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Chapter 10 The Administration of Temporal Goods
The Temporal Goods of the Institute
155. The Institute, the Provinces, and the Districts have the right to acquire, possess, alienate, and administer material goods, according to their respective powers1. Houses cannot own nor alienate property.
155.1 In order to safeguard the interests of the Institute, it is advisable that the Institute, the Provinces, and the Districts, as well as some of their works, be set up as juridic persons in civil law, where the law of the country requires or permits it. Their legal Statutes must be approved beforehand by the Brother Superior General. (cf 137.4.12)
155.2 The possessions of the Institute consist of liquid assets and fixed assets.
The administration of liquid assets is carried out by the Brother Econome according to the investment policies adopted by the Brother Superior General, or by the Brother Provincial, as the case may be. This constitutes ordinary administration.
The Brother Provincial has responsibility for the administration of what constitutes the stable patrimony of the Institute. He follows the prescriptions of Canon Law and keeps in mind the amount authorised for the Province. On the level of the General Administration, when it is necessary, permission of the Holy See is to be requested. This constitutes extraordinary administration. (c 638; cf 137.3.11; 150.2.8)
155.3 When several Provinces together take responsibility for an apostolic work, they must, by common agreement, draw up Statutes concerning it.
The Brother Bursar
156. Brothers appointed to administer the assets of the Institute are administrators, not owners, of the goods of the Church. In their management, they show great concern for the common good, for justice, for poverty and charity, and they keep in close touch with the apostolic ministry of the Brothers. Their method of management will respect the Canon Law1.
156.1 As a matter of justice, Brothers who are responsible for the administration of the temporal goods of the Institute should see that our helpers receive a salary that meets the requirements of the laws of the country, and that they benefit from social security systems. (c 1286.2; cf 88.3)
157. Brothers Bursar have the power to make their own decisions in the day-to-day matters of their administration1. They refer extraordinary matters to their respective Superiors.
157.1 All accounts, whether in banks or elsewhere, must carry at least three signatures, of which two are required for any withdrawal. One of the two should normally be that of the Superior or of the Bursar. This holds good for all levels of administration - general, provincial, and local.
The Use and Management of Goods
158. The General Chapter gives directives for the administration of the goods of the Institute. It makes an examination of the financial operations of the General Administration.
At each level of government, it is the Superior who, following the general directives and taking into account any special circumstances, decides how the assets are to be used and how they are to be administered. He also supervises the financial operations.
158.1 The Brother Superior General determines the maximum amount that a Province or a District dependent on him can dispose of without authorisation. At the request of the Brother Provincial or of the Brother Superior of a District, and after an examination ofthe financial situation of the administrative unit concerned, this amount may be changed. (cf 137.4.10)
158.2 The savings that the apostolic works and the communities may make, and the returns from the Brothers' work belong to the Institute and are held in common for all its members.
158.3 Without authorisation, a house or a Province may not divert from the common fund any amount, whatever be its source.
The Increase of Capital
159. Only the Institute and the Provinces can augment capital. Capitalisation should be in keeping with social and economic responsibilities and should be carried out prudently1.
The Brothers responsible, aware of their commitment to poverty and sensitive to the needs of the world, will direct some of the suplus funds to help poorer Provinces, missions, and works for the poor2.
Brother Econome General
160. The Brother Econome General1 has charge of the finances of the General Administration. While respecting the limits of the powers given him, he arranges the use of the Institute's resources so that they give a reasonable return. He exercises his mandate under the direction of the Brother Superior General and under the control of his Council.
He asks the Brother Provincial Bursar to send him whatever documents he may need for the management of the Institute's assets.
160.1 Each year the Brother Econome General presents the financial statement of the General Administration to the Brother Superior General for approval. At the same time, he presents information concerning the financial situation of the Provinces and Districts. (c 636, 2; cf 137.4.11)
160.2 The Brother Econome General has the right to audit the accounts of the Provinces, Districts, communities, and apostolic undertakings.
160.3 The Brother Econome General files in the archives an abstract of the title deeds of each property of the Institute, authenticated by a notary. For this purpose, he supplies the Provinces with a model of the document required. (cf 161.6)
160.4 The Brother Superior General appoints two Brothers, or more, to constitute, with the Brother Econome General, the Finance Committee of the Institute. This Committee helps the Brother Econome General in his task, advises on questions of investment, and studies requests involving finance that are submitted to the Brother Superior General for approval. Before making a decision, the Brother Superior General takes heed of the Committee's recommendations. (c 1280; cf 137.4.5)
160.5 Before the beginning of the financial year, the Brother Econome General, with the help of the Finance Committee, draws up the provisional budget of the General Administration. He submits it to the Brother Superior General and his Council for approval.
