ARCHDIOCESE OF INDIANAPOLIS

Transcription

1 TO: FROM: ARCHDIOCESE OF INDIANAPOLIS Pastors, Parish Life Coordinators, Administrators and Principals Office of Accounting Services RE: Budget Guidelines Fiscal Year DATE: February 29, 2016 Below are the guidelines to be used in the preparation of parish and school budgets for the fiscal year, which covers the period of July 1, 2016 through June 30, Budgets should be submitted in the format used by the parish, school or agency. Budgets should be completed and forwarded to the Office of Accounting Services for review on or before June 15, The budget may be ed to or sent via US mail or faxed to Please complete the budget approval sign off form with the pastor, PLC, administrator or principal s signature indicating the budget has been approved; see the Budget Approval Form in Appendix B. These guidelines are based on recorded actual results through December 31, 2015 and estimated performance for the remainder of the current fiscal year. Thus, the guidelines issued at this time are based on the best available assumptions. These assumptions may change out of necessity as the current fiscal year progresses. If, and when, significant variances from these assumptions can be quantified they will be communicated to you directly and as soon as possible. We know that many of our parishes, schools and agencies are feeling the challenge of continuing the mission of the Church and managing funding levels; we have made every effort to hold expenses down or level with the previous budget year. Here are some of the areas where costs and assessments have been held level with the prior year: Employer healthcare premiums Lay retirement assessment rates Clergy healthcare assessment amount While we ve worked very hard to mitigate increases in costs this year and over the past several years, to our parishes and schools in the all areas, costs have climbed in some areas. Worker s compensation rates have risen by approximately 3%. We strongly encourage parishes, schools and agencies to budget REALISTICALLY. As such, keep in mind that all revenues should be budgeted conservatively and expenses should be cut wherever possible. e.g., do not budget enrollment increases without evidence of paid registrations; do not budget a 5% increase in Sunday collections if for the past five years the increase has always been 2%; never budget revenues from bequests; assume that something will break; do not cut maintenance expenses simply to plug the budget, etc. This rule of budgeting will, hopefully, steer you clear of financial difficulty or at the very least will help you to realistically address problems sooner (when they are more easily fixed) rather than later. 1

2 Budgeting Items for Consideration: 1. Focus on the strategic plan or mission of the parish; ensuring time and funds are not expended on activities that are not mission critical. 2. Consider the impact and time incurred to promote various fundraisers versus focusing on developing stronger stewardship. For example, consolidate several fundraisers for different events into fewer events or one; allowing for reduction of staff and volunteer time. 3. Implement electronic giving for parishioners. Office of Accounting Services can provide a list of possible vendors. 4. School management could evaluate: a. Class size b. Consider split grade level classrooms when class sizes are small c. Time the signing/completion of teacher contracts to coincide with when enrollment for the next school year is available d. Cafeteria operations-can it be outsourced? Is it necessary to provide cafeteria service? Can the PTO assist/volunteer? e. Evaluate before and after school care option, these need to be break even or better f. Teacher s aides- Can volunteers be used instead of paid personnel? 2

3 ARCHDIOCESAN BUDGET GUIDELINES PARISHES and SCHOOLS FISCAL YEAR These guidelines, related appendices and other support can be found at Listing of Appendices Appendix A: Priest Compensation Appendix B: Budget Approval Form Appendix C: Cathedraticum and Clergy Health Assessment Appendix D: Permanent Deacon Compensation Appendix E: Indianapolis Deanery High School Assessment Appendix F: Lay Retirement Charges Assessment Appendix G: Mother Theodore Catholic Academies Assessment Appendix H: Safe and Sacred Program Assessment Appendix I: PICA Schedule Appendix J: Lay Equivalency Calculation Appendix K: 3 Year Capital Expenditure Budget Appendix L: Salary Spreadsheet Template Should you have any questions or require assistance with budget preparation, please contact us at our address, accountingservices@archindy.org or the Office of Accounting Services at Ext or (317) Connected In Spirit If your parish is part of the connected in spirit process and you have questions about how this affects your budget, please refer to the Parish Merger Guidance Document on the Archdiocesan website at Please accountingservices@archindy.org with any specific questions you may have. 3

