Finance reviews continue in diocese
By DANIEL F. DeLONG
Globe editor
Posted June 6, 2002

Financial reviews of parishes and schools in the Diocese of Sioux City are continuing and should be complete in the next two or three years.

Started in the summer of 2000, about 25 of the diocese's parishes and schools have been completed.

"It is a lot of work - especially the schools," explained Royce Ranniger, operations director of the diocese.

Ranniger said each parish or school requires between 80 and 100 hours of work to complete.

"We don't have enough manpower to get through a large number in a short time and be able to do a good job," he explained.

"The program has been very successful," he said, adding that a number of parishes are requesting on-site visits.

When the reviews began, some parishes expressed anxiety about changing their traditional practices. But after the work was done, the parishioners involved saw how the new system improved accountability and in most cases saved money.

"It is important to let parishioners know where and how their donations are being spent," Ranniger said.

The reviews, along with switching to the computer accounting software Quickbooks, has made it significantly easier for everyone to understand how funds are being used.

"Five years ago we standardized the chart of accounts for use by all parishes in the diocese, which means they all use the same accounting format," Ranniger said.

Before that, each parish had its own system with several people handling numerous checking accounts and funds for various projects.

One of the biggest problems with that picture, of course, is when priests are transferred to another parish.

They have to take the time to learn an entirely different way of keeping records. And priests, by their very training, are not necessarily experts in accounting practices and procedures.

"It helps when pastors move from one parish to another," said Father Robert Schimmer, pastor at St. Mary's in Storm Lake.

He has already gone through the review process three times. First, at St. Joseph in Sioux City where has was pastor until July of 2000, and more recently at St. Mary's Parish and School.

Diane Donnelly, diocesan accounting manager who conducts most of the on-site visits, says that the financial reviews also strengthen the internal controls within a parish.

For example, they require volunteers to count the weekly offerings, and their tally sheets are then verified by the bookkeeper and the deposits are made. The system provides checks and balances for safeguarding the funds.

Linda Topf, who is Ranniger's administrative assistant, is also proficient in the Quickbooks program and provides support for parishioners throughout the diocese.

Donnelly said ongoing training in the Quickbooks software and accounting principles have been scheduled for this September.

After a review is compiled, the reports and recommendations are presented to Bishop Daniel N. DiNardo and Msgr. Michael D. Sernett, chancellor.

Review findings and recommendations are then presented to the pastor and finance council at a follow-up meeting in the parish or school.

The parish reports not only are turned into the diocese, but also are consolidated and then forwarded to the National Catholic Offices in Washington, D.C.

Ranniger said the reviews are only one part of the changes that have taken place over the years in financial matters of the diocese.

He said the days of parishes simply depositing their collections in a bank to get interest are long over.

"There are a number of ways that we can help parishes increase the value of their funds through long-term, professional fund management," he said.

For schools, the options are even broader. They can use tax-exempt financing, which means they can often get significantly lower interest rates on loans.

And if their funds are properly invested in long-term instruments, they can pay off a loan and make money in the process.

He said the diocese has also revamped how insurance - health and property - is purchased.

"We are saving money through self-insurance programs," he explained. "This is much more efficient than everyone going out and finding the best deal for them."

Margaret Fuentes, the diocese's director of personnel and employee benefits, has been instrumental in the programs.

The bottom line for all of the changes in diocesan financial matters, Ranniger said, is to help the parishes prosper by taking advantage of sound accounting principles and getting a maximum return on their investments.