Diocesan Finance Update Diocese of St. Petersburg June 20, 2018 This template can be used as a starter file for presenting training materials in a group setting. Sections Right-click on a slide to add sections. Sections can help to organize your slides or facilitate collaboration between multiple authors. Notes Use the Notes section for delivery notes or to provide additional details for the audience. View these notes in Presentation View during your presentation. Keep in mind the font size (important for accessibility, visibility, videotaping, and online production) Coordinated colors Pay particular attention to the graphs, charts, and text boxes. Consider that attendees will print in black and white or grayscale. Run a test print to make sure your colors work when printed in pure black and white and grayscale. Graphics, tables, and graphs Keep it simple: If possible, use consistent, non-distracting styles and colors. Label all graphs and tables.

Bishop Gregory Parkes Opening Remarks This template can be used as a starter file for presenting training materials in a group setting. Sections Right-click on a slide to add sections. Sections can help to organize your slides or facilitate collaboration between multiple authors. Notes Use the Notes section for delivery notes or to provide additional details for the audience. View these notes in Presentation View during your presentation. Keep in mind the font size (important for accessibility, visibility, videotaping, and online production) Coordinated colors Pay particular attention to the graphs, charts, and text boxes. Consider that attendees will print in black and white or grayscale. Run a test print to make sure your colors work when printed in pure black and white and grayscale. Graphics, tables, and graphs Keep it simple: If possible, use consistent, non-distracting styles and colors. Label all graphs and tables.

Nancy Ridenour, Chair Diocesan Finance Council Tonight’s Agenda: Summary of Audited Financial Statements Update on Forward in Faith Best Practices for Pastors Parish Finance Councils Give a brief overview of the presentation. Describe the major focus of the presentation and why it is important. Introduce each of the major topics. To provide a road map for the audience, you can repeat this Overview slide throughout the presentation, highlighting the particular topic you will discuss next.

Audited Financial Statements and this presentation are available online at www.dosp.org (1) Click on Ministries & Offices, then… (2) Click on Accounting & Finance, and… Give a brief overview of the presentation. Describe the major focus of the presentation and why it is important. Introduce each of the major topics. To provide a road map for the audience, you can repeat this Overview slide throughout the presentation, highlighting the particular topic you will discuss next. (3) Click on Financial Updates or (3) Click on Financial Statements (this presentation) (audited statements)

Audited Combined Financial Statements Represent the following combined entities: Pastoral Center Operations, including Spirit FM Bethany Retreat Center Diocesan Savings and Loan Diocesan Insurance Trust Cemetery Funds Emmaus Foundation d/b/a the Catholic Foundation Endowment funds (Does not include Parishes, Schools, or Forward in Faith)

Combined Statement of Financial Position ($000) 6/30/2017 6/30/2016 Assets:   Cash $ 13,544 $ 23,449 Investments Held in Trust 136,586 114,901 Receivables 27,890 27,220 Land, Buildings, and Equipment, Net 31,670 32,972 Other Assets 1,262 1,697 Total Assets $ 210,952 $ 200,239 Liabilities: Payables $ 6,701 $ 6,489 Bank Debt - 7,056 Deposits Held in Trust 91,615 87,168 Reserves for Insurance Claims 4,386 4,000 Total Liabilities 102,702 104,713 Net Assets: Unrestricted 82,916 72,542 Temporarily Restricted 13,381 11,078 Permanently Restricted 11,953 11,906 Total Net Assets 108,250 95,526 Total Liabilities and Net Assets Give a brief overview of the presentation. Describe the major focus of the presentation and why it is important. Introduce each of the major topics. To provide a road map for the audience, you can repeat this Overview slide throughout the presentation, highlighting the particular topic you will discuss next.

Combined Results of Operations ($000) Year Ended 6/30/2017 6/30/2016 Annual Pastoral Appeal & School Assessments $ 13,284 $ 13,519 Contributions and Bequests 2,323 2,080 Insurance Premium Revenue 25,845 24,792 Earnings on Investments & Loans 10,585 909 Fees, Sales, and Program Revenues 5,562 5,370 Gain on Sale of Land 3,258 12,206 Total Support and Revenue 60,857 58,876   Ministry Expenses 8,726 9,171 Catholic Formation & Education 5,389 4,676 Social Services 1,135 1,409 Clergy Development 2,886 2,435 Parochial Services 1,771 1,302 Insurance Programs 24,435 24,665 Other Program Services 2,466 6,771 Total Program Services 46,808 97.2% 50,429 97.3% Diocesan Administration 1,324 2.8% 1,410 2.7% Total Expenses 48,132 100.0% 51,837 Change in Net Assets $ 12,725 $ 7,037 Give a brief overview of the presentation. Describe the major focus of the presentation and why it is important. Introduce each of the major topics. To provide a road map for the audience, you can repeat this Overview slide throughout the presentation, highlighting the particular topic you will discuss next.

