Financial Secretary

• Upon recommendation of the grand knight and the trustees, the financial secretary is appointed for a three-year term that is approved by the supreme knight
• The prospective financial secretary must also complete and submit the Application for Appointment as Financial Secretary (#FS-101)
• Under Section 130 of the Laws of the Order, the financial secretary is automatically bonded in the amount of $5,000. Additional bonding may be provided at a cost of $7 per thousand by contacting the supreme secretary’s office
• Collects money, in the form of dues, from members. Responsible for sending billing notices and initiating retention measures by providing a list of delinquent members to the grand knight to prevent members from being suspended for nonpayment of dues
• Ensures that the council membership records are updated and that new members sign the constitutional roll
• Receives honorary and honorary life membership cards for distribution to qualified members
• Files various reports and membership/ insurance transactions with the Supreme Council Office
• Responsible for completing and submitting the IRS form 990 for the council (U.S. only)
• Keeps the seal of the council and affixes the same to membership cards, resolutions and other official documents as necessary

The Financial Secretary’s Responsibilities

You have been selected by your council and appointed by the supreme knight. Through your professionalism, accuracy, strong organizational skills and timeliness, your council will be financially strong and able to conduct charitable projects in your parish and community.

If you must resign from office before the end of your term or if you do not wish to continue beyond the end of your three year term, you should send a letter of resignation to the supreme knight noting the effective date of your resignation and the reason for doing so. This should be done as far in advance as possible, as sufficient time is needed to secure other applicants for the position and to process the paperwork necessary for the appointment.

Financial Secretary Compensation

The board of directors has set the compensation to be paid to the financial secretary, and every council should have by-laws that conform exactly to this policy:

• From the council — an amount no less than 8 percent and no more than 10 percent (to be determined by the council) of the moneys collected for dues from both insurance and associate members. The financial secretary is free to waive this compensation at his discretion.
• Lump sum payments are not allowed as compensation to the financial secretary. The purpose of compensation on the percentage basis is to pay the financial secretary according to the effectiveness of his collecting from members all moneys due to the council. Such collection is the first duty of his office listed in Section 139 of the Laws of the Order. The financial secretary receives compensation from his council for dues collected only. He does not receive compensation for initiation fees or any other receipts.
• From the Supreme Council Office — the financial secretary annually receives at the end of each calendar year $.40 for each life insurance certificate registered to the council and in force at the end of the calendar year.
• The payment from the Supreme Council is made annually in January to the financial secretary of record on Dec. 31. If more than one person served in the office during the year, it is expected that the financial secretary receiving the compensation will share it on a pro-rata basis with his predecessor.
• The approved compensation is for performance of the regular duties of the office of the financial secretary according to the Laws of the Order. The council may award additional compensation to a financial secretary for extra duties which he performs at the council’s direction beyond those required by the Laws.

Income Tax Requirements

The annual grant from the Supreme Council and any payments from your local council are subject to income tax. Accordingly, you are required to report the total amount received on your personal tax returns. In the United States, the Supreme Council will issue you a Form 1099-MISC should your grant exceed $599.99. For Canadian councils, a T4A slip will be issued if the grant exceeds $499.99. You must report the grant as income on your personal tax returns, even if it falls below the threshold for issuance of a Form 1099 or a T4A tax slip. You are not treated as an employee of either the local council or the Supreme Council.

Bonding

The financial secretary, upon appointment by the supreme knight, is automatically bonded at no charge to the council in the amount of $5,000. The same is true for the council treasurer. Councils may request additional coverage — at a cost of $7 per thousand dollars of coverage — by writing to the supreme secretary.

Additional information on bonding:

• Bonding is on the office of the financial secretary, not the person holding the position
• Additional coverage is requested by writing to the supreme secretary
• Bonding on the covered officers is limited to $125,000 of total coverage per council, including the provided $5,000 of coverage on each officer
• Bonding runs from March 1 to the end of February, and any charge for additional coverage is posted on the council account annually in March or April. The charge is prorated if purchased at another time during the year
• Bonding coverage is applicable only to councils who have properly completed the two most recent council audits, which must be on file at the Supreme Council Office.

