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Parish Administrative Manual

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Parish Administrative Manual Diocese of Madison A A Parish Administrative Manual Revised May 2020 DECREE OF PROMULGATION Protocol No: 047-2017 Re: Parish Administrative Manual Bearing in mind the norm of canon 1276 of the Code of Canon Law, according to which the ordinary is to exercise careful vigilance over the administration of all the goods which belong to public juridic persons subject to him, including the ordering of the entire matter of the administration of ecclesiastical goods through the issuance of special instructions. Desiring to provide guidance to pastors, parochial administrators, business managers, bookkeepers, members of the parish board of directors (i.e. directors or trustees), and members of the parish finance council in the fulfillment their canonical responsibilities as stewards of the Catholic Church and her temporal goods. Wishing to promote a uniform method of administration and recordkeeping, and adoption of accounting principles and reporting throughout the Diocese of Madison, not only as a way of fostering sound stewardship but also as a means of ensuring a smooth transition when there is a change in pastor, business administrator or school principal. Now, therefore, I, the undersigned Bishop of Madison, hereby promulgate the 2017 edition of the Diocese of Madison Parish Administration Manual as an instruction in accordance with the norms of canons 34 and 1276, coming into force on July 1, 2017 and binding for all those who are entrusted with an office or function entailing parochial administration or the cooperation therein, whether directly in parishes or in schools or other parochial apostolates. And I order the publication of this instruction to all the aforementioned persons, whom I also charge with the duty of acquainting themselves with these policies and procedures and following them conscientiously in the discharge of their duties, and to whom I take this opportunity to express my sincere gratitude for their service as good stewards of the goods entrusted to the Church. Given at Madison this 15th day of July, in the year of our Lord 2017. Most Rev. Robert C . Morlino Bishop of Madison 0 F F I C E 0 F T H E B I S H O P Diocese of Madison • 702 S. High Point Road • Suite 225 • Madison, WI 53719 Phone: 608-821-3002 • Fax: 608-821-4552 • Email: [email protected] Diocese of Madison A A Using the Parish Administrative Manual Effectively To address the continuous growth in regulations and respond to concerns of parishes, policies within the Parish Administrative Manual (PAM) are periodically updated. The newest updates will be posted on the Diocese of Madison website, under the Office of Finance, Parish Support. In the bottom right corner of the page you will see a “Revised (month) (year)” marker, indicating when the information in that section was last updated. The PAM divides the various policies into a user codex. Policies pertinent to each user are then articulated in the Table of Contents without any overlap. By dividing the listed user roles at the parish level (meaning assigning a person the ownership of one or multiple user roles articulated in the Table of Contents, until all of the users have been assigned), the information within the PAM may be effectively managed and understood by the parish staff team as a whole, without any gaps in responsibility of the policies listed here-in. This helps to ensure that the parish is following the best practices understood to be most advantageous for the parish corporation. Items of critical importance are denoted using the following image . Various appendices exist at the end of the document and are, again, broken out into the same user codex. These appendices serve as supplemental information, samples of documents, and pertinent forms for those various users. Some of these documents are also available independently on the website, under the Parish Support Page. The Table of Contents is linked to each section within the document. Select the topic of interest by left clicking it to be brought to the page it is on. Strings of text highlighted in blue and underlined (this is an example) work as hyperlinks. Clicking these links will either open up a webpage for you or take you to another place within the document. You may press “Ctrl” + “f” at any time to search the document for a key word or phrase and jump to the section which contains the information you are after. Clicking any diocesan crest will bring you back to the Table of Contents. The Catholic Mutual Group logo will bring you to their website homepage. If you have any additional questions or are unable to locate a topic to address your question, please contact the Director of Parish Administrative Services. If he or she is unavailable, please contact the Office of Finance via e-mail at [email protected] or by phone at (608) 821- 3000, and someone will gladly assist you. All other pertinent Diocesan contacts are located on the Contact Page. Page | 1 Pastor Revised May 2020 Diocese of Madison A A