Table of Contents
Principles for Administration of Parish and School Finances #
- The Pastor is responsible for financial decisions and will establish abalanced annual operating budget in consultation with the Parish Finance Council. The Pastor should also develop in consultation with the Parish Finance Council an annual capital expenditure budget including sources of funds. The Actual income and expenditures of the parish should be compared to the budgets monthly and reviewed by the Parish Finance Council at least quarterly.
- Each parish shall issue an informative financial report to its parishioners at least annually.
- All parishes will follow a uniform chart of accounts to facilitate reporting to the parishioners, the Parish Finance Council and the Archdiocese.
- All parishes will follow established internal accounting controls.
- All Parish Finance Councils will follow established Archdiocesan Guidelines and participate in Archdiocesan training sessions for priests, administrators and Parish Finance Council members.
- All parishes will participate in a coordinated payroll system in order to ensure that all employees receive proper benefits and in order to guarantee full compliance with ever more complex laws on taxes and employee benefits. No employee will be paid outside of the coordinated payroll system.
- All parish financial activities will be the subject of regular independent audits or reviews.
- All parish accounts in financial institutions will be included on the annual parish financial report and subject to the audit-review process. The Archdiocese will obtain comprehensive lists of all parish accounts from financial institutions and will compare the listing of the accounts with the listings contained on the annual parish reports.
Parish Finance Council Guidelines #
- The Revised Code of Canon Law mandates a Parish Finance Council in each parish. The role of the Parish Finance Council is to assist and advise the Pastor in overseeing and controlling the financial affairs of the parish. The Parish Finance Council is accountable to the Pastor, who has the responsibility for final decisions. It is understood that if the advice of the Parish Finance Council is unanimous on a given matter, the Pastor will give serious consideration to the recommendation and not lightly reject it.
- Structure of the Parish Finance Council
Members shall be appointed by the Pastor and must be active Catholic members of the parish. Members should be skilled in business and have some expertise in management, financial, accounting, legal, fund raising or related fields. The membership of the Council cannot include anyone who could have a conflict of interest from such affiliation, nor can any parish staff member or any relative of the Pastor be a member. There shall be at least three members.
Members shall serve for three years. The terms of the Parish Finance Council will be staggered to ensure continuity. Upon initial formation of the Parish Finance Council, the Pastor shall designate either a one, two or three year term, in succession, for each member that the Pastor appointed. Thereafter, members who are appointed or re-appointed shall serve for three years. In the event a member resigns or is removed by the Pastor for a just cause, the replacement shall assume the remainder of the term of the replaced member. The Pastor shall appoint the Chairperson. Other officers may be appointed at the discretion of the Pastor.
When a pastorate becomes vacant, the Parish Finance Council ceases to exist.
- Functions of the Parish Finance Council
The Pastor is responsible for financial decisions and will establish balanced operating budgets for the parish and school in consultation with the Parish Finance Council. The Pastor should also develop in consultation with the Parish Finance Council an annual capital expenditures budget including sources of funds. The actual income and expenditures of the parish should be compared monthly and reviewed by the Parish Finance Council at least quarterly.
The members of the Parish Finance Council must be given complete access to all records and documents relating to the financial status and operations of the parish. The Pastor must consult the Parish Financial Council concerning any major commitment of parish funds in excess of $10,000, or a series of small amounts for a single purpose that will exceed $10,000. In conjunction with these functions the Parish Finance Council shall do the following:- Establish a timeline for budget development and implementation by the parish staff.
- Review proposed operating and capital budgets.
- Review significant budget variances and develop a plan of action, if necessary, to correct the problem(s) or amend the budget.
- Review proposed expenditures which are not included in the approved budget.
- Review and recommend approval or disapproval of proposed budgets from individual parish organizations having substantial sources of income (i.e. Men’s Club, Women’s Club, Bingo, Scrip, Boosters, etc.). Financial statements for these organizations and activities shall be submitted to the Parish Finance Council at least annually.
- Provide parishioners with an approved budget and periodic financial statements, at least annually.
- Review the annual financial statements published to parishioners and submitted to the Chancery Office for accuracy and completeness. The reports must agree with the books of record and must be accurate. If necessary, supplemental information can be included as a footnote to the reports.
- Ascertain that the parish follows the Archdiocesan uniform chart of accounts to facilitate reporting to parishioners, the Parish Finance Council, and the Archdiocese.
- Ascertain that the parish follows established internal accounting controls as specified by the Archdiocese.
- Follow established Archdiocesan guidelines and participate in Archdiocesan training sessions for priests, administrators and Parish Finance Council Members.
- Ascertain that all employees are included in the Archdiocesan coordinated payroll system in order to ensure that all employees receive proper benefits and