ACCOUNTING FOR MASS OFFERINGS AND PAYMENTS

Transcription

1 ACCOUNTING FOR MASS OFFERINGS AND PAYMENTS INCOME: Codes All Mass offerings received PAYMENTS: Individual Intentions fulfilled at parish - Offering paid to celebrant Collective Intentions - One offering paid to celebrant Other offerings in collective intentions - Paid to Diocese for needy parishes Group Offerings - One offering paid to celebrant Remaining Offerings - To Diocese, other priests/parishes or missionaries Binations/Trinations - to Diocese for needy parishes AT THE END OF EVERY MONTH: The above activity is recorded. Checks are issued to celebrants and others according to the above activity. Surplus Mass offerings at this time are sent off

2 ASSESSMENT GUIDELINES The following guidelines are effective for the fiscal year beginning July 1, 2007: ALL PARISH RECEIPTS ARE CONSIDERED INCOME AND ARE TAXABLE. The following are exceptions to this principle: CEMETERY Dues and Fees are not assessed. The required percentage of the sale of crypts (10-15% of sales) and cemetery plots (10% of sales) to be placed in trust is not assessed. Funds in excess of this requirement placed in a trust account and remaining funds from the sales are assessed. FUND-RAISING ACTIVITIES Profits from any church, organization or group fund-raising activity are assessed. Direct expenses incurred may be deducted for bingos, fairs, raffles, sale of books, candles, religious articles, etc. Deductions may not exceed the receipts. Indirect costs such as utilities or equipment to be re-used may not be deducted. INTEREST INCOME Interest and profit share earned in the Diocese of Lafayette Cooperative Deposit and Loan Program (CDLP) is not assessed. This exception applies also to trust accounts that are required to remain at outside institutions by legal documents written prior to CDLP (11/1988). All other interest income is assessed. PARISH ORGANIZATIONS Receipts of a parish organization are not assessed when used for the organization itself. Receipts of an organization that benefit the church are assessed. PARISH PROGRAMS The cost of program materials/activities for use by the program may be netted against the fees collected for this purpose. Deductions may not exceed the receipts and do not include salaries, utilities, equipment etc. Excess receipts are assessed. SUBSIDIES Subsidies such as those from the Diocese or Extension Society are not assessed. The Office of Parish Finance notifies each church/chapel of its rate of assessment for the next fiscal year which begins July 1. The total general receipts shown on the June 30 financial report each year determines the rate for the following year. The following scale applies: GENERAL RECEIPTS ASSESSMENT GENERAL RECEIPTS ASSESSMENT JUNE 30 R ATE JUNE 30 RATE $ ,000 1% $ 80, ,000 10% 30,001-40,000 2% 100, ,000 11% 40,001-50,000 4% 200, ,000 12% 50,001-60,000 6% 350, ,000 13% 60,001-80,000 8% 500, ,000 14% 750, %

3 EXPLANATION OF ASSESSMENT CREDIT Projects which by their nature have to be brought before the Building Review Board are eligible for an assessment exemption. Ordinary repairs and maintenance of buildings and related costs are not included in the exemption provision. Some examples of ordinary maintenance not included are painting, plumbing, electrical or carpentry repairs. An assessment credit will be sent to the church parish after the final plans have been approved by the Board, the Bishop and the church begins the actual project. In order to receive the credit, the pastor needs to send the approved contract price to the Office of Financial Affairs. The exemption is based upon the approved contract price of the project not on funds collected for the project. The exemption is in the form of an assessment credit based on one-half the assessment rate paid by the parish. EXAMPLE: The approved contract price of a building project is $350,000. The parish has an assessment rate of 13% on its income. The credit given is figured by taking one half of the assessment rate (13% 2 = 6.5%). Project cost: $350,000 x 6.5% = $22,750 assessment exemption The total credit is divided over a period of years to give a set monthly credit to be subtracted from the assessment due each month. The length of time for the credit varies based on each church s average monthly assessment payment. Churches continue to pay an assessment each month even while having a building project credit. Using the sample exemption above, the church was given an exemption for 24 months ($22, = $947.92). The church figures its regular assessment due at 13% and then subtracts the credit of $ each month until the credit of $22,750 has been used.

4 SAMPLE DECREE FOR AN ENDOWMENT In keeping with the authority granted us in the Code of Canon Law, we do herewith authorize and establish the, as an Endowment according to the norms of Canons 1303ff. The purpose for which this Endowment is established is to provide for the maintenance and upkeep of. The amount of the trust when fully funded will be which is 10% of the total sales value when all crypts are sold. The Church will invest these funds in the Diocese of Lafayette Cooperative Deposit and Loan Program for the benefit of providing interest income for the upkeep and maintenance of Mausoleum. Church shall be obliged to use the income according to the terms of the Endowment and in keeping with the norms of Canon Law. The interest earned in the Endowment will be credited to the Endowment account. Statements will be furnished to the Church showing total income received in the Endowment as well as any deductions made from it. The proper use of income earned by the Endowment is the responsibility of the Church. Done at Lafayette, Louisiana this day of, Bishop of Lafayette Pastor Vicar General Trustee Trustee