The Provincial Bursar
161. The Brother Provincial Bursar1 is appointed by the Brother Provincial for a set term. He must be perpetually professed. He administers the assets of the Province and carries out his role under the authority of the Brother Provincial and his Council. He gives directives to the local Bursars so that there may be a co-ordinated management throughout the Province. (cf 150.3.4)
161.1 The Brother Provincial Bursar is appointed for three years. He may be re-appointed consecutively twice.
161.2 The Brother Provincial appoints a Provincial Councillor and at least two other competent persons who, with the Brother Provincial Bursar, constitute the Provincial Finance Committee. The Brother Provincial pays attention to the remarks or recommendations of this Committee. (c 1280; cf 150.2.5)
161.3 Before the beginning of the financial year, the Brother Provincial Bursar, aided by the Finance Committee, draws up the provisional budget of the Province and submits it to the Brother Provincial for his approval. (cf 150.2.9)
161.4 Each year the Brother Provincial Bursar presents for the approval of the Brother Provincial, the financial report summarising the situation of the houses, of the undertakings, and of the Province, as well as the state of properties, of borrowings, and of loans. A copy of these documents is forwarded to the Brother Econome General. (c 636, 2; cf 150.2.9)
161.5 The Brother Provincial decides on the type of books of finance to be used in the houses, and specifies when reports are to be sent to the Brother Provincial Bursar. In the interests of control, the Brother Provincial and the Brother Provincial Bursar have the right to have access to the account books and associated documents.
161.6 In a safe place in the Provincial archives, the Brother Provincial Bursar files away:
1. all title deeds and documents connected
with them, such as mortgages, powers of attorney, wills of property owners, leases, and insurance policies. An official abstract, authenticated by a notary, of the title deeds of each property will be sent to the Brother Econome General along the lines of the document he provides as model.
(cf 160.3)
2. Documents relating to the foundation of any house which does not belong to the Institute. (c 681, 2)
161.7 The resources of the Province Fund will be used primarily to support formation centres, study houses, infirmaries, and retirement homes, to establish and develop educational undertakings, to promote apostolic activities, and to set up reserve funds.
161.8 The Brother Provincial should see that the Brothers are covered by insurance, according to their needs and to the circumstances of the country.
161.9 Engaging a lay professional to administer an undertaking of the Institute or to audit financial reports, is the responsibility of the Brother Provincial. He does this in due legal form. (cf 150.2.17)
161.10 If the Province manages some particular undertaking, the Brother Provincial Bursar takes care to supervise the account books and, for purposes of control, to present a report to the Brother Econome General.
161.11 To borrow or to lend a sum of money that exceeds the authorised amount, the Brother Provincial must present a request for authorisation to the Brother Superior General. This request will detail the conditions under which the borrowing or the loan is to be made, and the conditions of repayment. (c 638, 3; cf 137.3.11)
161.12 A Province that has contracted debts or other financial obligations, even with the permission of Superiors, is responsible for their repayment. (c 639, 1)
A Brother who contracts debts or other financial obligations without valid permission is solely responsible for them. The Institute, the Province, or the house cannot be held liable for the repayment.
(c 639, 2 and 3)
161.13 Before permitting any new construction, the Brother Provincial should make a detailed study to make sure that it is needed, to see the impact it would have in the social milieu, and to see whether it meets the requirements of evangelical poverty.
Any project for building or for modifying an existing building is to be submitted to the local Superior and to the community for their advice. As a rule, construction work is supervised by the Brother Provincial Bursar.
161.14 Before beginning a project that involves a large sum of money, those responsible will examine the financial situation of the Province and the means of funding. The project will not be begun until it has been studied by the Finance Committee and approved by the Brother Provincial, or, if necessary, by the Brother Superior General. (cf 137.3.11; 150.2.8)
161.15 Modifications that considerably change an existing building may be undertaken only with the authorisation of the Brother Provincial, even if the expenditure involved lies within the limits of the local Superior's powers. (cf 150.2.8; 152.6.4-5)
162. The Brother Provincial appoints, for a set time, a Brother Bursar1 to manage the assets of the community. He must be perpetually professed. He administers the assets of the community, under the control of the Brother Superior and his Council. He is attentive to the needs of each Brother.
If the community is small, the local Superior can undertake the administration himself.
162.1 The term of office of the local Brother Bursar is three years. He may be re-appointed consecutively twice.
162.2 At the local level, the accounts of the apostolic work and those of the community should be kept separate.
162.3 Each community, house, and apostolic work draws up its annual budget and, at least one month before putting it into operation, presents it to the Brother Provincial for his approval.
(cf 34.2; 150.2.9)
162.4 When the ordinary administration has been provided for, the houses send their surplus to the Provincial Fund, in the manner indicated by the Brother Provincial.
162.5 When a contract has been signed between the people responsible for an apostolic work and the Province, the Brother Provincial alone can modify its provisions, with the approval of the Brother Superior General, when this is required. (cf 150.2.14)
162.6 On the local level, the account books will be set out in the way indicated by the Brother Provincial Bursar. (cf 161)
162.7 The financial report is drawn up as indicated by the Brother Provincial Bursar along the lines of the model that he has supplied. The annual financial report is sent to him after being checked and signed by the Brother Superior and the members of his Council. (cf 152.6.3)
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