PARISH FINANCE COUNCILS

Norms of the Diocese of Fresno

Effective March 1, 2006

 

Canon 537:  “Each parish is to have a finance council which is regulated by universal law 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.”   (Canon 532 and Canons 1281-1288 referred to in Canon 532 are found at the end of this document.)  The following provisions are norms, which shall be followed in all cases, except where the context shows that is provision is only a guideline or suggestion.

 

 

I. OVERALL PURPOSE OF THE PARISH FINANCE COUNCIL

 

  1. The Parish Finance Council (PFC) is consultative to the Pastor.  The role of the Parish Finance Council is to advise the pastor on important financial and related matters of parish business, and to assure that diocesan norms are being followed regarding financial matters, as well as to perform specific tasks that the pastor requests to be undertaken or elects to delegate.   Its recommendations are to be considered seriously by the pastor in making decisions that are his responsibility by Canon Law.

 

  1. A Parish Pastoral Council (PPC) over which the pastor presides, helps with the administration of pastoral aspects of parish life.  The Parish Finance Council, over which the pastor presides, helps with the administration of the temporal and financial concerns that support the pastoral aspects of parish life.

 

  1. The Diocesan Finance Officer is available as a resource and support to the pastor for administrative temporal concerns.  Contact with him by the Parish Finance Council members should be made in writing, with a copy of the letter given to the pastor.   Any written communication to the Diocesan Finance Officer, without the knowledge of the pastor, is only to be done for a serious financial reason and   ordinarily only with the knowledge of the other Parish Finance Council members.

 

 

II. MEMBERSHIP

 

  1. A Parish Finance Council may consist of not less than three nor more than seven lay members.  Each member is to be a practicing Catholic with expertise or experience in temporal affairs.  The associate pastor should be invited to the meetings to prepare him for his future ministry as a pastor.

 

  1. The term of all appointed members is three years, at which time the pastor is free to appoint others or to reappoint members as he sees fit.   Terms of all members end four months after a new pastor has taken office.  The new pastor at that time is to reappoint or appoint new members as he sees fit.  

 

  1. To ensure the stability of this canonical structure, the Pastor shall forward the names, addresses and phone numbers of the appointed and reappointed members to the Bishop who shall review them for his confirmation.  The qualification for each member to serve on the PFC is to be included.  The Pastor is to use the form provided in the Clergy Handbook.  For a serious reason the pastor may remove an individual from office before his or her term expires.  The pastor must state in writing to the Bishop the reason for this removal requesting his approbation.  Any vacancy for whatever reason should be filled promptly.

 

 

III. MEETINGS

 

  1. The pastor is the president of the Council.  He may if he wishes appoint a chairperson to run the meetings.

 

  1. The PFC shall have a minimum of quarterly meetings at which the income and expenditures are to be reviewed.  Other meetings may be held as demanded to fulfill its responsibilities.  Larger parishes would be expected to have monthly meetings to review the budget.

 

  1. A secretary shall  be appointed to take minutes of the meetings to have a permanent record of all matters discussed for later review as needed.  These minutes are to kept chronologically in a binder.  The Bishop or his delegate will review and sign these minutes at the Confirmation visit.

 

  1. For larger parishes, subcommittees may be set up as the pastor sees necessary to fulfill the responsibilities of the Parish Finance Council.   Non PFC members may be members of these subcommittees but they need the approval of the pastor.

 

 

IV. RESPONSIBILITIES

      (These responsibilities are Diocesan norms unless the context shows specifically that a matter is a guideline or suggestion.)

  1. Members are to familiarize themselves with all diocesan policies, norms and guidelines, regarding financial and temporal affairs.  These include:

a.       Directions for Parish Finance Council

b.      Diocesan Policies regarding Administration of Goods.

c.   Stipend policy for the Diocese regarding the salary of the priest and

sacramental stipends.

    1. Recommendation for business (ministry) and automobile expenses.
    2. Diocesan Deposit and Loan Fund Policy
    3. Construction policies and guidelines
    4. Instructions and Forms for parish inventories

 

  1. Aid the pastor to ensure that all diocesan policies and norms are followed in the parish regarding the administration of all temporal affairs in the parish  (Canon 532).

