BP 11122023 129pm - Flipbook - Page 33
SECTION 8 ACCOUNTING
Capital Transactions Accounting: Generally, only new fixed assets with a tangible useful life
greater than 5 years, like a new building, that are not replacing existing assets are added to the
balance sheet. See the Guidelines for Recording Capital Transactions at a Parish.
Columbariums, Cemeteries and Memorial Gardens Accounting: Contact the Office of
Catholic Cemeteries for guidelines.
Debt Due to the Archdiocese Accounting: At the end of the fiscal year, past due balances due
to the Archdiocese should be recorded as a liability until paid off. Examples include but are not
limited to: assessments and annual appeal shortfall.
Donations: Donations should be recorded in the general ledger on the date the bank deposit
clears.
Exchange Accounts Accounting: Entities ministries, programs, and pass-through fund-raising
activities may be recorded in an exchange account, and not revenue and expense accounts. If the
funds are used for the normal operations of the entity, a journal entry should be made to book the
corresponding revenue and expense. The funds should be processed though the entities’ safe,
count, and operating bank account, and not through a separate bank account. These groups’
invoices should be submitted to the entities’ accountant to be processed for payment. In this way,
all the receipts and disbursements related to these activities will be properly accounted for on the
entities’ books, without the need for additional cash accounts. See section Count Process. See
Accounting for Restricted Donations Fundraising and Ministry Funds.
Second Collection Accounting: Second collections should be recorded as revenue on general
ledger. Fees associated with online collection fees should be recorded separately as an expense,
not netted with the revenue. Only second collections approved by the Archbishop as assessment
free should be booked in an exchange account.
In Kind Donations: The record keeper should record the fair market value of material in-kind
donations. The tax letter should acknowledge only date/description of goods donated and
standard tax verbiage. A copy of each tax letter should be retained. The accountant should record
fair market value on general ledger via journal entry: i.e., capitalized asset or expense debit and
revenue credit for same amount with zero net effect on books. Note: Only the fair market value
of donated goods should be recorded, i.e., the value of services rendered is not tax deductible and
should not be recorded or acknowledged to donor.
Miscellaneous Receipts Accounting: Miscellaneous receipts should be booked to proper
general ledger account: e.g., revenue or liability (i.e., exchange account). Receipts should not be
booked as credits to expense.
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