Annual Federal Information Return — Form 990 (U.S. Councils)

The Knights of Columbus, including all subordinate councils, assemblies, and chapters (collectively referred to as councils), is a tax-exempt organization, recognized by the Internal Revenue Service as a fraternal benefit society under Section 501(c)(8) of the Internal Revenue Code. A group ruling recognizing the exemption was obtained by the Supreme Council for itself and for its subordinate units. The group ruling does not extend to home corporations. This tax-exempt status requires each council in the United States to file an annual Form 990 with the IRS.

• The IRS now requires electronic filing for all tax-exempt organizations, regardless of which form they use. In order to utilize the online filing system, all new users must complete a registration; instructions are available on the IRS website, links to which are in the Where to File section, below.
• 990-N e-postcard – Councils reporting gross receipts of $50,000 or less with less than $200,000 in assets may comply with their obligation by filing the Form 990-N electronic postcard (also known as the e-Postcard).
• 990EZ – Councils reporting gross receipts of more than $50,000 and less than $200,000 with total assets of less than $500,000 must file the Form 990-EZ.
• 990 – Councils with gross receipts of $200,000 or more and total assets of $500,00 or more must file the Form 990.

Any council reporting gross receipts of more than $50,000 is strongly urged to consider using a qualified tax professional to prepare and file its tax return. PRACTICE TIP: at the top of the Form 990-EZ and Form 990, enter the Knights of Columbus group number (0188), tax exempt status (Section 501(c)(8)), and form of organization (Association).

• Each council must file its own tax return; there is no group or consolidated Form 990 filing. The returns must be filed by the fifteenth day of the fifth month following the end of the council’s annual accounting period. Failure to file for three consecutive years or filing late will result in the IRS automatically revoking the council’s Employer Identification Number (EIN), which means a loss of tax exemption status.

The supreme advocate will send a memorandum, containing information on current IRS laws, to all U.S. councils during the month of February each year. For additional information refer to the Officers’ Desk Reference – Tax Issues section. Please email questions to tax.ein@kfoc.org.

Officers Online — Financial Secretary Section

The Officers Online website, accessed from the main Knights of Columbus webpage, provides you with access to your council’s membership roster and Council Billing Statement. Your access to this website is granted once your appointment is approved by the supreme knight. This site lets you keep track of your council’s progress for membership, which is useful information toward the earning of the Star Council Award.

In Officers Online, you will see a “Prospect” tab in which you can view Online Members who are “assigned” as prospects to your council. Once the council has gone through the admissions process, and the member has taken his exemplification, they can transfer him by simply adding the ceremonial date in the Ceremonial date section, and clicking the update button. Once the update is submitted, the member will be automatically transferred into his new council. The council will not need to submit a Form 100. If, for some reason, the Online Member is not going to transfer into the assigned council, the council may “reject” the member by clicking “reject” and selecting a reason from the drop-down menu. Rejecting an Online Member for transfer will result in the member reappearing in the “Unassigned” section of the state’s “Prospect” tab. A rejection will not trigger an email to state officers.

After signing into Officers Online, as financial secretary, you have the ability to order council supplies. Click on Supplies Online to view the materials available and place your order. Gift items are also available by clicking on the Knights Gear logo, which brings you to knightsgear.com. Through this website, your council can also order customized apparel (e.g. t-shirts with your council’s name and number).

Another resource available through Officers Online is the Officers’ Desk Reference. It provides answers to frequently asked questions about our name and emblem, home corporations, membership issues, tax issues, fraternal issues, council and assembly issues and social communications. There’s a very good chance that many of the questions you might have about some of the more challenging aspects of being a financial secretary have been dealt with here. Entries are regularly updated and expanded as new questions arise or additional information becomes available.

The Order’s accounting system and member database, Member Management/Member Billing, is also located in the Officers Online section of the Order’s website. This system allows you to manage financial transactions; create, edit and archive receipts, vouchers, assessments and adjustments; maintain a list of accounts and subaccounts, payee/payor lists and council defined sub-classes for billing (military, students, etc;), produce billing notices; and manage payments received from members.

