central administration, catholic charities, and mecklenburg area catholic schools of the roman...

DIOCESE OF CHARLOTTE FINANCE OFFICE

Central Administration, Catholic Charities, and Mecklenburg Area Catholic Schools of the

Roman Catholic Diocese of Charlotte Financial Policies Manual

The Central Administration, Catholic Charities and Mecklenburg Area Catholic Schools of the Roman Catholic Diocese of Charlotte

Financial Policies

The finance policies and procedures that follow specifically apply to the Central Administration, MACS, and Catholic Charities. Principals and department heads may choose to impose further financial restrictions as a result of budgetary constraints. Additionally, all diocesan entities are subject to the financial policies contained in the Diocese of Charlotte Financial Policy Manual that can be found on the diocesan web-site.

Contents

100 GOVERNANCE POLICIES ............................................................................................................... 3 101. Standards for Financial Policies ........................................................................................... 3 102. Whistleblower Policy .......................................................................................................... 6 103. Policy on Fraud ................................................................................................................... 8

200 EXPENDITURES AND RELATED ACTIVITIES .................................................................................. 10 201. Guidelines for Processing Accounts Payable....................................................................... 10 202. Expense Reimbursement Policy ......................................................................................... 24 203. Sales Taxes Eligible for Refund ........................................................................................... 32 204. Project Approval and Bid Procedures ................................................................................. 33

300 EMPLOYEE/INDEPENDENT CONTRACTOR ACTIVITIES ................................................................. 35 301 Completion of Time Sheets ................................................................................................. 35 302. Employees Working In More Than One Department .......................................................... 37 303. Fees/Payments to Employees for Services Provided ........................................................... 38 305. Mileage Reimbursement to Independent Contractors/Volunteers ..................................... 40 306. Cell Phone Reimbursements .............................................................................................. 41

400 OTHER ....................................................................................................................................... 42 401. Fundraising ....................................................................................................................... 42 402. Procedures when Credit Cards are Accepted at Fundraisers ............................................... 46 403. Credit Card Processing ...................................................................................................... 47 404. Data Privacy and Security .................................................................................................. 48 405. Sales Subject to Sales Tax .................................................................................................. 50

Financial Policy Manual September 2015

100 GOVERNANCE POLICIES

101. Standards for Financial Policies

The Diocese of Charlotte is committed to the highest standards of fiscal integrity and accountability. Strong systems of internal controls are needed to safeguard assets by reducing the risk of fraud, misuse, waste or embezzlement. Furthermore, internal control is a process designed to provide reasonable assurance as to the:

Effectiveness and efficiency of operations

Reliability of financial reporting

Compliance with applicable laws and regulations

In order to establish a standard of high fiscal integrity and a strong internal control environment, the Diocese of Charlotte has adopted policies, developed and documented procedures, provides periodic training of personnel and has assigned responsibility for oversight as follows:

POLICIES

1. The Diocese of Charlotte has adopted a Code of Ethics that –

addresses principles of ethics and integrity for all Church personnel, stipulates guidelines for working with minor children, addresses conduct for pastoral counselors and spiritual directors, forbids harassment, identifies prohibited political activities, and addresses confidentiality.

2. The Diocese of Charlotte has adopted a Conflict of Interest Policy that –

requires reporting of potential or real conflicts of interest, prohibits gifts and favors of value that could influence, or be construed as influencing a

decision or obligation in the performance of one’s duties, prohibits board members from soliciting business or favors, and from voting on decisions that

may constitute a conflict of interest, and prohibits board members from influencing any activity that could confer a benefit on such

member or anyone in the member’s family or business.

3. The Diocese of Charlotte has adopted a Whistle-blowing and Reporting Ethical Misconduct Policy that –

requires reporting of violations of the Code of Ethics by Church personnel, stipulates that all reports will be treated in confidence as much as the diocese’s duty to

investigate allows,


stipulates that all reported violations of the Code of Ethics will be investigated, and prohibits retaliation against a person who makes a complaint or provides information

regarding any reasonably perceived reportable activity.

4. The Diocese of Charlotte has adopted a Fraud Policy which clearly states that fraud is not tolerated and that the prevention of fraud is the responsibility of all personnel involved in Church administration. The policy –

stipulates that all suspected cases of fraud are to be reported and provides assurance against recrimination,

defines actions constituting fraud, outlines reporting and investigating procedures, and stipulates that fraudulent acts will be subject to disciplinary action, up to and including

termination, and civil and criminal prosecution.

5. The Diocese of Charlotte has adopted a Clergy Remuneration Policy that stipulates compensation levels for all clergy, delineates travel, housing and meal expenses that are the responsibility of the parish vs. the priest, and summarizes benefit plans available to diocesan priests

6. The Diocese of Charlotte has issued budgeting and financial reporting guidelines for all diocesan parishes, schools and agencies. The guidelines stipulate that –

budgets are to be prepared annually, the pastor and finance council review actual revenues and expenses against budgeted

amounts on a regular basis, quarterly financial reports be issued to the parish council and an annual financial report be

issued to the entire parish community, and the financial reports and supporting schedules which are required by the Chancery semi-

annually. PROCEDURES

7. The Diocese of Charlotte requires Chancery authorization to open all bank and investment accounts.

8. The Diocese of Charlotte has adopted standard procurement procedures and requires

competitive bids when hiring an outside vendor/contractor to perform repairs, maintenance and/or improvements to diocesan properties when the total cost exceeds $5,000.

9. The Diocese of Charlotte has established guidelines for new acquisitions and construction or

renovation projects that address the necessary planning, financial requirements and construction process.

10. The Diocese of Charlotte has standard cash collection count procedures that require multiple

unrelated counters, the use of locked or sealed bank bags for transporting deposits, and the use of standard count sheets which are signed by all counters.