Table of Contents Items of critical importance Financial Responsibility of the Parish Pastor 6 Guidelines for Sacramental Recordkeeping 10 Priest Compensation 22 Priests as Dual Status: Employee and Independent Contractor 27 Construction and Real Estate Policies 29 Creating or Modifying Endowment or Cemetery Perpetual Care Funds 35 Unrelated Business Endeavors by Parishes 36 Guidelines for Gift of Real Estate 42 Parish Finance Councils 1 Parish Investment Committees 4 Investment Guidelines 7 Budgeting and Reporting 1 Financial Reporting to Parishioners 5 Parish Financial Reviews 7 403(b) Plan Administration 11 Scrip Fundraising 12 Parish Accounting 1 Parish Cash Management 4 Parish Taxes 11 Parish Accounting – Standard Internal Controls 21 Recording Capital Assets 34 Page | 2 Pastor Revised May 2020 Recording Investments Gains and Losses 40 Recognizing and Recording Restricted Contributions 44 Net Assets: Owner’s Equity & Retained Earnings 46 Scrip Accounting 48 Mass Stipends 50 Collections (Funds) Held for Others Accounts 52 Recording Financial Information from Auxiliary/Affiliated Organizations 55 Cemetery Accounting 57 Required Employment Forms and Filings 1 Parish Employee vs. Independent Contractor 3 Federal Laws Regarding Worker Classification 5 Summary of Coverage 1 Best Practices 16 Parish Festival/High Risk Events 20 Unmanned Aerial Vehicles (UAV’s) 23 Facility Security 24 Youth Ministry 26 Volunteer Administration 29 Parish Nurse/Health Ministry 31 Online Training 33 Transportation 34 11 to 15 Passenger Van 35 Contract Review Policy 37 Renting Parish Facilities 39 Lease of Parish Facilities 44 Record Retention 1 Data Security 9 Cemetery Certification 19 Gaming 20 Page | 3 Pastor Revised May 2020 Capital Renovations and Construction 1 Capital Repairs and Replacements 6 Asbestos and Lead Paint 9 Guide to Priest Compensation 1 Additions to Sacramental Recordkeeping 3 Instruction Regarding the Creation and Restructuring of Parish Endowments and Cemetery Perpetual Care Funds 7 Old Endowment Fund Agreement 9 New Endowment Fund Agreement 18 Cemetery Perpetual Care Fund Agreement 27 Letter Accompanying the Annual Report to the Parishioners 32 Sample – Letter to the Parishioners on the Annual Report 33 Assessment Calculation Method 1 le – Letter to Parishioners Acknowledging Contributions 2 Sample – Letter to Parishioners Acknowledging No Contributions 3 Chart of Accounts 1 Parish Internal Control Questionnaire 18 Sample – Request to Transfer Funds 46 Sample – Check Request Form 47 Sample – Auxiliary Organization Activity for Bank Reconciliation 48 Sample – Bank Statement Review 50 Sample – Tracking Restricted Funds Spreadsheet 51 Sample – Counting Sheet 54 Mass Stipend Account Reconciliation Form 55 Mass Stipend Account Reconciliation 56 Sample – Permission for Delivery of Scrip and Waiver of Claim 1 Employer’s First Report of Injury or Disease 2 Page | 4 Pastor Revised May 2020 Reporting Guidelines for Work Place Injuries (Worker’s Compensation Insurance) 4 Cemetery Certification Form 1787 1 Page | 5 Pastor Revised May 2020 Diocese of Madison A A Pastor Financial Responsibility of the Parish Pastor The administration of the goods of the parish is to be carried out by the pastor under the vigilance of and in accord with instructions issued by the Bishop, who retains the right to intervene in case of negligence (Canon 1276; 1279§1). A. Requirements of a Pastor The Code of Canon Law (Canons 1284–1287) contains some general requirements for pastors on the administration of parish property, goods, and finances. These include: 1. Making certain that the parish is in compliance with all civil laws (c. 1284 §2, 3°). 2. Developing short-term and long-term financial budgets (c. 1284 §3). 3. Maintaining parish bank accounts and all investments (c. 1284 §2, 7°). 4. Maintaining adequate insurance for the protection of all Church properties (c. 1284 §2, 1°). 5. Archiving the documents and records on which the property rights of the Church are based, and depositing authentic copies of them in the archive of the diocese (c. 1284 §2, 9°). 6. Administering the lay personnel policies of the diocese (hiring, terminating, performance evaluations) (c. 1286). 7. Render an account to the faithful concerning the goods offered by the faithful to the Church. (provided yearly) (c. 1287 §2). In addition, the pastor is expected to: 1. Oversee the implementation of all parish policies, procedures, and guidelines as defined by the Diocese of Madison. 2. Oversee the use of parish assets, properties, and buildings. 3. Implement financial controls and the monitoring of such controls. 4. Create and administer parish spending policies. 5. Hold the annual Parish Corporation meeting in January and additional meetings as necessary or appropriate, including one to review the findings of the annual Parish Financial Review. Page | 6 Pastor Revised May 2020 6. Enlist the help of the Budget Sub-committee of the Finance Council in the preparation of parish and school budgets as well as the quarterly and annual financial reports to be issued to the parish.
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