 

  1. Develop with the pastor a parish budget process which results in an annual parish budget.  This process should involve those responsible for parish programs and take into account parish and diocesan pastoral goals and priorities. (Canon1284.3)

 

  1. Review actual income and expenditures, discuss variances with the budget and make recommendations to the pastor. (Canon 1284.2.7)

 

  1. Assist the pastor to provide the parishioners with an annual financial report (Canon 1284.2.8)) and to assist the pastor to provide regular financial reports to the faithful in the Sunday bulletin. (Canon 1287.2)

 

  1. Be consulted by the pastor and to give advice for any expenditure in excess of $10,000 before the request is made by the pastor of the Bishop. (Canon 1281.2)

 

  1. Be consulted by the pastor and give advice for any other extraordinary decisions regarding temporal affairs of the parish (e.g. construction, contractual arrangements) before the request is made by the pastor of the Bishop.

 

  1. For the sake of accountability the pastor will determine with the Parish Finance Council reasonable household expenses reimbursable to the priest.

 

  1. Assure that ministry related expenses that are reimbursed (priest, seminarians, employees, volunteers) are valid and clearly itemized on reimbursement check request forms with receipts attached.  (Examples of ministry related expenses for the priest: dues and subscriptions, clerical clothing and cleaning, cell phone except for personal calls, business related entertainment and travel.  For basic health and wellness programs and other items reimbursable refer to the Priests’ Benefits Table.

 

  1. Review activity summaries of parish credit card(s) and assure that diocesan policies are followed with these cards.

 

  1. Review bookkeeping and accounting procedures for the parish and school and assure that internal controls are in place and being followed.

 

  1. Review and suggest security and safety procedures for handling, counting, and depositing of parish monies and assure that diocesan norms are followed.

 

  1. Assure that the parish and school develop a complete inventory of all assets with photos or video and that these inventories are updated every three years and at the time of the transfer of the Pastor. (Canon 1283.2 and .3)  Forms for these directions are found in the Clergy handbook and are to signed by the Pastor and the chairman of the Parish Finance Council and the principal for the school.

 

  1.  Suggest possible ways of improving administrative efficiency and lowering overall costs.

 

  1. Beyond the above points, tasks and responsibilities will vary depending on such variables as parish size, complexity of operations, financial position, and particular leadership style of the pastor.  Below are listed examples of other tasks the pastor may wish to entrust or delegate to the Parish Finance Council.

 

a.       Periodic review of the parish buildings and grounds and suggest procedures to help with risk management.

    1. Recommend the level of salaries for parish employees.
    2. Prepare forms for request for loans from the Deposit and Loan Fund.
    3. Conduct long range financial planning with regard to funding operational and capital needs, taking into account future growth in the area.
    4. Coordinate and assist in parish fund raising programs and promote the understanding of Christian tithing and stewardship.
    5. Work in conjunction with other parish committees or organizations as directed by the pastor, e.g., Parish Council, Building Committee, Major fund raising committee, etc.

 

V.   APPLICABLE CANON LAW REGARDING TEMPORAL GOODS

 

Can. 532 In all juridical matters, the parish priest acts in the person of the parish, in accordance with the law. He is to ensure that the parish goods are administered in accordance with canon. 1281-1288.

C  1281 §1 Without prejudice to the provisions of the statutes. administrators act invalidly when they go beyond the limits and manner of ordinary administration, unless they have first received in writing from the Ordinary the faculty to do so.

§2 The statutes are to determine what acts go beyond the limits and manner of ordinary administration. If the statutes are silent on this point, it is for the diocesan Bishop, after consulting the finance committee, to determine these acts for the persons subject to him.

§3 Except and insofar as it is to its benefit, a juridical person is not held responsible for the invalid actions of its administrators. The juridical person is, however, responsible when such actions are valid but unlawful. without prejudice to its right to bring an action or have recourse against the administrators who have caused it damage.

Can. 1282 All persons, whether clerics or laity, who lawfully take part in the administration of ecclesiastical goods. are bound to fulfil their duties in the name of the Church, in accordance with the law.

Can. 1283 Before administrators undertake their duties:

10 they must take an oath. in the presence of the Ordinary or his

delegate, that they will well and truly perform their office;

2° they are to draw up a clear and accurate inventory, to be signed by themselves. of all immovable goods, of those movable goods which are precious or of a high cultural value, and of all other goods, with a description and an estimate of their value; when this has been compiled, it is to he certified as correct;

3 ° one copy of this inventory is to be kept in the administration office and another in the curial archive; any change which takes place in the property is to be noted on both copies.