4 I. PARISHES and SCHOOLS A. Assessments Archdiocesan Assessment (the Cathedraticum): The Cathedraticum is calculated at 10% of Sunday and Holy Day Collections. See the following definitions for further explanation Sunday and Holy Day Collections: Actual Sunday and Holy Day collections reported on the June 2015 parish annual financial report submitted by the parish to the archdiocese. If no annual financial report was submitted, a 10% increase from the most current financial information available. Stewardship Tuition Credit: Estimated "tuition credit" for the four parishes that charge no elementary school tuition. Please notify Stacy Harris, Director of Finance (sharris@archindy.org) immediately if your parish charges no tuition and is inadvertently omitted from this list or is included on the list and has adopted a tuition policy for parishioner students for the school year. The stewardship tuition credit is an annual calculation to estimate the reduction in Sunday and Holy day collections the parish would experience if the school changed away from the stewardship model. The estimated reduction percentage is 20% and all remaining stewardship parishes receive a 20% stewardship credit in this calculation %: The Cathedraticum is calculated as 10% of Sunday and Holy Day Collections (less the Stewardship Tuition Credit if applicable). See Appendix C for the Cathedraticum and Clergy Healthcare Assessment. Clergy Healthcare Assessment: This assessment reflects actual clergy health claims budgeted. The assessment will be equal to an allocation of the total budgeted claims and expenses spread in relation to the individual parish s percentage of the total Cathedraticum. While the amount for individual parishes may change slightly, the total assessment for for clergy healthcare will remain level with the assessment in the previous year. See Appendix C for the Cathedraticum and Clergy Healthcare Assessment. Safe and Sacred Program Assessment: The Archdiocese provides the Safe and Sacred program to train all employees and all volunteers who have contact with children. For fiscal year , parishes will be charged $0.12 per Catholic based on the statistics reported in the 2016 Parish Directory. For number of Catholics reported and the related charge for Safe and Sacred, see Appendix H. The amounts will be billed in one installment to the parishes in the fall. Monthly Billing Statement Assessment: There is a monthly fee of $20 assessed for any parish, school or agency not participating in the direct withdrawal billing program via ACH which allows the Archdiocese to automatically withdraw the bill amount from the parish, school or agency bank account. To obtain the direct withdrawal authorization form or for more information please contact The Office of Accounting Services via at accountingservices@archindy.org or by calling Ext or (317) Deanery Assessments: Certain deaneries charge parishes an assessment for operating support. Please contact your deanery office regarding any changes in the current year assessment. B. Deacon costs: Parishes that have a Deacon on staff need to plan for certain expenditures. Please see Appendix D to include the appropriate costs in parish budgets. C. Education Costs Indianapolis Deanery High School Assessment: Indianapolis deanery parishes are assessed education costs to support area high schools. The high school assessment is complete and is included as Appendix E. Note: The results of the coordinated effort to alter this assessment in the future will begin implementation for fiscal year

5 The funds collected through this assessment of Indianapolis parishes is fully allocated to the Indianapolis high schools. The allocation to the 4 high schools for the school year will be: Bishop Chatard $ 875,340 Cardinal Ritter $ 943,178 Roncalli $1,305,241 Scecina Memorial $ 865,229 Indianapolis Deaneries School Salary Scale: The Indianapolis Deaneries salary scale will reflect a 2% increase currently and is in the process of further consultation. MTCA Parish Assessment: The assessment for those parishes supporting the Mother Theodore Catholic Academies has been completed and is included as Appendix G. Note: The results of the coordinated effort to alter this assessment in the future will begin implementation for fiscal year Total Catholic Education Endowment Loans: During the last few years the archdiocese has been collecting repayment of the parish/school portion of the Total Catholic Education Endowment (TCE Fund) loans. For many of these, repayment was portioned over several years and will continue. For those employees with current TCE loans, repayment of the parish/school portion begins one year after the sponsored employee completes his/her program of study. Catholic School Data Management for Required Reporting. Most elementary schools will use Jupiter this coming year. The cost for this is $3.65 per student for the school year and will be included as a one-time charge on the parish/school October billing statement from the Archdiocese Office of Accounting Services. Consider Charging a Technology Fee: With the provision of student data management services, especially online grade cards and mass parent notification systems by , text and voice, it is not unreasonable to ask parents to pay for some of the cost of this technology. Likewise, the use of technology for delivery of instruction will increase and the use of textbooks may decline. Parents will need to pay their share of these costs as they always have for textbooks. Charges for Professional Development, Business Meetings for Catholic School Administrators, Parish Administrators of Religious Education (PARES) and Youth Ministry Administrators: The Archdiocese is asking that all registrations be done online on the appropriate webpage for workshops, webinars, required training, business meetings and other such events. The specific charges for individuals or groups attending such gatherings will then be reflected on the parish/school billing statement. School Administrators Religious Ed. Administrators Youth Ministry Administrators Administrators Business Meetings (total for year) Professional Development (PD) (webinars) $200 $125 $60 $150 $75* $75* Catechetical Certification (teachers/catechists new to the $30 (History & Mission) $25 N/A 5

