by Tom Gallagher
Investment expert Richard Grafer of Pathway Investments, LLC, in Port Washington, N.Y., has analyzed Rockville Centre, N.Y., diocese's financial statements and makes the following observation:
"As you can see, Diocesan free cash reserves remain at the very high level of $130 million. Approximately $80-96 million of these reserves are excessive based upon the maximum allowed per generally accepted industry standards. Despite the existence of these excess reserves, the DRVC has taken some actions in the past two years that appear to effectively cut services at a time when they are most needed."
In 2006, the diocese released a statement explaining why it has excess cash reserves. While dated, in its conclusion the diocese said:
As noted earlier, however, the diocese seeks to invest these funds to yield income supporting its mission and to make principal expenditures only when it best serves the balanced needs of all of the Catholic entities it supports. Without these funds, the diocese would have to cut back on levels of serves in almost every diocesan entity."
