Parish Finance Council



Parish Finance Council

“537 In each parish there is to be a finance council which is governed, in addition to universal law, by norms issued by the diocesan bishop and in which the Christian faithful, selected according to these same norms, are to assist the pastor in the administration of the goods of the parish, without prejudice to the prescript of ⇒ can. 532.” - excerpt from Code of Canon Law

The Parish Finance Council is a consultative body established to advise the Pastor in matters pertaining to the financial affairs of the parish. The relationship between the pastor and the council is one of support and collaboration. The authority of the pastor, as defined by Canon Law, to act and decide on behalf of the parish, is not lessened by the establishment of the Finance Council.

In fulfilling its responsibilities the Parish Finance Council must be directed by the values of the Gospel as well as follow good business practices. Efficient and effective use and management of parish resources must be measured as much by their contribution to parish mission and ministry as by commonly accepted business standards.

STRUCTURE

The Pastor must assemble a council to assist him to direct and monitor the financial affairs of the parish.

The pastor may appoint a member to assist him in planning and coordinating the work of the council. The Finance Council shall also choose one of its members to be the recording secretary responsible for keeping minutes of the deliberations of the Finance Council.

The Finance Council should be, at least partially, comprised of individuals with backgrounds and/or knowledge of managing an institution's financial affairs. The following is a partial list of suggested occupations of members:

Accountant

Management Executive

Pastoral Person

Purchasing

Banker with Investment Experience

Personnel

Lawyer

Engineer or Construction/Property Manager

Good Common Sense Person

Insurance

The following matters should be considered when determining membership of the Finance Council:

• Members of the Finance Council must be active members of the parish, knowledgeable in the scope of parish programs and services.

• The Finance Council shall have the number of members suitable for the population of the parish and shall consist of no less than five members and no more than nine members. The Finance Council must include the pastor/administrator, the parish accountant/bookkeeper.

• The Finance Council shall not include persons related to the pastor or staff members (except accountant/bookkeeper).

• Members of the Finance Council are to be named for a three-year term, which can be renewed. All three year term dates, even though staggered, start at July 1.

Minutes of the meetings of the Parish Finance Council must be prepared to outline the significant actions taken at each meeting. The minutes shall be maintained by the Recording Secretary of the council.  A copy of all Finance Council Minutes must be kept on file at the parish as permanent record.

The pastor has authority to decide and act on behalf of the parish. The Finance Council is advisory to the pastor and its decisions/recommendations are valid only when accepted and ratified by the pastor. It is important, therefore, that the pastor be central to the deliberations and the functioning of the Finance Council. The relationship between the council and the pastor is supportive and by no means adversarial.

Finally, if the pastor in good conscience feels he cannot accept the recommendations of the council, he shall fully and frankly communicate this reservation to the council's membership.

FUNCTIONS

The Finance Council must meet at least quarterly, to review the financial condition of the parish, including available cash funds, outstanding liabilities, actual vs. budgeted revenue and expenditures, and/or recently completed and future events or transactions affecting the finances of the parish. The ability of the council to review such information will depend greatly on financial information being available for Finance Council meetings.  A timely and accurate financial report must be given to the Finance Council at each of their regular meetings.  If a special meeting is scheduled for a non-financial designated purpose a financial report does not need to be prepared.

The Finance Council shall assist the pastor in the following:

• Preparation of the parish's financial budget.

• Review monthly/ quarterly financial reports and their adherence to budget.

• Oversee and Coordinate all fund-raising activities.

• Financial management (i.e., purchasing and operating expenditures, and personnel).

• Facilities management (i.e., preventive maintenance, complying with inspection reports and capital expenditures).

• Maintain and monitor an adequate system of internal financial controls.

• To meet all requirements of federal and state tax laws and maintain an accurate record of payment.

• To safeguard the assets of the parish from loss or damage through cooperation and consultation with the Diocesan Risk Manager.

• To implement all diocesan policies relative to financial matters.

• Long-range administrative planning.

• To assist with the recording of capital expenditures.

The Finance Council must review the Annual Parish Finance Report and the Parish Budget. The Parish will formulate a letter to the Bishop (through the Diocesan Finance Office) signed by every member of the Council supporting the reports.

The following items require Diocesan Approval

Any expenditure or group of related expenditures in excess of $50,000 that is not a recurring operating expenditure reflected in a written budget that has been approved by the pastor or administrator (or president) and the Finance Council or (ii) all sales of real estate or any sale of another asset valued in excess of $50,000, or (iii) acceptance of a donation of any real estate requires the advance written approval of the Bishop.

Any capital improvement or repair/renovation project that involves a projected cost in excess of $50,000 requires review and prior written approval by the Diocesan Construction Committee (in addition to the approvals required of the pastor or administrator (or president)), the Finance Council or the Bishop. If the project involves alterations of worship space, the project also requires the review by the Liturgical Committee.

Any financing with any lender requires the prior written approval of (i) the Bishop and (ii) the Diocesan Finance Council.

Each fundraising campaign for capital projects, endowment funds, etc. must be approved in advance in writing by the Bishop in accordance with the requirements of the USCCB norms relative to Canon 1262.

Initiation of litigation or arbitration requires the prior written consent of the Bishop. Any settlement of litigation, arbitration or other types of adverse claims for an amount that exceeds $50,000 requires the prior written consent of the Bishop.

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