2009 Parish Resource Manual - 2010-06-14

Parish and School
Resource Manual
Finance and Technology

Diocese of Des Moines Finance Department
Des Moines, Iowa

Published November 2009
June 2010
Table of Contents

I. Financial Statements and Accounts Page
A. Statement of Financial Position I.1
B. Statement of Dedicated Accounts I.3
C. Statement of Activities I.4
D. Debits and Credits I.5
E. Chart of Accounts with Descriptions I.6
1. Standardized Chart of Accounts I.6
2. Statement of Financial Position Accounts I.7
a. Editing Account Descriptions I.7
b. Statement of Financial Position Chart of
Accounts I.8
3. Statement of Dedicated Chart of Accounts I.20
4. Statement of Activities Accounts I.23
a. Statement of Activities Account Explanation I.23
b. Inserting a New Account I.25
c. Statement of Activities Chart of Accounts I.26

II. Internal Controls Page
A. Internal Controls Introduction II.1
B. Separation of Duties II.2
C. Bank Accounts II.3
D. Scrip II.5
June 2010
E. Other Parish Organizations II.8
F. Internet Banking / ACH Transfers / Wire Transfers II.9
G. Cash Disbursements II.10
H. Other Cash Receipts II.11
I. Cash Count Procedures II.12
J. Deposits II.18
K. Office Organization II.20
L. Financial Records Retention II.22

III. Payroll Page
A. Independent Contractor vs. Employee III.1
B. Priest Compensation III.2
C. Payroll Liabilities III.7
1. Employee Insurance II.8
2. Flex Plan/Dependent Care III.11
3. Employee Retirement Plan III.12
4. Payroll Taxes II.13
5. W-2/W-3 Instructions II.14.a
D. Employee Checklists III.15
E. ParishSOFT (CMS) Payroll Module Users III.17
1. Payroll Module Overview III.17
2. Important Points to Remember in ParishSOFT (CMS)
Payroll III.20
3. Employee Benefit/Deductions III.21
June 2010
F. Parishes/Schools Outsourcing Payroll III.24
IV. General Ledger Page
A. Recording Contributions and Other Receipts IV.1
1. Automatic Transfer from ParishSOFT Offering and
Pledges to ParishSOFT (CMS) Ledger and Payables IV.2
B. Processing Invoices IV.3
1. Sales/Use Taxes IV.4
2. Special Check Situations IV.6
3. 1099s IV.10
C. Journal Entries IV.11
D. Restricted Assets IV.13
E. Investment Gains and Losses IV.14
F. Tuition and Fees IV.16
G. Funds Held for Others (FHFO) IV.17
H. Capitalization and Fixed Assets IV.18
I. Depreciation of Fixed Assets IV.19
J. Net Assets IV.21
K. Suggested Activity Checklist IV.26

V. Special Revenue Information Page
A. Annual Diocesan Appeal V.1
B. Gambling Activities V.3

June 2010
VI. Reports Page
A. Finance Council VI.1
B. Diocese of Des Moines VI.2
1. Process to Transmit CMS Data to Diocese /Quarterly
Schedule for Data File Transfer Protocol (FTP) VI.2
2. How to Close a Month VI.3
3. How to Close a Year VI.4
4. Annual Financial Report VI.15
5. Transfer Adjustment to current fiscal year in CMS VI.16
6. Sacramental Registry Reports VI.17
7. Manage Staff List / Positions (ParishSOFT) VI.40
8. ParishSOFT Staff Management Website VI.41
9. Kenedy Reports (Official Catholic Directory) VI.53
C. Parishioners, Parents, Guardians, and Patrons VI.55
1. End of Year Contribution Statements VI.55
2. Annual Report/Budget VI.56

VII. Property and Casualty/Workers Compensation Insurance
A. Property and Casualty Insurance VII.1
1. Claims Reporting Instructions VII.2
2. Special Events Coverage VII.3
B. Workers Compensation Insurance VII.4

June 2010
VIII. Technology Page
A. Software VIII.1
B. Hardware VIII.2
C. Methods to Obtain Software and Hardware VIII.3
D. Software Data Maintenance VIII.4
1. Backups (ParishSOFT) VIII.5
2. File Transfer Protocol (FTP) (ParishSOFT) VIII.10
3. Duplicate Checker (ParishSOFT) VIII.14
4. Compact and Repair / Database Maintenance
(ParishSOFT) VIII.16
5. Synchronization (ParishSOFT) VIII.18
E. Software Training VIII.29

IX. Policies Page
A. Fraud Policy IX.1
B. Policy to Report Wrong Doing IX.3
C. Contract Review Policy IX.5

April 2010 I
I. Financial Statements and Accounts Page

A. Statement of Financial Position I.1
B. Statement of Dedicated Accounts I.3
C. Statement of Activities I.4
D. Debits and Credits I.5
E. Chart of Accounts with Descriptions I.6
1. Standardized Chart of Accounts I.6
2. Statement of Financial Position Accounts I.7
a. Editing Account Descriptions I.7
b. Statement of Financial Position Chart of Accounts I.8
3. Statement of Dedicated Chart of Accounts I.20
4. Statement of Activities Accounts I.23
a. Statement of Activities Account Explanation I.23
b. Inserting a New Account I.25
c. Statement of Activities Chart of Accounts I.26

Purpose Statement: This section provides a general overview of the two main financial
statements and a detailed chart of accounts. The ability to read and interpret financial statements
is very important. As part of that interpretation, a good understanding of the chart of accounts in
ParishSOFT (CMS) Ledger and Payables is necessary.

Diocese of Des Moines Chapter I: Financial Statements and Accounts

November 2009 I.1
Statement of Financial Position (Balance Sheet)

Assets are generally listed at the top of the statement of financial position and liabilities and net
assets follow below. The statement balances (hence the balance sheet title) because assets at the
top equal liabilities plus net assets below.

Assets = Liabilities + Net Assets (Fund Balance)

This equation is the foundation for accounting. If this equation or balance doesnt hold true, then
an error has occurred.

Assets - An asset is a resource owned by the parish/school from which future economic
benefits are expected to flow to the parish/school. In short, something that adds value to
your parish/school.

Liabilities - A liability is a present obligation of the parish/school arising from past
events. It is a claim against the parish/school. Meeting these claims will result in an
outflow from the parish/school. In short, it is something that subtracts from the value of
the parish/school.

Net Assets (fund balance) - By manipulating the equation above, it also holds true that
assets less liabilities equals net assets, as shown below. Net assets are what remain after
the liabilities (claims against the parish/school by outsiders) are subtracted from assets.

Assets Liabilities = Net Assets (fund balance)

If assets exceed liabilities, the parish/school is solvent (has sufficient assets to meet the claims
against the parish/school by outsiders). If liabilities exceed assets, the parish/school is insolvent
(cannot meet the financial claims by outsiders against the parish/school).

Assets

Current Assets A current asset is an asset that is considered liquid (is cash or can be
turned into cash quickly). Checking accounts, short-term investments (certificates of
deposit), and accounts receivable are examples of current assets.

Fixed Assets A fixed asset is an asset that is not considered liquid. These assets
usually cannot be turned into cash quickly. Buildings and land owned by the
parish/school are examples of fixed assets.

Restricted Assets Restricted assets are assets that have been designated for a specific
purpose by the donor or the Finance Council. Any economic benefit derived from these
assets must be used for its intended purpose, therefore it is restricted.

February 2010 I.2
Liabilities

Payroll Liabilities Payroll liabilities are obligations arising because of costs
associated with payroll. Retirement, health insurance, and Federal Insurance
Contributions Act (FICA and Medicare) are examples of payroll liabilities. Money in
these accounts means that the parish/school owes the government, health care provider,
etc.

Funds Held for Others Funds held for others are used to record the temporary
safekeeping of funds raised for special projects/activities. An example of this is money
collected for a field trip by a parish youth group. Monies held in a funds held for others
account represent a liability of the parish/school.

Net Assets (Fund Balance) When a fiscal year is closed in the ledger and payables module, all
income and expense accounts are closed (added to or subtracted from) a certain fund balance
account. The account it is closed to depends on which fund the income/expense is recorded in.

Because these accounts are changed at fiscal year end, they should not change during the year.
No journal entries should be made to the above fund balance accounts without Diocesan
approval.

Also listed in the Net Assets (Fund Balance) section of the Statement of Financial Position are:

Temporarily Restricted This is the total amount of money in the dedicated accounts
that has not been remitted to the Diocese or other intended party.

Current Period Changes The balance in this account reflects the total change in the
balance sheet from month to month during a fiscal year. A positive change illustrates
the parish/school has increased their assets or decreased their liabilities; a negative
change reflects a loss in assets or an increase in liabilities during the current fiscal year.

See Chapter IV, General Ledger, for more information on Net Assets.


November 2009 I.3
Statement of Dedicated Accounts

Dedicated Accounts are liability accounts to record amounts of money received from
parishioners, generally through a Second Collection, for special Diocesan or parish/school
collections. The money is not for the parish/school; the parish/school temporarily holds the
money before remitting either to the Diocese (general ledger accounts in the 2200 series) or to
the beneficiary of the particular parish/school collection (2300s accounts). Parish/school finance
staff will generally remit monies in these accounts to the appropriate place within one month of
collection.

Dedicated account balances are reflected in the Statement of Financial Position in the Fund
Balance section and noted as Temporarily Restricted. The Statement of Dedicated Accounts is
a statement that is reviewed monthly by the parish/schools Finance Council and sent using File
Transfer Protocol (FTP) to the Diocese on a quarterly basis.


November 2009 I.4
Statement of Activities (Income Statement)

The Income Statement records revenues and expenses and shows the profits (losses) generated
by the parish/school for a specific period. The formula for the income statement is shown below.

Revenue Expenses = Net Income/(Net Loss)

Net Income Net Income is usually listed on the bottom line of the Statement of
Activities. A positive number indicates a profit; how much more revenue is collected
during the month after all expenses are deducted.

o The parish/school is collecting revenue at a faster rate than it is spending it.

Net Loss A negative number listed at the bottom of the Statement of Activities
reflects a net loss; more expenses are paid than revenue is collected during the month.
In other words:

o The parish/school is paying expenses at a faster rate than it is collecting
income.


November 2009 I.5
Debit and Credit Effects
Account Type Typical Account
Typical
Balance
DEBIT
Effect
CREDIT
Effect
Asset Savings
Debit
+ Increase - Decrease
Liability Federal Withholding
Credit
- Decrease + Increase
Dedicated Peters Pence Credit - Decrease + Increase
Net Asset/Fund Balance Fund Balance Credit - Decrease + Increase
Income/Revenues Offerings
Credit
- Decrease + Increase
Expenses Payroll Expense
Debit
+ Increase - Decrease

November 2009 I.6
Standardized Chart of Accounts

An added measure of internal control is provided to Diocesan entities through the use of a
standardized Chart of Accounts. While each type of accountAssets, Liabilities, Net Assets,
Income, and Expensehas a unique structure and numbering system, all parishes and schools
use the same account numbers for the same type of account. These standardized accounts allow
the following:

Combination of information for the Diocese as a whole
Analysis of changes and trends over a period of time
Comparison of information among Diocesan entities
Instruction on the proper use of accounts
Collaboration among Diocesan entities on account usage
Information regarding accounting errors


November 2009 I.7
Statement of Financial Position (Balance Sheet) Account Explanation

The Statement of Financial Position consists of three account types:
Assets
Liabilities
Net Assets

The Diocesan chart of accounts distinguishes between these different types of accounts by
number.
All Asset accounts begin with the number 1.
All Liability accounts begin with the number 2.
All Net Asset accounts begin with the number 3.

In addition, the parish/school can edit all account descriptions for the Statement of Financial
Position. To change the account description for a Statement of Financial Position account:

1. Click on the Entry drop down menu in ParishSOFT (CMS) Ledger and Payables.
2. Select Account Entry.

3. Click on Find.
4. Type in the current account description.
5. Double click on the correct account.
6. Next to the account description, click Edit Description.
7. Type in the new description.
8. Click on the close button.
9. Click yes.
November 2009 I.8
Statement of Financial Position Chart of Accounts
Assets
Shortcut No. Account Name Description
Cash and Investment Unrestricted (1000) Monies that may be used for any operational purpose.
1000 Checking Operation Monies that are on deposit in a financial institution handling the checking
account.
1005 Checking Other If additional checking accounts are maintained, they would be recorded here.
Additional checking accounts are discouraged.
1010 Checking Other
1015 Checking Other
1020 Checking Other
1025 Checking Other
1026 Checking Other
1027 Checking Other
1028 Checking Other
1029 Checking Other
1030 Checking Other
1031 Checking Other
1032 Checking Other
1033 Checking Other
1034 Checking Other
1035 Checking Other
1036 Checking Other
1037 Checking Other
1038 Checking Other
1039 Checking Other
1040 Checking Other
1041 Checking Other
1042 Checking Other
November 2009 I.9
Assets
Cash and Investment Unrestricted (1000) Monies that may be used for any operational purpose.
1043 Checking Other
1045 Checking Other
1046 Checking Other
1047 Checking Other
1048 Checking Other
1049 Checking Other
1050 Savings Operations Monies in a savings account used for excess operational funds.
1055 Savings Other Monies in a savings account used for special purpose funds.
1060 Money Market Account Monies in a Money Market type account
1065 Money Market Account
1090 Petty Cash A minimal amount of currency and coin set aside to pay small bills which are
not convenient to pay by check. Balance is operated on an imprest basis which
means that the amount recorded in the account will not change. Monthly
entries will be to various expense accounts and operational cash which will
replenish the funds given out of petty cash.
1100 Certificate of Deposit Monies invested in Certificates of Deposit (CD).
1105 Certificate of Deposit
1150 Investment Account Monies held with an investment broker/company for a wider array of
investment opportunities.
1155 Investment Account
November 2009 I.10
Assets
Parish Council Restricted Cash (1200) Monies the Finance Council has designated for a specific purpose. Funds
may be spent for only that purpose, unless subsequently changed by a vote
of the Finance Council.
1200 Checking Council Restricted
1210 Savings Council Restricted
1215 Savings Council Restricted
November 2009 I.11
Assets
Donor Restricted Cash (1300) Monies donors have restricted for a specific purpose. Funds may only be
spent for that purpose. Only the donors may change the restriction.
1300 Building Fund Monies specifically restricted by donors for a specific building purpose of
substantial value. Usually requires Finance Council and Diocesan approval.
1305 Capital Campaign Fund Monies for major acquisition/construction of assets or multiple assets. Requires
Finance Council and Diocesan approval.
1310 Checking Donor Restricted
1315 Checking Donor Restricted
1320 Savings Donor Restricted
1325 Savings Donor Restricted
1376 Investment Market Adjustment For investments owned at report date requiring an adjustment to market value.
Record the effect of an unrealized gain or loss (debit or credit) in this account
(An unrealized gain or loss is the difference between cost and market value.).
Offsetting entry would be to 410003, Auxiliary Capital Gain/Loss, or to
420013, Exempt Capital Gain/Loss.
1381 Investment Market Adjustment
1386 Investment Market Adjustment
November 2009 I.12
Assets
Other Current Assets (1400) Assets which are capable of being converted into cash usually within a
period of one year.
1400 Prepaid Expenses Payments in advance for expenses where a portion remains unused on the
recording date. These amounts are reversed as the unused portions are
diminished.
1405 Accts Receivable-Employee Amounts due from employees for advance received on wages.
1410 Accounts Receivable-Trade Amounts due from outside third parties for credit extended on the sale of goods.
1415 Accounts Receivable-Tuition Amounts owed by parents/guardians on student tuition.
1420 Accounts Receivable-
1425 Accounts Receivable-
1430 Inventory Goods owned and held for sale. Record Scrip inventory here or in an Other
account if Inventory is not available.
1435 Other
1440 Other
1445 Other
1450 Other
1455 Other
1460 Other
1465 Other
1470 Other
1475 Other
1480 Other
1485 Other
1490 Other

November 2009 I.13
Assets
Fixed Assets (1500) All types of property, buildings, equipment, and furniture above a certain
dollar amount set in the Finance Councils capitalization policy.
1500 Land The only fixed asset not subject to depreciation. Land improvements, such as a
parking lot, are subject to depreciation. Record such land improvements in an
unused building account and label appropriately. Landscaping is considered
permanent and should be capitalized with the land.
1505 Buildings Church
1510 Buildings Convent
1515 Buildings Hall
1520 Buildings Rectory
1525 Buildings School
1530 Buildings - When constructing a building, use as a Building-in-Process account and record
all costs that will be capitalized: materials and labor, architect fees, permits,
special insurance, etc. Landscaping typically should be capitalized with the
land.
1535 Buildings -
1540 Buildings -
1545 Buildings -
1550 Buses
1555 Equipment
1560 Furniture and Fixtures Fixtures include items attached to a building.
1565 Vehicles
Accumulated Depreciation (1600) Records the total amount of depreciation expense recorded. This account is
credited when depreciation is debited. The accumulated depreciation
balance is shown as an offset to the related fixed asset balance.
1600 Accumulated Depreciation Buildings
Church

Convent

November 2009 I.14
Assets
Hall

Rectory

School

1625 Accumulated Depreciation Buildings -
Buses

Equipment

Furniture and Fixtures

Vehicles

Non-Current Assets (1700) Assets which are not easily converted into cash and are long-term in
nature.
1700 Notes Receivable Receivables that are considered longer term and usually have a written
agreement with a stated interest rate, due date, and repayment schedule.
1705 Notes Receivable
1710 Other
1715 Other
1720 Other
1725 Other
November 2009 I.15

Liabilities
Payroll Liabilities (2000) Debts owed related to amounts withheld from employees wages and for
amounts owed by the parish/school for the employer portion of payroll
taxes and other employee benefits. Credit the accounts when amounts
are withheld or accrued and debit when the withholdings are paid.
2000 FICA W/H Payable Amounts withheld (employees portion) or expensed (account 510045,
employer portion) for FICA (Social Security and Medicare) that are due to
the federal government. If desired, an Other Payroll W/H Payable account
may be used to record Social Security and Medicare in separate accounts.
2005 Federal W/H Payable Amounts withheld from employees wages for their federal income taxes.
2010 State W/H Payable Amounts withheld from employees wages for their Iowa income taxes.
2015 Health Insurance W/H Payable Amounts withheld from employees wages (employees portion) or expensed
(account 510010, employee benefit portion to be paid by employer) for
health or vision insurance premiums.
2020 Dental Insurance W/H Payable Amounts withheld from employees wages (employees portion) or expensed
(account 510015, employee benefit portion to be paid by employer) for
dental insurance premiums.
2025 Cafeteria W/H Payable Amounts withheld from employees wages according to their individual
Cafeteria Flex Plan written authorizations.
2030 Retirement W/H Payable Amounts withheld from employees wages as contributions to their
retirement savings plan and any employer contributions (debit account
510030 for non priests or 510090 for priests).
2035 Unemployment Tax Liability Payable Amounts owed for unemployment taxes.
2040 Other Payroll W/H Payable
2045

Other Payroll W/H Payable
November 2009 I.16
Liabilities
2050 Other Payroll W/H Payable
Other Current Liabilities (2100) Obligations that should be paid within a year.
2100 Accounts Payable Trade Liability arising from the purchase of goods or services on credit in the
ordinary course of business with regular vendors.
2105 Accounts Payable Other
2110 Pre-Paid Tuition Tuition paid in advance which becomes revenue as service is rendered.
2115 Pre-Paid Registration Fees Registration fees paid in advance which becomes revenue once a class has
started.
2120 Short-Term Debt Monies owed which are to be repaid within a year.
2125 Use Tax Payable Use taxes that are owed.
Funds Held For Others (2400) Liabilities related to monies being held temporarily for
organizations/groups associated with a parish/school.
2400 Funds Held For Others
November 2009 I.17
Liabilities
November 2009 I.18
Liabilities
Long-Term Debt (2600) Debt which is structured to be paid over a period of time greater than
one year. Usually has a written agreement as to a repayment schedule,
stated interest rate, and a due date.
2600 Long-Term Debt
2605 Long-Term Debt
2610 Long-Term Debt
2615 Long-Term Debt
2620 Long-Term Debt

November 2009 I.19
Net Assets
Shortcut No. Account Name

Description
Fund Balance (3000) Diocesan security code necessary for entries to fund balance accounts.
3000 Unrestricted Fund Balance Fund balance not restricted by donors or law.
3005 Donor Restricted Fund Balance
3010 Parish Council Restricted Fund Balance
3015 Current Year Fund Balance Increase
3020 School Fund Balance Parishes with schools or schools that record in Fund 2 will utilize this
account. Since school expenses are typically greater than revenues, this
balance will usually be negative.
3025 Catechesis Fund Balance All revenues and expenses for Catechesis programs will close to this account.
Balance will typically be negative.
3030 Parish Foundation Fund Balance
3035 School Foundation Fund Balance
3040 Cemetery Fund Balance

November 2009 I.20
Statement of Dedicated Accounts Chart of Accounts
Dedicated
Diocesan Collections (2200) Special collections taken for international, national, or
local needs. Monies collected by the parishes through a
Second Collection are remitted to the Diocese
monthly. The Diocese in turn remits the money to the
appropriate organization.
2200 Annual Diocesan Appeal Monies collected for the Annual Diocesan Appeal which
are forwarded to the Diocese. Monies are used to
supplement the Diocesan operating budget in providing
ministries for the people of the Diocese.
2205 Catholic Relief Services Monies collected provide funding for Catholic Relief
Services. When there are Second Collection funds to be
remitted, a parish check should be sent to the Diocese by
the end of the month, along with a transmittal form.
2210 Catholic Charities Monies collected for Catholic Charities to help fund local
community needs. When there are Second Collection
funds to be remitted, a parish check should be sent to the
Diocese by the end of the month, along with a transmittal
form.
2215 Communications
Campaign
Monies collected for the Catholic Communication
Campaign (CCC) for the process of evangelization by
fostering activities through various media forms. 50% of
the funds collected go to the United States Conference of
Catholic Bishops while the balance of the funds is retained
by the Diocese for use in local communication projects.
When there are Second Collection funds to be remitted, a
parish check should be sent to the Diocese of all funds
collected, by the end of the month, along with a
transmittal form.
2220 Disaster Relief Monies collected for specific disasters on local, national,
and international levels. When there are Second Collection
funds to be remitted, a parish check should be sent to the
Diocese by the end of the month, along with a transmittal
form.
2225 Eastern Europe Collections Monies collected provide funding to meet the needs of
rebuilding the Church in Central and Eastern Europe.
Currently, this is not a required collection.
2230 Holy Land Collection This is a pontifical collection. Monies support the Holy
Places and the pastoral, charitable, educational, and social
works in the Holy Land. When there are Second
Collection funds to be remitted, a parish check should be
sent to the Diocese by the end of the month, along with a
transmittal form.

February 2010 I.21

Dedicated
2235 Catholic Home Missions Monies collected provide financial support to missionary
activities that strengthen the Catholic Church in the United
States. When there are Second Collection funds to be
remitted, a parish check should be sent to the Diocese by
the end of the month, along with a transmittal form.
2240 Human Development Catholic Campaign for Human Development addresses the
root causes of poverty in America through promotion and
support of community-controlled, self-help organizations
and transformative education.
2245 World Mission Sunday
(also known as World
Mission
Celebrated in all the local Churches as the feast of
catholicity and universal solidarity so Christians the world
over will recognize their common responsibility with
regard to the evangelization of the world.
2250 Overseas Relief This collection is now known as Catholic Relief Services.
See account 2205.
2255 Peters Pence Monies collected enable the Holy Father to respond with
emergency financial assistance to requests to aid the
neediest throughout the worldthose who suffer as a result
of war, oppression, and natural disasters. When there are
Second Collection funds to be remitted, a parish check
should be sent to the Diocese by the end of the month,
along with a transmittal form.
2260 Project Hope Monies collected provide Catholic school tuition
assistance for families in our Diocese. When there are
Second Collection funds to be remitted, a parish check
should be sent to the Diocese by the end of the month,
along with a transmittal form.
2265 Rice Bowl Monies collected provide funding for Catholic Relief
Services (CRS) food security projects which support
agriculture, nutrition, education, and self-sufficiency in
communities around the world. When there are Second
Collection funds to be remitted, a parish check should be
sent to the Diocese by the end of the month, along with a
transmittal form. The Diocese then remits 75% to CRS for
overseas projects and 25% is retained in the Diocese for
local anti-poverty programs.
2270 Religious Retirement Monies collected provide basic, supplemental, and special
assistance retirement grants to religious institutes. When
there are Second Collection funds to be remitted, a parish
check should be sent to the Diocese by the end of the
month, along with a transmittal form.


November 2009 I.22

Dedicated
2275 Other Diocesan Collection Monies collected for other Diocesan collections not
covered by other accounts. A parish check should be sent
to the Diocese for the total amount of funds collected.
2280 Seminarian Collection Monies collected for the needs of seminarians in our
Diocese. A parish check should be sent to the Diocese for
the total amount of funds collected.
Parish Collections (2300) Special collections to support a specific need
determined by the parish. The parish handles the
distribution of the funds.
2290 Parish Collection #1 Parish determines.
2295 Parish Collection #2

November 2009 I.23
Statement of Activities (Income Statement) Account Explanation

Each revenue and expense account consists of nine numbers.

101-400001

The first number recognizes the Fund.

The first three numbers recognize the Program.

The last six numbers are the specific account number.

Fund: Segregates income and expenses by different areas:

Fund 1: Parish
Fund 2: School this should only be used for stand alone schools or parishes with
schools.
Fund 3: Catechesis/Religious Education
Fund 4: Foundation Parish
Fund 5: Foundation School
Fund 6: Cemetery

Example:
Account 101-7200-10 would show expenses for textbooks/resources bought for the parish,
while account 201-7200-10 would show expenses for textbooks/resources bought for the
school.

Program: Allows for more segregation within a fund.

Some examples of different programs are:

101 Parish Administration
113 Parish Hall
117 Fundraising-Bazaar/Picnic
126 Rental Property

Please see Statement of Activities Program Numbers previously in this chapter.


November 2009 I.24
Example:

Account 101-7340-44 (trash removal) would show the expenses incurred for trash removal
for normal operations. If the Parish had a fundraiser and needed to have an extra trash
pickup because of the fundraiser, the expense could be shown in 117-7340-44. If all
income/expenses dealing with that specific fundraiser were recorded in program 117, a
Statement of Activities could be printed out just for that program.

Directions to print out a Statement of Activities for one program:

In ParishSOFT (CMS) Ledger and Payables:
Click on the drop down menu for reports.
Select Statements Statement of Activities.

Click on the Programs button.
Click on the Remove All button.
Double click the Program you wish to report on in the left hand list in this case
program 117.
Click OK.
Click the Print button.

Account Number: The last six numbers denote the specific account number. All of the accounts
listed in the Chart of Accounts can be used for any fund and any program.


November 2009 I.25
Inserting a New Account Number

If the account number and program you wish to use has not been inserted into your
parish/school chart of accounts follow these directions in ParishSOFT (CMS) Ledger and
Payables:

Click on the Entry drop down menu.
Select Account Entry.

Click on the Insert From Full COA button on the right hand side
Type in the Account Description
Select the account you wish to insert
Click Insert

NOTE: When in a journal entry or bill entry screen and an account needs to be inserted,
you do not need to exit out of your current screen. In the account number field hit the
Enter key on your keyboard when there is nothing entered. The Account Entry
window above will pop up.

November 2009 I.26

Statement of Activities Program Numbers
Program No. Program Name Description
101 Parish Administration Include those activities associated with the general operations of a parish.
102 Liturgy Liturgy is the official public worship of the Church. Include expenses such as
missalettes, candles, wine, and hosts.
103 Sacramental Programs There are seven sacraments: Baptism, Eucharist, Reconciliation, Confirmation,
Marriage, Holy Orders, and Anointing of the Sick. Include any revenues and
expenses associated with sacramental programs [See program 306 for
Confirmations].
104 Music Include musical activities, both instrumental and choral, that are not related to
funds 2 or 3.
105 Rectory The Rectory is the pastors housing. Include expenses for providing
maintenance and repair, utilities, telephone, materials and supplies used in the
operation of the residence.
106 Adult Faith Formation Include all programs which support growth in faith for adults.
107 RCIA RCIA (Rite of Christian Initiation of Adults) is the process adults go through to
become Roman Catholic.
108 Pastoral Council Pastoral Council advises the pastor in spiritual matters of the parish.
109 Finance Council The Finance Council advises the parish/school in financial matters. There
should be two Finance Councils when a parish also has a school.
110 Family Life Include programs which support and strengthen the family.
111 Social Concerns Include programs related to the Catholic Churchs respect life stance as well as
the poor and disadvantaged.
112 Art and Environment Programs related to art and the protection of the environment.
113 Parish Hall Include all revenues and expenses for the Parish Hall, e.g., electricity,
maintenance, etc.
114 Building and Grounds Include all income and expenses related to buildings not included in other
programs [Schools use program 212. See Building Expense accounts (7300)].
115 Volunteer program Include all revenues and expenses related to seeking, training, and coordinating
volunteers not included in other programs.
November 2009 I.27

116 Human Resources Activities related to the recruitment and selection of parish employees, their
training and development, and the evaluation of their performance. Also
includes costs associated with researching and maintaining personnel files.
117 Fundraising-Bazaar/Picnic Revenues and expenses related to bazaars/picnics.
118 Fundraising-Auction Revenues and expenses related to auctions.
119 Fundraising-Raffle Revenues and expenses related to raffles.
120 Scrip Program Parish Scrip represents gift cards that the parish purchases at a discount, usually 3-5%,
and sells at the regular retail price. A parish uses a scrip program to raise funds
(Schools: Use program 214). Scrip programs may be national, local, or a
combination of both.
121 Capital Campaign A formal solicitation of the parishioners for a special designated purpose such
as a new building, retirement of debt, or major renovation. Amounts being
solicited are significant and require the Dioceses approval.
122 Bulletin Include revenues, such as sold advertising (account 410002), and expenses,
such as printing, here.
123 Votive Stands Revenues and expenses associated with votive stands, including costs of
candles and supplies.
124 Parish Social Functions Any parish social function to which parish members are invited (not private
functions to which some parish members may be invited).
125 Farming Operation For those parishes with farms, includes all aspects of the farming operation.
126 Rental Property Revenues and expenses related to the rental of Parish property.
127 Parish Nurse All revenues and expenses for those parishes that employ a nurse.
128 Stewardship Expenses associated with the way time, talents, material possessions, or wealth
are used or given for the service of God.
129 Hispanic Ministry Activities to spread or express the faith to the Hispanic population.
130 Communications Expenses for spreading the Gospel, marketing the parishs ministries, and
media relations.
131 Parish Welcome Includes expenses for new parishioner activities.