5 PROGRAM RECEIPTS/EXPENSES Receipts and expenses for church programs such as Life-Teen, Youth Groups/Ministry, RCIA, or groups related to liturgy such as altar servers and choirs are all reported in the general fund of the church. Such programs and groups are not organizations. Programs: Fees or donations for programs are recorded in the program receipt and expense area of the Income Statement (general receipts). This includes funds collected for retreats and special trips by program participants. Any expenses not covered by program fees are recorded in the program excess expense section. All salaries and contract labor are recorded in the church salary expense section. Groups: Ordinarily, receipts are not separated out for specific groups in the church s report. If a church needs to identify the cost of a group in the overall budget of the church, an expense code will be assigned in the proper expense categories of the report not in the organization section. If a group has a small fund-raiser (such as a car wash) for a one-time purchase of an item that benefits only that group rather than the church parish, the cost may be deducted from the fund-raising receipts if the total cost is less than $1,000. Fund-raisers that benefit the church or its programs are recorded as fund raisers. This includes booths worked at fairs and festivals no matter the intended use of funds. These funds are deposited and disbursed through the church s general fund. As in any church fund-raising, expenses such as printing raffle tickets, buying prizes, etc. can be deducted from receipts. Deductions do not include permanent assets. Such expenses are classified in the proper expense category. At the end of a fiscal year, no excess receipts are carried over for programs or groups. ORGANIZATION FUNDS Funds which benefit only the organization may be held in two ways: in the church s general fund using one special code for receipts and one for expenses or in a separate bank account. (The guidelines for a separate bank account are stated below.) Organization funds are not used to pay directly for any parish expenses, improvements, services or to make donations to other entities. When an organization transfers funds to the parish for use, the funds are donations from the organization and are assessed. This applies to funds held in the church s general fund as well as to those held in separate bank accounts. For example, the Ladies Altar Society may retain a checking account for its internal operational expenses (such as to purchase minute books or take trip), but this checking account may not be used to pay for parish sanctuary expenses such as altar candles, flowers, hosts, wine, church cleaners, etc. Such items are not Altar Society expenses but rather church expenses. If the Society wishes to help the parish with such expenses, they are

6 to make a donation to the parish and then a parish check is written to for these expenses using the proper expense codes. Funds which must be reported on the books are: General Fund Cemetery/Mausoleum accounts Bingo accounts Fund-Raising accounts (allowed only if mandated by State law) All organization accounts Church Mass accounts Any donated stocks and brokerage accounts until sold--such stocks are to be sold at the first opportunity an increase in value over the donated value occurs. All reports are to be sent at the same time for each parish. These include a bank reconciliation, source of deposits and listing of each check by date, check number, payee, amount and code. Organizations that exist on their own such as Boy Scouts of America, Knights of Columbus or Peter Claver, etc. do not come under these guidelines. GUIDELINES FOR SEPARATE CHURCH-RELATED BANK ACCOUNTS When a separate bank account for an organization exists, the following applies: THE ORGANIZATION ACCOUNT MUST 1. State the name of the church in the title of the account. Example: St. Ann Church Altar Society 2. Use the church taxpayer identification number 3. Use the church address 4. Have the pastor/parish life coordinator as one of the signers on the account. He/she does not have to sign checks but be able to. 5. Keep all bank records including deposit books and checkbooks at the church office 6. Not accrue funds over $500 in any given month; amounts in excess of this are transferred or donated to the church 7. Use the account for organization receipts/disbursements only such as dues, activity funds, outings.

7 FAX: (337) COOPERATIVE DEPOSIT AND LOAN PROGRAM DIOCESE OF LAFAYETTE -Check Request- TO: Diocese of Lafayette DATE: Cooperative and Loan Program 1408 Carmel Drive Lafayettte, LA FROM: PARISH #: (Parish - Account Name) (Address) (City) (Zip Code) Please forward a check from the CDLP for the following (CHECK ONE): Purpose of withdrawal: WITHDRAWALS A WITHDRAWAL of PARISH GENERAL Savings Amount $ A WITHDRAWAL OF CEMETERY Savings Amount $ A WITHDRAWAL of ENDOWMENT Interest Amount $ ENDOWMENT# (required) LOANS A LOAN to the PARISH/Entity* Amount $ *If this is not an approved loan and the amount exceeds the Parish line of credit, approval must be obtained from the CDLP Loan Committee. Requested by: (Signature) DATE PAID: ACCOUNT BALANCE: CHECK NO: (For Office Use Only)

8 PROMISSORY NOTE FORM In keeping with the corporate resolution of the Church of Parish, Louisiana, dated, by which authority was given to borrow the sum of from the Cooperative Deposit and Loan Program of the Diocese of Lafayette, Louisiana; In view of the approval of this loan by the Diocesan Bishop,, the Cooperative Deposit and Loan Program agrees to make a loan to Roman Catholic Church,, Louisiana, in the amount of for the purpose of described in the Resolution dated, 201. Accrued interest on the loan shall be payable monthly on the 30 th day of each successive month, until the final draw. Interest payable shall be calculated on the basis of actual days elapsed over a 365 day year. Roman Catholic Church agrees to the payment of this loan according to the terms of the CDLP with a current rate of interest of %; Roman Catholic Church further agrees to the amortization of this loan in keeping with the schedule given at the completion of the loan. This promissory note shall be dated, 201. Pastor