Roman Catholic Diocese of Syracuse Parish Financial Summit Parish Budgeting January 21, 2017

Parish Financial Summit … January 2017 Parish Services "Too many people go through life waiting for things to happen instead of making them happen!” Sasha Azevedo, Actress Parish Financial Summit … January 2017

Parish Financial Summit … January 2017 Personnel & Contact Information Parish Services Nick Crosby Len Granozio Office: (315) 422-9089 Cell: (315) 882-1458 ncrosby@syracusediocese.org lgranozio@syrdio.org Bob Gomulka John Corey Cell: (607) 760-7741 Cell: (315) 635-1178 rgomulka@syrdio.org jcorey@syrdio.org Mark McManus Tom O’Connor Cell: (607) 237-9449 Office: (315) 579-0055 mmcmanus@syrdio.org toconnor@syrdio.org Parish Financial Summit … January 2017

Mission & Vision Parish Services To assist in the effective management of parishes by insuring accurate, timely, consistent, understandable financial and operational information for use by parish administrators, parishioners, and the diocese. Vision: All parishes within the Diocese of Syracuse operating independently and optimally with diocesan oversight. Parish Financial Summit … January 2017

Parish Financial Summit … January 2017 Parish Services Activities Parish Services Primary Activities: Perform Parish Reviews Assemble & Analyze Parish Financial Statements Provide Financial & Operational Assistance to Parishes Day to Day Accounting Issues QuickBooks & Qvinci Assistance in Payroll Conversion Transition of Parish Business Administrators Standardization of Policies & Procedures Problem Resolution & Execution of Special Projects Parish Financial Summit … January 2017

Parish Financial Summit … January 2017 Parish Financial Status "All organizations are driven by decisions, and the best decisions are driven by data. Good decisions are based on good data. LOGI Analytics Best Practices White Paper Parish Financial Summit … January 2017

Overview & Perspective Parish Financial Status Parishes Financial Reporting Template: Revenue Operating Revenues Expenses Wages & Benefits Other Operating Expenses Operating Expenses Net Operating Income / Loss Net Non-Operating Income / Loss Net Income / Loss Parish Financial Summit … January 2017

Overview & Perspective Parish Financial Status Parishes Financial Reporting Template: Revenue A. Offertory Collections B. Auxiliary Revenue C. Fundraising Operating Revenues Expenses Wages & Benefits Other Operating Expenses Operating Expenses Net Operating Income / Loss Net Non-Operating Income / Loss Net Income / Loss Parish Financial Summit … January 2017

Overview & Perspective Parish Financial Status Parishes Financial Reporting Template: Revenue Operating Revenues Expenses Wages & Benefits D. Salaries & Wages E. Priest Benefits F. Religious Allowances G. Employee Benefits Other Operating Expenses Operating Expenses Net Operating Income / Loss Net Non-Operating Income / Loss Net Income / Loss Parish Financial Summit … January 2017

Overview & Perspective Parish Financial Status Parishes Financial Reporting Template: Revenue Operating Revenues Expenses Wages & Benefits Other Operating Expenses H. Office Expenses I. Program Expenses J. Rectory Household K. Buildings L. Other Operating Expenses Operating Expenses Net Operating Income / Loss Net Non-Operating Income / Loss Net Income / Loss Parish Financial Summit … January 2017

Overview & Perspective Parish Financial Status Parishes Financial Reporting Template: Revenue Operating Revenues Expenses Wages & Benefits Other Operating Expenses Operating Expenses Net Operating Income / Loss Net Non-Operating Income / Loss M. Non-Operating Income N. Non-Operating Expenditures Net Income / Loss Parish Financial Summit … January 2017

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Summary of Results, Year Ended 6/30/16 Parish Financial Status Parishes Financial Results: 138 Parishes totaled $53.6 million in annual operating revenue Min: $8,475 Max: $1,377,699 Average: $388,710 55% had a decrease in revenue from the prior year, 45% had an increase Salaries, Wages & Benefits make up 48.8% of Operating Expenses Expenses related to Buildings (18.4%), Diocesan Support (15.7%), Programs (9.9%), and Office (7.2%) make up the remaining Operating Expenses In total, Parishes had a Net Operating Loss of $1.6 million 47.8% had Net Income from Operations, 52.2% had Net Operating Losses Non-operating Net Revenues of $4.5 million brought the composite Net Income for all parishes to $2,823,379 60.9% of parishes had Net Income, 39.1% had Net Losses Parish Financial Summit … January 2017

Parish Financial Summit … January 2017 Parish Budgeting “You can’t always get what you want, but if you try sometime, you just might find, you get what you need.” Mick Jagger and Keith Richards Parish Financial Summit … January 2017

Parish Financial Summit … January 2017 What is a Budget? Parish Budgeting A budget is an itemized summary of likely income and expenses for a given period or endeavor. Parish Financial Summit … January 2017

