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	Archdiocese's Costs in Sexual Abuse Cases Drop Overall Finances Stable, Report Says By Peter Smith The Courier-Journal [Louisville KY] October 25, 2005 The Archdiocese of Louisville's costs associated with allegations of sexual abuse declined again in the past fiscal year and its overall finances have stabilized, according to an annual report issued by Roman Catholic Church officials. Last year's abuse-related expenses were $370,710, the smallest amount since the archdiocese paid $25.7 million in 2003 to settle 243 lawsuits. And the archdiocese announced that it had, for the third consecutive year, passed an audit showing it is complying with stricter policies on dealing with sexual abuse. The news comes in the archdiocese's accountability report, which includes various annual summaries of church activities and a financial audit of the fiscal year that ended this June. The abuse crisis started in 2002 when hundreds of allegations of sexual offenses emerged, along with evidence and testimony that the archdiocese had kept known abusers in ministry. In the fiscal year ended June 2003, the archdiocese spent $27.8 million in settlements and other costs. It spent $524,797 the next year. Of the $370,710 spent in the past fiscal year, the largest amount was $133,850 for legal fees. Most of that was for defending against lawsuits alleging sexual abuse at Catholic orphanages and schools, the audit said. Those lawsuits, which also name an order of Catholic nuns, are pending. The archdiocese spent $95,000 on settlements with victims in other cases in the past year, the audit says. Brian Reynolds, chancellor and chief administrative officer for the archdiocese, declined to identify the recipients. He said the settlements were with plaintiffs who filed lawsuits in 2003 but did not participate in that year's $25.7 million settlement. Other abuse-related expenses from 2004-05 were : $91,343 on accused priests, much of which went to their salaries or retirement benefits. Some have been dismissed from the priesthood since that fiscal year began, and one has died, so that expense is expected to decline. $30,083 for efforts toward education and prevention of sexual abuse. $19,338 for counseling fees for victims and survivors. $1,096 for miscellaneous costs, such as preparing reports about accused priests to the Vatican. Local victims' advocate Sue Archibald said she had mixed reactions to news from the audit. "I recognize that they've made a lot of progress and accomplishments in terms of prevention and addressing the cases that have been brought forward," said Archibald, president of The Healing Alliance, formerly known as The Linkup. "I feel they are still falling short in their outreach to survivors." Archibald said many victims have sought help at the alliance's retreat center in Pewee Valley, which has received funds from some dioceses and religious orders but not the Louisville Archdiocese. The archdiocese has said it has turned down virtually all grant requests because of tight finances. Michael Turner, a plaintiff in the lawsuits that began in 2002, said the archdiocese is making progress. "As for the support for the victims, I don't see enough of it, but I don't see it all anyway," he said, noting that the archdiocese at times provides counseling or other support confidentially. The archdiocese also reported that it passed a review in August by a private investigative firm confirming that it was complying with stricter policies on sexual abuse adopted by the U.S. Conference of Catholic Bishops in 2002, Reynolds said. The review looked at such issues as how the archdiocese handled allegations of sexual abuse, trained staff and volunteers, and set up "safe environments in parishes and schools," the annual report said. The financial audit, meanwhile, showed that revenue more than covered the $23.6 million operating budget for the archdiocese, which includes its headquarters and 21 agencies, the audit said. Reynolds said an improved stock market helped the archdiocese's investments in the past year, as did the sale of property. The archdiocese temporarily had required parishes to pick up the cost of some employee benefits, but it resumed paying those expenses last year. And it raised parish assessments from 5 percent to 7 percent of their revenue but has indefinitely postponed a plan that would have raised them to 8 percent, Reynolds said. Parishioners also met a goal of raising $3.3 million last year for the Catholic Services Appeal, an annual offering for archdiocesan expenses. The archdiocese, which laid off 20 percent of its employees in 2003, doesn't plan to fill those positions, Reynolds said.
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