BP 11122023 129pm - Flipbook - Page 8
archdiocesan Finance Office is available to provide advice on how best to calculate the formula
for such a fund.
Leadership’s approval of capital expenditures and contracts is required.
Capital Expenditure Policy: Capital expenditures above a certain limit require prior approval
from the Archdiocesan Finance Office. Catholic Construction Services should be consulted on
any capital project, including repairs and maintenance. See Large Capital Project Process Roman Catholic Archdiocese of Atlanta | Atlanta, GA (archatl.com) The capital expenditure
limits shall be:
i.
ii.
iii.
iv.
If the annual offertory income of the parish exceeds $2,000,000, the limit is
$75,000;
If the annual offertory income of the parish is between $1,000,001 and
$2,000,000, the limit is $50,000;
If the annual offertory income of the parish is between $500,000 and $1,000,000,
the limit is $40,000; and
If the annual offertory income of the parish is below $500,000, the limit is
$20,000.
The established limit is for the purpose of an accountability process. Consequently, the policy
intends to cover the total cost of a particular project rather than the amount of individual checks.
See the Parish Finance Council Guidelines (specifically Extraordinary Administration section).
Journal Entry Approval: The accountant should document/explain all journal entries. Journal
entries should be approved before financial statements are generated; Leadership should initial
and date journal entries evidencing approval, and approved journal entries should be retained for
review by Finance Council and auditors. Recording transactions using journal entry process
results in a lack of vendor history. Accountant should try to limit the use of journal entries as
possible (i.e., payroll imports and posting corrections).
Closing: The books should be closed timely on a monthly basis. Once closed, the financial
periods should not be reopened. Contact the Archdiocese’s Finance Department for exceptions.
Departmental Accounting Reports: The accountant should provide monthly financial
information to individuals in leadership positions of department/ministry/organization: e.g.,
transactions booked to revenue and expense accounts and performance against budget. See the
Church Financial Review Checklist.
Monthly Financial Reports: A Statement of Activities (Profit & Loss) and a Statement of
Financial Position (Balance Sheet) should be prepared from the accounting software monthly.
The reports should be provided to the Leadership, parish treasurer, finance council, and school
advisory council directly and reviewed monthly. See the Pastor/Administrator Church Financial
Review Checklist or Principal Financial Checklist.
8
