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(Archived 06/1/2003)
Over the last few weeks we have shared comparisons from the Financial Reports of former years with our current year. Hopefully you have been able to tell there is financial responsibility at St. Bridget. We have positive numbers in our account (our General Fund, money from a matured CD, Savings Account and a Money Market Account you know as the Building Fund). We are trying to allocate our funds carefully with summer right upon us, collections are traditionally lower. The Pastoral Council shared their study of our finances and saw that all was in order and an interim Finance Council for the summer has been formed. Those serving on this task force are: Dick McGrath, George Carter, and Margie Friedrichs. They will monitor and assist in the process of forming a working budget for our next fiscal year. I thank the former Finance Council members whose terms were finished this year for their ministry and service.
We also now have the final results of the audit of St. Bridget available that I will share in its entirety with the Pastoral Council. At the same time the audit from Our Lady of the Valley was also finalized. There is no indication of any financial mismanagement (malfeasance) from these reports. The audit is meant for the pastor and Finance Council and is not intended to be fully available to the parish because it is a confidential document. But we may share information relevant to the community when appropriate. When a pastor comes into a new parish like I did, there are many things already in place – or not – and the audit helps us improve on what was not in place with the previous administration.
Here are a few key points from our audit that are of interest:
• Parish should have an annual budget. (This has been my priority to develop since my arrival.)
• There should be four count teams of at least 3 to 4 people each to count the collection each weekend. (We currently have one and we will continue to work to expand this.)
• The parish should acquire prior approval of the Bishop on capital purchases greater than or equal to $20,000.00 to ensure safeguarding of assets. (This would have helped us in the current dilemma with our a/c system or any future problems with the parking lot, for instance.)
• The parish needs an inventory of all assets. (This helps us know what we own and could have prevented hurt feelings with the transition.) It also is used to be sure we have adequate insurance coverage.
• The parish should obtain insurance for distribution of liquor events in addition to a license since the parish is at risk.
• Affiliated organizations and other users of Parish facilities should obtain the proper licenses and show the Parish proof of insurance.
• Affiliated parish organizations that use the Parish name in any way should submit a written financial report to the parish.
I now have permission from the diocese to talk about the Building Fund, which is a Money Market Account(MMA), and what happened to it the year before I arrived. This account contained donations to the building fund and also fund-raising income that was raised for both the building fund and Fr. John Cunningham’s farewell. You may remember from the Financial Update of October 2002 that was distributed at all the masses that the Building Fund had a high balance of $108,000.00 in May, 2002. $99,900.00 was transferred from the Building Fund to the General Fund to cover extraordinary expenses from May 30 through June 30, 2002 by the previous administration. The balance when I arrived on July 1, 2002 was $10,547.51.
Here is a breakdown of how the $99,900.00 from the Building Fund(MMA) supplemented the General Fund:
$27,708.16 Payroll: double normal amount due to vacation pay and bonuses for parting employees
$18,584.72 Diocesan insurances and fees
$66,262.06 Diocesan assessments
$19,174.00 Fr. John farewell
Deacon Ron Henderson, Director of the Diocesan Finance Office asked me to contact Fr. Cunningham in order that he could provide an explanation for this type of transfer of funds. Here is an excerpt of Fr. Cunningham’s response:
“The finance committee, with whom I worked closely for years, knows exactly the background of the building fund and approved drawing on it to pay off all bills, assessments and insurance before I left. We wanted you to be able to come in with a completely clean slate, and that’s what we did. I left St. Bridget debt free and with money in the bank, after having done capital improvements on the entire parish plant.”
I regret that the Diocesan process takes so much time but my hands were tied. I wanted to share information earlier but I had to wait for the process to be completed. I apologize for the pain this may have caused some members of our community and any misunderstandings about our financial health that resulted but I believe it is important for the Diocesan process to reach its completion for an accurate review of our financial health.
I am not saying that we don’t have a lot of work to do in promoting parish stewardship by all. I think we all need to grow in learning about our responsibility in serving the Lord in ministry and our financial life. We also need an accurate census and a budgeting process that meets diocesan norms. I hope the future is filled with good work in this regard.
Amen
Fr. Scott Brubaker
Pastor