DIOCESE OF SIOUX CITY Chancery

Transcription

1 DIOCESE OF SIOUX CITY Chancery Date: April 23, 2018 To: From: Parish Bookkeepers, Business Managers, Pastors Julie Mahaney & Margaret Fuentes Re: Parish Budget Information The following guidelines will assist in preparing your parish budget. Please take the time to read this and incorporate into your budget. A separate memo was issued for school budget guidelines. Your parish finance council must approve your annual budget and document the action in your meeting minutes. Parishes going to worship site (previously referred to as oratory) or merged secondary church (previously referred to as worship site) status July 1, 2018, a separate budget is not needed, the income and expense will be budgeted by the assuming parish. Refer to last week s general mail on the Ministry 2025 revised terminology. This will also be discussed at this Thursday (April 26) and next Tuesday (May 1) business day meetings. Revenue: Weekly Offertory Use historical data to project next year s envelope giving. Take parishioner changes into consideration. For those parishes being affected by Ministry 2025, in July 2018, budget 90% of your historical average for the past three years. Include estimates of offertory income of those parishes that are merging with yours, i.e., worship sites and secondary churches. Investment Income Volatility should be expected in the coming year. Budget 4% of the balance of your investment account to be conservative. Do not record anticipated transfers from school investment funds as budgeted income. Diocesan Annual Appeal Deposit Savings Fund Bequests, Estates & Memorials The total DAA goal remains at $1,650,000. For only one year of ordinary income will be used to calculate the DAA parish goals and diocesan support. We are in the process of clarifying how DAA goals for worship site and secondary churches going to assuming parishes will be handled. For now, budget the same as last year including the worship site and/or secondary church parish goal and diocesan support. The interest paid on this account remains at 2% (no fees). Budget conservatively, although these funds may need to be used for parish operations, don t count on them for funding.

2 Scrip Budget for the amount the parish expects to receive for operations from the scrip program. Parish Sponsored Groups Budget for the amount the parish expects to receive for operations from altar, rosary, guild, fellowship, men s club, and other parish groups. Keep in mind these groups should not accumulate funds, consider this in the amount to budget. Expenses: Lay Salary The consumer price index (CPI) remained at 2.1% for We recommend an annual evaluation for your staff, strive to pay the market rate considering performance. Review salary information in executive session in your parish finance council meeting and document in the minutes. Include support for pay rate changes in the employee file. FICA & Medicare Priest Compensation Calculate at 7.65% of lay salary. The base salary will increase by $1,500 in If your priest moves from the base step to the senior priest step, the increase is an additional $1,800. Budget for each priest assigned to your parish group using Bishop s priest compensation schedule. Priest changes take effect July 10, The outgoing priest will be paid by the newly assigned parish for the entire month of July. Retiring priests will receive their pension benefits beginning on July 1, 2018 by the Priest Pension Fund. Lay Health Insurance Priest Health Insurance: As announced in Margaret s 3/23/18 , there will not be an increase in lay health insurance premiums for For employees that take the high deductible health insurance plan, locations have the option to contribute up to $50 per month to the employee s health savings account. For employees that opt out of health insurance, the location can pay the employee up to $75 per month, keep in mind this is taxable. There are also some changes to the dental rates, since these are an employee cost, they will not be addressed in this memo. Further information on the lay health insurance program will be provided at this Thursday (April 26 th ) and next Tuesday (May 1) business day meetings. Also shared via (sent ) we have a decrease in monthly billing of approximately 14%. Budget the below amounts for each priest at your location(s). Active priests on basic coverage: $1,000/month Active priests on Medicare: $850/month

