Roman Catholic Diocese of Syracuse Parish Financial Summit

Roman Catholic Diocese of Syracuse Parish Financial Summit Parish Budgeting January 21, 2017

Parish Services "Too many people go through life waiting for things to happen instead of making them happen!” Sasha Azevedo, Actress Parish Financial Summit … January 2017

Personnel & Contact Information Parish Services Nick Crosby Office: (315) 422 -9089 ncrosby@syracusediocese. org Len Granozio Cell: (315) 882 -1458 lgranozio@syrdio. org Bob Gomulka Cell: (607) 760 -7741 rgomulka@syrdio. org John Corey Cell: (315) 635 -1178 jcorey@syrdio. org Mark Mc. Manus Cell: (607) 237 -9449 mmcmanus@syrdio. org Tom O’Connor Office: (315) 579 -0055 toconnor@syrdio. org Parish Financial Summit … January 2017

Mission & Vision Parish Services Mission: To assist in the effective management of parishes by insuring accurate, timely, consistent, understandable financial and operational information for use by parish administrators, parishioners, and the diocese. Vision: All parishes within the Diocese of Syracuse operating independently and optimally with diocesan oversight. Parish Financial Summit … January 2017

Parish Services Activities Parish Services Primary Activities: • Perform Parish Reviews • Assemble & Analyze Parish Financial Statements • Provide Financial & Operational Assistance to Parishes – – – Day to Day Accounting Issues Quick. Books & Qvinci Assistance in Payroll Conversion Transition of Parish Business Administrators Standardization of Policies & Procedures Problem Resolution & Execution of Special Projects Parish Financial Summit … January 2017

Parish Financial Status "All organizations are driven by decisions, and the best decisions are driven by data. Good decisions are based on good data. LOGI Analytics Best Practices White Paper Parish Financial Summit … January 2017

Overview & Perspective Parish Financial Status Parishes Financial Reporting Template: Revenue Operating Revenues Expenses Wages & Benefits Other Operating Expenses Net Operating Income / Loss Net Non-Operating Income / Loss Net Income / Loss Parish Financial Summit … January 2017

Overview & Perspective Parish Financial Status Parishes Financial Reporting Template: Revenue A. Offertory Collections B. Auxiliary Revenue C. Fundraising Operating Revenues Expenses Wages & Benefits Other Operating Expenses Net Operating Income / Loss Net Non-Operating Income / Loss Net Income / Loss Parish Financial Summit … January 2017

Overview & Perspective Parish Financial Status Parishes Financial Reporting Template: Revenue Operating Revenues Expenses Wages & Benefits D. Salaries & Wages E. Priest Benefits F. Religious Allowances G. Employee Benefits Other Operating Expenses Net Operating Income / Loss Net Non-Operating Income / Loss Net Income / Loss Parish Financial Summit … January 2017

Overview & Perspective Parish Financial Status Parishes Financial Reporting Template: Revenue Operating Revenues Expenses Wages & Benefits Other Operating Expenses H. Office Expenses I. Program Expenses J. Rectory Household K. Buildings L. Other Operating Expenses Net Operating Income / Loss Net Non-Operating Income / Loss Net Income / Loss Parish Financial Summit … January 2017

Overview & Perspective Parish Financial Status Parishes Financial Reporting Template: Revenue Operating Revenues Expenses Wages & Benefits Other Operating Expenses Net Operating Income / Loss Net Non-Operating Income / Loss M. Non-Operating Income N. Non-Operating Expenditures Net Income / Loss Parish Financial Summit … January 2017

Summary of Results, Year Ended 6/30/16 Parish Financial Status Parishes Financial Results: • 138 Parishes totaled $53. 6 million in annual operating revenue o Min: $8, 475 Max: $1, 377, 699 Average: $388, 710 o 55% had a decrease in revenue from the prior year, 45% had an increase • Salaries, Wages & Benefits make up 48. 8% of Operating Expenses o Expenses related to Buildings (18. 4%), Diocesan Support (15. 7%), Programs (9. 9%), and Office (7. 2%) make up the remaining Operating Expenses • In total, Parishes had a Net Operating Loss of $1. 6 million o 47. 8% had Net Income from Operations, 52. 2% had Net Operating Losses • Non-operating Net Revenues of $4. 5 million brought the composite Net Income for all parishes to $2, 823, 379 o 60. 9% of parishes had Net Income, 39. 1% had Net Losses Parish Financial Summit … January 2017

Parish Budgeting “You can’t always get what you want, but if you try sometime, you just might find, you get what you need. ” Mick Jagger and Keith Richards Parish Financial Summit … January 2017

What is a Budget? Parish Budgeting A budget is an itemized summary of likely income and expenses for a given period or endeavor. Parish Financial Summit … January 2017

