Financial Policies

Parishes may not give a monthly allowance to a priest for car usage. Instead, mileage reimbursement to a priest may be made for parish (not personal) use upon presentation of a mileage log. Reimbursement is at the mileage rate established annually by the Archdiocese of Mobile.

Click Here for the Summary of Salary and Benefits for Priests (01/01/2022)

Priests are to follow the following requirement from the Ministerial Reimbursement Policy established in 2010.  The Ministerial Reimbursement Acknowledgment form is below. Each priest, no later than January 5 of each year, must submit to the parish or ministry which pays the priest’s stipend the enclosed form noting the amount spent by the priest in each category.

If the total equals or exceeds the amount of Ministerial Reimbursement received during the calendar year, then the Ministerial Reimbursement is not taxable. If the amount is less, the parish or ministry must report the difference as taxable income on the 1099 Form that is submitted to the IRS. Receipts need not be furnished to the parish or ministry, however, any taxpayer, including a priest, is urged to retain appropriate receipts in the event of an IRS audit of the individual. It is recommended that priests discuss this with whoever assists them with the preparation of their income tax statement.

***Download the Form Here***

ARCHDIOCESE OF MOBILE

MINISTERIAL REIMBURSEMENT FORM

FOR THE YEAR __________

UNIFORMS                                                                           $_______________

PROFESSIONAL FEES                                                        $_______________

BOOKS AND SUBSCRIPTIONS                                        $_______________

UNREIMBURSED PROFESSIONAL TRAVEL                 $________________

TOTAL                                              $________________

(If this amount is less than the amount received during the year for the professional reimbursement stipend, the difference needs to be reported as income for tax purposes.)

_________________________________

SIGNATURE OF PRIEST

All contracts listed below, regardless of amount, must be sent to the Fiscal Management Office for legal review:

• Sale or Purchase of Property
• Building Lease Agreements
• High Risk Situations (i.e. demolishing a building, environmental issues, government regulated activities, etc.)
• Professional Service Contracts (i.e. architects, engineers, etc.)

For other contracts less than $10,000

• Legal review is not required; however,

For contracts of $10,000 or more

• Must be sent to the Fiscal Management Office for review prior to signing
• No work may begin until after the contract has been reviewed and signed

For contracts of $25,000 or more

• Must receive preapproval from the Archbishop
• Required to submit a letter from pastor and all members of parish finance council
• After receiving approval for the project, the contract must be sent to the Fiscal Management Office for review prior to signing
• No work may begin until the contract has been signed by the President of the parish corporation
• All change orders must be preapproved in writing by the President of the parish corporation.

Parishes may not give a monthly food allowance for a priest. A budget may be prepared for this, but reimbursement for food is to be made to a priest only upon presentation of a receipt for the food expense.

The Code of Canon Law requires each parish to have a Finance Council. (Canon 537) The Council, governed by the norms of the Code, allows the Christian faithful to be of assistance to the pastor in the administration of parish goods.  The policy of the Archdiocese of Mobile is as follows:

1. ROLE

The role of the Parish Finance Council shall be consultative to the pastor who presides over the Finance Council.  The meetings of the Finance Council are called by the pastor or parish administrator who approves the agenda.  While it is expected that the pastor give due consideration to the advice of the Council, the pastor alone, in concert with the pertinent regulations of the Archdiocese, has the ultimate responsibility for all decisions affecting the finances of the parish.

2. MEMBERSHIP

Members of the Parish Financial Council:

3. shall be lay Catholics in good standing and, preferably, members of the parish;
4. shall be knowledgeable in the areas of finance, law or administration;
5. shall not be employees, or be related to employees of the parish, nor have extensive business relationships with the parish.
6. ORGANIZATION

The Parish Finance Council:

1. shall consist of a minimum of three members and a suggested maximum of seven;
2. quorum shall consist of a majority;
3. members shall be appointed by the pastor and serve a term of three years; members may be reappointed;
4. appointments should be staggered to provide continuity of membership;
5. minutes shall be kept of each meeting;
6. there shall be at least two meetings each year;
7. employees and other parish clergy may be invited by the pastor  attend.
8. DUTIES

 The duties of the Parish Finance Council are assistance to the pastor in:

5. the preparation of the annual parish budgets for all parish ministries;
6. the review of periodic financial reports;
7. consultation on major capital expenditures;
8. advice on fundraising efforts;
9. the review and certification of movable inventories;
10. providing written recommendations when archdiocesan contract review process requires such from all members of the finance council (whether in favor or not);
11. providing aid and advice in other areas as requested by the pastor.
12. AWARENESS

All members of a Parish Finance Council must be aware of and follow the Archdiocesan Policy on Financial Actions.    That policy includes the need for prior permission for loans, entering into contracts and alienation of church property, and specific Procedures for Obtaining Approval for Financial Arrangements.