11. The Diocese of Charlotte has adopted a standard chart of accounts that is used by all parishes.

12. The Diocese of Charlotte has issued a records retention schedule for financial records that is consistent with the guidelines published by the United States Conference of Catholic Bishops. The schedule identifies the required retention period for all types of financial records typically associated with Church organizations.

13. The Diocese of Charlotte Finance Office has codified all financial policies and procedures in the

manual, The Diocese of Charlotte Financial Policy Manual which can be found at http://www.charlottediocese.org/images/main/finance/FMan201415.pdf

TRAINING 14. The Diocese of Charlotte Finance Office conducts annual workshops for parish finance council

members, parish financial staff and pastors that address timely issues pertaining to parish financial policies and procedures and civil regulations.

OVERSIGHT

15. The Diocese of Charlotte recognizes the extreme importance of a properly functioning parish finance council as it relates to proper parish governance and internal controls. To that end, the Diocese requires a representation letter from each parish semi-annually containing:

The names and professional titles of the members of the parish finance council,

The dates of all finance council meetings in the preceding fiscal period,

A statement that the finance council has met, reviewed and discussed the financial statements and financial condition of the parish, and

The signatures of the pastor and all finance council members.

16. The Diocese of Charlotte Finance Office performs parish financial reviews designed to test the existence and effectiveness of parish internal accounting controls and compliance with diocesan policies and civil regulations. At the conclusion of each parish financial review, a report is issued to the pastor that includes recommendations related to deficiencies identified.

17. The Diocese of Charlotte Finance Office monitors the financial condition of parishes by reviewing

financial trends semi-annually. When negative trends are identified, appropriate investigation and follow-up is undertaken.

http://www.charlottediocese.org/images/main/finance/FMan201415.pdf

http://www.charlottediocese.org/images/main/finance/FMan201415.pdf


102. Whistleblower Policy The Diocese of Charlotte 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 Whistleblower Policy 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 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 has an obligation to report in accordance with this Whistleblower Policy any reasonably perceived violation of: (a) federal, state or local laws, rules and/or regulations; (b) the diocese’s Code of Ethics; (d) the diocesan sexual misconduct policy; (e) diocesan personnel policies; (f) diocesan financial policies, including questionable or improper accounting or auditing matters; as well as gross mismanagement, waste, fraud, embezzlement, neglect of duty; and actions that threaten or are viewed as harmful to the health, safety and welfare of others and any other financial, legal or canonical concerns (hereinafter collectively referred to as Concerns).

Reports of Concerns should be made to the pastor, principal, vicar general/chancellor, attorney, or chief financial officer. Reports made to pastors and principals are to be reported to the vicar general/chancellor. 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. Investigation - The person to whom said report was made shall be responsible for a thorough and expeditious investigation of the reported Concern.

Proposed decisions on the disposition of a case are to be discussed with the vicar general/chancellor or his designee. The results of all reported and confirmed Concerns and the final resolution shall be reported to the diocesan Finance Council.

No Retaliation - This Whistleblower 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.

Acting in Good Faith - Anyone reporting a Concern must act in good faith and have reasonable grounds for believing the information disclosed is a legitimate matter of Concern. 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.


103. Policy on Fraud

Policy Statement The Roman Catholic Diocese of Charlotte promotes a culture of honest and accountable stewardship of God’s gifts. There is significant responsibility associated with being stewards of the temporal resources of the Church: responsibility to safeguard the Church’s 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, employees, Finance Council members and other volunteers involved in church administration by adherence to diocesan 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 up to and including termination, and civil and criminal prosecution.

Actions Constituting Fraud The Diocese of Charlotte defines fraud as the intentional misuse or misappropriation of a diocesan entity’s 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 entity’s resources or assets. 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 one’s or another’s personal benefit. • Accepting anything of value from contractors, vendors or persons providing (or seeking to

provide) services/materials to a diocesan entity for one’s or another’s personal benefit, in violation of the diocesan Conflicts 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. • Any dishonest act.

Reporting Fraud to the Diocese Suspected fraud should be reported to one of the following:

• Diocesan Attorney • Diocesan Chief Financial Officer • Diocesan Chancellor • Diocesan Bishop

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. Reports of suspected fraud should include all relevant information about the suspected act, including any material


evidence that exists. In addition, the report should include the name and contact information of the person making the report.

Investigation The diocesan Finance Office will thoroughly and expeditiously investigate any reported case of suspected fraud using investigation procedures designed by the Association of Certified Fraud Examiners. The person submitting the initial report will receive confirmation indicating that their report was received, and the confirmation will stipulate that the subsequent investigation is confidential. That person may or may not be contacted during the investigation.

All confirmed acts of financial fraud will be reported to the diocesan Bishop and to the diocesan Finance Council. Proposed decisions on disposition of a case will be discussed with the diocesan Bishop and the diocesan Finance Council.

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.


200 EXPENDITURES AND RELATED ACTIVITIES 201. Guidelines for Processing Accounts Payable

201.1 Supporting Documentation

a. Invoices, expense reports, receipts and other supporting documentation should be scanned into PaperSave and retained for 30 days; then destroyed. Other than as outlined below, supporting documentation is not to be routed to Accounts Payable.

b. The remittance advice for credit card payments, utilities and certain merchants should be

separated from other paperwork, and only the remittance advice routed to Accounts Payable at the time the invoice is entered into PaperSave.

c. Expense Reports are to be completed as usual and signed by the person requesting

reimbursement. It is not necessary for the individual’s supervisor to sign the expense report as it will be approved in the PaperSave process flow.

d. Pre-approved cell phone reimbursements are not to be scanned into PaperSave. The

supporting documentation is to be routed to Accounts Payable, as is the current practice.

201.2 Approvals a. Upon entering invoice data into PaperSave, originators are certifying to the validity of the

invoice, i.e., that the merchandise was received or service provided. If the originator is not in a position to certify to this, the invoice should be reviewed by the individual who can certify to its validity (prior to being scanned into PaperSave) who is to initial and date the invoice amount.

b. Invoices will be automatically routed to the appropriate approver based on the

department/office/school specified by the queue entered upon scanning. Special attention is required for payments to, or on behalf of, department heads/office directors/principals as they are not authorized to approve payments to, or on behalf of, themselves. Such invoices should be entered into the queue of the individual’s supervisor. Examples:

• Payments to/for the Director of Development should be scanned and entered into the CA-Chancery queue.

