The budgeting process in the Archdiocese of Malta

Abstract

This dissertation focuses on one of Malta's most significant non-profit organisation: the Church. It is responsible for the majority of the religious organisations one finds on the Island such as parishes, homes and many other necessary services. The main objectives of this dissertation is to analyse the budgetary process currently applied by the Archdiocese of Malta and if it is being applied in practice. In this scenario this study seeks to design and develop objective indicators of the performance of the currently applied budgetary system. The primary data needed was obtained from a personal interview with the financial controller at Curia focusing on the currently applied systems and procedures. Other information, on how the system is being applied, was obtained through interviews with various Parish Priests. The preparation of the whole budgetary accounts is made at Curia by responsible staff. To facilitate such process, the Administrators of the particular entities headed by the church such as parishes, homes and institutions are assigned this job. Preparation of budgets is essential in aiding to achieve the entity's organisation. The recommendations suggested in this dissertation show that if the church in Malta makes certain modifications to the currently applied practices in a professional manner, it will enhance the efficiency of such organisation. Moreover, the church must encourage voluntary work since it is the main pillar that sustains the church organisations. It also indicates an area for further research which has to do mainly with the advantages that the organisation can benefit from adopting functional budgets.