109 INTERNAL CONTROL POLICIES FOR RELATED ORGANIZATIONS


The following section explains the internal control procedures that apply to parish and school organizations, which benefit from the tax-exempt status of the parish. All major parish/school organizations and programs such as the religious education program, fund raising groups, the choir, and youth groups should be accounted for through the parish/school’s general ledger. Specific accounts have been included in the Archdiocesan parish and school chart of accounts. Note, certain groups such as Home and School Associations and sponsored Scout groups are subject to the full range of internal controls required at each parish and school.

109.1 General Internal Control Policy for Related Organizations:

All related organizations must follow all internal control procedures of their respective parish or school. Additionally, related organizations are subject to the following procedures.

Procedure:

A) Financial records of the organization must be maintained at the parish or school office.

B) The organization must use the address of the parish or school office for business purposes.

C) The organization must maintain cash collection procedures consistent with the internal control procedures applicable to parishes and schools.

D) The organization must maintain a written system to track and record the sources of funds received and expended. Checking account balances of the organization must be reported to the parish or school for tracking as an asset/liability on the general ledger.

E) The organization must prepare and submit for review and approval by the school/parish an annual budget.

F) The organization must report to the pastor and/or principal at least quarterly on the activities to-date and budget versus actual. A year-end report must also be prepared and presented.

G) Dual signatures are required for all checks written from an organization account. One signature shall be from the pastor or principal.

H) The foregoing procedures must be followed by all members of the organization, including volunteers.

109.2 Charitable Contributions to Related Organizations:

Related organizations are not permitted to solicit, raise or accept charitable contributions except as approved by the pastor or principal.