1. Catholic Diocese of Sioux Falls
2018 Administration Workshop

2. Today’s Goals Thank you! Interaction Your workshop, Ask questions
Challenge the presenter
Prizes!

3. Accounting and Finance
What’s new?
Income Tax Changes
Sales/Use Tax Changes
Revisit/Update Existing Items
Parish Deposit & Loan Fund Trust
Best Practices
Accounting/Reconciliations
Documentation
Record Retention
Resources

4. 2018 Tax Cuts and Jobs Act (More Common Changes and Impact)
Income tax rates
Personal Exemptions
Standard Deductions
Itemized Deductions-certain limitations
Credits and Estate Taxes

5. 2018 Tax Cuts and Jobs Act (What Should We Be Doing?)
Revisit W-4
New form issued
Lay Employee Considerations
Final W-4 issued in 2020

6. 2018 Tax Cuts and Jobs Act (What Should We Be Doing?)
Clergy Considerations
Increased Standard Deduction
Itemized Deductions-Certain Limitations
Clergy Mileage Reporting
Elimination of Business Mileage Deduction
Contemporaneous Records

7. 2018 Tax Cuts and Jobs Act (What Should We Be Doing?)
Donor Considerations
Increased (Doubled) Standard Deduction
Gifting Ideas
Bypass Income (Grain)
Bypass Gains (Stock)
Corporate Contributions
Marketing
Donated Services

8. 2018 Tax Cuts and Jobs Act (What Should We Be Doing?)
Charitable Contributions at All Time High
Belief in Mission-Not Tax Deductibility
Reporting (Transparency)
Communicate Needs
Tell Story of Programs
Provide Giving Options (Electronic)

9. South Dakota Sales Tax Law November 1, 2018
US Supreme Court Ruling
Remote Sellers and Market Place Providers
Over $100,000 In Revenue
Over 200 Transactions
Invoice, Collect and Remit Sales Tax

10. South Dakota Sales Tax Law What Should We Be Doing?
Continue Filing Use Tax Return
Law Does Not Cover All Sellers
May Have Miscellaneous Reporting Requirements
Watch Invoices to Avoid Double Payment
Edit Vendors in System if Necessary
Work with Vendors to Ensure Their Requirements

11. Parish Deposit & Loan Fund Trust Revisited
Established in 2016
South Dakota Business Trust
Parishes, Parish Programs and Diocesan Related Entities
Deposits, Loans and Investments
Not Available to Individuals
Not Available to Chancery
Depositors are Certificate Holders

12. Parish Deposit & Loan Fund Trust Revisited
Separate from Chancery
Approximately $30 Million in Assets
Under 50% of Total in Loans
Remainder in Bond Investment Portfolio, Investment Committee
Make Deposits to “Parish Deposit & Loan Fund Trust”

13. Parish Best Practices Record Rention
Depends on Action, Expense or Event it Records
Permanent
Financial Reports and General Ledger
Property (Deeds) and Insurance
Legal and Meeting Documentation
History of parish
Seven Years
Payroll – 7 years beyond employment
Bank statements and records
Paid Invoices
Electronic Storage

14. Parish Best Practices Utilize the Computer System Funds Deposited ASAP
Remote Capture (Desktop)
Deposits Posted ASAP
Batch Checks For Payment
Uniform Payroll (Twice Per Month)

15. Parish Best Practices Reconcile Bank Within One Week
Utilize System to Monitor Cash
Supporting Documents for All Accounts
Know What is in Each Account
Funds on Hand for Each Dedicated Account or Restriction
Update W-9’s
Survey Banks for Accounts

16. Parish Best Practices Hold and Document Council Meetings
Maintain Minutes and Log of Action Items/Resolutions
Financial Statements to members in advance
General Ledger Available to Chair (or all)
Request to Bishop for any Extraordinary Administration over $10,000
Contract Review Over $10,000
Summary Report to Parish at Least Annually
Annual Budget
Annual Report to Diocese

17. Tax Exemption Exempt from income tax 501(c)3
Official Catholic Directory-Obtain from Chancery
USCCB Group Ruling- counsel/upload/group-ruling-letter.pdf
Sales/Use Tax-Parishes not exempt
Sales/Use Tax-School are exempt

18. Questions?

19. Thank you