1. Diocesan Finance Update
Diocese of St. Petersburg
June 20, 2018
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2. Bishop Gregory Parkes Opening Remarks
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Sections
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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
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3. 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
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4. 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…
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(3) Click on Financial Updates or (3) Click on Financial Statements
(this presentation) (audited statements)

5. 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)

6. Combined Statement of Financial Position ($000)
6/30/2017
6/30/2016
Assets:
Cash
$ ,544
$ ,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
$ ,701
$ ,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
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7. Combined Results of Operations ($000)
Year Ended
6/30/2017
6/30/2016
Annual Pastoral Appeal & School Assessments
$ ,284
$ ,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
$ ,725
$ ,037
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8. Diocesan Savings & Loan Results of Operations ($000)
Year Ended
6/30/2017
6/30/2016
Investment Income
$ ,128 $
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
$ ,192
$ ,206
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9. Diocesan Insurance & Benefits Trust Results of Operations ($000)
Year Ended
6/30/2017
6/30/2016
Insurance Premium Revenue
$ ,391
$ ,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
$ ,555
$ ,678
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10. 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
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11. Forward in Faith Campaign Results of Operations ($000)
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12. Forward in Faith Campaign Pledge Report as of 5/31/18
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13. Microsoft Engineering Excellence
Questions?
Microsoft Confidential

14. 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.

15. 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

16. Financial Leadership in the Parish

17. 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

18. 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!

19. 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

20. Running Tally

21. 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

22. 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

23. 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”

24. 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”

25. Financial Leadership in the Parish

26. 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
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27. Diocesan Norms for Parish Finance Councils
Panel Discussion:
Nancy Ridenour
Fr. George Corrigan
Phil Signore
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28. 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?

29. 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?

30. 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?

31. 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?

32. 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.

33. 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.

34. 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.

35. 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.

36. Many financial resources are available online at www.dosp.org
(1) Click on
Ministries & Offices, then…
(2) Click on Accounting & Finance, and…
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(3) Click on Parish & School Support

37. Many financial resources are available online at www.dosp.org
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38. Thanks for listening…