It is with mixed emotions that I tell you this will be my last letter to you as your Canon for Administration and Finance. In two weeks I will leave for Auburn, Alabama to become the next executive director of the Lee County Humane Society. As many of you know, the cause of animal welfare is one of my passions. I feel very blessed and very excited for this opportunity to make a difference in the lives of these animals.

I want you to know that I am very proud of what we have accomplished in the area of administration and finance over the past five years. Never have I experienced such a dedicated and hardworking group of folks, both staff and volunteers. We put our heads together, rolled up our sleeves, and transformed the way this organization does business. I have been awed by your insight and tremendous skills and experience.  The lessons you have taught me about teamwork and collaboration will be with me forever.

A search committee has been formed to determine what comes next. The diocese is in a different place than it was five years ago, therefore the position of Chief Operating Officer may need to be configured somewhat differently. I can assure you that you are in good hands and the right person will be found.

I intend to stay in touch and keep you apprised of the progress we are making at the Lee County Humane Society. I am thrilled that I will be working with a group of folks that is every bit as dedicated and hardworking as you. They are ready to do whatever it takes to become the most effective animal welfare organization in Alabama. This will be no easy feat as this is an organization of fifteen staff members taking in 6,000 animals each year. But I have seen transformation, and I am confident that we will do this in Lee County.  I ask for your prayers and support as we give it everything we’ve got.

If you would like to check us out, the website is www.leecountyhumane.org. If you love animals and would like to support our work, I hope you will consider making a donation while you’re there. Every little bit will make a difference in the lives of these animals.

The people of the Episcopal Diocese of Northern California have been a very important part of my life and formation.  If you would like to stay in touch, please send me an email to bobbi@norcalepiscopal.org before my last day in the office which is May 15, 2012. I will add you to my personal contacts and check in with you from time to time.

God bless you for all you do!

Once an injury occurs, individuals involved may soon realize the cost associated with injury prevention would have been much less than the cost associated with the injury. Don’t let this happen or continue in your workplace!

Keep employees safe and working! Take preventive action by using the free information, resources, and services provided here to strengthen your workplace safety program.

Inventory your workspace:

- Having your head tilted even as much as a couple of degrees off of center can cause serious neck strain. Check out your work space – is it set up so that you are facing your computer straight on?

- Is your chair depth short enough that your knees stick out from your chair, so that it does not put pressure on the nerves in your legs?

- Is your keyboard set up so that your wrists are in a neutral position? The neutral position of the wrist is considered to be approximately straight and not significantly bent to the side, up, or down.  Choose a keyboard that is comfortable for you to use.

- Identify your "Reach Zones"

- Items directly in front of you and which you can reach without stretching your arm are in the  "Easy Zone;" they are easy to reach.  You should consider putting items you use constantly in this zone.

- Items that you can reach by extending your arm, but not moving are in the "Awkward Zone."  You should consider putting items you use often (but not routinely) into this zone.

- Anytime you have to both move and extend your arm to reach something, it is in the "Avoid Zone."  You should avoid putting anything you use with any regularity in these areas as regularly reaching for them can cause stress to your musculoskeletal system (arms, neck, and back). 

Sources: The Episcopal Church Medical Trust, Peter K, Rani Lueder and Chris Grant & Washington State Department of Labor and Industries.

Spring is in the air. It’s a new season and a fresh start--time to check on potential problem areas in and around your church. It’s the vestry’s version of spring cleaning.

Outside

1. Do a walk-around. Take a careful look at buildings, walkways, entrances and exits, steps, and parking areas. You checked those areas before winter began, but harsh weather can accelerate the need for repairs.

2. Make two lists, one that lists what needs to done right away, and one of long-term projects.
What kinds of tasks need to be done immediately? Repair broken steps, loose handrails, and cracks in walkways or the parking lot, and clear away debris. If something has the potential to cause physical injury, take care of it promptly.
Once you fix immediate problems, start on your second list, which could include items such as cleaning the gutters, checking the roof and flashing, and repairing deterioration of concrete and seals around windows and doors.

Continue reading...

Does your church practice fair employment?

This may seem like a strange question, but have you ever thought about how your lay employees are treated? Does your church comply with state and federal labor law, with national canons, and diocesan policy? Are there written employment policies? Are employees evaluated at least annually based on a written job description? Do they receive fair wages and benefits? Are they paid for all the hours they work and do they get the appropriate rest breaks and a lunch period?

The Lay Pension Plan –
Resolution A138 and the related canon passed by the 76th General Convention established a Church-wide Lay Employee Pension System to be administered by the Church Pension Fund (CPF). The resolution states that employers who are subject to the authority of the Church and who have eligible lay employees (employees scheduled for at least 1,000 hours of compensated work annually) must provide those lay employees with a pension. Doing so will be a matter of canon law January 1, 2013.

The first question –
Do you have eligible lay employees? – will help determine whether the resolution applies to you at this time. If you have lay employees working 20 or more hours a week (which is about what 1,000 hours works out to), then the answer is yes, you have eligible lay employees. If you do not have lay employees working 20 or more hours a week, then the answer is no, the resolution does not apply to your church or institution at this time.

To learn more about the resolution and the lay employee pension plans offered by Church Pension Fund (CPF), visit the Lay Pensions Resource Center. You can sign up for webinars hosted by CPF, or take an interactive tutorial. You can compare lay pension plans, and review the employer guides to the two different types of pension plans offered by CPF. You can also use a simple pension contribution calculator to determine the possible cost of implementing the resolution for your congregation or school – in total, per pledging unit, or per student in the case of a school – so you can share that information with your vestry or board.

