3 Annual Parish Budget
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1 3 Annual Parish Budget Subsection 3.0 Introduction 3.1 Proposed Timetable for Budget Development and Approval 3.2 Implementing the Budget Process-Example 3.3 Overview of Parish Council Discussion of Proposed Budget-Example
2 3.0 Introduction Section 3.0 New Page 1 of 1 New Canon Law 1284 strongly recommends annual budgets and leaves it to the local (arch)diocese to set its own regulations in that regard. All parishes in the Archdiocese of St. Louis shall prepare annual budgets. It is a responsibility of the Parish Finance Council to assist in the preparation of, review of and performance monitoring vis-à-vis the annual budget. Parishes are encouraged to refer to Catholic Education: Continuing the Work of the Lord, the Administrative Manual for Catholic Elementary Schools and Parish Schools of Religion for school budgets. The materials in this section are intended to assist parish Pastors, Administrators and Finance Councils exercise their responsibilities in this regard. The proposed budget timeline that is included represents the combination of input received from two parishes within the Archdiocese of St. Louis.
3 3.1 Proposed Timetable for Budget Development and Approval Section Page 1 of 1 1 of 1 Date 02/01/08 05/01/07 Proposed Timetable September October November December School Board reviews marketing plan, parent survey, and mission statement. Principal and School Board prepare initial draft of next fiscal year s school budget. School Board presents school budget, including staffing and tuition levels, to Parish Finance Council. Parish Finance Council presents school budget to Pastor with Council s recommendation for approval or modification. Parish Finance Council notifies Parish Administration of budget guidelines, constraints, and due dates for submission of all administration and program budgets. January February Parish Administration mails information packets to school families. Packets include information regarding registration, tuition levels, and tuition assistance. Pastor or his designee decides and notifies school families of tuition assistance awards. School families register. Parish Administration reviews all budgets for accuracy, completion and compliance with budget guidelines and constraints. Parish Administration presents all budgets and consolidated budget to Parish Finance Council. March April Parish Administration and Parish Finance Council present budget to Pastor with recommendation for approval or modification. Parish Administration and Parish Finance Council present budget to Parish Council. Parish Council reviews budget and recommends approval or modification to Pastor. Pastor approves or modifies budget and Parish Administration notifies Program Coordinators of budget approval.
4 3.2 Implementing the Budget Process Example Section 3.2 New Page 1 of 6 New St. XXX Parish (example only) 1. Identify A. Those persons who are responsible for the development and management of the various parts of the parish budget. B. Those persons who are responsible for the management of funds for the various parish organizations or activities are identified. 2. Describe the responsibilities of the persons identified above and their relationship to the Parish Finance Council. 3. Write those responsible for the budget and the management of all parish funds: A. Stating the positive values we are trying to promote: 1. Shared Responsibility 2. Communication 3. Effective Planning for the Future 4. Accountability B. Announcing the dates of two meetings to be held in January on the budget process and the management of parish funds. 1. Proposed Dates: a) Day, month & date Developing and Managing the Parish Budget b) Day, month & date Managing the Funds of Parish Organizations 2. Possible topics to be addressed: a) Subsidies and Revenue Allotments b) Short and Long Range Planning c) Guidelines for the Management of Parish Funds 4. Identify members of the Finance Council who will plan the meeting and the ways in which they will be available to help with the process of implementing the parish budget.