Council Dues

The Laws of the Order set forth specific provisions regarding dues payable by each member. Dues shall be levied in advance in an amount as fixed by the council. The dues for all associated and insurance members shall be the same, except that councils at their discretion may fix a different rate of dues for certain members.

The Member Billing Application

The Member Billing application works in conjunction with the Member Management application.

Initial Setup for First-Time Users

If your council has just started to use Member Billing, there are a few steps that are required prior to generating an assessment.

Setting up your council’s billing information:

• Billing Information — Member Billing allows you to assess dues to members annually or semi-annually only. The billing schedule must be selected as calendar or fraternal year. Also, once the billing frequency has been established, the billing remittance address needs to be selected — either your council’s mailing address or the financial secretary’s mailing address.
• Class List — This screen is where the amount of the council’s dues is entered. (The amount of annual dues for honorary members in the council is based on the sum of state and Supreme Council per capita taxes and other levies. The annual dues for honorary life members is specified in the Laws of the Order and cannot be updated in Member Billing.)
• Subclass — Council subclasses can be created for members for whom the council wishes to reduce the dues amount. For example, a council may wish to waive or reduce dues for students. A subclass of students can be added, along with the rate of the reduced dues. Once established, members associated with a subclass will need to be assigned to the subclass on the member’s Billing Information screen, located in the Member Information section.
• Reason for Assessments — This is required if your council plans to assess members for any special or miscellaneous assessments. Reason for assessments can be added on the Event/Assessments screen in the council’s Billing Information screen.

Setting up the member’s billing information:

• Member Class — Displays the member as a regular, honorary, or honorary life member
• Sub Class — Members may be assigned as part of a sub class and eligible for reduced dues (military, student, etc.).
• Disability — Members that are on disability and noted as “Yes” on the member’s Billing Information screen, will not be assessed dues. Nothing else is required to ensure that they are not assessed.
• Do Not Assess — This provides the ability to not assess dues for members who may have a special circumstance, such as financial hardship, where the council decides not to assess dues for a certain period. (Honorary life or disabled members are not included in the dues assessment process, so this option does not need to be selected for these members.)
• Do Not Send Bill — This provides the option of not sending a billing notice to specified members for any reason. (The member will still be assessed, but a notice will not be generated.)
• Delivery Preference — This identifies the preferred method by which the member wishes to receive his billing notice — mail, email or both.
• Language Preference — This allows a billing notice to be generated in a different language.
• Billing Address Information — This section allows the financial secretary to update a member’s contact information, including his address, telephone number, fax number and email address. These changes will also be reflected in Member Management to alert the Membership Records Department at the Supreme Council Office.

Prior to generating the initial dues assessment, if there are members with an outstanding balance for previous billing periods, these records should be updated in the Member Ledger:

• Billing Status — When a dues assessment is processed from the Pending Assessment screen, the billing status for all members will be changed to “First Notice.” Former members that are listed in Member Management/Member Billing can be manually changed to “Prior” or “Deceased” status.
• Adjustments — The Adjustment section on the bottom of the Member Ledger screen can be used to generate a charge adjustment for members with an outstanding balance. Separate adjustments should be added if a member owes money for other assessments (initiation fee, miscellaneous fees, etc.). Payment of dues should NOT be recorded here, but through the “Dues Collection Tool” found under the “Receipts” section of the Council Ledger. (This is the same process as assessing new members for dues or initiation fees after they have been recorded at the Supreme Council Office and added to Member Management/Member Billing.)

Billing Members

A dues assessment can be generated for all billable members on the “Enter Dues Assessment” screen by clicking on “Assessments” under the Council Ledger section:

• Billing Cycle — Dues can be billed for the calendar year or the fraternal year. (The default for the billing period is predetermined by the billing frequency, which is selected in the “Billing Setup” section.)
• As of Date — All bills have a date that indicates how much is owed at the time the dues were assessed. Dues can be assessed in Member Billing as early as 60 days prior to the billing period. However, the “As of Date” cannot be set more than 15 days prior to the billing period. The date used for the “As of Date” when generating a dues assessment also should be used for any special or miscellaneous assessments.
• Assess Dues — This will place the dues assessment in a “pending” status, which can be processed on the “Pending Assessments” screen. All special or miscellaneous assessments should be assessed on the “Assess Other” screen before processing the dues assessment.