6 archdiocese or those who have not previously attended) Effective Grading Practices (required for K-2 teachers, specials who work with K-2 students) CPI Non-violent Crisis Intervention Initial Training (required for minimum of 3 persons per school) CPI Non-Violent Crisis Intervention annual refresher training Regional/National Catechetical Conferences (recommended) National Conference on Catholic Youth Ministry (NCCYM) (recommended) National Youth Ministry Certificate Program, per class $0 N/A N/A $60.00/person N/A N/A $30.00/person N/A N/A N/A $375* N/A N/A N/A $300+ N/A N/A $250+ *minimum recommended +plus possible housing, meal and travel costs Charges for Participation in Youth Ministry Organized Events For all Youth Ministry events and meetings (i.e. NCYC, ICYC, Senior Retreat, Homeland Mission, Disciples for Life, etc.) where youth register as part of the parish group, all event fees will be collected via Parish Billing. Please note all deadlines and cancellation policies as they pertain to each event. Professional Organization Annual Dues The Archdiocesan Principals Association (APA), the Association of Parish Catechetical Leaders (APCL), and the National Association of Catholic Youth Ministry Leaders (NACYML) offer professional and spiritual development as well as support in collaboration with the archdiocese and the member network. Membership is encouraged: APCL Dues: $40 APA Dues: $50 NACYML Dues: $60 Religion Testing for Testing of students in religion instruction is required by policy for both parish and school-based religious education programs. NCEA ACRE Testing is used. ACRE materials are ordered directly though NCEA with a discount for NCEA member schools and parishes. The scores are reported back to the school or parish and to the Office of Catechesis. To price and order materials, go to AdvancED (North Central Association/Accreditation/State) Accreditation of Schools Under our state-wide accreditation model with the other four dioceses, all schools belong to AdvancED [North Central Association of Colleges and Schools (NCA)]. For , the minimum cost per school will be $825, paid via the parish/school billing statement from archdiocesan accounting. Schools also pay for their own three-year AdvancED internal team review for accreditation. Please budget for hospitality, lunch, and materials for team members if your school is scheduled for an internal review. D. Property and Liability Insurance Auto insurance: Rates for auto insurance will increase slightly over prior years. The annual premiums amounts will be billed on a monthly basis using the following amounts: 6

7 Class I Class II ClassIII and older Rate Rate Rate A- Auto $ 1,200 $ 1,020 $ 720 B- Buses $ 1,440 $ 1,200 $ 1,020 V- Vans $ 1,200 $ 1,020 $ 840 T- Trucks $ 1,104 $ 1,020 $ 720 TR - all trailers $ 120 M - Medical Vans $ 1,500 Student Accident Insurance: Insurance will remain at $12 per student and includes preschool children. The fee is based on beginning enrollment for the school year. Schools will be charged per student, including high school, elementary, preschool and day care attendees. This insurance is accident insurance that is supplemental to any insurance that parents may have and can also be used to cover losses when parents have no insurance. It covers all school activities including interscholastic athletics. This excess insurance coverage includes a secondary deductible of $500 which is paid by the family. We believe that having this policy in place helps the school and archdiocese avoid nuisance lawsuits especially when parents have no other way to cover expenses caused by an accident. Property and liability: Our third party vendor has indicated that property values for most locations are expected to increase slightly. These revised property values will not be available until late spring. At that time we will finalize the property insurance rates. Due to the positive results in this shared plan and the support of the endowment, we expect to keep the rates for this important coverage level with prior year. Proposed Property Insurance Rate: $3.80 per $1,000 of replacement cost of property. Church, school and agency properties will be assessed the same property insurance rate per $1,000 of replacement cost of the property. Property insurance collection is based on the assessed value of church, agency and school properties and is used towards annual property insurance premiums, property and liability claims and also to support strengthening the reserve for property insurance claims. A portion of the collection is used to cover Archdiocesan operational expenses incurred by the Chancery offices as they are used to support and provide assistance and guidance on all property, building and risk management related matters within the parishes, schools and agencies of the Archdiocese. For example, the management services office which provides assistance on new building projects and parish building maintenance issues. Property per claim deductible: The per claim deductible is $5,000. Parishes should plan accordingly and be prepared to cover the deductible in the event of a claim. We strongly recommend that parishes provide support for this deductible with an ADLF savings account. Important note! Projected budget rates for all insurance coverage are based off of the best information we can obtain at this time. Actual rates will be based off of actual premium charges received from carrier(s) at the time of renewal, which will occur in June The amount billed for property and vehicle insurance for the fiscal year will be based on properties and vehicles held as of July 1, Any changes to the property schedule or vehicle schedule will not be reflected in the monthly billing but will be adjusted at the next renewal on July 1, E. Payroll Service Fees: All employees are required to utilize direct deposit. Paylocity s payroll processing fees are as follows: 7