November 2009 I.28

132 Parish Retreats Times set aside for spiritual renewal. Include fees charged and planning,
educational, and religious retreat expenses.
133 Christ Renews His Parish Special program with this name.
134 Auxiliary Organizations Parish organizations, e.g., Altar and Rosary that support the Church through
separate fundraising activities.
201 School Administration Include activities associated with the general operations of a school which
direct, control, or otherwise regulate activities not listed elsewhere, e.g.,
principals salary, legal services, expenses not associated with funds 1, 3-6.
202 Library/Media Center Expenses for library books, equipment and other materials related to the
maintenance of the library and the media center.
203 Lunch Room Include fees charged for the school lunch program and government subsidies as
well as expenses associated with the lunch program.
204 Counseling Revenues and expenses associated with the guidance counseling function,
including tests, evaluation forms, materials and supplies.
205 Transportation Revenues and expenses related to bus transportation.
206 Athletics Revenues and expenses related to the operation of various athletic programs,
e.g., fees, dues, equipment, etc.
207 Technology Revenues and expenses associated with technology, e.g., computers, audio
visual, etc.
208 Before/After School Care Revenues and expenses associated with Before/After School Care.
209 Preschool Revenues and expenses associated with a preschool program.
210 Board of Education Expenses related to the Board of Education.
211 School Committees Revenues and expenses related to school committees [See program 219 for
Auxiliary Organizations].
212 Building and Grounds All income and expenses related to buildings that are not included in other
programs [Parishes use program 114. See Building Expenses accounts (7300)].
213 Human Resources Activities related to the recruitment and selection of school employees, their
training and development, and the evaluation of their performance. Also
includes costs associated with researching and maintaining personnel files.
November 2009 I.29

214 Scrip Program School Scrip represents gift cards that the school purchases at a discount, usually 3-5%,
and sells at the regular retail price. A school uses a scrip program to raise funds
(Parishes: Use program 120). Scrip programs may be national, local, or a
combination of both.
215 Capital Campaign A formal solicitation of the parishioners, parents, and patrons for a special
designated purpose such as a new building, retirement of debt, or major
renovation. Amounts being solicited are significant and require the Dioceses
approval.
216 Band Revenues and expenses related to the band program.
217 School Retreats Include any fees charged, and planning, educational, and religious retreat
expenses.
218 Bingo Include revenues and expenses related to bingo.
219 Auxiliary Organizations Those school organizations, e.g., Home and School, which support the school
through separate fundraising activities.
301 Faith Formation Catechetical services for the faith formation needs of children, youth, and adults
in parishes.
302 Good Shepherd Program Revenues and expenses for the Good Shepherd Program.
303 Youth Ministry Revenues and expenses associated with catechetical services to youth.
304 Vacation Bible School Revenues and expenses associated with Vacation Bible School, a summer
program.
305 Youth Ministry Retreats Include any fees charged, and planning, educational, and religious retreat
expenses for youth retreats.
306 Confirmation/First Communion
Preparation
Revenues and expenses associated with Confirmations, including First
Communion preparation.
401 Foundation for Parish Revenues and expenses associated with a parishs foundation.
501 Foundation for School Revenues and expenses associated with a schools foundation.
502 Foundation for Dowling Students Revenues and expenses associated with Dowlings foundation.
601 Building and Grounds All income and expenses related to cemetery.
November 2009 I.30

Statement of Activities Chart of Accounts
Income
Primary Income Collections (4000)

Collection totals in accounts 400001 400006 should equal the amounts
posted to ParishSOFT Offerings Module.
400001 Collection Sunday Envelope Cash receipts from tithe envelope collections; includes loose checks from
parishioners.
400002 Collection Christmas All cash receipts from Christmas collections-envelopes, loose checks, currency,
and coin.
400003 Collection Easter All cash receipts from Easter collections-envelopes, loose checks, currency, and
coin.
400004 Collection Holy Days All cash receipts from a Holy Day collection-envelopes, loose checks, currency,
and coin.
400005 Collection Plate Cash receipts from Sunday collections in the form of currency and coin which
will not be posted to individual records.
400006 Collection Childrens Cash receipts from Sunday collections in special childrens envelopes.
400007 Collection Second Cash receipts from collections to fund special parish needs such as a January
heating bill. These receipts may be in envelopes designating the appeal or from
collection efforts specified for special parish needs.
400008 Diocesan Appeal Refund The refund from the Diocese as a result of the parish exceeding its Annual
Diocesan Appeal (ADA) goal.
Auxiliary Income (4100) Income apart from collections that is not considered exempt.
410001 Bazaars Income from special fundraisers such as bazaars and picnics. Use program 117.
Will be offset against related expenses in program 117.
410002 Bulletin Advertising Cash received from the sale of advertisements in the parish bulletin. Use
program 122 to record revenues and expenses.
410003 Fund Raising Income Cash receipts from fund raisers, other than bazaars, picnics, and social
functions, designed to raise money for parish expenses. Use programs 118
(Auction), or 119 (raffle). Note: capital campaign and building fund receipts
are recorded in 420004 and 420003.
February 2010 I.31

Income
410004 Interest Income Cash received representing interest/investment income received on unrestricted
funds.
410005 Offerings Offerings made for funerals, weddings, baptisms, etc. not disbursed to the
celebrant, organist, etc., and not restricted as to use (also called Stole fees).
410006 Parish Social Functions Parish events in which a fee or donations are accepted to cover the cost of the
event. Use program 124 for revenues and expenses.
410007 Rental Income Cash received from operation of parish-owned property. (Hall rental, farm
rental, bus rental, etc.)
410008 Undesignated Donations Special one-time gifts from a living donor apart from the tithing program that
are not restricted or are designated for an operational expense.
410009 Votive Stand Cash received for votive stand offerings. Use program 123 for revenues and
expenses (710040).
410010 Miscellaneous Income To be used only if no other revenue account fits the situation. This account
should be used sparingly.
410011 Literature Sales Cash received from literature sales.
410012 Fees Nursery Cash received for services rendered in the nursery.
410013 Capital Gain/Loss Realized gains/losses on sale of unrestricted assets/investments. Also the
unrealized gains/losses on the change in market value on unrestricted
investments.
ADA Exempt Income (4200) Exempt income is not included in calculations for the Annual Diocesan
Appeal (ADA).
420001 Auxiliary Organizations Cash received from, or received on behalf of, an auxiliary organization such as
Altar and Rosary, Knights of Columbus, or Holy Name Society.
420002 Bequests/Memorials Cash receipts from estates or legacies or as memorials. [Use 420007 for
bequests specified to be used for foundational purposes].
November 2009 I.32

Income
420003 Building Fund Income Cash receipts from collections solely to fund capital projects (building,
remodeling, and extraordinary repairs) of the parish. All building fund income
must be coded to restricted cash or investment accounts on the Balance Sheet,
and the diocesan Guidelines for Building and Renovating Parish Facilities
must be followed (See a copy of the Guide in the Accounting/Business
Functions section, following Accounting for Fixed Assets, in the
Parish/School Resource Manual).
420004 Capital Campaign Income Cash received on pledged amounts resulting from special designated purpose
Capital Campaign, such as a Debt Reduction Drive.
420005 Cemetery Income Donations for the cemetery.
420006 Designated Donations Cash received as a donation {from a living donor} which is restricted to a non-
operational expenditure. The designated purpose must be disclosed in the
description of the transaction. [Use 410008 for donations designated for
operational purposes].
420007 Foundation Income Cash receipts, bequests, and legacies specified for use in establishing, or adding
to, a foundation which will endow certain functions and operations of the Parish
(Scholarships, tuition grants, etc.). The parish must abide by the Diocesan
Guidelines for Endowment Funds, which call for a corporate resolution and a
separate investment account.
420008 Inter-Parish Ministry Income Income received by a parish from another parish. Also, parishes may be
grouped as a team to reimburse one parish for team expenses, e.g., one parish
pays the priests salary and the other parishes reimburse for their share.
420009 Mass Stipends Donations made for Masses to be said in the future. The priest has a choice of
accepting these donations or accepting a monthly allowance from the parish.
The actual amount of Mass Stipends or the allowance would be paid through
payroll and are subject to taxes. [Record the Mass Stipends paid to the priest in
501001].
November 2009 I.33

Income
420010 Property Value Appreciation Adjustment of property values. Do not use to adjust fixed assets based on
yearly insurance value increases.
420011 Sale of Property Amounts received from sale of property other than sale of securities and other
financial instruments.
420012 Investment Income Interest or dividend income received from investments of restricted assets.
420013 Capital Gain/Loss Realized gains/losses on sale of restricted assets/investments. Also the
unrealized gains/losses on the change in market value on restricted investments.
420014 Extraordinary Income or Rebate Unusual and non-recurring income.
Education Income (4300) Monies received related to school or religious education programs.
430001 Tuition Regular Monies received for school tuition or religious education programs. If a parish
school, monies received for tuition for students belonging to the parish.
430002 Tuition Outside Parish Monies/assessments received for school tuition or religious education programs
for students belonging to other parishes.
430003 Tuition Non Catholics Tuition for non-catholic students.
430004 Fees Athletic Student participation in the schools athletic programs.
430005 Fees Band Student participation in the schools band program.
430006 Fees Book Students use of textbooks.
430007 Fees Bus Students use of bus transportation to and from school.
430008 Fees Cafeteria Students payments for lunch costs.
430009 Fees Child Care Cash received for the child care function of the school/parish.
430010 Fees Foreign Language Students payments for a foreign language class.
430011 Fees Kindergarten Kindergarten tuition.
430012 Fees Other Cash received for other student costs that are not recorded in other accounts.
430013 Fees Preschool Preschool tuition or attendance at preschool functions.
430014 Fees RCIA Rite of Christian Initiation of Adults: process an adult man or woman goes
through to become Roman Catholic. Cash received for RCIA classes.
November 2009 I.34

Income
430015 Fees Registration School or religious education student registration.
430016 Fees Student Activity Cash received for students involvement in school activities.
430017 Fees Youth Ministry Cash received from income-producing activities of youth ministry.
430018 Subsidy Government Bus Government subsidy for bus costs.
430019 Subsidy Government Cafeteria Government subsidy for the school food program.
430020 Subsidy Other Cash received from outside sources to subsidize the general operation of the
school or the participation in school programs.
430021 Subsidy Textbooks Subsidy for the cost of textbooks.
430022 Sale of Supplies Cash received from the sale of school supplies.
430023 Vending Vending machine sales.
430024 Foundations/Grants Foundation, grant, or other philanthropic organization monies received to fund
some aspect of the school program.
430025 Tuition Assistance Monies received for tuition purposes such as a special collection or scholarship.
Cemetery Income (4400) Monies received specifically for a cemetery.
440001 Cemetery Income Cash received for or from the operation of the cemetery that is not recorded in a
different account.
440002 Cemetery Perpetual Care Income Cash received for the maintenance of the gravesites and the cemetery.
February 2010 I.35
Expenses
Clergy Salaries (10) Salaries/stipends paid to clergy.
501001 Priests Salaries and Mass Stipends. Priests may receive actual Mass Stipends or the
monthly allowance, whichever option the pastor chooses at the beginning of the
year. Mass Stipends are considered taxable income.
501002 Pastoral Associate Salaries for associate priests.
501003 Priests Extra Services Weekend assistance provided by a priest not assigned to the parish. Also
referred to as a Mass Fee. Stole fees remitted to retired priests and priests
outside the Diocese are recorded here, too.
Professional Staff Salaries (20) Salaries/Stipends paid to professional staff.
502001 Administrator/Principal/DRE Salaries for administrators, business managers, principals, and directors of
religious education.
502002 Bookkeeper/Accountant Salaries for bookkeepers and accounting staff.
502003 Liturgist Salaries to those involved with liturgy (Mass, Vespers, Adoration, etc.)
502004 Musicians Salaries/stipends paid to musicians participating in parish functions, including
liturgy.
502005 Teachers Salaries paid to lay teachers.
502006 Teachers Religious Salaries to members of religious orders who teach in the school.
502007 Teachers Substitute Salaries to personnel who replace regularly scheduled teachers temporarily.
502008 Teachers Paraprofessional Salaries to teacher aides or other paraprofessionals.
502009 Teachers Counselor Salaries to guidance counselors.
502010 Teachers Pre Kindergarten Salaries to pre-kindergarten teachers.
502011 Professional Salaries Other Salaries/stipends for school or religious education employees not included in
other accounts.
Support Staff Wages (30) Wages paid to support staff.
503001 Secretary Wages for members of the secretarial staff.
503002 Housekeeper Wages for individuals who clean the rectory.
503003 Child Care Providers Wages for individuals who provide child care services for the parish/school.
503004 Bus Drivers Wages for bus drivers transporting students to and from school.
November 2009 I.36

Expenses
503005 Cafeteria Workers Wages for individuals operating the cafeteria.
503006 Custodial Workers Wages for individuals performing maintenance and janitorial duties.
503007 Support Staff Other Wages for employees not included in other accounts.
Employee Benefits (5100) Benefits paid by parish/school for employees insurance, retirement,
allowances, and administrative expenses.
510010 Health Insurance Employer portion of health and vision insurance expenses.
510015 Dental Insurance Employer portion of dental insurance expenses.
510020 Life Insurance Employer costs of life insurance.
510025 Disability Insurance Employer costs of disability insurance.
510030 Retirement Benefit Employer contributions to the retirement plan.
510035 Personal Allowance Use for allowances that are not included in another account [Use 510070 for
priests housing allowances rent, utilities.]
510040 Auto Allowance As of 7/01/09, this account is no longer used.
510045 FICA Tax Employer portion of the FICA tax on employee salaries and wages. The amount
is the same as that withheld from the employees salary. Both the employer and
employee portions of FICA are remitted to the federal government. Priests and
deacons should not have FICA deducted from their salaries.
510050 Unemployment Taxes Generally, parishes are exempt from paying unemployment taxes. If
unemployment taxes are paid, record them here.
510060 Cafeteria Plan Administrative costs associated with the cafeteria plan, or flex plan, are
recorded here.
510070 Priests Housing Allowance Payments for priests rent and utilities.
510080 Priests Food Allowance As of 7/01/09, this account is no longer used.
510090 Priests Retirement Parish/school matching payment for priests retirement
Contracted Services (6000) Fees paid to outside vendors for services rendered.
600010 Accounting/Audit Services Fees paid for accounting services.
600020 Computer Consultant Fees paid for computer/technology services.

February 2010 I.37
Expenses
600030 Contracted Services Services provided for the general operation of the parish/school. Use 730040 or
734045 if related to a building.
600040 Financial Services Fees paid to investment advisors.
600050 Legal Services Fees paid for legal services.
600060 Other Consultant Fees Fees paid for consulting or planning.
Administrative Expenses (7000) Expenses related to the general administration of a parish or school.
700010 Advertising Include telephone directory listings.
700020 Equipment Rental/Maintenance Expenses related to admin equip such as copiers, printers, and computers.
700030 Organization Dues Membership dues to outside organizations
700040 Other Expenses Use only if no other expense account fits the situation, use sparingly.
700050 Postage Postage and shipping costs
700060 Printing Outside printing expenses.
700065 Copier Internal copy costs.
700070 Subscriptions/Publications Books, magazines, newspapers for employees; if related to training, use
720010.
700080 Office Supplies Office supply store orders and other administrative supplies.
700085 Computer Supplies Computer supplies such as paper ribbons, software (750030, if instructional
related), etc. Computer hardware not capitalized would be recorded in 735053
or 750025.
700090 Public Relations Public relation expenses for parish or school that are not advertising related.
Program Expenses (7100) Expenses related directly to church ministries or school programs.
710010 Financial Assistance Direct assistance to individuals and organizations
710020 Food Supplies All costs of food and related products including caterers
710030 Program Services Stipends and expenses for speakers, facilitators, ad hoc services, and ICN fees,
etc.
710040 Program Supplies Special items used for a program. Gifts purchased as a thank you for program
involvement would be recorded here.
710050 Room and Equipment Rental Rental costs for hosting workshops, meetings, etc.
April 2010 I.38
Expenses
710060 Catholic School Assessments Monies paid to schools within the Diocese for the education of parishioners'
children.
710070 Chaplaincy Expense Costs supporting the chaplaincy program in the Diocese. Amounts are
determined by the Diocese.
710080 Outside Pastoral Assistance Record monies paid to outside priests for services rendered in 501003. Record
other individuals who provide pastoral assistance here.
Employee Travel and Training (7200) Expenses by employees for business travel or training.
720010 Textbooks/Resources Publications purchased for use in classes, workshops, or for training purposes.
720020 Continuing Education Fees Employee tuition, registration fees, workshop fees, and training.
720030 Meals/Lodging Employee expenses for food and hotel while traveling.
720040 Mileage/Travel Employee travel costs including daily mileage, airfare, auto rental and taxis.
Record travel for priests providing weekend assistance here.
Building Expenses (7300) Expenses related to buildings and grounds care. Certain insurances
included as well.
730010 Property and Liability Insurance Premiums paid for property and casualty insurance coverage. Premiums are
paid to the Diocese.
730020 Workers Compensation Insurance Premiums paid for workers' compensation coverage. Premiums are paid to the
Diocese.
730030 Building Improvements Improvements to a building under $1,000. Amounts over $1,000 may be
capitalized under fixed assets rather than expensed here depending upon
Finance Council's dollar threshold established for the capitalization policy.
730040 Maintenance - Contracted Services Services received under a contractual agreement for the maintenance of a
building.
730050 Maintenance - Supplies Supplies and materials used in the maintenance of a building.
730060 Rent Building rent on an ongoing basis.
730070 Utilities Record all utilities here or break out under 7360 accounts.
730080 Telephone Include all telephone costs, including cell phone bills here.
730090 Internet service Record internet service costs are here.
734040 Contracted Repairs Services received under a contractual agreement for repair work.
November 2009 I.39

Expenses
734041 HVAC Maintenance Costs for maintenance of boilers, heating and air conditioning units.
734042 Grounds Care Costs associated with taking care of the property outside the building that is not
contractual. Include snow removal or lawn care expenses here.
734043 Pest Control Costs associated with pest control.
734044 Trash Removal Record trash removal costs here.
734045 Other Contracted Services Services received under a contractual agreement related to buildings that are not
covered under another account. [Use 730040 for maintenance contracts]
735050 Maintenance - Supplies Costs associated with maintenance items that are not janitorial (735052).
735051 Rectory Supplies Household costs for the Rectory including laundry, kitchen supplies, bathroom
supplies, bedding, newspaper, and everyday household items (not large items
such as furniture or appliances).
735052 Janitorial Supplies Amounts for janitorial or cleaning supplies such as cleaning agents, towels,
brooms, etc.
735053 Small Equipment Purchases Costs for equipment that are under the Finance Council's established
capitalization policy (maybe $1000) and are not included under 750025.
736070 Electricity Record electricity costs here.
736071 Gas Record gas costs here.
736072 Water Record water costs here.
736073 Other Utilities Record utilities not covered under other 7360 accounts, or 730070, here.
Vehicle Expenses (7400) Expenses related to parish or school-owned vehicles.
740010 Auto Expense - Fuel Fuel costs for parish/school vehicles that are not employee reimbursements for
mileage (720040).
740020 Auto Expense - Repairs and Maintenance Repair and maintenance costs associated with parish/school-owned vehicles.
Instructional Expenses (7500) Expenses incurred for educational purposes.
750005 Textbooks Costs for textbooks.
750010 Instructional Material Costs for educational instructional materials.

November 2009 I.40

Expenses
750015 Instructional Supplies Costs for instructional supplies and materials such as pencils, paper,
workbooks, etc.
750020 Library/Media Center Costs for library books, equipment, and other materials related to maintenance
of the library and media center.
750025 Technology-Hardware Costs related to technology hardware used for instructional purposes. See
Finance Council's capitalization policy for possible capitalization of costs rather
than expensing.
750030 Technology-Software Software used for instructional purposes.
750035 Technology-Services Technology service costs related to hardware/software used for instructional
purposes.
750040 Guidance Costs related to guidance counseling. Testing and evaluation may be broken out
separately using account 750045.
750045 Testing Costs related to any testing and related evaluation forms.
750050 Audio Visual Audiovisual costs for supplies, repairs, and equipment not capitalized. See
Finance Council's capitalization policy.
750055 Section 504 Costs related to a Section 504 program.
750060 Student Activities Costs for extra-curricular activities other than athletics.
750065 Enrichment Costs associated with educational enrichment programs such as Talented and
Gifted (TAG).
750070 Athletics Costs related to the operation of various athletic programs.
Depreciation (8000)

The gradual conversion of the cost of an asset into expense. It is the
allocation of the cost of the asset to the periods in which services from the
asset are received. Depreciation does not affect cash balances. Straight
line depreciation will generally be used.
800010 Depreciation - Building The offsetting credit applies to an Accumulated Depreciation-Buildings account
(accounts 1600-1640).
800020 Depreciation - Improvements The offsetting credit applies to an Accumulated Depreciation-Buildings account
(accounts 1600-1640) or Accumulated Depreciation-Furniture and Fixtures (for
fixture improvements) (account 1655).
November 2009 I.41

Expenses
800030 Depreciation - Furniture and Equipment The offsetting credit applies to an Accumulated Depreciation-Equipment
account (account 1650) or Accumulated Depreciation-Furniture and Fixtures
(account 1655).
800040 Depreciation - Vehicles The offsetting credit applies to an Accumulated Depreciation-Vehicles account
(account 1660).
Other Charges (9000) Specific miscellaneous expenses.
900010 Annual Diocesan Appeal (payments for
prior years)
Amounts for prior year ADA assessments that were not covered by parishioner
contributions. If parishes historically need to add to parishioner contributions
for ADA, budget such amounts here.
900020 Bad Debt Expense A charge-off for receivables on the balance sheet that are considered to be
uncollectible. Apply the corresponding credit to the receivable.
900030 Bank Charges Bank, or other financial institution, fees.
900040 Interest Expense Interest expense incurred on monies borrowed from financial institutions, or the
Diocese. Reflect monies borrowed on the Statement of Position under Current
Liabilities (accounts 2100) or Long-Term Debt (accounts 2600).
900050 Other Parish Support Monies paid to other parishes or schools as a donation. Record Catholic
Assessments in 710060.

November 2009 II

II. Internal Controls Page

A. Internal Controls Introduction II.1
B. Separation of Duties II.2
C. Bank Accounts II.3
D. Scrip II.5
E. Other Parish and School Organizations II.8
F. Internet Banking / ACH Transfers / Wire Transfers II.9
G. Cash Disbursements II.10
H. Other Cash Receipts II.11
I. Cash Count Procedures II.12
J. Deposits II.18
K. Office Organization II.20
L. Financial Records Retention II.22

Purpose Statement: Canon Law requires administrators to carry out their responsibilities with
the prudence of a good householder. Good stewardship requires that we protect the goods
entrusted to us by the faithful. Effective internal controls will help safeguard and nurture that
which has been given to the Diocese, parishes, and schools.

This section provides descriptions of basic internal control procedures for all financial functions
in a parish or school.
Diocese of Des Moines Chapter II: Internal Controls

November 2009 II.1

Internal Controls Introduction

These guidelines are designed to aid pastors, parish/school staff, and Finance Council members
in the establishment and productive functioning of the parish/school business office and in the
administration of parish/school temporal matters. Also contained in these guidelines is the basic
framework for several internal control systems.

Standard Internal Controls Related to Parish/School Finance

Administration of parish/school finances is a sacred trust. It is very important for the pastor to
establish a strong system of internal controls because he has the responsibility for overall
stewardship of the parish/school. The following procedures are designed to meet the
requirements of good internal controls and not unnecessarily burden the parish/school.

In todays environment, it is essential to ensure the protection of assets and protect the reputation
of all those involved in financial administration. By implementing and monitoring a well-
designed internal controls system, you protect the reputation of your staff and empower them to
perform their duties as professionals.

These procedures detail the normal controls that should be in place for a medium-to-large size
parish/school. Controls for smaller parishes/schools may have to be tailored just for that
parish/school, and should be documented.

Note that a business manager, parish/school administrator, deacon, or finance board member can
be appointed by the pastor as his designee.


April 2010 II.2

Separation of Duties

The following job duties should ideally be done by separate individuals:

Bookkeeping
Signing checks
Reconciling the bank accounts and reviewing the cancelled checks
Recording and depositing receipts, offertory collections, and other receipts

Other than reviewing the cancelled checks directly upon receipt from the bank, these are the
most important internal controls to have in place. If it is not feasible to separate these job
functions at your parish/school, please contact the Diocesan Finance Office or your parish/school
Finance Council to discuss alternative internal controls to have in place.

Achieving Separation of Duties with Limited Personnel

When parish/school finance personnel are limited and the duties listed above are not separated,
seek assistance from the Finance Council. Have one member of the Finance Council commit to
the following monthly duties for a quarter, or have multiple members commit to one of the
following (duties could be rotated periodically):

Examine the Check Register for the following:
o Review the order of check numbers. Ask to see copies of any voided checks.
o Review payee names, amounts, and general ledger account numbers for
reasonableness
o Sign and date check register.
Scan the detailed general ledger for reasonableness:
o Note anything which generates a question, or appears unusual.
o Sign and date the detailed general ledger.
Review and recalculate bank/investment reconciliations. Compare amounts on
reconciliations with supporting documentation:
o For checking accounts:
Compare balance on actual bank statement with Bank Statement Balance
on reconciliation.
Compare account balance on ParishSOFT/CMS printout with Bank
Reconciliation Balance on reconciliation.
o For investment accounts:
Compare balance on investment statement with account balance on
ParishSOFT/CMS printout.
o Review supporting documentation for any reconciling items.
o Sign and date reconciliation.
Send annual statements. Ensure all parishioners and non-parishioners are included.
Provide Finance Council member contact information on the statements for any
subsequent questions or concerns that may arise.


November 2009 II.3

Bank Accounts

Bank Statements

The pastor or his designee should receive all bank statements and cancelled checks. The pastor
should do the following:

1. Open all bank statements and review to ensure payees are valid and signatures are
authentic.
2. Review endorsements and determine if they appear genuine.
3. Ensure all transactions have been authorized.
4. Determine if the balance appears reasonable. He should then sign and date the bank
statement(s) to indicate his review.

Authorized Signers

The pastor must be included as an authorized signer on all accounts as administrator of the
parish/school and its affiliated organizations. This ensures the pastor is aware of all accounts in
the name of the parish/school. It also protects the misuse of the parishs/schools federal
employer identification number (EIN).

Individuals with access to record entries in the accounting records and who receive and process
cash receipts should not be authorized signers. This separates the duties of those with control
over cash to insulate the individual from any implication or temptation of wrongdoing.

Ideally, the pastor should be the individual signing all checks. When checks are presented for
signature, the supporting documentation (invoice and possibly a purchase order) should
accompany the check. In this way he is aware of all parish/school expenditures.

When there is a change in signers (ex. if a trustee is a signer and rotates off) notify the bank as
soon as possible via a change in signature cards and the bank resolution.

Signature Stamps

A signature stamp should never be used. The Diocesan Finance Department strongly
recommends signature stamps be destroyed. This way, all cash outflow is properly reviewed and
authorized. Should a signature stamp be used for correspondence, it should be kept locked and
used only with authorization from the pastor.

Dual Signature Requirements

Establish dual signature requirements and note on the face of the check (i.e. any check over
$2,000 is required to have two signatures. These checks should have two signature lines printed
on the checks.) The signature card (or resolution, depending on the bank) should also show the
restriction requirement.


November 2009 II.4

Bank Reconciliations

Perform bank reconciliations on a timely basis, preferably within 10 days of receipt of the bank
statement. This helps to ensure any errors can by found and corrected promptly by either the
bank or the parish/school.

Reconciliations of checking accounts should be performed by an individual who does not sign
the checks or keep the books (if possible, someone who does not process receipts either). A
member of the finance board, the pastor, or the business manager (in larger parishes/schools)
should review the reconciliations on a monthly basis, date them, and sign off.

Number of Bank Accounts

Keep the number of accounts to a minimum. This generally helps to streamline the accounting
process by decreasing the number of accounts to reconcile and control. One or two checking
accounts would include monies for all necessary funds such as operational, payroll, building,
stipends, lunch programs, and auxiliary groups (other parish and school organizations) such as,
Altar and Rosary, Home and School, and Cemetery. Separate the funds using the general ledger
rather than having a separate bank account for each.

Accounts

Include any and all checking, savings, and investment accounts on the parish/school general
ledger. This guarantees the financial statements are accurate and allows the finance board and
the parishioners to have a complete picture of the finances of the parish/school. The
responsibility of the pastor and the Bishop to oversee the finances of the parish/school requires
full disclosure of all accounts.

Name of Bank and Investment Accounts

Priests, deacons, parish/school officers, and corporate officers may not hold assets in their own
name or purchase in their own name any property that rightly belongs to the church. Bank
deposits must be made in the name of the institution from which these funds originated.


November 2009 II.5

Scrip

Scrip is another name for gift cards. Many schools in our diocese use scrip as a fund raiser. The
schools may purchase the gift cards from a scrip clearinghouse, such as National Scrip Center, at
a discount and sell the cards to parents and parishioners at the regular retail price.

The following pages were taken from the Catholic Mutual Group website and discuss
recommended internal controls for handling scrip.


November 2009 II.6


November 2009 II.7


November 2009 II.8

Other Parish and School Organizations (Auxiliary Organizations)

In order for an association to be considered a fully integrated component of the parish or school, it
must be recognized as such by the parish council as a matter of its written record, and it must be
subject to the ultimate fiscal control of the pastor or school administrator. An itemized record of
receipts and expenditures must be filed in the parish or school office monthly or made available upon
request of the pastor.

For satellite parish/school organizations, it is recommended that either the records be maintained as
part of the parishs/schools general ledger or the organization send in to the parish/school, at a
minimum, quarterly financial statements. This keeps the parish/school management apprised of the
financial activity of the organizations. Send monthly bank statements and any investment statements
for organization accounts directly to the church office for review before they are handled by the
treasurer of the organization.

The parish/school office should review and complete (by signing off and dating) the bank
reconciliation and review the cancelled checks on a quarterly basis.

However, organizations are strongly discouraged from having separate bank accounts. Such
accounts may exist only with the approval by the pastor or school administrator.

The pastor or school administrator must be included as an authorized signer on all its affiliated
organizations that use the parish/schools tax id number. This ensures he is aware of all accounts in
the name of the parish or school and prevents an organization from keeping parish/school-related
assets (primarily cash) out of the control of the pastor or administrator.


November 2009 II.9

Internet Banking/ ACH transfers/ Wire transfers

Internet banking has potential for a great degree of exposure. Pastors and administrators in larger
parishes and schools should always closely monitor internet banking because any individual who has
access to online transactions literally has an open checkbook. It is strongly recommended that the
pastor should be the only individual that releases the funds wire transfers, ACH payroll deposits,
403(B) deposits etc. The pastor or his designate should be the system administrator of the bank
password and software. He should generate the bank report that lists a detail of all transactions, sign
it, and date it. He should then forward the bank report to the bookkeeper for recording in the general
ledger. In the event an outside payroll service is used, or there are ACH payroll transfers made, at a
minimum, the pastor or his designee should sign off and review every report processed by the
bookkeeper.

If the banks software makes it possible for the system administrator to set up two people to release
funds each with their own confidential password the Diocesan Finance Department recommends
that two individuals jointly process a transaction. Not all bank software is programmed with this
capability; therefore, it is important that the pastor release funds or carefully review all bank, payroll
and 403(B) transactions on a timely basis.


February 2010 II.10

Cash Disbursements

All disbursements should be made via check and should be recorded in the general ledger. This
includes bonuses, Christmas or other gifts, and payroll, but excludes any case in which petty cash
is used. Cash should not be used to pay vendors, contractors or employees. A regular schedule,
such as every Thursday, helps to control the work associated with paying bills and issuing checks
in the business office. The Diocesan Finance Department strongly discourages the use of hand-
written checks.

Check Forms
Store blank check stock in a locked location, preferably in the safe or fireproof filing cabinet, and
limit access to those who are authorized to prepare checks. This reduces the risk of stolen and
forged checks.

Signing Blank Checks
Never sign blank or partially blank checks. The practice of signing blank checks severely
decreases the effectiveness of other cash controls established related to accuracy and propriety of
transactions. Only sign checks when the payee and dollar amount are filled in and the supporting
documentation (original invoice and check request) accompany the check for review by the
signer. Having this information readily available makes the process more efficient if there is a
question related to an expense, especially if the pastor signs checks after regular business hours.
It also provides for an additional verification of the accuracy of the payment being made.

Wire Transfers
If wire transfers are made, they should be infrequent, and a policy should be in place stating who
is authorized to make such transfers and in what amount; preferably, the authorized individual
would be limited to the pastor.

Computer Checks
Computer checks are utilized for several reasons. Mistakes between what is recorded and what
is written on checks are eliminated, saving time later looking for errors. Access to the computer
program which generates checks can be intentionally limited to certain individuals. Without
access, a computer check cannot be generated. It is also more difficult for third parties to alter
computer generated checks. Lastly, computer checks are easier to read and look more
professional.

Manual Checks
If checks are prepared manually rather than generated by computer, a process should be in place
to ensure that the disbursement is recorded accurately and timely in the accounting records,
rather than waiting until the bank statement is received to record the transaction from the
cancelled check. For example, if an authorized signer takes a check to a retail store, that
individual would promptly submit the receipt to the accounting department so the transaction can
be recorded, including payee, amount, date, and related expense account.


November 2009 II.11

Other Cash Receipts

Processing of cash receipts, opening mail, preparing the deposit, and making the deposit, should
be done by an individual who does not enter the information in the accounting records. If
possible, two individuals together would be preferred.

Make certain that donations are recorded in the proper year. Use the postmark date on the
mailing envelope to record the date received at year-end. Record checks received in envelopes
postmarked January 1
st
or later in the following year. Record checks received through the
offertory collection baskets on the date received as opposed to the date of the check or deposit.

Restrictively endorse all checks for deposit only with the parish/school name and account
number as soon as they are received. This ensures that any lost or stolen checks cannot be
cashed or deposited to any other account.

Provide pre-numbered, two-part receipts (carbon and original) for all cash received through the
parish/school office.

If cash/checks are received and not deposited to the bank the day they are received, keep the
checks in a locked, fireproof location.

If receipts are processed in batches, the batch total should match the deposit total and the cash
portion of the deposit should match the total of the receipts in the receipt book. This is another
way to verify the accuracy of the information entered in the general ledger.

Record all receipts/payments in the general ledger. This is the only way to make sure the records
are complete and accurate. It also helps the Finance Council as they plan and budget.

Keep a list of receipts by name or category either from the accounting software or detailed on the
bank deposit slip, especially if copies are not made of the checks as they are received.

Deposit on a daily basis, or as often as feasible. No cash or checks should be retained in the
office for longer than five days, so as to safeguard the asset from theft or loss.


April 2010 II.12

Cash Count Procedures

The management and control of the Mass collections is one of the most important functions
in a parish. Therefore, the following procedure is outlined and parishes should implement
the process in the manner that fits the local need, with attention to the control points within
the process. If large deviations are made from this process, the Diocesan Finance
Department staff should review the process and will offer advice and acceptance.

