1. From the deep roots of our story to “Something New” Finance

2. W e, Sisters, Servants of the Immaculate Heart of Mary, rooted in God and in the Gospel, stand together and courageously commit ourselves to enter into the joys, hopes, griefs, and anxieties of the people of this world. W e choose to be transformed by these questions: How do the choices I make today/we make today affect persons who are in need in our time? What choices must we make as we live out our commitment to God and God’s people?

3. Finance Committee Sr. Ann Monica Bubser Sr. Jean Coughlin Sr. Janet Jeffers Sr. Theresa Jordan Sr. Kathleen Lunsmann Sr. Mary Helen Slavinskas Debbie Worlinsky

4. Revenues Revenues, gains & other support2008200920102011 Compensation for Sisters’ services7,571,7397,452,2067,669,8337,681,417 Health & Retirement benefits1,596,0981,624,9111,758,8481,815,874 Social security benefits1,659,4611,747,5621,787,3441,812,375 Gifts1,136,8241,503,6351,393,4223,358,486 Dividends and Interest245,588136,74538,88728,941 IHM donated services864,187877,699872,231855,715 Donated Property10,39521,16023,71016,382 Religious institute services208,117221,223203,377180,972 Other revenues1,827,2111,641,1972,219,0811,429,114 Gain on disposal of property/equipment 13,604100,2157,26030,347 Unrealized gain (loss) on investments (73,577)(220,134)47,455959 Unrealized gain (loss) on swap contract -(794,457)(238,603)87,183 Total revenues, gains & other support 15,059,64714,311,96215,782,84517,297,765

5. Expenses 2008200920102011 General & administrative1,772,7701,847,3302,387,3191,636,843 Religious formation139,656110,356104,946158,943 Care of retired – Our Lady of Peace6,216,8556,533,6796,121,3555,921,425 Personnel development & education 62,16964,25550,91939,295 Health insurance, hospitalization & related expenses 1,676,8132,248,1591,798,8431,431,638 Social security tax146,536134,028124,38993,403 Other general support756,226582,358518,966489,732 Religious institute operations2,074,8212,062,1971,988,0942,165,854 Local communities3,758,8003,873,8003,669,4733,625,240 Other Sisters’ services422,097331,556344,451334,837 Total expenses17,026,74317,787,71817,108,75515,897,210

6. Revenue/Expense Statement 2008200920102011 Total Revenues, gains & other support 15,059,64714.311.96215,782,84517,297,765 Total Expenses17,026,74317,787,71817,108,75515,897,210 Gain (loss) revenues over expenses (1,967,096)(3.475.756)(1,325,910)1,400,555 Contributions to IHM Charitable Trust (23,100)(19,800) (17,600) Increase/decrease in net assets(1,990,196)(3,495,556)(1,345,710)1,382,955 Net assets, beginning of year28,402,05026,411,85422,916,29821,570,588 Net assets, ending26,411,8522,916,29821,570,58823,159,705 DONATIONS FROM TRUST Principal payments on OLP loan500,000 Donations from Trust for Care of retired Sisters 206,1621,307,720 IHM CHARITABLE TRUST BALANCE80,514,46874,197,45481,198,78087,687,242

7. Revenue vs. Expenses

8. Net Compensation 2008200920102011 Compensation & Benefits 9,167,8379,077,1179,428,6819,497,291 Less: Living & Ministry Expenses 4,180,8974,205,3564,013,9243,960,077 Net Compensation & Benefits 4,986,9404,871,7615,414,7575,537,214

9. Dividends & Interest

10. Religious Institute Services Bistro, beauty salon, ESL, group retreats, Heartworks, hermitages, IHM days, Photos by Jan, reflection guides, spiritual renewal center, workshops

11. Other Revenues Local community excess funds, food service-Geisinger, housekeeping-Geisinger, medical insurance claims, OLP resident support, property insurance claims, rent-Geisinger & MCH, rent rebates, legal settlements, vacation houses, TMCC

12. EXCESS FUNDS 2008 – 2010$365,017.18 DEC 2010 – Sweep$131,957.36 DEC 2011 – Sweep$124,198.36 __________ TOTAL$621,172.90

13. CARE OF RETIRED SISTERS 2008200920102011 Marian/OLP6,216,8556,533,6796,121,3555,921,425 IHM Center862,060828,064692,444695,966 Local Communities 202,214180,160179,625196,313 TOTAL7,281,1297,541,9036,993,4246,813,704

14. Health Insurance, Hospitalization and Related Expenses

15. Other General Support Burial, departure, family ministry, foreign sisters support, legal/professional fees, vacation house rental payments