Implementation Survey –
If no one from your congregation has already done so, please click the link below to complete a brief questionnaire. It takes less than 3 minutes and, depending on your answers, may be all you need to do in order to comply with the resolution.
Resolution A138 Survey

As Episcopalians we have a responsibility, which we accept by virtue of our baptismal vows, to behave morally and ethically in all of our affairs. Governmental laws and church policies provide substance and form to guide us in carrying out this responsibility but we all know what is right and what is wrong. It shouldn’t require pages of regulations and policies to inform right relationship with our employees.

Resources:

- The Lay Pension Resource Center
- Pension Contribution Calculator
- Resolution A138 Survey
- “Workplace Values in the Episcopal Church”

Sources: The Church Pension Fund, Canon Bobbi Yeo - "Fair Employment"

Click here to see available bulletin inserts. 

What is The Small Business Tax Credit:
As part of the Health Care Reform legislation, a tax credit of up to 25 percent of health premiums was created for small businesses as an incentive for providing insurance for their employees.  This credit became available in the tax year 2010.  In order to be eligible for the credit, your business (church/school/organization) must have no more than 25 full time equivalent (FTE) employees, average employee wages of $50,000 or less, and pay at least 50 percent of the premium for single healthcare coverage for employees. Most of the churches in the Episcopal Diocese of Northern California will qualify.

Qualifications:

- If you are following the rules of our healthcare plan, your business meets the 50 percent qualification.  According to our insurance rules, all exempt employees or hourly employees working 20 or more hours per week must be offered medical and dental insurance, and it must be employer paid at 80 percent of the lowest cost plan (prorated between 20 and 30 hours). 
- While clergy count towards the total number of employees at an institution (must be less than 25 total FTE), their salaries are not counted when calculating the average wage.  A church with two employees, a clergyperson making $75,000 a year and a layperson making $45,000 a year would have an average salary (for the purposes of this tax credit only) of $22,500. 
- The IRS has a step by step guideline for the calculation.  To determine for sure that you qualify, use the Three Simple Steps Chart provided by the IRS. 

How to do the Calculation:
Once you determine that your church does qualify, you are ready to fill in the paperwork for your tax credit.  You will need to file an IRS Form 8941.  Make sure to read the instructions for filling out this form, which can be found here.  Form 8941 will tell you when to seek guidance.  We recommend that you seek the help of a tax professional as this calculation is fairly complicated and legalistic. 

Filing a Form 990-T:
We recommend that you seek the help of a tax professional in filling out your 990-T.  This is a very complicated and important form that requires the help of an expert.  If you have a tax professional in your congregation or with whom you already work, we suggest that you work directly with that person to complete this form. 

Tax Professionals:
If you do not already have a tax professional, the Office of the Bishop has a relationship with Gilbert and Associates, and we have reached out to them.  They are willing to work with all of our churches.  They believe that they can complete a 990-T and the Form 8941 for any individual church for a total fee of  $500 or less.  

We strongly recommend against filing your 990-T without the aid of a tax professional. 

Deadline:
The deadline for filing the 2011 Small Employer Health Care Tax Credit is May 15, 2012. 

The Future of the Small Business Tax Credit:

-The Small Business Tax Credit is intended to be in effect from 2010 through 2016.
-Beginning with 2011, you will have to offer an equal percentage of coverage to all employees in order to qualify for the coverage.  Luckily, with the implementation of Parity in the Episcopal Diocese of Northern California, we will still qualify.

-Beginning in 2014, the tax credit will only be available to employers who purchase their coverage through the health insurance exchanges.  The Episcopal Church Medical Trust is looking into the possibility of participating in the exchanges in the future. 

 

 Resources:

- Three Simple Steps Chart provided by the IRS
- IRS Form 8941
- Instructions for IRS Form 8941
- Memo from the Medical Trust
- Gilbert and Associates:
           - website: www.gilbertcpa.com  Phone: 916/646.6464
             John Bircher john@gilbertcpa.com

Sources of information include the Episcopal Church Medical Trust and The Internal Revenue Service. 

Apportionment represents approximately 85% of the diocesan operating budget for 2012. Therefore, it is important that you are informed as to how your apportionment dollars are allocated and how they can work for your congregation.

A copy of the 2012 Diocesan Budget can be found here and I hope you will take time to review it with your vestry at your next regular meeting.

Did you know that the Episcopal Diocese of Northern California employs over 350 people? The Office of the Bishop (OOB) coordinates group benefits and wellness programs for these employees. We provide assistance to clergy in the management of their pensions and other benefits available to them through the Church Pension Group. Our staff support our congregations in complying with the California Labor Code and the fair employment guidelines promoted by The Episcopal Church. And we maintain a webpage devoted to supporting the human resource function in your church.

The OOB is a source of information and support in managing the numerous properties held by congregations throughout the Diocese. We can provide guidance related to utilization of buildings and the potential property tax and unrelated business income tax issues that can result.

The diocese maintains an Endowment and Memorial Trust Fund which is available to churches for investing and provides a source of low interest loans. This fund is administered by a Board of Trustees and the OOB staff.

Our Youth and Young Adult Ministries Coordinator, Monica Romano, is ready, able, and willing to visit with your congregation and assist you in developing vibrant youth and young adult programs and implement Safe Church practices. (See www.norcalepiscopal.org/yaya for resources, links and other information.) Our Director of Communications, Keri Lopez, is available to help you build, maintain & strengthen your congregation's communications. A comprehensive list of workshops, resources and services available can be found online at www.norcalepiscopal.org/communications.

Our Diocesan Chancellors have expertise in various areas of the law and can be called upon to help you avoid any number of legal issues or assist you with finding solutions to legal issues in progress.

I certainly hope you are aware of the many sources of grants available through the diocese:

The diocesan budget funds a number of committees with members providing assistance in the areas of Christian Formation, Total Ministry, Evangelism, Health Ministries, Commission on Gratitude, Church Response Team, Church Auditors, Intercultural Ministries, and Women’s Ministries.