A special or miscellaneous assessment can be generated for selected members using the “Assess Other” screen under “Assessments” in the Council Ledger section.

• Charge To — This specifies who will be assessed the additional charge and is selected by member type. (“All Billable” will assess all regular and honorary members; “All Members” will assess all regular, honorary and honorary life members; “Honorary” will assess only honorary members; and “Honorary Life” will assess only honorary life members).
• Voluntary or Mandatory — If an assessment is a voluntary assessment, a notation will display on the member’s bill showing that this assessment is voluntary and payment is optional. Voluntary assessments require a valid “Through Date.” A valid “Through Date” should be selected well in advance of the last day of the billing cycle (i.e. if using a calendar year billing cycle, select a date of June 1 — well in advance of Dec. 31). After this date, you have the ability to initiate a process that will generate a credit transaction for all members that did not pay the voluntary assessment. Mandatory assessments will remain on the Member Ledger until the member pays the assessment or the transaction is voided on the Member Ledger.
• Reason for Assessment — This is a required field, and if the “Reason for Assessment” does not appear in the drop down list, it can be added on the Event/Reason screen under the Billing Information section.
• Assess Other — This will place any special and miscellaneous assessments in a pending status, which can be processed on the Pending Assessments screen. All special or miscellaneous assessments should be assessed on the “Assess Other” screen before processing the dues assessment.

All pending assessments can be posted to the Member Ledger from the “Pending Assessment” screen. When the “Process Assessment” is clicked, the billing status for all members will change to “First Notice.”

Generating Notices

Once the pending assessments are processed, the First Notice can be generated from the “Notices” section of the Print Center in Member Billing. (If the respective officers’ names or telephone numbers do not display on the Notice, the data can be added on the “Council/Assembly Officers — Current Year” screen in Member Management.)

Notices can be sent via email, or printed and mailed, based on delivery preferences on the member’s Billing Information screen. There is also an option to generate a file copy of all Notices to members.

Member Billing also provides the ability to email individual Notices to members who have been added to Member Management/Member Billing. Once the member delivery preference is set to email or both, an “Email Notice” icon will appear on the Member Ledger or member’s Billing Information screens.

Thirty days after the “As of” date, the financial secretary can update all members currently in the “First Notice” status to “Second Notice” status by using the “Update Status” screen under the Assessment section of the Council Ledger. Second Notices can then be generated and sent via email, or printed and mailed, based on the delivery preferences on the Member Billing Information screen. Second Notices can also be saved electronically.

At this point, the Financial Secretary will provide the contact information and amount due from each member in arrears to the Retention Committee for personal follow up.

Thirty days after the “As of” date of the Second Notice status, the Financial Secretary can update all delinquent members to “Knight Alert” status by using the “Update Status” screen under the Assessment section of the Council Ledger.

The Knight Alert letter sent to the member explains how his membership is in danger of being forfeited because of unpaid dues. The Knight Alert letter cannot be sent electronically because it requires the signature of the Grand Knight. Fifteen days after the “As of” date of the “Knight Alert” status, all members currently in “Knight Alert” status can be updated to “Intent to Retain” status by using the “Update Status” screen under the Assessment section of the Council Ledger. A Notice of Intent to Retain can be generated in the Billing section of the Print Center, informing the member that his delinquency has put his membership in jeopardy. Copies of the Notice of Intent to Retain (#1845A) must be mailed or emailed to the Supreme Council. Sixty days after the Notice of Intent to Retain has been filed, a Form 100 marked for suspension will be required to be filed at the Supreme Council to remove a member from the council’s roster.

Individuals who have been assessed for the current billing period, but have become former members, will have their balances removed on the Member Ledger screens.

