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In accord with canon 492, revised Code of Canon Law (1983), each diocese is required to establish a finance council. The diocesan bishop or his delegate presides over this council. The finance council must consist of at least three members of the Christian faithful. The members are to be appointed by the bishop, are to be noted for their integrity, and are to have diverse expertise in areas of financial affairs and civil law. Persons who are closely related to the bishop are not to be appointed as members. The term of office of the member shall be five years, but members may be appointed to additional five-year terms.
The finance council should give counsel to the bishop on the following:
- Appointment of a finance officer (c. 494)
- Removal of the finance officer (c. 494)
- Imposition of taxes, either ordinary or extraordinary (c. 1263)
- Decisions relative to the more important acts of administration
(c. 1277)
- Determination of the meaning of acts of extraordinary administration for institutes subject to his control if the statutes are not specific (c. 1281.2)
- Review of annual reports submitted to him by clerical and lay administrators of any ecclesiastical goods
(c. 1287.1)
- Investment of tangible and intangible property assigned to an endowment (c. 1305)
- Modification of the obligations imposed in executing last wills for pious causes if such obligations cannot be fulfilled (c. 1310.2)
The finance council must give or withhold
consent to the bishop on the performance of an
act of extraordinary administration as defined
by the United States Conference of Catholic
Bishops (USCCB) (c. 1277):
Alienation of property at or above an amount established by the USCCB (c. 1292 § 1) (effective March 31, 2004 , $1,000,000 for dioceses with Catholic populations of half a million persons or more; $500,000 for all other dioceses)
- In addition to alienation, the entering into any transaction that worsens the financial condition of the diocese (c. 1295)
Consent must also be obtained from the Holy See for alienation of property and for transactions that worsen the overall financial condition of the diocese in the following amounts:
- $10,000,000 or more for dioceses with Catholic populations of half a million persons or more
- $5,000,000 or more for all other dioceses
In addition to the canon law requirements, diocesan bishops should consider consulting with their finance councils on the following:
- Appointment of auditors
- Appointment of legal counsel
- Employee compensation and benefits
- Insurance and risk management
- Property management
- Construction management
- Investment policies
- Internal controls
- Development (fundraising)
- Banking arrangements
- Leasing of ecclesiastical property
For more information on the duties and responsibilities of finance councils, go to:
www.usccb.org/bishops/dfi/councils.htm |
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