Diocesan Financial Issues

The document Diocesan Financial Issues was developed by the Committee on Budget and Finance of the United States Conference of Catholic Bishops (USCCB). It was approved by the full body of U.S. Catholic Bishops at its November 2002 General Meeting and has been authorized for publication by the undersigned.

Msgr. William P. Fay General Secretary, USCCB

Translations are from Code of Canon Law Latin-English Edition New Translation, prepared under the auspices of the Canon Law Society of America, Washington, D.C., 1999.

Excerpt from R. T. Kennedy, "Book V: The Temporal Goods of the Church (cc. 1254-1310)," in John P. Beal, James A. Coriden, and Thomas J. Green, eds., New Commentary on the Code of Canon Law (Mahwah, N.J.: Paulist Press, 2000), 1468-1469. Reprinted with permission from Paulist Press

Copyright 2002, United States Conference of Catholic Bishops, Inc., Washington, D.C. All rights reserved. No part of this work may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the copyright holder.

NOTE: The contents of this manual are based upon generally accepted accounting principles in the USA promulgated at the time of publication. (Revised January 2009)

Contents I. Financial Management Issues Sample Policy: Audit Oversight Responsibilities of the Audit Committee (or Diocesan Finance

Council) Sample Policy: (Arch)diocesan Conflicts of Interest/Private Inurnment Policy Sample Policy: (Arch)diocesan Policy to Report Wrong-doing Sample Policy: (Arch)diocesan Fraud Policy Sample Policy: (Arch)diocesan Code of Conduct I-I. Parish Financial Management Sample Parish Financial Reporting Form Sample Parish Finance Council Training Sample Parish Finance Council Guidelines Sample Internal Control Questionnaire

II. Cemeteries III. Compensation of Priests and the Dual Tax Status of Priests: Employees for Income Tax Purposes, Self-Employed for Social Security Tax IV. Compensation of Diocesan Priests: Pension and Other Post-Retirement Benefits Guidelines for the Retirement of Bishops

V. Compensation of Religious Medicare as Secondary Payer

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VI. Compensation of Lay Employees and Deacons of the Church VII. Deposit and Loan Programs

VIII. Diocesan Finance Councils Sample Diocesan Finance Council Statutes Diocesan Financial Reporting USCCB Resolution Sample Diocesan Financial Reporting Form

IX. Diocesan Finance Officer X. Federal Funding XI. Foundations & Endowments XII. Fundraising, Diocesan Appeals and Gift Acceptance XIII. Income Tax XIV. Investments XV. Property and Equipment XVI. Records Retention XVII. Group Programs XVIII. School Tuition vs. Donation XIX. National Special Collections

Appendices

A. Financial Statements and NotesSamples B. Resources

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DIOCESAN FINANCIAL ISSUES (DFI)

INTRODUCTION and FORWARD

The DFI was developed by the Committee on Budget and Finance (CBF) of the United

States Conference of Catholic Bishops (USCCB), in conjunction with a sub-committee,

the Accounting Practices Committee (APC), and it was initially approved by the full

body of Bishops at its November, 2002 General Meeting, The DFI is authorized for

publication by the undersigned.

This Manual is published as an aide to Diocesan Financial Officers, Religious Treasurers

and other personnel responsible for the financial administration of dioceses and religious

institutions of the Roman Catholic Church in the United States. As mentioned above, the

DFI was initially adopted in November, 2002. However, each year the APC updates the

contents of the DFI for the approval of the CBF. The most recent update was performed

through December, 2009. Its contents are based upon generally accepted accounting

principles in the United States at the time of its annual updates.

The DFI is not intended to be a comprehensive document addressing all financial

administration matters that might be encountered dioceses or religious institutions in the

administration of their finances. Rather, it is intended to be a document that addresses

and offers best practices in financial administration matters that could be considered

unique to dioceses and religious institutions. As such, it is recommended that the DFI be

used in conjunction with other authoritative guidance. The APC has recommended

Practitioners Publishing Companys (PPC) Guide to Preparing Nonprofit Financial

Statements, in order to access guidance to accounting and financial reporting matters that

are common to all nonprofit organizations. To obtain this Guide, call 1-800-323-8724, or

go to WWW.ppcnet.com. Other authoritative guidance materials are commonly

available.

The APC is a sub-committee comprised of diocesan financial directors and officers, and

treasurers of religious institutes that was formed by the CBF in 1981. The APC was

formed for the purpose of monitoring, commenting upon and reporting upon accounting

and financial reporting principles that are proposed and approved by regulators of such

generally accepted principles in the United States. The members of the APC are aided in

their mission by expert advisors from the accounting profession. The APC is the

successor to the Ad Hoc Committee on Diocesan Financial Statements which was formed

by the United States Catholic Conference, predecessor to the USCCB, in 1971. The DFI

is the successor to these previous publications: Diocesan Accounting and Financial

Reporting (1971); Accounting Principles and Reporting Practices for Churches and

Church-Related Organizations (1981).

http://www.ppcnet.com/

Diocesan Financial Issues, Introduction and Forward, page two

We offer our deep gratitude and profound appreciation to the members of the APC for

their time and efforts in developing and maintaining this valuable resource to the dioceses

and religious institutions of our Church.

Msgr. Ronny Jenkins

General Secretary, USCCB

Ms. Linda Hunt

Associate General Secretary, USCCB

Most Reverend Michael J. Bransfield

Bishop of Wheeling-Charleston

Treasurer, USCCB

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