Finance Council

The council is a consultative body providing advice and recommendation to the Pastor concerning the Stewardship of the parish’s fiscal and temporal resources, including long range financial planning.

The bishops who gathered in Rome from 1962 – 1965 at the Second Vatican Council discussed the possibility of a variety of councils.  As they envisioned the laity more involved in shared responsibility for the church, the bishops opened up new avenues for the lay voice to be heard.  The 1985 revised Code of Canon Law, which flowed from the Vatican Council, reflected the fundamental communion of the Church (“cummunio”) and fostered the mission of all the people of God.  Therefore, in accordance with Canon #537, each parish is obliged to have a finance council to assist the parish priest in the administration of the temporal goods of the parish and to enable the parish to fulfill its mission in the Church and in the world and is established solely by the appointed pastor in accordance with Canon #492.

Mission Statement

The Finance Council examines the needs, resources, and budget of the parish and, as an established consultative body, advises the pastor or parish administrator on appropriate distribution of funds and on allocation adjustments when and where required.

Purpose

The parish finance council is to:

1. Assist the pastor or parish administrator in the administration of the temporal goods of the parish with due regard for Canons #532 and 537.  The administration of church goods consists of taking care that all assets that have been lawfully acquired, are preserved, and used for the purpose for which they were given.  Offerings given by the faithful for a specified purpose may be used only for that purpose.  Absolute respect is to be given to the intention and wishes of the donor of specific goods.

2. Assist the pastor or parish administrator to keep the financial administration of the parish in harmony with the mission of the church.  All parish decisions affecting the financial status of the church are to be done by the pastor, following consultation with the finance council.  The members of the council need to be fully informed in sufficient advanced time, in order to digest, reflect on, and develop a proper understanding of the facts and a clear sense of the options available.  Only then will the wisdom present in the community, help discern where the Spirit of God is leading them.  This also gives rise to a greater sense of ownership and a sense that the work is collaborative.  The finance coun-cil must work in an atmosphere where open and honest discussion is encouraged and respected. 

Responsibilities

The Finance Council shall:

1. Meet no less than four (4) times a year or more frequently, if required, at the direction of the Finance Council Chairperson and/or Pastor and be distinct from the parish council.

2. Assist the pastor, as the administrator of parish goods, in the preparation each year, of a budget of the income and expenditures foreseen for the operations of the entire parish in the coming year.  This yearly budget of income and expenditures will be reviewed by the Pastoral Council; then reviewed and approved by the pastor prior to the beginning of each fiscal year.

3. Review the various Parish Income and Expense reports for the total parish no less than twice a year.

4. Assist the Pastor in the preparation of an annual financial report of income and expenditures covering all parish operations for dissemination to the parish at-large, in accordance with Canon #1287.

5. Assist the pastor in assuring that the following fiscal functions are performed:

   1. Timely payment of debt

   2. Timely payment of vendor invoices

   3. Timely interest payments

   4. Investment of surplus funds

   5. Assure adequate revenue through various means such as accepted tithing programs, parish fund raisers and planned giving programs.

   In some instances the Finance Council may wish to establish a development subcommittee which would address the concerns of adequate revenue and/or a stewardship committee to assist with improving the parish’s offertory practices and/or income.

6. Assist the pastor in the coordination of the fiscal activities with other parish organizations, such as the Pastoral Council.

7. Review the long range planning objectives of the Parish as they relate to the ability of the Parish to fund those goals and maintain fiscal integrity.

8. Be comprised as follows (as a minimum):

   1. The membership of the Council is to be comprised of no less than three (3) members of the Christian faith community (including the parish’s Chief Finance Officer) in accordance with Canon #492, who are faithful, outstanding in integrity, and appointed by the pastor .  Faithful Christian members should be drawn from the parish community; however this may be waived by the pastor in the event of a need of a special or unique expertise.  These members should be skilled or have an expertise in management, stewardship and/or financial affairs, as well as in civil laws (e.g., tax, investment, financial, etc), and possess unquestionable integrity and dedication to the Catholic Church and faith.  The pastor shall appoint all members of the Finance Council in writing.

   2. The composition of the membership of the Finance Council should be such as to satisfy legal structural requirements in accordance with published diocesan and parish policies and the Church’s Canonical law.

   3. The Pastoral Council should recommend at least one at large candidate to the Pastor for his/her appointment as a member of the Finance Council.

   4. Members of the Parish Finance Council (excluding ex-officio) are to be appointed for fixed terms (e.g., five (5) year terms), in accordance with Canon #492, with the members’ term expiration dates staggered each year.  Note:  There is no limit on the number of terms that a member can serve on the financial council.  Following these initial appointments, members would be named to three (3) year terms.  Individuals may be re-appointed to other five-year terms or terminated in this role, at the sole discretion of the pastor.  Members of the council may resign from their positions, but they can be removed before the expiration of their term by the Pastor for grave cause.

   5. One appointed member will be designated its Chairperson, with the approval of the pastor.  In the matter of a conflict of interest, this Chairperson cannot be the parish’s Chief Finance Officer.

   6. At least one appointed member of the Parish Finance Council should also function as an appointed member of the Ave Maria School finance council; to provide a communication link and interface between the respective parish and school financial consultative bodies to the Pastor and Principal.

   7. In that they may be involved in investment matters, they will need to be aware of certain ethical standards by which investment decisions are made (e.g.,  “Economic Justice for All:  Catholic Social Teaching and the U.S. Economy”, U.S. Bishops, 11/27/86; etc.)

   8. By members who understand and comply with the requirement of a promise of service and confidentiality, as outlined in Canons #471 and 492.

9. Be consulted by the pastor before any major item of expenditure is incurred within the parish in accordance with Canon #493.

Changes to and/or additions to the Financial Council mission, purpose, and responsibilities will be at the sole discretion of the Pastor (whether verbally or in writing).  Resolutions to issues regarding the Finance Council’s mission statement, purpose, and responsibilities will be resolved by the Pastor.