Paul Carlson, Director of Finance

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1 Paul Carlson, Director of Finance

2 Members Parish Role Chris Aldinger Christ the King, Des Moines Business Manager Gaylord Alger All Saints, Des Moines Parish Finance Council Pat Clerkin Sacred Heart, WDM Parish Finance Council Cassie Edgar Saint Francis of Assisi, WDM Diocesan Finance Council John Fisher Saint Patrick, Neola Parish Finance Council Mary Gisler Saint Theresa, Des Moines Business Manager Dennis Hagedorn Saint Francis of Assisi, WDM Diocesan Finance Council Randy Huewe Holy Spirit, Creston Parish Finance Council Msgr. Ed Hurley Saint Joseph, Des Moines Pastor Matt McDevitt Saint Patrick, Perry Parish Finance Council Regina Montgomery Holy Trinity, Des Moines Business Manager Dave Ortega SS John & Paul, Altoona Business Manager Mark Paris Saint Anthony, Des Moines Business Manager Rev. Mike Peters Saint Cecilia, Panora Pastor Ed Reinig Saint Michael, Harlan Parish Finance Council Peter Relyea Saint Mary / Holy Cross Business Manager Darrell Wittrock Saint Patrick, Audubon Parish Finance Council Joan Bindel Diocese of Des Moines Development Director Paul Carlson Diocese of Des Moines Director of Finance Christie Rice Diocese of Des Moines Controller April Young Diocese of Des Moines Admin Secretary

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4 The deduction for Catholic Education expenses is to be increased from 75 percent of net cost to 80 percent. This applies to operating a school, providing support by paying an assessment, and by operating a Faith Formation program. This change is to take place this year. The initial proposal was to increase the deduction to 100 percent of the cost to the parish. This would result in a 20 percent increase in goals for almost sixty parishes. The proposal to increase it to 80 percent will result in a 4 percent increase for most. The committee hopes that the parishes with a school will receive additional assistance from the upcoming capital campaign or other sources outside of the ADA.

5 Parishes that are not able to meet the ADA goal and have to pay the shortfall from operations will be able to deduct that expense from the next goal calculation. This change is to take place this year. This effectively makes the income exempt from the calculation just as if the parishioner sent it to the Diocese instead of including it in the parish tithing. The Finance department would need to verify that it was paid from operations and not from exempt funds.

6 Faith Formation expenses be deductible at 80 percent but would be limited to those expenses directly related to the program. It is recommended that this change be made in one year. This is in response to a wide disparity of expenses being currently included, such as building utilities and parish office staff. The committee identified the list of line items that should be included but acknowledged that parishes will need direction as to how to record their expenses. The committee also requested that the list be reviewed with the larger programs in the Diocese to avoid penalizing those that work with more children. Due to these concerns it is recommended that this change be delayed until the goals are calculated using results from fiscal year 2013.

7 Auxiliary expenses are deductible in the current formula if they are used to generate the income that is included. The recommendation is that expenses no longer be considered but only include 50 percent of the fundraising income. This is also to be delayed one year. This is proposed in an effort to simplify the formula without having a major impact on the parish goals. Sixtyeight manual adjustments were made by the Finance department last year that should be eliminated. It was felt that more work was needed to differentiate fundraising income, which would be included at only 50 percent, from auxiliary income. The Finance staff is comfortable that this can be accomplished with the current chart of accounts by using either programs that are specified for fundraisers or by line items.

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