• Payments to/for any MACS principal should be scanned and entered into the MACS- Superintendent queue.

• Payments to/for the Executive Director of Catholic Charities should be scanned and entered into the CCDOC-Chancellor queue.

• Payments to/for the Superintendent of Schools should be scanned and entered into the CA-Education queue.


201.3 New Vendors a. Prior to processing a payment for a new vendor, it is necessary to request New Vendor

Set-up before scanning and entering the invoice. To request New Vendor Set-up, send an email request to Accounts Payable containing the following information about the vendor:

• Vendor Name • “Attention” line for payments, if applicable • Address • Remittance address (if different) • Phone number • Nature of items to be purchased or services to be rendered • Whether, to the best of your knowledge, there is a relationship between the

vendor and diocesan personnel A completed and signed form W-9 must also be provided for vendors that are individuals and unincorporated entities engaged to provide a service.

b. Accounts Payable will notify you when the vendor has been set up, at which time you may scan and enter the invoice for payment.

201.4 File Maintenance a. Scanned documents that are stored in the hosted folders must be maintained, i.e.

deleted, on a regular basis. Once scanned files are processed through the PaperSave database, there is no longer a need to keep them in the hosted folders. They must be deleted to avoid issues with storage capacity.


201.5 Required Software (Citrix Receiver) Download Instructions In browser window: login2.blackbaudhosting.com

Choose Citrix Receiver

Click on Blue Download Receiver for Windows (or choose another Operating System if applicable)


Accept the License Agreement – click Continue

The following informational window pops up.


Look for the program CitrixReceiverWeb.exe to complete downloading (find it either in your Downloads folder or on your taskbar)

At the Welcome screen click on Install


201.6 Scanning and Uploading Procedures

First-time users only: Go to https://145456.cloud.papersave.com and click on the PaperSave Workflow link to install the shortcut to the PaperSave workflow to your desktop.

1. Scan and save each invoice or expenditure authorization (EA) as a .tif or TIFF file, Word

document (.docx) or a .pdf file to your computer or network drive. 2. Open the PaperSave Workflow by double-clicking on the shortcut icon saved to your desktop

3. Login using the credentials provided by your system administrator:

https://145456.cloud.papersave.com/

https://apps.papersave.com/production112-windows/runtime/PaperSave/PaperSave.app.productionsp112.application?wqe&servicerooturl=https://145456.cloud.papersave.com:443

https://apps.papersave.com/production112-windows/runtime/PaperSave/PaperSave.app.productionsp112.application?wqe&servicerooturl=https://145456.cloud.papersave.com:443


4. Open the folder where you saved your invoice or EA files and drag and drop each one to the bottom half of the PaperSave Workflow screen to upload them for processing:

5. Select whether it is an Invoice or an EA and then click ‘Add to Drop Point’:


201.7 Invoice Processing Instructions After completing steps 1-5 above (Scanning and uploading invoices and expenditure authorizations), use the following to fill in the profile fields and submitting for approval: A E D C B

H G F

A. Toolbar: Toolbar provides various options to perform difference tasks

B. Document Profile Pane: This pane displays the profile fields of the current document, all invoice data and account codes will be entered on this pane.

C. Workflow Review History Pane: This pane displays the history of the selected document. Any errors will be recorded in this pane.

D. Conversation Pane: This pane displays the review comments provided by the approvers. E. Document Display Area: This pane will display the document or page of the document. F. Workflow Queue Items Grid: All the documents are displayed here according to the

selection made in the filter option. G. Information Bar: This pane displays the information about the selected document. H. Thumbnail page: The thumb nail page displays the page(s) of a selected item.


1. Invoice coding will be entered in the Document Profile Pane. Click on the Company ID drop down box and choose the correct company – CA (Central Administration) CCDOC (Catholic Charities) MACS (Schools).

Select the appropriate entity and tab to the next box.

2. Click on the Department drop down menu and select the appropriate department. The department selected will determine the invoice approver based on the established work queues.


3. Select the type of purchase – Technology, Equip-Facility or Other.

4. To select the Vendor click on the binoculars icon and a lookup window will open.

5. Search for the vendor by either Vendor Name or Vendor ID. If by name enter a portion of the name, click on search and a list of current vendors will appear. Highlight the correct vendor and either click on the select button or double-click on the vendor.


6. Enter the invoice number, invoice amount, check memo and invoice date using the invoice image in the Document Display area. The memo field on the check should contain either the Diocese account number with the vendor or information for the vendor.

7. The Due date for the invoice will be the following Thursday’s date. The posting date should auto fill with the same date as the due date.

8. To enter the invoice account codes click on the Update Distribution & Tax Tables button. A new window will open.


9. Click on the binoculars under account number to open the active account numbers listing.

10. In the drop down box choose ‘Reference’ and enter a portion of the account name – i.e. – ACCT, FFAD, etc. This will filter the accounts to a specific cost center. Click on the Search button to activate the search. To choose an account highlight the account and click on the select button or double click on the account.


11. If you know the account number click on the binoculars and type in the account number, with dashes and the ‘GL Account Number’ search option. Click on the search button.

12. Enter each line of account coding, similar to the check request. Click add row or delete row as needed. The Update Table Data window can be sized according to individual needs to assist with viewing the invoice while entering the data. The first 2 digits of the account number should be the same for all account lines of the invoice.


13. The comments box is a PaperSave only field. It can be used by the originator or approver. The document type, Last approver and Company_DB fields are automatically filled by PaperSave.

14. Once the invoice has been entered into the Document Profile the originator should confirm that the sum of the account distributions is in balance with the invoice.