Diocesan Savings & Loan Results of Operations ($000) Year Ended 6/30/2017 6/30/2016 Investment Income $ 8,128 $ 490 Interest Received on Loans 636 634 Total Support and Revenue 8,764 1,124   Interest Paid on Deposits 1,657 1,487 Interest Paid on Bank Debt 57 139 Grants - 4,000 Operating Expenses 225 2,046 Provision for Loan Losses 839 58 Total Program Services Costs 2,778 7,730 Change in Net Assets 5,986 (6,606) Net Assets, Beginning of Year 9,206 15,812 Net Assets, End of Year $ 15,192 $ 9,206 Give a brief overview of the presentation. Describe the major focus of the presentation and why it is important. Introduce each of the major topics. To provide a road map for the audience, you can repeat this Overview slide throughout the presentation, highlighting the particular topic you will discuss next.

Diocesan Insurance & Benefits Trust Results of Operations ($000) Year Ended 6/30/2017 6/30/2016 Insurance Premium Revenue $ 27,391 $ 26,375 Investment Income 246 243 Total Support and Revenue 27,637 26,618   Insurance Claims Expense 20,482 20,219 Insurance Premium Expense 3,174 3,104 Other Operating Expenses 2,104 2,167 Provision for Doubtful Accounts - 35 Total Program Services Costs 25,760 25,525 Change in Net Assets 1,877 1,093 Net Assets, Beginning of Year 13,678 12,585 Net Assets, End of Year $ 15,555 $ 13,678 Give a brief overview of the presentation. Describe the major focus of the presentation and why it is important. Introduce each of the major topics. To provide a road map for the audience, you can repeat this Overview slide throughout the presentation, highlighting the particular topic you will discuss next.

Published Campaign Goals Results Through 6/30/17 Sources: Pledges and Gifts $ 50,000 $ 32,774 Uncollectible Pledges (5,000) (3,224) Net Sources of Funds 45,000 29,550 St. Vincent de Paul Seminary Support (5,138) Clergy Support (3,000) - School Construction (11,000) (12,176) Tuition Assistance (18,000) Parish Share (5,273) Campaign Costs (2,781) Funds to be Designated $ - $ 4,182 Give a brief overview of the presentation. Describe the major focus of the presentation and why it is important. Introduce each of the major topics. To provide a road map for the audience, you can repeat this Overview slide throughout the presentation, highlighting the particular topic you will discuss next.

Forward in Faith Campaign Results of Operations ($000) Give a brief overview of the presentation. Describe the major focus of the presentation and why it is important. Introduce each of the major topics. To provide a road map for the audience, you can repeat this Overview slide throughout the presentation, highlighting the particular topic you will discuss next.

Forward in Faith Campaign Pledge Report as of 5/31/18 Give a brief overview of the presentation. Describe the major focus of the presentation and why it is important. Introduce each of the major topics. To provide a road map for the audience, you can repeat this Overview slide throughout the presentation, highlighting the particular topic you will discuss next.

Microsoft Engineering Excellence Questions? Microsoft Confidential

Diocesan Finance Council Financial Planning Committee Rev. George Corrigan, O.F.M. Gerald Giglia, C.P.A. Rev. Msgr. Robert Morris, V.G. Frank Murphy, Secretary for Administration Nancy Ridenour, C.P.A. Thomas Moriarty, C.P.A.

Diocesan Finance Council Financial Planning Committee “Guardian Angels” at least on our best days Pastors, parish finance council members, folks in business, and above all - people of faith Tonight – we hope to share some good practices

Financial Leadership in the Parish

Oh no!!! Best Practices Common Ground Your Pastor… We want to do good… …but there is limited staff …you want to be church and not a business …We want to be good stewards We don’t want the “tail to wag the dog” Your Pastor… Holy, compassionate, dynamic, leader, visionary, …a saint in the making Oh yeah…. financial whiz, MBA, fund raiser extraordinaire Oh no!!! You have the pastor you have

Financial Planning Committee Diocesan Finance Council Audit Committee Investment Committee Planning Committee Review the numbers Assess projects Review the agreed-upon procedure review Watch over parishes Give advice to Council and Bishop Parkes Farmer’s Insurance… We’ve seen a lot …and so we have something to share …some good practices – things you may already do!