16. Religious Institute Operations IHM Center, all property owned by Cong., except OLP, Justice & Peace, Associate Program, EEI, Heartworks, Bistro, Beauty Salon, LIFE, Photos by Jan, IHM on-line, Foreign Missions

17. House Budgets 2008 – 2011 Base Amount per Sister 2008$470 – 500 2009$500 – 550 2010$500 – 550 2011 $525 – 575

18. Local Community Budgets 2011 # of Sisters Living in Household # of Houses Total # of Sisters Total CostAvg Cost/Sister 179 1,284,295.9616,256.91 21632445,082.0013,908.81 31236360,764.9610,021.25 4624212,861.888,869.25 5420208,515.2010,425.76 6424288,120.0012,005.00 7321202,397.049,637.95 9218236,700.0013,150.00 111 101,732.769,248.43 TOTAL2653,340,469.8012,605.55 Total does not include sisters residing at the IHM Center, Our Lady of Peace Residence, in Peru, on Family Ministry or Sabbatical

19. Actual Members Living Expenses FY 2010-2011 Household$1,426,043.32 Personal$921,097.07 Employee Salaries$145,347.90 Religious/Charity$66,806.84 Professional$35,726.18 Car$177,101.24 Other-Excess Funds, etc,$262,743.54 Total$3,034,866.09 (does not include housing & auto insurance paid directly by Congregation)

20. Rent/Lodging Paid from Local Budgets FY 2011-2012 Average Rent by State DC$935 Delaware$513 Florida$1500 Kentucky$430 Massachusetts$1800 Maryland$635 Michigan$830 New Jersey$507 New Mexico$570 New York$591 Pennsylvania$500

21. Rent/Lodging Paid from Local Budgets FY 2011-2012 (Continued) Average Rent Within PA Scranton, Dunmore, Carbondale$465 Wilkes Barre Area$451 Pittsburgh, Altoona$523 Williamsport, Danville, Steeleton$354 Southeastern PA$696 Average Rent per Sister – All States$482.92

22. Our Lady of Peace Loan Summary May 31, 2012 Total Loan$15,000,000 Loan Balance 5/31/12$ 6,437,500 Additional payments made on principal loan balance$ 4,000,000 From Trust1,500,000 From Weinberg Grant1,000,000 From Building Fund1,500,000 Debt Summary: Total Principal Paid as of April 3, 201611,500,000.00 Total Principal Due on April 3, 2016 3,500,000.00 Total Estimated Interest Paid as of April 3, 2016 4,340,857.52 Total Principal and Interest paid as of April 3, 2016 19,340,857.52 NOTE: On April 3, 2016 a final payment of $3.5M will be due to AIB. The Charitable Trust has invested $3.5M in Laddered Treasury Bonds for this purpose.

23. LIFE (Living Independently For Elderly) Program  LIFE PROGRAM  25 Sisters enrolled  5 other Sisters potentially eligible  Elimination of out of pocket expenses for: medical care, dental, hearing aids, ophthalmology, medical/surgical supplies, transportation & food supplements  Income  Rental fee for use of facility  Contribution toward capital expense  Dietary & other ancillary services

24. IHM Congregation Charitable Trust 2001$53,792,8392007$85,635,720 2002$53,884,6862008$80,514,468 2003$58,398,2522009$74,197,454 2004$64,547,5372010$81,198,780 2005$72,171,0422011$87,687,242 2006$77,951,7742012$90,309,086

25. IHM Congregation Charitable Trust Trustees Sr. Ellen CarneyMr. Bob Gordon Sr. Ann Monica BubserSr. Michel Keenan Mr. John H. GrahamMrs. Debbie Worlinsky Sr. Theresa Jordan

26. National Religious Retirement Office (NRRO) Unfunded Past Service Liability Total Past Service Liability$138,979,923.39 -Less Currently Designated Retirement Assets - 80,789,774.00 Unfunded Past Service Liability $58,190,149.39 Percent of Retirement Fund Unfunded41.87%

27. NRRO Grants 1988 - 2011 Basic$4,681,019.00 Supplemental$0 Special Assistance$ 15,000.00 SING$ 1,843.00 ___________ Total$4,697,862.00

28. Grants from Church-Sponsored Retirement Programs FY 2010-2011FY 2009-2010 National Retirement Fund for Religious (NRRO) $224,684$221,520 Brooklyn & Rockville Center$18,398$21,038 Archdiocese of New York$4,490$8,762 Philadelphia-Harrisburg- Allentown $975$1,066 Syracuse$35,681$60,609 Totals$284,228$312,995 NRRO deducts the amounts received from Diocesan Programs from their grants

