BP 11122023 129pm - Flipbook - Page 104
utility costs, seeking to minimize costs through preventative maintenance, energy conservation,
and the implementation of risk-management programs and recommendations.
8. Annual Budget
The Finance Council should participate in developing and implementing the parish annual
budget (Canon 1284, §3). It should assist in establishing timelines for the operating and capital
budget for parish operations, ministries, and organizations. Parish ministries and organizations
should present their plans and a summary of expected receipts and disbursements to the Council
during the planning process. The Council should ensure the budget is prepared in accord with the
Archdiocesan chart of accounts and reporting formats. Additionally, it should recommend to the
pastor any budget changes as well as the final budget, and participate in the communication of
the annual budget to the parish community, including parish ministries and organizations. In
addition to the budget, the Finance Council should review, at the discretion of the pastor, items
of administration that are of greater significance or for which the pastor wishes advice.
The Finance Council should review periodic (at least quarterly) financial reports that the parish
provides to the Pastoral Council. The Finance Council should address significant revenue and
expense variances from the approved budget and should review actual-to-budget comparisons by
individual program categories (e.g., preschool, religious education). Significant variances from
budgeted amounts should be investigated and explained. The Finance Council should also review
the percentages of the parish’s resources spent on ministry activities, administration, and
fundraising.
9. Income
The Finance Council should monitor offertory trends and assess offertory giving levels, taking
into consideration historical, seasonal, and current trends in parish revenue and expenses to
ensure that financial resources are in accordance with the parish pastoral plan and good financial
management. At the request of the pastor, the Finance Council should review existing
fundraising programs (e.g., raffles, bingo, and food sales) for compliance with archdiocesan
policies, including those regarding cash-receipt and deposit procedures, required licenses,
required documentation for tax filings, and the actual tax filings. The Council should determine
the effectiveness of each program and recommend new programs and changes to or the
abrogation of existing programs, as deemed appropriate. The Finance Council should avoid
becoming involved in actual administrative activities but should coordinate with the Stewardship
Committee, as applicable. The Finance Council should provide advice on the use of
undesignated bequests or other unbudgeted revenue. If requested, it should also assist the pastor
in managing a parish endowment program. If requested, the Finance Council should also review
any restricted gifts to ensure that the parish can accept the restriction and, once accepted, that the
funds are spent in a manner consistent with the donor restriction(s).
The Finance Council should gain an understanding of regulations regarding the assessment of
unrelated-business income tax and make recommendations to maintain the parish’s fully tax- 10
exempt status.
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