15. Review the invoice information in the Document Profile and when all is complete and correct click on the Approve button.

16. Papersave will automatically route the invoice to the chosen department head for approval and processing by the Accounting department.

The PaperSave Help tab has the PaperSave Users Guide.


202. Expense Reimbursement Policy

Expense reimbursement policy covers activities by all employees of the Diocese of Charlotte with the exception of parishes and missions. Individuals serving on advisory boards, committees, councils, etc. are volunteers and, as such, are not eligible for stipends, mileage, or other travel- related expense reimbursement associated with their service in this capacity. This policy remains in effect until subsequently revised. Change or reissuance is to be made through the Diocesan Finance Office. Exceptions to this policy are to be approved by the Chancellor.

202.1 Automobile/Mileage Expense Reimbursement for use of an individual’s personal automobile on diocesan business will be made at the mileage rate prescribed by the Chancery. The diocesan Finance Office will notify all parishes, schools, agencies, and Pastoral Center department heads of changes in the approved mileage rate. Mileage reimbursement at the prescribed rate represents total remuneration available for all expenses associated with the business use of one’s personal vehicle, including gasoline, insurance, routine service and repairs, etc. The costs associated with parking tickets and traffic citations is not reimbursable. When travelling on diocesan business by automobile, the diocesan fleet car should be used if it is available. All persons on diocesan business should travel together where possible in order to keep mileage costs to a minimum.

Commuting mileage (mileage from home to assigned work location) is not reimbursable. When travelling from home directly to a location other than the assigned work location, the reimbursable mileage is determined as follows:

• Mileage from home to destination, minus • Mileage from home to assigned work location.

In situations in which the employee has already worked a standard work week, all mileage incurred on any additional days worked in that work week is fully reimbursable.

202.2 Meals The cost of restaurant meals is only reimbursable in the following circumstances:

• The individual is travelling out of town on diocesan business • The individual is attending an all-day seminar and lunch is not included as part of the

cost of the seminar, or • The meal occurs in the context of a business meeting (which is necessary to conduct

diocesan business). The amount reimbursed for restaurant meals is limited as follows: $35 for dinner, $15 for lunch, and $10 for breakfast, plus applicable taxes and tip. If the charge exceeds these amounts, the amount submitted for reimbursement should be reduced accordingly. Reimbursement of travel related meals may be further limited to the IRS approved Per Diem amount, at the discretion of the department head.


202.3 Gatherings and Celebrations When department luncheons or gatherings involving food are held on the premises or sponsored by an office and held off premises, such meals are considered “pot luck” and are not chargeable to the diocese. Special luncheons and events may be charged to the diocese upon prior written approval from the Division Head.

202.4 Business Planning Meetings Business planning meetings held on the premises should be structured so participants can enjoy their normal lunch period. Planning meetings which extend through the lunch or dinner period may choose to offer food for the participants. This expense may be charged to the diocese provided the cost is reasonable and infrequent in occurrence.

202.5 Gifts The gift policy is as follows:

• Hospitalization of an employee or volunteer (not to exceed $50) • Death of an employee or volunteer or member of their immediate family (not to exceed

$100) • Administrative Assistants on Administrative Assistants’ Day (not to exceed $50 per

person) • Gifts for weddings, birthdays, anniversaries, employee resignations, and other such

events are not chargeable to the diocese. • Retirement gifts on behalf of the diocese are allowable upon receipt of written

permission from the chancellor. • Thank you gifts may be given to volunteer council and commission members upon

completion of their terms if approved in writing by the Division Head.

202.6 Overnight Travel Costs incurred while travelling overnight on diocesan business are reimbursable by the diocese provided the expense is necessary and the costs are reasonable. Personal expenses while traveling (in-room movies, side trips and other personal travel, etc.) are not chargeable to the diocese. If the employee’s spouse accompanies the individual, personal costs (including the spouse’s meals, airfare, incremental room costs, etc.) are not chargeable to the diocese.

202.7 Continuing Education, Attendance at Conferences, Workshops, Conventions The cost of attendance at continuing education seminars and inter-diocesan meetings is chargeable to the diocese provided it has been approved in the annual departmental budget. No expenses should be incurred which exceed that which has been approved. When attending such seminars or meeting, only business related expenses may be charged to the diocese. Personal expenses (in-room movies, side trips, and other personal travel, etc.) are not chargeable to the diocese. If the employee’s spouse attends the conference, personal costs (including the spouse’s meals, airfare, incremental room costs, etc.) are not chargeable to the diocese.

202.8 Participation on Boards Professional staff members may be invited to serve on national, regional or local boards, project committees, etc. Prior to accepting invitations to serve on these boards or committees, approval is to be obtained from the employee’s supervisor and Division head.

Financial Policy Manual February 2020

202.9 Employee Advances There are occasions when employees require an advance for expenses to be incurred in connection with diocesan business. As with all expenditures, the employee’s supervisor must approve each such advance. An accounting for the advance must be submitted to the Finance Office within thirty days of the advance and all unspent funds returned within that timeframe. Any funds not accounted for or reimbursed within thirty days will be deducted from the employee’s compensation.

202.10 Authorization of expenses Office Directors/Department Heads must sign all requests for reimbursement of expenses in connection with the general areas of travel, meals, lodging, meetings, and seminar/retreats/conferences. Approval by other persons in the office of such expenditures requires the permission of the Chief Financial Officer.

202.11 Miscellaneous All invoices, reimbursement requests, and other requests for payment must have an explanation of the expenditure.

All requests for reimbursement of expenses covered in this policy must be submitted on expense account forms and shall be verified for compliance with these rules. All information requested on the expense account form must be completed and the original receipts attached to the reimbursement request. Failure to include all of the information and documentation required above will cause the expense to be disallowed.


203. Sales Taxes Eligible for Refund

North Carolina requires that church organizations pay sales tax on all purchases, except on items purchased for resale for which a merchant certificate is required. The Church is not exempt from paying sales tax due to its non-profit status and, as such, does not have a tax-exempt number.