STEP #1: Guarantee all donations collected by the ushers are delivered intact (as collected) to
the count team by supplying pre-numbered tamper-resistant bags. The donations are
consolidated into one sealed bag and secured, without any strays, prior to the collection count.

1. Before Mass, inform the ushers of the number of collections. Assign tamper-resistant
bags for these collections (regular collection and special collection) plus a spare bag in
the event of a defective bag seal or an error made in closing the bag. If a bag is spoiled,
retain it and submit it with the collections. Each bag should be labeled and assigned to
a mass for that weekend beforehand. If there is a second collection that weekend an
extra bag should be assigned for each mass and labeled second collection.

2. During the offertory, the ushers move pew to pew with the basket collecting from the
worshippers.

3. The collection is maintained in its original form. No change is ever given from the
collected funds or checks cashed from the collected funds.

4. The ushers consolidate the individual collection baskets to a pre-numbered, sealed
tamper-resistant bag assigned to that Mass and lining the main collection basket. This
is always done in the presence of a witnessing usher.

5. If there is a second collection, consolidate and seal the tamper- resistant bag for the
first collection before the second collection is started. The ushers move pew to pew
with the basket collecting from the worshippers for the (if any) second collection. Be
sure the second collection tamper proof bag is labeled second collection.

6. The bag(s) for the regular collection and, if applicable, the second collection are
transported to a secure area for safekeeping prior to delivery to the count team.

7. It may happen that someone missed the basket and wishes to add an envelope to the
collection. Any loose envelope is placed in the pocket in the front of the sealed bag, or
added to a smaller sealed bag and transported to a secure area for safekeeping prior to
delivery to the count team. If this is a regular occurrence, review the usher procedures.

8. Document the procedures for the ushers to follow, especially how to properly seal the
bags. Post and communicate these procedures with the ushers. Let the ushers know
how much you appreciate their cooperation in successfully implementing these
procedures.

April 2010 II.13

STEP #2: Promote the integrity of the parish, its employees and volunteers, and instill
confidence within the parish community through a well-controlled collection process. Ensure
the proper use of safekeeping devices, such as safes, to safeguard funds.

1. A limited number of people should maintain lock combinations and/or custody of keys
to parish safe(s). Never store combinations and keys in an unlocked desk drawer, on a
wall, the back of a door, or in an unsupervised area where anyone can gain access to
them. The safe should be maintained in working condition at all times.

2. Limit the amount of funds secured in a safe, to a minimum, with the excess deposited
in a bank or night depository. Make the deposit immediately following the count. If
there is a day or so wait for armored pickup, secure the stored collections. If possible,
avoid storing cash receipts overnight. Whenever possible, deposit daily.

STEP #3: Make available a secure area for counting and provide supplies to aid the count
process.

1. The count area should be free of distractions. There should be no through traffic to
access a supply closet or bathroom by individuals other than counters. Limit the
number of people, other than the counters, in the room. Only the counters, priest
overseeing count, and /or someone from parish staff should be in the room. The parish
staff should not be counting the collections.

2. Set up the count room with the counting supplies, collection worksheets, and bank
deposit tickets. Also, supply a new tamper-resistant bag to secure the funds to be
deposited after the count is complete.

STEP #4: Deliver the tamper-resistant bags unopened to the count team, preserving the chain
of custody from the ushers. No one should handle money to sort or organize it prior to the
arrival of the count team.

1. Once the counters (three or more unrelated people) are assembled, the pastor or his
designee will deliver the tamper-resistant bags containing the Mass collections. Other
sources of revenue received by mail or in person at the parish office are also delivered
to the counters.

2. The counters will examine the bags to note if the condition is secure with no breaches
of the seal or other irregular conditions of the bag. Record the condition of the bag and
the bag number on the Bag Tracking Form. If the integrity of the bag is compromised
(torn, ripped, not sealed properly), document the irregularity on the Bag Tracking
Form. Notify the pastor should immediately of any irregularity.

3. The counters will verify the bags delivered to them are the bags listed on the Bag
Tracking Form by matching the bag number listed to the number on the bag.


November 2009 II.14

STEP #5: Count, classify, and record collections by alternating count teams or rotate duties
among several count team members. The complete collection is deposited. None of the
collection is kept at the parish as convenience cash.

1. Open the bags using a pair of scissors. Separate envelopes, checks, cash, and coin to
ease counting

2. Open the donation envelopes and verify the content amount is to the amount indicated
on the front of the envelope. Notate this review by check marking the amount on the
envelope. Photocopy loose checks (for example, those not contained in an envelope)
and retain along with the donation envelopes. If a photocopier is not readily available,
then list the names and dollar amounts recorded on the checks.

3. Add up the donation envelopes and photocopies of loose checks, set aside, and save for
posting to the parishioners accounts in the ParishSOFT system.

4. Stamp checks for deposit only, restricting endorsement to the parish account.

5. Separate the currency by denomination, count, and band. Record the amount and the
counters initials on the band. The banded currency is then given to a second counter
who opens the band, recounts and records their initials. The band will now have the
amount counted and two sets of initials.

6. Two adding machine tapes are run to verify the total of the checks. Two adding
machine tapes are run to total the currency and coin. There are now three separate
tapes duplicated for checks, currency, and coin. Verify these amounts with the adding
machine tape on the envelopes and the copies of the loose checks.

7. The counters complete the count sheet by documenting the currency, coin, and checks.
The adding machine tape should be identified by indicating cash or check; initialed and
dated. One copy of the tape is attached to the collection worksheets. Each counter signs
or initials the collection worksheet to provide accountability for the amounts.

8. The counters will record the currency and checks on a duplicate bank deposit ticket.
Complete all information on the deposit ticket. Send the original, along with the adding
machine tapes to the bank and retain a copy at the parish.

9. Retain the count sheet, along with the deposit ticket, and bag tracking form. Bank
deposit receipts may arrive in the mail within a few days of the transactions.
Immediately match the deposit receipt to the count sheet to verify and attach both. If a
receipt is not received, review the bank statement or contact the bank. Such documents
should be readily available for review. Records should provide clear documentation of
cash receipts from the time of collection to the time of deposit.


February 2010 II.15

10. Place the collection in a tamper-resistant bag ready for transport, along with the deposit
ticket and second copy of the adding machine tape listing check amounts. Transport
the collection for deposit processing at the bank.

11. If the collection is transported to the bank via armor courier service, then the deposit
ticket is placed in the bag with the collections. The bag is then sealed and placed in the
safe awaiting pickup. If the collection is to be delivered to the bank by someone from
the parish, then the bag is sealed and the deposit ticket is retained outside the bag and
delivered to the bank.

Order Tamper Proof Bags from Kemco by calling (203) 762-1902, faxing (203) 762-2548, or
emailing ken@securpak.com.


April 2010 II.16

WEEKLY COLLECTION WORKSHEET DATE:

Mass Time>>> Total
Mass Date>>>

LOOSE:
Cash
Checks
Coins
Sub-total

ENVELOPES:
Cash
Checks
Coins
Sub-total

Total Collection

OTHER:
Undesig. Donations
Religious Ed
Tuition
Memorials
Offerings
Desig. Donations

Total Other:

Total Deposit:

Notes:

Counters:

November 2009 II.17

Bag Tracking Form
Bag # Given Received by Mass Date Mass Time Bag # Used Counted by Bag Condition
/ / : am/pm
/ / : am/pm
/ / : am/pm
/ / : am/pm
/ / : am/pm
/ / : am/pm
/ / : am/pm
/ / : am/pm
/ / : am/pm
/ / : am/pm
/ / : am/pm
/ / : am/pm
/ / : am/pm
/ / : am/pm
/ / : am/pm
/ / : am/pm
/ / : am/pm
/ / : am/pm

November 2009 II.18
Deposits

Confirm the amount of deposit credited to the parish/school account and add the transaction to the
general ledger, if not done through the Offerings module interface with the general ledger.

1. The deposit advice received from the bank is compared to the balance of the count
sheet. The deposit advice is maintained along with the count sheets.

2. The deposit is coded by the type of revenue and entered into the accounting system.

Provide management oversight by the pastor/parish and school staff of the performance of the
collection and processing of funds.

1. Review overages and shortages between count worksheets and bank deposit receipts to
determine if additional count team members should be recruited or if count duties
should be changed. Immediately notify the Pastor.

2. Compare the actual collection to the budgeted collection for the week, the previous
week results, and periodically the previous year results.

3. Document evidence of weekly periodic supervisory reviews of collection worksheets,
journal entries, and deposit slips.

4. Publish the actual collection in the church bulletin each week, by regular and special
collections.

5. The Finance Council should periodically review the collection process steps for lapses
in procedures and to refresh the process.

To the extent staffing levels permit, separate the duties of collecting, recording, depositing, and
reconciling cash receipts among different individuals. If a parish/school does not have sufficient
staff to separate responsibilities for cash handling, record keeping and reconciliation in the most
desired manner, closer day-to-day supervision by the pastor or someone authorized by the pastor
is necessary.

1. Someone independent from the cash receipt function summarizes the cash receipt and
this cash summary is compared to the validated bank deposit; to ensure that all
collections were deposited intact.

2. All cash receipt accounting entries are supported with validated bank deposits tickets
and other documentation to ensure an independent verification of cash deposits.

3. Different individuals are responsible for handling each aspect of the cash receipt
procedures. For example, the person who receives cash does not prepare the deposit;
the person who prepares the deposit does not handle the reconciliation.


November 2009 II.19
4. If a donor makes an individual contribution of more than $250, send the donor timely
tax acknowledgement in writing stating the amount and date of the contribution.

5. Only the counters, priest, and business manager should be in the count room.

6. Restrictedly endorse checks received.

7. Records should provide clear documentation of cash receipts from the time of
collection to the time of deposit.

Parishioner contributions from donor envelopes and checks are tracked, reviewed, and reported
back to parishioners.

1. Develop written procedures to instruct the person completing the data entry. Do not
back date envelopes to the Sunday date printed on the envelope; use the date of the
collection. For instance, enter school families submitting multiple envelopes for
previous Sundays on one Sunday with the Sunday date the multiple envelopes were
received, not the day the data was entered, or the Sunday dates printed on the
envelopes.

2. Each week, print the Contribution Summary Report and compare to the envelope total
for both number and dollar amount recorded on the Sunday collection worksheets.
Depending upon the percentage of envelope usage, you can verify if the deposit is
reasonable. The amount contributed on the Contribution Summary Report should be
lower by the amount of cash on the Sunday collection worksheet.

3. Someone who is independent of the counting, depositing, and recording of collections
prepares the year-end parishioner statements.

4. Send donors an annual statement identifying the donation amounts received from the
person.

5. If there is a discrepancy, review contribution records immediately to resolve the
discrepancy.

The importance of adhering to these procedures cannot be overemphasized. If adequate
internal controls are not in place, the personnel handling cash are not afforded the protection
to which they are entitled should allegations of impropriety ever be made.


November 2009 II.20
Office Organization

Physical Security

A secured location is necessary for safeguarding negotiable assets and vital information. Ensure
the following items are secured:
Mass collections
Cash, petty cash
Certificates of deposit
Other negotiable instruments
Scrip
Blank check stock
Tamper-proof bags
Data backups (CDs, DVDs, Tapes, Flash Drives, and External Hard Drives): Secure in
a place other than where the data resides.
Employee Information

Limit access to these areas to the individual(s) who are allowed custody.

Secure certain files with sensitive information, including payroll, bank, investment, taxes, and
legal documents.

Files

Various files will need to be established and maintained. The main categories are listed below.

Bank Files: Include all bank (financial institution) statements and related
reconciliations and file by bank and then account number.

Investment Files: Include all investment statements and related reconciliations and file
by company.

Fixed Asset Files: Detail records for all fixed assets should include the following:
o Date of purchase
o Description of asset
o Amount
o Expected life
o Depreciation schedule, if applicable
o Copies of related invoices

Employee Payroll Files:
o Completed application
o W-4
o I-9

November 2009 II.21
Employee Payroll Files: (Continued)
o Emergency contact form
o Pay rate authorization
o Background checks
o Completed insurance forms, if applicable
o Retirement savings form, if applicable
o Signed flex plan form, if applicable
o Employee evaluations
o VIRTUS Training
o Exit interview

Tax Files: Federal and State
o Federal
- Tax form 941: This form reports FICA and Medicare (both employer
and employee portions), and Federal taxes withheld from employee pay
checks.
- Tax Form 1099-Misc: Give this form to vendors who provided services
greater than or equal to $600. See Accounting Functions section (1099s)
in this manual for more information.
o State
- Deposit state taxes withheld from employee paychecks quarterly online.
See Accounting Functions section (Payroll - Payroll Taxes) in this
manual for more information.

Paid Vendor Files: Create separate alphabetical files for vendors used frequently. A
Miscellaneous file can be created for any alphabet letter for vendors who are not
used very often. Attach a check stub to the front of the paid invoice and file in date
order in appropriate vendor file.

Unpaid Vendor Invoice Files: File by day of month when vendor invoice should be
paid. A list of bills to be paid may be set-up in ParishSOFTs Ledger and Payables
Module with corresponding due dates.

Financial Report Files:
o Annual Financial Reports
o Backup copies of ParishSOFT financial statements, reports, and records

Legal Files:
o Attorneys
o Contracts

Council Minutes:
o Finance Council
o School Finance Council, if applicable

Sacramental Records

November 2009 II.22
Financial Records Retention Schedule
Source: Diocesan Financial Issues, November, 2002, United States Conference of Catholic
Bishops. Reprinted with permission.
The Records Retention Schedule represents the periods of time that records must be kept
according to legal and/or organizational requirements.

Records older than the retention period should be destroyed. Those of permanent value should be
stored appropriately.
Records Type Retention Period

Financial

Banking
Bank deposits 7 years
Bank statements 7 years
Cancelled checks 7 years
Check registers/stubs 7 years

General
Audit reports Permanent
Statements of Financial Position, Statements of Activities, annual Permanent
Statements of Financial Position, Statements of Activities, monthly/
quarterly
Destroy after 1 year
Budgets, approved, revised 7 years
Financial reports, annual Permanent
Financial reports, monthly Destroy after 1 year
Financial statements Permanent

Investment/Insurance
Bonds, cancelled 7 years from date of
cancellation
Certificates of deposit, cancelled 3 years after redemption
Insurance policies/active Permanent
Insurance policies/cancelled Permanent
Letters of credit 7 years
Mortgage records Permanent
Securities sales 7 years
Stock investment 7 years after sale


November 2009 II.23
Accounting

Accounts payable invoices 7 years
Accounts payable ledgers 7 years
Accounts receivable ledgers 7 years
Credit card statements/charge slips 7 years
Invoices and paid bills, major building construction Permanent
Invoices and paid bills, general accts 7 years
Cash books 7 years
Cash journals 7 years
Cash journal, receipts on offerings and pledges 7 years
Receipts 7 years
Mortgage payments 7 years
Chart of Accounts Permanent

Other Records

General ledger/annual Permanent
Journals, general and specific funds Permanent
Journal entry sheets 7 years
Ledgers, subsidiary 7 years
Payroll journals 7 years
Payroll registers, summary schedule of earnings, deductions and accrued
leave
7 years
Pension records Permanent
Pledge registers/ledgers 7 years
Permanently restricted gift documents Permanent
Temporarily restricted gift documents 7 years after meeting
restrictions

Tax Records
Employment taxes, contributions, and payments, including taxes
withheld, FICA
7 years from date of
filing
W-2 forms 7 years from date of
filing
W-4 forms 7 years from date of
filing
IRS exemption determination letters, for organizations other than those
listed in The Official Catholic Directory
Permanent
Form 990 Permanent
State tax exemption certificates (income, excise, property, sales/use, etc.) Permanent
Diocese of Des Moines Chapter III: Payroll

June 2010 III
III. Payroll Page

A. Independent Contractor vs. Employee III.1
B. Priest Compensation III.2
C. Payroll Liabilities III.7
1. Employee Insurance III.8
2. Flex Plan/Dependent Care III.11
3. Employee Retirement Plan III.12
4. Payroll Taxes III.13
5. W-2/W-3 Instructions III.14.a
D. Employee Checklists III.15
E. ParishSOFT (CMS) Payroll Module Users III.17
1. Payroll Module Overview III.17
2. Important Points to Remember in ParishSOFT (CMS)
Payroll III.20
3. Employee Benefit/Deductions III.21
F. Parishes/Schools Outsourcing Payroll III.24

Purpose Statement: This section provides information and clarifies the many aspects of the
payroll function, including worker status, priest compensation, employee benefits and
deductions, recording in ParishSOFT (CMS) Payroll, and key concepts to know. Parish and
school finance personnel who stay on top of personnel compensation and benefits issues
demonstrate stewardship for their employees and mitigate risk to the parish/school and Diocese.

November 2009 III.1
Independent Contractor vs. Employee

Recent audits by the Internal Revenue Service reveal over 90% of the time individuals who are
listed by various organizations as independent contractors are, in fact, employees. Failure to
properly classify an employee, and to deduct appropriate withholdings, can result in significant
assessments for back taxes and penalties.

Below is a checklist to help determine whether a worker is an employee or independent
contractor. No one factor makes the worker an employee or an independent contractor, and
not all of the factors are of equal weight.

Factors indicating the existence of an employment relationship:

The parish/school has the right to require compliance with specific instructions.
The workers job is an integral part of the parishs/schools business.
The parish/school has the right to require the worker to personally render services.
There is a continuing relationship between worker and parish/school outside the
contract.
The work is done on parish/school premises.
The parish/school has the right to require oral or written reports by the worker.
The worker is paid by the hour, week, or month.
Each party has the right to terminate the relationship without incurring liability.

Factors indicating the existence of an independent contract:

The worker carries workers compensation insurance.
The worker files a Schedule C or Schedule C-EZ.
The worker pays self-employment tax and makes estimated tax payments.
The worker is highly trained or skilled.
The worker has the right to hire and supervise. Worker pays assistants.
The worker has the right to establish his or her own hours of work.
The worker is paid by the job.
The worker furnishes his or her own tools and materials.
The worker has made a significant investment.
The worker can realize a profit or loss under the contract.
The worker is employed by more than one firm at a time.
The worker makes his/her services available to the general public.

The IRS will officially determine a workers status if Form SS-8 is filed.

Note: Workers cannot be an employee and an independent contractor. They cannot receive a
W-2 and a 1099-MISC tax form.

November 2009 III.2
Bishop Pates Priest Compensation Letter


November 2009 III.3


November 2009 III.4


June 2010 III.4.a
COMPENSATION FOR ACTIVE AND RETIRED PRIESTS
July 2010 through June 2011

December 29, 2009

Reverend and Dear Fathers:

The Presbyteral Council has recommended to me a priest compensation plan that would be
effective for the next fiscal year (2010-2011). Once again, their recommendations were made to
me after reviewing our historical information and considering the current economic environment.
The changes that were implemented last year to simplify the structure of the priest compensation
package are continued this year. In other words, the compensation amount now includes what
was previously designated as salary, the auto allowance and the food allowance as one amount.
The diocesan offices will provide additional materials dealing with the accounting and tax
treatment as applies to the compensation. I authorize the following plan to be implemented July
1, 2010.

ACTIVE PRIESTS

It is the responsibility of each priest to bring this information to those responsible for providing
his compensation.

Years Ordained Monthly
0 to 4 years $2,623
5 to 9 years $2,648
10 to 14 years $2,673
15 to l9 years $2,699
20 to 24 years $2,724
25 to 29 years $2,749
30 to 34 years $2,774
35+ years $2,800


June 2010 III.4.b
Household

The normal household expenses that are covered include laundry needs, kitchen supplies,
bathroom supplies, (this does not include personal grooming items), bedding, newspaper,
everyday household items (does not include large expenditures such as furniture and appliances).
Up to $125.00 can be spent on communication technology which includes cell phone, high speed
internet and cable TV, if applicable. This is not a complete list and it may vary somewhat from
parish to parish.

Continuing Education/Retreat Allowance

Each priest will continue to be allowed to receive an allowance for continuing education and
retreats. This amount is to be paid by the parish or institution. Up to $300 of this allowance may
be used for books, periodicals, cassette and videotapes or other resources for priestly formation.
For the 2010 fiscal year, the allowance amounts will be $2000. You are reminded that receipts
and documentation are to be filed to receive reimbursement for these expenses.

403B Plan

The 403B Plan will be changing due to new IRS rules. All priests will be enrolled in the diocesan
retirement plan through Christian Brothers Retirement Services. No other plans may be used for
the payroll deduction and parish matching retirement program.
The parish will match 100 % of the amount deferred by the priest with a maximum of $125 per
month.

Example,
If a priest earns $2,800 per month and defers 4% of his salary into the retirement plan, he will
contribute $112 per month. The parish would match with a contribution of $112 since this is less
than the $125 maximum. If this same priest defers 6%, he would be saving $168 and the parish
would contribute the $125 maximum.

Weekend Assistance

Priests who provide weekend assistance are to be reimbursed at the rate of $80 for the first Mass
and $50 for each additional Mass. Mileage is to be paid at the current IRS rate ($.55 for 2009). If
the coverage is provided by a religious community outside the diocese, the stipend is to be
negotiated with the order.


June 2010 III.4.c
Mass Stipends

The stipend is to be retained by the priest who offers the Mass, except when the priest elects to
take $100 per month, and give the parish or institution all of the Mass stipends. These stipends
are included in taxable wages.

Stole Fees

Offerings for weddings, funerals and baptisms belong to the parish. The exception to this is the
retired priests and priests from outside the diocese.

Car Allowance

There will be no separate car allowance. Any priest who submits monthly mileage in excess of
400 miles per month will be reimbursed for the excess business mileage at the current rate
allowed by the IRS of 55 cents per mile.

Parish bookkeeping must reflect the above salary arrangements. If there are special
circumstances that would demand a variance from this schedule, such as additional allowances
for food or other needs as were discussed by Presbyteral Council representatives please request
that approval through the office of the Vicar General.

RETIRED PRIESTS

Retired Priests of the Diocese of Des Moines receive $1,432.86 per month from the Priests
Pension Fund at Principal Financial Group.

The amount that they receive from Social Security varies according to each priest.

The income from whatever the individual has saved from his 403B account, IRAs or other types
of investments or savings are an important source of retirement income.

The Diocese of Des Moines pays the full premium for the retired priests health insurance. This
is approximately $5,000.00 per year.

The weekend stipend for one Mass is $80.00 and $50.00 for each Mass after that.

Retired priests receive the stipends for funeral and weddings.

Weekday Mass stipend is $35.00 and the stipend for Communal Penance is $40.00.

The mileage rate for the Diocese of Des Moines is 55 cents per mile. You may wish to keep
track of this separate from any stipends received for your income taxes.

Retired priests provide for their own housing, transportation and meals.