 

Can. 1284 § 1 All administrators are to perform their duties with the diligence of a good householder.

§2 Therefore they must:

lO be vigilant that no goods placed in their care in any way perish or suffer damage; to this end they are, to the extent necessary, to arrange insurance contracts;

2" ensure that the ownership of ecclesiastical goods is safeguarded in ways which are valid in civil law;

3° observe the provisions of canon and civil law. and the stipulations of the founder or donor or lawful authority; they are to take special care that damage wilt not be suffered by the Church through the non-observance of the civil law;

4° seek accurately and at the proper time the income and produce of the goods, guard them securely and expend them in accordance with the wishes of the founder or lawful norms;

5° at the proper time pay the interest which is due by reason of a loan or  pledge, and take care that in due time the capital is repaid;

60 with the consent of the Ordinary make use of money which is surplus after payment of expenses and which can be profitably invested for the purposes of the juridical person;

7° keep accurate records of income and expenditure;

8o draw' up an account of their administration at the end of each year;

90 keep in order and preserve in a convenient and suitable archive the documents and records establishing the rights of the Church or institute to its goods; where conveniently possible, authentic copies must be placed in the curial archives.

§3 It is earnestly recommended that administrators draw up each year a budget of income and expenditure. However, it is left to particular law to make this an obligation and to determine more precisely how it is to be presented.

Can. 1285 Solely within the limits of ordinary administration, adminis­trators are allowed to make gifts for pious purposes or christian charity out of the movable goods which do not form part of the stable patrimony.

Can. 1286 Administrators of temporal goods:

1’ in making contracts of employment, are accurately to observe also, according to the principles taught by the Church, the civil laws relating to labour and social life;

20 are to pay to those who work for them under contract a just and honest wage which will be sufficient to provide for their needs and those of their dependents.

Can.1287 §1 Where ecclesiastical goods of any kind are not lawfully withdrawn from the power of governance of the diocesan Bishop, their administrators, both clerical and lay, are bound to submit each year to the local Ordinary an account of their administration, which he is to pass on to his finance committee for examination. Any contrary custom is reprob­ated.

§2 Administrators are to render accounts to the faithful concerning the goods they have given to the Church, in accordance with the norms to be laid down by particular law.

Can. 1288 Administrators are not to begin legal proceedings in the name of a public juridical person, nor are they to contest them in a secular court, without first obtaining the written permission of their proper Ordinary.                                 +++

REQUEST FOR CONFIRMATION OF PARISH FINANCE COUNCIL MEMBERS

(This is a sample page provided with the Diocesan norms.  Do not send this page in.   Photocopy this page to send in your request.)

According to the norms, the Parish Finance Council may consist of not less than three nor more than seven lay members.  Each member is to be a practicing Catholic with expertise or experience in temporal affairs.  Terms of all members end four months after a new pastor has taken office.  The new pastor at that time is to reappoint or appoint new members as he sees fit.  To ensure the stability of this canonical structure, the Bishop confirms the members.   This is done when the pastor sends in the names and addresses to the Bishop’s office on the form provided.  If a pastor removes an individual from office before his term expires, the pastor is to write a letter to the Bishop stating the reasons. 

 

                 NAME                                   ADDRESS                           CITY                 ZIP

 

1. ________________________   ______________________   ______________  ______ 

 

        Phone _______________      Qualification _________________________________

 

2. ________________________   ______________________   ______________  ______ 

 

        Phone _______________      Qualification_________________________________

 

3. ________________________   ______________________   ______________  ______ 

 

        Phone _______________      Qualification_________________________________

 

4. ________________________   ______________________   ______________  ______ 

 

        Phone _______________      Qualification _________________________________

 

5. ________________________   ______________________   ______________  ______ 

 

        Phone _______________      Qualification _________________________________

 

6. ________________________   ______________________   ______________  ______ 

 

        Phone _______________      Qualification _________________________________

 

7. ________________________   ______________________   ______________  ______ 

 

        Phone _______________      Qualification _________________________________

 

I request the Bishop to confirm the above as members of the Parish Finance Council.

 

PASTOR’S SIGNATURE_________________________ Parish ___________________

 

City ___________________________________________ Date ____________________

     Send this form directly to the Bishop for his confirmation.  You will not receive written     

     confirmation as it comes automatically, unless you are notified otherwise by the Bishop.   +++