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Parish reporting just one of diocesan financial safeguards

By RENEE WEBB, Globe editor
(Email Renee)

Whether you are part of corporate America or a nonprofit organization, financial responsibility and accountability has taken a leap forward in the last 10 years.

The Catholic Church is no different.

According to Royce Ranniger, executive director of administration and finance, in 1998 the Diocese of Sioux City established a standard chart of accounts and required that all parishes use the Quickbooks accounting software.

“In other words, by implementing this, all parishes of the diocese were required to follow similar accounting procedures,” he explained.

That was just one of the business practices put in place in the diocese years ago.

“Annually, each parish is required to provide their annual financial report,” said Ranniger, who added that the reporting year is July 1 to June 30. “These annual financial reports include a significant amount of information about the financial status of the parish.”

Julie Mahaney, director of parish/school accounting, said that parishes are required to have their finance committee review and approve the financial statements and budget prior to submitting the reports to the diocese.

“They are asked to complete a financial report questionnaire that answers questions about their parish finances and internal controls,” she said. “They also sign and submit a certification statement attesting that the financial statements accurately present the financial position of the parish.”

In addition to the various other documents with the reports, Mahaney noted that parishes are also asked to provide a QuickBooks backup to allow further review of their financial statements. This eliminates the need to send in hard copies of their financial reports.

“Upon receipt of the reports, we complete limited desk reviews of the financials as well as ensure adequate safeguards are in place,” she said. “If there are recommended changes in procedures or further questions from this review, the pastor and bookkeeper are asked to respond with actions they have taken to incorporate these recommendations.”

Mahaney pointed out that the diocese usually requests these reports in early July. This year’s deadline for submission is Sept. 10.

Ranniger and Mahaney commended the pastor and bookkeeper at St. Benedict in St. Benedict and St. Joseph in Wesley for being the first to return the reports this year.

“We want to recognize Deb Trenary (bookkeeper) and Father Randy Schon, who is pastor of these parishes, for getting this done in a timely and accurate fashion,” Ranniger said.

Trenary said that although in the past she always had good intentions of completing the reports early, she usually was delayed in completing the parish reporting of financial reports for the diocese.

“This year I was determined to get the forms for St. Joseph and St. Benedict done early, and it really helped in scheduling our parish finance council meetings the first week of August,” she said. “This compelled me to get the financial statements finalized and the budgets entered into QuickBooks so we could get them approved by the finance councils.”

Trenary pointed out that the bank/investment account verification forms were taken to the bank right away, too. She was amazed at how quickly they were returned to them and found it a relief to get this off of her desk.

“Even though I must admit there have been times that I have wondered about the need for some of the requested information, I do understand the importance of parish accountability to the diocese,” she said. “It motivates me as a parish business manager to try and stay on top of things throughout the year and in signing my name to these forms, I do want them done correctly.”

Linda Topf assists Mahaney in the parish accounting department and has been dubbed the diocese’s QuickBooks expert. She helped with the initial QuickBooks transition in the late 1990s, training many of the bookkeepers in that software.

Trenary said that whenever she has had a question with any of the forms or with the desk reviews that follow, she usually puts a call into Mahaney or Topf and they are very helpful. She appreciates them very much.

“It is our expectation that pastors, bookkeepers and also the finance committees of our parishes take an active role in making sure the parish funds are accounted for accurately,” Ranniger said. “Too many times we hear stories where money is misused or stolen. In the end, we want to ensure that the funds that are given by our parishioners are handled and managed appropriately.”