In Insurance and Risk Management Rick Osorio, Director of Insurance

1. In Insurance and Risk ManagementRick Osorio, Director of Insurance

2. Workers Compensation • Call in claims immediately by supervisor, or by fax. • Don’t wait for CRM approval for immediate medical care. • Most of our accidents are from trips and falls. Last year they increased from 32% of our claims to 38%. • We need to focus more on safety of equipment usage and inspections of premises. • We must also watch out for the disgruntled employee who may create a retribution claim against their employer. • Volunteers are not employees and have their own medical coverage and report form.

3. Property Claims, FY14 • Lightning was the cause of 20% of claims. • Other causes were 19% of claims: • Roofs • Construction defects • Plumbing • Please check your surge suppression systems annually on your: • HVAC units • Phone systems • Security and Fire alarms • Cable provider Use your self inspection form listed on Insurance Office Website.

4. Prevent Auto Claims • Volunteers, employees and bus drivers should have • driving records checked at least every 2 years. (not • included in standard fingerprint screening) • Drivers who regularly transport minors and vulnerable adults must be SEP compliant. This includes Eucharistic ministers who visit home-bound. • If volunteers are using their personal vehicles for parish/school business, drivers should have valid insurance and drivers license. • Drivers should be physically capable of driving and providing passenger assistance (i.e. bus and van drivers). • Drivers should be at least 21 years of age. • Do not rent 10 – 15 passenger vans (personally or by entity). If renting a vehicle, always purchase the agency insurance coverage (Liability and collision) since our auto coverage does not insure rentals on a primary basis. • Take the CMG Online Defensive Driving Course (Play video if time allows)

5. Volunteer • Risk Management • Volunteers are covered under our Liability Coverage if they cause an accident, either in their car, or in the performance of their parish/school ministry. • Recent incidents indicated that not all volunteers working with minors and vulnerable adults were screened and SEP compliant. Please confirm both. • Volunteers must be capable of performing the ministry they have been assigned to do. • Volunteers have medical coverage (supplementary) if injured during their ministry activity.

6. Groups and Ministries • on Campus • Groups that are separately organized from • your entity need to provide proof of liability • insurance. St. Vincent De Paul, Knights of Columbus, and FAST • are not affiliated with parishes, and are not insured by our • Catholic Mutual liability policy. • Special Event Coverage is available ($110/event) if they don’t have liability coverage. • License agreements must also be signed. They define the responsibilities and legal duties of each party. • If events include vulnerable adults and minors, group leaders should provide proof of Level 2 Screening and be SEP certified. • Collect certificates of insurance annually from all groups.

7. Thank you for your time and dedication! We can be contacted at the Pastoral Center : Rick Osorio, Director of Insurance (727) 344-1611, ext. 5393 E-mail: rjo@dosp.org Valerie Burns, Insurance Programs Assistant (727) 344-1611, ext. 5396 E-mail: vcb@dosp.org

8. Hot Topics In Accounting and FinancePhil Signore, Exec. Dir., Finance

9. School Finance Issues • Do you publish a second-child rate or third-child rate that is less than the Step Up reimbursement rate? • Do you have a Tuition Assistance Committee that approves recommended grants? • Is all tuition entered into FACTS or SMART or other billing system? • Are you allowing staff to pay <90% of published tuition? • Discount >10% • Writing off tuition as uncollectible • Are expense reimbursements for the principal approved by the pastor or superintendent?

10. Sometimes, we have to venture into unknown places in order to comply with policy...

12. Auxiliary Bank Accounts • Were all excess funds (>$10,000) transferred to the entity’s operating account at year end?

13. Sometimes, we do things we shouldn’t do...

14. Year-end financial statements The Diocese of St Petersburg Parish Financial Statement For the Year Ended __________________ Parish of (Parish) (City) Date_________________ Signed______________________ (Pastor)

15. Sometimes, THINGS APPEAR VERY STRANGE TO US...

17. CSREA Issues with CSREA accounts: UPMIFA Declared distributions not taken Donor intent

18. CSREA and UPMIFA Uniform Prudent Mangement Of Institutional Funds Act: Intended to respect the intent of donors Recognizes that endowments are intended to last in perpetuity Holds trustees personally accountable for management of funds according to the intent of the donor

19. CSREA and UPMIFA “Terms in a gift instrument designating a gift as an endowment, or a direction or authorization in the gift instrument to use only “income”, “interest”, “dividends”, or “rents, issues, or profits”, or to “preserve the principal intact”, or words of similar import: Create an endowment fund of permanent duration unless other language in the gift instrument limits the duration or purpose of the fund.”

