Leadership Resources Practical Information for Grand Knights, District Deputies and Financial Secretaries - Knights of Columbus
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Leadership Resources Practical Information for Grand Knights, District Deputies and Financial Secretaries
TABLE OF CONTENTS Standing Council Committees................................... 20
Admission Committee ................................. 20
Recruitment Committee............................... 20
General Section
Retention Committee ................................... 21
Knights of Columbus Organizational Chart ............. 2
Council By-laws............................................................. 21
Supreme Council Headquarters
Ceremonial Guidelines ............................................... 21
Contact Directory ..................................................... 3
Financial Secretary Evaluation.................................. 22
Forms and Reports ......................................................... 3
Qualifications for Membership .................................... 4
District Deputy Section
Initiation Fees and Council Dues................................ 4
Introduction .................................................................... 23
Star Council Award ....................................................... 5
Ceremonial Work Within Your District ..................... 23
Father McGivney Award................................ 5
District Deputy Expense Form .................................. 23
Founders’ Award ............................................. 5
Official Council Visits ................................................... 23
Columbian Award............................................ 5
New Council Development........................................ 24
Other Awards ................................................................. 6
Council Reactivation .................................................... 24
International Service Award ......................... 6
Council Retention ......................................................... 24
Contest of Champions Award...................... 6
District Meetings ........................................................... 25
District Awards ............................................................... 6
Strategy Sessions ......................................................... 25
New Council Award ........................................ 6
Officers Online — District Deputy Section ............. 26
Star District Award .......................................... 6
Miscellaneous — District Deputy Section .............. 26
All Star District Award .................................... 6
Financial Secretary Section
Investments...................................................................... 6
Introduction .................................................................... 27
Duties of Council Officers ........................................... 8
Financial Secretary Compensation .......................... 27
Chaplain ............................................................. 8
Income Tax Requirements.......................................... 28
Grand Knight..................................................... 8
Deputy Grand Knight ...................................... 8 Bonding ........................................................................... 28
Chancellor ......................................................... 8 Annual Federal Information Return — Form 990
Financial Secretary.......................................... 8 (U.S. Councils) ........................................................ 28
Recorder ............................................................ 9 Officers Online — Financial Secretary Section ..... 29
Treasurer............................................................ 9 The Member Billing Application ............................... 29
Lecturer .............................................................. 9 Initial Setup for First-Time Users .............................. 29
Advocate............................................................ 9 Billing Members ............................................................ 31
Warden ............................................................... 9 Generating Notices ...................................................... 32
Inside/Outside Guards ................................... 9 Examples of Billing Dates........................................... 33
Board of Trustees ............................................ 9 Processing Payments from Members ..................... 33
Membership Director...................................... 9 Processing Receipts from Other Sources .............. 33
Program Director ............................................. 9 Generating Membership Cards ................................ 33
Faith Director ................................................. 10 Institution of Payment.................................................. 34
Family Director............................................... 10 Order on Treasurer (Vouchers) ................................. 34
Community Director ..................................... 10 Suspension of Council ................................................ 34
Life Director .................................................... 10 Record Retention .......................................................... 34
Protocol .......................................................................... 10 Report of Officer Elections ......................................... 35
Grand Knight Section Monthly Statement ....................................................... 35
Introduction .................................................................... 11 Member Data Change................................................. 36
Council Audit ................................................................. 11 Death of a Member ...................................................... 36
Council Budget.............................................................. 14
Membership Procedures ............................................ 14
Membership Procedures — Transferring Online
Members .......................................................... 17
Candidate Tab — Entering Member
Information Online ......................................... 17
Officers Online — Grand Knight Section ................ 17
Honorary and Honorary Life Membership
Honorary Membership................................. 18
Honorary Life Membership......................... 18
Honorary (Honorary Life) Membership
Ceremonial ............................................. 19Knights of Columbus
ORGANIZATIONAL CHART
SUPREME COUNCIL
State Deputy, last living Past State Deputy, Territorial Deputy,
delegates to the Supreme Council, Supreme Council Officers,
Board of Directors and Past Supreme Knight
BOARD OF DIRECTORS/
SUPREME COUNCIL OFFICERS
STATE COUNCIL
Grand Knights, Immediate Past Grand Knights,
State Officers and last living Past State Deputy
DISTRICT DEPUTY
ASSIGNED COUNCILS CHAPTERS
Grand Knight
Deputy Grand Knight Chaplain
Chancellor Financial Secretary
Recorder Membership Director
Treasurer Program Director
Advocate Faith Director
Warden Family Director
Elected Guards Community Director
Appointed Trustees Life Director
Lecturer
2GENERAL SECTION
SUPREME COUNCIL HEADQUARTERS CONTACT DIRECTORY
Main Number .....................................................203-752-4000
Customer Service .........................................1-800-380-9995
KnightsGear....................................................1-855-432-7562 knightsgear@kofc.org
Supplies Online ..............................................1-833-591-7770 customersupport@webbmason.com
Fraternal Mission...............................................203-752-4270 fraternalmission@kofc.org
Catholic Information Service .........................203-752-4574 cis@kofc.org
Ceremonials .......................................................203-752-4346 ceremonials@kofc.org
Chaplains Programs and Development .....203-752-4267 chaplains@kofc.org
Columbia Magazine .........................................203-752-4398 columbia@kofc.org
Council Accounts .............................................203-752-4392 council.accounts@kofc.org
Financial Secretary Appointments ...............203-752-4285 financial.secretary@kofc.org
Membership Growth ........................................203-752-4473 councilgrowth@kofc.org
Membership Records.......................................203-752-4210 membership@kofc.org
Member Management/Member Billing .......203-752-4210 expertfs@kofc.org
Scholarships .......................................................203-752-4332 scholarships@kofc.org
For general inquiries, email.....................................................................info@kofc.org
FORMS AND REPORTS
Due Date Form/Report
June 30 Report of Chosen Officers for the Term (#185)
OR the Officers Screen on Member Management
August 1 Service Program Personnel Report (#365)*
OR the Service Personnel Screen on Member Management
August 15 Semiannual Council Audit (#1295)
December 31 District Deputy Semiannual Report (#944A)
January 31 Annual Survey of Fraternal Activity (#1728)*
February 15 Semiannual Council Audit (#1295)
June 30 Columbian Award Application (#SP-7)*
June 30 District Deputy Semiannual Report (#944B)
Immediately Membership Document (#100)
If Required Notice of Intent to Retain (#1845)
As Required Entries for the State Council Service Program Awards Contest (#STSP)
and Family of the Year Contest to your state council
Monthly Exemplification Report (#450)
Monthly Family of the Month (#1993)
* Indicates Star Council Award Requirement
3QUALIFICATIONS FOR
MEMBERSHIP
If questions regarding the practical
The qualifications for Knights of Columbus Catholicity of an applicant or member
membership, as contained in Section 101 of the
arise, the pastor of the applicant or
Laws of the Order, are:
member should be consulted before
l Only practical Catholics in union with the any action is taken.
