From the deep roots of our story

to “Something New”

Finance

We, 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.

We 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

RevenuesRevenues, gains & other support 2008 2009 2010 2011

Compensation for Sisters’ services 7,571,739 7,452,206 7,669,833 7,681,417

Health & Retirement benefits 1,596,098 1,624,911 1,758,848 1,815,874

Social security benefits 1,659,461 1,747,562 1,787,344 1,812,375

Gifts 1,136,824 1,503,635 1,393,422 3,358,486

Dividends and Interest 245,588 136,745 38,887 28,941

IHM donated services 864,187 877,699 872,231 855,715

Donated Property 10,395 21,160 23,710 16,382

Religious institute services 208,117 221,223 203,377 180,972

Other revenues 1,827,211 1,641,197 2,219,081 1,429,114

Gain on disposal of property/equipment

13,604 100,215 7,260 30,347

Unrealized gain (loss) on investments

(73,577) (220,134) 47,455 959

Unrealized gain (loss) on swap contract

- (794,457) (238,603) 87,183

Total revenues, gains & other support

15,059,647 14,311,962 15,782,845 17,297,765

ExpensesExpenses 2008 2009 2010 2011

General & administrative 1,772,770 1,847,330 2,387,319 1,636,843

Religious formation 139,656 110,356 104,946 158,943

Care of retired – Our Lady of Peace 6,216,855 6,533,679 6,121,355 5,921,425

Personnel development & education

62,169 64,255 50,919 39,295

Health insurance, hospitalization & related expenses

1,676,813 2,248,159 1,798,843 1,431,638

Social security tax 146,536 134,028 124,389 93,403

Other general support 756,226 582,358 518,966 489,732

Religious institute operations 2,074,821 2,062,197 1,988,094 2,165,854

Local communities 3,758,800 3,873,800 3,669,473 3,625,240

Other Sisters’ services 422,097 331,556 344,451 334,837

Total expenses 17,026,743 17,787,718 17,108,755 15,897,210

Revenue/Expense Statement2008 2009 2010 2011

Total Revenues, gains & other support

15,059,647 14.311.962 15,782,845 17,297,765

Total Expenses 17,026,743 17,787,718 17,108,755 15,897,210

Gain (loss) revenues over expenses

(1,967,096) (3.475.756) (1,325,910) 1,400,555

Contributions to IHM Charitable Trust

(23,100) (19,800) (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 year 28,402,050 26,411,854 22,916,298 21,570,588

Net assets, ending 26,411,85 22,916,298 21,570,588 23,159,705

DONATIONS FROM TRUST

Principal payments on OLP loan 500,000

Donations from Trust for Care of retired Sisters

206,162 1,307,720

IHM CHARITABLE TRUST BALANCE 80,514,468 74,197,454 81,198,780 87,687,242

Revenue vs. Expenses

02,000,0004,000,0006,000,0008,000,000

10,000,00012,000,00014,000,00016,000,00018,000,000

2008 2009 2010 2011

Revenue

Expenses

Net Compensation

2008 2009 2010 2011

Compensation & Benefits

9,167,837 9,077,117 9,428,681 9,497,291

Less: Living & Ministry Expenses

4,180,897 4,205,356 4,013,924 3,960,077

Net Compensation & Benefits

4,986,940 4,871,761 5,414,757 5,537,214

Dividends & Interest

0

50,000

100,000

150,000

200,000

250,000

2008 2009 2010 2011

Dividends &Interest

Religious Institute Services

0

50,000

100,000

150,000

200,000

250,000

2008 2009 2010 2011

ReligiousInstituteServices

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

Other Revenues

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2008 2009 2010 2011

OtherRevenues

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 $365,017.18

DEC 2010 – Sweep $131,957.36

DEC 2011 – Sweep $124,198.36__________

TOTAL $621,172.90

CARE OF RETIRED SISTERS

2008 2009 2010 2011

Marian/OLP 6,216,855 6,533,679 6,121,355 5,921,425

IHM Center 862,060 828,064 692,444 695,966

Local Communities

202,214 180,160 179,625 196,313

TOTAL 7,281,129 7,541,903 6,993,424 6,813,704

Health Insurance, Hospitalization and Related Expenses

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2008 2009 2010 2011

Health CareCosts

Other General Support

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2008 2009 2010 2011

Other Support

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

Religious Institute Operations

1,850,000

1,900,000

1,950,000

2,000,000

2,050,000

2,100,000

2,150,000

2,200,000

2008 2009 2010 2011

Religious Inst.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 – 2011Base Amount per Sister

2008 $470 – 500

2009 $500 – 550

2010 $500 – 550

2011 $525 – 575

Local Community Budgets 2011# of Sisters

Living in Household

# of Houses

Total # of Sisters

Total Cost Avg Cost/Sister

1 79 79 1,284,295.96 16,256.91

2 16 32 445,082.00 13,908.81

3 12 36 360,764.96 10,021.25

4 6 24 212,861.88 8,869.25

5 4 20 208,515.20 10,425.76

6 4 24 288,120.00 12,005.00

7 3 21 202,397.04 9,637.95

9 2 18 236,700.00 13,150.00

11 1 11 101,732.76 9,248.43

TOTAL 265 3,340,469.80 12,605.55

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 ExpensesFY 2010-2011

Household $1,426,043.32Personal $921,097.07Employee Salaries $145,347.90Religious/Charity $66,806.84Professional $35,726.18Car $177,101.24Other-Excess Funds, etc, $262,743.54