And don’t forget the many conferences hosted by the Episcopal Diocese of Northern California. Among them are the Congregational Leadership Conference, Clergy Conference, Bishop’s Conference, and of course, Diocesan Convention.

The OOB staff and all the committees and commissions funded by the Diocesan Budget exist to support healthy congregations. Please talk about this with your vestry members and let us know how we can help.

In the Episcopal Diocese of Northern California, our safety program is called the Illness and Injury Prevention Program (IIPP). This safety program is mandated by the state of California. All businesses (churches and religious institutions are considered businesses by the state and federal government) must have a published safety program that they provide to every employee. A signed receipt of this policy must be kept in employee files. We recommend that you give a copy of this program to all volunteers regularly working in your location.

While this program is mandated by the state, we embrace it because its goal is to keep our employees (volunteers, and parishioners) safe. According to the Workplace Values of the Episcopal Church (General Convention Resolution A125), a safe workplace is one of the things that we promise to all who work for us.

Safety Officer:
Each location is required to designate a safety officer (person or priest in charge of the IIPP). This person is responsible for ensuring that the IIPP is followed at his/her site, for making sure that quarterly safety meetings are held, and for documenting any safety infractions. The safety officer is not required to be the person instructing your staff at the quarterly safety trainings, but is responsible for ensuring that they happen.

Quarterly Safety Trainings:
Once per quarter a safety training must be held for all employees. A log of the safety topic must be maintained and signed by all employees (and any volunteers). One example of an excellent safety meeting topic is the proper evacuation procedures for your building in the case of emergency (we recommend that you invite your entire congregation to this one).

You can also collaborate with nearby congregations and hold joint safety trainings. Ask your local fire department for instruction on how to use a fire extinguisher; have a doctor or nurse in the congregation describe the symptoms of heat stroke, heart attack or other serious sudden onset health problems; or bring in a trainer to teach First Aide.

Another alternative for your safety trainings is to use the same topics as the Office of the Bishop. After each of our safety trainings, we post and article for your use. This article has the topic of our safety meeting, and resources so that you can develop your training. Links to the last three safety trainings are posted below.

Resources:

Safety Officer Assignment Form
Injury & Illness Prevention Policy
Safety Training Log
Workplace Values In the Episcopal Church Poster (English) (Spanish)
Safety Training - Slips, Trips, and Falls
Safety Training - The First Aide Kit
Safety Training - Avoiding the Flu

for Episcopal Churches

 
Dear Treasurers, Wardens, and Administrators,

As part of Church Pension Fund's efforts to be wise stewards of our financial and natural resources, we are providing the 2012 Federal Reporting Requirements for Episcopal Churches online in a downloadable, searchable PDF file.

The PDF file has been posted on the Church Pension Group website, click here to download now.

Given the possibility that Congress will make further changes to the Tax Code during this current legislative season, we strongly recommend that you use the online version, which we will update on an ongoing basis to reflect any subsequent changes. (For example, both the current payroll tax “holiday” — which currently expires at the end of February 2012 — and the permitting of those over age 70½ to make a charitable donation in lieu of taking a required minimum distribution could be extended or could be allowed to lapse.)

If you prefer to have a printed copy, it will be available in a print-on-demand format starting in late February. To order a copy, click here. Please note that the printed version reflects the PDF as it is posted today, and will not be updated.

If you have any questions, please contact Client Engagement at (866) 802-6333.

 Sincerely,
The Church Pension Fund

The Church Pension Fund 445 Fifth Ave, New York, NY 10016
© 2012 The Church Pension Fund. All rights reserved.
For more information about the Church Pension Fund privacy policies, see www.cpg.org/privacy

Many factors can increase the risk of a slip, trip, or fall accident, including poor housekeeping, transition in floor surfaces, loose rugs, open drawers, inappropriate shoes, unsafe ladder use, spills, and inattentive walking. 

If you choose to hold a safety meeting on this subject, you can find training tools online such as this quick facts sheet from Washington DC, or this PowerPoint presentation from the state of Washington, or this guide from SAIF Corporation. 

Is your congregation smaller than it was 10 years ago, but your buildings are not? This problem is being faced by many churches in the Episcopal Diocese of Northern California, as well as all across the country. Smaller congregations are hard pressed to support buildings that are no longer fully utilized. Congregations are faced with reducing hours or even eliminating their priest in favor of supporting the buildings.

First, I want to tell you about the third annual Buildings for a New Tomorrow Conference, which will be held April 16 – 17, 2012 in Baltimore, MD. Several members of our diocese attended in 2011 and came back energized and with a new network of contacts in other churches and diocese who are trying to address the same issues. We are not alone!

The conference is presented by the Episcopal Church Building Fund (ECBF). If you think you may be interested in attending this conference, please go to the ECBF website at www.ecbf.org. If you would like to talk to me or one of the other attendees about our takeaways from this conference, please feel free to give me a call (916-442-6918 ext. 211).

If you would like to join a local discussion about this issue, we are holding a meeting at St. John’s Episcopal Church in Marysville on Friday, January 20, 2012 from 11:00 am – 1:00 pm. Lunch will be provided but you must RSVP by sending me an email to bobbi@norcalepiscopal.org.

The Rev. Bill Geisler, CPA, will be the main presenter at this meeting. Fr. Geisler retired from the Diocese of California as the CFO. Today he is a consultant for Church Pension Group and presents workshops all over the country on topics related to clergy and church tax issues.

Fr. Geisler is an advocate of employing our church buildings in their best and highest use, consistent with the mission of the Church, as a path to sustainability. He will discuss the experience of his congregation which uses their buildings to provide a retreat center. This congregation, receives net income (after operating costs) of $100,000 a year from this activity. He will discuss the mechanics of writing a business plan and how to avoid, or cope with the tax implications of revenue generation.