Holy See shall be eligible and entitled to
continue membership in the Order.
l An applicant for membership shall not be
less than 18 years of age on his last
birthday. INITIATION FEES AND COUNCIL
DUES
PRACTICAL CATHOLIC GUIDELINES
The Laws of the Order prescribe that the initiation
Guidelines have been established to assist in fee shall be fixed by the council, provided,
determining the practical Catholicity of an however, no initiation fee shall be required of any
applicant or member. These guidelines will assist priest or member of a religious community who
the grand knight in performing his duties when applies for membership. The rules also provide
serving on the council’s admission committee. that for those entering under 26 years of age, the
These guidelines include: initiation fee shall not exceed $10. In cases of
Juvenile to Adult transactions, the maximum
l A practical Catholic accepts the teaching initiation fee is $5, provided application is made
authority of the Catholic Church on matters prior to the applicant’s 19th birthday.
of faith and morals, aspires to live in
accordance with the precepts of the The Laws of the Order set forth specific provisions
Catholic Church, and is in good standing regarding dues payable by each member. Dues
with the Catholic Church. shall be levied in advance in an amount as fixed
l A practical Catholic strives to have a by the council. The dues for all associated and
greater knowledge of the teaching of insurance members shall be the same, and they
Christ and his Church, and to accept, must not be less than $5 per year. However,
respect and defend the Church’s authority councils may fix a different rate of dues for
(vested in the Supreme Pontiff, the insured members under 26 years of age, but the
hierarchy and clergy united with him) to same shall not be less than $3 per year.
teach, govern and sanctify the faithful.
l A practical Catholic gives material and moral
support to the Church and her works on all
levels, promoting the programs of the parish
and diocese and coming to the aid of the
missions, the needy and the under-
privileged; supports and advances the just
causes of minority groups; endeavors to
eliminate unjust discrimination, prejudice,
etc.; and supports the Church in her
defense of marriage and family life.
4STAR COUNCIL AWARD The Founders’ Award recognizes excellence in
the promotion of our insurance and fraternal
In order for your council to earn the Star Council benefits. The 2020-2021 Fraternal Year introduces
Award, it must: a new method for achieving the Founders' Award.
Councils can now fulfill all requirements towards
l Earn the Father McGivney Award for this award by hosting two Fraternal Benefit
membership growth; Seminars. These events are coordinated in
l Earn the Founders’ Award for insurance conjunction with your local field agent who will
growth; report your council's participation to the Supreme
l Earn the Columbian Award for well- Council. There is no application for the Founders’
rounded council programs by submitting Award as eligibility is automatically determined by
the Columbian Award Application (#SP-7); the Supreme Council.
l Submit the Service Program Personnel
Report (#365); The Columbian Award recognizes your council’s
l Submit the Annual Survey of Fraternal charitable service activities and fraternal programs.
Activity (#1728); and In order to earn the Columbian Award, your council
l Remain in good standing with the must earn four program credits in each of the four
Supreme Council (including youth categories of the Faith in Action program model, for
protection compliance) a total of 16 program credits. Programs conducted
(In the U.S. and Canada, this includes by your council, whether they be Supreme Council-
being fully compliant with applicable Safe sponsored programs or unique activities
Environment requirements.) coordinated locally, count for one program credit.
Additionally, half of the Faith in Action programs are
The Father McGivney Award recognizes Featured Programs. Featured Programs count as
excellence in council membership growth. two program credits towards the Columbian
Each year, your council is assigned a membership Award.The following is a list of Faith in Action
quota from the Supreme Council. For the award, Featured Programs:
growth is considered to be net increase over
losses through suspension or withdrawal. Deaths Faith Community
RSVP Coats for Kids
do not count against your quota, and transfers in
Into the Breach Global Wheelchair Mission
or out of your council do not count for or against
Spiritual Reflection Habitat for Humanity
your quota. Your council quota can be found Holy Hour Leave No Neighbor Behind
under the Membership tab in Officers Online, Family Life
which is updated daily. Eligibility for the Father Food for Families March for Life
McGivney Award is automatically determined by Family of the Month/Year Special Olympics
the Supreme Council and there is no application. Family Fully Alive Ultrasound Program
Family Prayer Night Pregnancy Center Support
When your council conducts one of the above
featured programs and fulfills its requirements, it
will receive two credits for that particular program
category.
