Transcription
Parish, School and CemeteryFinancial Administration ManualSummary Table of Contents Topical Index 1.0Foreward 2.0Parish Administration 3.0Diocesan Programs, Officesand Related Organizations 4.0Parish Accounting Program 5.0School Accounting Program 6.0Cemetery Accounting Program 7.0General Bookkeeping Procedures 8.0Quicken Procedural InstructionsAppendix
Parish, School and CemeteryFinancial Administration ManualTable of ContentsSectionPage1.0 FOREWARD1.01 Introduction . 11.02 Purpose of the Manual . 11.03 Scope . 11.04 Diocesan Synod Statutes on Temporal Goods . 11.05 Acknowledgement . 22.0 PARISH ADMINISTRATION2.01 General Parish Business Information and Operations Overview .2.02 Business Conduct and Management .2.03 Parish Finance Council .2.04 Employment Status, Compensation and Benefits .A. Diocesan Priests .B. Order Priests .C. Gifts, Additional Compensation to Priests, Reimbursements for Meals,Payment of Personal Expenses .D. Members of Religious Communities (Brothers and Sisters) .E. Ordained Deacons .F. Lay Employees.G. Independent Contractors .2.05 Lay Personnel Policies and Recruitment .A. Labor Laws .B. Hiring Procedures .C. Employee Exit Procedures .D. Personnel Policies .E. Personnel Files.2.06 Financial Planning and Budgeting .2.07 Internal Control Considerations .A. Honest and Capable Employees.B. Delegation and Separation of Duties .C. Procedures for the Processing of Transactions .D. Suitable Documents and Accounting Records .E. Physical Control Over Assets and Accounting Records .F. Independent Verification of Performance .G. Financial Planning and Budgetary Control .H. Control Over Bank Accounts .I. Control Over Receipts .J. Control Over Disbursements .K. Control Over Petty Cash 2728
Section2.082.092.102.11PageL. Control Over Payroll . 28M. Control Over Purchasing Assets and Paying Expenses . 28N. Control Over Credit and Debit Cards . 29O. Computer Security and Back-up . 30P. Fraud and Irregularities . 30Q. Factual Examples of Weak Internal Controls . 31R. Detection Rules Indicating Internal Control Problems . 33S. Diocesan Contact Person on Matters of Financial Misconduct . 33Free-will Offerings . . 35A. Bequests and Donation. 35B. Offertory and Other Collections. 36C. Votive Lights, Flowers, Sacramental Offerings . 37D. Gifts of Stocks and Bonds . 37E. Acknowledging Contributions for Tax Purposes . 38Fundraising Activities. 39A. Diocesan Fundraising Guidelines for the Parish,School and Related Organizations . 39B. Fundraising Internal Control Procedures . 41C. Acknowledging Fundraising Contributions for Tax Purposes . 41D. General Fundraising for Operations. 41E. Stewardship Initiative or Increased Offertory Appeal . 42F. School Funding Through Fundraising . 42G. School Funding Through Development Efforts . 42H. Parish Share Program (PSP) . 42I. Major Fundraising Campaigns. 42J. Merchandise Discount Program (Script/Gift/Grocery Certificate) . 43K. Bingos . 43L. Raffles . 43M. Rules and Regulations for Reporting and Withholding on Gambling Winnings. 43N. Life Insurance Policy . 44O. Charitable Gift Annuity Program . 44P. Planned/Deferred Giving . 44Parish Share Program (PSP) Campaign . 45A. Assessable and Non-Assessable Income . 45B. Parish Share Program Exemptions . 47C. Reporting Parish Share Program Receipts and Remittances . 48D. Treatment of Parish Subsidy and School Fundraising for PSP. 49E. Prepayment of Parish Share Assessment on Significant Donations/Bequests . 50Savings and Investments . 51A. Savings Accounts. 51B. Investments (Financial Securities) . 51C. Parish Endowment Fund . 51D. Tuition Assistance Fund (Angel Fund) . 52
