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Parish Finance Council
1st
Annual Briefing
June 15, 2018
SJPC 9:00am – 11:00am
Our Agenda
I. Increase Standard of Excellence
II. Overview & Updates & The CathoNet
III. Understanding the role
IV. PFC & PPC Definition and Differences
V. Pastor’s Role
VI. Parish Finance Council Role & Guidelines
VII.What’s New ; Forms & Tool Kit
VIII.Common Parish Issues
IX. Looking ahead
Gearing towards one Goal
https://leadershiproundtable.org/who-we-are/best-
practices-awards/
Overview
Financial Updates
Financial Updates
Financial Updates
Priest RemunerationEffective Date: January 1, 2018
Remuneration/Benefits Monthly Annual
Living Allowance 800.00 9,600.00
Food Allowance 600.00 7,200.00
Housing Allowance (@ $300 community housing)
Communication Allowance - -
Professional Development/Periodicals - -
Annual Retreat - -
403B Retirement Plan (Max Match-up), vested 70 years old 50.00 600.00
Social Security (Estimate not Fixed on the monetary benefits) @ 15.5% 348.75 4,185.00
1,798.75 21,585.00
Other Non-Monetary Benefits on W2
Housing Allowance Value 500.00 6,000.00
Car Allowance Value 300.00 3,600.00
TOTAL 9,600.00
B Proposal (Base)
Parish Assessment Formula
CathoNet Snapshots
CathoNet Snapshots
Understanding the Role
Financial
Responsibilities
Leadership
Pastoral
Responsibilities
The Pastor’s Role
Pastor’s Financial
Responsibilities 1/2❑ Overseeing the implementation of all Parish policies,
procedures, and guidelines as defined by Archdiocese
of Agaña (AOA).
❑ Making certain that the Parish is in compliance with all
civil laws.
❑ Overseeing the use of Parish assets, properties, and
buildings.
❑ Developing short-term and long-term financial
budgets.
❑ Maintaining Parish bank accounts and all investments.
❑ Maintaining adequate insurance for the protection of
all Church properties.
Pastors Financial
Responsibilities 2/2
❑Implementing financial controls and the monitoring
of such controls.
❑ Creating and administering Parish spending
policies.
❑ Archiving the documents and records on which the
property rights of the Church are based, and
deposit authentic copies of them in the archive of
the archdiocese.
❑ Administering the lay personnel policies of the
AOA (hiring, terminating, performance
evaluations)
The Definition
Parish Finance Council
- serve as the consultative body to advise and assist the
pastor/administrator or other person in charge in controlling and
overseeing the financial affairs of the parish and any schools,
centers, or other operations affiliated with the parish (Canon
537)
Parish Pastoral Council
- A consultative body in dioceses and parishes of the
Roman Catholic Church that serves to advise the parish priest
or bishop about pastoral issues.
Differences 1/2
Parish Finance Council
• Mandated by Canon
Law
• Deals with scientific
knowledge
• Less subjective
professional
standards
• Membership: 3 – 9
Parish Pastoral Councils
• Not mandated by
Canon law
• Deals with practical
knowledge
• Inclined to consult on
fellow parishioners
• Membership: 10-15
Differences 2/2
Parish Finance Council
• Selection Process:
Appointed by pastors,
recommended by
current PFC
• Financial and business
background
• Term: 3 Years
Parish Pastoral Councils
• Selection Process:
Discernment, council of
ministries, election, ex-
officio
• Knowledgeable & active
parishioners
• Term: 3 Years
Parish Finance Council
Representation
- from parish community & represents diversity
Background
- demonstrative skills or expertise in management and or
finance; experience in engineering, construction, maintenance
Number of Members
- Minimum of 3; cap of 9, should be odd number
- Quorum, majority
Officers
- Chairman – to be appointed by the pastor
- Vice Chairman – in absence of the chairman
- Secretary - to prepare minutes of the meeting
Not Permitted/Discouraged: PFC family members or members business, parish
employee or member of the family of an employee or relative of the pastor
Parish employee
are not members
of the PFC
They are staff
support for the
PFC
Consultative
Advisory
Body
Parish Finance Council Guidelines
Terms: Normally 3 years ; not everyone are on the same year to keep
succession planning
Need to be Accountable:
> Know who you are (Parishioner who can they go to)
> Develop the Norms (Charter)
Good , Honest, Advise and Not Popular Advise
Open Meeting : BUDGET Discussion (parishioner have to have
input on the
budget) Town Hall Meeting (Preliminary Budget is
Available)
Meets Regularly
Compile Minutes of the Meeting/Motions
Access to Relevant Financial Information
Access to Parish Policies
Strategic Planning
Sound Parish
Financial Report
Who is ultimately accountable on the governance of the Parish = Pastor
Well Formed Parish Financial
Council
PFC Guidelines 1/2
1. Leadership should be shared.
2. Need to be accountable and transparent to
parishioners
3. Establish Group Norms, such as Council
Charter
4. Maintain Close Relationship with Other
Advisory Council
5. Provide Parish-Based Education/Formation
Programs for Members.
