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Parish Financial Management Handbook

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Parish Financial Management Handbook Parish Financial Management Handbook The Diocese of Sacramento No sound ought to be heard in the church but the healing voice of Christian charity. DIOCESE OF SACRAMENTO 2110 Broadway • Sacramento, California 95818 • 916/733-0200 • Fax 916/733-0215 OFFIOFFICECE OF OFTH THEE B BISHOPISHOP April 12, 2006 June, 2010 Dear Pastor/Parochial Administrator/Parish Steward: I am pleased to approve and present to you the “Parish Financial Management Handbook.” This assemblesDear Pastor/Parochial and expands Administrator/Parish policies and proc Steward:edures already in place and will assist each parish to be inI am full pleased compliance. to approve and present to you the “Parish Financial Management Handbook.” This assembles and expands policies and procedures already in place and will assist each parish to be in full compliance. The goal of this “Handbook” is to ensure uniform and sound financial procedures for all parishes The goal of this “Handbook” is to ensure uniform and sound financial procedures for all parishes and andentities entities of the of Diocese. the D ioceseIt will assist. It willeach assistparish eacto complyh parish with to Canon comply Law, with federal Canon and state Law, laws, feder laboral and slaws,tate landaw sdiocesan, labor lpolicies.aws, an Id hope dio cthatesa nthis po “Handbook”licies. I ho willpe taidha tyou thi ins “ implementingHandbook” andwil lmaintaining aid you in implementingpolicies and procedures and maintaining for the effective policie and ssound and procfinancialedure managements for the e ffeof ctiveyour parish and soundand parish-related financial morganizations.anagement of your parish and parish-related organizations. II uurgerge eacheach Pastor/Administrator/Steward Pastor/Administrator/Ste tow workard t oclosely work with clo stheely Finance with t hCouncile Fina ntoc becomee Coun acquaintedcil to bec ome with the “Handbook’s” contents. The parish bookkeeper must also become familiar with it. All involved are acquainted with the “Handbook’s” contents. The parish bookkeeper must also become familiar to implement fully the procedures outlined in the “Handbook.” with it. All involved are to implement fully the procedures outlined in the “Handbook.” The Diocesan Finance Office will conduct an annual review of the Handbook for possible updating of it. TYourhe D suggestionsiocesan F onin awaysnce toO fstreamline,fice will csimplifyonduct oran clarify annu proceduresal review willof t hbee mostHan dwelcome.book for possible updatingAs you know, of it. good Your stewardship suggestions of parish on resourcesways to willstreamline, optimize simplifythe ability orof parishesclarify proceto betterdures serve will the be mostmany welcome.needs of our faith communities. Promoting and maintaining the financial health of the parish will foster an atmosphere of trust and confidence. AsIn ouryou daily know, priestly good ministry, stewar wedship strive of to parish be living re sourceexampless will of God’s opti lovemiz ande the teachings. ability ofThe par callishes to to better switnesserve th toe mChristany isne alsoeds madeof ou visibler faith in c howomm weu nobtain,ities. manage,Promot anding expendand m afundsintai ninin theg t namehe fin ofa nourcia l health ofCatholic the pa community.rish will foster All who an benefit atmosphere from our of competenttrust and oversightconfidence of parish. temporalities need to have confidence in our stewardship. The “Handbook” will help to achieve this. IBen our assured daily of priestlymy prayers minist and bestry, wewishes. strive to be living examples of God’s love and teachings. The call to witness to Christ is also made visible in how we obtain, manage, and expend funds in the name of our Catholic community. All who benefit from our competent oversight of parish temporalities need to have confidencRespectfully,e in our stewardship. The “Handbook” will help to achieve this. Be assured of my prayers and best wishes. +Jaime Soto Sincerely in Christ, Bishop of Sacramento WILLIAM K. WEIGAND Bishop of Sacramento ms JS:mlf Contents The Diocese of Sacramento Parish Financial Management Handbook Contents Contents INTRODUCTION ..............................................................................................................................1 Purpose: Christian Mission and The Parish ...........................................................................2 About This Handbook ............................................................................................................4 Guide to Frequent Parish Business Practices ..........................................................................6 100 PARISH ADMINISTRATION.................................................................................................100-1 101 Pastor’s Fiscal Responsibilities ................................................................................100-2 101.1 Responsible Administration of Temporal Goods ..................................................100-3 101.2 Just Treatment of Lay Employees ..........................................................................100-5 102 Parish Finance Council .............................................................................................100-6 102.1 Purpose of Finance Council .................................................................................100-7 102.2 Membership ..........................................................................................................100-8 102.3 Terms of Office .....................................................................................................100-8 102.4 Officers .................................................................................................................100-8 102.5 Meetings ...............................................................................................................100-8 102.6 Competence ..........................................................................................................100-9 102.7 Role of the Council ...............................................................................................100-9 102.8 Confidentiality ......................................................................................................100-10 103 Annual Operating Budget .........................................................................................100-11 103.1 Purpose .................................................................................................................100-12 103.2 Preparation of the Annual Operating Budget ........................................................100-12 103.3 Operating Results .................................................................................................100-13 103.4 Monitoring ............................................................................................................100-13 104 Parish Financial Reporting ......................................................................................100-14 104.1 Monthly Reports ...................................................................................................100-15 104.2 Annual Parish Financial Report to the Diocese ....................................................100-15 104.3 Annual Report to the Faithful ...............................................................................100-15 104.4 Reporting by Parish Organizations and Societies .................................................100-15 104.5 Reporting by Parish Schools and Pre-schools .......................................................100-16 104.6 Parish Financial Operations Review .....................................................................100-16 200 PARISH FINANCIAL PROCEDURES...................................................................................200-1 201 Accounting ..................................................................................................................200-2 201.1 Purpose .................................................................................................................200-3 201.2 Basis of Accounting ...............................................................................................200-3 201.3 Chart of Accounts .................................................................................................200-3 201.4 Accounting Systems ..............................................................................................200-3 201.5 Parish Reviews and Assistance .............................................................................200-4 202 Standard Financial Procedures – Cash Management ...........................................200-5 202.1 Cash ......................................................................................................................200-6 202.2 Bank Accounts and Their Security .......................................................................200-6 202.3 Saving Accounts....................................................................................................200-9 202.4 Imprest Petty Cash Fund ......................................................................................200-9 202.5 Parish Ministries and Programs ............................................................................200-10 October 2012 Parish Financial Management Handbook 202.6 Parish Loan/Employee Advances Policy ...............................................................200-11 202.7 Gifts for Celebrations Such as Ordinations and Retirement .................................200-11
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