Parish Financial Summit … January 2017 What is a Budget? Parish Budgeting A budget is an itemized summary of likely income and expenses for a given period or endeavor. A budget provides a concrete, organized, and easily understood breakdown of how much money you have coming in and how much is going out. Parish Financial Summit … January 2017

Parish Financial Summit … January 2017 What is a Budget? Parish Budgeting A budget is an itemized summary of likely income and expenses for a given period or endeavor. A budget provides a concrete, organized, and easily understood breakdown of how much money you have coming in and how much is going out. A budget is an invaluable tool to help you prioritize your spending and manage your money. Parish Financial Summit … January 2017

Parish Financial Summit … January 2017 What is a Budget? Parish Budgeting A budget is an itemized summary of likely income and expenses for a given period or endeavor. A budget provides a concrete, organized, and easily understood breakdown of how much money you have coming in and how much is going out. A budget is an invaluable tool to help you prioritize your spending and manage your money. A budget will help identify wasteful expenditures, adapt quickly to changing financial situations, and assist in achieving financial goals. Parish Financial Summit … January 2017

Parish Financial Summit … January 2017 What is a Budget? Parish Budgeting A budget is an itemized summary of likely income and expenses for a given period or endeavor. A budget provides a concrete, organized, and easily understood breakdown of how much money you have coming in and how much is going out. A budget is an invaluable tool to help you prioritize your spending and manage your money. A budget will help identify wasteful expenditures, adapt quickly to changing financial situations, and assist in achieving financial goals. An accurate budget minimizes surprises. Parish Financial Summit … January 2017

Parish Financial Summit … January 2017 Purpose of a Budget Parish Budgeting The purpose of a Budget is threefold: To forecast Income and Expenditures To provide a basis for sound decision making To provide a tool for monitoring performance “Money has to serve, not to rule.” Pope Francis Parish Financial Summit … January 2017

Parish Financial Summit … January 2017 Purpose of a Budget Parish Budgeting The purpose of a Budget is threefold: To forecast Income and Expenditures Parishes operate on a Cash Basis Accurate Parish Budgets become Cash Flow Models Accurate Parish Budgets anticipate future problems To provide a basis for sound decision making To provide a tool for monitoring performance Parish Financial Summit … January 2017

Parish Financial Summit … January 2017 Purpose of a Budget Parish Budgeting The purpose of a Budget is threefold: To forecast Income and Expenditures To provide a basis for sound decision making Management decisions are most impactful when they are made as far in advance as possible and based on the best information possible To provide a tool for monitoring performance Parish Financial Summit … January 2017

Parish Financial Summit … January 2017 Purpose of a Budget Parish Budgeting The purpose of a Budget is threefold: To forecast Income and Expenditures To provide a basis for sound decision making To provide a tool for monitoring performance Budget comparisons should be included with monthly financial statements Comparisons answer some questions, and raise others: Are we doing what we started out to do? Do we need to make changes? When? Parish Financial Summit … January 2017

Parish Financial Summit … January 2017 Developing a Budget Parish Budgeting The Budget Process: Begin with the narrative What are we going to do? When are we going to do it? Quantify the narrative Revenue Start with Revenue Identify by source Use the Standard Chart of Accounts, i.e. Offertory Collections, Fundraising, etc. Refine by timing Christmas, Easter, Summer, events Budgeted Revenue = Upper Limit of Budgeted Expenses Parish Financial Summit … January 2017

Parish Financial Summit … January 2017 Developing a Budget Parish Budgeting The Budget Process: Quantify the narrative Expense Start with the largest component Wages & benefits Proceed in descending order Buildings, Diocesan Support, Programs, etc. Use the Standard Chart of Accounts #701 ... Clergy Remuneration, # 703 … Office Salaries, etc. Results should be as formulaic as possible A 3% pay raise = 3% increase in expense Refine by timing Seasonality of utility costs, payroll, etc. Parish Financial Summit … January 2017

Parish Financial Summit … January 2017 Developing a Budget Parish Budgeting The Budget Process: Review, revise, review, revise, review, revise ….. Address the obvious; Look for omissions Identify significant changes from prior year What changed? By how much? Why? Compare to prior year Disbursements Journal Why were expenditures so high last March? Compare to prior year Vendor List Is there a vendor missing? Do we have a new vendor? Are there twelve payments to National Grid? Incorporate Event budgets Are all Events included? Do all Events make money? Show it to everyone Parish Financial Summit … January 2017

Parish Financial Summit … January 2017 Developing a Budget Parish Budgeting The Budget Process: The Organization’s Mission and Business Plan should be obvious to anyone who reviews the Budget The budget is the Parish plan for the coming year reduced to numbers Test it on people not involved with its preparation Present it to the Parishioners before it is final Ask for feedback Revise “I like it when someone tells me 'I don't agree.' This is a true collaborator. When they say 'Oh, how great, how great, how great,' that's not useful.” Pope Francis Parish Financial Summit … January 2017

Parish Financial Summit … January 2017 How Can We Help "If you want to go quickly, go alone. If you want to go far, go together.“ African Proverb Parish Financial Summit … January 2017