North Carolina Sales Tax is comprised of various elements: State tax, county tax, and a transit tax. In addition to NC Sales Tax, jurisdictions may charge a local tax on prepared foods and beverages. By statute, local taxes are not refundable.

Refunds of state and county sales taxes paid can be obtained by filing form E 585 with the N.C. Department of Revenue within three months after the six-month periods ending June 30 and December 31. This includes the refund of use taxes paid on purchases from vendors who do not charge N.C. sales tax. All invoices to support refund claims are to be on file in the entity’s office, including those pertaining to auxiliary associations. The refund is not available for the taxes included on electric bills, phone bills, or for gasoline.

N.C. sales taxes paid for food and restaurant meals for employees are refundable only if the meal is paid by the organization (either by entity check or entity credit card), and the purpose for having the meal furthers the entity’s work as a non-profit religious organization. Thus, sales taxes on food and restaurant meals for employees are not refundable if the meal is paid by the individual (including the pastor) and then reimbursed by the entity to the individual.

N.C. sales taxes paid on overnight lodging are refundable to the parish/school/agency only if the room is reserved in the entity’s name, and the room is paid for by the entity (either by entity check or entity credit card), and the purpose for incurring the expense furthers the entity’s work as a non-profit religious organization. The sales tax is not refundable if the room is paid for by an individual using his/her cash, check, or credit card, then subsequently reimbursed by the entity. Local occupancy taxes on rooms are not subject to refund under state statute.

As of August 2013, N.C. sales and use tax liability indirectly incurred by an organization through reimbursement to an authorized person for the purchase of tangible property for use in ministry of the organization is considered a direct purchase by the organization and is refundable. Please note, this applies only to the purchase of tangible property, such as office supplies. Reimbursements to individuals for employee food, meals, lodging, and other travel expenses do not qualify for reimbursement.


204. Project Approval and Bid Procedures

Project Approval Process

All major expenditures, other than employee salaries, are to be approved in advance. This also applies to expenditures made by auxiliary organizations and associations.

Major expenditures are those that exceed the following amounts,

· $2,500 for both non-recurring expenditures and expenditures that reoccur on an annual basis,

· $2,500 in total costs for projects that involve multiple payments, and

· $10,000 for recurring expenditures over the term of the agreement (lease payments, etc.).

To obtain approval, the expenditure authorization process in PaperSave is to be used, except as described below.

When the specific expenditure has been budgeted and the cost will not exceed the amount of budgeted funds (available, if there are multiple payments), the following major expenditures may use an expedited expenditure authorization process, in lieu of PaperSave:

· Between $2,500 and $10,000 for both non-recurring expenditures and expenditures that reoccur on an annual basis, and

· Between $2,500 and $10,000 in total costs for projects that involve multiple payments.

To obtain approval for these expenditures :

An “Expedited Expenditure Authorization Form” (EEA Form) shall be submitted, along with a written estimate, proposal or bid to the local approving authority:

· Director of Properties for all facility related expenditures, · Director of Technology Services for all technology related expenditures, · Curial Cabinet member (Central Admin), Principal (MACS schools) or Executive Director

(Catholic Charities) for all expenditures other than Facilities and Technology. The EEA Form and the Estimate/Proposal/Bid shall be signed by the local approving authority, before committing to the expenditure. When submitting the invoice for payment in PaperSave, the previously signed EEA Form and previously signed Estimate/Proposal/Bid shall be uploaded to Accounts Payable in PaperSave, along with the invoice.


Competitive Bid Process with Outside Vendor

All expenditures of $10,000 or more:

· Written bids from at least three vendors are to be obtained prior to selecting a vendor. The vendor is to be selected on the basis of price, reputation and commitment to finish the project within any time constraints. If the project is not awarded to the lowest bidder, justification of the vendor selected must be documented, signed by the approving authority and retained on file.

All expenditures less than $10,000: · If the estimated project cost is less than $10,000, the vendor may be selected without obtaining

competitive bids. However, selection of the vendor for hire is to be based on prior competitive bids submitted to the parish (or other diocesan entity) and the quality of previous projects performed for the parish (or other diocesan entity). A written estimate of the project cost is to be obtained from the selected vendor prior to commencement of work.


300 EMPLOYEE/INDEPENDENT CONTRACTOR ACTIVITIES

301 Completion of Time Sheets

1. Type in your “Name” and “Department” in the appropriate fields.

2. The “Pay Period Ending” date will fill in automatically. You don’t need to enter anything in this cell. See #3 below.

3. Type in the date for the beginning of the pay period (this will be a Sunday) in Cell C-9 (this cell is on the

“Date” line and is highlighted in green). For example – if the beginning date of the pay period is October 31, 2004 – type in “10/31/2004”. You will then notice that all of the dates for the pay period (that appear horizontal across the page) as well as the “Pay Period Ending” field (on the top left hand corner of the page) will automatically fill in.

4. In the corresponding line for each day:

• Type in the times you came “in” and “out” (working and non-working periods of time, excluding breaks) throughout the day. Record your time to the nearest 5 minutes.

• Put these times in hours and minutes. For example, if you come in at 7:30 AM type the number

7 – then colon – then the numbers 30 – then AM or PM. You will notice that when you type “A” that AM will automatically fill in. The same will occur when you type “P” – PM will automatically fill in.

• If you forget to use a capital P to indicate PM – the system will revert to AM for the hours 1

through 11 – for 12 it reverts to PM. If you use the wrong time reference, you will know you have made an error since the total hours for that day will appear as a red negative figure. If that occurs – just go back and put in the correct AM or PM – and the system will recalculate the total hours correctly.

• If you need to delete a time that is in a field – just hit the delete key. Do not just hit the space

bar and enter. This will disturb the formulas – and you will most likely see “###” appear in the total field. If this occurs – go back and just hit the delete key in the appropriate fields that you want to appear blank.