PFC Guidelines 2/2
6. Operate as an Effective Group
7. Employ consensus decision making
8. Familiarity with diocesan policies
9. Take Evaluation Seriously
10.Include Prayer and Faith Sharing as Part
of the Agenda at Every Meeting.
Parish Finance Council Guidelines
October 24, 2013
Parish Finance Council
Charter
Types of Decision
Ordinary Administration
Extraordinary Administration
o Purchase of office supplies within pastors authority
o Basic repairs and maintenance
o Expenditures / commitments less than $15,000 (depending
of parish financial capacity)
o Expenditure over $25,000
o Bank Accounts of the Parish & Auxiliaries (Ministries)
o Contracts involving more than 1 year of commitment
o Hiring & Firing process
o Construction
o Acquisition or alienation of real properties
o Purchase or sale of artifacts
PastorParishioners PFC AFC/COC Archbishop
Additional Role
1/2
✓Review Parish annual budget
✓Review and co-sign with the pastor monthly
financial report
✓Review indebtedness of the parish &
fulfillment of its obligation
✓Review insurance coverages
✓Review of internal control procedures
✓Perform annual self-audits
Additional Role
2/2
✓Consulted on construction or improvements of
parish facilities
✓Review and advise on contracts/ lease agreements
✓Review effectiveness of fundraising
activities/programs
✓Review designated and undesignated bequest,
unbudgeted revenues and expenses
✓Assist in public relations/reporting to parishioners
Parish Finance Templatepage 1 of 2
NAME OF THE PARISH
Operating Revenues and Expenditures
Interim Report from July 1, 2017 to May 31, 2018
Offeratory Collections 300,000
Rental/Functions Income 75,000
Fundraising Income 10,000
Pleadges & Donations & Others 200,000
Total Income 585,000$
Employment Cost 150,000
Professional Services 70,000
Insurance Expense 5,000
Leadership Development 15,000
Liturgical & Office Supplies 50,000
Repairs and Mainetenance 20,000
Utilities (Power, Water, Telephone) 80,000
Archdiocesan Assessment 90,000
Depreciation Expense 95,000
Total Expense 575,000$
Net Surplus from Operations 10,000$
Comparative Revenues and Expenditures Previous Year & Budget
Fiscal Year
Jul17-May18
Fiscal Year
Jul16-May17% Change Budget
% of
Budget
Change
Income 650,000 600,000 8% 700,000 93%
Expense 550,000 550,000 0% 600,000 92%
Net Surplus from Operations 100,000$ 50,000$ 100% 100,000$ 100%
Fiscal Year End Trend
Revenues Expense Surplus/Deficit
Jul-17 100,000 65,000 35,000
Aug-17 50,000 40,000 10,000
Sep-17 60,000 50,000 10,000
Oct-17 45,000 39,000 6,000
Nov-17 55,000 50,000 5,000
Dec-17 75,000 65,000 10,000
Jan-18 68,000 65,000 3,000
Feb-18 55,000 45,000 10,000
Mar-18 45,000 35,000 10,000
Apr-18 59,000 50,000 9,000
May-18 70,000 65,000 5,000
Total 682,000$ 569,000$ 113,000$
Additional Notes:
Includes one-time pledge related to
newly constructed parish.
