BP 11122023 129pm - Flipbook - Page 7
SECTION 3: FINANCIAL MANAGEMENT
Accounting Method: All parishes, missions, catholic centers and parish schools operate on a
modified cash basis of accounting. CENGI schools operate on an accrual basis.
Approved Accounting Software: Record keepers should maintain financial receipt records
using approved Archdiocesan software, which is restricted to authorized users. The archdiocesan
system for parish census information management is Parishsoft. No other new programs may be
used for this area without seeking permission from the Archbishop. The Archdiocesan Finance
Office will provide technical support for the ParishSoft financial software and Parishsoft church
management software. All accounting for parishes shall be done in accordance with the chart of
accounts designed for the accounting software system designated by the Archdiocesan Finance
Office.
Budget Policy: An annual budget should be prepared and entered into in the accounting systems
prior to the beginning of the fiscal year, submitted to the Leadership for approval, and reviewed
by the finance council and parish treasurer. Budgeting instructions are issued annually by the
Archdiocese’s Finance department.
Best practice: The entities’ Leadership and finance council should review actual to budgeted
amounts on a regular basis. Material variances should be investigated and resolved in a timely
manner.
Loan Policy: All parish, mission or agency loans shall be arranged through the Archdiocesan
Finance Office.
Loans may be obtained for capital projects based on capital campaigns and annual cash flow. See
Capital Projects Financing Guidelines for more information.
Savings Policy: All savings of entities and of the Archdiocese shall be deposited in the
archdiocesan Deposit and Loan program or the Common Fund of the Archdiocese. For purposes
of this policy, savings is defined as funds held for long term investment in the common fund of
the Archdiocese, or otherwise invested with the special permission of the Archbishop. The
minimum required deposit to the common fund is $100,000. This is not applicable to money
being kept on a very short-term basis, e.g. money collected for school tuitions.
Reserve for Capital Replacement Policy: Each entity shall establish a reserve for capital
replacements. Funds in the reserve account shall be held in the archdiocesan deposit and loan
fund, in a separate account, in the name of the entity. These funds may be used only for capital
replacements, not for ordinary repairs and maintenance.
Each entity shall devise a method, or formula, for funding its capital replacement reserve. The
proposed formula shall be submitted to the Archdiocesan Finance Office for review along with
the proposed annual budget. The amount to be funded shall be included in that budget. The
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