chapter turned its attention to the General Treasurer's Report, presented by Fr. Aquilino Mielgo Domínguez, the general treasurer.
Fr. Aquilino began by noting that the report is a snapshot in time and that the financial picture of the congregation isn't simply the result of decisions made during the past six years, but of decisions made throughout the history of the Priests of the Sacred Heart. To gain a better understanding of today's situation, Fr. Aquilino revisited the chapter of 1973. This is a time which saw the congregation sitting upon a solid economic base. There was good apostolic and economic development. The general administration had significant equity to provide for its operations; it owned land in Rome and Switzerland and had strong investments.
Slowly, the financial picture of the General Curia changed. The number of benefactors decreased (though not in all areas of the congregation). In 1987, the stock market crashed. And at the same time that income was declining, the General Curia was receiving increased financial requests for assistance throughout the congregation. In response to the growing needs of the General Curia, land was sold to help build needed capital.
At the 1991 General Chapter, Fr. Pigozzi, the then general treasurer, noted that one of the most significant financial decisions of the congregation was the decision "to stay in this house, for this will result in an expensive restructuring process." His words were prophetic. Several years later, a significant portion of the General Curia's remaining properties were sold to pay for the remodeling of the Generalate and the development of Villa Aurelia.
In 2009, the General Curia's real estate assets are limited to the buildings that house the Generalate (including the International College and General Curia) and Villa Aurelia, and the land upon which they sit.
The operational expenses of the General Curia have been met through interest generated by investments. However, with the economic downtown that began in 2008, the value of those investments has plummeted, and thus the income from them.
With direction from discussions that took place at the 2003 General Chapter, the general administration developed an economic policy which was reviewed and approved by the General Finance Commission. The policy focused on the importance of 1) a mutual sharing of the financial burdens of the congregation, 2) the need for effective financial planning (in particular, three-year plans for each SCJ entity), 3) the promotion of financial autonomy, 4) the formation of treasurers, and 5) the need for a reserve fund.
Throughout his presentation, Fr. Aquilino stressed the need to build financial transparency and solidarity, not just as a means of supporting the works of the congregation but as a part of the call of religious life. He asked that both individual religious and communities move away from individualism and focus on living in communion. ""The administration of goods is not an abstract concept but an integral part of religious life," he said.
"I would like to make an important observation in this regard," continued Fr. Aquilino. "We are lacking a lot of data. Every year provinces are asked to send their financial report, which should show the aid received and money contributed to other provinces. Unfortunately, few do this."
Fr. Aquilino spoke of the 1% proposal, asking that each province, regardless of its assets, contribute 1% of its income. So far, only a minority of provinces have followed this proposal. There are certainly various reasons for this, but it is a significant factor in the lack of a stable source of income for the General Curia.
Also, very few entities have developed three-year plans. Such plans are vital in preparing for the future of the congregation.
Fr. Aquilino spoke of the operation of the General Treasurer's Office, noting that Aldo Ivaldi, an accountant, now works with the office, as does Fr. Vagner, the local treasurer. Fr. Vagner often serves as a back-up to the general treasurer when Fr. Aquilino is away from the office.
Reviewing the financial documents of the General Curia, Fr. Aquilino noted that even though the numbers are higher, the General Curia is "10% poorer than it was ten years ago." If the General Curia ceased to receive income it could only fund its budget for a year.
Before completing his report, Fr. Aquilino spoke of Villa Aurelia, the hotel and conference center on the Generalate property. He believes that once the loan for it is paid off, Villa Aurelia will bring in income for the General Curia. It is a well-used property, hosting a variety of conferences, including those of bishops, cardinals and a variety of church entities. Room occupancy is down slightly since the economic downturn, but much less so than nearby hotels.
Looking at the future
Fr. Aquilino emphasized that the congregation cannot turn a blind eye to the future, hoping that with time the financial picture will improve. "From crisis can come great strategies," he said. "We can see this as an opportunity to generate new life." He reminded delegates that this is not the first crisis that the congregation has encountered. There was the financial crash of 1929, and the many difficulties of post-war Europe. "But these crises were temporary and we not only endured but flourished as a congregation."
