BP 11122023 129pm - Flipbook - Page 29
Advances for Business Expenses: Advances to Leadership, employees or volunteers for
business trips, start-up cash for events, such as concessions, festivals, dinners, and fundraiser
cash bank, etc., should be established on general ledger as accounts receivable in individual’s
name. The purpose and approval of the advance should be documented on an expense report,
check request, or other appropriate document. The receivable should be eliminated upon return
of funds and/or proper documentation. The returned funds should be counted under dual control,
recorded on an income remittance form that is signed by these two individuals, placed in a preassigned tamper evident bag, processed through the count, and deposited in the bank account.
Travel Expenses: Payments to Leadership, employees, or volunteers for business use of
personal vehicles should be properly documented, as required by the IRS and the Archdiocese’s
remuneration of priest policy. Priests have a choice of claiming actual (not estimated) business
miles at the approved mileage rate or 80% of actual auto expenses. If actual expenses are
claimed, priest should retain original receipts for gas, minor maintenance, insurance, taxes, etc.,
and attach the receipts to expense report when claiming reimbursement. If business mileage is
claimed, priest, employee or volunteer should maintain proper documentation, which consists of
a log or calendar indicating date, beginning and ending odometer readings or total business miles
traveled, and purpose of each business trip, and attach documentation to expense report
supporting total mileage claimed. The expense report and documentation should be submitted to
the individual’s supervisor for approval. Reimbursements for mileage should be paid via
accounts payable and are not reportable to the IRS if the parish requires/obtains proper
documentation and pays the IRS-established business mileage rate. Reimbursement of 80% of
actual auto expenses is payable via accounts payable and included on the priest’s1099 since it is
taxable income. If a priest decides to change from claiming expenses to mileage or vice versa, it
should be done at the beginning of the new calendar year. Contact the Archdiocese Finance
Office for additional guidelines.
Written Procedures: Accounts payable procedures should be established in writing and
implemented at each entity.
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