Budget & Financial Review Process

Diocese of Peoria
Budget & Financial Review Process
Separately Incorporated Schools

Each year, the separately incorporated schools in the diocese are required to have their budgets approved by the Bishop after they have been approved by their respective Boards of Trustees/Education Commissions. The budget and financial review process is being revised for the 2013-2014 school year and will include the following steps:

  • A Diocesan review team will participate in a working budget meeting at the Spalding Pastoral Center. The Diocesan team will consist of the Superintendent and Financial Services Coordinator from the Office of Catholic Schools, and representatives from the Diocesan Office of Finance. The intent of the meeting is for the Diocesan representatives to assist during the formulation of the school budget. School participation for this process might include the pastor, principal, business manager, finance committee, or board chair or president; however, the determination of persons present for the school is made by the school.
    • At least 10 working days prior to the scheduled meeting date, the schools are asked to submit their preliminary budgets to the Office of Catholic Schools so Diocesan team members will have time to review the materials prior to the meeting. Materials submitted should include a budget commentary detailing enrollment projections, tuition and fee schedule, projected salary schedule and any other explanations necessary for the Diocesan team to make informed observations and comments. Audited financial statements for the
      preceding year (or preliminary drafts) and the auditors’ management letter should be included in the materials submitted in advance for the meeting.
    • The budget discussion roundtable should include both the operational and capital budgets for the coming year. A maximum of two hours will be allowed for discussion. The status of the recommendations from the previous year’s budget review will also be considered.
  • Although the format for submitting both the preliminary and final budgets is not mandated, it is recommended that,
    • The budget worksheets contain columns which allow comparisons of the proposed budget with the current budget, the current actual to date, and the actual for the last completed fiscal year(s).
    • In addition to the details, each budget package is to contain a summary table of the major operational income and expense categories as well as total operational income and expense with the balance or surplus/deficit stated.
    • The capital budget, whether stand-alone or part of the operational budget, should include a description of the anticipated capital needs as well as the resources that will fund them.
  • Each school will later submit its final board-approved budgets for the coming year–both operational and capital–along with a budget commentary detailing the final budget parameters [enrollment projections; tuition & fee schedule; & projected salary scale] as well as any other needed explanations for the Bishop’s approval.
  • It is assumed that the budget submitted for the Bishop’s approval will have been approved by the school’s board of trustees/education commission and that the budget presented will include all sources of income and all expenses [for the school
    itself and any related entities], and that the budget presented will be both its operational and capital projections for the coming year. [Note: Per the reserved powers, the Pastors’ Board approval is ONLY needed for a deficit budget.]
  • The Diocesan team will review the final budget submission and prepare its report and recommendations about the budget [and financial statements] to the Bishop for approval. The report will include commendations for the school as well as recommendations. If the Bishop accepts the report, he would then approve the overall budget for the coming year. After the Bishop’s approval, any significant variations from the approved budget need to be resubmitted to the Office of Catholic Schools.
  • The report with the Bishop’s approval or denial will ordinarily be sent to the school within 2-3 weeks of submission of all final budget materials and prior year audited financial statements.
  • This process is designed to allow the Diocese to provide financial oversight for separately incorporated schools as well as to monitor the fiscal condition and practices of the schools.

Rev 08/2013

SPALDING PASTORAL CENTER | 419 NE MADISON AVENUE | PEORIA, IL 61603 | PHONE (309) 671-1550 | FAX (309) 671-1579
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