On January 6, 2012, the Diocese published in The Catholic Key a Special Report entitled “Update to the Faithful of Northern and Western Missouri Regarding the Diocesan Response to the Sexual Abuse of Minors.” The Report included a section entitled “Financial Report of Clergy Sexual Abuse,” which provided financial information for the Diocesan Property and Casualty Insurance Program for the period July 1, 2002 through October 31, 2011. Included were the historical expenditures for all claims paid since July 1, 2002, including costs associated with claims of Clergy Sexual Abuse.
In this edition of The Catholic Key, the Diocese provides financial information for the Diocesan Property and Casualty Insurance Program for the period July 1, 2011 through June 30, 2012, including expenditures associated with the claims of Clergy Sexual Abuse. This information is intended to supplement the Report of the Ombudsman (Ms. Jenifer Valenti), which was included in the August 10, 2012 edition of The Catholic Key, and which can be viewed on the Diocesan website www.diocese-kcsj.org.
The Diocesan Property and Casualty Insurance Program incurred the following expenses for the period July 1, 2011 to June 30, 2012.
1 General Operations and Administration — This expense category ($1,449,089) includes audit & actuarial services, office administration, insurance coverages (including boiler), third party claims administration, loss control programs and fire extinguisher programs.
2 Special Investigations/Projects — This expense category includes $363,562 incurred and paid in connection with the August 2011 Report of the Independent Investigation of the Catholic Diocese of Kansas City-St. Joseph commissioned by Bishop Finn to analyze the Diocesan response to reports concerning Shawn Ratigan and Fr. Michael Tierney. The report was prepared by Graves Bartle Marcus Garrett, LLC. In addition, Diocesan legal counsel coordinated file retrieval, document review and interviews conducted for the development of the Report; the total cost for these services was $94,584. The balance for incidental costs was $929, for a total of $459,075.
3 Diocesan Ombudsman — This expense category ($67,585) represents all costs associated with the work of Ms. Jenifer Valenti, Diocesan Ombudsman, an independent contractor retained by the Diocese to field and investigate reports of sexual abuse, inappropriate behavior or sexual misconduct by clergy, employees or volunteers.
4 Office of Child and Youth Protection — This expense category ($90,569) relates to policy development and oversight of all aspects relating to the protection of children and youth including the work in the areas of Safe Environment Training and Education, Victim’s Advocacy and coordination of Victim Counseling.
5 Sexual Abuse Loss Fund Claims — This expense category includes: a) costs related to civil claims and litigation based on incidents alleged to have occurred in the 1960’s, 1970’s and 1980’s ($1,621,368), b) costs related to civil litigation against the Diocese involving actions of Shawn Ratigan ($286,621), and c) costs related to grand jury investigations and criminal proceedings involving the Diocese and Bishop Finn ($1,385,506). Also included are expenses for counseling support for 44 individuals ($39,154). No legal costs for the personal defense of Shawn Ratigan have been paid by the Diocesan Property and Casualty Insurance Program or by any other Diocesan fund.
Income to fund the expenses of the Diocesan Property and Casualty Insurance Program derives from insurance premiums paid by all parishes, schools and other Diocesan institutions, as well as interest income on Property and Casualty reserves. These premiums are developed for each “location” based on building and content replacement values, overall square footage, payroll, number of students, vehicles and other risk factors. In addition, the Diocesan Property and Casualty Insurance Program may use accumulated Property and Casualty reserves as well as reimbursements to the Diocese by insurance carriers up to policy limits for claims.