Temporary Billing Procedures

These revised billing procedures apply only to councils that previously participated in the Affiliate Member Initiative (AMI). They are needed because the AMI significantly changes the handling of members who are delinquent in their payment of dues. Financial Secretaries should use the Member Management and Member Billing applications, located in the secure Officers Online area of www.kofc.org, to perform the tasks listed in this section.

1.  The Financial Secretary forwards the membership bill “First Notice” 15 days before the billing period to each member.
2. If payment is not received in 30 days, the Financial Secretary will forward the membership bill “Second Notice”.
3. If payment is not received within 30 days from the date the “Second Notice” was sent, do not update billing status to Knight Alert. The Financial Secretary will instead provide the names, addresses, telephone numbers, email address, amounts due, and proposer information for each member in arrears to an Engagement Committee that should include a Chairman and two additional members.
4. The Engagement Committee Chairman shall assign committee members to contact the members in arrears. Committee members should use various methods, including internet search engines, to locate members whose contact information is out of date. If a member is found to be experiencing financial difficulty, the Engagement Committee Chairman should recommend to the Grand Knight and Trustees that forgiveness of dues or other suitable financial arrangements be made to assist this member. If a member has disengaged himself from council activities or become dissatisfied with his Knights of Columbus membership, the committee member should remind the Brother of the many valuable benefits available to all members and the particular fraternal benefits of working with local council Brothers. A supply of membership benefit reference materials should be readily available for committee members to share as needed.
5. Within 30 days of receiving the list of members in arrears, the Engagement Committee Chairman shall submit to the Grand Knight and Trustees a report including the reasons for nonpayment and their recommended actions for each listed member.
6. Within 15 days of receiving the Engagement Committee report, the Grand Knight shall meet with the Financial Secretary and Trustees to decide on a course of action for each member. These actions may include, but are not limited to:
   • Issuing a “Final Notice” to members who wish to remain in the council and gave no reason for nonpayment. The Financial Secretary can regenerate another “Second Notice” from Member Billing to serve as this “Final Notice.”
   • Waiving the dues for members in financial distress.
   • Reducing the dues or allowing alternate payment plans for members in financial distress.
   • Processing the withdrawal of members who request to leave the Order.
   • Processing members who meet the requirements for designation as Affiliate Members in the state division. Lists of these members should be submitted through a council’s district deputy and received by the Supreme Council no later than the last day of the billing cycle.
7. No further billing actions are required.

NOTE: Suspension transactions are reserved for Summary Suspension for Cause and Board actions.

Examples of Billing Dates

Calendar Year Billing Example

• 1st Notice sent to member on December 15th
• 2nd Notice sent to member on January 15th
• Retention Committee contacts those members in arrears after January 15th
• Knight Alert Letter sent February 15th
• Notice of Intent to Retain sent March 1st
• File a Form #100 with the Supreme Council on May 1st but no later than June 1st

Fraternal Year Billing Example

• 1st Notice sent to member on June 15th
• 2nd Notice sent to member on July 15th
• Retention Committee contacts those members in arrears after July 15th
• Knight Alert Letter sent August 15th
• Notice of Intent to Retain sent September 1st
• File a Form #100 with the Supreme Council on November 1st but no later than December 1st

Processing Payments from Members

Under the “Receipt” section of the Council Ledger, there is a “Dues Collection Tool” to record members’ payments. The “Dues Collection Tool” is used if the member pays his outstanding balance in full.

If a member does not pay the full amount or includes a donation to the council or special fund, the payment should be recorded on the “Enter Receipt” screen to ensure that the proper accounts/sub-accounts are recorded properly. If his payment includes money for a special or miscellaneous assessment, a “Reason for Assessment” must be entered in the “Event” field.

Once the “Save” button is clicked on the “Dues Collection Tool” screen or the “Enter Receipt” screen, this will place the transaction in “pending” status. Pending transactions can be processed on the “Pending Receipt” screen.

