2005 Financial data for
Immaculate Heart of Mary (Grand Bend)
Financial statements are available in a PDF format. To view these statements you will require Acrobat Reader (available free of charge).
Balance Sheet 2005 (PDF - 2 kb)
Revenue & Expenditures 2005 (PDF - 4 kb)
September, 2006
A note from Dave Savel, CA, Financial Administrator
Every six months all the parishes in the Diocese of London submit a package of financial information in both paper and electronic format to the Diocesan Accounting department. This package is used by the Diocesan Accounting department to prepare financial statements in a standardized format for each parish. At year-end (December 31st) the Diocesan Accounting department performs some limited audit procedures to verify the accuracy and reasonableness of the statements. Once this process has been completed each parish is provided with a copy of its financial statements, the consolidated parish financial statements and a financial analysis comparing it to other parishes of a similar size. These financial statements form the basis for the consolidated parish financial statements that are presented to our auditors, KPMG, in order for them to complete our year-end audit.
Each parish has three statements:
- Balance Sheet
- Operating Statement
- Capital Statement
These statements are mainly prepared on a cash basis as opposed to an accrual basis. They are prepared this way in order to simplify the method of accounting and therefore reduce the risk of error. Adjustments are made by the Diocesan Accounting department on the consolidated results to ensure the statements comply with Generally Accepted Accounting Principles (GAAP) as determined by Canadian Institute of Chartered Accountants (CICA).
The Balance Sheet lists the assets, liabilities and equity at a point in time. The assets are mainly comprised of cash, accounts receivable and parish loan fund deposits. Liabilities are mainly comprised of accounts payable and loans payable to the Parish Loan Fund. The equity is the net difference between the assets and liabilities. You will notice immediately that the church, rectory and any other buildings the parish owns are not included as an asset on the balance sheet although in fact in most parishes the buildings would be the most valuable asset. After careful consideration, and in consultation with our auditors, KPMG, our Diocesan Audit Committee decided not to expense all capital asset purchases.
The balance sheet illustrates the financial strength or weakness of a parish. A parish with significant cash and Parish Loan Fund deposits is considered financially strong. A parish with little cash and significant loans payable to the Parish Loan Fund is in a weaker financial position.
The Operating Statement is akin to an income statement for a business. If the bottom line is positive the parish has earned a surplus for the year however if the result is negative the parish has incurred a deficit or loss for the year. A parish that has incurred a loss will need to make changes in its operations in order to get its expenses in line with its revenues.
The Capital Statement details the capital results. Receipts are mainly comprised of bequests, donations for capital projects and PST rebates. Expenditures are mainly comprised of purchases of capital items and building/restoration costs. It is important to note that any donations received for capital/building can only be used for that purpose. These donations cannot be used to fund operations. A surplus earned in operations however can be used to fund capital costs.
Generally one would like to see that any capital costs are funded by capital donations and/or use of previously saved Parish Loan Fund deposits and that borrowing from the Parish Loan Fund is kept to a minimum. This demonstrates parishioner support for the project in question.
Dave Savel, CA
Financial Administrator
Diocese of London
1070 Waterloo Street
London, Ontario
N6A 3Y2
Phone: 519-433-0658 ext. 222
Fax: 519-433-0011
dsavel@rcec.london.on.ca
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