2004 Financial data for
Sacred Heart (Ingersoll)
Financial statements are available in a PDF format. To view these statements you will require Acrobat Reader (available free of charge).
Balance Sheet 2004 (PDF - 2 kb)
Revenue & Expenditures 2004 (PDF - 9 kb)
A note from Dave Savel, 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.
- Statement of Receipts (Revenue)
- Statement of Expenditures
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 loan fund deposits. Liabilities are mainly comprised of accounts payable and loans payable to the 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. The reason for this is that in the past it was normal under GAAP to expense all capital assets as the costs were incurred. In more recent years these costs are now capitalized and amortized over a reasonable period. Most of our churches however were built long before these new accounting rules. The year 2004 was the first year that a Balance Sheet was prepared and therefore the current statement is absent of any comparable figures. Comparable figures will be available in future year-end statements.
The balance sheet illustrates the financial strength or weakness of a parish. A parish with significant cash and Loan Fund deposits is considered financially strong. A parish with little cash and significant loans payable to the Loan Fund is in a weak financial position.
The Statements of Receipts and Expenditures would be comparable to the income statement of a business although it definitely different. It is essentially prepared on a cash basis and includes both operating and capital results. The top portion of each of these statements details the operating results. These results are basically the day to day revenues and expenses of the parish. The revenues would mainly be comprised of the Sunday, Easter and Christmas collections. The expenses are mainly comprised of facility costs (such as utilities and maintenance), compensation, ministry costs and Diocesan assessment.
The operating results are equal to the Total Operating Receipts less the Total Operating Expenditures. If this amount 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.
At the bottom of these statements the capital results are detailed. Receipts are mainly comprised of bequests, donations for capital projects, PST rebates and Loan Fund withdrawals. Expenditures are mainly comprised of purchases of capital items, building/restoration costs and deposits to the Loan Fund. These results are essentially a capital cash flow statement. It shows the capital acquired and how it was financed. 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 Loan Fund deposits and that borrowing from the Loan Fund is kept to a minimum. This demonstrates parishioner support for the project in question.
The Diocesan Accounting department is currently in the process of revising the Statements of Receipts and Expenditures. Our plan is to create two distinct statements; a Statement of Operations and a Capital Statement.
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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