Budgeting at the Diocese of Gozo's parishes

Abstract

Purpose: The purpose of this dissertation is to analyse the behavioural and organisational issues regarding the centralisation or the autonomy of the budget setting process of the Diocese of Gozo's Parishes. Design: This research was undertaken using an inductive approach. Primary data was collected through various interviews. Interviews were conducted with the Curia's accountant and the Curia's Administrator to understand the issue of centralisation of the budgeting process. Subsequently, interviews with all the parish priests were conducted to understand their budgeting situation and to examine the issue of centralisation and autonomy from their point of view. Findings: The study shows that the importance of budgets is not present in all the parishes. This stems from lack of accounting knowledge and the culture of this religious organisation. The central Curia is trying to improve this by centralising the budgeting process. Although parishes need increased guidance from the central curia, they feel that the budgeting process should remain a task within the parish. Although centralisation of the budgeting process would bring about more efficiency and economies of scale it cannot be entirely achieved in this context. This is because there is still a sense of community within the parishes and the parishioners place more trust in the local community rather than in the centralised institution. Conclusions: Therefore, there should be reinforcement of the current system in order to make it more efficient. Whilst the budgetary process remains autonomous, the Curia should increase guidance and offer training to persons within the parish. The curia should oversee that the budgeting process is carried out diligently whilst leaving its formulation within the parish. Value: The Diocese of Gozo is an important organisation which affects a significant number of people therefore financial efficiency is very important. The Diocese is also in the process of improving its accounting systems. The fact that parishes are dependent on the donations of the parishioners makes the analysis of the effects of the new system on parishes and parishioners worthwhile and appropriate.