For more information about Faith in Action and
Columbian Award requirements, visit
kofc.org/faithinaction.
5OTHER AWARDS INVESTMENTS
l The International Service Award is In order to accomplish the charitable mission of
presented to councils for the best the Knights of Columbus, councils routinely raise
programs conducted in the areas of Faith, money, which can then be donated to worthy
Community, Family, and Life activities. causes. This mission also calls our members to
The international winners are selected become personally involved in fundraising and
from the winning entries submitted by charitable activities.
each jurisdiction. The first place winners
are recognized at the annual Supreme Although some councils maintain a large bank
Council Convention. To be considered account or investment portfolio, we recommend
for the award, complete and submit the that councils conduct their financial affairs and
State Council Service Program Awards charitable giving so that accumulated general
Entry Form (#STSP). The form, along with funds do not exceed $10,000. Larger and more
supporting materials (newspaper articles, active councils may maintain a larger balance in
photographs, etc.), should be submitted order to cover the expenses for their activities.
to your state council. Also, some councils may exceed the
recommended $10,000 cap because of special
DISTRICT AWARDS circumstances, such as the receipt of a restricted
legacy gift or proceeds from the sale of home
The New Council Award is presented to those corporation property.
district deputies responsible for the development
of a new council. The recommended $10,000 cap on a council’s
general fund is intended to avoid common
The Star District Award is presented to those
problems associated with the accumulation and
district deputies whose district excels in the
investment of money. For example:
areas of membership growth, insurance growth,
programming, and overall excellence.
l Investing and managing funds frequently
causes discord and dissension among
To earn the Star District Award, the following
members who may disagree about
requirements must be completed:
investment decisions.
l Founders Award earned by every council l Conflicts of interest frequently arise when
in the District members (or friends/relatives of members)
l Reach 70% of combined council growth in the investment business seek to manage
quotas the funds.
l At least one council in the district earns the l The accumulation of large sums of money
Star Council Award may lead members to handle those funds
l For each council in your district, submit two unwisely, despite their good intentions.
District Deputy Semiannual Reports (#944) l Having access to a large amount of funds
– Due 12/31 & 6/30 may be a temptation to self-dealing on the
part of some members.
The All Star District Award is presented to those
district deputies who attain the Star District Award Councils are authorized to receive funds into their
and have all of their active councils earn the Star general account in the course of ordinary fraternal
Council Award. Must have a minimum of three and charitable activities. To the extent that these
active councils to be All Star and only available in funds are not immediately disbursed for
insurance territories. necessary expenses and charitable donations,
6they may be held in other bank and investment l Reputational risk to the Order if the
accounts. However, councils should never invest investments profit from activities
or hold funds in brokerage accounts, stocks, inconsistent with Catholic teaching.
annuities, non-Catholic mutual funds (other than l Long-term commitment by members to
government money market mutual funds), bonds, select an appropriate investment advisor
or other investments, such as gold, silver or and manage the principal.
platinum. Except under the special circumstances l Risk that successor trustees may not honor
described above, the Supreme Council does not the original intention of the trust or have
advise, encourage, recommend, or permit sufficient experience and expertise to
councils to invest or hold funds in any type of continue the investment program.
account other than the following: l Separate tax-filing obligations, if the trust is
formed as a separate entity, which is
l Ordinary short term certificates of deposit usually the case.
l Simple savings accounts l Substantial legal obligations and risks for
l Simple checking accounts failure to comply.
l Simple money market accounts
l Government money market mutual funds Rather than forming charitable trusts, councils
l Knights of Columbus Mutual Funds may consider other ways to distribute funds,
including:
For example, councils may choose to place funds
in excess of $10,000 in a short-term certificate of l A donor-advised fund established with
deposit while waiting to disburse the excess funds Knights of Columbus Charitable Fund in the
for an intended purpose. It is also acceptable for a name of the council
council to hold excess funds in a certificate of l State council charitable foundations
deposit as a reserve to cover a known expense or l Local Catholic schools
liability that is coming due in the future. The funds l Other local faith-based organizations
should be held under the name and Tax
Identification Number of the council, and only the Any individual member who expresses an interest
officers identified in the bylaws may have access in making a donation to an organization that
to the account. The financial officers and trustees promotes faith-based initiatives should be
are responsible for keeping the members encouraged to give to a donor-advised fund with
informed of where the funds are deposited. A
Knights of Columbus Charitable Fund, his state
program or committee chairman may never mix council’s foundation, or to the Supreme Council’s
Knights of Columbus funds with personal funds. United in Charity program. These donations are
eligible for a tax deduction. Donations to a council
In the event that a council receives proceeds from are not tax deductible.
the sale of home corporation property, the council
is encouraged to honor the legacy of the brother
Knights who acquired and maintained the
property over the long term. This can be done by
investing in a diversified portfolio of Catholic
values investments (e.g., Knights of Columbus
Mutual Funds) to pursue ongoing charitable
support in the name of the council.
Councils should not create charitable trusts.
