New Business Administrator Institute: Strategies for Employee Management

1. Welcome to the New Business Administrator InstituteSession III

2. Opening Prayer Led by Celia Meyers

3. Facilitated by - Catherine Gryniewicz Coffee with Catherine Today’s Chat Topic: Employees Sometimes Make Bad Decisions

4. Contemplate how frequently you allow yourself to be in god’s rhythm…..to stay in rhythm is to “be” in life.

5. What do you do if an employee…. An employee is poorly doing 40% of their job duties. Inappropriately uses email. Drives as part of their job, but does not have a valid drivers license. Was said to be an aggressor in a fight. Was accused of sexual harassment.

6. Paid administrative leave is always an option…Then investigate, document, and determinate next steps according to their type of employment & the egregious action.Make sure the right people are involved & informed.

7. At-Will vs Contract Employment At-Will: • Another way of saying, “At the will of either party.” • Employee(s) must be treated fairly. • Know expectations • Dialog on performance • Evidence of poor performance • Reasonable discipline • Consistent and following policy • Able to defend

8. At-Will vs Contract Employment Exceptions to At-Will: • Employment contract • Statutory consideration, e.g., discrimination • Public policy, e.g., w.c., whistleblower, unlawful act. • Implied contract (oral or via handbook) • Covenant of Good Faith – discharge long term employee $ benefit

9. A Look Ahead at Non-Renewal of a Contract • Contract offer dates: April 1 for Principals; April 15 for Teachers • According to policy, if Non-Renewal is due to performance concern: • Should not come as a surprise • Concerns put into a written PIP • “Reasonable” time e.g., minimum of 60 days

10. Documented Performance Improvement Plan (PIP) - Policy #4118 • ID performance concern with examples. • Define expectation • Develop a for plan of action • Monitor progress • Signatures of both the employee and the employer.

11. In the PIP you must include this “lingo”: “The above goals and areas for improvement will be in effect for the 2018-2019 school year.”“Failure to comply with these goals may lead to termination and/or the non-renewal for the 2019-2020 school year.”

12. At-will Employment Coaching Depending upon the circumstances, discipline may be: • verbal warning, • written warning, • suspension without pay, OR • termination.  Progressive discipline may not be followed in all cases. 

13. Things to be Aware of: Legal considerations • An employer may say the termination was for nonperformance, but the employee can say it’s really because of_____________. • Gender, • Age, • Retaliation, etc. • Documentation is key for a good defense.

14. Things to be Aware of: Human Condition New ideas may encounter resistance. The brain is a maze with meandering perceptions. Beliefs are born in that maze. A person has to want to change. Keep a forward focus.

15. What Does Documentation Need to Include? • Who • What • Where • When • Why • Etc…..

16. Reduction In Force • Eliminate or reduce employment status due to employer not employee. • Employment procedure with legal implications. • Criteria for determining job reduction or job elimination. • Employee(s) may have the right to recall. • 30-day notice prior to effective date.

17. Criteria for Teachers & Teaching Aides

18. Criteria for Employees, other than Teachers • Practicing Catholic, if a ministerial position • Maintaining qualifications as identified in applicable job description • Performance evaluation documents • Seniority

19. Remember Prior to taking an action that will result in a dismissal or termination (including a RIF and non-renewal of contract), the employer must have sought and followed the advice of a qualitied attorney OR other professional person that Catholic Mutual has approved.

20. Grievance • What is a Grievance? • Formal dissatisfaction of what an employee expects from the workplace. • Why? • Improperly or inequitable application of policy; Harassment… • Process – Defined steps. • Written documentation. • Confidential, to the extent it is practical. • No retaliation.

21. Church Unemployment Church Unemployment Pay Program Governed by Wisconsin Catholic Conference (WCC) Program has an Administrator contracted by WCC Covered employee – at least 20 weeks of work with the employer during the prior 52 weeks.