In addition, Tony Burnett, an Associate of the real estate company CBRE, will be available to answer your real estate questions. CBRE provides leasing and property management services to their clients,  and have a whole department dedicated to religious institutions. Tony has helped churches find tenants such as charter schools, other churches, and private nonprofit organizations.

Tony will be working with Church Support Team members to consult with individual congregations who would like to explore their options related to their buildings. I believe the possibilities are endless and I personally find this to be an exciting time for those of us with a passion for their mission and an entrepreneurial spirit.

All are welcome to this meeting. If your congregation has experienced success in utilizing your buildings, we would love to hear how you did it. If you want an open forum to explore ideas, we want your input. If you can’t make it this time but want to see more of this, please let me know.

Many of our buildings are both historic and beautiful. They have provided worship space, social space, and classrooms for many years. It is my hope that we can find ways for these buildings to continue to support the spirit and the mission of our Church in our communities for many years to come.

Expense Reimbursement/Check Request Form

Should you have any questions regarding the year-end financial deadline, please contact bookkeeper, Caroline DePaola at caroline@norcalepiscopal.org or 916-442-6918 ext. 225.  Thank you. 

For the Employee:

The Office of the Bishop began offering Unemployment and State Short-Term Disability Insurance for its lay employees on January 1, 2012. 

While churches are exempt from the mandate to offer Unemployment and State Short-term Disability insurance coverages, this does not mean that our employees are safe from unemployment and disabling injury. Are you curious about Unemployment Insurance and State Short-Term Disability Insurance (SDI)?

As Church employers, the churches and institutions of the Episcopal Diocese of Northern California are not required to provide these benefits, and many of our organizations have chosen not to. Some of these churches and organizations may not have realized that they have the choice to opt into these programs. If you are an employee interested in Unemployment and State SDI, consider talking to your employer.

Short-Term Disability Insurance

If you are currently working 20 or more hours per week, you should already be enrolled in the Short-Term and Long-Term Disability coverage required by our policy through the Episcopal Church Medical Trust. The benefit is 70% of gross salary up to $1,000/week. The elimination period is 30 days, meaning that you qualify to receive benefits after 30 days of missed work. Short-Term Disability is anything under one year off of work.

For State SDI, the benefit is 55 percent of gross salary up to $987/week. The employee pays for this insurance through payroll withholding. The rate is 1.2 percent of gross salary up to $1,119.79/year. The elimination period is seven days.

If you are an employee working under 20 hours, you would qualify for State SDI, but not for the Church Medical Trust (CMT) SDI. If you are an employee working 20 or more hours, you would qualify for both.  The two plans would be coordinated so you could receive 55 percent of gross salary for the first 23 days of a disability then you would receive 70 percent of gross salary up to the maximums noted in plans.  You would not get double coverage during a period of disability but you would at least get some coverage after day seven.

Unemployment Insurance

Unlike State SDI, Unemployment Insurance is an employer paid benefit.

Unemployment Insurance provides replacement income in the event of certain circumstances causing the loss of work (other than disability). The maximum benefit is $450/week. The duration of benefits is changeable.

For both UI and SDI you are eligible to receive a benefit from your insurance in the seventh month after your coverage begins.

For more information, visit www.edd.ca.gov

For the Employer:

The first thing you need to know is that you cannot have Unemployment Insurance without SDI, or vice-versa. The two are linked.

The second thing that you need to know is that for all Lay employees, if you decide to offer these insurances, they are then mandatory. Clergy are allowed a one-time vote with majority rule, which will either result in the clergy having UI and SDI or not having UI and SDI from that time forward.

The third thing you need to know is, the employer pays for Unemployment Insurance which costs up to $238/employee/year for this coverage during the first three years. After that the premium would be adjusted up or down depending on experience. The employee pays for SDI; the rate is 1.2 percent of gross salary up to $1,119.79/year (as of 8/20/2011).

The fourth thing you need to know is that the enrollment process takes two weeks from the time that the Employment Development Department receives your paperwork. They will require a New Registration Form for Nonprofit Employers (DE 1NP), an Application for Unemployment and Disability Insurance elective Coverage Form (DE 1378), a Selection of Financing Method by a Nonprofit Organization Form (DE 1SNP), and a copy of your 501C3 letter from the IRS.  These forms can be found on the EDD website. 

For information on this process, contact the Disability Elective office of the Employment Development Department of the State of California at 916-654-6288. We also recommend that you contact Canon Bobbi Yeo as you begin this process. 

Resources:
- The Disability Elective office of the Employment Development Department of the State of California at 916-654-6288
- The EDD website
- Unemployment/SDI Clergy Option Form (feel free to adapt this form written for the Office of the Bishop to your location), click here to download

by David Bundesen, President of the Episcopal Foundation of Northern California

At the end of 2011, the extension for IRA Rollovers to qualified charities will run out. What this means is that, right now, under the Pension Protection Act of 2006 (PPA), a taxpayer age 70½ or older can choose to transfer funds directly from an IRA to a qualified charitable organization (like your church). This also means that if a parishioner wishes to prepay their 2012 pledge before December 31, 2011, using a direct IRA Rollover to your church, they will not be taxed on that money. If they make a contribution from their IRA in 2012, that contribution will be taxed like a normal IRA distribution. Making a pledge payment this year with an IRA Rollover can result in significant tax savings to your parishioners.  It can also result in an early cash infusion for your Vestry that might assist with your budget process.

A ready-to-publish article on this topic is on the new Foundation blog now, and we encourage you to either use or link to. The article may be found at Pre-Pay My Pledge? Why?

I would like to stress that time is of the essence with this information. The sooner you can send this to your parishioners the better, for this tax savings is scheduled to run out in 2011 and the prospect for another extension looks very dim with the budget crises in Washington DC. Please feel free to contact Foundation Board President David Bundesen, dbundesen@norcalepiscopalfoundation.org, should you have any questions.

