Diocese reports stable financial position in fiscal year 2025 audit report
The East Tennessee Catholic
The finance department of the Diocese of Knoxville has released its audited financial statements for the fiscal year ending June 30, 2025. The statements reflect continued financial stability, prudent stewardship, and a modest increase in net assets.
According to the independent audit conducted by Brown Jake & McDaniel, PC, the diocesan financial statements present fairly, in all material respects, the financial position and activities of the diocese in accordance with generally accepted accounting principles. The auditors issued an unmodified (clean) opinion.
Total assets of the diocese increased to approximately
$89.4 million, up from $79.7 million the prior year. This growth was driven primarily by investment performance.
Total net assets increased by $1.43 million, ending the fiscal year at $25.9 million. Of the total net assets, $18.3 million is subject to donor restrictions for specific ministries and purposes, while
$7.7 million is without donor restrictions and available to support ongoing operations.
Operating revenues for the year totaled $15.3 million, supported by the Bishop’s Appeal for Ministries, parish assessments, investment and interest income, grants, and other program revenues. Expenses totaled $13.9 million, with the majority directed toward pastoral services, clergy care, education, charitable outreach, and diocesan ministries. Administrative and fundraising costs remained consistent with prior years.
While the diocese reported a positive change in net assets, cash and cash equivalents decreased by about $5 million; this is mostly due to investing activities and a decrease in the medical claims reserve.
The diocese ended the year with no outstanding bank debt, following the payoff of its remaining note payable. Long-term obligations related to pension and post-retirement benefits continue to be monitored closely, with contributions made in accordance with actuarial recommendations.
“These financial statements reflect the diocese’s careful stewardship of the resources entrusted to it,” according to Diocese of Knoxville officials.
“While we remain mindful of long-term obligations and broader economic uncertainties, the diocese is well positioned to continue supporting the parishes, clergy, charitable works, and ministries vital to the growth of the Church throughout East Tennessee. We are blessed to live in an area where the Church is growing, and we are deeply grateful to the people of East Tennessee for their faithful and generous support of our parishes and the diocese,” the diocesan officials noted.
The full audited financial statements are available at dioknox.org/finance, to access the full, detailed report, including information on diocesan finances, investments, pension plans, and liquidity.