22. Church Unemployment Listed inside brochure: • Benefit Eligibility • Disqualifications • Benefit Determinations • Claims Process • Appeal Process • Program Board Hearing

23. Types of HR Review • Compliance • Review Self-Assessment by • Best Practice Review • Archdiocese Review with __________________

24. Areas of HR Review • Job Description Section • Candidate Posting, Selection, & Interview Section • Candidate Verification & Compliance Section • New Hire and Employee File Section • Postings

25. Questions?

26. Break Up Next: Parish Income – Unrestricted, Restricted, Designated

27. Parish Income, What’s the Difference: Unrestricted, Restricted, Designated Presented by: Katie Esterle & Denise Montpas, Parish & School Financial Consulting

28. First, a Quiz.  Take 5 minutes to review the handout with a small group. Of the examples, which are unrestricted, restricted and designated?

29. Why does this matter? • Accounting standards require that nonprofits report income in two categories: with donor restriction and without donor restriction • Parishes have an obligation to the donor to use restricted funds properly • It helps keep the parish financial reporting clean as to what revenue, expenses and funds are restricted vs. operating • It can be difficult to make decisions if a parish’s numbers are commingled • It makes completing the CFS easier • (We will cover this later) • The Archdiocesan assessment is based on unrestricted revenue

30. Unrestricted Income • Income that a parish/school receives that is not legally restricted by the donor. • Examples: • Offerings collected (cash & envelopes) • Loose change offerings • Holy Day envelopes / cash and loose change • Investment Income from unrestricted investments • School tuition • Fundraisers • Bequests and memorials

31. Restricted Income • Income that a parish/school receives in which the donor states a specific purpose for the funds, in writing. • Examples: • Funds raised as part of a capital campaign • Donation to a parish for capital needs • Endowments • Cemetery Funds

32. Designated Income • Income that a parish/school receives that is not legally restricted by the donor, but the parish sets aside for a specific purpose. • Examples: • Funds belonging to affiliated organizations like Athletics or Christian Women • A savings account for capital improvements that is funded through accumulated profits

33. What To Do About Unsolicited Designations • If a donor designates a contribution that isn’t a result of an “ask” for that purpose, you have a choice. If you accept the gift with strings attached, that money becomes restricted to that purpose. Sometimes that’s fine. • Example: having a facilities fund to pay mortgage and building-related expenses, you may be happy to accept such gifts even if they weren’t directly solicited. • What about designations that don’t make sense for your parish at this time? • You are not obligated to accept designated gifts. • One option: ask the donor if the money can be used for other purposes. If the donor is gracious enough to agree, the money isn’t restricted.

34. Restricted Income 2.0 • Interest and Dividend income from a restricted investment could be either Restricted or Unrestricted, depending on the following: • Restricted: If the donor stated in writing a specific purpose for which the income and dividends are to be used. • Unrestricted: If the donor did not restrict in writing how the interest and dividends are to be used. Keeping track of the accumulated balance of unrestricted interest/dividends is important so the parish knows how much of the funds are available for general operating purposes.

35. Example 1: The parish is undertaking an addition to the school. The parish conducts a capital campaign to raise $1,000,000 to pay for the addition. Answer: Restricted. Items to consider: • Proxy • Have a contingency (what if you raise more than needed)

36. Example 2: The parish has a net surplus of $50,000 at the end of the fiscal year. They decide to set aside reserves for facility premises maintenance that need to occur in a future fiscal year. It formalizes this through action of the pastoral and finance councils. Answer: Designated.

37. Example 3: A donor comes forward and offers the parish $25,000 to maintain the church pipe organ. Answer: Restricted. Or is it? Items to consider: • Is the donation in writing? • Do you need $25k for a pipe organ? Can the intention be fulfilled?

38. Example 4: The Christian Mother’s Club has $12,520 in their checking account. The money is raised through bake sales during the year. Answer: Designated. Items to consider: • How was the money raised. • Does the group have bylaws?