Offeratory Collections
51%
Rental/Functions Income
13%
Fundraising Income2%
Pleadges & Donations & Others
34%
Income
Employment Cost26%
Professional Services12%
Insurance Expense1%
Leadership Development
3%
Liturgical & Office
Supplies9%
Repairs and Mainetenance
3%
Utilities (Power, Water, Telephone)
14%
Archdiocesan Assessment
16%
Depreciation Expense
16%
Expenditures
0
20,000
40,000
60,000
80,000
100,000
120,000
1 2 3 4 5 6 7 8 9 10 11
Revenues & Expense
Revenues Expense
Additional Notes:
Comparative Financial Position from previous yearsFiscal Year
Jul17-May18
Fiscal Year
Jul16-May17% Change
Total Assets 6,800,000 6,500,000 4.62%
Total Liabilities 50,000 30,000 66.67%
Cash & Cash Equivalents 90,000 Total Net Assets 6,750,000 6,470,000 4.33%
Accounts Receivable 7,000
Prepaid & Other Assests 10,000
Investments (TCD) 320,000
Property & Equipment (net) 6,373,000
TOTAL ASSETS 6,800,000$
Cash Flows per month based on average revenue & expenditures:
Cash inflow
Accounts Payable 30,000 Offeratory Collections 27,273
Custodial Funds (Ministry Funds) 10,000 Rental/Functions Income 6,818
Archdiocesan Assessment Payable 10,000 Fundraising Income 909
Other Payables - Pleadges & Donations & Others 18,182
Long-Term Payables (Bank Loan) - Total Cash Inflow 53,182
Total Liabilities 50,000$ Cash Outflow
Employment Cost 13,636
Net Assets, Beginning 5,000 Professional Services 6,364
Unrestricted Assets 6,735,000 Insurance Expense 455
Net Surplys/(Deficit) Current Fiscal Year 10,000 Leadership Development 1,364
Temporarily Restricted - Liturgical & Office Supplies 4,545
Total Net Assets 6,750,000$ Fundraising Expense -
Repairs and Mainetenance 1,818
TOTAL LIABILITIES & NET ASSETS 6,800,000$ Utilities (Power, Water, Telephone) 7,273
Archdiocesan Assessment 8,182
Total Cash Outflow 43,636
Parish StatisticsFiscal Year
Jul17-May18
Fiscal Year
Jul16-May17Trend
Net cash at End of Month before debt service 9,545
Average Sunday Mass Attendees 500 450 Less: Debt Services
Registered Households 560 510 Loan Amortization -
Baptism 20 25 Other Payables -
First Communions 10 15 Net cash at End of Month 9,545 **
Confirmations 20 18
Marriages 5 6
Funerals 6 4
Family Program Students 8 10
Parish School Students 2 5
** If parish revenues and expenditures remain the same there is an
estimated $9,545 savings per month.
May 31, 2018
Statement of Financial Position
NAME OF THE PARISH
ASSETS
LIABILITIES & NET ASSETS
Cash bank balance is higher by $75,000 during the year; Property &
Equipment was also increased as a result of the newly constructed chapel
and TCD has increased by $50,000 for fiscal year to date May 2018.
Parish Finance Templatepage 2 of 2
Updates
http://riskpartner.com/product/features-and-benefits/
Parish Organizations
Affiliate Organization
Non-Affiliate Organization
Forms/Tool Kit
❑Priest Transition Period
Checklist
❑Minutes of the Meeting
(Simplified Form)
❑Sample Cover Letter to the
Archdiocese
❑Internal Control Checklist
❑Employment Audit Checklist
Resources: https://aganaarch.org/finance-accounting-policies
Self-Evaluation
I. General
II. Financial
Reporting
III. Bank Accounts
IV. Cash Receipts
V. Cash
Disbursements
VI. Personnel and
Payroll
Self-Evaluation
I. Classification of
Staff
II. Payment of Wages
& Time Records
III. New Hire
Paperwork's
IV. Mandatory Posters
V. Personnel Files
VI. Other Basic
Human Resources
(HR) Audit
Checklist
Other Forms
❑ Recruitment Authorization Form
❑ Expenditure Approval Request of
$25,000 and above
❑ AOA Loan Application Packet
❑ Loan Internal Borrowing Application
Form
❑ Permit Application for Raffle &
Fundraising Activities
❑ Parish Financial Manual
❑ Collection Count Sheet
❑ Mass Offertory Collection Summary
❑ Collection Count Summary
❑ Daily Collection report
❑ Volunteer Application Form
Information Sheet/Non-disclosure
Common Parish Issues
❑Untimely Financial Reporting (Availability
of Bookkeeper)
❑Unstructured Staffing Pattern
❑Inconsistent HR Practices, perpetual
leave carry overs
❑Parish Collection Processes
❑Donation Restricted and Unrestricted not
properly documented
❑Dual Signatories to include parish finance
councils
Common Parish Issues
❑ Employee & Independent contractor
Status (1099-MISC and W2)
❑Offertory counting / process
Correspondents/Responsiveness
❑555 Rule 15th , 20th, 25th and 30th
Looking forward…
❑Annual Retreat/Assembly with
the Parish Finance Council
❑Formal installation of parish
finance council
❑Volunteer recognition and
appreciation
References
- Villanova University, Center for Church Management and Business
Ethics
- Implementation Guide for Parish Finance Council – The Archdiocese
of Los Angeles
- The Role of Parish Finance Council -
https://www.youtube.com/watch?v=BEuJOzzcNPc
- http://riskpartner.com/product/features-and-benefits/
- Canon Law: Parish Definition, Finance Council, and Pastoral
Planning
- https://vimeo.com/127896978
Email:
671-562-0064/0015
