Policy Number:  26

Title:  Accountable Reimbursement Policy, Dean’s Expenses

General Policy

1. Any regional dean now or hereafter serving in The Diocese of South Dakota shall be reimbursed travel expenses and out-of-pocket expenses for any ordinary and necessary business expenses, up to a limit of $1,200.00 annually, if the following conditions are satisfied: (1) the dean documents the total miles, date, place, and business purpose of each trip; (2) the dean documents such travel by providing the accounting officer with an accounting of such travel by the 20^th day of the month; and (3) the dean submits all appropriate receipts of funds expended.

2. Out-of-pocket expenses include telephone, postage, office supplies, and any other normal expenses necessary for the office of the dean.

3. Reimbursements shall be paid from diocesan budget funds, and not by reducing salaries by the amount of expense reimbursements.

4. Reimbursable travel expenses include business miles reimbursed at a rate of $.25 per mile.

5. The Diocese of South Dakota shall not include in a dean's W-2 form the amount of any travel or business expense properly substantiated and reimbursed according to the preceding paragraph, and the dean shall not report the amount of any such reimbursement as income on Form 1040.

6. If, for any reason, the diocesan reimbursements are less than the amount of business and professional travel properly substantiated by a priest, the diocese will report no part of the reimbursements on the priest's W-2, and the priest may deduct the unreimbursed travel expenses as allowed by law.

7. