FINANCE COUNCIL
Canon 537 - Each parish is to have a finance council which is regulated by universal laws as well as by norms issued by the diocesan bishop; in this council the Christian faithful, selected according to the same norms, aid the pastor in the administration of parish goods with due regard for the prescription of canon 532.
The Finance Council is a consultative body which assists the Pastor to act justly and prudently in the administration of the parish’s temporal goods. The ways by which it fulfills its shared responsibility are: the spiritual enrichment and growth of the members; formation of financial policies, including the devising and regular monitoring of a parish budget; long-range financial planning; preparation of an annual financial report: and attention to civil law pertaining to the administration of the temporal goods of the parish. The Finance Council is to present a summary report to the parish quarterly and an end-of-the-year report following the completion of the fiscal year each June 30 (reports are presented in October).
Meetings of the Finance Council are open to members of the parish. Any parishioner having a matter to bring before the Finance Council for discussion must contact a Council member at least one week prior to the meeting so the matter may be included on the meeting agenda.
The Finance Council is a consultative body which assists the Pastor to act justly and prudently in the administration of the parish’s temporal goods. The ways by which it fulfills its shared responsibility are: the spiritual enrichment and growth of the members; formation of financial policies, including the devising and regular monitoring of a parish budget; long-range financial planning; preparation of an annual financial report: and attention to civil law pertaining to the administration of the temporal goods of the parish. The Finance Council is to present a summary report to the parish quarterly and an end-of-the-year report following the completion of the fiscal year each June 30 (reports are presented in October).
Meetings of the Finance Council are open to members of the parish. Any parishioner having a matter to bring before the Finance Council for discussion must contact a Council member at least one week prior to the meeting so the matter may be included on the meeting agenda.
Finance Council Guidelines
I. Purpose
The purpose of these norms is to clarify the responsibilities of those persons named as Finance Council members of the parish established pursuant to Canon 537.
II. Parish Finance Councils As Defined in Canon Law
Canon 537 - Each parish is to have a finance council which is regulated by universal laws as well as by norms issued by the diocesan bishop; in this council the Christian faithful, selected according to the same norms, aid the pastor in the administration of parish goods with due regard for the prescription of can. 532
Canon 532 states the Pastor represents the parish in all juridic affairs in accord with the norm of law; he is to see to it that the goods of the parish are administered in accord with the norms of canons 1281-1288.
III. Norms
A) Membership
The membership of the Finance Council shall consist of six persons appointed by the Pastor who are skilled in accounting and finance, property and personnel management and business law. To be considered for appointment the candidate must be a practicing Catholic in good standing who participates in the ongoing life of the parish and one who is truly expert in financial affairs or business law with outstanding integrity (canon 492). He or she must be a member of the parish (i.e. enjoy domicile or quasi-domicile within the territorial boundaries of the parish or be registered in the parish). Members cannot be related to the pastor. Existing members of the Finance Council may assist the Pastor in identification and orientation of new members.
There should be two officers named:
Chairperson – Prepares agendas in consultation with Pastor and runs the council meetings. Chairperson should be elected by the council members or be appointed by the pastor for a renewable term of office.
Secretary – Keeps track of attendance at meetings and keeps accurate minutes of all meetings. Copies of meeting minutes as well as documents and other information pertinent to issues discussed during meetings are to be maintained by the Secretary, copies of which must be secured and maintained at the parish. Secretary could be elected or appointed for a renewable term of office.
The pastor is not a member of the Finance Council since he cannot be a member of a group that advises him. Parochial Vicars and assigned deacons may participate in Finance Council meetings as non-voting participants.
Unlike the Pastoral Council, which is representative of the entire parish, the Finance Council assists the Pastor in a specific area of pastoral ministry: the administration of parish goods. Therefore, the members of the Finance Council should possess the talents and skills to fulfill the ministry.
Members of the Finance Council may not be employees of the parish (i.e. business managers, accountants, bookkeepers). No member of the Finance Council should use such position, or use any information obtained while serving in such position, in any manner that creates, tends to create, or even appears to create any conflict of any kind between the member and the parish nor any circumstance or possibility of personal profit or advancement.
B) Terms of Office
Members of the Finance Council are to be appointed by the Pastor in writing for one renewable three-year term of office to coincide with the beginning of the fiscal year, that is, July 1. The terms of office may initially be staggered, or reappointed for three years after the first year, another after the second, etc. When a new Pastor takes office, if the current members have less than one year remaining on their three year term, the new pastor is free to extend their membership for an additional year if he wishes. The new Pastor has the right to dissolve the Finance Council in order to create a new one.
A council member loses his or her seat on the Council at the completion of term if not renewed, by resignation, breach of confidentiality, abandonment of duties, death, moving out of the parish territory, unless the member continues to be a registered member of the parish or if he or she is no longer a member in good standing.
C) Duties and Responsibilities
The Finance Council is a consultative body which assists the Pastor to act justly and prudently in the administration of the parish’s temporal goods. Canon 127 states “If council is required, the act of a superior who does not hear those persons is invalid; although not obliged to accept their opinion even if unanimous, a superior is nonetheless not to act contrary to that opinion, especially if unanimous, without a reason which is overriding in the superior’s judgment.”
The ways by which it fulfills its shared responsibility are: the spiritual enrichment and growth of the members; formation of financial policies, including the devising and regular monitoring of a parish budget; long-range financial planning; preparation of an annual financial report: and attention to civil law pertaining to the administration of the temporal goods of the parish.
A clear distinction must be maintained between consulting with and advising the pastor on financial policy formation, which is the proper work of the Finance Council, and administration which is the proper work of the pastor and parish staff. At the same time, members of the parish staff should offer to the Finance Council their knowledge and judgment regarding questions under discussion.
All members of the Finance Council will agree in an oath of confidentiality to maintain discretion in matters as the Pastor may direct. Such matters may include: human resources, contributions of individuals, etc. A breach of confidentiality will result in the dismissal of the member from the Council.
Pastors and Finance Council members have a responsibility to report practices which violate applicable law. Such a report must be made to the Diocesan Finance Officer or Vicar General of the Diocese of Charleston. In addition, if consultation with the Finance Council results in recommendations to the Pastor that are not accepted and the Finance Council is concerned that an adverse financial situation will result, the members may seek advice from the Diocesan Finance Officer or Vicar General.
The Finance Council shall be responsible to assist:
1) In drawing up an annual parish budget of income and expenditures. (Canon 1284.3)
2) In preparing the annual report on the parish for review of the diocesan finance committee (Canon 1287.1)
3) In rendering an account to the faithful concerning the goods they give to the parish (Canon 1287.2) in the manner to be determined which will include presentation to the Pastoral Council and a written or printed form provided to the parishioners along with a copy of the summary annual budget.
4) In offering to the Bishop, through the Pastor, the opinion of the Finance Council on the “more important” financial business of the parish; i.e. those matters which exceed the pastor’s approved level of ordinary administration (i.e. “extraordinary acts of administration”).
5) In developing an inventory of parochial movable and immovable goods.
6) In reviewing from time to time and at the discretion of the Pastor any particular items of administration beyond the budget, which seem of greater significance or for which the Pastor wishes advice.
Guidance
The Finance Council has two main areas of responsibility: 1) Administration and Finance, and 2) Stewardship and Development. Following is a detailed list of the general duties that fall within each area of responsibility.
Administration and Finance
Review of general financial condition – Review parish finances taking into consideration historical and current trends in parish revenue and expenses, to ensure that financial resources are in accordance with parish pastoral plan and good fiscal management.
Development and subsequent monitoring of annual operating and capital budgets in light of goals and objectives of the pastoral plan.
Maintain a current long range plan for debt repayment.
Ensure that proper internal controls and procedures are in place so that cash and other resources are used for their intended purposes.
Review, in their entirety, and sign all financial reports prior to submission to the Diocesan Finance Office, ensuring timely and accurate reporting.
Prepare and deliver financial reports to the parish congregation on at least an annual basis.
Ensure familiarity with Diocesan financial requirements, policies and procedures.
Review and advise on all contracts being entered into by the parish.
Review audit reports and recommendations and assist drafting appropriate response.
Assist in the evaluation of accounting and bookkeeping support at the parish and make recommendations as to the need to strengthen or provide assistance to this function.
Perform follow-up to audit recommendation and related responses to ensure issues are addressed.
Advise pastor on issues involving salary administration and employment practices.
Review and opine on parish fund raising programs.
Stewardship and Development
The following duties will fall to Finance Council for oversight and control:
Programs that focus on increased levels of giving based on individual parish needs.
Capital campaign or debt reduction programs designed to raise funds for parish facilities, which consist of solicitation for one-time gifts or multi-year pledges.
Programs designed to provide long-term financial support involving planned giving or endowment vehicles.
D) Meetings
Meetings of the Finance Council are to be held when necessary, but not less than quarterly. Meetings are to be attended by the Pastor, officers and at least a quorum of the council membership. A summary of topics discussed are to be recorded and distributed to all members prior to the next regularly scheduled meeting.
Guidance
A quorum of the membership is the minimum number of members who must attend and which members are to be included
Minimum number is over one half the membership
Attendance must include Pastor or his designee (e.g. Parochial Vicar)
Meetings should have an agenda that consist of the following:
Opening prayer
Approval of the summary report from the previous meeting
Review of monthly or quarterly financial statements
Old business (to include discussion and/or disposition of issues raised previously)
New Business
IV. Mode of Operations
The mode of operations for the Finance Council should be conciliar-consensus. While the Code of Canon Law places the authority and responsibility on the Pastor, it does not do so to the exclusion of the participative process. The Code intends a cooperative Pastor-Council relationship for the best interests of the parish community and the diocese.
The Finance Council collaborates with the Pastoral Council so that the parish’s pastoral plan is financially feasible, and that the budget which the Finance Council develops provides sufficient support, insofar as is economically feasible, for implementation of the parish’s pastoral plan.
A representative of the Finance Council should be in attendance at each Pastoral Council meeting.
Rev. 101718
I. Purpose
The purpose of these norms is to clarify the responsibilities of those persons named as Finance Council members of the parish established pursuant to Canon 537.
II. Parish Finance Councils As Defined in Canon Law
Canon 537 - Each parish is to have a finance council which is regulated by universal laws as well as by norms issued by the diocesan bishop; in this council the Christian faithful, selected according to the same norms, aid the pastor in the administration of parish goods with due regard for the prescription of can. 532
Canon 532 states the Pastor represents the parish in all juridic affairs in accord with the norm of law; he is to see to it that the goods of the parish are administered in accord with the norms of canons 1281-1288.
III. Norms
A) Membership
The membership of the Finance Council shall consist of six persons appointed by the Pastor who are skilled in accounting and finance, property and personnel management and business law. To be considered for appointment the candidate must be a practicing Catholic in good standing who participates in the ongoing life of the parish and one who is truly expert in financial affairs or business law with outstanding integrity (canon 492). He or she must be a member of the parish (i.e. enjoy domicile or quasi-domicile within the territorial boundaries of the parish or be registered in the parish). Members cannot be related to the pastor. Existing members of the Finance Council may assist the Pastor in identification and orientation of new members.
There should be two officers named:
Chairperson – Prepares agendas in consultation with Pastor and runs the council meetings. Chairperson should be elected by the council members or be appointed by the pastor for a renewable term of office.
Secretary – Keeps track of attendance at meetings and keeps accurate minutes of all meetings. Copies of meeting minutes as well as documents and other information pertinent to issues discussed during meetings are to be maintained by the Secretary, copies of which must be secured and maintained at the parish. Secretary could be elected or appointed for a renewable term of office.
The pastor is not a member of the Finance Council since he cannot be a member of a group that advises him. Parochial Vicars and assigned deacons may participate in Finance Council meetings as non-voting participants.
Unlike the Pastoral Council, which is representative of the entire parish, the Finance Council assists the Pastor in a specific area of pastoral ministry: the administration of parish goods. Therefore, the members of the Finance Council should possess the talents and skills to fulfill the ministry.
Members of the Finance Council may not be employees of the parish (i.e. business managers, accountants, bookkeepers). No member of the Finance Council should use such position, or use any information obtained while serving in such position, in any manner that creates, tends to create, or even appears to create any conflict of any kind between the member and the parish nor any circumstance or possibility of personal profit or advancement.
B) Terms of Office
Members of the Finance Council are to be appointed by the Pastor in writing for one renewable three-year term of office to coincide with the beginning of the fiscal year, that is, July 1. The terms of office may initially be staggered, or reappointed for three years after the first year, another after the second, etc. When a new Pastor takes office, if the current members have less than one year remaining on their three year term, the new pastor is free to extend their membership for an additional year if he wishes. The new Pastor has the right to dissolve the Finance Council in order to create a new one.
A council member loses his or her seat on the Council at the completion of term if not renewed, by resignation, breach of confidentiality, abandonment of duties, death, moving out of the parish territory, unless the member continues to be a registered member of the parish or if he or she is no longer a member in good standing.
C) Duties and Responsibilities
The Finance Council is a consultative body which assists the Pastor to act justly and prudently in the administration of the parish’s temporal goods. Canon 127 states “If council is required, the act of a superior who does not hear those persons is invalid; although not obliged to accept their opinion even if unanimous, a superior is nonetheless not to act contrary to that opinion, especially if unanimous, without a reason which is overriding in the superior’s judgment.”
The ways by which it fulfills its shared responsibility are: the spiritual enrichment and growth of the members; formation of financial policies, including the devising and regular monitoring of a parish budget; long-range financial planning; preparation of an annual financial report: and attention to civil law pertaining to the administration of the temporal goods of the parish.