Offertory Review (weekly) Review the “tally sheet” Review “tally sheet” vs. bank deposits Including any bank corrections Ensure there is independent signature on final tally sheet

Running Tally

Checking/Bank Statement Review The pastor opens the mailed statement and initials the outside of the envelope Review the scanned copies of the checks for Payee Authorized person and signature(s) Amount (consistent with the routine checks to that payee?) Know the “regular” vendors Utility suppliers (electric, water, phones, internet, etc.) Equipment suppliers (e.g., copy machine rental, etc.) Know the seasonal suppliers of goods and services Contract 1099 vendors Know the “regular checks” Payroll and payroll taxes Insurance payment to Diocese Electric and other utilities Offertory deposits Merchant deposits (if applicable) Bank fees and charges Other routine checks and charges Review any ATM, POS, direct payment, or credit card charges associated with the account POS = point of sale, e.g. the parish accepts credit card payments Direct payments, e.g., Microsoft Office 365 requires automatic withdrawal from bank

Reconciliation (monthly) End of month plus 10 days max …. And what invoices are in the “I’ll pay these later…” folder? Discussion about who performs this in your parish

Payroll Review Know the list of people authorized to be part of the payroll system Staff (exempt) Staff (hourly / full-time) Staff (hourly / part-time) No unauthorized payments Know the range of normal “paydays”

Monthly Diocesan Invoice Review Savings and Loan statements – amounts and activity Insurance – bills/schedule of payments Property Liability Health Workman’s comp and mandated contributions School assessment Annual Pastoral Appeal (including assessment worksheet) “Accounts Payable”

Financial Leadership in the Parish

CPE For CPAs and Attorneys Sponsored by CBIZ and MHM Suggested donation of $100 to Catholic Charities June 28, 2018 (next Thursday) 8 Hours of CPE / CE units See Margi or Tom tonight for further info Give a brief overview of the presentation. Describe the major focus of the presentation and why it is important. Introduce each of the major topics. To provide a road map for the audience, you can repeat this Overview slide throughout the presentation, highlighting the particular topic you will discuss next.

Diocesan Norms for Parish Finance Councils Panel Discussion: Nancy Ridenour Fr. George Corrigan Phil Signore Give a brief overview of the presentation. Describe the major focus of the presentation and why it is important. Introduce each of the major topics. To provide a road map for the audience, you can repeat this Overview slide throughout the presentation, highlighting the particular topic you will discuss next.

Diocesan Norms for Parish Finance Councils Canon Law Bishop’s mandate: “… it is essential that the Christian faithful share their knowledge and competence in financial and administrative matters with their pastors for the good of the Church.” Why must a parish have a finance council?

Diocesan Norms for Parish Finance Councils Outstanding integrity Qualified in accounting, finance and/or business. Registered parishioners, and not employees. Who should be on the finance council?

Diocesan Norms for Parish Finance Councils Composition of Parish Finance Councils (in addition to pastor): Fewer than 500 families: at least 3 members. 500 to 1500 families: at least 5 members. More than 1500 families: at least 7 members. Inter-parochial schools: at least 2 members. How many members should a finance council have?

Diocesan Norms for Parish Finance Councils Meetings: Required: quarterly. Recommended: monthly. Financially challenged entities must meet monthly. Terms should be 2-4 years but members must not serve more than 8 continuous years. What is the time commitment for a member?

Diocesan Norms for Parish Finance Councils What does a Finance Council approve? Nothing. The pastor presides. The Council is a consultative body providing wisdom and advice.

Diocesan Norms for Parish Finance Councils Does the pastor ever have to use these consultants? Extraordinary administration: Capital campaigns. Incurring debt. Real estate transactions. Legal actions. Acceptance of non-cash gifts, including stock. Any transaction > $40,000. Yes. For acts of “extraordinary administration” pastors must petition the Bishop after consulting the Parish Finance Council.

Diocesan Norms for Parish Finance Councils Yes. Pastors must consult the parish finance council before submitting to the Bishop: The annual governance certification letter. The internal control questionnaire. Isn’t the Finance Council responsible for financial oversight? Signatures of finance council members on these documents are indicative of consultation, not approbation.

Diocesan Norms for Parish Finance Councils Is that all they ever do? They should be consulted on: The annual budget. Quarterly & annual financial reports to Bishop. Financial accountings to parishioners. Educating parishioners regarding stewardship. Resolution of unpaid debt and budget deficits. Personnel administration, staffing needs, & salaries. Tax compliance. Federal, State, and local regulatory matters. Leases or contracts > 1 yr. Expenditures > $25,000. They must also maintain written minutes of all meetings.

Many financial resources are available online at www.dosp.org (1) Click on Ministries & Offices, then… (2) Click on Accounting & Finance, and… Give a brief overview of the presentation. Describe the major focus of the presentation and why it is important. Introduce each of the major topics. To provide a road map for the audience, you can repeat this Overview slide throughout the presentation, highlighting the particular topic you will discuss next. (3) Click on Parish & School Support

Many financial resources are available online at www.dosp.org Give a brief overview of the presentation. Describe the major focus of the presentation and why it is important. Introduce each of the major topics. To provide a road map for the audience, you can repeat this Overview slide throughout the presentation, highlighting the particular topic you will discuss next.

Thanks for listening…