These posters can be purchased from HR to GO (a Human Resources consulting firm that the diocese and the Office of the Bishop have worked with in the past) in English and Spanish for $21 each by calling 1-877-747-8646.  If you outsource your payroll processing, your payroll company can probably provide you with a single complete poster also.  Make sure you ask for the 2012 version of this poster, as several laws and regulations have changed.

You do not have to pay for your employment posters, however; you can download each required poster for free from the state and federal labor department webpages: California Department of Industrial Relations, and United States Department of Labor.  For the federal posters, we recommend that you start with the Poster Advisor.  The Poster Advisor will ask a series of questions, and then generate a list of the posters you should have up.  For the California posters, there is a chart detailing which employers must post what - click here to view this chart.

Regardless of how you choose to obtain your new posters, you must post a current poster on your wall where all employees have easy access to it.  This poster must list your pay-dates for the entire year, and your holiday schedule.  You must also list emergency numbers. 

We recommend that you post the Workplace Values in the Episcopal Church poster with your employment posters.  Another great resource which we recommend you place in this location is this new poster developed by the Episcopal Church Medical Trust: "100 Reasons to Call the EAP."   

 
Resources:
-Workplace Values Poster (in English)  (in Spanish)
-Poster Advisor (Federal Posters)
-Federal Posters
-United States Department of Labor
-California required poster chart for employers
-California Department of Industrial Relations
- HR to GO
- 100 Reasons to Call the EAP Poster

The IRS limits the value of employer-provided group term life insurance to $50,000 as a tax-free benefit.   Imputed income is the value of excess employer paid life insurance over the $50,000 limit.  The Church Pension Fund provides active clergy $100,000 and the diocese provides an additional $20,000 of life insurance, in most cases. The $70,000 additional life insurance creates a taxable value based on the clergy's age and number of months the insurance was provided.

The Office of the Bishop expects to receive imputed income data maintained by the Church Pension Fund for individual clergy in early December.  We will process letters to clergy and treasurers with specific imputed income amounts to add to the form W2.

- Be current with their apportionment, including submission of the Year-end Reconciliation and final payment for 2011, due January 31, 2012. 

- Be current on any loans from the diocese or the Endowment and Memorial Trust.

- The 2010 audit for their church must be on file with the diocese no later than January 31, 2012.

- Be current on all other financial obligations to the diocese. 

- All payments must be received no later than January 31, 2012.

- Send a letter requesting the 2 percent rebate signed by the Senior Warden, Clergy in Charge, and the Treasurer.  

- The letter must be received no later than Thursday, March 1, 2012.  Letters can be sent via fax to 916-442-6927 or US mail to The Episcopal Diocese of Northern California, Attn: Apportionment Rebate, 350 University Ave. Ste. 280, Sacramento, CA 95825. 

Apportionment:

In 2012 we will continue using the new apportionment formula approved by the 2009 Diocesan Convention. The calculation applies a tiered rate system to assessable income as follows:

Up to $60,000 of assessable income is assessed at 10%
$60,001 - $120,000 of assessable income at 16%
$120,001 and up of assessable income at 22%
note that there has been no change in how apportionment is assessed since 2010

Exclusions from assessable income are the same as they have always been: outreach and fundraising expenditures, capital lease expenditures, current revenues diverted to subsidiary investment funds, etc. Please click here for our webpage which contains the 2012 TMR Form with instructions.

Also on our webpage, is a spreadsheet containing the monthly medical and dental insurance premiums for 2012. Every diocesan employer must pay at least 80 percent of the lowest cost premiums for health and dental insurance for the employee. Employers may offer a richer benefit than this and many do. Other group insurance premiums are as follows:

Life Insurance:

Disability Insurance:

note that clergy receive both short and long-term disability insurance through CPG

Worker's Compensation:

The manual premium is modified by various factors, such as our experience modification and discounts we receive as a group and the class of the workers you employ. To estimate your actual standard premium, use the following calculation:
(Gross salary/$100) x (Manual Rate) x 73.1%

Your annual premium is adjusted by .731 for claims experience and for a discount received from Church Insurance Agency. If your annual gross salaries for your priest and an office assistant are $100,000, your annual premium for workers’ compensation would be calculated as follows:

$100,000/$100 X $0.91 X .731 = $665.21

Please don’t hesitate to call or send me an e-mail if you have any questions about this.

Resources:

-  Canon Bobbi Yeo - 916-442-6918 ext. 211 or bobbi@norcalepiscopal.org
-  Insurance page of the Diocesan webpage - www.norcalepiscopal.org/insurance1
-  Church Accounting page of the Diocesan webpage - www.norcalepiscopal.org/churchaccounting
-  2012 Treasurer's Monthly Report Form - Click here to download
-  2012 Remittance Form (should be mailed with all checks sent to the Office of the Bishop) - Click here to download
-  2012 Insurance Rate Sheet - Click here to download

It's time once again for the vestry or mission committee to designate a housing allowance for their priest. If a change is to be made, this designation must be enacted on or before 12/31/11. The housing allowance will be effective from the date it is declared, and will remain in effect for the remainder of the year.


You will find a worksheet to assist you in calculating housing allowance and a format for the housing resolution on our website by clicking here. Please contact the Office of the Bishop with questions.

Resources:
Human Resources Page
Housing Allowance Form (With House)
Housing Allowance Form (No House)

"Each year workers in healthcare settings attend to, on average, more than 200,000 patients hospitalized for influenza-related complications. These workers also treat patients seeking medical care in clinics, pediatricians’ offices, and other ambulatory healthcare settings" ("Influenza", Washington State Department of Industries). 