8 Per Payroll Fees Web Pay per Payroll Bundle for bi-weekly payroll is a base fee of $30 and $1.25 per employee. Additional State Local Filings are $3.00 per occurrence. Direct Agency Payments (Garnishments USPS) are $2.50 per occurrence. Electronic Child Support Payments are $1.50 per occurrence. Monthly Fees Paylocity Electronic Timekeeping is $1.60 per employee. Year End Fees Year End W processing is $5.50 each. F. CYO: CYO sponsors various athletic leagues and events throughout the archdiocese. It is anticipated that participant and/or team fees for the various leagues and events will increase for the next fiscal year. Official rates will be communicated by CYO personnel in late spring G. Computer Access for all Employees: In today s technology focused environment, employees of large employers like the Archdiocese benefit by using an internet website to obtain payroll and other important employee and employer information. The Archdiocese continues to expand the use of the web site to make much more information available to employees. With this in mind, it is very important that all employees are able to access their information at the Archdiocesan website by utilizing a computer with internet access. If all of your employees do not have this access by using an offsite personal computer, please be sure they have the ability to use an onsite personal computer for this purpose. If necessary, please include in the budget amounts to cover the cost of a centrally located computer and monthly internet access fees. H. Information Technology Services for Parishes, Schools and Agencies: The Central Offices of the Archdiocese contracts with Braden IT Services (formerly known as DAST Consulting, Inc.) for all IT related services. Should a parish, school or agency require IT related services, those could be provided by Braden IT Services under a separate agreement with rates based on the nature of the services provided. I. Parish Internal Control Assessment (PICA) Fees and Audit Fees: Archdiocesan high schools: Budget based on prior year fees for same service of annual audit or annual review and tri-annual internal control review by an external CPA firm. Please contact the external CPA firm for information. Parishes: Parishes without schools should budget $2,500, parishes with schools outside of the Indianapolis deaneries should budget $3,500 and parishes with schools in the Indianapolis deaneries should budget $4,000, for a parish internal control assessment to be provided by an external CPA firm approximately once every three years. For budgeting purposes, please plan for the possibility of the unexpected internal control assessment and be flexible to budget the necessary funds in each three year cycle. We work closely with the 4 external CPA Firms that provide these services to our parishes and schools to keep the fees steady year after year. There may be certain circumstances or factors encountered during a review that could lead to a slight increase in the fees including but not limited to extensive BINGO operations, childcare or other school related ministries that require additional work, and unusual difficulties in obtaining the necessary information and resources for the review. The locations scheduled for parish internal control assessments for fiscal year 2017 are listed in Appendix I. To provide some relief for incurring the expense of the PICA, parishes scheduled for an assessment in may elect to spread the payment equally over 36 months via the Archdiocesan billing process. Please contact Carey Kendall at ext or or through at ckendall@archindy.org to sign up for the alternative payment plan or with other PICA related questions. 8

