Statutes for Parish Finance Councils

PARISH FINANCE COUNCIL STATUTES

25 October 2024 Version 1.0

FOREWORD Canon Law speaks directly to the requirement for every Parish Priest to constitute a Parish Finance Council in his parish and for there to be a process for the diligent administration of parish finances and property. The priest is required to constitute his Council with wise, capable and appropriately skilled laity and religious who are to be his advisors. Administration of the parish also involves adherence to good governance practice and meeting legislative requirements.

In the community of the Church, every public juridic person has a canonically recognised administrator who is charged with overseeing that public juridic person’s affairs and managing its property. The parish priest is the designated administrator of the parish [Canon 532]. All parish priests, and those who assist them, have a responsibility to be familiar with the requirements as seen by the Code for a diligent administration of the parish’s goods seen in terms of the “good householder” [Canon1284].

The relationship of the parish priest to the parish in this context is also seen as one of “stewardship” as outlined in Integrity in our Common Mission. This implies a fiduciary relationship - one of trust regarding the property of others and a responsibility charged upon the parish priest by virtue of his appointment by the bishop to care for the parish. This responsibility extends not only to “bricks and mortar” but to the use of the parish resources in full accordance with the teaching and mission of the Church [Canon 1284]. The notion of stewardship also implies an accountability both to the parish and to the bishop in relation to our responsibility to1: • • • • •

use resources ethically and sustainably; administer open and transparent financial and operational systems; respect confidential information; seek external, independent expertise; and identify and declare potential conflicts of interest.

1 Chapter 3 Integrity in our Common Mission

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1.

2.

Introduction 1.1

It is the responsibility of the Archbishop (Ordinary) to exercise careful vigilance over the administration of all goods which belong to Parishes of the Archdiocese (Can. 1276 §1). Ordinaries are to see to the organisation of the entire administration of ecclesiastical goods by issuing special instructions within the limits of universal and particular law with due regard for rights, legitimate customs and circumstances (Can. 1276 §2).

1.2

In accordance with the provisions of Can.537 & 1280 there is to be a Parish Finance Council (Council) in every Parish of the Archdiocese of Perth to help the Parish Priest in the administration of the temporal goods of the Parish.

1.3

This Council is an advisory body to the Parish Priest, who is the sole administrator of the temporal goods of the Parish (Can. 532). The Parish Priest, therefore, is to seek prudent advice from the members of the Council and should have their consensus for the major directions of his administration. He is accountable to the parishioners for the way in which he has administered the temporal goods of the parish.

1.4

In matters in which the Parish Priest is required to consult the Council, even though he is not required to accept the opinion of the Council even if unanimous, he must not act contrary to that opinion without a legitimate reason which is overriding in his judgment (Can. 127 §2, 2°).

1.5

A Priest appointed Parochial Administrator has the same obligations and rights that these Statutes give to Parish Priests unless the Diocesan Bishop prescribes otherwise (Can. 540§1). The Parochial Administrator may not do anything which could prejudice the rights of the Parish Priest or could do harm to parochial property (Can. 540§2). The same applies to a Priest who is appointed moderator when the pastoral care of a Parish is entrusted to several priests jointly.

Role 2.1

The Council assists the Parish Priest in his task of administering the Parish finances, maintaining the parish properties, planning for future capital works and raising the necessary funds, all in accordance with the norms of administration as decreed for the parishes of the Archdiocese of Perth.

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3.

2.2

The Council is not directly involved in the day-to-day management of the Parish finances.

2.3

The Council is separate to the Parish Pastoral Council. It is not a sub-committee and consequently does not report to it. The Parish Priest may however choose to invite the Parish Pastoral Council and the Council to liaise with each other on particular occasions or in connection with particular issues.

Membership 3.1

The Council is to be comprised of: a. The Assistant Priests of the Parish should there be any. It should be noted that the Parish Priest is not a member of the Parish Finance Council as it is an advisory body to him. b. At least three members of the lay faithful chosen for their management, accounting, legal, business or financial expertise by the Parish Priest. The Parish Priest is to consult either the Parish Pastoral Council or individual parishioners where the Parish Pastoral Council does not exist, before making the choice. As a rule, and unless a just reason suggests otherwise to the Parish Priest, these members of the lay faithful should be parishioners. c. The Parish Pastoral Council may suggest one or more ex officio members of the Council from its own body but no more than one third of members of the Council may also be members of the Parish Pastoral Council.

3.2

The Parish Priest is able to add other members to the Council , if the needs of the Parish require a larger number with membership capped at no more than nine members.

3.3

Senior parish staff, for example a Parish Business Manager, Pastoral Associate or Parish Accountant, and other independent advisers, may be invited to attend for all or part of the meeting but shall not be members of the Council.

