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Temporalities Manual Full-Print Version Temporalities Manual for the Diocese of Beaumont, its parishes/schools/entities Revised Spring, 2005 Table of Contents INTRODUCTION ....................................................................................................................................... iv IMPLEMENTATION LETTER ................................................................................................................. v CHAPTER 1- BASIC ELEMENTS OF INTERNAL CONTROL ....................................................... 1-1 I. HONEST AND CAPABLE EMPLOYEES ...................................................................................................... 1-3 II. DELEGATION AND SEPARATION OF DUTIES ...........................................................................................1-4 III. PROCEDURES FOR THE PROCESSING OF TRANSACTIONS....................................................................... 1-4 IV. SUITABLE DOCUMENTS AND ACCOUNTING RECORDS .......................................................................... 1-6 V. PHYSICAL CONTROL OVER ASSETS AND ACCOUNTING RECORDS .......................................................... 1-8 VI. INDEPENDENT VERIFICATION OF PERFORMANCE .................................................................................1-9 CHAPTER 2 - SPECIFIC CONTROLS ................................................................................................. 2-1 I. FINANCIAL PLANNING AND CONTROL CYCLE ........................................................................................ 2-1 II. CASH MANAGEMENT CYCLE .................................................................................................................2-2 A. BANK ACCOUNTS .................................................................................................................... 2-2 B. CASH RECEIPTS ....................................................................................................................... 2-4 1. HANDLING OF MONIES .................................................................................................. 2-5 2. STEWARDSHIP .............................................................................................................. 2-6 3. STEWARDSHIP DIRECTION ............................................................................................ 2-6 4. AUXILIARY ORGANIZATIONS ........................................................................................ 2-8 C. CASH DISBURSEMENTS ............................................................................................................2-9 D. PETTY CASH ..........................................................................................................................2-1 0 E. DIOCESAN DEPOSIT AND LOAN (INVESTMENTS) .....................................................................2-11 F. RECEIVABLES ........................................................................................................................ 2-12 G. PAYABLES ............................................................................................................................ 2-13 III. PAYROLL ..................................................................................................................................... 2-14 A. PERSONNEL ADMINISTRATION AND EMPLOYMENT FILE MAINTENANCE ................................ 2-15 B. TIMEKEEPING AND PAYROLL PREPARATION .......................................................................... 2-16 C. PAYMENT OF PAYROLL ......................................................................................................... 2-16 D. PREPARATION OF PAYROLL TAX RETURNS AND PAYMENT OF TAXES .................................... 2-18 a. FEDERAL PAYROLL TAX CALENDAR ............................................................................2-20 b. PENALTIES .................................................................................................................2-22 IV. PURCHASING CYCLE .........................................................................................................................2-23 A. PROCESSING PURCHASES ...................................................................................................... 2-23 B. RECEIVING GOODS AND SERVICES .........................................................................................2-24 C. RECOGNIZING THE LIABILITY ................................................................................................ 2-24 D. PROCESSING AND RECORDING CASH DISBURSEMENTS .......................................................... 2-25 V. RISK MANAGEMENT .......................................................................................................................... 2-25 LIABILITY ................................................................................................................................. 2-26 ALCOHOL ....................................................................................................................... 2-26 POLITICAL ACTIVITY ...................................................................................................... 2-27 COPYRIGHT RESTRICTIONS ............................................................................................. 2-27 AUTOMOBILE ........................................................................................................................... 2-27 WORKERS' COMPENSATION ....................................................................................................... 2-28 CERTIFICATE OF INSURANCE ..................................................................................................... 2-28 SPECIAL EVENTS ....................................................................................................................... 2-28 VI. CONCLUSION .................................................................................................................................... 2-29 CHAPTER 3 - INTERNAL CONTROLS REVIEW ............................................................................. 3-1 03/24/10 1 APPENDIX A - PARISH/MISSION FINANCE COUNCIL GUIDELINES ...................................... A-1 EXHIBIT A-a END OF FISCAL YEAR REPORTING FORM ............................................................................... A-8 APPENDIX B - BUDGETING .................................................................................................................B-1 I. PURPOSE OF BUDGETING ....................................................................................................................... B-1 II. PRINCIPALS OF BUDGETING ..................................................................................................................B -2 III. FINANCIAL PLANNING CALENDAR .......................................................................................................B -3 IV. STEPS IN BUDGET ANALYSIS AND DEVELOPMENT ............................................................................... B-3 V. EVALUATE THE PROJECTED BUDGET ....................................................................................................B -5 VI. SUBMIT THE BUDGET AND SUPPORTING DOCUMENTATION ..................................................................B -6 EXHIBIT B-a BUDGET ASSUMPTIONS .........................................................................................................B -8 EXHIBIT B-b BUDGET APPROVAL FORM ................................................................................................. B-12 APPENDIX C - CHART OF ACCOUNTS ............................................................................................ C-1 EXHIBIT C-a SMALL PARISH MODEL ..........................................................................................................C -3 EXHIBIT C-b MEDIUM PARISH MODEL .....................................................................................................C -18 EXHIBIT C-c LARGE PARISH MODEL ....................................................................................................... C-44 EXHIBIT C-d SCHOOL MODEL ................................................................................................................. C-76 APPENDIX D - PERMISSIBLE FORMS OF GAMBLING UNDER TEXAS LAW ........................ D-1 A. RAFFLES ........................................................................................................................................ D-1 B. BINGO ........................................................................................................................................ D-2 C. CARNIVAL GAMES ................................................................................................................................ D-5 APPENDIX E - MASS STIPENDS ..........................................................................................................E-1 APPENDIX F - COLLECTION OF THE OFFERTORY ..................................................................... F-1 EXHIBIT F-a COLLECTION COUNT REPORT................................................................................................ F-4 EXHIBIT F-b CONFIDENTIALITY AND NONDISCLOSURE AGREEMENT ........................................................ F-5 APPENDIX G - ASSESSMENTS, BEQUESTS, GRANTS, AND SPECIAL COLLECTIONS ...... G-1 I. CATHEDRATICUM .................................................................................................................................. G-1 II. ANNUAL APPEAL .................................................................................................................................
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