These types of trusts pose several challenges and
risks, including:
7DUTIES OF COUNCIL OFFICERS
Chaplain
l A priest chosen annually by the grand
knight, deputy grand knight and trustees
l Serves as spiritual advisor to the brother
Knights and families of that council
l Provides his message to members at the
beginning of the meeting
l The chaplain should attend meetings of the
council whenever his schedule allows, as
his guidance is a great benefit
Grand Knight
l Presides over all meetings
l Appoints program and membership
directors
l Appoints committees as needed
l Countersigns checks and orders for
payment
l Responsible for the council’s Ceremonial
Team
l Maintains working relationships with the
council’s chaplain, district deputy,
insurance agent, as well as with other local l The prospective financial secretary must
service organizations (ie. food pantries, also complete and submit the Application
soup kitchens) for Appointment as Financial Secretary
(#FS-101)
Deputy Grand Knight
l Under Section 130 of the Laws of the
l Assists the grand knight with operation of
Order, the financial secretary is
the council and any other duties assigned
automatically bonded in the amount of
to him by the grand knight
$5,000. Additional bonding may be
l In the absence of the grand knight,
provided at a cost of $7 per thousand by
presides at council meetings
contacting the supreme secretary’s office
l Recommended to serve on the council’s
l Collects money, in the form of dues, from
Retention Committee
members. Responsible for sending billing
Chancellor notices and initiating retention measures
l Has the duty of strengthening the by providing a list of delinquent members
members’ interest in council activities to the grand knight to prevent members
l Assists the grand knight and deputy grand from being suspended for nonpayment
knight with their duties as assigned of dues
l Recommended to serve on the council’s l Ensures that the council membership
Admission Committee records are updated and that new
Financial Secretary members sign the constitutional roll
l Upon recommendation of the grand knight l Receives from the Supreme Council
and the trustees, the financial secretary is Headquarters honorary and honorary life
appointed for a three-year term that is membership cards for distribution to
approved by the supreme knight qualified members
8l Files various reports and membership/ l Sets up council chambers for meetings and
insurance transactions with the Supreme exemplifications
Council Headquarters l Oversees inside and outside guards
l Responsible for completing and submitting
Inside/Outside Guards
the proper 990 for the council (U.S. only)
l Attend the doors of the council chamber,
l Keeps the seal of the council and affixes
checking for current membership cards
the same to membership cards, resolutions
and allowing entrance
and other official documents as necessary
Board of Trustees
Recorder
l Consists of grand knight and three other
l Responsible for keeping and maintaining a
elected members
true and permanent record of all actions of
l Supervises all financial business of the
the council and maintains all
council and conducts the semiannual audits
correspondence of the council
l Trustees are elected for terms of three
Treasurer years. At the first election of a new council,
l Handles council funds three trustees shall be elected, one to hold
l Receives money from financial secretary office for one year or until the next regular
and deposits it in the proper council election, one for two years or until the
accounts second next regular election, and the other
l Responsible for paying all council for three years or until the third next
expenses, including assessments from regular election, as determined by lot
the Supreme Council among themselves. Thereafter, at each
l Under Section 130 of the Laws of the succeeding election, one Trustee shall be
Order, the treasurer is automatically chosen for a term of three years
bonded in the amount of $5,000 when
reported on the Election of Officers form Membership Director
(#185). Additional bonding may be l Appointed by the grand knight
provided at a cost of $7 per thousand by l Collaborates with the grand knight and
contacting the supreme secretary’s office council leaders on council membership
goals for the year
Lecturer
l Manages the Recruitment Committee,
l Appointed by the grand knight
Retention Committee and Insurance
l Responsible for providing suitable
Promotion Committee chairmen as they
educational and entertaining programs implement the council’s membership
under the “Good of the Order” section of activities
council meetings l Plans and coordinates the council’s
Advocate schedule of recruitment programs
l Acts as parliamentarian for the council l Ensures that Membership Applications
l Should have a working knowledge of (#100) are transmitted by the Financial
Robert’s Rules of Order, Charter, Secretary to both the Membership Records
Constitution & Laws, council by-laws, and Department at the Supreme Council and
parliamentary procedure the general agent
l When needed, will seek legal assistance Program Director
from the state advocate l Appointed by the grand knight
Warden l Collaborates with the grand knight in
l Responsible for supervising and setting the calendar of council programs
maintaining all council property for the year
9When addressing correspondence to a l Keeps accurate records of the council’s
person that you have a close working Community programs including Coats for
relationship with, you should Kids and Global Wheelchair Mission, if
acknowledge the office he holds. applicable
l Must complete all required Knights of
The salutation would be “Worthy Grand
Columbus Safe Environment training
Knight and dear Brother Bill”.
(kofc.org/safe) and must also pass a
background check
Life Director
l Manages program directors as they l Appointed by the grand knight, in
implement the council’s programs and consultation with the program director
activities l Responsible for all Life based council
l Keeps accurate records of council programs
programs for reporting on the Annual l Keeps accurate records of the council’s
Survey of Fraternal Activity and the Life programs including Special Olympics
Columbian Award Application and Ultrasound, if applicable
l Keeps council’s public relations chairman
informed of all programs and activities for PROTOCOL
promotion to local media
Proper protocol should be followed by all fraternal
Faith Director
leaders. Protocol, by definition, is basic common
l Appointed by the grand knight, in
courtesy. The Knights of Columbus Protocol
consultation with the program director
Handbook (#1612) contains specific information
l Responsible for all Faith based council
governing many types of situations where
programs
protocol is involved. Keep in mind, however, that
l Keeps accurate records of the council’s
where there is no specific rule governing a
Faith programs including Refund Support
situation, you will not go wrong by employing
Vocations Program (RSVP), if applicable
common courtesy.
