1. AND THE ROLE OF PARISH FINANCE COUNCILS KEVIN O’BRIEN, M.S.C.M. 2012 Internal Controls

2. Introduction Kevin O’Brien  Master of Science in Church Management, Villanova University  Assistant Director of Finance and Administrative Services for Parish and School Services – Diocese of Fort Worth  Corporate and Municipal Bond Trustee

3. Role of Finance Council The Second Vatican Council “recommended that the laity, called to active participation in the life and activity of the Church, contribute their knowledge, experience, and special skills to make more efficient the administration of the material resources of the Church” (Beal, Coriden, and Green (2000), p. 1451).

4. The Triangle of Fraud Inclination Opportunity Pressure

5. USCCB Support for Internal Controls Diocesan Internal Controls: A Framework  http://www.usccb.org/about/financial-reporting/diocesan- internal-controls-framework.cfm http://www.usccb.org/about/financial-reporting/diocesan- internal-controls-framework.cfm  “Segregation should preclude any one person from performing all aspects of a function.”  Break up the following functions:  Authorization - Pastor  Recording – Bookkeeper  Review and Reconciliation - Business Manager, Finance Council, Trustee

6. The Internal Controls Questionnaire Diocesan Financial Issues – USCCB  http://www.usccb.org/about/financial- reporting/upload/Diocesan-Financial-Issues-Manual.pdf http://www.usccb.org/about/financial- reporting/upload/Diocesan-Financial-Issues-Manual.pdf  Section I-I pertains to Parish Financial Management and includes the Internal Controls Questionnaire This is a tool for evaluation and to identify areas of opportunity This is not an evaluation of an employee or of the Pastor.

7. Conclusion Canon 1284 – Bishop is implicitly relying on you to assist your pastor in the appropriate disposition of the assets of the church. Internal Controls are an integral part of our call to be good stewards. May God continue to bless you in your ministry.