A “Report of Receipts” is available under the Treasurer Reports in the Print Center of Member Billing. There are four reports available: two for pending receipts and two for posted receipts. (Posted receipt reports will display signature lines for the financial secretary and treasurer, which serve as a record that the treasurer received these moneys. If the treasurer’s name does not display on this report, add his data on the “Council Officers — Current Year” screen in Member Management.)

Processing Receipts From Other Sources

These moneys can be recorded in Member Billing using the “Enter Receipt” screen under the Council Ledger.

• Member or Payor — Prior to entering the receipt information, you must search for a member or a payor. (A payor is an individual or entity that is not a member of the council. A payor can be added to Member Billing on the “Add a Payee/Payor” screen under Billing Information).

Once a search has been conducted, the results will appear in the “Search Results” box to the right. Click on the desired member or payor so that it is highlighted in a blue banner. Click the “Select” button to populate the date and member/payor in the “Enter Receipt” section on the bottom of the screen. Continue to enter the remaining information.

Once the “Save” button is clicked, the transaction is placed in “Pending” status. Pending transactions can be processed on the “Pending Receipts” screen. The posted date will be the date the Process buttton is ‘clicked’.

Generating Membership Cards

Membership cards can be generated for members using the “Membership Card” section of the Print Center in Member Billing. Print membership cards using the “By Member Type” feature, thereby having these cards ready for presentation when the member remits his payment for dues.

Membership Card (#4817) stock paper can be ordered through Supplies Online. (Cards come eight to a sheet with 25 sheets to a package, for a total of 200 cards.) There are four options in Member Billing for printing membership cards:

• By Member Type — which can be classified as: All Billable, All Members, Regular, Honorary, Honorary Life, or Exempted and Disabled Members
• By all members whose dues became current between specified dates
• By Ceremonial Dates
• Use the Membership Card Template for a small group of members or for new members who have not been added to Member Billing

Institution of Payment

A Supreme Council or state council obligation DOES NOT require council approval. Receipt of the monthly Council Statement from the Supreme Council office serves as the official notice that the amount owed is due and payable. The same is true of a billing statement received from the state council.

When the council approves any bill other than a Supreme Council or state council assessment, the bill must be turned over to the financial secretary. He then issues the Voucher (Order on Treasurer).

Vouchers (Order on Treasurer)

After a bill has been properly approved for payment, the financial secretary initiates issuance of a check by generating a voucher in Member Billing under the “Voucher” section of the Council Ledger. He then prints a “Report of Vouchers” for the grand knight’s signature, which authorizes the treasurer to issue the check. Councils may also maintain a credit/debit card for payment of expenses.

Trustees, when conducting the semiannual audit, should compare the Report of Vouchers to the checks issued that are recorded in the bank statement and check book, and against the credit/debit card statements.

Council Credit/Debit Cards

A council may, by motion of a majority of its members and with the approval of the board of trustees, hold a credit and/or debit card in its own name and authorize the grand knight, financial secretary, and treasurer (“the cardholders”) to use the card to pay council related expenses, provided that the council follows the rules stated below to ensure accountability and transparency. The guidance contained in this entry applies also to assemblies and the corresponding officers (faithful navigator, faithful purser, faithful comptroller, and trustees).

Rules for Councils Holding Credit/Debit
Cards Obtaining and Issuing Cards

The council is responsible for obtaining any credit/debit cards for its cardholders and establishing the credit or withdrawal limits for each card. The treasurer shall issue the credit/debit cards to each cardholder. The credit/debit card is the property of the council. Prior to receiving a card, each cardholder is required to sign the “Cardholder Agreement” (“Agreement”) found below and send the executed Agreement to the Financial Secretary. Any cardholders who violate the Agreement, these rules, or the Order’s rules for handling funds shall have their card privileges revoked and may be subject to disciplinary action.

Upon receiving a card, the cardholder shall activate the card immediately and sign the back of the card. Once the card is activated, the cardholder should notify the other cardholders in writing that he has activated his card.

Types of Expenses

Council credit/debit cards shall only be used to pay for council-related expenses. Personal purchases of any type are strictly prohibited. The cardholder is responsible for all charges made on that card that is issued to him. The cardholder will be held liable for any unauthorized charges appearing on the card statement. All council expenditures must be authorized and approved for payment in accordance with the Laws of the Order. Any expenditures that exceed $500 must be approved in accordance with the requirements set forth within Sec. 122(b) of the Laws of the Order.

