105 DISBURSEMENTS


105.1 Disbursements:

All expenditures should be made by check or secured payment transfer and should be recorded in the general ledger.

Procedure:

A) All expenditures must be approved by the pastor or other authorized personnel prior to payment.

B) All expenditures should indicate the date of the payment, to whom the payment was made, the purpose of the payment, and the check number.

C) Checks should always be issued and posted in sequential order.

D) Checks should be simultaneously posted to the general ledger through the check creation process.

E) The Chart of Accounts for parishes and schools should be used for the proper classification of check disbursements. A copy of the uniform chart of accounts is available from the ADDITIONAL RESOURCES section to the right.

F) The check signer should always be a different person than the check preparer.

G) The check preparer should be a different person than the person who reconciles the general ledger with the bank records.

H) Supporting documentation shall be maintained for every disbursement, including original receipts or invoices (items should only be p[aid after receipt of approved invoices).

I) Checks shall not be made payable to cash or signed in advance.

105.2 Invoices and Documentation:

Invoices or other supporting documents shall be obtained for every expenditure, with the exception of salaries to employees, payroll tax payments, clergy fees, Cathedraticum payments, Diocesan Collections remitted, and school subsidies.

Procedure:

A) Paid checks and credit card statements alone are not sufficient support for expenditures.

B) Receipts and/or invoices must be attached. The business purpose for an expenditure should be clearly indicated in the supporting documentation. A memo explaining the reason for the expenditure should be included if the reason for the expenditure is not provided in the other supporting documentation.

C) All invoices should be reviewed and approved by the pastor, pld, principal or applicable department head prior to payment. This approval should be indicated in writing.

D) Invoices and other supporting documents are part of the required records and must not be destroyed, but retained as support for the cash disbursements. These documents may only be destroyed in accordance with the Archdiocesan Record Retention Policy, available here.

E) After payment, invoices should be marked to reflect the check number and date paid.

F) Invoices should be kept alphabetically in files by vendor for the fiscal year July 1 through June 30. Files should be kept separately for each fiscal year.