5 3.2 Implementing the Budget Process Example Section 3.2 New Page 2 of 6 New St. XXX Parish (example only) Date Name Title Address Address Dear As we approach the end of another year, it is our hope that you have much to be thankful for and will most surely be able to look to the new year with confidence. Certainly in your service to our parish you have been a blessing for many others for which we are most grateful. You are also a part of our hope for the future as we strive to become even more a vital community of faith. For the past several years in particular, we have been moving toward a greater involvement of parish leaders in the administration and management of our parish. We believe that this partnership provides an opportunity for the sharing of responsibilities, effective communication and planning for the future, and a reasonable amount of accountability. We are committed as well to providing our parish leaders with the information and support they need to do this well. Therefore, we would like to invite you or the person of your committee or program responsible for the planning of activities and expenses to a meeting on day, month, date and times, in the Parish Center Meeting Room. In general, we are planning to provide you with information on our Parish s financial situation and on your role in the process for developing our budget for the coming year. A more detailed agenda will be sent to you in several weeks. We encourage you to make plans now to attend this important parish meeting. Thank you again for all that you do for our parish. May you be blessed with much hope and great sureness of God s love. Most sincerely, Father Pastor Mr. or Ms. Chairperson, Parish Finance Committee
6 3.2 Implementing the Budget Process Example Section 3.2 New Page 3 of 6 New St. XXX Parish (example only) General Purpose: For the past several years our parish has been moving toward a greater involvement of parish leaders in the administration and management of our parish. Our Parish Staff and Parish Finance Council believe that this partnership provides an opportunity for sharing responsibilities, effective communication and planning for the future, and a reasonable amount of accountability. They are also committed to providing parish leaders with the information and support they need to do this well. Our general purpose for this evening is to provide you with information on our parish s financial situation and on your role in the process for developing our budget for the coming year. Agenda 1. Purpose of the Meeting Time Name of Chairperson 2. Mission of the Finance Council Time Name of Chairperson 3. Facts About the Parish Time Name of Chairperson 4. How Has the Budget Been Prepared in the Past? Time Name of Speaker 5. How Are Budgets Normally Prepared? Time Name of Speaker 6. How Will Budgets Be Prepared This Year? Time Name of Speaker 7. Summary Time Name of Chairperson 8. Questions and Answers The members of the Finance Council at this time will respond to questions from those present concerning any aspect of these presentations. This is not envisioned as being a time for an extended discussion of particular issues, rather one of clarifying what has been presented and why it is a value for us to know this information to strive to accomplish these objectives. Time
7 3.2 Implementing the Budget Process Example Section 3.2 New Page 4 of 6 New 9. Begin Work on the Budget The members of the Finance Council will now begin to work with individual parish leaders or with persons in small cluster groups. Utilizing information from this meeting our goal is to assist each person or group to begin the process of developing their budget for the coming year. Time Special Note: Each person or group is strongly encouraged to bring with them to this meeting: 1. Any information they have on their current or past revenues and/or expenses; 2. Any particular statement of their mission and purposes which is meant to give direction and organization to their work; and, 3. Any plans for the future, which they have made or may be in the process of developing.
8 3.2 Implementing the Budget Process Example Section 3.2 New Page 5 of 6 New Instructions Organization/Committee: Contact Person: Phone Number: Date of Presentation: Organization Name Phone Number Date Date when you are scheduled to present your budget for the coming fiscal year to the Finance Council. If any change is anticipated or required, please contact. For further information or assistance with this process, contact. Numbered Columns Some parish organizations/committees have more than one revenue source (such as each sports program of the Athletic Association: soccer, volleyball, etc.) 1. If you have more than one revenue source and distinct expenses related to that activity or project, assign a separate column to each set of revenues and expenses. 2. If, in general, your organization/committee has only one source of revenues and one set of expenses related to your primary activity or purpose use only one column. Lettered Rows On this form (or a separate sheet if you find it more convenient) label each of the expenses related to the activities or purposes of your organization/committee. Be specific with a reasonable amount of detail. (If it seems to you to combine certain expenses for the sake of more simply presenting your budget, please do so). Projected Cash Balance Based on your expenditures to date and those you have planned for through (date): Parish Committees Enter here how much (if at all) you anticipate being under budget for FY on July 1 st, 200. (Note: Again this year we have anticipated a need for everyone to try to come in at % under budget.) Parish Organizations Enter here the cash balance you anticipate for FY. Subtract your projected actual expenses from your projected actual revenues.
9 3.2 Implementing the Budget Process Example Section 3.2 New Page 6 of 6 New Net Operating Result Using the completed form included with these instructions, subtract your total projected expenses from your total projected revenues for FY. Enter Operating Result at the bottom of each column. Enter on this line the total from the Operating Result row from the form included with these instructions. Projected Cash Balance At (Date) Subtract your projected net operating result for FY from your projected cash balance. Enter amount on this line. Projected Capital Outlays We encourage you to think 1 5 years ahead in your planning for such items. List here any such capital purchases or improvements. For each of those you anticipate during the coming fiscal year, on a separate sheet, please describe the need and the item/project in detail, including projected costs. When applicable, please refer to the financial and purchasing policies now in effect in your parish, which you recently received. Parish organizations (Parish Parents Association, PSR Parents Association, Parish Athletic Association, and Parish Bingo Committee) Before you begin the completion of this form, please refer to the principles for the management and use of funds generated by parish facilities and organizations, which you recently received. Please also attach a copy of your most recent financial report to the members of your organization.