• If you need to fill in hours for Holiday, Approved Location Closing, Vacation, Sick or Unpaid

Absences – these times should be entered as total hours taken. For example, if you took seven and a half hours of vacation time – type the number 7 – a period – and the numbers 50 (7.50). If you needed to show six hours and 45 minutes of sick time – it should appear 6.75 (45 minutes is 75% of an hour).

Note: Various cells on the excel timesheet have been locked to protect the calculation formulas.


• Part-time employees average out their approved weekly standard hours over five days. For example, if an employee’s hours are 15 hours per week (the employee may work only three days a week) their Holiday, Vacation or Sick time would be three hours per Holiday, Vacation or Sick day because their hours are averaged out over the five day work week. Employees would fill in their total hours (3) in the Holiday, Vacation or Sick time cell on the timesheet.

5. Employee must sign their timesheet and then their Supervisor approves their hours and signs the

timesheet. The timesheet is then submitted to the Payroll Processor in the Finance Department.


302. Employees Working In More Than One Department Hourly employees are sometimes needed to work in a department other than their primary area of responsibility. The need for additional assistance could result from any number of situations, such as extra work generated by special projects, deadlines, employee absenteeism, etc. In such cases, consideration may be given to using Pastoral Center employees from a different department. There are a number of benefits to this practice, including cross-training of employees, etc. However, when considering this option the following factors should also be taken into account:

a) The employee’s current work schedule; b) How suitable the employee is to perform the job; c) Whether the need for additional assistance is a long-term or an occasional situation; d) The effect the additional work would have on the employee’s regular job.

These issues should be discussed with the employee’s supervisor and a mutually agreeable arrangement developed.

In general, employees will receive the same hourly wage for their work, regardless of the department. Additionally, the standard for applying compensation for overtime is determined at the employer level, not the department level. Therefore, hourly employees will receive compensation at one and a half times their hourly rate for all hours worked exceeding forty in the weekly period, regardless of the employee’s time among various departments.


303. Fees/Payments to Employees for Services Provided Diocesan organizations--Lay employees of Diocesan organizations, whether located in Charlotte or another city, are prohibited from charging or accepting payment (other than the employee’s payroll- based compensation) for their services when participating in any diocesan, parish or agency sponsored event or activity under the following circumstances:

• When the services performed relate to the employee’s area of responsibility, or

• When the services are performed during the employee’s work hours.

An exception may be considered for extended assignments that are beyond the normal responsibilities of the position and which occur outside the employee’s work schedule. Such exceptions are to be approved in advance by the Chancellor.

Employees may retain unsolicited fees offered for services performed that do not meet either of the above criteria.

Non-Diocesan organizations--Consultation services or participation in activities/events for non-Diocese of Charlotte organizations are to be approved in advance by the employee’s supervisor and division- head. If participation in a non-Diocese of Charlotte activity/event provides work-related enrichment or knowledge to the employee, or otherwise benefits the Diocese, the employee may engage in the activity and prepare for the activity during diocesan work hours if approved by his/her supervisor and division- head. Subject to the above approvals, the employee may retain the fees received for services performed. If the work activity or preparation for the activity occurs during employee work hours, the employee must inform his/her supervisor and division-head of the amount of compensation received.


304. Payments of Stipends to Employees/Volunteers for Additional Services Provided This policy addresses the payment of stipends to employees and volunteers for activities such as coaching, club mentoring, and various clerical activities. Current employees are paid through payroll, and volunteers are paid through accounts payable subject to Form 1099 filing requirements. However, there are criteria that must be met by both employees and volunteers in order for them to receive stipend payments.

Individuals eligible to receive “stipend” payments:

1. Exempt employees – may receive payments (nominal amounts) in addition to regular salary for volunteer activities. Stipend payments to employees will be processed through payroll and amounts will be included on W-2s.

2. Non-exempt employees – may receive lump sum payments, but amount of payment must be nominal and must meet all stipend requirements. Otherwise, timesheets must be kept and employees must be paid on an hourly basis. Stipend payments to employees will be processed through payroll and amounts will be included on W-2s.

3. Volunteers – may receive lump sum payments, but amount of payment must be nominal and must meet all stipend requirements. Volunteers will be paid through accounts payable (rather than payroll), and they will receive Form 1099 at the end of the calendar year, if the amount paid meets the IRS threshold for reporting requirements. Note – volunteers paid through payroll will be treated as employees and will be subject to the Fair Labor Standards Act, Workers’ Compensation and other legally mandated benefits.

In order for an activity to be considered eligible for a stipend payment to a non-exempt employee or volunteer, the activity must meet the following criteria:

1. The employee or volunteer performs the services for charitable reasons, without promise, expectation or receipt of compensation (although a nominal fee may be provided),

2. The employee or volunteer offers the services freely and without coercion, and 3. If performed by an employee, the volunteer services are not the same or similar to the

employee’s regular work duties. For both non-exempt employees and volunteers, the stipend must meet the following requirements:

1. Cannot be tied to productivity, 2. Cannot be contingent on the performance of the students or volunteer, and 3. Must not be more than 20% of what an employee would be paid to perform the same services

(amounts to be established for each position). The 20% amount is the total available from all funding sources, not individual payments from each.

Both employees and volunteers must sign an Acknowledgment of Volunteer Status form before beginning the volunteer activity. Amount of stipend payments (nominal amounts) will be determined based on maximum amounts for each position.


305. Mileage Reimbursement to Independent Contractors/Volunteers The Internal Revenue Service annually issues standard mileage rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. The Diocese of Charlotte reimburses mileage at the rate prescribed by the IRS. Current rates can be viewed at the following link:

http://www.irs.gov/Tax-Professionals/Standard-Mileage-Rates

The business standard mileage rate is used by employers for computing employee reimbursement amounts when an employee operates an employee-owned automobile for the employer's business purposes. In the event that independent contractors are to be reimbursed for mileage incurred in the course of business, the reimbursement would be at the standard business rate. However, the standard business rate is not to be used to reimburse volunteers.

