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	Reviewing Parish Financial Practices The Catholic Messenger July 28, 2007 http://home.catholicweb.com/CathMessDavDio/index.cfm/NewsItem?id=207462&From=Home Davenport (IA) — A series of recommendations on parish financial governance have been reviewed and supported as "best practices" by the U.S. Conference of Catholic Bishops' Committee on Budget and Finance. The bishops' Accounting Practices Committee made the recommendations following widely publicized financial scandals in the Catholic Church and a national study that concluded a need for tighter internal controls over finances. The Accounting Practices Committee, a group of lay financial experts, represents the Catholic Church before regulatory bodies in the formulation of accounting principles and reporting standards that would affect the church. Char Maaske, the Davenport Diocese's chief financial officer, shares the diocese's response to the recommendations of the Accounting Practices Committee: Q: How will the recommendations of the Accounting Practices Committee change the way parishes in our diocese currently operate their finances? A: The financial operations of the parish do not need to change as long as the Policies for Parish Councils and Parish Finance Councils and the Diocesan Accounting Guidelines are being followed. The new requirements have more to do with the accountability of the Finance Council of each parish. Q: At the present time, do any parishes in the Davenport Diocese send a letter to the bishop that contains detailed information about their finance councils, meeting dates, etc.? A: No, we have never requested that information. As that is a recommendation from the USCCB we probably will implement that as part of our new policy. From past experience it would be helpful to have documentation of Finance Council meeting dates. It is a reminder to the parish of the important role of the Finance Council. Q: Does each parish currently provide a copy of its published financial statements/budget to the bishop? Will that become a requirement in the Davenport Diocese and, if so, when? A: No, they have not been asked to provide their published financial statement to the bishop but I think it is a good suggestion from the USCCB. Each year the pastor and trustees do sign and approve the parish budget before they send it to Bishop Amos. Q: At the present time, does the pastor/finance council of each parish submit a statement that they have met, developed and discussed the financial statements and budget of the parish? A: No they have not submitted a statement, but when our accountant, Kristi Jergens, does the parish review she asks to see the minutes of the Finance Council meetings. Q: What policies does the Davenport Diocese use to deal with conflicts of interest, whistleblowers and fraud? A: The Davenport Diocese has, and each parish should have, a conflict of interest policy as part of their employee handbook. The USCCB is going to draft a possible whistleblower and fraud policy. Q: Will the diocese create a new policy to deal with conflicts of interest, whistleblower and fraud, as recommended? A: Yes. Q: Does the Davenport Diocese plan to create an internal control questionnaire and review and follow-up the questionnaire? A: We have been using an Internal Control Questionnaire for quite a few years. Our new policy will probably require that it be returned to the chancery each year for our office to review. Q: What extra resources will these recommendations of the APC require of the Davenport Diocese? A: Marj Gonzales has been working part-time the last couple of years reviewing parish financial statements and she is ready to retire. We recently hired Kristi Jergens to work full-time and that will allow us to focus more attention on the parishes and schools which need accounting assistance. This had been our plan prior to the new guidelines by the USCCB. Q: Has the Board of Directors and or the Diocesan Finance Council approved these recommendations? : They have not seen the new recommendations but they will be discussed at our next meeting. Q: Could you share your thoughts on the recommendations? A: I think they are a step in the right direction. The Davenport Diocese needs to know that parish finance councils and trustees understand their responsibilities in helping with the oversight of the parish. The bishop, as president of each corporation, can not know the daily activities of how the parish is managed. He relies on the Parish Council and Finance Council members for governance at the local level. Marj Gonzales has reviewed a number of the parishes during her time working for the diocese as accounting coordinator. She notes, "Implementation of these recommendations will enhance the outstanding efforts already in place at the parish level to ensure that financial transactions are handled appropriately."
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