SectionPage2.12 Fixed Assets . 53A. Fixed Asset Inventory . 53B. Valuation of Fixed Assets . 53C. Capitalization Policy . 54D. Insurance Coverage . 54E. Land and Land Improvements, Undeveloped Land . 54F. Buildings and Building Improvements. 54G. Major Construction / Renovation . 55H. Construction in Progress . 55I. Furnishings and Equipment . 55J. Vehicles . 55K. Repairs and Replacements . 55L. Depreciation . 56M. Insurance Settlements . 56N. Long-term Rental of Parish Property to Others for Non-Parish Use . 56O. One-day Rental of Parish Property for Non-Parish Use . 56P. School Capital Funding Program . 572.13 Protected Insurance Plan . 582.14 Form A and Form B Petitions . 602.15 Borrowing for Operations or Capital Improvements . 622.16 Loans to Individuals, Non-Parish Organizations or Other Entities . 622.17 Tax Related Issues . 63A. Section 501C-3 Tax Exemption Status . 63B. Federal Employer Identification Number (EIN) . 63C. Pennsylvania State Unemployment Program . 63D. Sales Tax and Exemption Number . 64E. Collecting and Remitting Sales Tax . 64F. Unrelated Business Income Tax . 64G. Real Estate Tax . 65H. Pittsburgh Business Privilege Tax . 652.18 Programs, Organizations and Other Funds . 66A. Elementary School Operations . 66B. Regional School Participation (Jointure) . 66C. Pre-School, Extended Care and Kindergarten Programs . 66D. Cemetery Operation . 66E. Parish Related Organizations . 67F. Other Worshiping Communities Within or Assigned to a Parish . 68G. Mass Stipend Fund . 69H. Tragedy/Illness Funds . 702.19 Tuition Billing and Collection . 712.20 Parish Annual Financial Report . 722.21 Parish Financial Audit . 722.22 Record Retention Schedule . 73
SectionPage3.0 DIOCESAN PROGRAMS, OFFICES AND RELATED ORGANIZATIONS3.01 Deposit & Loan Program.3.02 Common Fund .3.03 Lay Employee Pension Program .3.04 Priests’ Benefit Plan Program .3.05 Diocese of Pittsburgh Foundation .3.06 Office for Stewardship and Development .3.07 Office for Insurance / Employee Benefits .3.08 Centralized Payroll System .3.09 Office for Property Planning and Development .3.10 Office for Legal Services .3.11 Office for Financial Services .3.12 Office for the Auditors/Analysts .3.13 Missions Office (Society for the Propagation of the Faith) .3.14 Parish Cemetery Services Department .3.15 Other Diocesan Offices, Programs and Corporations . Catholic Charities Catholic Cemeteries Association Diocesan Purchasing Commission Pittsburgh Catholic Publishing Association (Newspaper)3.16 Diocesan Website .757575757676767676777777777778784.0 PARISH ACCOUNTING PROGRAM4.01 Introduction to Parish Accounting Program . 794.02 Parish Account Number Codes . 804.03 Parish Account Number Code Descriptions. 904.04 Parish Financial ReportsA. Checkbook Activity Report. 115B. Balance Sheet. 122C. Financial Statement . 1235.0 SCHOOL ACCOUNTING PROGRAM5.01 Introduction to School Accounting Program . 1355.02 School Account Number Codes. 1365.03 School Account Number Code Descriptions. 1435.04 School Financial ReportsA. Checkbook Activity Report . 160B. Balance Sheet . 163C. Financial Statement . 1646.0 CEMETERY ACCOUNTING PROGRAM6.01 Introduction to Cemetery Accounting Program . 1736.02 Cemetery Account Number Codes . 1746.03 Cemetery Account Number Code Descriptions . 1796.04 Cemetery Financial ReportsA. Checkbook Activity Report .190B. Balance Sheet .192C. Financial Statement .193