Current law allows charities to reimburse volunteers, on a nontaxable basis, for actual allowable expenses incurred by the volunteer, or at the charitable mileage rate of 14 cents per mile. Allowable expenses include gas, oil, parking fees and tolls; but depreciation, maintenance, and insurance are not allowable expenses. When reimbursing the volunteer for actual allowable expenses for use of their automobile, it is necessary to obtain receipts to substantiate all expenses incurred.

http://www.irs.gov/Tax-Professionals/Standard-Mileage-Rates


306. Cell Phone Reimbursements

306.1 Policy Mobile telephones/smartphones may be required in order to maintain regular communication with Pastoral Center associates and constituents for certain positions which involve local or long-distance travel. It is the employee’s responsibility to provide the equipment and voice/data service to meet the expectations of the position. Upon approval by the department and division heads and, subject to budget constraints, reimbursement of the employee’s cost will be made subject to the following maximum amounts:

1. Positions that require occasional travel – voice communication: $45.00 per month

2. Positions that require frequent travel – voice and data communication: $90.00 per month

306.2 Submission Procedures 1. Complete the “Cell Phone Reimbursement Request” form, attach a copy of the cell phone bill and

submit to Accounts Payable by the 10th of the month following the cell phone invoice date. 2. Reimbursement will be issued between the 15th and 20th of the month. The amount reimbursed

will be the lesser of the approved reimbursement amount or the amount of the cell phone bill. Payment represents a reimbursement of expenses incurred in the conduct of diocesan business and, as such, does not represent taxable income to the recipient.


400 OTHER

401. Fundraising

It is important that the Diocese of Charlotte adhere to all federal and state regulations applicable to each of the fundraising efforts that we employ. The following forms are designed to ask the questions that, when answered properly, will help ensure that we adhere to these regulations. The forms are as follows:

• Fundraising Event Information (for events such as a golf tournament, gala, etc.) • Fundraising Sales Information (for sales of items such as books, scrip, baked goods, etc) • Raffle Information (for any raffles, at any time, for any amount)

The applicable form is to be completed for every fundraising event being planned (prior to taking place). The purpose for this information is to make sure all the potential issues are addressed.

Completed forms are to be sent to the Finance department (Attn: Controller) for review at least 3 weeks before the event is scheduled to occur.

(See next 3 pages)


FUNDRAISING EVENTS INFORMATION FORM DIOCESE OF CHARLOTTE

Department: __________________________________________________________

1. Type of fundraising event (dinner/dance, golf tournament, silent auction, casino night, etc)

2. Fundraiser is for the benefit of:

3. Date of the event:

4. Location of event:

5. Price of ticket to event:

6. Value of event per attendee (the market value, not the cost to you):

7. How is the value determined?

8. Are attendees being informed of the value of the event and that their tax deduction is limited

to the excess of the amount paid over the event’s value?

9. How is the information in question #8 being communicated?

10. Contact person for the event:

• Name

• Phone Number

• Email Address

Completed by (Print Name) Date

Signature


FUNDRAISING SALES INFORMATION FORM DIOCESE OF CHARLOTTE

Department: _________________________________________________________

1. Item(s) being sold:

2. Sales price of item(s) being sold:

3. Sale is for the benefit of:

4. Period of time the sales will take place:

5. Where are the item(s) being sold:

6. By whom are the item(s) being sold:

7. Contact person for the sale:

• Name

• Phone Number

• Email Address

Completed by (Print Name) Date

Signature


RAFFLE INFORMATION FORM DIOCESE OF CHARLOTTE

Department: _________________________________________________________

1. Item(s) being raffled:

2. Value of item(s) being raffled:

3. If non-cash prize, how is the value determined?

4. Raffle is for the benefit of:

5. Date of raffle:

6. Price of raffle ticket:

7. Will winner(s) complete form W-9 prior to receiving winnings?

8. Will income taxes be withheld from prize winnings?

9. If a W-2G needs to be completed and sent to the winner and the IRS – this should be done by the diocesan Accounting Department. Please send the required information to the Controller of the Diocese (Mason Beaumont) within 10 days of the raffle. Indicate on this line if a W-2G will be required.

10. Contact person for the organization:

• Name

• Phone Number

• Email Address Completed by (Print Name) Date

Signature


402. Procedures when Credit Cards are Accepted at Fundraisers

a. The Director establishes a secure area for accumulating credit card information the night of the fundraiser.

b. In the week prior to the event, designated staff are assigned specific tables at the fundraiser. c. At the event, each fundraising table has been supplied with blank pledge cards and empty envelopes. d. Immediately after the “ask”, the attendees are directed to complete their pledge cards and seal them in

the envelopes provided. e. Attendees are directed to raise their hands or otherwise notify the staff that they are ready for collection. f. The designated staff or “collectors” proceed to each table to collect the sealed envelopes, blank pledge

cards, and empty envelopes. g. The collectors hand-deliver the items to the designated staff or “handlers” in the secure area. h. The envelopes are transported to the office and placed in a locked safe or in a bank night depository by

at least one staff person and a police escort. i. The envelopes are retrieved the next business day and the credit card pledges are processed

by the designated staff. (See Credit Card Processing Procedures below). Cash gift amounts are written on the pledge card and returned to the pledge envelope. Checks are stapled to the pledge card. Cash, checks and credit card pledges are sorted by type and totaled. Groups of each type are banded and labeled.