Family Director
l Appointed by the grand knight, in Invitations — Guests should be sent proper
consultation with the program director invitations in writing well in advance (at least six
l Responsible for all Family based council weeks before the event). All invitations should be
programs sent in the name of and signed by the grand
l Keeps accurate records of the council’s knight, district deputy or state deputy,
Family programs including Food for respectively. Replies may be directed to a
Families and Family of the Month/Year, if chairman or committee member.
applicable The invitation should let the guest know timing,
l Must complete all required Knights of agenda, dress and any special expectations.
Columbus Safe Environment training
(kofc.org/safe) and must also pass a
Your district deputy, as a special representative of
background check
the supreme knight and state deputy, should be
Community Director invited to all council functions. However, it is not
l Appointed by the grand knight, in proper protocol to send a “blanket” invitation to
consultation with the program director your district deputy with the expectation that he
l Responsible for all Community based will attend each event. It should be understood
council programs that his schedule may not permit him to attend
10all affairs, in which case he would notify you in GRAND KNIGHT
ample time.
As grand knight, by virtue of your office, you and a
Speakers — Speakers for an event should be duly elected delegate from your council, along with
notified well in advance that they are expected the grand knights and delegates from each council
to speak. A courteous fraternal leader does not in your jurisdiction, compose the state council. The
approach a guest just before or during a program grand knight and delegate, or their alternates, elect
and ask if he wants to talk. This may give the state officers, elect delegates to the annual
impression that you would prefer he did not Supreme Convention and vote on resolutions
speak, but if he wanted to talk, you would presented to the annual state convention. It is
permit it. extremely important for you and the delegate from
your council to attend and participate in the
Head Table — Seating is usually arranged by the proceedings of the convention. By taking an active
highest rank from the middle out to either end. role, you will ensure a stronger future for your
Guests are introduced from the right toward the council and jurisdiction and the overall good of
middle then from the left toward the middle, the Order.
excluding speaking members at the head table.
The wives of all those seated at the head table Council Audit
should also be included in the dais. The following The Semiannual Council Audit Report (#1295) for
priority list should apply for speaking programs the period ending June 30 is due at the Supreme
and seating arrangements: clergy, Knights of Council by Aug. 15; the period ending Dec. 31 is
Columbus (in ranking order), civic dignitaries due by Feb. 15. The council trustees and the grand
and other fraternities. knight should complete the audit and send it to:
Knights of Columbus, Council Accounts,
When more than one priest is present and a 1 Columbus Plaza, New Haven, CT 06510-3326.
speaker does not wish to mention each by name, The reports can be found at kofc.org in the For
he should say “Rev. Monsignori” and/or “Rev. Members section.
Fathers.” Never use “Reverend Clergy” unless
clergymen of different faiths are represented. All three sections of the Semiannual Council Audit
Report (#1295) must be completed, and the audit
must be signed by the grand knight and at least
two trustees. If an entry is not applicable, the
word “none” should be inserted on the line.
Failure to complete any section or affix required
signatures will necessitate return of the report to
the grand knight.
Schedule A — Membership — A major objective of
the semiannual council audit is to reconcile local
council membership records with those maintained
by the Supreme Council Department of
Membership Records. If your council uses Member
Management/Member Billing, the requirement to
complete Schedule A is satisfied. Otherwise, the
sources for information necessary to complete
Schedule A are: (1) records the financial secretary
maintains on ledger cards or ledger sheets,
11depending on the accounting system used by the Schedule B — Cash Transactions — Financial
council; (2) semiannual Council Rosters provided Secretary — “Cash on Hand Beginning of Period”
by the Supreme Council Headquarters; and (3) will be the figure from the previous Audit Report
monthly Council Statements sent from the showing “Cash on Hand at End of Period.”
Supreme Council Headquarters. The latter are
especially necessary for associate to insurance, Figures for “Cash Received — Dues, Initiations”
insurance to associate, transfers out of the council and “Cash Received from other Sources” will be
and, in some instances, death transactions the accounting period summary from Records of
recorded as a result of insurance claims Cash Receipts or from the Financial Secretary’s
processing. All discrepancies between local council Cash Book. “Total Cash Received” will be the total
of the three previous items.
and Supreme Council records are to be reconciled,
with any necessary membership transactions being
Amount for “Paid to Treasurer” will be the total of
submitted to the Department of Membership
the figures shown on receipts from treasurer to
Records or local council records being corrected as
financial secretary for moneys received during the
necessary to ensure agreement. Only those period by the treasurer from the financial secretary.
members for whom the applicable membership
transactions have been reported are to be listed on “Cash on Hand at End of Period” will be amount
the audit. If an addition or a deduction is being shown “Paid to Treasurer” subtracted from the
acted upon but has not been submitted with amount shown “Total Cash Received.” In most
sufficient time for processing, it is not to be instances, “Cash on Hand at End of Period” will
indicated on the audit report. A review of the show a zero balance, as most financial secretaries
monthly Council Statements for the audit period — pay all moneys to the treasurer before the end of
August through January statements for the January the audit period.
audit, and February through July statements for the
July audit — should be completed to ensure that Schedule B — Cash Transactions — Treasurer —
membership transactions have been received and The “Cash on Hand Beginning of Period” will be
processed by the Supreme Council Headquarters. the figure shown on the previous audit from line
For the purpose of preparing the semiannual audit “Net Balance on Hand.” The item “Received from
only, inactive insurance members are excluded; Fin. Sec.” will be the accounting period total of the
they are not to be considered as insurance items in the Treasurer’s Cash Book showing
members of the council. If an insurance member is moneys received from the financial secretary.
suspended or takes a withdrawal, he becomes This should agree with the amount shown in
inactive and is considered a deduction. Conversely, the financial secretary’s report on line “Paid to
Treasurer.”
an inactive member reactivating his membership is
an addition to be recorded on the “Re-entries” line.
