The financial management of Gozitan parishes : an analysis of selected components

Abstract

Purpose: This study aims to analyse financial management practices within Gozitan parishes focusing on the following components: financial planning and budgeting, cash handling and controls, financial record-keeping and financial reporting. Furthermore, it seeks to delve into the issues encountered by those handling parish finances and gather their recommendations for enhancing financial management practices within Gozitan parishes. Design: A qualitative approach was adopted. Fifteen semi-structured interviews were conducted with individuals in charge of parish finances. Findings: Upon examining the financial management practices, it became evident that parishes in Gozo have diverse strategies on how they manage their finances. None of the parishes had a formal structure in place, with only a single individual bearing the majority of financial management duties within the parish. Financial planning and budgeting processes were primarily informal. Furthermore, the analysis uncovered notable differences in the handling and controlling of cash. Similarly, a diverse range of financial recording and reporting practices, from manual documentation to computerised systems, were discovered. While each parish showcased its unique practices, a common thread of acknowledging the existing challenges in financial management emerged. This collective recognition led to many suggestions to address these issues and enhance financial management practices across Gozitan parishes. Conclusion: Despite the many practices identified, the absence of a formal framework emphasises the vital need to restructure parish financial management operations. By implementing suggested procedures and fostering a culture of accountability and transparency, Gozitan parishes can navigate financial issues more effectively and ensure long term sustainability. Value: The study’s findings are valuable for the Diocese of Gozo and provide crucial insights for those managing parish finances. Moreover, given the limited research in this area and a global rise in church asset misappropriation, parishioners must understand how their contributions are managed and utilised.