First, it cost the MCCS a pretty penny to do away with 13 of its schools. According to the auditors' report,
During fiscal 2008, the Bishop's Task Force on Schools recommended the closure of 13 schools effective July 1, 2008. In connection with this plan of closures, MCCS wrote-off assets with an original cost of $7,562,695 and a net book value of $2,006,948 related to the school closures. MCCS also accrued $975,000 of unemployment costs, $137,453 of health insurance costs and $100,000 of other costs in connection with the school closures.
Second, the MCCS had some pretty lucrative financial investments going for it during the fiscal year ending last June 30. According to the auditors, it earned $176,910 in interest and dividends on investments of $1,172,520. That is a rate of return in excess of 15%, no small feat given last year's market conditions.
The auditors concluded their report with this heads-up:
Subsequent to year-end there has been substantial volatility in the United States financial markets. Major investment indices have experienced significant declines. The S&P 500 index, a stock market index comprised of 500 of the largest United States corporations, has declined from 1,280 at June 30, 2008, to 955 at October 21, 2008, an approximate 25% decline. In addition, many fixed income securities have also experienced significant valuation pressure as a result of turmoil in the credit markets. As a result, it is likely that the value of the investments has declined since year-end.
Finally, the MCCS still owes more than $840,000 on various notes used to finance the expansion of All Saints Catholic Academy, one of the 13 schools closed by Bishop Clark last June. And it is still obligated to pay in excess of $136,000 for the leasing of various copiers, at least one of which it removed from Holy Cross, another of the closed schools.