Under “Disbursements,” the amounts for per capita
Also, the “Transfers — Assoc. to Ins.” and
payment and general expenses will be the
“Transfers — Ins. to Assoc.” lines in the Additions
accounting period total of payment by the council
and Deductions sections must agree. For example, as shown in the Disbursements section of the
an insurance addition as a result of an associate to Treasurer’s Cash Book.
insurance transfer is also an associate deduction.
The figures for “Total Deductions” in the Audit Procedures for Schedule B — The
Deductions section are to be placed on the line procedure detailed below is recommended for use
“Minus Total Deductions” in the Additions section by auditors in determining that dues payments
and must be subtracted from the figures for “Total were receipted, entered on the appropriate
for Period” to obtain the correct figures for Member Ledgers, turned over to the treasurer,
“Number Members at End of Period.” receipted by the treasurer and deposited in the
council’s bank account. Conversely, it is effective in
12verifying that credits were not posted to Member Schedule C: Some councils may include
Ledgers unless there is a record of payment having figures in this schedule that are not
been received. In order to make these applicable to the audit report. This is
determinations, a representative number of particularly true relative to “Due Supreme
accounts should be “spot checked.” Proceed as
Council: Per Capita” in the Liabilities column
follows:
and “Due from Members” in the Assets
l Verify several receipts on each Record of column.
Cash Receipts sheet to determine if credit
A common error is that some councils
was given on the appropriate Member
include as owed the per capita levy for the
Ledger for the amount shown
l Verify several Member Ledgers to period following the one for which the audit
determine, in reverse order, if credit given is being made. For example, if an audit is
there was received and recorded on the being conducted for the period ending Dec.
Record of Cash Receipts 31, then the per capita levy for January of
l Verify the totals on each Record of Cash the following year should not be shown on
Receipts sheet to determine that moneys the “Per Capita” line. However, should that
were turned over to the treasurer and his January levy not be paid by June 30, it
receipt was issued would be included on the next audit.
l Verify each Treasurer’s Receipt to determine
that the amounts shown were credited on “Due from Members” — if the financial
bank statements as deposits secretary follows the proper billing
procedures, he will have sent the First
To determine if the treasurer’s check register is in Notices at least 15 days prior to the start of
balance with the balance shown on the end-of-
the period. Entries are not to be made for
period bank statement, the following procedure is
suggested: those members being billed for the
following period. To avoid confusion,
l Determine that an authorized voucher exists billing notices should be dated as the first
for each check issued and that the check of the month of the start of the period
was issued to the correct payee in the (January 1 or July 1), not the date the bills
correct amount are being prepared. However, should any
l Review the endorsement on the checks to portion of the bill remain unpaid into the
determine that they are properly endorsed next audit period, that portion is to be
by the payee
included on the ensuing Audit Report.
l Compare the cancelled checks to the Cash
Disbursement register and indicate initial
audit results on the check register
Assets — “Undeposited Funds” are moneys in the
Schedule C — Assets and Liabilities — This section possession of either the financial secretary or
will provide insight as to the financial condition of treasurer or both. Assets labeled “Bank —
the council. From the audit period it will indicate the Checking Acct.” and “Bank — Savings Acct.” will be
council’s financial progress — or lack thereof — and the reconciliation of the treasurer’s checkbook(s)
where necessary, it will enable the trustees, state showing the net cash balance(s). Outstanding checks
and district deputies, and the Supreme Council should be deducted from the bank statement.
Headquarters to obtain a true picture of the “Due From Members” data is obtained from the
council’s financial status. financial secretary’s Member Ledger records. Refer
to “Schedule C — Assets and Liabilities” for
guidelines regarding these figures prior to making
the entries.
13One indicator of the financial condition of a of the budget that was approved by the
council is the number of members in arrears and membership.
the amounts owed. Be certain to include these
figures on the report. As grand knight, you should work with the
treasurer, financial secretary and trustees of your
The treasurer will furnish the amounts for “Money council to compare the past year’s actual figures
Market accts.” from his cash book, which should with the budgeted figures that were approved by
show transfers of cash to savings accounts. the council. The information obtained will be used
to develop the budget for the current fraternal
Liabilities — Figure for the Liabilities section year. Your council’s budget should correspond to
relative to the council’s obligations to Supreme the fraternal year, which covers the period from
and state, as well as miscellaneous, will be July 1 to June 30. Setting your council’s budget
supplied by the financial secretary from his should be started immediately after your election
records and from unpaid bills in his possession. as grand knight.