Total $3,034,866.09(does not include housing & auto insurance paid

directly by Congregation)

Rent/Lodging Paid from Local BudgetsFY 2011-2012

Average Rent by StateDC $935

Delaware $513Florida $1500

Kentucky $430Massachusetts $1800

Maryland $635Michigan $830

New Jersey $507New Mexico $570

New York $591Pennsylvania $500

Rent/Lodging Paid from Local BudgetsFY 2011-2012 (Continued)

Average Rent Within PAScranton, Dunmore, Carbondale $465

Wilkes Barre Area $451Pittsburgh, Altoona $523

Williamsport, Danville, Steeleton $354Southeastern 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 principalloan balance $ 4,000,000From Trust 1,500,000From Weinberg Grant 1,000,000From Building Fund 1,500,000

Debt Summary:Total Principal Paid as of April 3, 2016 11,500,000.00Total Principal Due on April 3, 2016 3,500,000.00Total Estimated Interest Paid as of April 3, 2016 4,340,857.52Total Principal and Interest paid as of April 3, 2016 19,340,857.52

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 PROGRAM25 Sisters enrolled5 other Sisters potentially eligibleElimination of out of pocket expenses for: medical care, dental,

hearing aids, ophthalmology, medical/surgical supplies, transportation & food supplements

IncomeRental fee for use of facilityContribution toward capital expenseDietary & other ancillary services

IHM Congregation Charitable Trust

20012001 $53,792,839 2007 $85,635,720

2002 $53,884,686 2008 $80,514,468

2003 $58,398,252 2009 $74,197,454

2004 $64,547,537 2010 $81,198,780

2005 $72,171,042 2011 $87,687,242

2006 $77,951,774 2012 $90,309,086

IHM Congregation Charitable Trust Trustees

Sr. Ellen Carney Mr. Bob Gordon

Sr. Ann Monica Bubser Sr. Michel Keenan

Mr. John H. Graham Mrs. Debbie Worlinsky

Sr. Theresa Jordan

National Religious Retirement Office (NRRO) Unfunded Past Service Liability

Total Past Service Liability $138,979,923.39

- Less Currently Designated Retirement Assets - 80,789,774.00

Unfunded Past Service Liability $58,190,149.39

Percent of Retirement Fund Unfunded 41.87%

NRRO Grants 1988 - 2011

Basic $4,681,019.00

Supplemental $0

Special Assistance $ 15,000.00

SING $ 1,843.00___________

Total $4,697,862.00

Grants from Church-Sponsored Retirement Programs

FY 2010-2011 FY 2009-2010

National Retirement Fund for Religious (NRRO)

$224,684 $221,520

Brooklyn & Rockville Center $18,398 $21,038Archdiocese of New York $4,490 $8,762

Philadelphia-Harrisburg-Allentown

$975 $1,066

Syracuse $35,681 $60,609Totals $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

2007 17 $224,957

2008 11 $172,994

2009 6 $ 80,948

2010 8 $180,472

2011 19 $334,510

2012 20 $322,413

Vehicle Disposals2007 8

2008 12

2009 9

2010 9

2011 21

2012 20

Driving Assessment CommitteeSr. Mary Kay Faliskie Sr. Susan BrownSr. St. Monica Costello Debbie 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

5-12-10 to 4-27-11 4-20-11 to 4-29-12

Incidents with Congregation’s driver at fault 13.5 20.7

Incidents with other party at fault 15.5 14.3

Incidents with unknown party at fault 5.0 0

Vehicles that were vandalized 1.0 2.0

Total Vehicle Incidents 35 37

Sisters in multiple incidents 3 3

Incidents involving non-IHM Sisters 2 0

Cars totaled 4 4

Vehicle Incident Report (continued)

5-12-10 to 4-27-11 4-20-11 to 4-29-12

Total cost of repairs $36,903.87 $39,144.86

Payments from Congregation insurance for repairs $25,462.88 $42,280.40

Payments from other insurance companies $5,724.11 $4,417.53

Total Payments Received $31,186.99 $46,697.93

Total Payments by Congregation $5,716.88 ($7,553.07)

Theresa’s TreasureCommittee Members

Sr. Ellen Carney Sr. Elizabeth PearsonSr. Mary Ellen Higgins Sr. Grace Elizabeth SurdovelSr. Eleanor Mary Marconi

Purpose: To lend financial support to women’s causes by encouraging individual sisters, local communities andothers to contribute to Congregational funds that willeither 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 2000-2001 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 OfficeBusiness Manager Debbie WorlinskyOffice Manager Jackie RocheAccountant Laura BondyAccountant Jeanne HillAccounting Asst. Sr. Theresa FitzgeraldAccounting Asst. Paula ThompsonAccounting Asst. Mary Lou VandorickClerk Sr. Geraldine DranginisReceptionist Sr. Judy ZieglerSecretary Sara 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 ChallengesDecreasing 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?