403. Credit Card Processing

a. Upon receipt of credit card information (whether received directly via U.S. mail, through interoffice mail, or on pledge cards or authorization forms completed in the office), the information is to be locked in a desk drawer, file cabinet or safe until ready for processing.

b. All pledge card envelopes are delivered, unopened to the staff person responsible for processing donor gifts. Any credit card payment or pledge is set aside for processing by the designated staff person. The cards are locked in a desk or safe until processing.

c. The designated staff person removes from the safe/locked desk drawer only the number of cards to be processed at one sitting.

d. The designated staff enters their user login information directly into the system. The user information is specific to each staff person and is not to be shared.

e. The credit card pledge/payment is entered into Vanco (CCDOC) or Raiser’s Edge (all other diocesan- level entities) for processing. The full card number is only visible while processing the specific record. Once the next record is started all but the last four digits are masked/encrypted. All reports contain only the last 4 digits of the card number. (The 3 digit security code is not required for processing.)

f. The staff person keeps the items in view at all times. g. After processing is confirmed, the designated staff person immediately cuts off the card

number on the pledge cards and shreds the numbers. h. The designated staff person prints the approved transactions and files/forwards with

supporting documentation. i. If the staff person has to leave for any reason, all credit information is locked up. j. Online gifts entered directly by donors are processed through Vanco (CCDOC) or

NetCommunity (all other diocesan-level entities); only the last 4 digits of the card number are visible to staff.


404. Data Privacy and Security Definition – Protected Personal Information (PPI): Any information, especially when in association with the name of the individual owner (including employees, vendors, and donors), that is not already public and is not authorized by the individual owner to be made public, including but not limited to:

a) Social Security numbers and other government issued identifying numbers, b) passport numbers, c) credit card numbers, d) bank account & routing numbers, e) payroll information, f) date of birth, age, etc.

Guidelines:

• Access to and disclosure of PPI is to be strictly limited to individuals with an official need to know.

• All PPI received in hard copy form is to be secured at all times - from the time it enters the building, to the time it is entered or processed, to the time it is destroyed.

o PPI entering the building by mail is to be delivered in sealed envelopes (unless it is hand delivered directly by and to those with authorization to view it), rather than through unsealed interoffice envelopes.

o Once the envelope is opened, the information is to be locked in a desk drawer or safe until it is processed. PPI is never to be left unattended (lying on a desk, open in an inbox, in a chair, etc.) even for just a few minutes.

o Once the information is processed, PPI is to be destroyed immediately (in the case of credit card numbers) or filed in a locked filing cabinet.

o There should be a regular schedule for destroying PPI, which is strictly adhered to.

• All PPI received electronically is to be kept in network folders (not on a local computer’s hard drive) that are password protected with access limited to only those with a need to know. The email is to be deleted from the In-box and from the Deleted email folder. These files are to be deleted immediately after processing for its intended use, where applicable. PPI is never to be stored on mobile phones, tablets, laptops, or local computer hard drives.

• Credit card numbers received through the mail or received verbally by telephone and hand-

written are to be secured at all times and destroyed (via cutting and/or shredding) immediately after processing.

• When dealing with student emergency cards, a balance between accessibility and privacy must be maintained. Student emergency cards are to be kept in a cabinet or drawer that is readily available to those who need access to the information; they should not be placed in a position where they could be viewed or accessed by school visitors or non-authorized staff.


• When sending PPI electronically, it is to be sent via encrypted email. If encrypted email is not available and a time sensitive situation occurs, the PPI can be sent via non-encrypted email only if it can be sent in such a way that the PPI cannot be associated with a particular individual. For example: Acceptable email: The correct pay rate for the teacher we discussed in a previous email is A-5. Unacceptable email: The correct pay rate for Mary Smith is A-5. Documents containing PPI (tax forms, background authorization forms, etc.) are not to be sent as attachments to non- encrypted email.

• When sending PPI via fax, it is to be sent to a fax machine located in a secure area, not to a machine located in a public area.

• When sending PPI via the mail, it is to be addressed to a specific individual and marked “confidential”. When sending PPI by courier, it is to be sent in a sealed envelope, addressed to a specific individual and marked “confidential”.


405. Sales Subject to Sales Tax

N.C. Department of Revenue regulations stipulate that persons or entities engaged in business in North Carolina are required to collect and remit sales tax on all tangible personal property sold or delivered for storage, use, or consumption in North Carolina.

The term “persons” includes churches and religious organizations. However, the law provides exceptions under certain circumstances.

Sales tax does NOT need to be charged under the following circumstances:

• When sales are conducted on an annual basis, e.g. an annual bazaar, an annual auction, etc., when the purpose of such sales is to raise funds for the activities of the church, and the proceeds are actually used for such purposes. To be exempt, the sale must be consummated within sixty days after the first solicitation of any sale made during the organization’s annual sales period.

• Sales of food by a church or church-related organization if the net proceeds are used in support of the primary activities of the organization.

If textbooks or course materials are used in conjunction with a seminar, workshop or other educational program – and the textbooks or course materials are distributed without charge to the participants, sales tax need not be charged. In order to recover the cost of the materials, the cost may be included in determining the fee for enrolling in the seminar or workshop, without any sales tax consequences.

All sales of tangible personal property which do not meet the above criteria are subject to North Carolina sales tax.

The following procedures should be followed when charging and remitting sales tax:

1. Determine the percentage that needs to be charged for sales tax. Sales tax rates vary by county. Rates can be viewed at this link: http://www.dornc.com/taxes/sales/salesrates_10-14.html

2. If you are shipping or delivering the merchandise to a purchaser in a county other than the county in which the sale occurs, you are required to collect and remit tax due for the county to which the property is shipped or delivered.

3. All sales revenue and sales taxes collected are to be listed on a Sales Log (see Table 405.1). This log is a record of what was sold, the date the sale took place, and how much money was collected. Once completed, this log should be attached to a deposit advice form. There should be one Sales Log per deposit advice form.

4. Record the sales revenue and the sales tax separately on the deposit advice form. The actual sales revenue should be coded to the general ledger account applicable to the transaction, i.e., sale of merchandise. The sales tax collected should appear on a separate line on the deposit advice form. Please contact the Accounting Department to obtain the general ledger account code applicable to the county in which you are making sales.

http://www.dornc.com/taxes/sales/salesrates_10-14.html