9 J. Professional Development: Parishes and deanery centers are encouraged to budget at least $500 per person for each lay minister (in religious education, youth ministry, music, social ministry, administration, etc.) for professional development. This applies to both full-time and part-time staff including volunteers in leadership roles based on pastoral discretion. Parishes and deanery centers may need to adjust the suggested amount of funding based on their circumstances. It is also recommended that any expenses for professional development have the prior approval of the pastor or parish life coordinator (or dean for deanery center employees). K. Criterion Subscription Rates: All parishes will continue to be billed at the annual rate of $16 per household. The amount will be billed evenly throughout the year based on number of households as of May 31, L. Legal fees: The retains the services of Mercer Belanger, P.C. for all legal related matters. In the event that one of our parishes, schools or agencies requires direct legal services, those services as provided by Mercer Belanger will be billed to the Archdiocese and then re-directed through our internal billing system to the appropriate entity. II. PERSONNEL COSTS A. Priests - Please see Appendix A to include the appropriate priest personnel costs in parish budgets. B. Lay and Religious 1. Salary and wages: We have provided you with Appendix L Salary Spreadsheet Template to assist you in determining your salary and wages cost for next year. The provided statistics may be useful in determining employee compensation. a. Consumer Price Index (CPI): 0.5% increase from p/y b. Consumer Price Index for urban wage earners (CPI-W): 0.1% increase from p/y c. Indiana projected pay increase for 2016 for church/ religious organizations 2.7% d. NACPA (National Association of Church Personnel Administrators) 2016 projections for non-exempt positions 2.9% Based on these statistics, a 2% pay increase is suggested, but each parish needs to determine what pay increase will be granted considering their own circumstances. Please note the current minimum wage for Indiana remains $7.25 / hour (effective 7/24/09). 2. Religious compensation: We recommend religious employees pay be consistent with those of the lay counterparts. See Appendix J Worksheet for Calculating Lay Equivalency. 3. FICA: 7.65% x gross compensation. This will be calculated within Appendix L Salary Spreadsheet Template. 4. Health Insurance: There will be no increase in employer premium contributions for medical and dental coverage in the upcoming fiscal year. The budgeted Health Insurance expense can be calculated within Appendix L Salary Spreadsheet Template using the rates below, which are the same as the current rates: Employer Health Insurance Rate 7/1/16 thru 6/30/17 Monthly Annually Medical $ 754 $ 9,048 Dental $ 36 $ 432 9

10 **Parish, School and Agency rate is the same regardless if employee coverage is single or family. Please note that billing to parishes, schools, and agencies for medical and dental insurance is based on Anthem enrollment data. When an employee terminates health insurance coverage due to the end of employment or for another reason, an Anthem change form needs to be sent to Human Resources to stop coverage and cease billing. Stopping an employee s pay does not stop health insurance coverage for the employee or health insurance billing to the parish, school, or agency. Federal Requirements for Health Insurance Eligibility Federal health care reform legislation includes regulations regarding eligibility for health insurance coverage. These federal regulations require employers to offer coverage to employees who work 30 or more hours per week. A special provision of the law affects educational institutions, including Catholic schools. This provision states that any employee who works regularly 30 hours per week during a school year is eligible for health insurance. In October 2016, the Human Resources Office will send open enrollment information for medical and dental benefits to employees who worked an average of 30 hours per week during a school year or calendar year within the measurement period of October 1, 2015 through September 30, If eligible employees elect coverage, it will become effective in January Please contact the Human Resources Office if you have any questions about health insurance eligibility. 5. Lay Retirement: The Archdiocese offers a 403(b) retirement plan that all employees are eligible to participate in. The Archdiocese matches 50% of the employee s contribution to the 403(b) plan up to a maximum of 8% of eligible wages. The Archdiocese also has a legacy pension plan for full time employees hired prior to January 1, This plan is frozen as of June 30, 2016, meaning employees will not accrue additional pension benefits after June 30, Our best estimate of the cost of funding and administering the legacy pension plan at this time and the 403(b) match for all employees is 5.0% of salaries for both full time and part time employees paid in calendar year This amount has been calculated for each location and will be billed evenly over the upcoming fiscal year (see Appendix F Lay Retirement Charges Assessment). The lay retirement charges assessment for parishes and schools in the upcoming fiscal year and for the foreseeable future will not decrease from the current assessment rate of 5.0% of wages earned for all employees. Even though employees are not accruing additional pension benefits after June 30, 2016, the pension plan is underfunded by $26 million, and it is difficult to predict the number of years it will take to eliminate that underfunding due to the volatility of investment returns. 6. Mileage reimbursement: The Archdiocese Catholic Center reimburses employees for business miles incurred at 75% of IRS guidelines, but this rate is not mandatory. We recommend that parishes and agencies evaluate the impact to individual budgets. Archdiocese mileage reimbursement rate: $0.41/mile 7. Worker s compensation insurance: Calculate as follows: Clerical, teachers and clergy: $0.36 per $100 annual salary Maintenance and kitchen workers: $4.04 per $100 annual salary Bus drivers: $3.59 per $100 annual salary Cemetery workers $4.29 per $100 annual salary Note: Worker s compensation charges billed are based on the wages incurred for the previous 10