20. CSREA and UPMIFA UPMIFA requires organizations to have: Standards of conduct An Investment Policy A Spending Policy

21. CSREA and UPMIFA Spending Policy: Paragraph (4) APPROPRIATION FOR EXPENDITURE OR ACCUMULATION OF ENDOWMENT FUND; RULES OF CONSTRUCTION “An institution may appropriate for expenditure or accumulate so much of an endowment fund as the institution determines is prudent for the uses, benefits, purposes, and duration for which the endowment fund is established.”

22. CSREA and UPMIFA Spending Policy: Paragraph (4) (a) “…the institution… shall consider: The duration and preservation of the endowment fund. The purposes of the institution and the endowment fund. General economic conditions. The possible effect of inflation or deflation. The expected total return from income and the appreciation of investments. Other resources of the institution. The investment policy of the institution.

23. CSREA and UPMIFA “Terms in a gift instrument designating a gift as an endowment, or a direction or authorization in the gift instrument to use only “income”, “interest”, “dividends”, or “rents, issues, or profits”, or to “preserve the principal intact”, or words of similar import: Create an endowment fund of permanent duration unless other language in the gift instrument limits the duration or purpose of the fund. Do not otherwise limit the authority to appropriate for expenditure or accumulate under paragraph (a)

24. CSREA and UPMIFA Interpretation: Over the life of an endowment fund, its value must grow in a way that maintains the purchasing value of the endowment fund in order to sustain its purpose indefinitely.

25. CSREA and UPMIFA Interpretation: It is no longer considered appropriate, nor is it legal to spend all the earnings of an endowment fund.

26. We are all called to Be GOOD STEWARDS OF CHURCH RESOURCES...

27. If you see something, • Say something.

28. Sarbanes-Oxley • Increased expectations of transparency and accountability • Bishop’s canonical responsibility for oversight of church finances (stable patrimony)

29. Parish soft connect now “ledger and payables” (not the “desktop version “ for which support will be discontinued 7/1/15). • Parishes not currently using connect now ledger and payables will have their first year’s fees (licenses, data conversion, & training) will be paid for by The insurance and benefits trust. • All other parishes will be reimbursed for one year’s license fees.

30. Diocesan support (training, implementation support, and ongoing helpdesk) for connect now ledger and payables is recognized as a necessity. • Time frame is probably: • training in November/december 2014 • implementation January – June 2015 • free offer ends 8/31/15 (when y/e f/s are due. • Stay tuned… There is much to be done.

31. Some of us are called to LEAD THE WAY SO OTHERS CAN FOLLOW...

33. If a bookkeeper or business manager is interested in participating in a project to refine the standard chart of accounts, please email me at pps@dosp.org

34. Would Anyone like some really interesting work?

36. The Diocese of St. Petersburg has an immediate opening for an Accounting System Conversion Coordinator in the Finance Office of the Pastoral Center.  This is a temporary part-time position without benefits. • General Description:Serves in a project manager role for a Parish that is implementing Parish Soft Connect Now, by planning and scheduling their system conversion.  Provides training and direction to users of the software system.  Must have prior implementation experience with Parish Soft Connect Now software.  Strong preference for current parish bookkeeper looking for supplemental work.  Must have your Pastor’s approval to take on these extra duties for a temporary period. • If a bookkeeper or business manager is interested in this position, please email me at pps@dosp.org

37. Manager of Parish Accounting and Reporting. • General DescriptionThis is a full time, exempt position responsible for leading the effective financial administration, accounting and financial reporting of the parishes.  Serves as a consultant to parishes and parochial schools. Administers diocesan policy involving Agreed Upon Procedure reviews,  Administers diocesan policy with respect to required financial reporting from parishes and parochial schools of the diocese.  Monitors compliance with accounting and financial reporting policies of the DOSP Financial Guidelines.  Coordinates the calculation of annual parish assessments.  Occasionally operates as an internal auditor. • Qualities and SkillsThis position requires strong task and people skills and the ability to work independently with motivation.  The position requires a good knowledge of nonprofit accounting principles, a Bachelor’s Degree in Accounting, and at least ten years of accounting experience including preparation of financial statements.  A CPA is preferred. • If you or someone you know is interested in this position, please email me at pps@dosp.org

38. Warning…

39. Not for the faint-of-heart These are “worker” positions, not “consultant” positions.

40. Phil Signore pps@dosp.org