PROVIDENCE — The Diocese of Providence finished the fiscal year ending June 30, 2024, in a sound financial position, with total diocesan assets up $19 million over the previous year, and a solid return on its investments.
“We had another very good year of investment returns in our portfolio, with a 13.8 percent return on assets,” an increase of $26 million over the previous fiscal year, for a total of $246 million, Chief Financial Officer Michael Sabatino said, crediting Investment Advisory chairperson Deb Imondi with doing an outstanding job with her oversight of diocesan investments.
The annual audit, performed by the accounting firm CBIZ CPAs P.C., for FY 2024 showed that overall diocesan assets increased to $325,648,475 from $306,460,978 in the previous fiscal year.
Sabatino said the majority of those assets do not belong to the diocese, rather, they are overseen by it while being owned by parishes, schools and agencies.
Total liabilities remained the same, at $105,367,202, compared to $105,027,050 the previous year.
The report showed positive results for the three main Diocesan Administrative Funds — which include both the General Fund and the annual Catholic Charity Appeal — and Cemetery Operations.
“I am very happy to report on the positive results we have achieved during this past fiscal year,” Msgr. Albert A. Kenney, diocesan administrator, said in a letter accompanying the report. “Sound financial stewardship is an essential element of diocesan administration.”
“We continue to rely on the guidance of the Holy Spirit and generous support that was received from so many faithful members of our diocese.”
The 2024 Catholic Charity Appeal surpassed its $7 million goal, raising $7,510,000.
The annual campaign provides critical support to numerous diocesan outreach ministries, such as Catholic Social Services, Health Care Ministries, and youth and evangelization programs.
“These generous donations allowed us to continue the vital mission to share the Gospel throughout our great state,” Msgr. Kenney said.
The Grateful for God’s Providence capital campaign, which raised $54 million — $4 million more than its goal of $50 million — has been completed, with pledges still being received.
The distributions from the campaign to areas supported by it have provided for a decrease in the need to draw on diocesan financial reserves, allowing those dollars to be used in other areas.
The Catholic Foundation of RI, a separate corporation of the diocese, reported another successful year, with its assets growing by more than $16 million, for a total of $158 million in endowments at the close of the fiscal year.
Sabatino said the diocese took its line of credit in-house last year to secure a more favorable interest rate and to pay interest to itself instead of a bank. That line currently sits at $1.9 million.
“We continue to pay that interest to ourselves, and we continue to make timely payments on other diocesan debts, especially related to the first lay employee pension plan buyout.”
He said that the diocese has made $670,000 in payments on that debt and anticipates paying off the remaining $9.4 million note over the next five to seven years.
Despite a decrease in Catholic burials, in favor of cremations, Sabatino reported that the Catholic Cemeteries Office recorded a modest surplus for the year, with revenues remaining steady while trimming some expenditures from the prior year.
Sabatino said that one area of concern remains the diocesan nursing homes.
“The quality of the homes is exceptional, but they are under financial stress,” he said. “Mainly because the Medicaid rates in the state of Rhode Island don’t even cover the cost of daily care.”
“The majority of our residents are Medicaid eligible and that paints a financial challenge for us. We are there to assist the poor, and we are continuing to work with state leaders on increasing reimbursements.”
He noted that there is some good news, however.
In October 2024, the state did increase its Medicaid reimbursement rates by 14.5 percent — the first significant increase in many years — and though the current rates still significantly underfund the full cost of patient care, it represents a move in the right direction to support nursing homes.
Sabatino credited Director of Operations, Office of Health Facilities Management, Diocese of Providence Laura Dos Santos with being a strong advocate and director for the three diocesan nursing homes in her portfolio: St. Antoine’s and the Villa at St. Antoine’s, in Smithfield, and St. Clare in Newport.
“We are so blessed to have her; she works tirelessly,” Sabatino said.
“Under her leadership we opened up a new assisted memory care unit at St. Antoine’s, which was sorely needed in the state.”
The 50 skilled-bed Primrose Lane Assisted Living Memory Unit at St. Antoine’s is at more than 60 percent capacity and has only been open for less than six months.
“We continue to work closely with Laura, her staff and advisory boards to bring financial stability to the homes,” Sabatino said.
“Overall, the diocese is in solid financial shape as we steward the assets entrusted to us by so many loyal Catholics throughout the state.”