3.4

Members of the Council appointed under 3.1 b. and c. shall hold office for a term of three years. Retiring members may be reappointed by the Parish Priest but some change of membership should take place every three years.

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2

3.5

Members of the Council are to be honest, known for their outstanding integrity and actively committed to the practice of the faith (Can. 492§1) and have a skills set noted in 3.1b. They are to have a love for the Church and its mission and develop a thorough understanding of the mission, goals, people and other resources of the Parish. It is the responsibility of the Parish Priest to give members of the Council appropriate formation, background and enrichment so they are able to carry out their responsibilities. All Council members are required to produce a police clearance or volunteer police clearance every three years and to submit the safeguarding personal declaration before appointment.

3.6

If the Parish Priest dies, is deprived of office, transferred or resigns, the existing Parish Finance Council continues to function to assist the incoming Parish Administrator where one is appointed.

3.7

When a new Parish Priest is appointed, the existing Parish Finance Council will continue to function. Within three months of his appointment the Parish Priest must then confirm the existing Council or appoint a new one in whole or part.

3.8

Persons who are related to the Parish Priest up to the fourth degree of consanguinity or affinity2 are excluded from the Council (can. 493§3).

Meetings 4.1

The Council shall be presided over by the Parish Priest.

4.2

The Parish Priest is to invite the Council to elect a Chair for the meetings.

4.3

The Parish Priest is to appoint one member to act as Secretary who will be responsible for keeping the Minutes of the meetings.

4.4

Meetings of the Council must be held at least every three months and may be held more often at the discretion of the Parish Priest.

The agenda for each meeting should be prepared by the Parish Priest in consultation with the Chair and the Secretary and distributed to the Council members one week prior to the meeting.

Excludes members of parish priest’s family ie: parents, siblings, uncles, aunts & first cousins) Page 4 of 10 Issued: 25 October 2024

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3

4.5

Meetings are convened by the Parish Priest. A Priest exercising the interim governance of a vacant or impeded Parish prior to the appointment of a Parish Priest or Parochial Administrator may not convene a meeting of the Council without the express permission of the Archbishop.

4.6

A quorum shall consist of two thirds of the membership not including the Parish Priest.

4.7

If the Council members meet without the Parish Priest present no decision or advice will have effect until the matter is dealt with at a subsequent meeting where the Parish Priest is presiding.

Proceedings of a meeting without the Parish Priest present are not minuted but may be noted in a “record of discussion”.

4.8

The Parish Priest alone is to make public the matters dealt with in Council meetings.

4.9

Members are to declare any conflict of interest and disqualify themselves from discussion on any issue where there is a conflict of interest with family or business, or if the outcome will grant any pecuniary or non-pecuniary benefits to them or their family members.

Termination of Office 5.1

For the duration of their appointment, members of the Council cannot be dismissed by the Parish Priest except for grave reasons3.

The judgement of the Parish Priest as to the matters constituting grave reasons in his Parish is to be respected as he has the fullest knowledge of his parish’s circumstances.

5.2

In the case of death, dismissal, resignations or permanent disability of one or more of the members of the Council, the Parish Priest appoints replacements as soon as possible. Members thus appointed remain in office to the end of the original members’ term.

The following list of non exhaustive examples would constitute ‘grave reasons’: 1.

2.

3.

4.

5.

6.

Causing public scandal in the parish Having one’s Working With Children Check revoked Convicted of a crime of dishonesty Personal bankruptcy Causing illegitimate harm to the stable patrimony of the parish Unjustified or repeated absences from Parish Finance Council meetings

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5.3

6.

7.

A member of the Council who, without giving adequate reason is absent from three successive meetings, is automatically excluded from membership of the Council.

Sub Committees 6.1

Subcommittees of the Council may be established for specific purposes e.g. thanksgiving programs, fund raising etc. The Chair of the subcommittee must be a member of the Council.

6.2

Terms of Reference for each subcommittee should be established by the Council (eg: purpose, role, members & duties).

Duties 7.1 The Council is to assist the Parish Priest in the preparation of (Can. 1284§1): a. the annual budget of income and expenditure for the coming year. b. a suitable annual report to the parishioners concerning Parish finances. c. the annual financial report to the Archbishop. d. long term cash flow estimates to provide for future capital works and major maintenance requirements.

7.2

The Council is to assist the Parish Priest in relation to his role in: a. ensuring that all regulatory requirements are complied with. b. identifying and managing areas of risk to the financial viability of the Parish. c. Regularly reviewing (at least annually) all lease-hold and license agreements to ensure compliance with their terms by the tenant and the Parish.

7.3

Where a Parish has incurred an overall net loss4 in each of the past three financial years, this assistance would involve developing a plan to restore the Parish to a net surplus position. A copy of the plan is to be provided to the Archbishop.