A clear distinction must be maintained between consulting with and advising the pastor on financial policy formation, which is the proper work of the Finance Council, and administration which is the proper work of the pastor and parish staff. At the same time, members of the parish staff should offer to the Finance Council their knowledge and judgment regarding questions under discussion.
All members of the Finance Council will agree in an oath of confidentiality to maintain discretion in matters as the Pastor may direct. Such matters may include: human resources, contributions of individuals, etc. A breach of confidentiality will result in the dismissal of the member from the Council.
Pastors and Finance Council members have a responsibility to report practices which violate applicable law. Such a report must be made to the Diocesan Finance Officer or Vicar General of the Diocese of Charleston. In addition, if consultation with the Finance Council results in recommendations to the Pastor that are not accepted and the Finance Council is concerned that an adverse financial situation will result, the members may seek advice from the Diocesan Finance Officer or Vicar General.
The Finance Council shall be responsible to assist:
1) In drawing up an annual parish budget of income and expenditures. (Canon 1284.3)
2) In preparing the annual report on the parish for review of the diocesan finance committee (Canon 1287.1)
3) In rendering an account to the faithful concerning the goods they give to the parish (Canon 1287.2) in the manner to be determined which will include presentation to the Pastoral Council and a written or printed form provided to the parishioners along with a copy of the summary annual budget.
4) In offering to the Bishop, through the Pastor, the opinion of the Finance Council on the “more important” financial business of the parish; i.e. those matters which exceed the pastor’s approved level of ordinary administration (i.e. “extraordinary acts of administration”).
5) In developing an inventory of parochial movable and immovable goods.
6) In reviewing from time to time and at the discretion of the Pastor any particular items of administration beyond the budget, which seem of greater significance or for which the Pastor wishes advice.
Guidance
The Finance Council has two main areas of responsibility: 1) Administration and Finance, and 2) Stewardship and Development. Following is a detailed list of the general duties that fall within each area of responsibility.
Administration and Finance
Review of general financial condition – Review parish finances taking into consideration historical and current trends in parish revenue and expenses, to ensure that financial resources are in accordance with parish pastoral plan and good fiscal management.
Development and subsequent monitoring of annual operating and capital budgets in light of goals and objectives of the pastoral plan.
Maintain a current long range plan for debt repayment.
Ensure that proper internal controls and procedures are in place so that cash and other resources are used for their intended purposes.
Review, in their entirety, and sign all financial reports prior to submission to the Diocesan Finance Office, ensuring timely and accurate reporting.
Prepare and deliver financial reports to the parish congregation on at least an annual basis.
Ensure familiarity with Diocesan financial requirements, policies and procedures.
Review and advise on all contracts being entered into by the parish.
Review audit reports and recommendations and assist drafting appropriate response.
Assist in the evaluation of accounting and bookkeeping support at the parish and make recommendations as to the need to strengthen or provide assistance to this function.
Perform follow-up to audit recommendation and related responses to ensure issues are addressed.
Advise pastor on issues involving salary administration and employment practices.
Review and opine on parish fund raising programs.
Stewardship and Development
The following duties will fall to Finance Council for oversight and control:
Programs that focus on increased levels of giving based on individual parish needs.
Capital campaign or debt reduction programs designed to raise funds for parish facilities, which consist of solicitation for one-time gifts or multi-year pledges.
Programs designed to provide long-term financial support involving planned giving or endowment vehicles.
D) Meetings
Meetings of the Finance Council are to be held when necessary, but not less than quarterly. Meetings are to be attended by the Pastor, officers and at least a quorum of the council membership. A summary of topics discussed are to be recorded and distributed to all members prior to the next regularly scheduled meeting.
Guidance
A quorum of the membership is the minimum number of members who must attend and which members are to be included
Minimum number is over one half the membership
Attendance must include Pastor or his designee (e.g. Parochial Vicar)
Meetings should have an agenda that consist of the following:
Opening prayer
Approval of the summary report from the previous meeting
Review of monthly or quarterly financial statements
Old business (to include discussion and/or disposition of issues raised previously)
New Business
IV. Mode of Operations
The mode of operations for the Finance Council should be conciliar-consensus. While the Code of Canon Law places the authority and responsibility on the Pastor, it does not do so to the exclusion of the participative process. The Code intends a cooperative Pastor-Council relationship for the best interests of the parish community and the diocese.
The Finance Council collaborates with the Pastoral Council so that the parish’s pastoral plan is financially feasible, and that the budget which the Finance Council develops provides sufficient support, insofar as is economically feasible, for implementation of the parish’s pastoral plan.
A representative of the Finance Council should be in attendance at each Pastoral Council meeting.
Rev. 101718
Fiscal Year 20/21 Financial Statements