June 2010 III.4.d
~~~~~~~~

I am genuinely grateful to the members of the Presbyteral Council for their conscientious
consideration of this matter which eventuated in the policy outlined above. Thanks also to
Deacon Mike Riley for his invaluable assistance in guiding the Presbyteral Council through
countless details and thus enabling it to arrive at this equitable outcome.

Occasions such as this provide me the welcome opportunity in the name of the Church of Des
Moines to extend heartfelt thanks for your generous and effective ministry.

Assuring you of my best wishes, I remain

Sincerely yours in Christ,

The Most Reverend Richard E. Pates
Bishop of Des Moines


November 2009 III.5
Priest Compensation

Auto and Mileage Allowance

There is no separate auto allowance (auto allowance is included in the priests salary), but
any priest who submits excess mileage (over 400 miles in one month) will be reimbursed at
the current rate allowed by the IRS.
Note: The priest must maintain a written log of his mileage, listing dates and business
purpose.
<See: Resource Manual: Payroll: Bishop Pates Priest Compensation Letter>

Accounting: Record any reimbursement for excess mileage in 101-7200-40,
Mileage/Travel.

Food Allowance

Similar to the auto allowance, there is no separate food allowance; it is included in the
priests salary. It should not be separated out.

Housing Allowance/Expenses

Housing Allowance:
Finance Councils must preauthorize on an annual basis the amount the priest will be given
for a housing or rent allowance. Include utilities in this allowance. Publish the
preauthorization in the bulletin or school newsletter for all parishioners or parents/patrons to
view.

Household Expenses:
Parishes or schools provide priests normal household items. These items include, but are not
limited to: laundry needs, kitchen supplies, bathroom supplies (not personal grooming),
bedding, newspaper, cell phone (up to $50 per month), TV (basic cable), and everyday
household items (excludes large expenditures such as furniture and appliances). If a priest
purchases a household item directly, reimburse him upon the presentation of a receipt.

Accounting: Record all priest housing allowances and expenses should be in program 105.

Continuing Education/Retreat Allowance

Priests are given an allowance each year for continuing education and retreats. A specific
portion of this allowance may be used for books, periodicals, or other resources. Receipts
and documentation need to be turned in to receive reimbursement.
<See: Resource Manual: Payroll: Bishop Pates Priest Compensation Letter>


November 2009 III.6
Accounting: Record reimbursements for the Continuing Education/Retreat Allowance in the
following expense accounts:
101-7200-20 Continuing Education Fees
101-7200-10 Textbooks and Resources
101-7200-30 Meals/Lodging
101-7200-40 Mileage/Travel

Mass Stipends:

At the beginning of the fiscal year, priests have the option of retaining all Mass Stipends
received or electing to take $100 per month from the parish and giving all stipends received
to the parish.

Accounting: Record Mass Stipends received in 101-420009: Mass Stipends. Whether the
priest chooses to retain the actual Mass Stipends received, or take the $100 per month option,
pay him through payroll and record in 101-501001: Priests Salaries. This money is W-2
income to the priest.

If the priest retains any Mass Stipends received directly by him, include those amounts on the
priests personal tax return on Line 1 of Schedule C, or Schedule C-EZ. Given this situation,
there would be no entry to the parishs financial general ledger.

Weekend Assistance:

Weekend assistance is reimbursed at the rate of $75 for the first Mass and $45 for each
additional Mass.

Accounting: Record the money paid to the visiting priest in expense account 101-501003:
Priests-Extra Services. The priest would include the money on his personal tax return on Line
1 of Schedule C, or Schedule C-EZ. If the amount paid is $600 or greater in a calendar year,
the parish is required to provide a tax form 1099-Misc to the priest.

If a priest provides frequent weekend assistance, the parish could treat the priest as a part-
time employee and treat the amounts paid as salary.

Stole Fee:

Only retired priests and priests outside the Diocese are entitled to these fees. When these
fees are received directly, include the amounts as earnings in the priests personal tax returns
on Line 1 of Schedule C, or Schedule C-EZ. There would be no entry to the parishs books.

Retirement:

Please see the Employee Retirement document in this chapter for more information on
retirement for priests.

November 2009 III.7
Payroll Liabilities Summary

Payroll Liabilities Due to Whom Due
Health insurance
1
LaMair-Mulock-Condon (LMC) Prior to month of coverage
Dental insurance
1
Disability insurance
1
Vision insurance
1
Voluntary life insurance
withholdings
1
Cafeteria plan (Flex plan)

1

Employee Benefits Corporation
(EBC)
Direct debit to checking account on the
1st of the month
Retirement - 403 (b)
2
Christian Brothers 15 days after date of payroll

Federal income tax and
FICA
3
Federal government
Monthly or biweekly. Go to
http://www.irs.gov/publications/p15/ar0
2.html#en_US_publink100011714
State income taxes
3
State government
Quarterly, monthly, or biweekly. Go to
www.iowa.gov/tax/educate/faqwh.html.

1.
Please see the Employee Insurance document in this chapter for more information.
2.
Please see the Employee Retirement document in this chapter for more information.
3.
Please see the Payroll Taxes document in this chapter for more information.


November 2009 III.8
Employee Insurance

Employee Insurance

Generally, all active employees who are regularly scheduled to work 28 or more hours per week
are eligible for the employee insurance types explained below unless otherwise noted. LaMair-
Mulock-Condon is the administrator for the following insurances/plans:

Health/Dental/Vision/Life Insurance
Cafeteria Flex/Dependent Care Plans

It is the responsibility of each parish/school business manager/bookkeeper to inform all benefit
eligible employees about the employee benefit programs to which they are entitled.

Below is a list of all the employee benefits available through The Roman Catholic Diocese of
Des Moines. They are separated into three categories of employee benefits:

1. Non-Contributory The employer pays 100% of the cost of the insurance.
2. Contributory The employer and employee share in the cost of the insurance.
3. Voluntary The employee pays 100% of the cost of the insurance.

Non-Contributory

A. Long-Term Disability Insurance (Mandatory)
1. Mandatory for all locations.
2. All full-time benefit-eligible employees working 28 or more hours each week
must be enrolled in this plan.
3. The parish/school pays 100% of the premium.
4. Expense the premium to account number 5100-25, Disability Insurance at
the time of the monthly payment to LaMair-Mulock-Condon.

B. Group Term Life Insurance (Optional)
1. Group Term Life Insurance is available to all locations.
2. When offered, coverage is for all full-time benefit-eligible employees working
28 or more hours each week.
3. When offered, the employer must pay 100% of the premium.
4. Expense the premium to account number 5100-20 Life Insurance at the time
of the monthly payment to LaMair-Mulock-Condon.

C. Flexible Spending Account/Dependent Care (Optional)
1. Flexible Spending Accounts are available to all locations.
2. When offered, it is available to all full-time benefit-eligible employees
working 28 or more hours each week.

November 2009 III.9
3. Cafeteria Flex Plan allows an employee to deduct up to $3000 per year, pre-
tax, for unreimbursed medical expenses and up to $5,000 (filing jointly) for
dependent care expenses.
4. When offered, the employer must pay 100% of the administration fee.
5. Employee Benefits Corporation (EBC) directly debits the parishs/schools
bank account on the 1
st
of each month for employee deductions along with an
administrative fee.
6. Expense the Administrative Fee to account 5100-60 Cafeteria Plan.

Please see the Flex Spending/Dependent Care document in this chapter for more information.

Contributory

A. Medical Insurance
2. Available to all full-time benefit-eligible employees working 28 or more hours
each week.
3. The employer must contribute at least 70% of the lowest cost of single
coverage plus 50% of the extra for dependent coverage effective June 1, 2009.
4. All Priest health insurance is handled at the Diocese. No Parish/School
transaction is necessary.

B. Dental Insurance
each week.
3. The employer may or may not contribute toward the cost of the insurance.
4. Each parish/school determines the employer contribution.

C. Vision Insurance
each week.
3. The employer may or may not contribute toward the cost of the insurance.
4. Each parish/school determines the employer contribution


November 2009 III.10
Voluntary

A. Voluntary Group Term Life Insurance
each week.
3. The employee pays 100% of the premium.

For detailed or updated information please contact:

LaMair-Mulock-Condon (LMC):
Contact: Nancy McDonald
Email: nancy.mcdonald@lmcins.com
Phone: (515) 237 0134
Fax: (515) 237 0190


Flex Spending/Dependent Care

Beginning June 1, 2009, Employee Benefits Corporation (EBC) is the new provider for Flex
Spending accounts and Dependent Care, and LaMair-Mulock-Condon (LMC) is the
administrator.

When an employee signs up for a flex spending account, they determine how much money they
would like to have available to them for the year for unreimbursed medical expenses. The annual
amount is then divided over how many times they are paid per year.

Example:

An employee elects to have a total of $1,000 from June 1, 2009 May 31, 2010,
deducted for a flexible spending account. St. X parish pays its employees twice per
month. Each pay period, $41.67 ($1,000/24 pay periods) is deducted from the
employees pay check.

On the 1
st
of each month, Employee Benefits Corporation (EBC) debits the parishs checking
account for the total annual amount of elected flexible spending accounts divided by 12 months.

Example:

The employees annual withheld amount is $1,000. Divided over 12 months, EBC will
debit St. Xs checking account for $83.33 ($1,000/12).

An email is sent to the parish 24 hours before EBC debits the specified bank account. All
invoices are available online at www.ebc.com.

It is very important to reconcile the liability account (2025 Cafeteria W/H Payable) and the
bank account debited with the EBC invoices monthly. This will ensure the parish is paying the
exact amount that was withheld over the month.

NOTE: For parishes that pay every two weeks (26 times per year), there will be timing
differences between what was withheld and what was paid, due to the dividing the year
over 26 pay periods instead of 24.


For detailed or updated information please contact:
Employee Benefits Corporation
Contact: Jenn Gray
Email: jenng@ebcflex.com
Phone: 1-800-346-2126 ext. 183
Website: www.ebcflex.com

LaMair-Mulock-Condon (LMC)
Contact: Nancy McDonald
Email: nancy.mcdonald@lmcins.com
Phone: 515-237-0134
FAX: 515-237-0190


June 2010 III.12
403(b) Retirement Plan for the Diocese of Des Moines

Participation in the Christian Brothers 403(b) Plan is required to be offered to all priests and all
employees who are regularly schedule to work 20 hours a week or more.

If there is a retirement plan for the employee which is funded by employer contributions, it must
be the Christian Brothers Plan. No other company may be used.

Matching Formula: by July 1, 2010, the parish or school will provide one of the following
contributions to each employee who participates in the Christian Brothers 403(b) Plan:

50% of the employees contribution up to 3% of salary

The matching formula for the priests will be 100% of the priests contribution up to $125
per month.

Locations which were providing a discretionary contribution to the employees prior to July 1,
2010, are allowed to grandfather these employees arrangements, and implement the matching
formula for all new employees after July 1, 2010.

Recordkeeping fee: by July 1, 2010, the location will pay 50% of the fee and the employee will
pay 50%.

Probation Period: the employees are eligible for the employer match on the first anniversary of
their employment. (This requirement may not be implemented early, i.e. provide an employer
match before the first anniversary).

Taxes: The amount deducted from the employees pay check is considered non-taxable income
for current federal and state income tax purposes. The employee pays tax on the amounts
deferred when withdrawn from Christian Brothers Services.

As mandated by the Internal Revenue Service, all 403b withholding and contribution
payments must be made within 14 days of the employees paycheck.

For more information please contact:
Christian Brothers Contact Information:
Contact: Janet Lenert
Email: janet.lenert@cbservices.org
Phone: 1-800-807-0100 ext. 2631
Website: www.cbservices.org.


February 2010 III.13
Payroll Taxes

Types of Payroll Taxes

Social Security Taxes: These taxes are commonly referred to as FICA (the Federal Insurance
Contribution Act) and are levied on both employees and employers for the aged and disabled
population. For 2009, the government requires that 6.2% of the employees gross wages be
withheld for Social Security up to the first $106,800 (2009 figure) of total wages annually. The
employer must match that amount.

Medicare: Designed to alleviate the high medical care costs incurred for citizens over the age of
65, these taxes are levied on both the employees and employers. For 2009 the rate of tax is
1.45% of the employees total wages. There is no wage limit on Medicare taxes. The employer
must match that amount.

Federal/State Income Taxes: The Federal government and the State of Iowa require employers to
withhold from employees for federal and state income tax. The amount withheld depends on
marital status, the employees taxable wages, and allowances the employee claims. All new
employees must fill out two W-4 forms, one for the federal government and one for the state
government, upon being hired to establish the amount being withheld.

Important Information

Priests and Deacons are considered by the government to be self-employed for Social Security
Tax purposes; therefore, the church should never withhold taxes for Medicare and Social
Security (FICA) from clergy.

Priests and deacons are not required to withhold for federal and state income tax; however,
they may designate an amount to withhold. Priests and deacons may want to request additional
tax to be withheld over the standard one deduction for federal/state withholding to ensure there
will not be a penalty on their income taxes. The priest and his tax account should determine the
amount to withhold. Priests and deacons are not exempt from paying quarterly estimates, if
necessary, because priests are generally considered employees for income tax purposes.

Important Tax Forms

IRS Form 941: File this form quarterly for all federal taxes--Social Security, Medicare, and
Federal Income Tax. It is due the on the 15
th
of the month following the end of the quarter. This
form reports the payroll taxes to the IRS the parish/school has paid and accrued for the quarter.
When filing the 941, reconcile all tax payments made during the quarter to verify the
parish/school has paid everything to the IRS.

Please see www.irs.gov to find current 941 form and deadlines.

W-2: Print and give this form to each employee of the parish or school. It shows all taxable
wages paid to an employee and the taxes withheld from that employee during a calendar year.
Submit a copy of each W-2 to the IRS.

Please see www.irs.gov to order W-2 forms and to see deadlines.
Instructions for W-2 Form on following page.

W-3: Submit this form to the IRS at the same time you send W-2s. The W-3 lists the totals for all
employees taxable gross wages and the taxes withheld from all employees during a calendar
year. It is the sum of all W-2s. It is important to remember the four 941 quarterly forms
submitted throughout the calendar year should also total to this W-3 report. It is important to
reconcile all of these totals carefully.

Please see: www.irs.gov to order W-3 forms and deadlines.
Instructions for W-3 Form on following page.

Tax Payments

Federal Tax Payments: Federal Taxes are paid monthly or biweekly depending on the amount of
taxes. Please see IRS Publication 15, Circular E, Employers Tax Guide:
http://www.irs.gov/publications/p15/ar02.html#en_US_publink100011714 for more information.

Federal taxes include Federal Income Tax, Social Security and Medicare. There are two ways to
make Federal tax payments to the IRS:

1. Pay using a check: The payment is made by taking IRS tax form 8109 to the parishs
or schools bank with a check made payable to the bank for the tax liability amount.
The bank files the amount with the IRS. Form 8109 is not available online. To order
this form, call 1-800-829-4933.
2. Pay online: Electronic Federal Tax Payment System (EFTPS) is the online payment
processing website for the IRS. The IRS stresses the use of EFTPS over paying by
check. To find out how to sign up for EFTPS call 1-800-829-4933 or go to
www.eftps.gov.

Iowa State Income Tax Payments:

Iowa income tax payments are made biweekly, monthly, or quarterly depending
on the size of the parish/school state tax liability. Go to
http://www.iowa.gov/tax/educate/filestatus.html to see how often state taxes
should be remitted.

Monthly and quarterly payments are due at the end of the month following the
end of the month or quarter. For example, the first quarter ends March 31
st
; first
quarter state income taxes are due April 30
th
. For biweekly payments see
http://www.iowa.gov/tax/business/duedates.xls for due dates.

Iowa State income tax payments must be made online. Go to www.iowa.gov/tax/ to
sign up for a Business e-file Number (BEN) and to pay state income taxes. You can call
1-866-503-3453 with questions about state income tax.

February 2010 III.14.a
W-2/W-3 Instructions

Purchase W-2s and a W-3 from an office supply store, or obtain from the Internal Revenue
Service.

Print 6 copies of each employees W-2:

The first copy is for the Social Security Administration along with the W-3
The second copy is for the State of Iowa Department of Treasury
The third copy is to be given to the Employees to file with their tax return
The fourth copy is given to the Employees to keep for their records
The fifth copy is given to the Employees to file with their State income tax return.
The sixth copy is retained by the Employer for its records.

Shown below is a copy of the 2009 W-2:

Box 1: Wages, Tips, other Compensation:

Box 1 reports the federally taxable income of the employee. Wages in this box include the
following:


February 2010 III.14.b
Total wages paid to the employee during the year.
Bonuses (including signing bonuses), prizes and awards paid to the employee during
the year.

Box 1 excludes the following:

Employee contributions to a 403b retirement plan
Employee paid portions of health, dental, or life insurance premiums
Employee contributions to a flex plan
Employee dependent care deductions

NOTE: Employee 403b contributions, employee portions of insurance premiums, flex
contributions, and dependent care payments are not subject to federal and state income tax.
403b monies are subject to income tax only when withdrawn.

Box 2: Federal Income Tax Withheld:

Box 2 reports all Federal income tax which was withheld from the employee during the year.

Box 3: Social Security Wages:

Box 3 represents the employees social security taxable income. This box includes the
following:

Total wages paid to the employee during the year.
Bonuses (including signing bonuses), prizes and awards paid to the employee during
the year.
Employee 403b retirement plan contributions

Box 3 excludes the following:

Employee paid portions of health, dental, and life insurance premiums.
Employee contributions to a flex plan
Employee payments for dependent care plan

NOTE: Priests and Deacons are not subject to Social Security tax. Leave boxes 3 6 blank for
all Priest and Deacon W-2s.

Box 4: Social Security Tax Withheld:

Box 4 represents the amount withheld from the employee for Social Security taxes. Do NOT
include the employer paid portion of Social Security taxes on any W-2.

February 2010 III.14.c
Box 5: Medicare Wages and tips:

Box 5 represents the employees Medicare taxable income.

Most likely, this number will equal the amount recorded in Box 4. These two figures will differ
if the employee makes more than the Social Security wage base limit ($106,800 for 2009).
Individuals do not pay Social Security tax on income over the Social Security wage base limit. If
the employee makes less than Social Security wage base limit in a year, Box 5 will be the same
as Box 3.

<See Box 3 Social Security Wages above for what is to be included and not included in
Medicare Wages and tips.>

Box 6: Medicare Tax Withheld:

Box 6 represents the amount withheld from the employee for Medicare taxes. This amount will
equal Box 4, if the employee does not make over the Social Security wage base limit during the
year.

Box 7: Social Security Tips
Box 8: Allocated Tips
Box 9: Advance EIC payment

Leave boxes 7 9 blank unless needed.

Box 10: Dependent Care Benefits:

Box 10 represents the amount the employee has paid toward Dependent Care benefits during the
year. If the employee does not participate in the Dependent Care plan, leave this box blank.

Box 11: Nonqualified Plans:

Leave Box 11 blank.

Box 12a 12d:

Record here the amount contributed by the employee for a retirement plan. Boxes 12a 12d
require a code to be in the first part of the box followed by the amount. For 403b retirement
contributions, show code E in Box 12a, followed by the amount withheld from the employee for
retirement during the year. In these cases, leave boxes 12b 12d blank. If the employee does
not participate in a retirement plan through payroll deduction, leave boxes 12a 12d blank.

Box 13: Checkboxes

If the employee has had money withheld for a 403b retirement plan during the year, check
Retirement plan in Box 13. If the employee had nothing withheld for a 403b, do not mark
anything in this box.


February 2010 III.14.d
Box 14: Other:

Use Box 14 for additional employee information. Label each item. Examples include health
insurance premiums deducted, educational assistance payments, or a Priests or Deacons
housing allowance.

Box 15: State:

Record IA in Box 15, along with the Parishs/Schools Iowa state tax ID number.

Box 16: State Wages, tips etc:

In Box 16, record the same amount as in Box 1.

Box 17: State Income Tax:

Box 17 represents the amount withheld from the employee during the year for State Income tax.

Box 18 20 Local Tax:

Complete boxes 18-20, if your community is subject to any local income tax.
The next page shows a copy of the 2009 W-3.

Box A: Control Number:

Leave this box blank.

Box B: Kind of Payer:

Check 941 in this box.

Box C: Total number of Forms W-2:

Record the number of employees who are receiving a W-2.

Box D: Establishment Number:

If separate establishments in your parish/school are identified, file a separate W-3 and W-2 for
each establishment, even if they all have the same EIN, or file a single W-3 for all W-2s.

Box E: Employer Identification Number:

Record the Federal Tax ID (EIN) number here.

Box F Employers Name:

Enter the same name here as submitted on the most recent Form 941.

February 2010 III.14.e
Box G: Employers Address and ZIP code:

Box H: Other EIN used this year:

Leave blank.

Boxes 1 13:

Enter the figures reported in boxes 1 13 on all W-2 Forms.

Box 14:

Leave Box 14 blank.

Box 15: State/Employers State Tax ID Number:

Enter IA and the Iowa State Tax ID Number.

Boxes 16 19:

Enter the total of state/local wages and income tax shown in the corresponding boxes on the W-
2s included with the W-3.

Verify the amount reported in each box is an accurate total of the Forms W-2

It is very important to reconcile the amounts show in boxes 2, 3, 5, 7, and 9 for Form W-3 with the
corresponding 941s for the same year.

E-Filing: For information on filing your W-2s and W-3 online with the Social Security Administration, please go
to http://www.socialsecurity.gov/employer/.

February 2010 III.14.f


New Employee Checklist

1. Have new employee fill out I-9 and present two forms of identification. Acceptable forms of
identification are defined by the IRS at http://www.irs.gov/pub/irs-pdf/fw9.pdf

2. Have new employee fill out a W-4 form for both Federal and State taxes.

The 2009 state of Iowa form is found at http://www.iowa.gov/tax/forms/44019.pdf
The 2009 federal form is found at http://www.irs.gov/pub/irs-pdf/fw4.pdf?portlet=3

3. If an employee is to work at least 28 hours, have new employee fill out insurance information
and submit to LaMair-Mulock-Condon (LMC). (LMC provides information forms. Contact
Renee Blakely at LMC for more information)


4. If an employee is to work at least 20 hours, have new employee fill out Christian Brothers
information and return to Christian Brothers Services. (Christian Brothers Services provides
information. Contact Christian Brothers Services for more information).

Please see the Employee Retirement document in this chapter for more information.

5. Enter all the above information into the ParishSOFT (CMS) Payroll Module, along with
wage/salary data.

Please see the ParishSOFT (CMS) Payroll Module document in this chapter for more
information.


Employee Termination Checklist

1. Contact LaMair-Mulock-Condon (LMC) and Christian Brothers Services to notify them of
termination, if applicable.

Please see the Employee Insurance and Employee Retirement document in this chapter for
more information

2. Pay out any unused vacation hours to the employee.

3. In the ParishSOFT (CMS) Payroll Module, under Enter/Change Employees un-check the
calculate employee box under the Emp/Cust tab. By un-checking this box the employee
will no longer be calculated for payroll. Do not delete the employee out of the payroll
module.

Please see the Important Things to Remember in ParishSOFT (CMS) Payroll Module
document in this chapter for more information.


ParishSOFT (CMS) Payroll Module

Payroll is a separate module from the Ledger and Payables module. It is important to understand
how these two systems work together.

Please see the Payroll User Guide for more information.

The Payroll module does not save pay detail for each pay period. Payroll totals are kept for each
employee, but it is not possible to see the detail of these totals. Therefore, it is very important
to print out detailed payroll reports each pay period. At a minimum, keep the Payroll
Summary report for ALL pay periods along with all pay check stubs. The Diocese recommends
creating a payroll file where each pay periods detailed reports are filed. Keep this file in a
locked area due to the sensitive information.

Please see the Office Organization document in the Internal Controls chapter for more
information.

When payroll is processed in the Payroll module, the information needs to be posted into the
Ledger and Payables module. It is important to remember the last step in the payroll process is
to post it into the General Ledger module. When the payroll is posted, a series of transactions
and journal entries are created in Ledger and Payables:

A bill and corresponding check are created under the vendor Payroll Vendor for
each payroll check printed. The comment for each bill will show the name of the
employee. The coinciding expense to this bill will show the shortcut code of the
checking account (normally 1000). This bill is debiting and crediting the same
account. There is no effect on the checking account because of this bill/check.
This bill and check are created to record the check number not the payment.

A journal entry is also created in the General Ledger. This shows the payment of
the payroll in one lump sum. This journal entry is a summary of the payroll for
that pay period.

See the next page for an example.


Payroll Example:
St. Marys is paying their pastor Fr John Doe $2,390.00 per month and their bookkeeper Jane
Anderson $957.00 per month.

Only the pastor is signed up for a 403b retirement account and has $125 withheld every month.

The following bill will be automatically created for Fr. John Doe from St. Marys after posting
from Payroll:

A similar bill is also created for Jane Anderson.


The following Journal Entry will automatically be created in Ledger and Payables after posting
the payroll from the payroll module:

St. Mary's JE at end of Month

Acct. No. Description Debit Credit Comments
1000 Checking 2,789.79 Total Amount written in
paychecks
2000 FICA W/H Payable 146.42 FICA W/H from Jane plus St.
Mary's half*
2005 Federal W/H Payable 300.00 Federal W/H from both Fr.
John Doe and Jane
2010 State W/H Payable 59.00 State W/H from both Fr. John
Doe and Jane
2030 Retirement W/H
Payable
250.00 Fr. John Does retirement W/H
plus St. Mary's match
101501001 Priests 2,390.00 Fr. John Does salary expense
101503001 Secretary 957.00 Janes salary expense
101510045 FICA Tax 73.21 St. Mary's FICA expense for
Jane
101510090 Priests Retirement 125.00 St. Mary's expense for Fr. John
Does retirement match
3,545.21 3,545.21

NOTE: Priests and deacons NEVER have FICA/Medicare tax withheld. This amount is incurred
because of non-clergy employees. The IRS requires that the parish/school match the amount
withheld from any employee for FICA/Medicare.

Please see the Outsourcing Payroll document in this chapter for another Journal Entry example.


February 2010 III.20

Important Points to Remember in Payroll

1. ALWAYS POST PAYROLL TO LEDGER AND PAYABLES. After processing the
payroll for a given pay period, be sure to click post payroll. This transfers the payroll
information to the Ledger and Payables module. Not doing this can cause serious future
problems. If you get the message: Warning! There are Check Records Already Present For
Employees in Selected Paygroups do not proceed with current payroll. Click on post
payroll and post all non-posted transactions to Ledger and Payables. After clicking post
payroll, double check that Perform Data Transfer of Payroll Data to Financial System is
checked.

Please see the ParishSOFT (CMS) Payroll Module document in this chapter for more
information.

Hint: When working in the Payroll module, if all left-hand fields are grayed out
except Post Payroll then a payroll has been processed and not posted.

2. DO NOT CHANGE THE DEDUCTION/BENEFIT TAXABILITY AFTER INITIAL
SET UP. After setting up the taxability of each deduction/benefit type, the check marks next to
the taxes should not change unless an initial error has been made.

Please see the Benefit/Deduction document in this chapter for more information.

3. NEVER DELETE AN EMPLOYEE. An employee should never be deleted out of the
payroll system. If an employee has been terminated, the Calculate Employee check box under
Enter/Change Employees Emp/Cust should not be check marked. In future pay periods the
employee will no longer be calculated.

4. NEVER ENTER AN EMPLOYEE MORE THAN ONCE INTO THE PAYROLL
MODULE. If an employee has multiple functions and or wage amounts within the
parish/school, multiple lines should be entered under Enter/Change Employees PayData.

5. DO NOT WITHHOLD FICA/MEDICARE FROM PRIESTS OR DEACONS. Priests and
Deacons are considered self-employed by the IRS. Never withhold FICA/Medicare taxes from
their paychecks.

Please see the Payroll Taxes document in this chapter for more information.

6. REMEMBER TO ALWAYS PRINT DETAIL PAYROLL REPORTS EACH PAY
PERIOD. The ParishSOFT (CMS) Payroll Module is set up to not save the payroll detail for the
pay period. It only accumulates totals for each employee. Therefore it is very important to
always print out detailed payroll reports each pay period.

ParishSOFT (CMS) Payroll: Benefit/Deduction

Benefit: the amount paid by the parish/school for health insurance, dental insurance, retirement,
etc.

Deduction: the amount withheld from an employee to pay for health insurance, dental insurance,
retirement, etc.

Please see the Employee Insurance and Employee Retirement document in this chapter for more
detail.

Below are all of the deductions and benefits that should be set up by the parish/school
bookkeeper.

NOTE: The check marks next to each deduction/benefit show which taxes are being taken out of that
deduction/benefit.

To get to this screen in the payroll module:

Enter/Change Employees Ded/Ben Tab Up arrow next to code

The check marks next to these deduction/benefits should never change after they have been set
up unless an initial error is made.

To set up these Benefits/Deductions, click on New D/B Interview and follow the interview
instructions.

Each Benefit/Deduction should be mapped to the specific accounts below:

Pre-Tax Insurance: deducts the employees pay check before any taxes are considered.

Post-Tax Insurance: deducts the employees pay check after taxes are considered.

Each employee decides whether they want the deduction taken out after or before taxes.

*Additional benefits may need to be set up for employees working for Religious Education (301)
or the School (201) to have the expenses mapped to the correct program.

NOTE: On Retirement for Priests, map the expense of the parish/school to expense account
number 101510090.

Cafeteria Flex/Dependent Care Plans

Additional deductions will need to be set up for any parish/school employee who elects to enroll
in either a flex and/or dependent care plan (follow directions above.) All flex/dependent care
deductions are taken out pre-tax. There should only be a deduction for this plan.
Parishes/Schools do not contribute money to an employees flex or dependent care plan. The
parish/school does pay the administrative fee associated with the flex plan.

Deduction
Liability
Account No. Liability Account Description
Pre-Tax Health Insurance 2015 Health Insurance W/H Payable
Post-Tax Health Insurance 2015 Health Insurance W/H Payable
Pre-Tax Dental Insurance 2020 Dental Insurance W/H Payable
Post-Tax Dental Insurance 2020 Dental Insurance W/H Payable
Pre-Tax Vision Insurance 2015 Health Insurance W/H Payable
Post-Tax Vision Insurance 2015 Health Insurance W/H Payable
403b Retirement 2030 Retirement W/H Payable
Benefit
Liability
Account No.
Liability Account
Description
Expense Account
No.
Expense Account
Description
Health Insurance
Benefit 2015
Health Insurance W/H
Payable 101510010*
Health Insurance
Expense
Dental Insurance
Benefit 2020
Dental Insurance W/H
Payable 101510015*
Dental Insurance
Expense
403b
Contribution 2030
Retirement W/H
Payable 101510030*
Retirement
Benefit


Map all flex/dependent care plan payroll deductions to the following liability account:

2025 - Cafeteria Withholding Payable

Expense administrative fees associated with the flex/dependent care deductions in Ledger and
Payables to:

101-5100-60 - Cafeteria Plan

Please see the Employee Insurance and Flex Spending Account/Dependent Care documents in
this chapter and the Church Management Solutions Payroll User Guide: Deduction/Benefit for
more information.


Outsourcing Payroll

When payroll is outsourced to a third party provider, enter a journal entry into ParishSOFT
(CMS) Ledger and Payables to recognize the effect of paying employees.

The following is an example of how to record the journal entry in ParishSOFT (CMS) Ledger
and Payables:

Payroll Example

St. Marys outsources their payroll.

Fr. John Doe is paid $2,390.00 per month and has $125 withheld for his 403b Retirement Plan
every month.

The secretary/bookkeeper Jane Anderson is paid $1841.00 per month. Jane has the following
withholdings:
$105.87 withheld every month for health insurance
$14.21 for dental insurance
$50.00 for her flex account
$4.24 per month for vision insurance
$10 for life insurance
$75.00 for her 403b Retirement Plan

St. Marys pays the following benefits:
$450.15 every month for Janes health insurance
$27.48 for her dental insurance
$125.00 for Fr. John Does 403b Retirement Plan
$25.00 for Janes 403b Retirement Plan

See next page for journal entry.


Jane enters the following Journal Entry at the end of the month into
ParishSOFT (CMS) Ledger and Payables:
Acct. No. Description Debit Credit Comments
1000 Checking 3,414.47 Amount actually written out in paychecks
2000 FICA W/H Payable 210.46 FICA W/H for Jane plus St. Mary's half**
2005 Federal W/H Payable 300.00 Federal W/H from employees
2010 State W/H Payable 59.00 State W/H from employees
2030 Retirement W/H Payable 350.00 Fr. John Doe's $125 withholding plus St.
Mary's match, Jane's $75 withholding for
retirement plus St. Mary's $25 for Jane
2015 Health Insurance W/H
Payable
556.02 Jane's health insurance withholding plus
St. Mary's payment portion of Jane's
health insurance.
2020 Dental Insurance W/H
Payable
41.69 Jane's dental insurance withholding plus
St. Mary's payment portion of Jane's
dental insurance
2025 Cafeteria W/H Payable 50.00 Jane's flex /withholding
2015 Health Insurance W/H
Payable
4.24 Jane's vision insurance withholding
2040 Other Payroll W/H Payable 10.00 Jane's life insurance withholding
101501001 Priests 2,390.00 Fr. John Doe's salary expense
101503001 Secretary 1,841.00 Jane's salary expense
101510045 FICA Tax 105.23 St. Mary's FICA expense for Jane**
101510090 Priest's Retirement 125.00 St. Mary's expense for Fr. John Doe's
retirement match
101510010 Health Insurance 450.15 St. Mary's Expense for Jane's health
insurance
101510015 Dental Insurance 27.48 St. Mary's expense for Jane's dental
insurance
101510030 Retirement Benefit 25.00 St. Mary's expense for Jane's retirement*
4,963.86 4,963.86
*Current Diocesan Policy does not require parishs/schools to contribute to non-priest
employees for their 403b retirement plans.

**Clergy NEVER have FICA/Medicare tax withheld. This amount is incurred because of non-
priest employees. The IRS requires that the parish/school match the amount that is withheld from
any employee for FICA/Medicare.

NOTE: A memorized transaction can be set up in Ledger and Payables with no amounts.
Each pay period the bookkeeper would only need to fill in the amounts.
Please see the ParishSOFT (CMS) Ledger and Payables User Guide: Memorized Transactions
for more information.

April 2010 IV
IV. General Ledger Page

A. Recording Contributions and Other Receipts IV.1
1. Automatic Transfer from ParishSOFT Offering and
Pledges to ParishSOFT (CMS) Ledger and Payables IV.2
B. Processing Invoices IV.3
1. Sales/Use Taxes IV.4
2. Special Check Situations IV.6
3. 1099s IV.10
C. Journal Entries IV.11
D. Restricted Assets IV.13
E. Investment Gains and Losses IV.14
F. Tuition and Fees IV.16
G Funds Held for Others (FHFO) IV.17
H. Capitalization and Fixed Assets IV.18
I. Depreciation of Fixed Assets IV.19
J. Net Assets IV.21
K. Suggested Activity Checklist IV.26

Purpose Statement: This section provides specific information related to the many financial
areas in addition to payroll and instructs how to correctly process and/or account for this
information
Diocese of Des Moines Chapter IV. General Ledger

April 2010 IV.1
Recording Contributions and Other Receipts

Post contributions received from families or family members (Sunday Collections, Second
Collections, etc.) into ParishSOFT using the Offering and Pledges Module. Post the collection to
the appropriate family record. When loose cash is collected, post to a family record within the
ParishSOFT Family Directory titled Loose Cash or Plate Collection. This will account for all
monies brought in for each collection. The Family Record created in the ParishSOFT database
for Loose Cash should not be marked as Registered or Active.

Post collections into ParishSOFT Offering and Pledges module in a Batch format. Create batches
for each Mass or collection event in order to best reconcile the amount posted to the amount
collected to the amount deposited. Please refer to the ParishSOFT Offering and Pledges User
Guide for information on entering Batches. Utilizing the Batch process ensures each contribution
posts accurately. The batch total deposit can then be transferred electronically into the
ParishSOFT (CMS) Ledger and Payables program. (See next manual insert for an example.)

Other receipted income not related to a specific family contribution (e.g., credit issued by a
vendor, interest income, sale of items) will be posted directly into the CMS Ledger and Payables
program.

Information regarding these processes is found in the ParishSOFT User Guides for the Offering
and Pledges Module, as well as the Ledger and Payables User Guide.

The following page in this manual refers to the process of transferring from ParishSOFT
Offering and Pledges software to a deposit in the CMS Ledger and Payables software
program. Following that transfer, the two recorded income amounts in each software