As a staff, we watched this video  in which Dr. William Schaffner, President of the National Foundation for Infectious Diseases (NFID), discusses ways to get your Flu Vaccine.  He also shares that you can use www.flu.gov to use the Flu Finder to find out where to get your flu vaccine.

We also read an article from About Health.com, "Prevent or Treat Cold and Flu" by  Dr. Mona Khanna.  This article highlighted the difference between a cold and the flu, and shared information about antiviral medication now available to treat the flu.  It also talked about important strategies to prevent sharing a cold or flu with co-workers or family members.  Additionally, the article warned against treating either a cold or the flu with antibiotics, since both are caused by a virus. 

Bobbi Yeo is the Canon for Administration and Finance.  She is a CPA who has worked with non-profits for over 20 years.  Her job is to manage the internal business affairs of the Diocese and to provide support to congregations. She will listen to what you have to say about where you are now and what you want to do in the future. She will provide information regarding best practices and the regulatory environment we operate in. The goal is to help you to make more informed decisions.  While she has oversight of the entire Administration and Finance department, you should specifically contact Bobbi directly (bobbi@norcalepiscopal.org or 916-442-6918 ext. 211) about:

- making a loan application
- employment law questions
- property and sales tax questions
- business services questions
- various nonprofit regulations such as the “Nonprofit Integrity Act”
- rules for handling restricted reserves
- Canons of the General Convention and the Diocese of Northern California where they relate to administrative and financial issues

Canon Bobbi also wants to work with you to develop strategies for sustainability:

- Have your buildings become a burden rather than a blessing? As a member of the Episcopal Church Building Fund one of Bobbi’s passions is putting underutilized space to work for the congregation and surrounding community.
- Are you confident that you are utilizing the best practices for configuring administrative and financial services? You might even be able to do it better for less money. I’ll help you evaluate your current needs and provide recommendations.
- Fundraising! There are both local and national resources available to your congregation. Talk to me about your fundraising needs and I’ll help you get connected.

Thea Mangels is the Office Manager & News Editor for the Office of the Bishop, and the second staff member in the Admin and Finance Department.  She works as the benefits administrator, and assists Canon Bobbi with human resources.  She also works directly with the accounting department.  She facilitates communications for the Administration and Finance department.    You should contact Thea (thea@norcalepiscopal.org or 916-442-6918 ext. 215) about:

- Benefits Questions (including communicating intention to start, terminate, or change benefits)
- Convention Registration questions (around the time of Diocesan Convention)
- Illness and Injury Prevention (Safety Program) Questions
- Parochial Reports
- The Admin&Finance News
- The Admin&Finance section of the Webpage

Cassie Bangerter is the Vice President of Utonomy and has been our Controller for the past 4 years.  She started in public accounting, and her experience extends to various industries, with a specialty in financial services and non-profit accounting.  Because of the high level of Cassie's duties, she is very part-time and her schedule is flexible.  You should contact Cassie (cassie@norcalepiscopal.org or 916-442-6918 ext. 220) about:

- Financial management questions related to the diocese at a corporate level
- Anything that someone else on the Admin & Finance team refers you to her about

 Stephanie Moulton is an accountant for Utonomy  She has an accounting degree and has been working in the accounting department here in the Office of the Bishop since April of 2008.  She is working to obtain her CPA license.   She is generally in the office Mondays, Thursdays, and Fridays.  You should contact Stephanie (stephanie@norcalepiscopal.org or 916-442-6918 ext. 218) about:

 -Endowment questions
- Loans
- Program budget questions
- General accounting questions

Caroline DePaola is a Bookkeeper, who also works for Utonomy.  She has just completed her accounting degree from Sacramento State University, and recently began working with the Office of the Bishop accounting team.  She is generally in the office Wednesdays and Thursdays.  You should contact Caroline (caroline@norcalepiscopal.org or 916-442-6918 ext. 225) about:

 -Accounts payable
- Accounts receivable
- TMR questions

Tamoya Brewster is the Receptionist at the Office of the Bishop. She currently striving for a Bachelor’s of Science degree in Finance at California State University, Sacramento, and recently began working with the Office of the Bishop admin & finance team. She is in the office Monday through Friday 9 - 4. You should contact Tamoya (tamoya@norcalepiscopal.org or 916-442-6918 ext. 229) about:

- Status of TMR receipts
- Diocesan calendar scheduling
- Teleconferences

Utonomy
Utonomy specializes in small business accounting.  Their staff is integrated into the team or staff of each organization they work for.  They work in many different non-profit environments, but because they are permanent employees, they quickly learn to understand the specific quirks of individual organizations.  They offer financial expertise from basic bookkeeping all the way up to the CFO level.  Ordinarily, it is hard to interest high level accountants in employment of only a few hours a week.  Because these employees are actually employed by Utonomy, small businesses (like our churches) can hire an experienced bookkeeper or accountant for their true level of need. 

In addition to our diocese, the Episcopal Diocese of San Joaquin, St. John's School, and St. Michael's Episcopal Day School contract with Utonomy.  For information about how your church might benefit from a relationship with Utonomy, call530-878-3988 or e-mail michael@utonomy.com.  You can also visit their website: www.utonomy.com. 

Group Life Insurance and Disability Premium Rates

Effective January 1, 2012

Group Life and AD&D Premium rates, effective January 1, 2012

Church Life Insurance Corporation (“Church Life”) is pleased to announce that there will be no change to the group life insurance and AD&D premium rates for 2012

The supplemental group life insurance premium rates will also stay the same.

Disability Premium rates, effective January 1, 2012

Short-term Disability for Lay Employees
There will be no change to the short-term disability plan premium for lay employees.

Salary Ranges	Monthly Premium
Less than $25,000	$ 8.00
$25,000 to $44,999	$17.50
$45,000 and above	$32.00

 Employer-provided Long-Term Disability Plan

There will be no change to the Employer-provided Long Term Disability benefit premium for 2012. Premium rates will continue to be $.67 per $100 of monthly covered payroll.