Requirement to Obtain Alert Notifications

If the company that issued the card offers cardholders the option to receive alert notifications, the council is required to instruct the card company to issue alert notifications to each cardholder.

Procedures for Using a Credit/Debit Card

Before any purchase or payment is made, the cardholder must confirm that the expenditure has been authorized and approved by the council and a voucher (also known as an Order on Treasurer or a Warrant Voucher) has been issued by the financial secretary and countersigned by the grand knight in compliance with the Laws of the Order.

The cardholder must obtain a receipt for each payment or purchase. The receipt should include a brief description of the item that has been purchased or the service that has been performed.

The cardholder shall send the receipt to the financial secretary.

Councils must keep records of all credit/debit transactions on books approved by the Knights of Columbus.

Card Statements

All credit/debit card statements must be delivered to the financial secretary. Upon receiving the statement, the financial secretary shall attach the receipts he has received from each cardholder to the statement showing the purchase or payment, and then he shall send a brief summary of the transactions to the board of trustees for its review. Cardholders who fail to submit a receipt for any payments or purchases made on their card will be responsible for the particular payment or purchase.

Lost or Stolen Cards

In the event a card is lost or stolen, the cardholder must immediately notify the card company and the council’s treasurer. Upon receiving notice of a lost or stolen card, the treasurer shall immediately notify the other cardholders and the council officers.

Log-in Credentials

Online credit/debit card account access shall be given to the Grand Knight, Financial Secretary, Treasurer, and Board of Trustees. At the start of the fraternal year, the log-in password shall be changed and the Grand Knight, Financial Secretary, Treasurer, and Board of Trustees shall agree on a secure password and keep it confidential.

When a Cardholder Leaves

Office Upon leaving office, a cardholder must surrender his card to the council’s Treasurer who will then instruct the card company to cancel the cardholder’s account.

Suspension of Council

The financial secretary should be aware of the need to make payments to the Supreme Council within the time limits allowed under Section 156 of the Laws of the Order. Failure to make payment within the time limit will result in suspension of the council. When a council is suspended, the board of directors requires the supreme secretary to send a Notice of Suspension to the grand knight, with copies to the district deputy and state deputy.

Section 156 provides for a grace period of 100 days for each levy from the first of the month in which the levy is made. The assessment dates and the dates on which they become in arrears are as follows:

Levy Date         Type of Levy               Pay by 
January 1         Per Capita                 April 10 
                  Catholic Adv/COL    
July 1            Per Capita                 October 10 
                  Catholic Adv./COL

A council is automatically suspended whenever there is an arrearage of $50 or more in any of the above accounts.

Even though the council has a 100-day grace period to remit payments, automatic notices to the grand knight, financial secretary and district deputy will be generated between 58 and 60 days of the date of the assessment. This notice is a reminder to remit the council’s payment in order to avoid automatic suspension.

A council may have its suspension lifted by making payment in the amount of the arrears. When a council is to be reinstated, a Notice of Reinstatement is sent to the aforementioned officers.

Record Retention

It is recommended that the following council records be retained as follows:

• Current member Membership Document (#100) (new members, re-entry transactions for members who did not join through your council originally): 7 years retention
• Current member Membership Document (#100) (all except above and data changes): 3 years retention
• Current member Membership Document (#100) (data changes): verify processing of information at the Supreme Council Office, then destroy
• Former member Membership Document (#100) (all transactions): verify processing of information at the Supreme Council Office, then destroy
• Financial and business records (e.g. bank statements, contracts, purchase orders, invoices, etc.): 10 years retention
• Tax forms: 7 years minimum, 10 years recommended retention

In all cases, tax ID numbers — including the last four digits — must be removed.

Report of Officer Elections

As financial secretary, you are responsible for completing and submitting the Report of Officers Chosen for the Term (#185). Under the Laws of the Order, elections for council officers shall be held between May 1 and June 15 of each year (college councils — March 1 to June 1). Those duly elected officers are to be reported to the Supreme Council Office by June 30.