program should be reconciled utilizing the reports available from each software program

Diocese of Des Moines Chapter IV: General Ledger

April 2010 IV.2
Automatic Transfer from ParishSOFT Offering and Pledges to
ParishSOFT (CMS) Ledger and Payables

1. Export File from ParishSOFT Offering and Pledges.

a) Post all batches, per collection, in the ParishSOFT Offering Module.
b) In ParishSOFT Offering, click on Utilities, Export to CMS Fund Accounting.
c) Enter a beginning date for exporting contribution data.
This is the export file that CMS will use to create transactions.
d) Enter an End Date (or leave blank for thru current date).
e) Click on OK. A message box will indicate the file path where the export was saved.
Make note of that path and click on OK.

2. In CMS Ledger and Payables, initiate the transfer.

a) Click on Process, Contribution Transfer, From ParishSOFT Offering.
The first time into the Transfer process, the system will look for the export file
CMSFundAccountingExport.txt in the TSL folder in the default ParishSOFT data
folder. If the file cannot be found, the system will ask you to browse your computer for
the location of the file. Browse to the file location you noted in Step 1d) above.
b) Next, an Enter CMS Shortcut window will appear.
All ParishSOFT Chart of Account IDs (COAIDs) must have a corresponding CMS

April 2010 IV.2.a
c) Shortcut Number (account). The setup of this window will allow you to define for a
given ParishSOFT COAID, what CMS account to update. This window will also
automatically appear in the future whenever a new ParishSOFT COAID is in the export
file without a CMS Shortcut Number defined.

d) Based on the file that was exported, a window will appear to create the transfer
deposit(s). Select the dates and total deposit you wish to transfer at this time. Transfers
to a prior, closed month are not allowed. The system will also search for, and alert you
to any possible duplicate deposits before the transfer occurs.


April 2010 IV.2.b

e) Click the Transfer button. A deposit for each date is created.

3. Reconcile the posted Batch totals in ParishSOFT Offering to the Deposits recorded in CMS.

a) To confirm the deposit(s) recorded in CMS, click on Reports Transactions
Deposit Register. Choose the appropriate Range of Dates that will reflect your
deposit transfer from ParishSOFT. Click on Print. The Deposit Register should
indicate a deposit From PS Offering: {Income Account}. Reconcile each
ParishSOFT Offering batch to the corresponding CMS Ledger and Payables deposit
listed on the Deposit Register from CMS.


April 2010 IV.2.c

b) In ParishSOFT Offering and Pledges, reconcile to the Parish Detailed Contribution
Report [Reports ParishSOFT Reports Contribution Reports Menu Date Range
Contribution Report Date Range Contribution Reports.] Select the appropriate
Funds Choose In Batches Only (if suggested procedure of using batches is being
utilized) Select the appropriate Date Range Print a Detailed Contribution Report
<or> choose the Detailed Contribution Report with Names to reconcile back to the
envelopes that were posted. Reconcile that report total to both the Deposit Register
from CMS as well as the Deposit slip for the bank. All amount totals should match.
Paper copies of the reports should be initialed indicating the reconciliation was
completed. Those paper copies should be kept with the envelopes and the cash count
sheet for that week.


April 2010 IV.2.d


February 2010 IV.3
Processing Invoices

Setting up New Vendors

When setting up vendors in Ledger and Payables, make certain that the correct address and
phone number have been entered for the Vendor. The address will print on the check underneath
the Vendor name when checks are printed for this Vendor. It is also important to have the correct
address and phone number because the vendor profiles can act as a resource when needing to
contact a Vendor. Always request a signed W-9 Form from the Vendor at this time as well.
Complete W-9 forms assist at year-end to determine if the Vendor receives a 1099 Form.

Please see the Ledger and Payables User Guide: Vendors for steps in setting up vendors.

Memorizing Transactions

The memorized transactions tool in Ledger and Payables allows you to memorize bills. Invoices
for gas, electricity, water, internet, etc, which regularly occur, can be memorized and set to be
created on a specific day of the month. This tool can also serve as a reminder to pay the invoices.
It can also be a reminder if you havent received an invoice and you usually do receive one on a
specific day.

Please see the Ledger and Payables User Guide: Memorized Transactions for steps in setting up
memorized transactions.

Receiving Invoices

When the invoice is received, stamp or write the current date on the invoice. If the invoice is
received late, the date stamp provides backup information explaining why the invoice was paid
late.

Checking Math Accuracy/Proving Receipt of Goods

Before inputting an invoice into Ledger and Payables, check the accuracy of the math on the
invoice. Document the math accuracy check and verification of goods/services received with a
check mark and initials. If a packing slip is received when the items are delivered, give the
packing slip to the bookkeeper. The bookkeeper matches the packing slip with the invoice and
documents that review with a check mark and initials on the packing slip.

Approving Invoices

For larger parishes and schools, it is important that the appropriate department approves an
invoice before a check is issued. For example, if the Religious Education program orders new
text books, the Religious Education Director signs the invoice before the check is issued. The
Directors signature tells the check signer that the Director is aware of this invoice and
authorizes its payment. Smaller parishes will also want to authorize all invoices before preparing
a check.

February 2010 IV.3.a
Entering Invoices

After authorization, enter invoices into Ledger and Payables and stamp the invoice, or mark
Entered, with the due date. This helps protect against inputting and paying the invoice twice,
as well as ensuring a timely payment of the invoice. After entering an invoice into the system,
file it in an Unpaid Bills folder.

It is a best practice to always enter an invoice number in the appropriate field to protect against
entering and paying an invoice twice. If the invoice does not have an invoice number, use the
date of the invoice. Use the same date format consistently.

Documenting Payment on Invoice

After the check (and check stub) has been prepared, attach the related invoice and present to the
pastor, or his designee, with any remittance stub. Always have the pastor, or his designee, sign
the check; never use a signature stamp. After the check signer has reviewed the documents and
signed the check, the signer cancels the invoice by signing or initialing it. This protects from
fraud by ensuring no one will be able to request duplicate payment on an already paid invoice.
Do not pay any bill without an invoice.

On the day the check is mailed, a best practice includes stamping the invoice using a Paid or
Mailed stamp with the current date. The mailing date provides information for vendors who
want to know when the check was mailed.

<See: Resource Manual: Internal Controls: Cash Disbursement.>


November 2009 IV.4
Sales Taxes/Use Taxes

Definitions
Sales tax is a tax assessed (certain percent) by the State on the sale of most goods and
services. The retailer has the burden to collect sales tax, but if the retailer should and
does not, the consumer must remit to the State.

Use taxes are taxes imposed by the State to compensate for the sales tax revenue lost
when an item is purchased outside of the state (Because the item is to be used in the
State, the State charges a Use Tax.). The retailer has the burden to collect use tax, but
if the retailer should and does not, the consumer must remit to the State.

Even though churches are non-profit entities, they are generally not exempt from paying sales
tax. Three rules to know:

1. Sales taxes are not paid on services unless specifically included in the Iowa Tax Code.
2. Sales taxes are paid on supplies unless specifically excluded from the Iowa Tax Code.
3. All schools are exempt from State sales tax.

It is the non-profit nature of churches that can cause them problems with vendors not charging
sales tax. Parishes/Schools must be vigilant when reviewing invoices for payment to be certain
the necessary sales tax or use tax has been applied. If an invoice is received that does not have
sales tax or use tax added, but should, contact the vendor and request a new invoice with sales
tax or use tax added.

If no use tax is collected and should be, then the church must remit the appropriate sales tax
amount to the State. If the use tax charged is less than Iowa sales tax, the difference between the
two taxes must be remitted to the State.

See the Iowa Department of Revenue website for information on common taxable situations. Go
to http://www.iowa.gov/tax/educate/salespubs.html.

Below is the current information on how often to file state sales tax.
Sales Tax Filing Frequencies and Return Due Dates
Annual: Less than $120 tax per year - The return is due and payable no later than
January 31 following each calendar year.
Quarterly: More than $120, but less than $6,000 tax per year ($30 - $1,500 per
quarter) - The return is due on or before the last day of the month following the end of
the calendar quarter.
Monthly: More than $6,000, but less than $60,000 tax per year ($500 - $5,000 per
month) - The monthly deposit is due by the 20th of the month following the month in

November 2009 IV.5
which the tax is charged and only applies to the first two months in the quarter.
(Monthly filers then file the quarterly return.)
Semimonthly: More than $60,000 tax a year (more than $5,000 per month; more than
$2,500 semimonthly) - The first semimonthly deposit is for the period from the first
of the month through the 15th and is due on the 25th of the month. The second
semimonthly deposit is for the period from the 16th through the end of the month and
is due on or before the 10th day of the month following the month of collection.
However, the last semimonthly deposit of the calendar quarter is due on the last day
of the month following the end of the quarter.
Please see http://www.iowa.gov/tax/educate/78539.html#FileFreq for current information.


February 2010 IV.6
Special Check Situations

Old Outstanding Checks

If there are checks listed as outstanding over six months old, contact the vendor to determine if
they received the check. If they have not received the check:

1. Void the check in ParishSOFT (CMS) Ledger and Payables (see directions on next page).
2. Re-issue the check.

If the payee has the check and simply forgot to cash the check, ask them to return the check so
you can issue a new one. Checks more than six months old need to be reissued. After the original
check is received back at the parish/school:

1. Void the check in ParishSOFT (CMS) Ledger and Payables (see directions on next page).
2. Write VOID in big letters across the paper check and cut out the signature line.
3. Reissue the check.

NOTE: The original check must be received at the parish/school before a new check is
issued.

If the payee of the old outstanding check cannot be reached, void the check (see directions on
next page).

Deleting Checks

To provide a good audit trail, do not delete checks. Use the following procedures when a check,
or the posting of a check, is in error:

A. Computer Checks:
1. Void the check in ParishSOFT (CMS) Ledger and Payables (see below)
2. Write VOID in big letter across the incorrect check and cut out the signature line.
3. Reissue the check.

Voiding a Check in ParishSOFT (CMS) Ledger and Payables

To void a check follow the instructions below:
1. Click on the drop down menu Entry.
2. Select Checks View, Void, Delete
3. Select proper checking account.


February 2010 IV.7

4. Click the Find button.
5. Type in the check number that needs to be voided.
6. Click the Select button.
7. Click the Void button.

Previous Fiscal Year Outstanding Checks
If the fiscal year in which the check was written has not been closed in ParishSOFT
(CMS) Ledger and Payables, follow the above directions and void the check.
The check will no longer appear in the checks view, void, delete window because it
is from a previous fiscal year that has been closed.
The check will still show as outstanding in the bank reconciliation window.


February 2010 IV.8
1. Mark the check as cleared in the bank reconciliation window.

Previous Fiscal Year Outstanding Checks (cont):

2. Post a manual journal entry to reverse the check.

The debit will be to the checking account from which the check was originally written, in this
case account #1005 (Checking West Bank).
The credit will be to the expense account the check was originally posted to, in this case health
insurance (101-5100-10).


April 2010 IV.9
B. Manual Check CMS Entry Errors:
If the incorrect vendor was entered into Ledger and Payables:
1. Void the incorrect check by following the previous instructions.
2. Re-enter the check information and add the void year and month to the beginning
of the check number using a YYYYDDchecknumber format. Be sure
ParishSOFT is set up to accept a number this long. For example:
2010015443: 5443 is the check number and the check was voided in the
year 2010, in the month of January.

If the amount or account number is incorrect:
1. Create an adjusting journal entry either correcting the amount or moving from the
wrong account to the correct account.

If the incorrect check number was entered:
1. Void the check
2. Re-enter the check with the correct check number.


February 2010 IV.10
1099 Information Returns

A 1099 information return must be filed with the Internal Revenue Service (IRS) for payments
made to a service provider or contractor during the calendar year which in total are greater than
or equal to $600 and have not been reported on the following tax forms: W-2, W-3, 941-943,
1042 or 1120S.

File a 1099 for payments greater than or equal to $10 for interest, royalties, dividends, and
unemployment compensation.

There are multiple 1099 forms, each serving a different purpose. Generally, the 1099-MISC form
is the one most parishes and schools will file. Below are some of the more frequent types of
payments for which parishes and schools may need to send 1099-MISC forms.

1099-MISC (not for corporations, except where noted):
Advertising fees: (only for a companys creation of the advertisement)
Car expenses, non-employee: non-accountable plans, i.e., no documentation is
provided, such as receipts or mileage logs
Healthcare corporations payments
Prizes to non-employees: fair market value of merchandise; amounts paid not
involving a wager ($5 for a raffle ticket would be an example of a wager).
Professional fees (not expenses): attorneys, even corporations; accountants; architects
Rent payments: exclude real estate agents, needy individuals; include machine rentals
Services rendered: include parts and materials used in providing services
Stipends (not expenses)
Unemployment compensation
Accrued employee benefits/compensation paid after the death of an employee: Do not
report on a W-2

See the IRS website, www.irs.gov for a complete listing of types of payments and forms
required.

Note: Before issuing checks to service providers, verify the individuals social security number
or the entitys tax identification number by having them complete and sign a W-9. A copy of a
W-9 may be obtained from the IRS website: www.irs.gov.

945 Tax Form and 1099s

File a 945 tax form annually on January 31
st
to report any federal income tax withheld from non-
payroll payments. Therefore, if federal income tax withholding is reported on any 1099 forms,
report it on Form 945. Please see www.irs.gov for Form 945.

Only one Form 945 is filed for any calendar year. Federal income tax withheld from wages is
not reported on Form 945


November 2009 IV.11
Journal Entries

Journal Entries should be reversed, NOT deleted.

If a Journal Entry is entered incorrectly, create a new journal entry to reverse it.

The Journal Entry below was entered incorrectly. It should have been for $44.37 not $41.37


November 2009 IV.12
A new Journal Entry is created to reverse the incorrect Journal Entry:

A new Journal Entry is created with the correct transaction:


November 2009 IV.13
Restricted Asset Accounts

Account for monies set aside for a particular purpose by the Finance Council, as in a capital
campaign, or given for a particular purpose by a donor, in a Restricted account. Record monies
designated for a particular purpose by the Finance Council in Parish Council Restricted accounts
(account range #1200 #1285); record donor restricted contributions in Donor Restricted
accounts (account range #1300 - #1380). Monies so restricted are available only for the original
expressed purpose, unless the Finance Council/donor specifically agrees to a change.

Number of Restricted Accounts

A parish/school could use a separate restricted account for each separate restriction; however, the
Diocese suggests minimizing the number of restricted accounts and keeping a separate Excel
spreadsheet to track activity for each separate restriction. The Diocese also does not recommend
that parishes/schools open individual bank accounts for restricted asset accounts.

Restricted versus Funds Held for Others

Using a restricted account as opposed to a Funds Held for Others (FHFO) account allows the
cash collected and disbursed for the restricted projects to run through the income statement in the
year the cash transaction occurs. Income and expense for each project can be tracked using the
three-digit program numbers available in the Chart of Accounts.


November 2009 IV.14
Investment Gains and Losses

In accordance with Generally Accepted Accounting Principles (GAAP), realized and unrealized
gains and losses on investments need to be recorded. A realized gain/loss is the difference
between the market value price of an investment and its recorded cost on the day it is sold.
An unrealized gain/loss is the difference between the market value price of an investment and its
recorded cost on a given date, but the asset is still owned.

Example December 31, 2009

Market Value of Investment $ 98,000
Cost (recorded) Value of Investment $100,000
Unrealized Loss $ (2,000)

Most parishes/schools receive investment statements monthly or quarterly with market values
listed. When these statements are received, make an entry to record any unrealized gains or
losses (realized gains/losses are normally recorded when investments are sold and monies are
received).

Recording Unrealized Gains/Losses

Record all unrealized gains/losses using an Investment Market Adjustment account, such as
account 1376 (for Donor Restricted investments). If investments are Parish Council Restricted
(1200 series) or Unrestricted (1100 series), utilize an unused investment account in the
appropriate series and rename the account Investment Market Adjustment.

Given the example above, the unrealized loss would be recorded as follows:

Debit Capital Gain/Loss $2,000
Credit Investment Market Adjustment $2,000

In the Statement of Financial Position, the Investment Market Adjustment account would be
positioned preferably underneath the related investment account and represents the cumulative
net effect of all unrealized gains and losses for the related investment(s). To determine the
present market value of the investment(s), simply add the Investment Market Adjustment
balance to the related investment balance.

Given the example above, the market value of the investment account as of December 31, 2009,
on the Statement of Financial Position would be as follows:

Investments $100,000
Investment Market Adjustment $ (2,000)
Market Value 12/31/09 $ 98,000


November 2009 IV.15
After the first recording of unrealized gains or losses, only the net change in unrealized
gains/losses is recorded in subsequent months/quarters. This is done to avoid double counting the
unrealized gains and losses.

Given the example on the previous page, assume that as of January 31, 2010, the market value of
the investment was $103,000, reflecting an unrealized gain on the investment of $3,000 above
the recorded cost of $100,000.

The Net Change in Unrealized Gain/Loss is calculated as follows:

January 2010 Gain $3,000
Less: December 2009 (Loss) ($2,000)
Net Change $5,000

The Net Change entry for January would be as follows:

Debit Investment Market Adjustment $5,000
Credit Capital Gain/Loss $5,000

The Statement of Financial Position as of January 31, 2010, would show the following for the
investment:

Investments $100,000
Investment Market Adjustment $3,000
Market Value 1/31/2010 $103,000


November 2009 IV.16
Tuition and Fees

Pre-Paid Tuition/Fees

Tuition and Fees are often paid in advance, prior to students beginning classes. When funds are
received in advance, record them in a Pre-paid Tuition or Pre-Paid Registration Fees account
(similar to a deferred revenue account). These pre-paid accounts represent liabilities of the
school; monies have been received, but services (classes) have not been provided. As services
are provided, reverse the liability and then recognize the income.

Tuition Receivables

At the point tuition is due for a students education and the tuition has not been paid, the amount
owed should be set up in a Tuition Receivable account. As with any receivable, it must be
managed.

Each month, send statements and review balances. It is helpful to review the aging of the
tuition receivables, that is, a breakdown of all tuition receivables by how long they have been a
receivable30 days, 60 days, 90 days, and greater than 90 days. This report is available through
your tuition software module. Receivables greater than 90 days old, should receive special
attention. Develop and implement an action plan for these older receivables.

Inevitably, a tuition receivable may become uncollectable and should be removed from the
books. At the point the parish/school staff feels this is necessary, prepare and review
documentation with the Finance Council for their approval before writing off the receivable.


November 2009 IV.17
Funds Held for Others (FHFO)

In general, Funds Held for Others (FHFO) should be used for projects or groups within the
parish/school or for associated organizations such as Altar and Rosary Society. FHFO are used to
record the temporary safekeeping of funds raised for special projects/activities. An example of this
would be money collected for a field trip by a parish youth group. Monies held in FHFO accounts
represent liabilities of the parish/school.

FHFO versus Restricted Accounts

Monies designated by a parish/school Finance Council for a specific purpose, e.g., a long-term
building project, a debt retirement campaign, or restricted contribution by a donor, would not be
accounted for in a FHFO account, but rather in a Parish Council Restricted account (#1200
#1285) or Donor Restricted account (#1300 - #1380).

Tracking Income and Expenses with a FHFO Account

Auxiliary groups using a FHFO account can track their income and expense by using program
134 from the Chart of Accounts. Typical entries for auxiliary groups wanting to do this follow:

Monies Received:
Debit: Cash/Investment
Credit: FHFO

Monies Spent:
Debit: Expense (or Fixed Asset)
Credit: Cash/Investment

Item Received:
Debit: FHFO
Credit: Income

Tracking Income and Expenses without a FHFO Account

Entries for auxiliary groups can be simplified by not using a FHFO account. When the auxiliary
groups assets are originally added to the parishs/schools books, use the Fund Balance account
instead of FHFO (If the FHFO has already been set up, debit FHFO and credit Fund Balance.).
Subsequent entries would record cash receipts and disbursements to the appropriate income and
expense accounts using program 134 to segregate the auxiliary groups activities or to a
Statement of Financial Position account.

Frequency of Recording

Record all FHFO transactions at least monthly. If there is a related auxiliary bank account,
coordination may be necessary to receive the bank reconciliation and financial information
before closing the parish/school books for the month.


April 2010 IV.18
Capitalization & Fixed Assets
In addition to accounting for cash receipts and cash disbursements, a parish or school must
account for the fixed assets used in its operations. Fixed assets, sometimes referred to as long-
term assets, capital assets, or buildings and equipment, represent assets that are generally held for
several accounting periods. Examples of such assets include land, land improvements, building
and related improvements, equipment, furniture, fixtures, vehicles, etc.
Proper accounting requires capitalization of items purchased that are expected to have an
estimated useful life of greater than one year and have a significant value. The Finance Council
should establish a dollar threshold for the capitalization of fixed assets. The amount to be
capitalized should be the total cost to acquire the asset.
For example, the Diocese of Des Moines has a capitalization policy whereby any
improvement or purchase that meets the definition of a Capital Asset (see: Accounting
Procedures for Capital Assets) and is $1,000 or more is capitalized.
While it may be customary to insure fixed assets at replacement value, insurance value
appreciation should not be recorded for fixed assets.
Fixed Asset Records: Every parish and school must maintain permanent records of all fixed
assets. Each asset record should detail the following information:
asset description
serial number
purchase date
vendor or party purchased from
purchase price (cost only)
physical location
person responsible for asset
general ledger account charges
disposal date, when applicable
A fixed asset purchase requiring several disbursements to fully satisfy obligation need only be
documented on one asset record. Examples of this include separate invoices for computers and
software or a construction project. Refer to Parish & School Resource Manual: General Ledger:
Fixed Assets
Capitalizing vs. Expensing: It can be difficult to decide when to capitalize and when to expense
the cost of improvements to an existing asset. In general, if an expenditure improves the
efficiency, or materially extends the useful life of an asset, it should be capitalized. Refer to
Accounting Procedures For Capital Assets: Capitalization of Costs Subsequent to Asset
Acquisition

April 2010 IV.18.a
New Construction: For purchases whereby the fixed asset is built, during the projects in-
construction phase, a new fixed asset account is set up called Construction in Progress. All
expenses tied to the construction of the fixed asset that should be capitalized are recorded in the
new fixed asset account Construction in Progress. When the construction and contract are
complete, the amount recorded in Construction in Progress is moved to the fixed asset account
for the building. At this time, the new building or improvement begins to be depreciated.
Accounting Procedures for Capital Assets
This accounting policy explains the requirements for recording capital assets.

A. Definition of a Capital Asset
An asset is defined as a capital asset (buildings, equipment, etc.) if it meets the following
criteria:

The asset is tangible in nature, complete in itself, and is not a component of
another item.
The asset is used in the operation of the Dioceses activities.
The asset has a useful life of two years or more and provides benefit
throughout that period.
The individual asset is of significant value that is; it has a unit cost of
$1,000.00 or more.

A capital account number (Asset account) should be used for items that have a unit cost of less than
$1,000 if:
The item is an ancillary cost, such as freight, installation or other costs
incurred to acquire a capital item and prepare it for use.
The item will be used with and become an essential part of a group, system or
configuration with a total value of $1,000 or more.

Note: This situation applies only to the initial acquisition of the system - generally all the
components are purchased within the same fiscal year.

B. Useful Lives and Depreciation
The facts and circumstances of the Assets use should determine useful lives. The
following useful lives of capital assets are presented as a general guide:

Type of Capital Assets Useful Life
Land not depreciated
Land Improvements 10 years
Buildings 40 years
Fixed Equipment 20 years
Major Movable Equipment 15 years
Office Equipment 5 years
Vehicles 5 years
IT Equipment 3 years

April 2010 IV.18.b
C. Depreciation
Depreciation expense must be calculated for all capital assets. The straight-line
depreciation method is to be used (an equal amount of the capital assets acquisition cost
is expensed each year of its useful life). The salvage value of all assets should be set at
zero.
The term Accumulated Depreciation is used to indicate the total depreciation expense
that has accumulated from the time of acquisition to the present time.

Depreciation will begin in the month a new asset is placed in service. The depreciation
claimed in the final year will be based on the month of disposal. Building components
may be depreciated separately with appropriate useful lives.

D. Fully Depreciated Assets
Assets that are still in use but have been fully depreciated will be reflected on capital
asset records at historical cost and assigned a net book value of zero to indicate the asset
is still in use beyond its depreciable life. Assets must not be taken off the capital asset
listing until disposal.

Guidelines of Capital Asset Valuation

The following guidelines are to be used to determine whether a particular valuation should be
expensed or added to the capital asset records during the closeout of routine repair and
maintenance accounts, special repair and maintenance projects, leasehold improvements, the
purchase of land, equipment, or software.

Land Valuations: The cost of land acquired should include:
The purchase price
Closing costs, such as title search costs, legal fees, and recording fees
Costs incurred in getting the land in condition for its intended use, such as grading,
filling, draining, clearing, and surveying
Demolition costs
Assumption of any liens or mortgages or encumbrances
Judgments levied through damage suits
Any additional land improvements that have an indefinite life.

Land Improvements: The cost of land improvements should include:
Culverts, fencing, flag poles, parking lots, roadways, sewer, water and electric lines,
yard lighting, paving (roadways, walks, parking), shrubs, lawns, and trees.
Any additional land improvements that have a finite life.

Buildings and Infrastructure: The cost of buildings and infrastructure should include all
expenditures related directly to their acquisition and construction. These costs include:
Materials, labor (including design and supervision), overhead, and costs incurred
during construction
Legal and architectural fees
Building permits
Insurance premiums during the construction phase

April 2010 IV.18.c
Materials and services furnished by other State Agencies
Interest costs incurred during the construction of proprietary fund buildings and
infrastructure

Machinery and Equipment: This includes delivery equipment, office equipment, machinery,
furniture and fixtures, and furnishings that exceed $1,000/unit. Costs that should be capitalized
include:
Purchase price
Freight and handling charges
Insurance while in transit
Assembling and installation costs

Capitalization of Costs Subsequent to Asset Acquisition
In general, if an expenditure improves the efficiency, or materially extends the useful life of an
asset, it should be capitalized. There are four categories of expenditures that may be incurred for
an asset subsequent to its acquisition. These expenditures are additions, improvements and
replacements, re-installations and rearrangements, and repairs.

1. AdditionsExtensions, enlargement, or expansions made to an existing asset.
Additions should present no major accounting problems. By definition, any addition
to a capital asset is capitalized because a new asset has been created. If the addition
is an item that could stand alone, i.e., a new building wing, it is a separate asset, and
a separate asset and depreciation records should be maintained.

Examples of additions are as follows (coding of these transactions should
be based on the work done):
An elevator or dumbwaiter
Fire alarm system
Security windows
Surveillance equipment
Sprinkler system, Internal
Acoustical treatment

2. Improvements and Replacements. The distinguishing feature between an
improvement and a replacement is that an improvement is the substitution of a
better asset-having superior performance capabilities (e.g., a concrete floor for a
wooden floor) for the one currently used, whereas a replacement is the substitution
of a similar asset (a wooden floor for a wooden floor). In both of these instances
organizations should determine whether the expenditure increases the future service
potential of the capital assets, or merely maintains the existing level of service.
When the determination is made that the future level has been increased, the new
cost is capitalized. If the cost is to be capitalized, the carrying amount of the old
assets and associated accumulated depreciation, if applicable, should be removed, if
the amount is known. If the original cost and accumulated depreciation are not
known, capitalize the additional cost.


April 2010 IV.18.d
3. Reinstallations and Rearrangements. Expenditures made to provide greater
efficiency or reduce costs. If benefits from the reinstallation or rearrangement
extend into future accounting periods, the expenditure should be capitalized. If the
expenditure has no measurable future benefit, it should be treated as a current
period expenditure. These are costs that will benefit future periods but do not
represent additions, replacements or improvements. If the original installation cost
can be estimated, along with the accumulated depreciation to date, the cost may be
handled as a replacement and the procedures in paragraph 2 above should be
followed. Where the original cost is not known, the reinstallation or rearrangement
cost should be capitalized.

4. Repairs (Ordinary and Major). Repairs maintain the capital asset in its original
condition. Ordinary repairs are expenditures that keep the asset in a state of good
repair. Preventive maintenance, normal periodic repairs, replacement of parts,
structural components, and other activities needed to maintain the asset so that it
continues to provide normal service should not be capitalized but rather charged to
an expense account. Ordinary repairs should not be capitalized. Major repairs are
relatively large expenditures that benefit more than one operating cycle or period. If
a major repair, e.g., an overhaul, occurs that benefits several periods and/or extends
the useful life of the asset then the cost of the repair should be handled as an
addition, improvement, or replacement depending upon the type of repair made.

Examples of repair activities are as follows:
Roof and/or flashing repairs
Window repairs and glass replacement
Tuckpointing
Painting
Masonry repairs
Floor repairs.


April 2010 IV.19
Depreciation of Fixed Assets

Depreciation: Is the process of allocating the cost of an asset to expense over a number of
periods. In other words, depreciation recognizes the reduction in the value of an asset due to
wear, technological outdating, the passage of time etc.

Straight-Line Depreciation: A fixed amount of depreciation is expensed each month over the
estimated service life of the asset. The amount is calculated as follows:

Depreciation Expense Cost 1
per Month Estimated Service Life 12 Months
x =

Example: St. X Church expands their Parish Hall during fiscal year 2009. They start the project
in August 2008 and finish in April 2009. They estimate the life of service for the addition to be
20 years. The addition cost the church $125,000.

Depreciation begins when the construction is complete. St. X Church calculates the
depreciation expense as follows:

Depreciation Exp $125,000 1 $520.83 of Exp
Per Month 20 Years 12 Months per month
x = =

Beginning in April 2009, St X Church sets up the following memorized transaction to record
monthly:

Acct No. Acct. Desc Debit Credit Comment
101-800010 Depreciation - Building 520.83 2009 Addition Depr.
1610 Accum. Depr - Hall 520.83 2009 Addition Depr.

This entry will not change until the asset has been fully depreciated.


April 2010 IV.19.a
Sample Church
For Year Ended June 30, 2009
Capital Assets

Acct
No. Item
7/1/08
Balance
Additions
in FY09 Total
Put into
service
(by FY)
Useful
Life
End
of Life
Accum
Depr
Bal
7/1/08
Previous
YR's Depr.
Depr
Exp.
for
FY09
Accum
Depr as of
June 30,
2009
1500 Land $191,688 $0 $191,688

1505 Buildings $6,210,000 $0 $6,210,000 1940 40 1980 $0 $6,210,000 $0 $6,210,000
New Roof $0 $75,000 $75,000 2009 20 2029 $0 $3,750 $3,750
Balance $6,285,000 $6,213,750
<1505> <1600>

1510 Shed $30,000 $0 $30,000 2004 15 2019 $0 $12,000 $2,000 $14,000
Balance $30,000 $14,000
<1510> <1625>

1555
Audio Visual
system 7,820.00

10,000.00 17,820.00 2008 5 2013 $0 $1,564 $3,564 $5,128

Hall Projector -

3,289.00 3,289.00 2009 5 2014 $0 $0 $658 $658
Balance $21,109 <Total Depreciation Exp. FY 09> $9,972 $5,786
<1555> <1650>


April 2010 IV.19.b
Sample Church
Depreciation Journal Entries

Acct. No Description Debit Credit Notes
1505 Buildings $75,000 Payment of New Roof
1000 Checking - Operation $75,000 Payment of New Roof

1555 Equipment $10,000 Payment for Audio Visual System
1000 Checking - Operation $10,000 Payment for Audio Visual System

1555 Equipment $3,289 Payment for Hall Projector
1000 Checking - Operation $3,289 Payment for Hall Projector

3000 Unrestricted Fund Balance $6,210,000 Previous Yr.'s Depreciation - Church
1600 Accum Depr - Bldgs - Church $6,210,000 Previous Yr.'s Depreciation - Church

3000 Unrestricted Fund Balance $12,000 Previous Yr.'s Depreciation - Shed
1625 Accum Depr - Bldgs - $12,000 Previous Yr.'s Depreciation - Shed

3000 Unrestricted Fund Balance $1,564 Previous Yr's Depreciation - AVS
1650 Accum Depr - Equipment $1,564 Previous Yr's Depreciation - AVS

101800010 Depreciation - Building $3,750 FY09 Depreciation Exp Roof
1600 Accum Depr - Bldgs - Church $3,750 FY09 Depreciation Exp Roof

101800010 Depreciation - Building $2,000 FY09 Depreciation Exp Shed
1625 Accum Depr - Bldgs - $2,000 FY09 Depreciation Exp Shed

101800030
Depreciation - Furn &
Equipment $3,564 FY09 Depreciation Exp AVS
1650 Accum Depr - Equipment $3,564 FY09 Depreciation Exp AVS

101800030
Depreciation - Furn &
Equipment $658 FY09 Depreciation Exp Projector
1650 Accum Depr - Equipment $658 FY09 Depreciation Exp Projector


April 2010 IV.19.c
The following shows the Financial Statements for Sample Church as of June 30, 2009:

Statement of Financial Position - Sample Church
June, 2009 - All Funds

Balance as of Balance as of Current Yr
6/30/2009 6/30/2008 Change
Assets:

Fixed Assets
1500 Land 191,688.00 191,688.00 0.00
1505 Buildings - Church 6,285,000.00 6,210,000.00 75,000.00
1510 Buildings - Shed 30,000.00 30,000.00 0.00
1555 Equipment 21,109.00 7,820.00 13,289.00

Fixed Assets 6,527,797.00 6,439,508.00 88,289.00

Accumulated
Depreciation

1600 Accum Depr -
Bldgs - Church

(6,213,750.00) -

(6,213,750.00)
1625 Accum Depr -
Bldgs - (14,000.00) -

(14,000.00)
1650 Accum Depr -
Equipment

(5,786.00) -

(5,786.00)

Accumulated
Depreciation (6,233,536.00) -

(6,233,536.00)

Statement of Activities - Sample Church
June, 2009 - All Funds

Year
Date
Actual
Year
to Date
YTD Less
YTD Last
Year
Expense:

Parish

114800010 Depr - Building 5,750.00 0.00 5,750.00
114800030 Depr - Furn & Equipment 4,222.00 0.00
4,222.00

Total Depreciation 9,972.00 0.00 9,972.00

Sample Church could not find
the original cost of the Church
from 1940. Therefore they
used the replacement cost
calculated by Catholic Mutual
Group.
New Roof added to #1505
New Hall projector added
and Audio Visual System.
The accumulated
depreciation for the Church
includes the fully
depreciated building and
one year's worth of
depreciation on the roof.
Depreciation on the Shed
includes $12,000 from
previous years, and $2,000
of expense for FY 09.
Equipment Depreciation
includes $1,564 from
previous years, and
$4,222 of expense for
FY 09
Depr. Furn &
Equipment includes one
year of depreciation for
the Audio Visual
System, and one year for
the projector.
Depr. Building Expense
includes one year of
depreciation on the roof
and one year of
depreciation for the
shed.


November 2009 IV.20
FIXED ASSET LEDGER RECORD
Fixed Asset No. ____________
Item: G/L Account:
Description: Purchase Date:

MFG. Serial No:
Where Located:
Person Responsible:
Vendor:
Estimated Life:

Asset Record
Date Explanation
DR CR Balance