What is a Budget? Parish Budgeting A budget is an itemized summary of likely income and expenses for a given period or endeavor. A budget provides a concrete, organized, and easily understood breakdown of how much money you have coming in and how much is going out. Parish Financial Summit … January 2017

What is a Budget? Parish Budgeting A budget is an itemized summary of likely income and expenses for a given period or endeavor. A budget provides a concrete, organized, and easily understood breakdown of how much money you have coming in and how much is going out. A budget is an invaluable tool to help you prioritize your spending and manage your money. Parish Financial Summit … January 2017

What is a Budget? Parish Budgeting A budget is an itemized summary of likely income and expenses for a given period or endeavor. A budget provides a concrete, organized, and easily understood breakdown of how much money you have coming in and how much is going out. A budget is an invaluable tool to help you prioritize your spending and manage your money. A budget will help identify wasteful expenditures, adapt quickly to changing financial situations, and assist in achieving financial goals. Parish Financial Summit … January 2017

What is a Budget? Parish Budgeting A budget is an itemized summary of likely income and expenses for a given period or endeavor. A budget provides a concrete, organized, and easily understood breakdown of how much money you have coming in and how much is going out. A budget is an invaluable tool to help you prioritize your spending and manage your money. A budget will help identify wasteful expenditures, adapt quickly to changing financial situations, and assist in achieving financial goals. An accurate budget minimizes surprises. Parish Financial Summit … January 2017

Purpose of a Budget Parish Budgeting The purpose of a Budget is threefold: • To forecast Income and Expenditures • To provide a basis for sound decision making • To provide a tool for monitoring performance “Money has to serve, not to rule. ” Pope Francis Parish Financial Summit … January 2017

Purpose of a Budget Parish Budgeting The purpose of a Budget is threefold: • To forecast Income and Expenditures – – – Parishes operate on a Cash Basis Accurate Parish Budgets become Cash Flow Models Accurate Parish Budgets anticipate future problems • To provide a basis for sound decision making • To provide a tool for monitoring performance Parish Financial Summit … January 2017

Purpose of a Budget Parish Budgeting The purpose of a Budget is threefold: • To forecast Income and Expenditures • To provide a basis for sound decision making – Management decisions are most impactful when they are made as far in advance as possible and based on the best information possible • To provide a tool for monitoring performance Parish Financial Summit … January 2017

Purpose of a Budget Parish Budgeting The purpose of a Budget is threefold: • To forecast Income and Expenditures • To provide a basis for sound decision making • To provide a tool for monitoring performance – – Budget comparisons should be included with monthly financial statements Comparisons answer some questions, and raise others: o Are we doing what we started out to do? o Do we need to make changes? o When? Parish Financial Summit … January 2017

Developing a Budget Parish Budgeting The Budget Process: • Begin with the narrative o What are we going to do? o When are we going to do it? • Quantify the narrative – Revenue o Start with Revenue o Identify by source – Use the Standard Chart of Accounts, i. e. Offertory Collections, Fundraising, etc. o Refine by timing – Christmas, Easter, Summer, events Budgeted Revenue = Upper Limit of Budgeted Expenses Parish Financial Summit … January 2017

Developing a Budget Parish Budgeting The Budget Process: • Quantify the narrative – Expense o Start with the largest component – Wages & benefits o Proceed in descending order – Buildings, Diocesan Support, Programs, etc. o Use the Standard Chart of Accounts – #701. . . Clergy Remuneration, # 703 … Office Salaries, etc. o Results should be as formulaic as possible – A 3% pay raise = 3% increase in expense o Refine by timing – Seasonality of utility costs, payroll, etc. Parish Financial Summit … January 2017

Developing a Budget Parish Budgeting The Budget Process: • Review, revise, review, revise …. . o Address the obvious; Look for omissions o Identify significant changes from prior year – What changed? By how much? Why? o Compare to prior year Disbursements Journal – Why were expenditures so high last March? o Compare to prior year Vendor List – Is there a vendor missing? Do we have a new vendor? Are there twelve payments to National Grid? o Incorporate Event budgets – Are all Events included? Do all Events make money? o Show it to everyone Parish Financial Summit … January 2017

Developing a Budget Parish Budgeting The Budget Process: • The Organization’s Mission and Business Plan should be obvious to anyone who reviews the Budget o The budget is the Parish plan for the coming year reduced to numbers o Test it on people not involved with its preparation o Present it to the Parishioners before it is final o Ask for feedback o Revise “I like it when someone tells me 'I don't agree. ' This is a true collaborator. When they say 'Oh, how great, ' that's not useful. ” Pope Francis Parish Financial Summit … January 2017

How Can We Help "If you want to go quickly, go alone. If you want to go far, go together. “ African Proverb Parish Financial Summit … January 2017