10 3.3 Overview of Parish Council Discussion of Proposed Budget Example Section 3.3 New Page 1 of 4 New St. XXX Parish (example only) Introduction As in the past, the parish budget proposed for the coming fiscal year comes to the Parish Council having already been developed and discussed by various committees and parish groups. During the past three years in particular, this activity has increasingly been under the leadership and direction of the Parish Staff and Parish Finance Council. The work of the council in relation to our parish budget, therefore, is based on the presumption that these groups, because of their unique interest and expertise, have done their work well. The purpose and goal of the Council s discussions of the parish budget ought to be different and just as unique. As such the council s role might generally be described as one of critical reflection on the issue before us (the budget) and discussion of the issue from the perspective of faith (i.e., Is this the budget God wants us to have for the coming year?). Another way of stating the basic question might be: Considering all the resources available to us, should we be doing what we are proposing to do? (Rather than asking simply can we do what we are proposing to do.) With this in mind, the Executive Committee proposes the following process for the acceptance and approval of the budget being recommended by the Finance Council for the coming year. Step One Council review of the proposed budget and budget commentary as presented by the Parish Finance Council. This discussion may give rise to questions for clarification or necessary information, which would be, directed back to the Finance Council. Step Two Discussion by the Parish Council based on several focusing questions proposed by the Executive Committee. Further questions and/or recommendations for on-going consideration may be formulated by the Council, and forwarded to the appropriate parish committees, organizations, or the Parish Staff. Step Three Final consideration of questions and recommendations generated through Council discussion. The goals of this discussion will be to come to consensus concerning (1) an understanding of the budget and (2) to formulate a realistic statement concerning the hopes and recommendations for the parish budget. Step Four The Executive Committee will take responsibility for communicating the recommendations to the appropriate parish committees, organizations, and our Parish Staff. Encouragement will also be given for those groups to begin their own discussion of these matters, especially at the time when they begin to prepare the budget.
11 3.3 Overview of Parish Council Discussion of Proposed Budget Example Section 3.3 New Page 2 of 4 New Date 02/01/08 07/01/03 Focusing Questions for Parish Council Discussion Introduction Commonly this discussion would focus on the Mission Statement of a parish and how well that statement is reflected in the proposed budget. Since as yet we have not developed a mission statement for our parish the Executive Committee proposes that our discussion take place in light of the following questions. We are certainly interested in being financially responsible as a parish. Therefore, we are attempting now through these questions to further explore the methods and processes for evaluating our budget. In preparation for our meeting Council members are requested to consider the following questions and make written notes on your reflections. These will be the basis of our discussion of the budget for the current fiscal year, and the context out of which further questions and recommendations for the next fiscal year will be made. 1. In your judgment, as you consider the budget for the current fiscal year, what vision for the future of our parish is evident to you (i.e., How is the future embodied here?) As a Council we are striving to promote a way of life rooted in gospel values to encourage the celebration of our faith and prayer to enable service to others, and to foster the development of community. On the presumption that these are four essential characteristics of a Christian community, how well does our budget reflect our efforts to nurture these characteristics in our parish? In what ways might we be most challenged?
12 3.3 Overview of Parish Council Discussion of Proposed Budget Example Section 3.3 New Page 3 of 4 New 2. Briefly complete each of the following statements based on your consideration of the budget for the current fiscal year. Our efforts to promote a way of life rooted in gospel values are most evident in Our efforts realistically might be improved if we challenged ourselves to Our efforts to encourage the celebration of our faith in worship and prayer are most evident in Our efforts realistically might be improved if we challenged ourselves to Our efforts to enable service to others are most evident in Our efforts realistically might be improved if we challenged ourselves to Our efforts to foster the development of community are most evident in Our efforts realistically might be improved if we challenged ourselves to
13 3.3 Overview of Parish Council Discussion of Proposed Budget Example Section 3.3 New Page 4 of 4 New 3. When you think of the wider community in which we live and which we are called to transform (our local community, national society, world), in your judgment what three (3) issues most urgently ought our parish to be attending to now? Why? Issue Importance Issue Importance Issue Importance
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