Comments

Final Disposition of Asset:


November 2009 IV.21
Net Assets

When the End of Year process is run at the end of the fiscal year in ParishSOFT (CMS) Ledger
and Payables, an automatic entry is made to the net asset accounts. The total expense is
subtracted from the total income for the fiscal year for each fund and that number is posted to a
corresponding net asset account.

Note: Each fund is closed to a different net asset account.

Please see the Statement of Financial Position Account Explanation in the Financial Statements
and Accounts chapter for more information.

Below is a list of the six different funds and their corresponding net asset account.

Parish (Fund 1) Unrestricted Fund Balance (3000)

School (Fund 2) School Fund Balance (3020)

Catechesis (Fund 3) Catechesis Fund Balance (3025)

Foundation Parish (Fund 4) Parish Foundation Fund Balance (3030)

Foundation School (Fund 5) School Foundation Fund Balance (3035)

Cemetery (Fund 6) Cemetery Fund Balance (3040)


November 2009 IV.22
During the End of Year Process in Ledger and Payables, the system asks the user which net asset
account each fund should be closed to. Below is the screen as it appears in ParishSOFT (CMS).

Example

St. X is a new parish on July 1, 2008, (beginning of fiscal year 2009).
One of the first journal entries St. X Parish makes when they open is to record their fixed assets.
They do this by:

Debiting the fixed asset account
Crediting a net asset account (in this case, 3000 Unrestricted Fund Balance)

St. X Parish has a total of $2,700,295.00 in fixed assets. After this journal entry is made, the
balance in account 3000 - Unrestricted Fund Balance is $2,700,295.00 for the rest of fiscal year
2009.

The next page shows the Statement of Activities for St. X Parish after one fiscal year of
operations.


November 2009 IV.23
Statement of Activities - St. X Church
June 2009 Fund 1

Income:

Year to Date
Actual

Parish Administration
101400001 Collection - Sunday Envelope 63,630.01
101400002 Collection - Christmas 4,822.00
101400003 Collection - Easter 4,306.00
101400004 Collection - Holy Days 1,074.00
101410008 Undesignated Donations 1,869.00
101410009 Votive Stand 135.49
101420006 Designated Donations 111,711.43
101420009 Mass Stipends 830.00
Total Income 188,377.93
Expense:

Parish Administration
101501001 Priests 13,360.00
101501002 Pastoral Associate 0.00
101501003 Priests - Extra Services 300.00
101503001 Secretary 5,258.00
101510010 Health Insurance 0.00
101510015 Dental Insurance 102.00
101700040 Other Expenses 871.02
101700050 Postage 42.00
101700060 Printing 91.20
101700065 Copier 40.00
101750030 Technology-Software 1,753.25
101750035 Technology-Services 769.29
101900030 Bank Charges 48.38
Total Expense 22,635.14

Income - Expense 165,742.79

The $165,742.79 is the excess income over expense (a net income) for fiscal year 2009. When
the bookkeeper at St. X parish goes through the end of the year process in ParishSOFT (CMS)
Ledger and Payables at the end of fiscal year, this amount will be automatically added to the Net
Asset account 3000 (Unrestricted Fund Balance).

Please see the Statement of Financial Position in this chapter for more information.


November 2009 IV.24
In the next fiscal year (fiscal year 2010), St. X parish has ($120,548.12) excess expense over
income (a net loss). The ($120,548.12) will be automatically subtracted from the Net Asset
account 3000 (Unrestricted Fund Balance). When St. X Parish starts fiscal year 2011, the balance
in the net asset account 3000 (Unrestricted Fund Balance) will be:

$2,700,295.00 + $165,742.79 - $120,548.12 = $2,745,489.67

Net Asset accounts are essentially the carry over from year to year of either the net income or net
loss of the parish/school for previous fiscal years.

Current Period Changes

Since the journal entry to move the net income (income expense) to fund balance is only done
annually, Current Period Changes shows the total net income year to date.

Temporarily Restricted

The Statement of Dedicated accounts lists all second collections and special parish collections.
Because the money collected in these accounts does not belong to parish (it is owed to someone
else), it is listed on the Statement of Financial Position as a Net Asset labeled Temporarily
Restricted.

Continued Example:
In October 2009 St. X Parish shows a year-to-date net income (Income Expense) of
$21,450.00 per the Statement of Activities. This means that from July October St. X
parish has a net income of $21,450.00. St. X Parish also has a total of $1,336.58 in
dedicated accounts that have not been remitted.

Please see the Statement of Financial Position document in the Financial Statements and
Accounts chapter for more information.

Fixed Assets
added at
beginning of
operations.
Excess of income
over expenses
(net income) for
fiscal year 2009.
Excess of expense
over income (net
loss) for fiscal
year 2010.
Account 3000
Unrestricted Fund
balance on July 1,
2010 (Fiscal year
2011.)

November 2009 IV.25

St. X Parish
Statement of Financial Position
October 2009 - All Funds
Assets
Balance as of
10/31/2009
Cash and Investment - Unrestricted
1000 Checking - Bankers Trust 35,306.91
1090 Petty Cash 62.48
1100 Certificate of Deposit 145,421.90
180,791.30
Donor Restricted Cash
1310 BTC Checking Donor Restricted 7,909.08
Fixed Assets
1505 Buildings - Church 2,135,000.00
1515 Buildings - Hall 561,000.00
1555 Equipment 4,295.00
2,700,295.00

Total Assets
2,888,995.37
Liabilities
Payroll Liabilities
2000 FICA W/H Payable 0.00
2005 Federal W/H Payable 0.00
2010 State W/H Payable 171.00
2030 Retirement W/H Payable 0.00
Total Liabilities
171.00
Net Assets
Fund Balance
3000 Unrestricted Fund Balance 2,866,037.79
3025 Catechesis Fund Balance 0.00
2,866,037.79
Designated Gifts
Temporarily Restricted 1,336.58
Total for Designated Gifts 1,336.58

Current Period Changes 21,450.00
Total Net Asset
2,888,824.37

Total Liabilities and Net Assets 2,888,995.37
During the year-end process
on June 30, 2009, $165,742.79
was added to Unrestricted
Fund Balance (3000).
Because St. X Parish opened
in fiscal year 2009, this
account previously had a
balance of $2,700,295.00
which is the total of St. X
Parishs fixed assets. The
ending balance is now
$2,700,295.00 + $165,742.79
= 2,866,037.79.
$1.336.58 of funds that are
currently recorded in a
dedicated account have not
been remitted.
$21,450.00 year-to-date net
income St. X Parish has
generated shows on the
Statement of Financial
Position as current period
changes.

November 2009 IV.26
Suggested Activity Checklist
Weekly Tasks:
Enter Deposits.
o Enter tithing records into ParishSOFT Offering and Pledges.
o Synchronize Offering and Pledge to ParishSOFT (CMS) Ledger and Payables.
o Enter any non-donation deposits directly into ParishSOFT (CMS) Ledger and Payables).
o Reconcile ParishSOFT Offering and Pledges to deposit slips.
Pay Outstanding Invoices it is recommended this is done on the same day every week
Back up ParishSOFT Modules (at least weekly if not daily).
Monthly Tasks
Pay Monthly Utility Bills.
o Gas
o Water
o Electricity
o Internet
o Phone
Pay School Assessment(s) if applicable.
Pay Federal Taxes (Paid either monthly or biweekly depending on Parish/School).
Pay State Taxes (Paid either monthly or quarterly).
Pay LaMair-Mulock-Condon for Employee Insurance.
Pay Payroll (One, possibly two or three payrolls during month).
Pay Christian Brothers for 403b withholding/matching if applicable pay at the same
time Payroll is paid which may be more frequently than monthly.
Reconcile Bank and make necessary entries. Have pastor or his designee review.
Remit any Second Collection that has taken place during the month to the Diocese with
matching transmittal form. <See: Diocesan website for transmittal forms>
Synchronize ParishSOFT Family Directory to AIM.
Reconcile Investment Statements and make necessary entries.
Quarterly:
File Transfer Protocol (FTP) Ledger and Payables and Payroll modules to Diocese.
Reconcile Investment Statements and make necessary entries.
Pay State Taxes (Paid either monthly or quarterly).
File Federal Tax Form 941.
Annually:
Prepare and file IRS Tax Form W-3 with a W-2 for each Employee.
Prepare and file IRS Tax Form 1099 for all required vendors

November 2009 V
V. Special Revenue Information
Page
A. Annual Diocesan Appeal V.1
B. Gambling Activities V.3

Purpose Statement: Fundraising activities provide a means for all Diocesan entities to fulfill
our overall mission of making Jesus Christ known and loved in our time. Fundraising for the
Diocese includes the Annual Diocesan Appeal. This section includes information on the
components of the appeal formula. Many parishes and schools use raffles or bingo as fundraising
activities. Federal and state requirements relative to those areas are included in this section.

Diocese of Des Moines Chapter V: Special Revenue Information

November 2009 V.1
Calculation of the Annual Diocesan Appeal Goal

The Annual Diocesan Appeal goal formula is overseen by the Diocesan Finance Council who
makes recommendations to the Bishop on its structure. These steps are followed each year to
derive each parishs goal for this important fundraiser.

Step 1 Calculating the Current Year Assessable Income for Each Parish

The process of determining the Annual Diocesan Appeal goal for each parish begins with a
calculation of each parish's "assessable income."

The formula for assessable income is:

100% Primary Income + 75% Auxiliary Income 75% Deductible Expenses = Assessable
Income

Primary Income: consists of all general ledger income account numbers in the 4000
series in Fund 1 (for example, Sunday Envelope 101-400001). Primary income
includes:
o the weekend collection
o holy day collections
o ADA refunds from the Diocese
Primary Income is reduced by interest and debt payments on authorized building loans.

Auxiliary Income consists of all general ledger income account numbers in the 41000
series in Fund 1 (for example rental income 101-410007). Auxiliary income includes:
o Fundraising Income
o Interest Earnings
o Offerings
o Donations
o Rental Income
o Votive Stand Income
o Nursery Fees
o Non-Restricted Investments Capital Gain
o Literature Sales

ADA Exempt Income is not included in the formula. This income consists of all
general ledger income account numbers in the 42000 series in Fund 1 (for example,
designated donations 101-420006). ADA Exempt income category includes:
o Bequests
o Building Fund
o Capital Campaign
o Designated Donations
o Restricted Investment Gains
o Mass Stipends


November 2009 V.2
Deductible Expenses include costs related to the auxiliary income. These include:
o Net Expenses to Operate a School
o School Assessments
o Religious Education Expenses
o Youth Ministry Expenses

Step 2 Calculating the Three-Year Average Income and Diocesan Total

After the assessable income figure has been calculated for the parish, this figure is added to the
assessable income amounts for the previous two years to generate a three-year average.

The average income for each parish is then added together to derive the total assessable income
of the Diocesan parishes.

Step 3 Calculating the Assessment Rate for the Year
The assessment rate for the year is calculated by dividing the Annual Diocesan Appeal Goal by
the grand total of the average assessable income for all parishes.

Step 4 Calculating the Parish Goal
An individual parish's goal is calculated by applying the assessment rate to their three-year
average income.

For instance, if the overall ADA goal is $3,000,000 and the assessable income for all parishes is
$12,000,000, the assessment rate is 25%. If an individual parish had a three-year average income
of $120,000, their goal for the campaign is $30,000.


June 2010 V.3
Gambling Activities

The Iowa Department of Inspection and Appeals requires that all Parishes/schools that
have bingo/raffles, or other gambling activities, apply for a gambling license. This
application needs to be filled out and submitted before the bingo/raffle begins. When
submitting the application, attach a copy of the IRS letter which indicates that the
parish/school is considered a non-profit organization. A gambling license application
can be found at http://www.dia.iowa.gov/page5.html.

The revenues brought in from bingo or raffles are subject to sales tax. As of July 1, 2009,
the Iowa Department of Inspection and Appeals no longer requires quarterly gambling
reports. An annual report will need to be filed at the end of the fiscal year (June 30) to
report all gambling activities for that year. As of October 2009, this annual report has not
been created. The form will be available sometime between October 2009 and May
2010.

The parish/school will also need to obtain a sales tax permit before the gambling
activity begins. Go to https://www.idr.iowa.gov/CBA/start.asp to apply.

Raffles / Bingo

Winner Withholding Tax
If a raffle winner wins more than $600, but less than $5,000, and at least 300 times the
amount of the wager or ticket, or if a bingo winner wins at least $1200 or more, the following is
necessary:

1. Obtain all of the ID information for federal form W-2G and present the winner with
his/her copies of the form when the prize winnings are distributed.
2. File the appropriate remaining copies with a 1096 transmittal at calendar year end.
3. If the winner does not supply complete ID information for the W-2G, withhold 31% from
the prize money and file a federal form 945.
4. The State requires 5% to be withheld, even for out-of-state winners. This withholding
should be deposited with employee withholdings and a Verified Summary of Payments
(VSP) (filed electronically through e-file and pay) report filed with the State at year end.

If the raffle winnings are more than $5,000:

a. Withhold 28% from the winnings for federal withholding.
b. Obtain ID information and file federal form W-2G. Give copies of the W-2G to the
winner when the prize winnings are distributed.
c. File federal form 945 at calendar year end.
d. Withhold 5% as required by the state, even for out-of-state winners. Deposit this
withholding with employee withholdings and a Verified Summary of Payments (VSP)
report filed with the State at year end. File and pay these withholdings electronically.


February 2010 V.4
Do not withhold or file, if the winnings are less than $600 or between $600 and $5,000 but
NOT 300 times the amount of the wager.

Note: The winnings are calculated as the amount won minus the amount wagered.

<See: http://www.irs.gov/pub/irs-pdf/p3079.pdf Publication 3079 Gaming Publication for
Tax Exempt Organizations>
<See: http://itrl.idr.iowa.gov/ and click on Withholding Tax, Rules and Regulations,
Chapter 46 Withholding, Section e for current information on State withholding>

Car Raffle
If the parish/school decides to raffle off a car, there are additional items to consider:
Will the Parish/school pay the registration fee/taxes for the winner or will the winner
be expected to pay?
What if the winner decides not to accept the car?
Will a cash option be offered in case the winner wants cash instead of the car?
Taxes on a car raffle: It is still necessary to withhold money for the winner of a car.
25% of the value of the car needs to be withheld for the federal government and 5% for
the state government. Since it is not possible to withhold money on a car, either the
parish/school or the winner will need to pay the 25% and 5% for the federal and state
taxes.
Revenue
The gross sales for bingo and raffles are subject to state sales tax. Sales tax is remitted online
through the Iowa Department of Revenue e-file and pay. The sales tax return is also electronic
and submitted with the tax payment. The frequency and due date of sales tax depends on how
much sales tax is due. See below for the current (as of October 2009) filing frequencies and due
dates:
<See: Resource Manual: Ledger and Payables: Sales/Use Taxes>

Contests:
For contests where participants do not pay any money to play, a federal W-9 form and a 1099-
MISC form must be completed for all winners (non-employees) of prizes valued at greater than
or equaled to $600. If the winner does not complete a W-9, withhold 28% of the winnings and
file a Form 945.

The State requires that 5% be withheld on all such winnings greater than $600. State
withholdings would be deposited with regular employee withholding deposits and recorded on
the Verified Summary of Payments (VSP) report at year end (filed electronically through Iowa
Department of Revenue e-file and pay).

November 2009 VI
VI. Reports Page

A. Finance Council VI.1
B. Diocese of Des Moines VI.2
1. Process to Transmit CMS Data to Diocese /Quarterly
Schedule for Data File Transfer Protocol (FTP) VI.2
2. How to Close a Month VI.3
3. How to Close a Year VI.4
4. Annual Financial Report VI.15
5. Transfer Adjustment to Current Fiscal Year in CMS VI.16
6. Sacramental Registry Reports VI.17
7. Manage Staff List / Positions (ParishSOFT) VI.40
8. ParishSOFT Staff Management Website VI.41
9. Kenedy Reports (Official Catholic Directory) VI.53
C. Parishioners, Parents, Guardians, and Patrons VI.55
1. End of Year Contribution Statements VI.55
2. Annual Report/Budget VI.56

Purpose Statement: This section of the Resource Manual references various reports (required
as well as suggested) that parishes/schools should present to various interested parties and
groups.

Section A relates to reports of interest to the parish/school Finance Council.
Section B relates to reports of interest to the Diocese of Des Moines offices.
Section C relates to reports of interest to parish and school families and supportive patrons.
Diocese of Des Moines Chapter VI: Reports

November 2009 VI.1
Reporting to the Finance Council

How often should the Finance Council receive financial statements?

Present the Finance Council with the financial statements (Statement of Financial Position and
Statement of Activities) monthly or at minimum quarterly. This keeps the Finance Council
apprised of the financial position of the parish.

How should the financial statements be formatted?

The Statement of Activities should include a column for each of the following:
o Current Month Actual
o Year To Date (YTD) Actual
o Last Year To Date Actual
o Annual Budget

The Statement of Financial Position should include the following columns:
o Balance as of (month-end date)
o Balance as of the previous year end
o YTD change

Who should provide the financial statements to the Finance Council?

The bookkeeper and/or business manager should present the financial statements to the Finance
Council.

Should anything else be provided to the Finance Council besides the financial statements?

Provide a list of designated donations the parish/school has received to the Finance
Council. This will keep the council informed about what money has been collected
and for what purpose. This also helps if a parish/school is conducting a special project,
for example remodeling the Parish Hall, and donations are supporting the expense of
this project.

Provide a list of unpaid bills the parish/school needs to pay.

Provide a detailed general ledger report and ask one member to review it for
reasonableness and inquire about items of an unusual nature.


November 2009 VI.2
Process to Transmit ParishSOFT (CMS)
Ledger and Payables/Payroll Data to Diocese

Report parish and School financials to the Diocesan Finance Office once per quarter each fiscal
year. The reporting schedule is listed below. This document also references the steps to follow to
send your electronic financial data to the Diocese.

1
st
Quarter Data (July Sept) Due October 31
st

2
nd
Quarter Data (October December) Due January 31
st

3
rd
Quarter Data (January March) Due April 30
th

4
th
Quarter Data (April June) Due August 31
st

Please do NOT close out the last month in the quarter prior to sending the data via the File
Transfer Protocol (FTP) Process. Please send the data first, using the FTP Process below, then
close out the last month in the quarter.

File
Utilities
Transfer Data to Region
Region Number: 20910
Church Number:
URL: 209.56.238.1
User Name: Church Number
Password: (right click in this field to see characters)
Path: \Church Number

Click on Send!


November 2009 VI.3
End of Month Processing in ParishSOFT (CMS) Ledger and Payables

The following documents reference the process you will follow when completing the End of
Month and End of Year procedures within the CMS software tool. These documents are taken
from the ParishSOFT Ledger and Payables (CMS) User Guide and can be found on the
ParishSOFT website, www.parishsoft.com.

End-of-Month processing posts all transactions dated for the current month to the designated
accounts and vendors. It also closes the month to additional transactions and creates a complete
historical audit trail. In the last month of the fiscal year, run end-of-year instead of end-of-
month.

Before processing the end-of-month, print the Deposit Register, Journal Entry, Check Register,
Bill List, Statement of Activities, Statement of Financial Position, and Dedicated Accounts, and
General Ledger. Verify all of the month's transactions have been entered correctly.

1. From the Process menu, choose End-of-Period, End-of-Month.
2. The Backup Confirmation dialog will display. If you do not have a current backup of
data, click Backup to begin the backup procedures. Refer to Backup for data backup
instructions. If you already have a current backup, click Continue to display the End of
Month dialog.
3. Note the dialog message states which reports you should print before processing End-of-
Month.
4. Click the Finish button to process the End-of-Month. At the Continue? message
dialog, click Yes to process or No to cancel.
5. If any unpaid bills exist for the current month, a Warning message dialog will display.
Click Yes to continue processing or No to cancel.
6. When the End-of-Month process is complete, a Process Complete message dialog will
display.


November 2009 VI.4
End of Year Processing in ParishSOFT (CMS) Ledger and Payables

The following document is available on the ParishSOFT Ledger and Payables Knowledge Base
website. http://www.churchmanagementsolutions.com/kb/KnowledgebaseArticle50100.aspx
This document explains the process for ending the fiscal year in the Ledger and Payable
program, and moving into the next Fiscal Year. This process includes creating an archive copy
of the CMS data for the ended fiscal year.

Ledger and Payables End of Year Checklist

The End of Year processing deletes prior year transaction data, moves new budgets into place, and sets the
beginning balances of all accounts to their proper value for the beginning of the new year.
Ensure that deposits, journal entries, and credit card charges dated in this month and bills that have been paid in this
month are complete and accurate. Those transactions cannot be changed after the month is closed. Bills that have not
been paid are not included in account balances and they can be changed at any time.
Before processing the End of Year, print the Deposit Register, Journal Entry, Check Register, Bill List, Statement of
Activities, Statement of Financial Position, and Dedicated Accounts, and General Ledger. Verify that all of the
month's transactions have been entered correctly.
Since you can continue to enter bills, checks, deposits and journal entries for the following month, you may decide
to reconcile your bank account prior to running end of year to ensure all transactions have been entered correctly.
1. Run the Finance Data Integrity Check.
This process will perform a check of your finance data for possible problems including: missing check records,
mismatched bill and check data, unbalanced journal entries, etc.
From CMS Ledger and Payables, click File | Utilities | Finance Data Integrity | OK to exit Ledger and Payables.
Click Process.

November 2009 VI.5

If the process finds any problems, you will need to correct those issues before completing End of Fiscal Year.
Problems with Missing Bill Items
Problems with Missing Deposit Items
Problems with Missing Journal Entry Items
Problems with Missing Beginning Balance Items
If the process completes without errors, you can continue!


November 2009 VI.6
2. Calculate Balances
From CMS Ledger and Payables, click Process | Calculate Balances | Finish.
This process updates account and vendor balances with all of the transactions entered during the month.

3. Print End of Year Reports
There are several reports you will need to print each month: Deposit Register, Journal Entry, Check Register, Bill
List, Statement of Activities, Statement of Financial Position, and Dedicated Accounts, and General Ledger, as well
as any other reports requested by others in your church. Print the end of Month reports for the last month of your
Fiscal Year.
If you have not yet established the Print Queue for the Month End Reports, click here for instructions to create the
Month End Print Queue.
There are also several reports that should be printed at the End of Year:
Statement of Financial Position for each fund and for all funds.
Statement of Activities for each fund and for all funds.
Statement of Dedicated Accounts for each fund and for all funds.
Click here to find out how funds transfer to Net Assets.
In addition, you may want to print the following optional reports:

November 2009 VI.7
General Ledger for the entire year
Vendor List NOTE: if your fiscal year is not the calendar year, be sure to print this report for the entire
fiscal year and for the calendar year.
Vendor 1099 Forms (if applicable)
Annual Report Statement
Statement of Cash Flow
Monthly Budget/History
Vendor Audit for all or particular vendors
4. Make a backup
Make a backup of your data prior to running the End of Month Process. You may choose to store the End of Month
backup sets in a different location than your daily backups. Click here to find out more information on backing up
in CMS.
5. Archive CMS Fund Accounting Data for the Year
At the end of the fiscal year, financial statements are prepared and the end of year processing is completed to
prepare the system for the new fiscal year. It's not unusual that investment reports and accounting adjustments are
not available until several weeks or months into the new Fiscal Year. If you need to wait for that information before
completing the end of year processing, it is inconvenient or difficult to obtain monthly financial statements for
months in the new year.

Most CMS clients want the ability to review vendor and account transactions in the past year(s) to compare costs,
adjust budgets, prepare 1099 and Payroll W-2 forms, and print other analysis reports.
CMS Fund Accounting solves the situations described above by making a copy of the system in a new folder on
your computer after the normal transaction data has been entered for the current year (deposits, checks, credit card
charges). The copy contains all the transactions for the year.

Adjusting entries based on the final investment reports and accounting decisions can be entered in the copy before
printing the final financial statement.
This process makes a copy of the folder containing the CMS Fund Accounting data and programs (normally
FIN4WIN) and creates a shortcut to access that copy.
It copies all the files for Finance and Payables, Payroll, Fixed Assets, and any other accounting modules. The
Archive copy and the shortcut to access it are normally named FINxxxx where xxxx is the fiscal year you are
ending. Examples are seen below.
Note: An option to change those names is provided within the Archive Fund Accounting Utility.
Click File | Utilities | Archive Fund Acct. | click OK.

November 2009 VI.8

NOTE: Norton AntiVirus software may detect the creation of the archive shortcut with a message "Malicious Script
Detected" and the request "What do you want to do?". Choose "Authorize this script" and click OK to continue.
Do not rename the CMS Fund Accounting shortcut to your new fiscal year. Renaming the CMS Fund Accounting
shortcut may cause failure of the archive function next year. The shortcut "CMS Fund Accounting" will always be
the current fiscal year.
6. Run End of Year
From CMS Ledger and Payables System, click Process | End of Period | End of Fiscal Year.
The system will ask if you've printed the checklist and are ready to proceed. If you have already completed all
steps, click Next.

November 2009 VI.9

The system will perform the Finance Data Integrity Process. Since you ran this previously, it should run through
without errors.

November 2009 VI.10

The system will ask if you have printed all your reports, performed a backup, and completed the Archive process. If
you have already completed these steps, check each box and click Next.

November 2009 VI.11

The system will ask you to assign a Net Asset account for each fund to record the difference between income and
expense. The system will insert the Net Asset account used in prior years. Enter the correct shortcut number and
click Next.

November 2009 VI.12
You can select the appropriate choice for your budget data:
Budget data is not used or available at this time. Set the budget data to zero.
Budget data for XXXX has not been entered. Set the XXXX (next year) budget the same as XXXX (this
year) budget.
Budget data for XXXX (next year) has been entered, make it active and set the XXXX (following year)
budget data the same as the XXXX (next year) budget data.
Budget data for XXXX (next year) has been entered, make it active and set the XXXX (following year)
budget to zero.
Click Next.

The system will now process the End of Fiscal Year. Click Finish.

November 2009 VI.13

Once complete, you must exit CMS Fund Accounting (you do not need to restart the computer).

7. Prepare for Next Year
When you come back into CMS Ledger and Payables, click Process | Calculate Balances | Finish.

November 2009 VI.14

Add and/or Delete Accounts, if applicable.
Enter new budget data, if applicable.
Delete Vendors no longer being used.
Print the Statement of Financial Position for each and for all funds. NOTE: For Asset and Liability
Accounts, verify that beginning balances are the same as the ending balances at the end of the last fiscal
year.
Print the Statement of Activities. NOTE: For Income and Expense Accounts, verify that the account
balances are zero or equal to the transactions entered for the new year, and that the budget numbers are
correct.
Print the Statement of Dedicated Accounts. NOTE: Verify that beginning balances are the same as ending
balances at the end of last fiscal year.
End of Fiscal Year is now complete!


November 2009 VI.15
Annual Financial Report

The fiscal year for all parishes and schools in the Des Moines Diocese is from July 1st to June
30th of the following year. At the end of every fiscal year, parishes and schools are to submit
their financial statements for the year just ended and a prospective budget for the following year.
They also will complete an Annual Survey as part of the Annual Financial Report. The survey
should be completed by the pastor/principal and parish and school staff with the assistance of the
Finance Councils.

The Diocese will send a blank copy of the Annual Financial Report to all pastors and principals
in late June/early July. Parish/School finance staff presents the year-end financial information
and the Annual Financial Report to the pastor/principal, Finance Councils and trustees by
August 31st and submit to the Diocese by September 15
th
.


November 2009 VI.16
Transfer Adjustment to Current Fiscal Year in
ParishSOFT (CMS) Ledger and Payables

In some instances, you may need to create a journal entry in your archived copy of the previous
fiscal year in order to adjust balances. These entries need prior approval by the Diocesan
Finance Office. With an authorization code from the Diocesan Finance office, you can
automatically transfer the journal entries from the archived fiscal year to the current year system
as Beginning Balance entries.

1. From the Archived System Entry Menu, choose Journal Entries. The Journal Entries
dialog will display.

2. Display the appropriate journal entry.

3. Click the Transfer Adjustment to Current Year button on the toolbar.

4. Click the Browse button and find the location of the drive and folder of the current
years system, i.e. C:\FIN4WIN\FIN4WIN.TXT.

5. Enter the date of the new Beginning Balance Entry. Click Report and Transfer.

6. At this point, your CMS system will give you a code. You will need to communicate
that code to the Diocesan Finance Office staff and they will obtain an Authorization
Code for that number. When you enter the authorization code provided by the Diocesan
Finance staff member, the transaction will complete.

7. Print the report of the transaction.

8. Close the archived copy of CMS.

9. Open the current Fiscal Year and run Calculate Balances.

10. You can now confirm the Beginning Balance entries were completed.


November 2009 VI.17
Sacramental Registry Reporting

Sacramental Registry Reports are due to the Diocese Office of the Bishop each calendar year on
the last day of February.

Print the reports from the ParishSOFT Sacramental Registry Reporting tool. They are to include
all sacraments that have taken place at your parish during the previous calendar year.

Refer to the ParishSOFT Sacramental Entry section of the Family Directory User Guide for data
entry instructions. You can locate the current User Guide on the ParishSOFT website at
http://www.parishsoft.com/support/guides_parish.asp. Sacramental Entry and Certificates are
located in Chapter 2: Family and Member Records.

The pastor signs and dates the front page of each Sacramental Registry report after he has
reviewed each report. Submit the following reports to the Diocese for storage in the archives as
required by Canon Law.

Baptismal
Confirmation
Matrimony
Funeral

The following pages are an excerpt from the ParishSOFT Family Directory User Guide
referencing the process to follow when entering and reporting on member sacramental data
within the ParishSOFT program.

November 2009 VI.18


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November 2009 VI.39


February 2010 VI.40
Manage Staff List / Positions (ParishSOFT AIM)

Each calendar year, the Diocesan Communications Office publishes a printed Diocesan-wide
directory. The directory includes all Diocesan organizations and their contact information. This
page references the procedures to follow to ensure the Diocese has access to organizations most
up-to-date contact information for publication.

The documents following this page are taken from the ParishSOFT User Guides and can be
accessed on their website at www.parishsoft.com.

Information included in the published Diocese of Des Moines Directory is obtained
electronically from the parishs ParishesOnline Website and also from data entered on the
Manage Staff List function in ParishSOFTs Family Directory. The Manage Staff List within
ParishSOFT can also be accessed utilizing the ParishSOFT Staff Manager website if the Family
Directory application is not available (i.e. schools). This is the link to the Online Staff
Management page: https://aimsync.parishsoft.net/desmoines/hostedsites/

Please refer to the attached pages taken from the ParishSOFT Safe Environment Program
Manager User Guide for Parishes, pages 17-18 for additional instruction on using the Online
Staff Management tool.

The ParishesOnline website does require a separate user authentication. You can obtain the login
and password from ParishSOFT. Submit login requests via the ParishSOFT website,
http://www.parishsoft.com/support/support_requestform.htm. Information for updating
organization and staff information can be found in the Web Solutions User Guide.

Each parish needs to continuously keep this data up to date in both their website and ParishSOFT
Manage Staff List. In June of each year, the Diocesan Communications Department will pull
electronic data out of the ParishSOFT database and the ParishesOnline website for the published
Diocese of Des Moines Directory. The Diocesan offices continually utilize the contact
information of individuals with assignments to parishes and schools. Therefore, it is important
all of the contact data for the parish organization, the school organization, and all staff and
volunteers are current. This includes members of the Parish Finance Council and members of
the School Finance Council. Identify these individuals in the ParishSOFT data through the
Manage Staff List process.

Please refer to the following pages taken from the ParishSOFT Quick Start and Installation User
Guide, pages 16-18, for additional information on using the Manage Staff List function within
the Family Directory program.

Also included are sections of the ParishSOFT Web Solution User Guide regarding the
administration of the parishs ParishesOnline website.


November 2009 VI.41
ParishSOFT Staff Manager Website

The following pages reference the use of the ParishSOFT Staff Manager website. This is an
alternate method for entering parish and school staff to your ParishSOFT database.
Organizations without access to the ParishSOFT software tool for Staff Management will need to
utilize this alternate method.

November 2009 VI.42


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November 2009 VI.52


November 2009 VI.53
Official Catholic Directory (Kenedy Directory) Annual Update Process

First published in 1817 by P.J. Kenedy and Sons, The Official Catholic Directory is the most
authoritative resource available today on the Catholic Church. Each edition provides complete
information on the Church's hierarchy, its institutions, schools, special care centers, and affiliated
facilities. It offers the most comprehensive and detailed profiles on each (arch) diocese in the
United States and hundreds of (arch) dioceses around the world.

Each September all parishes receive forms (blue forms) from Kenedy to update their parish
statistics. Diocesan parishes and schools utilize the online process through ParishSOFT to
update this data. Please submit everything electronically online and throw away the blue forms.

Following are the instructions for completing this process. Please also refer to the ParishSOFT
Diocesan Kenedy Directory Manager User Guide for Parishes for detailed instructions.

1. Use the link below to access and complete the online Kenedy Directory form:
https://aimsync.parishsoft.net/desmoines/parish/ocdlogon.php

2. When prompted enter the following username and password.
Username: desmoinesparish
Password: parish47

3. Once on the Kenedy Login screen, enter the Username and Password used to login into
ParishSOFT and click the Log On button. If this does not work please contact the
Diocesan Communications Office and they will give you a username and password.

Follow the directions in the parish Kenedy user guide to update the parish information for this
year and submit it to the Diocese.

Please remember to include the information for school (if you have one) and religious
Education:

School: Number of lay teachers and no. of students
Religious Education: Number of elementary students and number of high school students.

The Organization code should be DM-_ _ _ that is located on the form you receive from Kenedy.

The following page can be found on the ParishSOFT website (www.parishsoft.com) and
reference the process to follow when updating statistics for the Kenedy Directory using the
online tool provided by ParishSOFT.

November 2009 VI.54


February 2010 VI.55
End of Year Contribution Statements

At the end of each calendar year, prepare contribution statements for all parishioners based on
amounts recorded in the ParishSOFT Offerings and Pledges Module.

Federal tax deductibility for any single contribution greater than or equal to $250 requires the
parish/school to provide the donor written acknowledgment. The written acknowledgment must
include the following:

Parishs or schools name
Donors name
Date of the contribution
If goods or services were not provided, include a statement similar to the following:
o No goods or services were provided for any donation.
If goods or services were provided, include the following:
o A description and good faith estimate of the value of goods or services the
parish/school provided in return for the donation, or
o A statement that goods or services provided by the parish/school consisted
entirely of intangible religious benefits, if that is the case.
For example: Two Iowa Hawkeye football tickets for September 12, 20XX, valued at
$500, were provided in return for a $2000 donation.

Distribute calendar year contribution statements by January 31
st
. Investigate any discrepancies
noted by parishioners, parents/guardians, or parents by someone other than the recorder of
collections.

See ParishSOFTs Offering and Pledges User Guide for the steps in printing contribution
statements. User Guides are available online at www.parishsoft.com, under Support\User
Guides for Parishes.


November 2009 VI.56
Annual Reports to Parishioners, Parents/Guardians, and Patrons