29. Vehicle Information Congregation Fleet Vehicles = 204 The Congregation adds/replaces an average of 14 vehicles each year We should replace 10% of the fleet (20 cars) per year

30. Vehicle Purchases/Donated 200717$224,957 200811$172,994 20096$ 80,948 20108$180,472 201119$334,510 201220$322,413

31. Vehicle Disposals 20078 200812 2009 9 2010 9 201121 201220

32. Driving Assessment Committee Sr. Mary Kay FaliskieSr. Susan Brown Sr. St. Monica CostelloDebbie Worlinsky The purpose of the Driving Assessment Committee is to assist drivers by providing ongoing driver education, reviewing driving records, and making specific recommendations to the Leadership Team with regard to individual drivers. The Leadership Team and the Driving Assessment Committee have revised our Driving Policy. The main change from the original policy is that at age 75 and every 3 years thereafter, each sister driver with a valid drivers license will be required to take a “behind the wheel” driver test with a qualified state licensed driving instructor and submit the certificate to the Temporal Resources Office. The policy will be sent out in August and will be effective as of January 1, 2013.

33. Vehicle Incident Report 5-12-10 to 4-27-114-20-11 to 4-29-12 Incidents with Congregation’s driver at fault13.520.7 Incidents with other party at fault15.514.3 Incidents with unknown party at fault5.00 Vehicles that were vandalized1.02.0 Total Vehicle Incidents3537 Sisters in multiple incidents33 Incidents involving non-IHM Sisters20 Cars totaled44

34. Vehicle Incident Report (continued) 5-12-10 to 4-27-114-20-11 to 4-29-12 Total cost of repairs$36,903.87$39,144.86 Payments from Congregation insurance for repairs $25,462.88$42,280.40 Payments from other insurance companies $5,724.11$4,417.53 Total Payments Received$31,186.99$46,697.93 Total Payments by Congregation $5,716.88($7,553.07)

35. Theresa’s Treasure Committee Members Sr. Ellen CarneySr. Elizabeth Pearson Sr. Mary Ellen HigginsSr. Grace Elizabeth Surdovel Sr. Eleanor Mary Marconi Purpose: To lend financial support to women’s causes by encouraging individual sisters, local communities and others to contribute to Congregational funds that will either provide seed money for women’s projects, or help to proclaim God’s unconditional love for all as we channel our energies to foster respect for diversity. (Chapter 1994 and 2002) Since fiscal year 2000-2001 the Development Office has received donations of $29,884 for Theresa’s Treasure. The committee has approved requests totaling $36,681. Congregation funds supplement the difference.

36. Business Office Business ManagerDebbie Worlinsky Office ManagerJackie Roche AccountantLaura Bondy AccountantJeanne Hill Accounting Asst.Sr. Theresa Fitzgerald Accounting Asst.Paula Thompson Accounting Asst.Mary Lou Vandorick ClerkSr. Geraldine Dranginis ReceptionistSr. Judy Ziegler SecretarySara Thomas

37. Our Financial Strengths  Trust in Divine Providence  Focus on Mission  Responsible stewardship  Development efforts which allow others to participate in and sustain our ministries  Continued efforts to reduce expenses  Sisters’ efforts to “negotiate” compensation packages  The Charitable Trust

38. Financial Challenges Decreasing Revenue  Sisters Compensation  Decline in number of sisters who are able to be compensated for their ministries  Stipend & salary freezes or minimal increases  Financial problems of parishes, schools and other employers  Employers changing ministries from full time stipend to part-time stipend  Difficulty in obtaining part time ministries  Effect of economic conditions on ability of donors to give  Bequests to Congregation are unpredictable

39. Financial Challenges (continued) Increasing Expenses  Local living expenses  Employee salaries & benefits  Health insurance, medical & hospitalization bills  Insurance, utilities, fuel, gasoline  Cars  Buildings & properties

40. To What Are We Being Called? To evaluate how each decision affects persons who are in need. To evaluate each decision in light of the common good. To commit ourselves to common good and responsible use of our human and temporal resources. To understand and own our financial reality – what is each of us willing to do so we are able to continue to minister to God’s people, care for our retired and active members and provide for future needs. Since we are in and will continue to be in a time of diminishing financial resources (decreasing revenue and increasing expenses), what can we do to decrease expenses?

41. Questions to Ponder How does this information impact my life/our lives? What more can I/we do to ensure a financially secure future for our ministries and our Sisters?