-The maximum salary cap for the 50% clergy coverage is $120,000 of covered payroll
($60,000 is 50% of $120,000, which is the maximum disability benefit of $5,000/mo

-The maximum salary cap for the 66 2/3% lay plan is $90,000 of covered payroll rounded
up to nearest $1,000 ($60,000 is 66 2l3% of $90,000 which is the maximum disability
benefit of $5,000/mo)

Voluntary Long-Term Disability Plan

There will be no change to the Voluntary Long Term Disability plan premium for 2012. The monthly premium rates are noted below.

Salary Ranges                  Lay Employees                      Clergy
Less than $25,000           $12          $18                      $14      $23
$25,000 to $44,999        $22          $37                      $26      $44
$45,000 and above         $43          $72                      $50       $86

Life insurance is issued by Church Life Insurance Corporation, 445 Fifth Avenue, New York, NY 10016. Products and features may not be available in all states. For complete details of coverage, please consult the actual insurance contract.

Short and Long-Term Disability Insurance is underwritten by First Unum Life Insurance Company, New York, NY as Policy Numbers 461621, 560475 and 465268. All benefits are approved and paid through First Unum.

Policy Form Series
CLIC/PF96A
CLIC/GIC96A
CLIC/DISRIDER

One way to reduce future costs of health care is by utilizing the Employee Assistance Program (EAP). This program comes with our medical insurance through the Episcopal Church Medical Trust, and for the first time this year, is available to those who opt out of medical insurance for the low cost of $5 a month.

Behavioral Health Benefit:
One significant way that the EAP can help lower the future cost of health insurance in the Diocese is if employees take advantage of the behavioral health benefit.  The EAP will provide 10 completely free (no copay) counseling sessions for each issue you would like to discuss. CIGNA provides both EAP and behavioral health benefits, and will refer you only to in-network doctors and counselors. This can result in a savings if you need more than 10 sessions for a particular issue.  If, for any reason, you are not satisfied with your counselor relationship, CIGNA will provide a different referral. 

This behavioral health benefit is tied to diocesan medical insurance. If you do not have medical insurance through the Episcopal Diocese of Northern California, the EAP will still allow you access to emergency counseling.

Professional Services:

- Legal consultations
- Financial services and referrals
- Tips for balancing work and family
- Resources for more help in your community

Online Resources:
EAP provides online resources with access to services for healthy living, adoption, child care, parenting, senior care, pet care, travel, finances, legal issues, relocation information, teambuilding, career transition, savings center and find interactive tools.  www.cignabehavioralhealth.com

Available 24 hours a day, seven days a week, the EAP has trained providers available over the phone, as well as the ability to direct you to someone local. Anyone living in the household of a diocesan employee can call in for services. 

For more information click here.

To access EAP services, call (866) 395-7794, 24 hours a day, 7 days a week, or sign in to Cigna Behavioral Health www.cignabehavioralhealth.com (password: episcopal). 

The Episcopal Church Medical Trust developed this poster "100 Reasons to Call the EAP."  

If you’ve ever worried about being selected for a tax audit, you will be happy to know that the IRS examined only 1% of all 2008 individual income tax returns during 2009. Most examinations were conducted via correspondence. Very few individual income tax returns filed resulted in a face-to-face interview.

A number of factors could increase your chance of being audited. For instance, your return may be flagged if you report unusually large itemized deductions in any given year, or if individual deductions exceed ranges established by the IRS. Moving or education expenses may also be a red flag.

Risk of an IRS audit increases substantially for those reporting zero adjusted gross income and is somewhat higher for those reporting more than $200,000 AGI.

Another high risk group is independent contractors filing only one or two 1099s. True independent contractors would be expected to have more than one or two clients or customers. Therefore, this group may be audited in order to determine if they should have been classed as employees.  If that determination is made, it could lead back to you as the employer. This is something to bear in mind as you determine whether or not to pay the groundskeeper as an independent contractor or an employee.

Information gathered from: “2011 Church & Clergy Tax Guide” by Richard R. Hammar, J.D., LL.M., CPA

Open Enrollment for Active Employees and Early Retirees for 2012 in the Episcopal Diocese of Northern California is October 24 through November 13, 2011. 

CIGNA Members:
All employees currently enrolled in the CIGNA HMO will need to make a new plan selection.  The CIGNA HMO is not one of our 5 medical plan options this year (see 2012 Insurance for more information).  If you do not make a new plan selection, you will no longer have medical insurance through our group plan. 

Eligibility:
All salaried (exempt) employees are eligible for group health and dental insurance regardless of the number of hours worked; all hourly employees working 20 hours or more per week are eligible for group health and dental insurance; all lay employees working 20 hours or more per week will receive group short-term disability. (Clergy already receive this benefit through the Church Pension Group.)  All lay employees* working 20 hours or more per week will receive group life insurance of $50,000; all clergy working 20 hours or more per week will receive group life insurance of $20,000. (Clergy already receive $100,000 through CPG). All lay employees working 20 hours/week or more will receive group long-term disability.   Please note that clergy already receive long-term disability benefits through CPG.  Life and disability insurance premiums must be 100% employer paid.

Parity:
The Board and Council decided at their joint meeting in June that the we would implement parity in the Episcopal Diocese of Northern California as of January 1, 2011.  What this means at a congregational level is that there must be parity between clergy and lay employees as it relates to the amount of premium paid by the employer for health and dental insurance.  For more information on parity, please read this article by Canon Bobbi Yeo on June 30th. 