11 calendar year (1/1/2015 to 12/31/2015). The same amount will be billed each month during the fiscal year. 8. Employee background checks: The has a policy requiring all employees and all volunteers who have contact with children have completed a background check in the past 5 years. Barada Associates will process these re-checks for clergy, employees and volunteers in the Safe and Sacred database who have not had a background check since January 1, 2011, and the cost will be charged to the parish, school or agency. Background checks will continue to be required for: 1) all new and current clergy and employees and 2) all new and current volunteers that have contact with children. Please budget as follows: $31.50 = school employee/contractor (required for all persons listed here who are employed or contracted to work at a school; includes county, state and national checks); $7.00 = basic criminal package (required for all persons listed above other than school employees or contractors; does include state and national checks); $ 7.00 = recheck $11.00 = Indiana driving check (required for new employees and volunteers who drive as part of their responsibilities). This is the fee for driving checks in the State of Indiana; other states fees will vary. Note: Human Resources considers the following list of volunteers as those that have contact with children: athletic directors, babysitting, cafeteria workers, catechists, coaches, clerical/office workers, chaperones for overnight events, crossing guards, custodians (school or parish), drivers (for youth), day care/extended care workers, instructional assistants, library assistants, maintenance (school or office), playground monitors, room mothers or fathers, sacramental prep, scout volunteers, tutors, youth ministry program leaders, youth retreat presenters/organizers. Please note that licensed teachers and principals (and all other school employees and contractors) are required by state law to have background checks (the $31.50 check described above) before being hired. Checks should also be done for licensed teachers and principals (and other school employees and contractors) who are being re-hired after a break in service of more than 6 months or are transferring from school to school. 11

12 III. ARCHDIOCESAN DEPOSIT AND LOAN FUND (ADLF) A. DEPOSITS 1. Archdiocesan policy stipulates that all parishes/schools shall deposit all funds in the ADLF in excess of 90 days worth of operational expenditures. 2. Interest is earned on all deposits and will be credited monthly. 3. The ADLF deposit interest rate will be adjusted quarterly and is set by the ADLF committee at a rate in excess of the rates offered by local banking institutions throughout the Archdiocese for similar type savings accounts. 4. The ADLF deposit interest rate for the period January 1, 2016 through March 31, 2016 is 0.75%. B. LOANS 1. Parishes and agencies are prohibited from borrowing funds from any lender other than the ADLF without the express written consent of the Archbishop. 2. Each entity with a loan from the ADLF will have a signed promissory note on file in the Office of Accounting Services. 3. Regular principal and interest payments made according to an approved amortization schedule are not only anticipated they are mandatory. 4. A loan deemed to be in default by the Chief Financial Officer may provide cause for the direct intervention of the Archdiocese. 5. The ADLF loan interest rate will be adjusted quarterly by the ADLF committee. 6. The ADLF loan interest rate for the period January 1, 2016 through March 31, 2016 is 3.75%. IV. CAPITAL BUDGETS In planning for the future cash flow needs of our parishes/schools related to capital projects, we are again requesting a three-year capital budget be submitted with your operational budget, see Appendix K. Loan requests are approved based on the 50% cash on hand in ADLF and 50% in pledges policy for the total project cost will depend on the cash resources available at the time your parish/school anticipates beginning the capital project. The three-year capital budgets assist us as we determine the most effective way to process and fund capital related ADLF loan requests. A completed three-year capital expenditure budget must be submitted with your parish budget in order to receive consideration for an ADLF loan request. 12