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

2. 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

3. Parish Financial Summit … January 2017
Personnel & Contact Information Parish Services
Nick Crosby Len Granozio
Office: (315) Cell: (315)
Bob Gomulka John Corey
Cell: (607) Cell: (315)
Mark McManus Tom O’Connor
Cell: (607) Office: (315)
Parish Financial Summit … January 2017

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. .

13. 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, Max: $1,377, 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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
# 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

26. 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

27. 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

28. 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