The following are financial highlights of the affiliated units and organizations within the Archdiocese. The operating results of these organizations are not reflected in the financial statements of the Administrative Office. The information below is summarized data and is provided as a supplement for interested readers.

Seminaries
While total support and revenues for Seminaries increased during fiscal year 2003, the Archdiocese was required to provide aggregate loans to St. John's Seminary and St. John's Seminary College during the fiscal years 2003 and 2002 amounting to $8.7 million to allow them to meet their operating needs.

The St. John's Seminary College facility was closed at the conclusion of the 2003 academic year. The lower division courses will no longer be offered at the college. Once the remaining students graduate, operations of the college will cease permanently.

The Tidings / Vida Nueva
The Tidings / Vida Nueva continues to require an operating subsidy. However, the operating results remained stable during fiscal year 2003, and the subsidy decreased slightly. There was a slight decrease in total expenses of $0.1 million.

Education Foundation
The Education Foundation provides tuition awards to students from low income families. It also makes grants that benefit Catholic elementary and secondary education. The Foundation's funding is derived from donations and earnings on investments. Total support provided to students and schools from the Education Foundation amounted to $5.6 million for the year ended June 30, 2003. The Education Foundation had a $3.5 million increase in revenues from donations and investment returns for fiscal year 2003. This increase was due principally to positive investment returns.

Cardinal McIntyre Fund
The Cardinal McIntyre Fund for Charity supports various charitable causes that are not funded through any other charities or programs of the Archdiocese. Funds are generated through collections at the parishes and direct contributions. In fiscal year 2003 the Fund dispersed $0.8 million to parishes. This money was used to provide financial assistance to parishioners for such emergency needs as rent and food. The overall operating results of the Fund remained static during fiscal year 2003.

Investment Pool
In November 1986, the Archdiocese established an investment pool (the "Pool") which holds assets in trust for the benefit of the various entities of the Archdiocese and other religious organizations. The Administrative Office manages the Pool for the mutual benefit of all the participants. The funds deposited on behalf of these entities are solely their property and are processed by the Archdiocese in its capacity as agent and trustee. The accompanying financial statements presented on page A-2 represent only the Administrative OfficeÕs share of the assets of the Pool. The Pool is operated on a total return basis. This means that the gains and losses of the portfolio are allocated to the participants based on their specific interest in the Pool, similar to the way a mutual fund operates.

All funds invested, together with the returns on the invested funds, held for a parish, school, or any other participating entity, remain at all times, the property of the particular entity. The Investment Committee of the Archdiocesan Finance Council oversees the investment program. The Investment Committee is made up of highly qualified lay professionals and uses professional advisors to assist in the decisions regarding asset allocation. Institutional money managers are responsible for the performance of the portfolios with oversight from the Investment Committee. A separate custodial bank holds the assets and accounts for the allocation of the participants' interest in the pool.

Funds invested by the various entities are available for use by a participating entity in accordance with donor imposed restrictions or for the operations of that entity. No participant funds are used at the discretion of the Administrative Office. Withdrawals from the pool are made only upon written request of the participating entity.

The investment pool consists of a balanced portfolio and an income portfolio. As of June 30, 2003 the balanced portfolio had a fair market value of $370.3 million and the income portfolio has a fair market value of $155.4 million. The balanced portfolio rate of return increased 3.5% in fiscal year 2003 compared to a decrease of 4.7% in fiscal year 2002. The income portfolio rate of return was 2.8% during fiscal year 2003 compared to a 4.2% return in the previous year.

The capital market performance has continued to improve during the first quarter of the current fiscal year as illustrated in the graphic for the Investment Pool.

Parishes
Total support and revenue for the parishes increased $5.8 million in fiscal year 2003. Regular contributions and donations were slightly up $0.2 million during the year, and special fundraising efforts, such as capital campaigns, increased $5.1 million. There was a $3.6 million decrease in rental and other fees and income. Total expenses decreased by $2.2 million.

Elementary Schools and High Schools
The total support and revenue for elementary and high schools increased $11.7 million during fiscal year 2003. This increase in revenue was primarily due to an increase in tuitions, donations, fundraising and subsidies. Total expenses increased $12.1 million during fiscal year 2003. This increase is primarily due to employee salary increases and increasing benefit costs.