Report of the Economic Committee
The Economic Committee for the chapter included Fr. Giacomo Cesano (IS), Br. Jorge Torres (CH) and Dr. José Gutiérrez. Dr. Gutiérrez, an economist well-versed in the financial issues of religious communities, spoke for the committee and presented its Financial Report of the Entities.
Dr. Gutiérrez first noted that their report is based only on the information that they received. "You are responsible for the figures in this report, not the committee," he said. "It is based on the data you have given us."
One of the difficulties in analyzing the reports was that there were significant differences in their formats. One of the things that the committee strongly recommends is a universal financial report format. Ideally, it would be good for the congregation to have reports that could be easily uploaded (via the internet) to the General Curia. Other organizations do this; there is no reason why the SCJs couldn't as well.
The committee analyzed the various entities and noted that 45% appeared to be financially dependent, 48% are autonomous and in the case of 7%, it was difficult to determine. Several entities in this last group are beginning to move toward financial independence. He noted that some entities, though they think themselves not to be autonomous, are able to be independent in their general activities. These entities may need assistance for extraordinary projects, but they are able to manage themselves with general expenses.
Only eight of the provinces generate excess funds that can be shared with the rest of the congregation. This financial base needs to be broadened, especially in light of the fact that the populations of these eight are aging and diminishing. "The congregation can't depend upon them as a resource for an unlimited period of time," said Dr. Gutiérrez.
When one looks at the books, it may appear that the Priests of the Sacred Heart have quite a bit of money but Dr. Gutiérrez said that really isn't the case. The SCJs are not poor, but they are not rich either. Although the congregation lost money in the recent economic downturn (as did most organizations), looking back on recent years its assets have been well managed. But again, the congregation has a small base upon which its entirety financially rests.
Solidarity is a significant issue for SCJs. To have full financial solidarity there must be good financial reporting. Annual statements must have accompanying memos to clarify income and expenditures. There must also be long-range planning. All organizations need to have, at minimum, a yearly budget. The committee also echoed Fr. Aquilino's call for better formation of treasurers.
And, the congregation needs to work together to build financial autonomy in its various entities. Those areas that have knowledge regarding fund raising and other financial tools need to share them with younger entities that are not yet autonomous. Each entity has a different path to financial autonomy but it is important that the congregation as a whole walk the path together.
Province Reports
Also included in the day were reports from the provinces of South Africa and Congo. Each highlighted its ministries and strengths, as well as challenges for the future.
In South Africa, key challenges are vocations, financial autonomy, and renewing a sense of community life among men who often live alone because of the distance of their parishes. In the wider community, SCJs of South Africa are challenged to address the needs of those living with HIV/AIDS and other social challenges.
There are significant challenges in South Africa, but Fr. Zolile Mpambani, speaking for his province, noted that there is much for which to be hopeful. "Although we are diminishing in numbers, still there is a sense of continuity and a little but gradual growth of the province in some areas," he said. In particular, the province is especially hopeful about its international formation house in Pietermaritzburg.
Fr. Wilson Hobold, speaking for Congo, talked about the many works of his province. There are nine parishes, though several do not have a full-time priest. Congo also maintains a number of significant social ministries, including schools for the handicapped and street children, as well as ministry to the prison in Kisangani. And in Congo, prison ministry doesn't simply mean pastoral work, but feeding the prisoners as well. Prisoners are not guaranteed food when imprisoned. It is often up to families and others to see to the nutritional needs of prisoners. Fr. Hobold said that the province tries to provide a meal for the prisoners every other day. Financial constraints prevent them from giving them daily meals.
Congo is now becoming much more a province of the Congolese. For years, it was foreign missionaries welcoming Congolese to the community. Now, it is the Congolese who are welcoming the foreign missionaries. Recently, the province has had communities in which there are only indigenous SCJs.
"The future in Congo, as in all of Africa, is in Congo," said Fr. Hobold. "Formation is our priority to build for a strong future."
*****
NOTE: The majority of photos taken at the General Chapter will be posted at the congregational website, http://www.dehon.it.
I'll be posting some of the photos I take at http://www.scjusa.smugmug.com To see them, click on the first gallery, or go directly to: http://scjusa.smugmug.com/gallery/8259359_fwcwx#540413616_85pae
Mary Gorski