Advance payment of dues by members should When beginning the budget process, review the
be included in “Advance Payments By Members.” actual revenues and expenses for each program
It is a liability because it represents dues payment and activity and compare those with the budgeted
figures from the past year. Questions to consider
not yet chargeable to the members.
when setting a budget include:
When a member is suspended, the amounts he
l Were the revenues skewed by one large
owes will appear in the Audit Report for the period
donation?
in which he was suspended. If using a manual
l Were items that were donated in the past
accounting system, his Member Ledger should be
now being charged for, thus increasing
removed from the council file on or before the
expenses?
end of the period in which he was suspended.
l Was participation in a particular activity up
This procedure will ensure that a billing notice
or down? Did it depend on the weather or
is not produced during the next billing period
a scheduling conflict? This could impact
and eliminates the carryover from one period to
both revenues and expenses.
another of uncollectible dues or other charges on
l Did the council charge too little or too
members who have been suspended. The figure
much for the event?
for “Total Current Liabilities” is also entered in the
Assets column in the space designated “Less: Keep the budgeted figures realistic and
Current Liabilities” and is subtracted from “Total attainable. The figures should reflect an
Current Assets” to obtain “Net Current Assets.” approximation of the actual results from the prior
year, adjusted as needed for either an
If liabilities exceed assets, the “Total Current extraordinary event or something that will be
Assets” should be subtracted from “Current considered normal going forward. They should
Liabilities” and the resulting figure shown in also be based on the answers to the sample
parenthesis. questions above. However, a good rule of thumb
would be to increase revenue and expenses for
Other Assets — Trustees are to itemize other the cost of inflation (approximately 1-2 percent).
assets on the lines provided in this section. This is also the time to evaluate each activity to
determine which ones the council will continue.
Council Budget The budget for a new activity will either take the
Budgets are useful tools, as they allow your revenue and expenses from a discontinued activity
various program chairmen to conduct programs or new dollars will need to be allocated for the
autonomously while working within the confines new activity.
14Once the budget is prepared and finalized, it Completed Membership Documents (#100)
should be disseminated to the membership and can be scanned and emailed to
adopted at a regular council meeting by a vote of membership@kofc.org and to the general
the membership. It is recommended that this take
agent of your council. This saves time and
place during one of the first meetings early in the
fraternal year. This process ensures that future
money and ensures that transactions are
meetings are utilized to the fullest and are not posted to your council’s account quickly.
taken up with voting on each project’s expense. It Preferably, any updates to a member’s
is also a good practice to ensure that excess funds status should be made through the
are transferred from the council’s general account Member Management application located
to a savings account, as appropriate. in Officers Online.
After the council passes the budget, it does not
mean that it is set in stone. The budget should be
application is to be processed as a Juvenile to
an adaptable document, changing as circumstances
Adult transaction. The juvenile policy number
dictate.
should be included on the Membership Document
(#100), if available. If the prospect applies for
Membership Procedures membership prior to his 19th birthday, the
The financial secretary should use the Member maximum initiation fee that can be charged is $5.
Management application (the preferred method,
when applicable) or process a Membership 3. Reinstatement — This transaction can be used if
Document (#100) for each of the following membership termination has been for a period of
transactions: three months or less. Reinstatements can only take
place in the council from which the member was
1. New Member — The Exemplification of Charity,
suspended or took a withdrawal. A reinstatement
Unity, and Fraternity establishes membership, and
will not reflect a break in membership. No council
the recording of that exemplification is required to
vote is required.
activate fraternal benefits. Immediately (within 24
hours) following the Exemplification of Charity,
4. Readmission — This transaction is appropriate if
Unity, and Fraternity, the financial secretary will
membership termination has been for a period of
process the Membership Document (#100) by mail
more than three months and up to seven years.
or email. Whether you mail or send an email of the
The applicant may be readmitted into the council
Membership Document (#100) to the Supreme
Council Office, always copy the general agent. of his choice. Council vote on his membership is
This will ensure that the new member is recorded required, but action by the admission committee is
on the council roster and that the general agent normally not needed.
receives a copy of the Membership Document
(#100). (Note: If the field agent is present at the 5. Reactivation — The proper transaction for
ceremony, he may pick up this document for reentry of an inactive insurance member is
delivery to the general agent.) The council should reactivation. An inactive insurance member has
always retain a copy of the Membership been suspended for nonpayment of dues but
Document (#100) for its records. When sending the maintains an in-force Knights of Columbus
Membership Document (#100) via email, there is no insurance certificate.
need to send a hard copy.
6. Reapplication — When an applicant has been
2. Juvenile to Adult — Juvenile to Adult constitutes out of the Order for more than seven years,
a specific category for an applicant for membership reapplication is the proper transaction to be used.
who holds an in-force insurance policy that was He may reapply to the council of his choice, and
issued while he was under 18 years of age. His the re-applicant need not be exemplified again if
15he satisfies the admission committee that he’s these letters so that the state council can follow up
already done so. He pays no initiation fee. and attempt to retain each of these withdrawals.
7. Transfer — A member in possession of a current 9. Suspension — NonPayment — A member must
membership card may transfer to any council of his be in arrears for at least three months before he
choice by applying through a Membership can be suspended for nonpayment. Any member in
Document (#100). The receiving council accepts that status, however, is to be advised that a current
the application for transfer under the elective membership card is required for attendance and
procedures. Please note that a transfer is initiated participation at all Knights of Columbus business
only by the receiving council. Members cannot be meetings and ceremonial exemplifications.
transferred out of a council. A “current” membership card is defined as one
bearing a “DUES PAID TO” date equal to or greater
8. Withdrawal — The withdrawal transaction cannot than the current date. Because this category of
be reported by using the Membership Document suspension represents the largest group of losses
(#100). Rather, a personal, signed communication to our Order each year, it is of vital importance that
from the member requesting withdrawal proper billing procedures be followed before active
(resignation) is required to be sent to the council membership is terminated by suspension.
