You're correct about pastoral councils. In my diocese, they are mandated, but I had forgotten it's not universal law.

FWIW, my diocese also mandates pastors must seek the diocese's approval for expenditures above a certain amount. 

And, while you're correct that a finance council is advisory, that doesn't mean they can't make a lot of noise, if they want to. My point was that in this parish, people ought to have been making noise. If people are passive, impose all the rules on the priest you want; they will do little good. Heck, if you didn't even let the priest touch a single penny, but had someone else do it? The same problems would show up, but with someone else stealing the money.