39. Example 5: The parish receives a large bequest. Answer: Unrestricted. Unless there was a specific intent from the donor in writing, the gift is unrestricted.

40. Questions? Up Next: Confidential Financial Statement (CFS)

41. Confidential Financial Statement (CFS) • What is the CFS? • The CFS Process. • Each worksheet, with comments on certain data points • Avoiding Common pitfalls Presented by: Katie Esterle, Parish & School Financial Consulting

42. What is the CFS? • The annual Confidential Financial Statement (CFS) is a group of financial documents prepared at the end of the fiscal year by all parishes of the Archdiocese of Milwaukee. Since there is no common accounting software among parishes, the workbook is in Excel. • The data contained in these reports is used to calculate the archdiocesan assessment as provided for in Canon 1263 of the 1983 Code of Canon Law, for strategic planning purposes, for reporting to the NCCB, for proxy determinations, and for other analytical purposes. It is confidential in that it is not public record. • Besides the assessment, the CFS produces a Balance Sheet, P&L, information on restricted funds, and school financial data.

43. The CFS Process (Steps 1-5) • Parish prints final financial statements. If affiliated organizations are not part of your internal financials (they should be), make sure you have their data available to enter in the CFS. • Download CFS template from Archdiocesan website. • Enter data into “Data Entry” worksheet on CFS. This should reconcile to your parish financials. *Tip- The more closely aligned your chart of accounts is with the Archdiocesan COA, the easier this process will be. • Review the CFS with your Pastor (Parish Director), Trustees and FC Chair. Have them sign a coversheet. • Submit the excel workbook and the signed coversheet to the Archdiocese.

44. The CFS Process (Steps 6-11) • Parish Finance Office reviews the CFS • If there are questions or revisions need to be made, Parish Finance will follow up with the person who submitted the report. • Once a final CFS is received and approved by the Parish Finance Office, you will receive email notification. • Your financial data is summarized into reports used by the Archdiocese. • The assessment is calculated based on the data in the CFS. • Assessment billing typically happens on October 1st. Expect to receive a statement soon after that. If a final workbook is not received by that date, your parish will be charged a 15% penalty.

45. The CFS WorkbookSheet 1 - Instructions • 2019 CFS • The first worksheet provides detailed instructions on filling out and submitting the CFS. Please read the instructions, they are quite helpful.

46. The CFS WorkbookSheet 2 – Data Entry • This is where you will spend 99% of your time on the CFS. This is the first of two worksheets that require you to input data. • Please fill out all of the data points at the top of the worksheet. • The Data Entry worksheet includes a full chart of accounts, by department, that need to be filled out according to your parish internal financial statements. • The bottom line on the Data Entry worksheet should reconcile to your P&L and Balance Sheet. • The data provided populates a P&L and Balance Sheet in the workbook itself.

47. The CFS WorkbookSheet 3 – Restricted & Debt Recon • New This Year! • This is the second of three worksheets that require you to input data. • You only need to fill out the yellow boxes, the rest will be auto-filled.

48. The CFS WorkbookSheet 4 – Explanations • This is the third of three worksheets that require you to input data. • Parishes are required to fill out information on restricted funds, not including cemeteries. • Dollar Amount • Purpose of the Funds • The CFS is set up to verify that the values on the Explanations worksheet reconcile to the Balance Sheet. If this isn’t the case, you will see a large red error message at the bottom of the page.

49. The CFS WorkbookSheet 4 – Explanations • This is the third of three worksheets that require you to input data. • Parishes are required to fill out information on restricted funds, not including cemeteries. • Dollar Amount • Purpose of the Funds • The CFS is set up to verify that the values on the Explanations worksheet reconcile to the Balance Sheet. If this isn’t the case, you will see a large red error message at the bottom of the page.

50. The CFS WorkbookSheet 5 - Balance Sheet • Based on the figures provided on the Data Entry worksheet, a Balance Sheet is populated. • The accounts are consolidated for easy review, with restricted funds being recorded separately.