Church Obligation:
Churches/institutions covered under our group insurance must provide Open Enrollment materials to all qualifying employees before the period of Open Enrollment.  It is the responsibility of the Rector/Vicar/Priest in Charge/Director or Senior Warden to ensure that all eligible employees at his/her organization have received these materials and are aware of the Open Enrollment period. 

Deadlines:
-The period of Open Enrollment for our diocese is October 24th through November 13th.
-On October 21st, The Episcopal Church Medical Trust (CMT) will mail packets to those members who are currently enrolled, and other qualifying employees should obtain an enrollment packet from their employers.  The CMT packet will include the web address for online enrollment and each employee's user name and password.  It will also include a paper enrollment form.
-If an employee chooses to waive his/her right to medical and/or dental insurance, he/she must complete the paper enrollment form included in the packet from the Office of the Bishop (not the one from the CMT packet) and return it to The Episcopal Diocese of Northern California, Attn: Thea Mangels, Sacramento, 350 University Ave. Suite 280, CA 95825 or fax 916-442-6927 no later than 4 PM on November 13th. 

*Lay employees over the age of 65 will received a lower amount of life insurance as determined by the Church Pension Group.

Resources:
- 2012 Insurance Rates
- Insurance Page of the Diocesan Webpage
- Implementing Parity: The Denominational Health Plan to be fully implemented in the Diocese of Northern California by January 1, 2012 by Canon Bobbi Yeo from June 30th
- Employee Assistance Program
- 2012 Medical Insurance Article by Canon Bobbi Yeo from August 5th
- Open Enrollment Page of the Diocesan Webpage

(Note, Early Retirees and Active employees should participate in Active Employee Open Enrollment which closes November 13th.)

There are two types of restrictions which may be placed on certain funds held in reserve by churches. One type is “vestry” restricted. This happens when the vestry votes to designate that funds be held for a specific purpose. The vestry may subsequently take action to eliminate the restriction or redirect these funds to another use.

The other type of restriction is a “donor” designated restriction. This most commonly happens when a donor has designated that his or her gift be used for a specific purpose such as the purchase of an organ. Alternatively, the donor may have designated that the gift be retained permanently, in the form of an endowment, and that only the earnings may be used. These earnings may or may not be restricted as to their use.

In the case of a fundraising campaign, materials used to solicit funds may identify a specific purpose causing the resulting fund to be restricted in use.

In tight economic times, there may be a temptation to utilize restricted funds to pay the costs of day-to-day operations. Even when the intent is to pay the funds back this is a risky strategy, as those in a decision-making capacity could ultimately be held responsible for paying these funds back to the church.

To ensure this doesn’t happen to you, make it a point to become familiar with the nature of funds held in reserve by your church. Each month, a balance sheet should be presented to the vestry outlining net assets labeled as unrestricted, temporarily restricted, or permanently restricted. In addition, you will want to see a supporting schedule showing the names and balances of funds contained in each category.

Questions regarding the nature of restrictions can be resolved by reviewing a copy of the trust document in the case of a donor restriction. In the case of funds resulting out of a fundraising campaign you will want to review the solicitation materials. If a fund is vestry restricted, you can make a motion at the regular vestry meeting to remove the restriction before authorizing it to be used for other purposes.

The key is to become informed regarding financial transactions occurring each month and to acquire a basic understanding of the regulatory environment. One user-friendly source of information is the Guide for Charities which can be found here. While the Attorney General’s role is very restricted in relation to churches, the principles of managing a charitable nonprofit organization are the same. Specific reference to churches can be found beginning on page 32 of this guide.

If you have any concerns or questions please feel free to contact Canon Bobbi Yeo at (916) 442-6918 x211 or at bobbi@norcalepiscopal.org.

The average increase in our plans is between 5.4 and 8%.  The Kaiser plans are higher (the 8%), because we were not able to negotiate any of the plan designs discussed in our August 5 article.

One other significant change in this year's plan array is the addition of the Employee Assistance Program (EAP) as a stand-alone plan.  All Episcopal Church Medical Trust medical plans come with the EAP, a program offered by CIGNA.  Because this program is so wonderful, administrators at last year's Episcopal Church Medical Trust conference asked if it would be possible to offer it to employees who opted out of our group medical coverage.  This year, the EAP will be available to those employees who opt out of medical insurance for the low cost of $5 per household.  

Open Enrollment will be October 24 - November 13.  Watch for future articles, mailings, and e-mails with information about Open Enrollment and plan details.  As we receive information relevant to the churches and their employees we will be sharing it as broadly as possible.  We do not have detailed information about the plans yet; but we know that it is important for you to have the 2012 health insurance rates as soon as possible for budgeting purposes.  If you didn't get a chance to read the article on the implementation of Parity, make sure you take a look at it when planning your budget, as parity begins January 1, 2012. 

Resources:

- 2012 Insurance Rates
- Implementing Parity: The Denominational Health Plan to be fully implemented in the Diocese of Northern California by January 1, 2012 by Canon Bobbi Yeo from June 30th
- Employee Assistance Program
- 2012 Medical Insurance Article by Canon Bobbi Yeo from August 5th
- Open Enrollment by Thea Mangels

The Apportionment and Audit Committees developed a new Chart of Accounts for use with QuickBooks. This new Chart of Accounts ties directly into the TMR and the Parochial Report for easier accounting. The Auditors are offering training for church treasurers wanting to convert to the new Chart of Accounts. They are also offering money for treasurers who need training in how to use (or better use) QuickBooks, and for churches who wish to purchase QuickBooks as their accounting software. For more information on these exciting developments, please contact Bobbi Yeo, Canon for Administration and Finance at bobbi@norcalepiscopal.org or 916-442-6918 ext. 211.

If you are looking for funding, please find a QuickBooks training near your location and contact Canon Bobbi with information about that class with information on cost and content before you register.  

Please note, this funding is available for trainings that happen before 12/31/2011; after the end of the year there will not be additional funding.