SectionPage7.0 GENERAL BOOKKEEPING PROCEDURES7.01 Daily Bookkeeping Procedures . 1977.02 Monthly Bookkeeping Procedures . 1987.03 Annual Bookeeping Procedures . 2007.04 Bank Accounts to be Reported . 2007.05 Eligible Check Signers . 2007.06 Voiding a Check . 2007.07 Monthly Insurance Billing . 2017.08 Employee Payroll Deductions for Health Insurance Coverage . 2017.09 Allocating Expenses between the Parish, School and Other Programs . 2017.10 Paying Shared Expenses . 2027.11 Recording Parish Subsidy to the Elementary School . 2027.12 Transfers Between Checking Accounts on the Accounting System . 2027.13 Recording General Fundraising . 2027.14 Major Fundraising Campaign . 2027.15 Organization Fundraising . 2037.16 Parish Share Receipts, Remittances and Refunds . 2037.17 Pittsburgh Catholic Newspaper Expense . 2037.18 Remitting Diocesan Collections . 2037.19 Donation Remitted in Lieu of a Collection . 2047.20 Remitting Checks to the Diocese . 2047.21 Donations Given to Local Organizations . 2047.22 Recording Donated Property / Gifts . 2047.23 Organization Expenditures Benefiting the Parish or School . 2047.24 Construction in Progress . 2047.25 Insurance Settlement Proceeds . 2057.26 Extraordinary Maintenance Expense . 2057.27 Recording Cemetery Expense, Subsidy, Receivable or Borrowing . 2057.28 Cash Payment to Elementary School Teachers Not Opting forMedical Insurance Coverage . 2057.29 Tax Withholding Requirements for Raffles and Bingo Winners . 2057.30 Reporting Employee Compensation . 2057.31 Form 1099 for Self-employed Individuals . 2067.32 Completion of Manual Input Forms . 2068.0 QUICKEN PROCEDURAL INSTRUCTIONSIntroduction . 2118.01 Getting Started . 2128.02 Entering Transactions . 2138.03 Reconciling to Bank Statement . 2228.04 Inputting Budget Data . 2238.05 Sending Monthly Data to the Diocese . 2278.06 Sending Budget Data to the Diocese . 228
APPENDIXA. Parish Finance CouncilB. Parish Audit CommitteeC. Annual Financial Representation LetterD. Employee Versus Self-Employed DeterminationE. Lay Employee BenefitsF. Form 1099 Worksheet and InstructionsG. Sample Job DescriptionsH. Employment Application FormI. Employee Exit Interview FormJ. Unemployment Compensation FormK. Budget Process FormsL. Petty Cash Fund ProceduresM. Offertory Policy and ProceduresN. Votive Lights FormO. Stock and Bond Sale ProceduresP. Federal Tax Requirements for Charitable ContributionsQ. Internal Control and Other Procedures for: Merchandise Discount Program Bingo Raffles Other Fundraising Involving Gambling Other Fundraising Not Involving GamblingR. Reporting and Withholding Gambling WinningsS. Parish Endowment Fund GuidelinesT. Tuition Assistance Fund GuidelinesU. School Program Capital FundingV. Form A and Form BW. St.Vincent de Paul SocietyX. Annual Financial ReportY. Maintaining a Tuition Control AccountZ. Organizational Code of ConductAA. Record Retention ScheduleBB. Diocesan Property Disposition GuidelinesCC. Charitable Gift Annuity ProgramDD. Request to Conduct a Capital Campaign with Exemption from PSP Assessment
TOPICAL INDEXAAccount Number Codes:Cemetery, 174, 179Parish, 80, 90School, 136, 143Assessable Income, 45Adult Education Program (RCIA),81, 86, 93, 106Assets:Account Number Codes:Cemetery, 174, 175, 179Parish, 80, 81, 90School, 136, 137, 143Buildings, 54Building Improvements, 54Capitalization Policy, 54Discarded, 53Fixed Assets, 53Physical Control, 24, A.7Purchasing Controls, 28Sold, 46, 53, 89, 91, 114,178, 188, V.1, BB.1Addhead for Windows, 228Assigned Property, 60, V.1Administration Expense Codes:Cemetery, 75, 185Parish, 83, 99School, 139, 150Associations - Pious, 68, W.1Accounting Program:Cemetery, 173Parish, 79School, 135Acts 33 & 34, 18Adopted Family Program, 86, 108Administrative Records