7.4

The Council shall regularly review periodic (at least quarterly)

4 Overall net loss means inclusive of income and expenditure relating to all parish operating, investment & fundraising activities

but excludes proceeds from property sales and redemptions of investments. A threshold applies comprising accumulated losses representing the lessor of the amount at Item 1 of Schedule A or 50 per cent of the parish’s stable patrimony at the beginning of the three-year period.

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a. financial reports for the Parish. b. balance sheet, income statements, comparisons to budget as well as prior year results; and c. cash flow analysis.

8.

7.5

The Council should ensure that a review of all Parish insurances is conducted on an annual basis by 31 October each year to ensure that adequate cover exists for all identified risks. All insurances are to be placed with the provider approved by the Archdiocese.

7.6

The Parish Priest must consult with members of the Council concerning any expenditure which requires the permission of the Archbishop before he seeks the approval of the Archbishop for the proposed expenditure. Members are to give advice with regard to acts of extraordinary administration or to those acts that might endanger the patrimony of the Parish, and to leases covered by the norms laid down by the Australian Catholic Bishops’ Conference. (See Section 8)

7.7

The Council should ensure that an annual review and inspection is conducted of all Parish properties, identifying defects and ensuring there is planning for immediate and long term maintenance needs.

Archbishop Approval (Acts of Extraordinary Administration) 8.1

The following acts are to be submitted by the Parish Priest to the Archbishop for approval: a. Capital works and major refurbishment on a single project expenditure exceeding the amount at Item 2 of Schedule A. b. Property leases for periods in excess of 3 years require the approval of the Archbishop alone. Leases in excess of 9 years require the approval of the Archbishop after obtaining the consent of the College of Consultors and the Archdiocesan Finance Council. c. To initiate, contest or participate as a party to, a civil lawsuit. d. To form any civil corporation or participate in any civil incorporation other than the Roman Catholic Archbishop of Perth Corporation Sole.

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e. To accept or refuse a bequest to which is attached some qualifying obligation or condition (Can. 1267§2); f. To borrow funds from the Perth Catholic Development Fund (CDF) in excess of the amount at Item 3 of Schedule A; g. To borrow any funds from any civil institution or any physical or juridic person other than from the CDF; h. To enter into any transactions involving the investment of funds in any civil institution or with any physical or juridic person other than the CDF; i.

8.2

9.

All correspondence to the Archbishop or the Executive Director Finance & Administration’s office relating to the work of the Council must be signed by the Parish Priest. When seeking the Archbishop’s approval, the Parish Priest must relay the opinion of the Council arising from the consultation.

Alienation 9.1

10.

To insure any parish building on an “indemnity only” basis (ie: demolition and removal cover only);

The permission of the Archbishop is required before any Parish property, or goods, whose value (not sale price) exceeds the minimum sum prescribed in the norms issued by the Australian Catholic Bishops Conference, may be validly alienated, that is, gifted or transferred to another ownership. The minimum sum is listed and updated each year in the Parish Administration Guidelines. The relevant amount is listed at Item 4 of Schedule A. Before seeking permission from the Archbishop, the Parish Priest must consult the Council and relay its opinion with this request to the Archbishop.

Parish Bank Accounts 10.1

It is the Policy of the Archdiocese that all bank accounts are held with the CDF.

10.2

All parish accounts except for the Presbytery accounts are to have a minimum of three (3) signatories one of whom must be the Parish Priest. Subject to Clauses 10.3 and 10.4 for every expense Page 8 of 10 Issued: 25 October 2024

authorised by the Parish Priest, the payment transaction must be signed or authorised by a minimum of two signatories.

10.3

The Parish Priest is permitted to be the signatory and to operate the presbytery accounts solely, noting the obligations due to the Assistant Priest(s) as outlined in the Parish Administration Guidelines5.

10.4

The Parish Priest is permitted to renew term deposits and to authorise redemptions of term deposits to the Church account solely.

I decree that these Statutes are to be used by the Parish Finance Council of each Parish of the Archdiocese of Perth. These Statutes replace any previously issued Statutes and are to take effect from 25 November 2024.

___________________________________ + Timothy J Costelloe Archbishop of Perth

___________________________________ Notary

Date: 25

/ 10

/ 2024

25

/ 10

/ 2024

Date:

5 See Section 2.1 Presbytery Account

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SCHEDULE A: Approved Limits Issued by the Archbishop of Perth and the Australian Catholic Bishops Conference Item 1

Section 7.3

$100,000 Overall combined net loss incurred in each of the past three years

Item 2

Section 8.1a

$30,000 Capital works & major refurbishments

Item 3

Section 8.1f

$30,000 Borrowing of funds from CDF

Item 4

Section 9.1

$37,338 Minimum value of property or goods disposed (per ACBC norms issued 23 Aug 2024).

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