The preferred method of reporting the newly elected council officers is through the Member Management application located on the Knights of Columbus website in the Officers Online section. If reporting through Member Management prior to July 1, make sure you are on the “Next Fraternal Year” screen and simply follow the instructions included on the site for completing the form. There is no need to file a paper report with the Supreme Council Office after using this method of reporting the newly elected officers.

Monthly Statement

As financial secretary, you should have an understanding of the effect of reported membership transactions on per capita, Catholic advertising and the Culture of Life levies and with the charges accrued by your council for supply orders. The council statement, available monthly in Officers Online, provides this information. It reflects changes in membership and reports information on your council’s financial obligations to the Supreme Council.

• The council billing statement should be retained by you as part of your permanent files. It also should be reviewed by the grand knight and read at the next council meeting.
• The account balances – per capita, Catholic advertising, Culture of Life and supplies – should be treated as individual amounts owed by your council. Credit balances often appear in the per capita and Catholic advertising columns because of inactive insurance member credits, back-dated transactions and miscellaneous adjustments. These credits may cause an overall credit balance in the account. Credit balances in the per capita and Catholic advertising/Culture of Life columns will automatically transfer between accounts to offset charges.
• Councils are assessed $1.75 for per capita, $.50 for Catholic advertising each Jan. 1 and July 1 on the total membership in the council, including inactive and honorary members. Honorary life and members on disability are excluded from the assessment.
• Councils are assessed $1.00 for the Culture of Life fund each Jan. 1 and July 1. Honorary, honorary life, inactive members and members on disability are excluded from this assessment.

Member Data Change

Changes in personal, contact (including email address), or membership information should be made electronically by using the Member Management application. Once updated in Member Management, there is no need to send information to the Supreme Council in paper format. By maintaining correct contact information — especially email addresses — allows for the uninterrupted flow of information from the Supreme and state councils to each member. Financial secretaries are highly encouraged to ensure that member contact information is updated on a yearly basis.

Death of a Member

A member’s death can be reported in Member Management on the member’s Personal Information screen. Note that the next of kin information can only be reported if the date of death is on file in Member Management.

Honorary and Honorary Life Membership

Honorary Membership

Members who have attained the actual age of 65 years and who have been members of the Order for 25 consecutive years shall be designated as honorary members. If the 25 years of continuous service is calculated from the last date of entry, the award is automatic. If 25 years of unbroken service was achieved prior to a suspension or withdrawal transaction, the distinction must be requested by contacting the Department of Membership Records.

The honorary membership distinction includes a plastic membership card that is sent to the member. The honorary member is exempt from general fund charges, except payment of an amount equal to the sum of Supreme Council assessments and the annual levies of your state council. Because of this annual payment requirement, a paper membership card must be issued by the financial secretary on a yearly basis. The honorary member must present that paper card to gain access to Knights of Columbus functions.

Honorary Life Membership

Members who have attained the actual age of 70 years and who have been members of the Order for 25 consecutive years, and those who have been members of the Order for 50 consecutive years, regardless of age, shall be designated as honorary life members. If the required years of continuous service are calculated from the last date of entry, the award is automatic. If the required years were achieved prior to a suspension or withdrawal transaction, the distinction must be requested by contacting the Department of Membership Records.

Honorary Life members are exempt from further payment of dues, per capita charges and assessments. No Supreme or state council assessments are levied against them. All priests and religious brothers who have taken their final or perpetual vows are automatically designated as honorary life members upon participating in their first ceremonial. However, this status is not awarded to permanent deacons or seminarians unless they meet the requirements based on age and years of service. The Honorary Life membership distinction includes a plastic membership card that is sent to the member.

An honorary life member cannot be suspended for nonpayment. He can, however, request a withdrawal or be suspended for cause. In such case, you must request that he relinquish his plastic honorary life card. As long as the honorary or honorary life member is in good standing, the financial secretary continues to issue an embossed paper “travel card” to the member.

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