Annual Financial Report

The Finance Council will review and approve fiscal year-end financial reports prepared by the
parish/school staff by August 31
st
each year. Subsequent to its approval, the Finance Council will
present the annual financial statements to the parish/parents, guardians and patrons at large. The
financial statements will include:
Statement of Financial Position (Balance Sheet)

Statement of Activities (Income Statement) With a column for:
o Fiscal year-end totals
o Comparison of actual to the annual budget

Annual Budget

The Finance Council is to provide a preliminary budget to the parishioners, parents/guardians,
and patrons for their input. After receiving input, the Finance Council, along with the with the
parish/school staff, will finalize and approve a budget for the coming fiscal year. The approved
budget will be communicated to the parishioners, parents/guardians, and patrons.

November 2009 VII
VII. Property and Casualty/Workers Compensation Insurance
Page
A. Property and Casualty Insurance VII.1
1. Claims Reporting Instructions VII.2
2. Special Events Coverage VII.3
B. Workers Compensation Insurance VII.4

Purpose Statement: This section provides basic information regarding both property and
casualty and workers compensation insurance, including an explanation of when special events
coverage might be necessary. Specific notes of importance and suggested processes are included
for when a property loss or personal injury has occurred. The Diocesan Finance Department
strives to support parishes and schools with critical resources needed to mitigate financial risks
and risk to organizations integrity during difficult situations.
Diocese of Des Moines Chapter VII: Property and Casualty /Workers Compensation Insurance

November 2009 VII.1
Property and Casualty Insurance

The Diocese purchases comprehensive property and casualty insurance through the Catholic
Mutual Group for all Diocesan entities. The Diocese ensures all parishes and schools have
appropriate coverage for the various types of insurance risk and coverage is reviewed annually
for any necessary changes. Catholic Mutual Group bills the parishes and schools for their
portions of the total premium, but parishes and schools should remit their insurance payments
directly to the Dioceses Finance Department. Parishes and schools should not purchase
policies on their own.

Property Coverage

Generally, all buildings are insured for fire and all risks at the recorded replacement cost. Unless
coverage is for building only, insurance for contents is included in the replacement cost value.
Newly-acquired real property and the contents of the newly-acquired real property used solely
for church-related activities are covered for up to $10,000,000. Parishes and schools should
notify Catholic Mutual immediately upon acquisition.

A deductible of $1,000 applies to each loss occurrence and will be incurred by the parish.
Exception: A $2,500 deductible per location or parish may apply to Wind and Hail damage
losses. See following page for additional information on Claims Reporting Instructions.

Special Events

Parishes and schools may purchase separate Special Events coverage through the Catholic
Mutual Group for any non-parish sponsored activities. See a following page for further
information on Special Events.

Catholic Mutual Group Contact:
Contact: Michele DeGeorge
Phone: 1-(800) 228-6108
Fax: 1-(402) 551-2943
Email: mdegeorge@catholicmutual.org

November 2009 VII.2
Claims Reporting Instructions
Property

If property damage occurs, parish and school staff should take whatever means are necessary to
protect the property from further damage. If contents are involved, separate the damaged articles
from the undamaged. If buildings are open to the elements, arrange for temporary protection.
Catholic Mutual Group will reimburse this expense with proper documentation. CONTACT
CATHOLIC MUTUAL GROUP AS SOON AS POSSIBLE.

Liability

It is important that all persons understand the scope, intent, and limitations of liability coverage.
Pastors and persons holding positions of authority should exercise caution when discussing,
interpreting or assuming liability.

If someone is injured on parish/school premises, obtain the pertinent facts and names and
addresses of all witnesses. Tell the injured person the parish/school carries liability coverage and
the incident will be referred to your carrier. A fair and impartial investigation will be made by an
adjuster to determine the facts as to whether or not the parish is guilty of negligence. DO NOT
UNDER ANY CIRCUMSTANCES ADMIT LIABILITY or prejudge the facts. By doing so, you
could be unnecessarily exposing the parish and the Diocese to a claim or to a claim which might
exceed the amount of liability coverage carried. IT IS IMPORTANT THAT PARISH/SCHOOL
REPRESENTATIVES DO NOT DISCLOSE TO ANYONE THE LIMITS OF LIABILITY
COVERAGE THE ORGANIZATION CARRIES.

If parish/school personnel are approached by anyone other than the Catholic Mutual Groups
adjuster, do not give that person a statement or deposition; simply refer that person to Catholic
Mutual Group.

If parish/school personnel are served a Summons, refer this promptly to Catholic Mutual Groups
adjuster, because each Summons contains a deadline.


November 2009 VII.3
Special Events Coverage

Facility Usage

When an outside group or individual (this includes parishioners) wishes to use
Diocesan/parish/school property for a non-parish/school sponsored event, specific risk
management guidelines must be followed. Either a certificate of insurance must be obtained
with $1,000,000 general liability coverage which names the parish/school and the Diocese of
Des Moines as additional insured or Special Events Coverage must be purchased.

Determining When an Activity is Parish/School Sponsored

The following questions are helpful:
Did any costs or fees associated with the function flow through parish/school accounts?
Did the parish/school have full control over the group or function?
Was the function or group open to all parish/school members?
Was the purpose of the function or group to facilitate learning, raise revenue for the
parish/school or provide a social service on behalf of the parish/school?
Was the teacher or leader of the group a parish/school volunteer or employee?

Generally, if the answer to any of the above questions is no, the activity is not parish/school
sponsored, meaning that the facility user needs to provide insurance which includes the Diocese
and parish/school as additional insureds or purchase special events coverage.

Non-Parish/School Sponsored Events

When it is determined an activity is non-parish/school sponsored, there are two options:

1. The organization/individuals using the parish or school facilities can secure a certificate
of insurance from their insurance carrier reflecting $1,000,000 general liability for use
of the facility and the certificate MUST name the location and Diocese as additional
insured.

Submit this certificate of insurance needs to Catholic Mutual 15 business days prior to
the event. Some homeowners insurance policies will not comply with this requirement,
and as a result, Special Events coverage would then need to be purchased.

2. The organization/individuals using the parish or school facilities can purchase Special
Events coverage which will cover the individuals/organization holding the activity, the
parish/school, and the Diocese of Des Moines.

Submit an application for special events coverage directly to Catholic Mutual at least 15
business days prior to the event. Contact Catholic Mutual for forms and information.


February 2010 VII.4
Workers Compensation Insurance

The Diocese purchases workers compensation coverage through United Heartland, with
LaMair-Mulock-Condon (LMC) serving as the agent, for all parish and school employees.
Parishes and schools pay an allocation of the premium based on employees wages and job
classifications. The Diocese bills parishes and schools annually for this coverage. Remit
payments directly to the Diocesan Finance Department.

Injuries at Work

If an employee is injured on the job, the first priority is medical care for the employee. If the
injury is serious, an ambulance should be called and immediate medical care delivered. If the
injury is not severe, a call should be made to LMC so that the employee can be directed to the
workers compensation physician. The staff at LMC will assist in making the appointment.

A First Report of Injury form should be completed by the employees supervisor or the
business manager. State law requires this to be completed within three days of the injury and
submitted to LMC. This form is the first step in filing the workers compensation claim. A copy
of the form is available on the LMC website.

LaMair-Mulock-Condon
Contact: Markie Lamer
Phone: 1 (800) 747-5652 or (515) 237-0108
Fax: (515) 558-0741
Email: Markie.lamer@lmcins.com

November 2009 VIII
VIII. Technology Page

A. Software VIII.1
B. Hardware VIII.2
C. Methods to Obtain Software and Hardware VIII.3
D. Software Data Maintenance VIII.4
1. Backups (ParishSOFT) VIII.5
2. File Transfer Protocol (FTP) (ParishSOFT) VIII.10
3. Duplicate Checker (ParishSOFT) VIII.14
4. Compact and Repair / Database Maintenance
(ParishSOFT) VIII.16
5. Synchronization (ParishSOFT) VIII.18
E. Software Training VIII.29

Purpose Statement: Each parish in the Diocese of Des Moines uses standardized technology
software programs. The software tools for family census management and for parish and
school accounting are referenced in this section of the manual.

The information in the technology section describes routine procedures and maintenance
processes, as well as provides reference to the software user manuals provided by ParishSOFT,
the vendor providing the parish and school management software Diocesan and parish/school
finance staff use.
Diocese of Des Moines Chapter VIII: Technology

February 2010 VIII.1
Software

The Diocese of Des Moines implemented a standard software tool for use in all parishes and
schools throughout the Diocese. The ParishSOFT software is utilized for family demographic
data handling and also parish and school accounting. The list below indicates the software
modules in use throughout the Diocese as well as other software and hardware requirements that
are compatible with these mandated software programs.

1. ParishSOFT Family Suite includes the following modules:
Family Directory track census and membership information
Time and Talent manage ministry groups, volunteers and liturgical schedules
Religious Education and Tuition manage all details of the religious education
program
Offering and Pledges manage contributions, pledges and tuition
Ledger and Payables fund accounting of the parish financials

2. ParishSOFT optional modules include:
Payroll payroll functions for all paid parish staff
Parish IQ simple interface to query the database to provide reports
CASS address quality and bulk mailing tool
Parishes Online.com free parish website
Facility Scheduler free online schedule for facilities

3. Microsoft Office Professional Suite (2003 or 2007), including Microsoft Access.

4. Internet Connection (broadband is preferred)

5. Adobe Acrobat Reader

6. Internet Explorer 5.0 or higher

7. Active Parish Email Address Required

Hardware

The following list represents the minimum hardware requirements suggested by ParishSOFT for
operation of the software programs.

Parish Workstations
Intel Pentium III, 800 MHz or better processor
128 MB of RAM for Windows 2000 (256 MB of RAM required for XP)
200 MB of available hard disk space
CD-ROM Drive


Methods to Obtain Software and Hardware

1. ParishSOFT
825 Victors Way, Suite 200
Ann Arbor, MI 48108-2830
866.930.4774 (toll free)
734.205.1000
734.205.1011 fax

Church Management Solutions
3300 Bass Lake Road, Suite 304
Brooklyn Center, MN 55429
800.247.8044
763.566.4212
763.566.2250 fax

support@parishsoft.com email
support@churchmanagementsolutions.com email
www.parishsoft.com
www.churchmanagementsolutions.com

2. Diocesan Technology Department (Hardware and Other Software)
601 Grand Avenue
Des Moines, IA 50309
515.237.5007
515.237.5070 Fax
rargetsinger@dmdiocese.org

Volume Licensing
Parishes and schools interested in volume licensing purchase of ParishSOFT or other software
programs may email Roni Argetsinger.


Software Data Maintenance

The following section of this manual includes documents referenced on the ParishSOFT website,
as well as pages taken from the software User Guides.

This section focuses on routine procedures required by the program as well as maintenance
schedules and processes recommended by ParishSOFT for ultimate program performance.



Diocese of Des Moines: It is important to back up your parish database on a frequent basis to avoid losing the data
to a computer malfunction or error. Following are articles from ParishSOFT referencing those safeguarding
procedures.

Backing Up Your ParishSOFT Database

We highly recommend that our customers backup their database regularly. There are two easy ways to backup your
ParishSOFT database. You can backup your database file locally to your computer, or you can send a copy of your
parish database via the internet (FTP) to ParishSOFTs offsite servers. This help document will walk you through
both of these options.

1. Adding ParishSOFT Files as Exceptions on Antivirus/Firewall programs. There are several files that
must be added as exceptions to your Antivirus programs and Firewalls to allow your FTP Backup to be sent
successfully from ParishSOFT- these are listed below. They must be allowed to access the internet. Please add these
as exceptions on each machine.

cmd.exe (located in C > Windows > System32)
curl.exe (located in C > Program Files > ParishSOFT)
gzip.exe (located in C > Program Files > ParishSOFT)
psFamilyDir.exe (located in C > Program Files > ParishSOFT)
pssyncBackup.exe (located in C > Program Files > ParishSOFT)
pssynchronizer.exe (located in C > Program Files > ParishSOFT)

The exact steps of how to configure your internet security varies depending on the particular internet security
application you are using. If you are not familiar with configuring your internet security, you should contact your
parish computer administrator (the person who helps you with computer, printer, and network issues) for assistance.

2. Running a Manual Backup [for information on scheduling Automatic Backups, see Step 2]

A. Within any ParishSOFT module, click on About.
B. Click on ParishSOFT System Info.
C. Click on Perform Backup.
D. You should now see the Database Backup and Scheduler. In the Day column, place a checkmark in the
correct day of the week (for today).
E. Leave the Time column as is, for manual backups.
F. The Hard Drive Folder column tells you where your database is being backed up to locally. If you would
like to modify this, you may type in a different location in this column.
G. Place a checkmark in the FTP column for the corresponding day of the week.
H. Click Backup in the row for the corresponding day of the week. You will get a message Database backup
complete when it is complete, and FTP Backup successful to ParishBackup.com if you did an FTP
backup as well.


Scheduling Automatic Backups

A. Within any ParishSOFT module, click on About.
B. Click on ParishSOFT System Info.
C. On the ParishSOFT System Information screen, place a checkmark in the box for Assign this computer to
be the master which performs AutoBackups when scheduled.
D. You will now see a message, Are you sure you want to make this computer the Master? Click Yes to
confirm this.
E. You will now see a message, Do you want to start psSyncBackup application now? Click yes to confirm
this.
F. You will now see the Synchronize and Backup window. Make sure the following options are checked.
Enable Auto-Run Backup on Master Computer
Assign this computer to be the Master which performs Auto Backups when scheduled.
Automatic startup of this application when computer starts
G. Now go ahead and exit Synchronize and Backup saying no to the message box minimize this application,
and return to Family Directory, About, ParishSOFT System Info.
H. You should now see the Database Backup and Scheduler. In the Day column, place a checkmark for each
day of the week that you wish to create a Backup.
I. For the Time column, set the time that you wish your backup to go- note that this time is in military time,
so 03:00 is 3 a.m. For automatic backups to run, **your computer must be turned on, logged in, and able to
connect to the internet** for a scheduled backup to take place.
J. The Hard Drive Folder column tells you where your database is being backed up to locally. If you would
like to modify this, you may type in a different location in this column.
K. Place a checkmark in the FTP column for the each day of the week that you wish a Backup to run.
L. Return to About, ParishSOFT System Info, Perform Backup to review the Backup History to ensure your
automatic backup is setup correctly and running. If it does not appear to be running correctly, contact
ParishSOFT Technical Support at 1-866-930-4774 (option 2), anytime between Monday and Friday, 9am-
7pm EDT.


Diocese of Des Moines: Your ParishSOFT program may include reports that were created custom for your
organization and are not a part of the standard ParishSOFT reporting package. If you do have reports that were
created custom, those are specific to the ParishSOFT program installed on your computer, and the report files need
to be backed up separately from the rest of the program. In the instance of a software upgrade being installed on
your computer; those custom reports will then need to be imported back into the ParishSOFT program installed on
your computer. This document references the steps for backing up and importing a custom report file.

HOW TO BACKUP YOUR REPORTS FILE

There are several possible ways to backup your custom reports in your reports file.

1. Method 1 is the easiest method, but it requires ParishSOFT version 3.5 or higher to use this method. From
within any module, go to the About Screen, click on ParishSOFT System Info, and Perform Backup.

a. Select the day of the week by putting a check in it.

b. Click on Backup Reports Files Locally.

This puts a backup of the reports file in the hard drive location listed in the Perform Backup screen (usually
C:\Program Files\ParishSOFT\Backup\(Day of Week)) that can then be used to import from.

2. Method 2 is to open My Computer; go to Local Disk C, Program Files, ParishSOFT. Find the File named
PsReports2000.mdb. Right click on the file and choose Rename. Add the current version number to the
name of the file.
(Ex. PsReports2000v3.5.30.mdb) You can also copy the file listed above to the location of your choice.
Use this file to import from after the update.

If you have customized your End of Year Statements, use Method 2 with the file named ContribReports2000.mdb
that is also in the ParishSOFT folder. If you have customized any reports in Tuition, use Methods 2 with the file
named PSTuition2000.mdb in C:\Program Files\Parishsoft\PSTuition.

IMPORTING CUSTOMIZED REPORTS AND QUERIES IN ACCESS 2003 OR PRIOR

1. After updating your software, Open Reports/ParishSOFT Reports. Click on the F11 function key on the
keyboard.
2. On the Database window that opens, select Queries on the left side in the Objects section.
3. On the Right side in a blank area, right click.
4. Select Import.
5. Browse to the location of the backed up reports database, select the database and click open. Follow the
directions below to locate and unzip your database (follow a. if you used method 1 on page 1 and b. if you
used method 2 on page 1)

a. If you used the Backup Reports Locally Option, open My Computer, and navigate to C:\Program
Files\ParishSOFT\Backup\(Day of the Week). You will see a file called PsReportsBackup.zip. Right
click and select Extract. Use either WinZip or the Windows Compression Wizard to extract the file to the
C:\Program Files\ParishSOFT\Backup\PSReportsBackup folder.

b. If you used the methods of renaming your reports file or saving the backup to the desktop browse to that
location.

6. At this point an import wizard will open, defaulting to the Query tab. Single click on all of the custom
queries you need to import. (If you have used the standard procedure, the queries will either start with cq_
or your initials, or both.) To select multiple queries at the same time, single left click on the first query and
then hold down the control key while you single left click all the other queries you need to import.
7. After selecting all of your custom queries, then click on the Reports tab and find all of the reports that begin
with your initials. As in step 8, single click to select each of them, holding down control to select multiple
reports at once.
8. Once all queries and reports you need are selected (highlighted in blue), click on Ok. After the screen
flickers a little, you will be back at the database window and all of the imported objects will now be listed
in the database window.
9. Close the database window by clicking on the Window menu and selecting Hide.

To utilize those reports and queries at a later time press the F11 key locate the report or queries in the appropriate
object area and double click on it.


IMPORTING CUSTOMIZED REPORTS AND QUERIES FOR ACCESS 2007

1. After updating your software, Open Reports/ParishSOFT Reports.

2. Click on the External Data Ribbon and in the Import section select Access.

3. Browse to the location of the backed up reports database, select the database and click open. Follow the
directions below to locate and unzip your database (follow a. if you used method 1 on page 1 and b. if you
used method 2 on page 1)

4. a. If you used the Backup Reports Locally Option, open My Computer, and navigate to C:\Program
Files\ParishSOFT\Backup\(Day of the Week). You will see a file called PsReportsBackup.zip. Right
click and select Extract. Use either WinZip or the Windows Compression Wizard to extract the file to the
C:\Program Files\ParishSOFT\Backup\PSReportsBackup folder.

5. b. If you used the methods of renaming your reports file or saving the backup to the desktop browse to that
location.

6. After locating the database, be sure the Import tables, queries, forms, reports, macros and modules into the
current database is selected.

7. Click OK.

8. In the Import Objects box that appears select the appropriate tab for what you are importing.

9. You can select multiple items in the different tabs by holding the control key down while selecting them.

10. After selecting the report or queries you want click OK.

11. Click Close on the Get External Data Access Database Wizard.

To utilize those reports and queries at a later time press the F11 key locate the report or queries in the appropriate
area and double click on it. You can change the area you are seeing by using the drop down and selecting the
appropriate area. To close the shutter bar use the arrows to the left of the area name you are currently viewing.


FTP Backup to ParishSOFT

Diocese of Des Moines: Another method of backup is sending a copy of your database to
ParishSOFT. This process is completed using the internet and an FTP Server. In some
instances, you may need to complete this process in order to obtain support assistance from
ParishSOFT on data issues as well. Below are instructions from ParishSOFT to complete an
FTP Backup of your data to ParishSOFT.

How To Send a Manual Back-up to ParishSOFT (File Transfer Protocol
(FTP))

1. Open Family Directory and click on About.
2. From the About screen select ParishSOFT System Info.
3. Click on Web Connect Setup.
4. Verify that it states 'Online' in green at the top. If so, click Close. If not, click Enable/Disable
WebCONNECT, answer Yes, and then click Close.
5. Click on Perform Backup button.
6. Add a check in front of today (Monday, Tuesday, etc.).
7. Add a check beneath FTP in the row for today.
8. Click on the Backup button immediately to the right of that check mark you just added for today.
A local backup will be performed and then a copy of that backup will be uploaded to the ParishSOFT server. When
the backup completes you will receive a message box saying it was successful.


Diocese of Des Moines: The Ledger and Payables module in ParishSOFT is also referred to as
CMS (Church Management Solutions) which was the name of the previous owner of the
software. CMS was acquired by ParishSOFT at the same time as the parishes in the Diocese of
Des Moines were converting to the standardized software programs. This tool is referenced at
times throughout this manual and throughout ParishSOFT manuals as CMS and also as
ParishSOFT Ledger and Payables.

How to Backup your data in CMS

CMS gives you many choices when backing up your data. You can backup to:
3 1/2 floppy diskette
Zip Drive
Flash/Thumb drive
CD-R/CD-RW
FTP Internet Backup
From CMS People Products or CMS Fund Accounting, click File | Backup.

You can make a simple backup. Just insert a diskette, USB Flash Drive, Zip Drive, etc. and make a backup to the
root of drive. If you do not have Windows XP, you can backup to a formatted CD-R/CD-RW.

NOTE: If you want to backup to a CD-R/CD-RW drive and have Windows XP, use the CD backup option below.
The backup name for CMS People Products is CMS4WIN.ZIP, and the backup name for CMS Fund Accounting is
FIN4WIN.ZIP.

You can make a custom backup. This will allow you a bit more control over the location and file name of your
backup.

The FTP Backup allows you to transmit your data over the internet (using 512 bit encryption) to CMS Servers that
will house your backups. This option could be used as one of your backup copies.

CMS will store the date, time, file size and data version of your backup file names. CMS provides space for three
backup files. We recommend that you alternate your backups each week.


Finally, you can make a backup to a CD-R/CD-RW drive using Windows XP ability to write to a non-formatted CD.

You can set up a Backup Reminder to remind you to make a backup of your data periodically. Check the box at
Remind me to backup every XX days and select the number of day's you'd like to be reminded. Click the Save
Reminder Settings button.


Duplicate Checker Process

All of the parishes within the Diocese of Des Moines synchronize their family demographic data into one central
database referred to as AIM Family Directory. This allows all diocesan entities to share that demographic data on
all families within the Diocese. At times, the synchronization process results in duplicate family data being loaded
into the AIM database. Each quarter of the year the Diocese will scan the AIM database for potential duplicates and
will then report those records to the associated parishes. The process below describes the steps the parishes take to
eliminate those duplicate data sets from the central database.

These instructions are for merging duplicate family records one at a time using the Known Duplicates function
within the Duplicate Checker tool. You will need to make note of each Family ID number in order to enter those
into the merge fields of the tool. If you have a large number of duplicate family records to resolve, you may choose
to investigate and add all new families first, synchronize all data, and then run the Duplicate Checker tool.

Registered / Registered
1. Investigate my family. Decide are they registered here or at that other parish listed?
2. Contact the other parish. Ask them to find their group of Reg/Reg duplicates for your parish.
3. Decide which parish is the parish of registration.
4. If you are the parish of registration, you are done. The other parish will mark their record as Not
Registered, will pull in your Registered record to their database, will perform the merge and synch.
5. If you are NOT the parish of registration, you will need to take the following action:
1. Uncheck the box in front of Currently Registered Family.
2. Make note of the Family ID number for that family record.
3. Update that Family Status accordingly. Save and Close.
4. Choose to Add New Family. Search for this family.
5. Choose the family record that is not already in your database. (The Master Record marked as
Registered at the other parish.) Do NOT mark the box for Register selected family to this parish
when adding. You want the family record to be added to your database as Not Registered.
6. Make note of the Family ID number for this Master record. Close.
7. Synchronize your database.
8. Make sure there are no other users logged in to ParishSOFT.
9. Log in as Exclusive_Admin with a password of dupechecker.
10. Launch Duplicate Checker and resolve the Known Duplicate using the two Family I.D. numbers.
Merge your Not Registered record into the Master family that is registered at the other parish.

Registered / UnRegistered
1. Investigate the Family. Make sure your Not Registered family is a true duplicate by
searching for the other Master family record through the Add New Family function.
2. If this match is a true duplicate, choose to add the family record that is not already in your
database. (The Master Record marked as Registered at the other parish.) Do NOT mark the
box for Register selected family to this parish when adding. You want the record to be
added to your database as Not Registered.
3. Make note of both Family ID numbers for this Master record and for your current
duplicate family record.
5. Make sure there are no other users logged in to ParishSOFT.
6. Log in as Exclusive_Admin with a password of dupechecker.
7. Launch Duplicate Checker and resolve the Known Duplicate using the two Family I.D.
numbers. Merge your Not Registered record into the Master family that is registered at the
other parish.

Exceptions
1. If the set is not a true duplicate, make note of the set. You will need to report to Diocese that
the set is not a duplicate. You will need to inform Diocese of the two Family ID numbers

from your report that are involved. The Diocese will be sure to filter out that set during the
next run of the Duplicate Checker report.

2. If the set contains multiple duplicate family records (more than 2 family records), you will
follow the same procedures. Only one family can be marked as Registered. All parishes will
need to concede to one parish of registration, the rest can be connected to the family as Not
Registered but Active if appropriate. Remember, you will keep your specific parish data. It is
the duplicate shared data we are eliminating.

3. In the instance of a duplicate having one Not Registered record at Parish A, one Registered
record at Parish B, and one Registered record at Parish C..the duplicate set is only going to
be reported to the parish with the Not Registered record (because they are the parish that
needs to do the merge.) Therefore, you have two options. You can 1) Contact both other
parishes involved and inform them of the duplicate and they can resolve the Registered
issue. Then the two parishes with a Not Registered record can perform the merge with the
one true Registered record. Or, 2) you can merge with one of the Registered Records and the
next production of these reports, the duplicate will show up on the Registered/Registered list
for those other two parishes.

4. Realize that the logic that we are using for finding these duplicate sets may change as we fine
tune our duplicate criteria so future reports may find duplicates that weve missed the first
time around.

5. In the instance of a duplicate set with records that are Not Registered/Not Registered..we
are not including these in the reports due to the following analysis. When a parish searches
for a family, and they find these two records both marked as Not Registered, they will choose
one of those records and use it. Once that action takes place, we now have a Registered/Not
Registered duplicate instance that our tool will report. The duplicate will get cleaned up on
the next report cycle.
6. If one of your duplicate families is within POLID #21831 or 20910, please contact Diocese.
These are POLID numbers assigned to Diocese of Des Moines and Unassigned. The
Diocese is working with ParishSOFT on a method to resolve those duplicate situations.


Diocese of Des Moines: This process is recommended by ParishSOFT to keep your program
operating in the best manner. Electronic data tends to need maintenance and this process cleans
the data files.

How do I run Compact and Repair on my database?

From *within* ParishSOFT applications:

After successfully logging into your ParishSOFT program as someone with Parish Administrator rights, you can run
the Compact and Repair utility to help maintain your database.

IMPORTANT: Make sure that all of the computers in your office that use ParishSOFT programs have exited all
ParishSOFT applications including the Synchronize and Backup. The Synchronize and Backup program usually
shows as an icon with pink people and a blue diskette in the system tray near the time on your computer. You
should be able to double click on the Synchronize and Backup icon to bring the menu up. Then simply click on the
Exit button and choose Yes to close the program.

The Compact and Repair can be done by doing the following:
Click on the About menu and then ParishSOFT System Info.
Click on the System and Database Utilities menu in the upper left.
Select Compact and Repair Database
Answer Yes to the prompt to proceed with the process (Do not stop the process, you must let it finish). It
may take several minutes to complete.

When the Compact and Repair has completed, click Ok to the message box. Then your ParishSOFT application will
close.

From *outside* of ParishSOFT applications:

There are some instances when you cannot get into your ParishSOFT programs but need to run the Compact and
Repair utility on your database to help resolve database issues.

IMPORTANT: Make sure all the computers in the office are out of all ParishSOFT programs. This includes the
Synchronize and Backup program which runs backups and synchronizes with your diocese (if applicable). [To shut
the Synchronize and Backup program down, look for an icon with Pink people and a blue diskette in the system tray
near the time in the bottom-right corner of your computer. If you cannot close the synchronizer by clicking the red
X in the corner, first verify that your Synchronize and Backup program is **not** currently synchronizing. If it
does not say currently synchronizing, hold down Ctrl-Alt-Delete on your keyboard. Choose the option for Task
Manager. Click on the Applications Tab. Verify once again that Synchronize and Backup is *not* currently
synchronizing. Find psAutoSync, highlight it, and then click on the End Task button. Close the Task Manager
window.]


There is a database utility program in the ParishSOFT program folder that can be used if you cannot open your
ParishSOFT program. Typically the ParishSOFT programs are installed in C:\Program Files\ParishSOFT.
Open your My Computer window and navigate to Local Disk C, Program Files and then ParishSOFT.
Click on the psDbUtilities.exe icon.
Click on the Compact and Repair button.
Answer Yes to the prompt to proceed.
Click OK when the Compact and Repair completes.
Close Database Utilities.

Compact and Repair through Access:

Verify all users are out of ParishSOFT including any message boxes
Browse to the database location
Delete any lock files (.ldb)
Copy the .mdb file to that location or another location
Open the database file and answer yes to repair the database

How do I run database maintenance?

To run a Database Maintenance from *inside* of a ParishSOFT module:

Log in to any ParishSOFT module as a parish administrator. Click on About, ParishSOFT System Info,
System and Database Utilities, and Database Maintenance Check.
You will be able to watch the progression of the process and it will return you to the module you started
in.

To run a Database Maintenance from *outside* of a ParishSOFT module:

Open your My Computer window and navigate to Local Disk C, Program Files and then ParishSOFT.
Click on the psDbUtilities.exe icon.
Click on the Database Maintenance Check.
Your Cursor will change to an hourglass and then back to normal when complete.
Close Database Utilities.

Synchronization Management for Parishes


The following pages have been taken from the Installation and Start Up User Guide provided by
ParishSOFT. It can be accessed on their website, www.parishsoft.com.

Each parish in the Des Moines Diocese synchronizes their family demographic data into one
centralized database referred to as AIM Family Directory. This allows all Diocesan entities
using ParishSOFT to share that family demographic information. At a minimum, complete a full
synchronization of the parish database each week. Synchronize daily, if the database is updated
daily.


November 2009 VIII.19




















Software Training Opportunities

The software vendor (ParishSOFT) offers several avenues for training.

Parishes and schools in the Diocese also have opportunities to participate in User Group
Meetings at various times and locations throughout the year. These meetings are a great source
of information, as well as a way to meet your coworkers from other parishes and schools in the
Diocese.

1. ParishSOFT Teletraining: http://www.parishsoft.com/training/teletraining.htm

2. ParishSOFT Support Login:
http://www.parishsoft.com/support/support_beforelogin.asp

3. CMS Support
http://www.churchmanagementsolutions.com/kb/

4. ParishSOFT Query Library: http://www.parishsoft.com/support/querylibrary.asp
Support Login Required

5. Diocesan Technology Website / User Group Meetings
http://www.dmdiocese.org/Index.aspx?menuitemid=1198

6. Diocesan Technology Website / Frequently Asked Questions
http://www.dmdiocese.org/Index.aspx?menuuitemid=1196

7. ParishSOFT User Guides and Teletraining Manuals
http://www.parishsoft.com/support/guides_parish.asp (User Guides)
http://www.parishsoft.com/support/teletrainingmanuals.asp (Teletraining Manuals)

June 2010 IX.14
IX. Policies Page

A. Fraud Policy IX.1
B. Policy to Report Wrong Doing IX.3
C. Contract Review Policy IX.5

Purpose Statement: Policies help to establish best practices in any organization. The policies
in this section have been adopted with the intent of clarifying necessary practices that support
implementing accountability, transparency, and internal controls in Diocesan parishes and
schools.

This section contains policies in place within the Diocese of Des Moines in regards to financial
and technological matters.

Diocese of Des Moines Chapter IX: Policies

April 2010 IX.10
Diocese of Des Moines Fraud Policy

Policy Statement
The Diocese of Des Moines promotes a culture of honest and accountable stewardship of Gods
gifts. There is a significant responsibility associated with being stewards of the temporal
resources of the church: responsibility to safeguard the Churchs assets, to exercise prudence in
financial matters, to be accountable to those who provide monetary support to the Church, and to
comply with all civil regulations.
Fraud is not tolerated. The prevention of fraud is the responsibility of all clergy, religious, lay
employees, trustees, finance council members and other volunteers involved in church
administration by adherence to Diocese policies and procedures. The Diocese expects that any
suspected case of fraud will be reported, and provides assurance against recrimination. Persons
found to have participated in fraudulent acts will be subject to disciplinary action, including
termination, and civil and criminal prosecution.

Actions Constituting Fraud
The Diocese of Des Moines defines fraud as the intentional misuse or misappropriation of a
Diocesan entitys resources or assets for the personal enrichment of the perpetrator or others.
Fraud also includes the intentional false representation or concealment of a material fact relating
to the misuse or misappropriation of a Diocesan entitys resources or assets. Additionally, fraud
also includes any intentional falsification of, or misrepresentation in, financial statements.
Actions constituting fraud include, but are not limited to:
Misappropriation of funds, securities, supplies or other assets;
Impropriety in the handling or reporting of money or financial transactions;
Breach of fiduciary duty, including disclosing confidential information to outside parties;
Seeking anything of value from contractors, vendors or persons providing (or seeking to
provide) services/materials to a Diocesan entity for ones or anothers personal benefit;
Accepting anything of value from contractors, vendors or persons providing (or seeking
to provide) services/materials to a Diocesan entity for ones or anothers personal benefit,
in violation of the Diocesan Conflict of Interest Policy;
Bribery;
Inappropriate use of computer systems or other property of the Diocesan entity;
Unauthorized destruction or removal of records, furniture, fixtures and equipment;
Intentional falsification of, or misrepresentation in, financial statements; and
