Diocese of St Petersburg June 20 2018 Bishop Gregory Parkes Opening Remarks Nancy Ridenour Chair Diocesan Finance Council Tonights Agenda Summary of Audited Financial Statements Update on Forward in Faith ID: 778572
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Slide1
Diocesan Finance Update
Diocese of St. PetersburgJune 20, 2018
Slide2Bishop Gregory Parkes
Opening Remarks
Slide3Nancy 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
Slide4Audited Financial Statements and this presentation are available online at www.dosp.org
(1)
Click
on
Ministries & Offices, then…
(2) Click on Accounting & Finance, and…
(3) Click on Financial Updates or (3) Click on Financial Statements
(this presentation) (audited statements)
Slide5Audited Combined Financial Statements Represent the following combined entities:
Pastoral Center Operations, including Spirit FMBethany 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)
Slide6Combined 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
$ 210,952
$ 200,239
Slide7Combined Results of Operations ($000)
Year Ended
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
100.0%
Change in Net Assets
$ 12,725
$ 7,037
Slide8Diocesan Savings & Loan Results of Operations ($000)
Year Ended
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
Slide9Year Ended
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 Assets1,8771,093Net Assets, Beginning of Year13,67812,585Net Assets, End of Year $ 15,555 $ 13,678
Diocesan Insurance & Benefits Trust
Results of Operations ($000)
Slide10Published 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
(5,000)
(5,138)
Clergy Support
(3,000)
-
School Construction
(11,000)
(12,176)
Tuition Assistance
(18,000)
-
Parish Share
(5,000)
(5,273)
Campaign Costs
(3,000)
(2,781)Funds to be Designated $ - $ 4,182
Slide11Forward in Faith CampaignResults of Operations ($000)
Slide12Forward in Faith CampaignPledge Report as of 5/31/18
Slide13Questions?
Slide14Diocesan 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.
Slide15“Guardian Angels”
at least on our best daysPastors, parish finance council members, folks in business, and above all - people of faith
Tonight – we hope to share some good practices
Diocesan Finance Council
Financial Planning Committee
Slide16Financial Leadership in the Parish
Slide17Best Practices
Common GroundWe 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
Slide18Financial Planning Committee
Diocesan Finance CouncilAudit Committee
Investment Committee
Planning Committee
Planning Committee
Review the numbers
Assess projects
Review the agreed-upon procedure review
Watch over parishesGive advice to Council and Bishop ParkesFarmer’s Insurance…We’ve seen a lot…and so we have something to share
…some good practices – things you may already do!
Slide19Offertory 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
Slide20Running Tally
Slide21Checking/Bank Statement Review
The pastor opens the mailed statement and initials the outside of the envelopeReview 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 servicesContract 1099 vendorsKnow the “regular checks”Payroll and payroll taxesInsurance payment to DioceseElectric and other utilitiesOffertory depositsMerchant deposits (if applicable)Bank fees and chargesOther routine checks and chargesReview any ATM, POS, direct payment, or credit card charges associated with the accountPOS = point of sale, e.g. the parish accepts credit card paymentsDirect payments, e.g., Microsoft Office 365 requires automatic withdrawal from bank
Slide22Reconciliation (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
Slide23Payroll Review
Know the list of people authorized to be part of the payroll systemStaff (exempt)
Staff (hourly / full-time)
Staff (hourly / part-time)
No unauthorized payments
Know the range of normal “paydays”
Slide24Monthly Diocesan Invoice Review
Savings and Loan statements – amounts and activityInsurance – bills/schedule of payments
Property
Liability
Health
Workman’s comp and mandated contributions
School assessment
Annual Pastoral Appeal
(including assessment worksheet)“Accounts Payable”
Slide25Financial Leadership in the Parish
Slide26CPE 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
Slide27Diocesan Norms for Parish Finance Councils
Panel Discussion:
Nancy Ridenour
Fr. George Corrigan
Phil Signore
Slide28Diocesan 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?
Slide29Diocesan 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?
Slide30Diocesan 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?
Slide31Diocesan 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?
Slide32Diocesan Norms for Parish Finance Councils
Nothing.
The pastor presides.
The Council is a consultative body providing wisdom and advice.
What does a Finance Council approve?
Slide33Diocesan Norms for Parish Finance Councils
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.Does the pastor ever have to use these consultants?
Slide34Diocesan 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.
Signatures of finance council members on these documents are indicative of consultation, not approbation.
Isn’t the Finance Council responsible for financial oversight?
Slide35Diocesan Norms for Parish Finance Councils
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.
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.
Slide36Many financial resources are available online at www.dosp.org
(1) Click on
Ministries & Offices, then…
(2) Click on Accounting & Finance, and…
(3) Click on Parish & School Support
Slide37Many financial resources are available online at www.dosp.org
Slide38Thanks for listening…