Do I have to wait until I fill out the Parish Financial Report at fiscal year end to see if I
balance or can I do this on a monthly basis with my computerized printouts?
You can use your monthly financial statements (see previous question) to see if your
parish is in balance. You will first need your Balance Sheet for June 30, 20XX from the
previous fiscal year. The bank account balance minus any liabilities (payroll and
accounts payable) will give you an adjusted bank balance (Cash on Hand), and then this
adjusted bank balance will be added to your Profit and Loss Statement’s Total Income.
Then take the period ending Balance Sheet bank account balance and subtract the
liabilities (payroll and accounts payable), then add this adjusted bank balance (Cash on
Hand) to your Profit & Loss Statements Total Expenses. These two new totals should
agree with one another. Please see the following example:
Balance Sheet dated June 30, 2004 lists the following balances:
Parish Checking: $1,200.00
Payroll Liabilities: $300.00
Accounts Payable: $100.00
Balance Sheet dated October 31, 2004 lists the following balances:
Parish Checking: $1,700.00
Payroll Liabilities: $100.00
Accounts Payable: $0.00
The parishes Profit and Loss (Income) Statement for the period of July 1, 2004 to
October 31, 2004 lists the following totals:
Total Revenue (Income): $30,100.00
Total Expenditures: $29,300.00
Using the above three reports, the following calculation would be performed to show the
period of July 1, 2004 to October 31, 2004 is in balance:
1. Taking the parish checking account balance from the June 30, 2004 Balance
Sheet and subtract the payroll liabilities and accounts payable from parish
checking which will result in a total of $800.00 cash on hand.
2. Taking the parish checking account balance from the October 31, 2004 Balance
Sheet and subtract the payroll liabilities and accounts payable from parish
checking which will result in a total of $1,600.00 cash on hand.
3. Add the June 30, 2004 cash on hand of $800.00 to the total revenue of
$30,100.00, which will result in $30,900.00 total cash receipts.
4. Add the October 31, 2004 cash on hand of $1,600.00 to the total expenditures of
$29,300.00, which will result in $30,900.00 total cash expenditures.
5. See numbers 3 and 4 above results of the totals agree, which mean that the parish
is in balance for the period. Now do the same for your Mass Stipend Account
and Cemetery Account.