Any dishonest act.

April 2010 IX.11
Reporting Fraud to the Diocese
Suspected fraud should be reported to Diocesan personnel as designated by the Bishop, i.e., vicar
general, chancellor, attorney, or chief financial officer. All suspected frauds are to be reported as
soon as possible. Failure to promptly report suspected acts of fraud may jeopardize the
Dioceses ability to recover stolen funds and/or property, or to correct improperly prepared
financial statements on a timely basis. Reports of suspected fraud should include all relevant
information about the suspected act, including any material evidence that exists.

Investigation
The designated Diocesan personnel shall be responsible for a thorough and expeditious
investigation of the suspected fraud. Unless the report was anonymous, the person submitting
the initial report will receive confirmation indicating that their report was received and that the
subsequent investigation is confidential. That person may or may not be contacted during the
investigation.
Proposed decisions on disposition of a case will be decided by the Diocesan Bishop or his
designee(s). The results of all reported fraud investigations and the final resolution of all
confirmed acts of financial fraud shall be reported to the Audit Committee/Finance Council.

Records Retention
Fraud investigation files should be retained in accordance with guidelines established by the
Diocesan attorney.

Confidentiality
Information about cases will be disclosed to those parties with a legitimate need to know. All
parties with knowledge of such cases are to maintain confidentiality in order to avoid damaging
the reputations of persons suspected but subsequently found innocent of wrongful conduct, and
to protect the Diocese from potential civil liability.


April 2010 IX.12
Diocese of Des Moines Policy to Report Wrong-doing

General
The Diocese of Des Moines Code of Conduct requires all representatives of the Church,
including clergy, religious, directors, and other volunteers, and lay employees, to observe high
standards of business and personal ethics in the conduct of their duties and responsibilities. All
representatives of the Church must practice honesty and integrity in fulfilling their
responsibilities and comply with all applicable laws and regulations.

The objectives of the Policy to Report Wrong-doing are to establish policies and procedures for:
The submission of concerns regarding questionable financial or legal matters, violations
and suspected violations of the Code of Conduct, Code of Canon Law and other
concerns by the stakeholders of the Church, on a confidential and anonymous basis;
The receipt, retention, and treatment of complaints received by the organization;
The protection of anyone reporting concerns from retaliatory actions.

Reporting Responsibility
Each representative of the Diocese of Des Moines has an obligation to report in accordance with
this policy (a) questionable or improper accounting or auditing matters, (b) violations and
suspected violations of Dioceses Code of Conduct and (c) other financial, legal or canonical
concerns (hereinafter collectively referred to as Concerns).

Reports of Concerns should be made to Diocesan personnel as designated by the Bishop, i.e.,
vicar general, chancellor, attorney, or chief financial officer. All Concerns are to be reported as
soon as possible. Reports of Concerns should include all relevant information about the
suspected act, including any material evidence that exists.

No Retaliation
This policy is intended to encourage and enable stakeholders to raise Concerns within the
Organization for investigation and appropriate action. With this goal in mind, no stakeholder
who, in good faith, reports a Concern shall be subject to retaliation or, in the case of an
employee, adverse employment consequences. Moreover, anyone who retaliates against someone
who has reported a Concern in good faith is subject to discipline up to and including dismissal
from their position within the Church.

Investigation
The designated Diocesan personnel shall be responsible for a thorough and expeditious
investigation of the reported Concern.
Proposed decisions on disposition of a case will be discussed with the Bishop or his designee(s).
The results of all reported Concern investigations and the final resolution shall be reported to the
audit committee.


April 2010 IX.13
Acting in Good Faith
Anyone reporting a Concern must act in good faith and have reasonable grounds for believing
the information disclosed indicates an improper accounting or auditing practice, or a violation of
the Code of Conduct or other governance policies. The act of making allegations that prove to be
unsubstantiated, and that prove to have been made maliciously, recklessly, or with the
foreknowledge that the allegations are false, will be viewed as a serious disciplinary offense and
may result in discipline, up to and including dismissal from their position with the Church. Such
conduct may also give rise to other actions, including civil lawsuits.

Confidentiality
Reports of Concerns, and investigations pertaining thereto, shall be kept confidential to the
extent possible, consistent with the need to conduct an adequate investigation. Disclosure of
reports of Concerns to individuals not involved in the investigation will be viewed as a serious
disciplinary offense and may result in discipline, up to and including termination of the violators
position in the Church. Such conduct may also give rise to other actions, including civil lawsuits.

June 2010 IX.14
DIOCESE OF DES MOINES CONTRACT REVIEW
POLICY

PURPOSE: The purpose of this policy is to insure that all of the various entities that are part of the Diocese of Des Moines are
following the same procedures when making agreements with outside contractors.

In addition, to insure that the liability under the contract is assumed by the proper party and in particular that the Diocese does not
agree to any unnecessary hold harmless provisions.

PROCEDURES: The following procedures will be followed by all Diocesan entities:

1. All Construction contracts of $10,000 or more must be reviewed by the CFO of the Diocese prior to beginning project.

2. All Construction Contracts greater than $50,000 must be submitted for review and approval by the Diocesan Building
Commission per the Diocese Construction guidelines. Contact Bishops secretary for a copy.

3. All contractors are required to carry three types of insurance (regardless of the size of the contract) and provide proof to you
that they have each type. The three types of insurance are:
a. Public liability (General Liability) - $2,000,000 per occurrence minimum limit
b. Workers Compensation Statutory Limits
c. Automobile Liability - $1,000,000 per accident minimum limit

4. Certificates of Insurance MUST be obtained verifying all three of the above types of insurance and naming the
parish/institution and the Diocese as additional insured on the General Liability policy. (See sample certificate of
Insurance in Attachment A).

5. The standard contract AGREEMENT BETWEEN OWNER AND CONTRACTOR is to be used for small construction
jobs (less than $50,000) including, renovations, small additions, etc. This avoids using different contracts for each
contractor. If the contractor does not want to use this contract, their contract will have to be reviewed as stated in (1) above.
(See contract in Attachment B).

6. Construction Contracts greater than $50,000 generally will be written using one of the AIA (American Institute of Architects)
Construction Contracts. These contracts should be amended per the attached Catholic Mutual Addendum/Changes to the
AIA Contract. (See contract in Contract C)

7. All signed contracts must be maintained at the Diocesan office in a central file specifically for
Certificates of Insurance to monitor that the certificates are up to date.

8. All Construction contracts greater than $50,000 must include a performance bond.

9. All Contracted Service people are required to carry three types of insurance (regardless of the size of the
contract) and provide proof to you that they have each type. The three types of insurance are:
a. Public liability (General Liability) - $1,000,000 per Occurrence Minimum Limit
b. Workers Compensation Statutory Limits
c. Automobile Liability - $100,000 per person/$300,000 per accident minimum limits
Certificates of Insurance MUST be obtained verifying all three of the above types of insurance.
The attached form Service Contract should be executed before work begins. (Attachment D).

10. Small routine maintenance jobs do not require the use of contracts.


June 2010 IX.15
11. Professional service contracts should be used when contracting for the services of architects and engineers.
These contracts should name the parish/institution and the Diocese as additional insured on the Architect or
engineers Professional Liability policy. All professional service contracts must be reviewed by (designated
Diocese personnel).

12. All building lease agreements must be reviewed by (designated Diocese personnel). See attached guidelines for
these lease agreements. (Attachment E).

13. Unrelated Third Parties using our facilities must either sign a Facility Usage/Indemnity agreement (See
attached guidelines in Attachment F) or purchase Special Event coverage provided by Catholic Mutual (see
attached Special Event guidelines in Attachment G). The Application For Special Events Coverage is found in
Attachment H.


June 2010 IX.16
Attachment B

AGREEMENT BETWEEN OWNER AND CONTRACTOR

, hereinafter called the Owner, agrees to pay
Parish/Institution

, hereafter called the Contractor, the sum of

$ ( ) dollars for the following work:

Partial payment requests will be considered based on a maximum of 90% of materials on the job or in place and labor already
accomplished.

The work shall be completed by , and the Contractor shall provide the following
warranties or other documents prior to payment:

The Contractor shall begin the work within seven (7) days of the date of this contract unless other provisions have been made. He
shall carry the work forward expeditiously with adequate, qualified workers and shall achieve substantial completion within the
contract time.

Neither the final certificate of payment, nor any provisions in the contract, nor partial or entire use of the project by the Owner
shall constitute an acceptance thereof if not in accordance with the contract or relieve the Contractor of liability in respect to any
express warranties or faulty workmanship/materials within a period of one year.

The Contractor shall indemnify and hold harmless the Owner, its agents, and employees from and against all claims, damages,
losses, and expenses, including, but not limited to, attorneys fees arising out of or resulting from the performance of the work,
which is caused in whole or in part by the negligent act or omission of the Contractor, any Subcontractor, or anyone directly or
indirectly employed by any of them. In case any action is brought therefore against the Owner or any of its agents, employees or
Subcontractors, the Contractor shall assume full responsibility for the defense thereof; upon Contractors failure to do so on proper
notice, the Owner reserves the right to defend such action and to charge all costs thereof to the Contractor. The carrying of the
insurance required herein shall not relieve the Contractor of the duty of indemnity in the event that such insurance shall be
inadequate, for any reason, to protect the Owner in full.

The Contractor shall at all times carry the following insurance coverage:

A. Workers Compensation insurance on all his/her employees; he/she will also require all the Subcontractors to carry Workers
Compensation on all their employees. Contractor will indemnify the Owner against any claims made by any employees,
Subcontractors, or anyone employed directly or indirectly by any of them. This indemnification is not limited to
compensation paid under any Workers Compensation policy.


June 2010 IX.17
B. Public liability insurance in an amount of not less than $2,000,000 per occurrence. Such insurance shall include the Owner,
all Subcontractors, and anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may
be liable as additional insured. Said public liability insurance shall include claims for damages because of bodily injury,
sickness or disease, or death of any person other than the Contractors employees, claims for damages insured by usual
personal injury liability coverage which are sustained by any person as a result of an offense directly or indirectly related to
the employment of such person by the Contractor or by any other person, and claims for damages, other than to work itself,
because of injury to or destruction of tangible property, including loss of use resulting there from.

C. Automobile liability insurance, covering any and all kinds of motor vehicles, in an amount of not less than
$100,000/$300,000. Such insurance shall include any and all claims for damages because of bodily injury or death of any
person or property damage arising out of the ownership, maintenance, or use of a motor vehicle.

Each of the above listed policies will contain a requirement that, in the event of change or cancellation, ten (10) days prior written
notice will be sent by mail to the Owner.

The contractor shall provide Owner with bonds covering faithful performance of the contract and payment of obligations arising
thereunder. The amount of each bond shall be equal to 100% of the contract sum.

Said bond must be executed by a company authorized to do business in the state of Iowa. The bond will be given to the Owner
prior to any work being started.

The contractor will present a list of all the Subcontractors prior to beginning construction. At the conclusion of the job, the
Contractor will provide lien waivers from his/her company and from each of the Subcontractors. If any Subcontractor refuses to
sign the lien waiver, then the Contractor will provide an invoice from the Subcontractor. This invoice must show that it is the total
balance owed on the job and be signed by both the Contractor and the Subcontractor. The Owner will then issue a check payable
jointly to the Contractor and the Subcontractor and deduct the amount from the balance owed to the Contractor.

The Contractor shall be responsible for initiating, maintaining, planning, and supervising all safety precautions and programs in
connection with the work.

The Contractor will not discriminate against any employee, applicant for employment, or Subcontractor because of race, creed,
color, sex, handicap, or national origin.

If the Contractor:

is adjudged a bankrupt;
makes a general assignment for the benefit of his creditors;
has a receiver appointed on account of his insolvency;
persistently or repeatedly refuses or fails, except in cases for which extension of
time is provided to supply enough properly skilled workers or proper materials;
fails to make prompt payment to Subcontractors or for materials or labor,
persistently disregards laws, ordinances, rules, regulations, or orders of any public
authority having jurisdiction;
or otherwise is guilty of a substantial violation of a provision of the Contract
documents,

then the Owner may, without prejudice to any right or remedy, and after giving the Contractor and his surety, if any, seven days
written notice, terminate the employment of the Contractor and the contract will be deemed null and void.

Miscellaneous Provisions:

______________________________ ___________ _______________________ ___________
Owner Date Contractor Date
Attachment C


June 2010 IX.18
AIA DOCUMENTS

Necessary deletions to various construction contracts:

What they are:

When parishes/Institutions enter into a contract for a major renovation or remodeling project of parish/institution facilities or for
the construction of a new building, a contract is signed with the general contractor. In most instances, the contract required is a
standard contract prepared by the American Institute of Architects, (AIA). Two of the most common standard contracts are the
AIA Document A201 and the AIA Document A107. There are many other AIA contracts.

From an insurance and indemnification standpoint, the standard documents are written in favor of the contractor and/or sub-
contractor. Fortunately, the contracts can be altered to make them more equitable for parishes/Institutions.

Attached is a contract that allows for changes to be made to various AIA contracts. Please note the changes are only intended to
address insurance and indemnification concerns. Other areas of the contract should e reviewed on behalf of the parish/institution
by a qualified attorney and the Diocesan Building Commission.


June 2010 IX.19
ADDENDUM/CHANGES TO THE AIA CONTRACT

Please check the box next to the AIA or AGC document that is being utilized. Checked boxes will denote the deletion
and/or modification of the corresponding AIA or AGC contract as shown below.

Owner and Contractor agree that changes outlined will be binding and alter the corresponding AIA or AGC contracts. Both
Owner and Contractor agree the Addendum will supersede any other contractual language.

AIA Document A201 1987 edition - General Conditions of the Contract for Construction
10.1.4 Delete second from last sentence (beginning with regardless of whether or not)
11.3.1 Delete Second half of first sentence (beginning after semicolon with This insurance shall)
11.3.2 Delete entire paragraph

AIA Document A201 1997 edition - General Conditions of the Contract for Construction
10.3.3 Delete the word sole from the last sentence
11.4.1 Delete the last sentence only (beginning with This insurance shall)
11.4.2 Delete second half of first sentence (beginning after semicolon with This insurance shall)

AIA DOCUMENT A107 1987 edition - Abbreviated Form of Agreement Between Owner and Contractor for Construction
Projects of Limited Scope
17.2 Delete last sentence only (beginning with The Contractor shall)
17.3 Delete last sentence only (beginning with This insurance shall)
17.6 Delete entire paragraph

AIA Document A107 1997 edition - Abbreviated Standard Form of Agreement Between Owner and Contractor for
Construction Projects of Limited Scope
15.2.2 Delete the word sole from the last sentence
16.4.1 Delete last sentence only (beginning with this insurance shall)

AGC Document 410 1993 edition - Standard Form of Design Build Agreement and General Conditions Between Owner
and Contractor
11.5.1 Delete second sentence only (beginning with This insurance shall)

AGC Document 415 1993 edition - Standard Form of Design Build Agreement and General Conditions Between Owner
and Contractor
10.5.1 Delete Contractor, Architect/Engineer, Subcontractors and Subsubcontractors from the second sentence in lines
two and three
10.5.4 Delete Contractor, Architect/Engineer, Subcontractors and Subsubcontractors from the first sentence in lines one
and two and the entire last sentence (beginning with Exposures of the)
10.5.5 Last sentence only (beginning with If the Contractor)


June 2010 IX.20
AIA Document A191 Electronic Format 1996 edition - Standard Form of Agreements Between Owner and
Design/Builder
7.2.1 Delete last sentence only (beginning with The Design/Builder shall)
7.3.1 Delete last sentence only (beginning with This insurance shall)
7.3.4 Delete last sentence only (beginning with This insurance shall)

AIA Document B141 1987 edition - Standard Form of Agreement Between Owner and Architect

AIA Document B141 1997 edition - Standard Form of Agreement Between Owner and Architect with Standard Form of
Architects Services
1.3.7.4 Delete entire paragraph

AIA Document B151-1997 edition - Abbreviated Standard Form of Agreement Between Owner and Architect

AGC Document 250 2000 Edition - Standard Form of Agreement and General Conditions Between
Owner and Contractor
11.1.1 Delete the phrase other than to the work itself and other property insured under
subparagraph 11.4 from the first sentence (beginning in the third line)
11.1.2 Owner will not be responsible to indemnify for any act or omission of an Architect/Engineers
or others
11.4.1 Delete the second sentence (beginning with This insurance shall also name) and delete
the fourth sentence (beginning with This policy shall provide for a waiver)
11.4.3 Delete entire paragraph up to the word more in the eighth line. The rest of the paragraph
(beginning with the Contractor shall indemnify) remains intact.

CONTRACTOR: PARISH/INSTITUTION:

(Parish is understood to include the Diocese of Des Moines)

NAME NAME

DATE DATE


June 2010 IX.21
Attachment D

SERVICE CONTRACT

Public Liability Insurance: While CONTRACTOR is performing operations at PARISH/INSTITUTION, CONTRACTOR
shall maintain public liability insurance in the amount of not less than one million dollars ($2,000,000.00) per occurrence and
name PARISH/INSTITUTION as an additional insured on such policy of insurance. It is further agreed that the CONTRACTOR
agrees to protect, defend, indemnify, and hold harmless the PARISH/INSTITUTION against and from any claim or cause of
action arising out of or from any negligence or other actionable fault of the CONTRACTOR, its employees, agents, members or
officers.

Automobile Liability Insurance: CONTRACTOR shall maintain automobile liability insurance for any owned autos, hired
autos or non-owned autos used in connection with the contractors business. Automobile liability coverage should be maintained
by the CONTRACTOR in the minimum amounts of $100,000 per person/$3,000,000 per accident/$50,000 property damage.

Workers Compensation Insurance: CONTRACTOR shall maintain workers compensation insurance as required by law.

Additional Insured: CONTRACTOR agrees to provide a certificate of insurance to the PARISH/INSTITUTION as an
additional insured on CONTRACTORS liability policy for claims arising out of CONTRACTORS operations or made by
CONTRACTORS employees, agents, guests, customers, invitees or subcontractors. CONTRACTOR must verify its liability
insurance policy is primary in the event of a covered claim or cause of action against PARISH/INSTITUTION. If and only if
CONTRACTOR fails to fulfill the insurance requirements contained in this addendum, then CONTRACTOR agrees to defend,
hold harmless and indemnify the PARISH/INSTITUTION against and from any claim or cause of action arising out of
CONTRACTORS operations or any claim or cause of action which is brought against PARISH/INSTITUTION by
CONTRACTOR, its employees, agents, guests, customers, invitees or subcontractors which is alleged against the
PARISH/INSTITUTION, even if such claim or cause of action arose from the negligence of PARISH/INSTITUTION, its
employees or volunteers or another party not named to this contract.

Subcontractors: CONTRACTOR shall be required to verify that all subcontractors maintain public liability insurance, workers
compensation insurance and automobile liability insurance. Furthermore, CONTRACTOR agrees to indemnify and defend the
PARISH/INSTITUTION for any claim or cause of action, whatsoever which was caused by the negligence, or other actionable
fault of an uninsured subcontractor.

No Waiver of Subrogation: PARISH/INSTITUTION does not waive any rights of recovery against the CONTRACTOR or
subcontractor for damages that are covered by the PARISH/INSTITUTION property insurance coverage or builders risk
coverage. CONTRACTOR and PARISH/INSTITUTION agree that this addendum overrides any and all portions of previous
agreements between CONTRACTOR and PARISH/INSTITUTION that contain language in contradiction with this contract

Severability Provision: If any paragraph or sentence of this addendum to Contract is deemed or is determined to be in conflict
with local or state or national statutes, both CONTRACTOR and PARISH/INSTITUTION agree that; the portion of the
Addendum to Contract which is in conflict with the statute will be stricken from the Addendum to Contract with the remainder of
the addendum to Contract remaining binding for both parties.

BY:_________________________________BY:____________________________
Contractor Parish/Institution

START DATE OF CONTRACT (Understood to be dated signed if left blank):

Instruction to parish/institution: This Addendum to Contract stands on its own as a legal contract between
PARISH/INSTITUTION and CONTRACTOR should this addendum not be incorporated or attached to a contract.


June 2010 IX.22

Attachment E

Catholic Mutual. . ."CARES"___________________

ADDENDUM TO LEASE

The Addendum to Lease has been designed to fulfill the insurance requirements for both tenants and the parish when parish
property is leased. Therefore, even if a written lease is not used, the Addendum to Lease must still be completed to ensure that
insurance requirements have been met.

When your parish enters into an agreement with a tenant for long term usage of parish facilities, a written lease should be drafted.
The Addendum to Lease should be attached to the parishs written lease or the wording of the addendum incorporated into the
lease. Please remember that your parish and the Arch/Diocese must be named as an additional insured on the Lessees public
liability insurance policy. It is not adequate for a Lessee to simply provide the parish proof of insurance where the parish is
named as a certificate holder.

Examples of situations where the parish should use the Addendum to Lease are as follows:

1) The convent is rented as a residence belonging to a religious order.

2) Space is rented in the school to be used as a non-parish operated daycare or learning center.

3) Office space is being rented in the parish rectory to a non-Arch/Diocesan organization.

4) The Addendum should not be used when the parish leases apartments or flats as private residences.

Your Diocese does have a lease review policy. Accordingly, leases should be reviewed by Catholic Mutual prior to the lease
being signed by a parish representative. Should a prospective tenant have any questions regarding the requirements outlined in
the Addendum to Lease, please refer them to Catholic Mutual at (800) 228-6108.


June 2010 IX.23

ADDENDUM TO LEASE

PUBLIC LIABILITY INSURANCE: LESSEE shall maintain public liability insurance in the amount of not less than two million
dollars ($2,000,000) per occurrence for the duration in which LESSEE rents or uses PARISH property and name PARISH as an
additional insured on such policy of insurance. It is further agreed that LESSEE agrees to protect, indemnify, defend and hold
harmless the PARISH against and from any claim or cause of action arising out of or from any negligence or other actionable
fault caused by LESSEE or its employees, agents, members or officers.

FIRE DAMAGE INSURANCE: LESSEE shall maintain fire damage insurance (fire legal liability) for the term of this lease.
LESSEE agrees to maintain fire damage coverage in the minimum amount of two million dollars ($2,000,000).

WORKERS COMPENSATION INSURANCE: LESSEE shall maintain workers compensation insurance as required by law.

ADDITIONAL INSURED: LESSEE will name the PARISH as an additional insured on its public liability insurance policy for
the duration of LESSEES renting or using PARISH property for claims arising out of LESSEES operations or made by
LESSEES employees, agents, students, guests, customers or invitees. LESSEE must verify that its insurance policy is primary in
the event of a covered claim or cause of action against PARISH. LESSEE will provide proof to PARISH that the insurance
requirements have been met as outlined in this contract. If and only if LESSEE fails to fulfill the insurance requirements
contained in this addendum, then LESSEE agrees to defend, hold harmless and indemnify the PARISH against and from any
claim or cause of action arising out of LESSEES operations or any claim or cause of action which is brought against PARISH by
LESSEE, its employees, agents, students, guests, customers, invitees which is alleged against the PARISH, even if such claim or
cause of action arose from the negligence of PARISH, its employees or volunteers, or the negligence of any other individual or
organization.

INSPECTION BY THE PARISH: PARISH may at any and all reasonable times enter premises leased to LESSEE for inspection
purposes.

NO WAIVER OF SUBROGATION: PARISH does not waive any rights of recovery against the LESSEE for damages that are
covered by the PARISHS property insurance coverage. LESSEE and PARISH agree that this addendum overrides any and all
portions of previous agreements between LESSEE and PARISH that contain language in contradiction with this contract.

SEVERABILITY PROVISION: If any paragraph of this Addendum to Lease is deemed or is determined to be in conflict with
local or state or national statutes, both LESSEE and PARISH agree that the portion of the Addendum to Lease which is in
conflict with the statute will be stricken from the Addendum to Lease with the remainder of the Addendum to Lease remaining
binding for both parties.

LESSEE: PARISH:
_____________________ __________________________________
(PARISH is understood to include the Arch/Diocese of

_____________________)

BY: BY:

_______________________________ ____________________________
NAME NAME

_______________________________ ____________________________
DATE DATE

START DATE OF LEASE (Understood to be date signed if left blank): ________

Instruction to PARISH (PARISH Use Only): This Addendum to Lease stands on its own as a legal contract between PARISH and
LESSEE should this addendum not be incorporated or attached to a lease.

June 2010 IX.24
LEASE (01/07)
Attachment F

Catholic Mutual. . . CARES

FACILITY USAGE/INDEMNITY AGREEMENT

The Facility Usage/Indemnity Agreement must be used when non-parish sponsored or affiliated
groups use parish facilities on a short-term basis such as one day or a week. The following groups
are examples of non-parish sponsored or affiliated groups that should sign the Facility
Usage/Indemnity Agreement:

1. Girl Scouts, Knights of Columbus, American Legion or other similar organizations that use parish facilities for
meetings or fundraisers.

2. AAU sport teams or non-parish sponsored sport classes/clinics.

3. Parishioner and non-parishioner families that rent or use parish facilities for wedding receptions ,family reunions, anniversary
parties or other similar activities. (In lieu of signing the Facility Usage/Indemnity Agreement, a parishioner or non-parishioner
family would be eligible to purchase special event liability coverage through your parish via Catholic Mutual). Please note
that funeral luncheons are parish sponsored events.

4. Any other organization, municipality or county organization that uses parish facilities for a meeting or function that is non-
parish sponsored.

The Facility Usage/Indemnity Agreement requires the facility user to provide the parish with a certificate of insurance
documenting general liability coverage in the amount of $1,000,000 per occurrence. This certificate of insurance must name your
parish and the Diocese as an additional insured. It is not adequate to obtain a certificate of insurance, which names the parish as a
certificate holder.

It is often asked what criteria an organization must meet to be parish sponsored or affiliated. In the event of an insurance claim
involving a potential non-parish sponsored activity, the following questions would be asked to further determine if a group was
parish sponsored and eligible for insurance coverage:

1. Did the parish have full control over the group or function?

2. Did any costs or fees associated with the function flow through parish accounts?

3. Was the function or group open to all parish members?

4. Was the purpose of the function or group to facilitate learning, raise revenue for
the parish or provide a social service on behalf of the parish?

5. Was the teacher or leader of the group a parish volunteer or employee?

In general, a group, which does not meet the definition of an affiliated organization or is unable to answer the above five
questions in the affirmative would not be parish sponsored. Accordingly, that group must sign the Facility Usage/Indemnity
Agreement and supply the parish with the necessary insurance documentation.


June 2010 IX.25

FACILITY USAGE/INDEMNITY AGREEMENT

PARISH : _____________________________________________________________

PARISH is understood to include the Arch/Diocese of __________________________

FACILITY USER: _______________________________________________________

DATES OF FACILITY USAGE: ____________________________________________

TYPE OF FACILITY USAGE: ______________________________________________

The above named FACILITY USER agrees to defend, protect, indemnify and hold harmless the above named PARISH against
and from all claims arising from the negligence or fault of the above named FACILITY USER or any of its agents, family
members, officers, volunteers, helpers, partners, organizational members or associates which arise out of the above identified
FACILITY USAGE at the above named PARISH.

FACILITY USER agrees to provide a certificate of insurance to the PARISH, which provides evidence of general liability
coverage of not less than one million dollars ($1,000,000) per occurrence. FACILITY USER also agrees to have the PARISH
named as an Additional Insured on its general liability policy for the DATE(S) OF FACILITY USAGE in relationship to the
TYPE OF FACILITY USAGE for claims which arise out of FACILITY USERS operations or are brought against the PARISH
by FACILITY USERS employees, agents, partners, family members, students, customers, function attendees, guests, invitees,
organizational members or associates. FACILITY USER also agrees to ensure that its liability insurance policy will be primary in
the event of a covered claim or cause of action against PARISH.

If and only if FACILITY USER fails to comply with the above (second) paragraph, then the above named FACILITY USER
agrees to protect, defend, hold harmless and fully indemnify the above named PARISH for any claim or cause of action
whatsoever arising out of or related to the usage which takes place during the above identified DATE(S) OF FACILITY USAGE
that is brought against the PARISH by the above named FACILITY USER or its employees, agents, partners, family members,
students, customers, function attendees, guests, invitees, organizational members or associates, even if such claim arises from the
alleged negligence of the PARISH, its employees or agents, or the negligence of any other individual or organization.
If any sentence or paragraph of this agreement is held invalid, it is agreed that the balance thereof, shall continue in full legal
force and effect.

SIGNED BY: __________________________________________________________
(Must be an official agent of FACILITY USER)

NAME (Please print): ____________________________________________________

DATE: ________________________________________________________________


June 2010 IX.26

Attachment G

THIRD PARTY SPECIAL EVENTS COVERAGE

Special Events Coverage is a mechanism, which allows the arch/diocese to extend liability coverage to an individual or
organization using parish facilities for a non-parish sponsored event. For a cost of $95 per event, $1,000,000 in liability coverage
is extended to a non-parish sponsored facility user (lessee).

X. WHEN SHOULD SPECIAL EVENTS COVERAGE BE UTILIZIED?

Special Events Coverage can be used when a parish or other church institution is allowing an individual or organization to use its
facilities for a non-parish sponsored activity. When determining whether or not an activity is parish sponsored, the following
questions are helpful.

1. Does the parish have full control or final decision making authority over the function?
2. Do fees associated with the function flow through parish accounts?
3. If applicable, is the function open to all parish members?
4. Is the purpose of the function to facilitate learning, raise funds for the parish or to provide a social service on
behalf of the parish?
5. Is the organizer or leader of the function a parish employee or volunteer?

Generally, if the answer to any of the above questions is no, the activity is not parish sponsored meaning that the facility user
needs to provide insurance which includes the arch/diocese and the parish as additional insureds.

When it is determined that an activity is non-parish sponsored, there are two options:

A. OPTION I

The attached Facility Usage/Indemnity Agreement can be completed by the organization using parish facilities. This agreement
requires $1,000,000 in liability coverage, which must name your parish and the arch/diocese as additional insureds.

B. OPTION II

Special Events coverage can be purchased which will cover the individual or organization holding the activity, the parish, and the
diocese.

June 2010 IX.27
WHO IS ELGIBLE FOR SPECIAL EVENT COVERAGE?

Special Events coverage is designed for arch/dioceses and parishes and can be extended to individuals and/or organizations
(either profit or non-profit). Many individuals need this coverage for events such as private wedding receptions or family
reunions. Non-profit organizations such as a charity organization may need the coverage for a pancake breakfast. A for-profit
organization such as a local business may need the coverage for an employee Christmas party held on parish facilities.

XI. WHAT IS COVERED BY SPECIAL EVENTS COVERAGE?

Below is a brief explanation of what is covered by special Events Coverage along with some items that are excluded. Please note
that the actual coverage form must be examined for an exhaustive explanation of what is covered and excluded.

Most non-parish sponsored activities are covered by Special Events Coverage. Common examples are wedding receptions,
family reunions, awards banquets, and fund raisers.
$1,000,000 in liability coverage for bodily injury and property damage is provided for the special event user, parish, and
arch/diocese. Please note that the $1,000,000 limit is shared by the covered parties and is a per event coverage.
Liquor liability coverage is provided.
Some types of events are not covered.
Any event lasting longer than 72 hours
Fireworks
Events involving more than 1000 people
Events where admission is charged unless all proceeds go to charity
Events involving amusement devices or trampolines
Carnivals
Any event organized or run by a professional promoter
Sporting events including camps and tournaments
Events involving pool or lake activities
Events involving recreational vehicles

Fax applications to LMC-attention Julie (who will forward to Catholic Mutual Group) at least 15 days prior to the event. These
must be pre-approved.

June 2010 IX.28
Name of Parish or Institution: Date of Event:
Type of Special Event (Example: Wedding reception,
Street Address: Anniversary party, Etc. - Please Specify):
City/State: ZIP Code:
Lessee (Additional Insured) Information:
Name of Sponsoring Organization or Time of Event: From _____________ To ______________
Individual Requesting Coverage
Approximate Number of Participants:
(Please Print Lessee Name(s) or Organization)
Is Liquor Being Served?
Lessee (Additional Insured) Contact Person: Yes No
Name:
Street Address: Is Food Being Served?
City/State: ZIP Code: Yes No
Telephone:
The Special Events coverage provides $1,000,000 Combined Single Limit Bodily Injury, Property Damage,
and Host Liquor Liability coverage per event (not per claim).
This coverage is underwritten by Great American Assurance Company, Policy # GLP - 5584901-02
Cost of Coverage: $95 Per Event
Coverage does not apply to certain events such as, but not limited to:
Sporting events including tournaments & camps
Any carnival event
Amusement rides, including mechanically operated devices, trampolines, & rebounding devices
Fireworks & fireworks displays
Events where a fee or admission is charged, unless all proceeds go to charity
Events organized or operated by professional promoters/performers
Events with attendance of more than 1,000 persons
Events which exceed 72 hours in duration
Events involving pool or lake activities
Events involving recreational vehicles
Events involving Bring Your Own Beer or Liquor
Please make check payable to: Diocese of Des Moines
COMPLETE AND RETURN THIS FORM TO: LMC Company
Attn: Ryan Swalve
4200 University, Suite 200
West Des Moines, IA 50266
515-237-0197
Please report all claims to C.M.G. Agency, Inc. Claims Department at 1-800-228-6108.
Approving Location: OMAHA, NE ATTN: MEMBER SERVICES
FAX NO.: 402-551-2943
CMRS-226A(7-99)
DIOCESE OF DES MOINES Attachment H
APPLICATION FOR SPECIAL EVENTS COVERAGE
DISTRIBUTION: Original: C.M.G. Agency, Inc., Copies to Lessee and Parish or Institution
SUBJECT TO APPROVAL BY C.M.G. AGENCY, INC.
NOTIFICATION OF AN EVENT MUST REACH CATHOLIC MUTUAL
AT LEAST 15 DAYS IN ADVANCE OF THE EVENT.

2009 Parish Resource Manual - 2010-06-14

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