• Encourage parishioners to use envelopes and to write checks.
• There must always be two or more people in control of the collection at all times – no one may be alone with the collection either in church or while it is being counted.
• The collection should be in a visible location during Mass and secured in a locked and/or secure location as soon as possible after it is taken up.
• The collection is to be counted by a team of at least 2 unrelated people, with more than one counting team, where possible.
• The counters are to record the cash, coin, and checks using duplicate deposit slips.
• (When possible) checks are to be prepared by someone other than those authorized to sign checks.
• Blank checks are not to be signed in advance.
• Bills are no to be paid with cash.
• No debit cards are allowed on any Parish checking accounts.
• No checks are to be made payable to cash except for the maintenance of a small petty cash fund. Complete documentation of petty cash must be included and approved.
• Bank statements should be opened and reviewed by the Pastor and/or church administrator. Particular attention should be given for possible unknown payees, checks not signed by authorized signers, and any unusual items.
• The Pastor is to be an authorized signer on all church accounts and on all affiliated church organization accounts.
• Bank statements for all church and affiliate church organization accounts are to be mailed to the church office, not to a personal address.
• If possible, the bank reconciliation should be prepared by someone other than the person who writes checks. If the same person prepares it, it is to be reviewed by the Pastor, church administrator and/or finance committee.
• Internet banking, ACH transfers, and wire transfers should be reviewed and monitored by the Pastor and/or church administrator. Only the Pastor and/or church administrator are to be authorized to initiate such transactions.
• Church credit card bills are to be opened and reviewed by the Pastor and/or church administrator.
• The Pastor and/or church administrator are to indicate approval for invoice payment by initialing the invoice.
• All expenses must be supported by an invoice.
• Any reimbursable expense should not be processed for payment without a receipt.
• No personal loans are allowed from the Parish to anyone.
• The Pastor may not give any donations from parish funds to relatives. In accord with archdiocesan policy, the Pastor may not employ relatives.
• Any donations received by a priest are assumed to belong to the parish unless specified by the donor.
• No one may live in the rectory except clergy, religious brothers, seminarians, and close relatives of clergy assigned to the parish who are staying for a brief visit.
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• Parishes are to follow the policies listed in the March 2012 Memorandum “Archdiocesan Polity to Financial Actions” concerning permission for loans, entering into contracts and alienation of church property.
• No cleric, principal, or director of a ministry may establish a “Go Fund Me” or similar outreach for financial assistance for himself or herself personally or for any parish or school ministry without the prior written permission of the Archbishop of Mobile.
• No “Go Fund Me” or similar outreach for financial assistance may be established for any church ministry without the prior written permission of the Archbishop of Mobile. If one is approved, the funds must be under the control of the Pastor.
• In each parish staffed by priests of a religious congregation, the Pastor may authorize one annual collection in the support of the religious congregation. The proceeds from this collection, as with any second collection, are to be sent to the Archdiocesan Finance Office so the funds may be forwarded to the religious congregation. No other appeals for the religious congregation may be undertaken in the parish during the year without prior written approval of the Archbishop of Mobile.
• The monthly salary and stipends of priests who are member of a religious congregation are sent to eh religious congregations. The religious congregation determines the monthly remuneration of their religious priests. The remuneration of archdiocesan of archdiocesan priests is determined by archdiocesan policy. Clergy do not determine their own remuneration.
• Parishes may not have a direct link on their website which allows a contribution to be made directly to a non-archdiocesan ministry or religious congregation.
• All funds collected in a parish or donated to the parish belong to the parish and no to the religious congregation whose members serve in the parish. No parish funds may be sent to any religious congregation or other ministry without prior written approval of the Archbishop of Mobile.
• Parishes are not to send funds to any non-Archdiocesan ministry without the prior written permission of the Archbishop of Mobile. Some parishes generously support “sister” parishes in developing nations. This is commendable and may continue; at the same time, the prior written consent of the Archbishop of Mobile is required.
• Parishes may also make a once a year donation to another parish located in the Archdiocese of Mobile not to exceed an annual total of $250 to the receiving parish. Any larger donation requires prior written permission of the Archbishop of Mobile.