BP 11122023 129pm - Flipbook - Page 58
Minimum Cash Requirement:
At a minimum, one-third of the total cost of the project must be in cash prior to the start of the
project. While this implies that two-thirds of a project can be financed, the wise pastor or school
principal will use caution when borrowing funds.
Financial Application:
The Financial Application is required for all capital projects. This document is used to capture
the recent financial history of the parish or school and to forecast the financial results into the
future. This forecast is used to determine the financial risk of a project.
Multi-Phase Projects:
A Master Plan may have multiple projects spread over many years. The establishment of a new
parish is a good example of a multi-phase project. For example, the new parish would need to
acquire land, then build a worship space, and later build classrooms, build or purchase a rectory,
etc. Multi-phase project require additional financial diligence to minimize risks. For instance, we
may require a financial application that extends 10 or 15 years to ensure that all parties have a
common understanding of the time table for full completion.
Final Approval: The Project Review Committee of the Finance Council recommends loans for
approval to the Archbishop. All loans are approved by the Archbishop. The loans are
administered through the AoA Deposit and Loan Fund LCC. A Promissory Note details the
terms and conditions of the loan.
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