and forwarded to the Supreme Council
Headquarters. A member can resign whether he is As in the case of a withdrawal, a suspended
current in dues or in arrears. The only stipulation is insurance member goes to an inactive status and
that he must be eligible for re-entry as of the date remains on the council rolls. Because of this fact,
he files his letter of withdrawal with the council or the council is responsible for Supreme and state
assembly. Withdrawal is not an option for a felon, levied assessments and also receives the annual
non-practical Catholic, or someone who has been $9 credit, as explained in the preceding section.
suspended or expelled under Section 162 of the
Order’s Laws. Those members who apply for and 10. Death — As soon as possible after the death of
are granted a withdrawal do not maintain a council member, a Membership Document (#100)
continuous membership. The membership record should be submitted to the Supreme Council
will reflect a break in service. If the applicant for Headquarters for processing with the complete
withdrawal is an insurance member, he will be date of death and survivor information included.
recorded as an inactive member and will remain in If Member Management is used to report this
that status on the council roster as long as his transaction, there is no need to submit additional
insurance is in force. documentation. Deceased members are
remembered in daily Mass at St. Mary’s Church,
The council continues to be responsible for New Haven, CT — the birthplace of our Order.
Supreme and state council assessments on
inactive members. However, a $9 credit is applied 11. Disability — Relief from Payment — Those
to the council’s account the month following the brother Knights who are unable to engage in any
anniversary date of the member’s insurance policy occupation for a period of at least six months may
to offset such assessments. apply for waiver of dues under Section 118(e) of the
Order’s laws. Evidence of total disability must be
Upon receipt of a valid withdrawal request, the furnished to the Supreme Council Headquarters,
Membership Records Department will process the along with the Application for Relief from Payment
request and a letter from the Supreme Knight will of Council Dues and Supreme and State Council
be sent out to the former member acknowledging Per Capita Charges (#1831). The Application must
that their withdrawal was processed and providing be signed by the disabled member, the grand
information on how they can once again become knight and the financial secretary. All disability
a Knight in the future should they wish to join a waivers expire on Dec. 31 of each year and must
council or join online as an Online Member. The be renewed during the 90 days prior to expiration.
State Retention Chairman is copied on each of A letter is sent from the Supreme Council
16Headquarters requesting confirmation of continued of conviction, certification that the individual
disability during October and must be signed by convicted is known by the financial secretary to be
the grand knight and financial secretary. The letter the member to have his membership forfeited and
is then returned directly to the supreme secretary’s a completed Membership Document (#100) are
office. Council members who are exempt from sufficient for suspension under Section 168.6.
dues payment under Section 118(e) are to be issued
a Membership Card (#154) on a calendar year This transaction is NOT counted against Supreme
basis. In the case of a member qualified for Council award quotas.
exemption under both Sections 118(e) and 118(d) —
honorary life — the honorary life designation 14. Suspension — Misconduct — Detailed
takes precedent. instructions on filing complaints against a member,
his rights to plead and trial are found in the Laws of
12. Suspension — Lack of Practical Catholicity — the Order, Chapter XIX, Sections 170-181. A
One of the requirements for membership in the completed Membership Document (#100) and all
Knights of Columbus is “…practical Catholic in paperwork resulting from compliance with Chapter
union with the Holy See.” In order to remain on the XIX of the Laws of the Order must be submitted to
active rolls of your council, a current member must the Department of Membership Records before the
maintain his practical Catholicity. On occasion, suspension processing can be initiated.
however, members leave the faith, marry outside of
the Church or otherwise lose that status. In such This transaction is NOT counted against Supreme
cases, they forfeit their membership “ipso facto” — Council award quotas.
by virtue of the fact. Before a suspension for this
infraction can be processed, tangible evidence to Membership Procedures — Transferring Online
support a suspension under Section 168.1 of the Members
Laws of the Order is required. A statement must be
on file in the Supreme Council office from the Transferring Online Members — Online Members
council chaplain or the member’s parish priest to “assigned” as prospects to councils will appear in
the effect that the man in question is no longer a the council’s Prospect tab in Officers Online.
practical or practicing Catholic. A statement signed This tab will only be seen by grand knights and
by the member admitting to the infraction giving financial secretaries. Councils will not have an
rise to the attempted suspension is also “Unassigned” tab.
acceptable. One of these statements, along with a
completed Membership Document (#100), must Candidate Tab — Entering Member Information
submitted in order for suspension processing can Online
be initiated.
The Candidate Tab, which is accessible through
This transaction is NOT counted against Supreme Officers Online, allows grand knights and financial
Council award quotas. secretaries in the United States and Canada to
provide the membership information for new,
13. Suspension — Felony Conviction — Section reactivated and transferring members directly to
168.6 of the Laws of the Order stipulates forfeiture the Supreme Council online. While this tool helps
of membership for a felony conviction. A felony is streamline the processing of member information,
generally one where the potential penalty is it does not fully replace the Form #100 and
greater than one year incarceration. To sub- each prospective member should still complete
stantiate conviction, the financial secretary must a Form #100 for state and council records.
submit: a newspaper account of the conviction, Information submitted using this tool can be
written confirmation from the prosecutor or a expected to be processed within 2-3 days.
certified copy of the court documentation. Proof of
conviction should include a description of the crime Once the council has gone through the admissions
as a felony. Any ONE of the aforementioned proofs process, and the member has taken his
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