3 401K Elective Deferral Mileage Reimbursement The maximum parish contribution has increased from 5% to 6%. Budget according to the lay employee/priest deferrals. Please encourage your priest(s) to participate in 401K via payroll deduction similar to the handling of full time staff. IRS standard mileage rate is 54.5 cents for every business mile effective January 1, Reimburse priests at this rate. You have the option to elect a lower amount. The Chancery reimburses 40 cents a mile. Budget priest mileage reimbursements based on whether the priest elects Option I or Option II. Refer to Bishop s priest compensation schedule. Priest Food & Provisions: Priest Cell Phone: Continuing Ed/Retreats: Worship Sites & Secondary Churches Auto Insurance Property & Liability Insurance Worker s Compensation Diocesan Loans Unemployment Estimate $300 per month for each priest. Reimburse the pastor or pay the local grocer on account based on receipts provided. Do NOT pay a stipend, this is taxable. Budget $100 per month for each priest however reimburse up to $100 based on his actual bill. Do NOT pay the vendor, this is the priest s personal cell phone, it should be in his name, NOT the parish name. Refer to Bishop s priest compensation schedule. Budget continuing education ($250) and retreats ($400) for each priest and deacon and reimburse based on receipts provided. Refer to Bishop s priest compensation schedule. Budget for upkeep and maintenance of worship sites and secondary churches in the assuming parish annual budget. Cars $625, Pickups/SUVs/Vans/Suburbans $675, Buses $1,200. All parish and school owned vehicles must be covered using Catholic Mutual. A 2.5% increase in premiums is anticipated. Evaluate whether you have appropriate coverage. In some cases you may not need replacement cost coverage. For worship sites (previously referred to as oratories), estimate the premium at 50% of your current premium. Contact Mark Wetz ( ) or Jessica Wilcox ( ) with questions. Budget based on the last invoice mailed to your location. The work comp audits and frequency of claims will determine next year s rates. Contact Jessica ( ) with questions. The interest rate is 4.5% on funds loaned to diocesan entities. Budget following the Iowa Catholic Conference (ICC) billing. This only applies to parish schools that pay hot lunch, school custodians or other school employees.

4 Religious Education, Youth Ministry, Choir, Cemetery School Support Cathedraticum Please sufficiently budget for this parish ministry expense! We notice in our desk reviews that this often is a significantly under-budgeted expense. Your DREs need this support! The pastor and finance council should meet with the school principal and board to determine parish support to the school. For parishes that are not a member of a school system yet have parishioners attend a Catholic school, budget for the noncorporate per pupil investment amount of $2, (the official notification for this will be issued by the Diocesan Department of Education). When creating this check, the payment is for general school support, do not write the check as a reduction to apply to a specific student(s) tuition balance. We are in the process of clarifying how cathedraticum for worship site and secondary churches going to assuming parishes will be handled. For now, budget the same as last year including the worship site and/or secondary church in the amount. Globe Expense The rate the parish pays for unpaid Globe subscriptions is $11 per unpaid subscription. The Globe billings were issued February 19, Budget this amount. Shared Expenses Quick Books Capital Expenses/ Debt Retirement. Parish Schools If you reimburse for shared expense(s), budget the applicable expense line items as if you paid the expense directly. If you bill for shared expense(s), budget the reimbursements as a reduction to the applicable expense line items so the resulting expense reflects only the parish s share of the cost. Do not record in a cluster income or expense account. The pastor and finance committee for all parishes should review and approve the allocation of shared expenses. Budget for QuickBooks: 1) $650 payroll tax table, this renews annually and 2) $200 program as needed, this renews every 3 years. If using 2015 or earlier version, the upgrade is due by May To achieve cost savings, you may be able to share the tax table and QuickBooks program with a parish in your group. Call Linda Topf ( ) for assistance. Prepare a separate budget for capital expenses and debt retirement as applicable. This can be funded through cash reserves (including investment earnings). Include interest expense in annual operating expense. Using cash reserves to fund your operating budget is not recommended. Employees working for both the school and parish should be budgeted according to their allocated time at each entity. Please follow the diocesan standard chart of accounts.

5 Annual Bookkeeper/ Renewal Meetings THIS Thursday, April 26 Sioux City Stoney Creek Hotel NEXT Tuesday, May 1 Carroll Santa Maria Winery Please budget and plan accordingly. Feel free to contact us with questions: Julie Mahaney Parish/School Accounting juliem@scdiocese.org Margaret Fuentes Human Resources/Employee Benefits margaretf@scdiocese.org