Retention,AA.1Administrator / Pastor, 3Adoption Agreement- Endowment Fund, S.6Advanced Tuition Income,3, 137, 145Advisory Body:Finance Council, A.1Pastoral Council, A.1, AA.2Alienation of Property - Form A,60, V.1Allocating Expense, 201, 202Angel Fund, 52, 83, 98, T.1Athletics:Account Number Codes,141, 155Proof of Health Insurance, 59Audit:Diocesan Audit,72, A.6, AA.7Parish Audit Committee,7, A.6, B.1Auditors/Analysts - Office For, 77Automobile Insurance,58, 85, 104, 140, 153Auto Insurance Allowance- Priests, 9Automatic Postings, 3Auxiliary Organizations(See Organizations)Bank Account:Auxiliary Organization(See Organizations)Cash Account NumberCodes:Cemetery, 175, 179Parish, 81, 90School, 137, 143Checkbook Balance, 198, 206Checking Account AssignedNumber:Cemetery, 175, 179Parish, 81, 90School, 137, 143Check Signers, 5, 25, 27, 200Control, 25, 32Credit Memo, 197, 215Debit Memos, 198, 214Deposits, 197Deposit Advice, 27Facsimile Signature, 27Fraud, 32Open/Close, 25Opening Sealed Statements,26Original Cancelled Checks,26Payroll Draft, 198Presigned Check, 27Reconciliation, 26, 199, 222Savings Account(See Investments)Signature Cards, 26, 67, 200Statement Cut-off, 26To be Reported, 200Transfers Between Accounts,82, 94, 137, 145, 175, 182,202Bank Reconciliation, 26, 199, 222Annual Financial InformationPublication:Parish, 5, 72, XSchool, 5, 72, XBAnnual Financial ReportRepresentation Letter, 6, C.1, C.2Bag Control List, M.8Basis of Accounting, 3Balance Sheet:Cemetery, 192Parish, 122School, 163Barter Property, 60, V.1Annuities, 44, CC.1Anti-Virus Software, 30Application Form forEmployment, 14, H.1Background Checks,13, 15, 17, 18, H.1, H.5Bank Statements:(See Bank Account)Baptismal Offerings, 37, 82, 96Benefit Plan - Priests’, 9, 75Benefits:Brothers, 10Diocesan Priests, 8i
Employee Option toPurchase, E.2Lay Employees, E.1Office for Insurance/Employee, 76Order Priests, 9Religious Communities, 10Sisters, 10Bequests:Account Number Codes:Cemetery, 176, 183Parish, 82, 96School, 138, 146Assessability, 45, 48, 50Capital Campaign, 36Charitable Bequest InitiativeProgram, 35Controls, 32General, 35Parish Endowment Fund, S.2Real Property, 36Restricted, 35, A.7Securities, 51Significant (PSP), 50Bereavement Leave, E.2Bidding Process, 29Binated Mass, 70Bingo:Fundraising Guidelines, 39Internal Control, 23, 43, Q.16Tax Regulation, 43, 205, R.1Bishop’s Education Fund:Account Codes,89, 113, 138, 146Foundation, 76Boiler Insurance:Account Codes, 85, 104, 140,153, 178, 188Coverage, 58Bonds:Acknowledgment, 38, O.5Gift, 37Investment in, 51Irrevocable Power Form, O.4Letter of Intent to Give, O.1Sales Procedures, O.1Social Stewardship, 38Bookstore Operation, 141, 156iiBookkeeper:Responsibilities, 6, C.1, Z.1Sample Job Description, G.4Broker (Stocks & Bonds) Diocesan, 38, O.1Buildings:Account Number Codes:Cemetery, 175, 180Parish, 81, 91Improvements, 54Rental (See Usage Income)Rental Property (See Rental)School Capital Funding, U.1Brothers (Religious), 10Business Conduct, 6, 23, C.1, Z.1Budget:Balanced Budget, 21Budget Process, 21Budgetary Control, 25Due Date, 21Finance Council’s Role, A.6Financial Planning, 21, 25Monitoring, 21Parish Directions, K.1.AParish Lay PersonnelInstructions, K.1.CParish Lay PersonnelSchedule, K.1.BParish Religious Perso
2.09 Fundraising Activities A. Diocesan Fundraising Guidelines for the Parish, School and Related Organizations B. Fundraising Internal Control Procedures C. Acknowledging Fundraising Contributions for Tax Purposes D. General Fundraising for Operations E. Stewardship Initiative or Increased Offertory Appeal F. School Funding Through Fundraising
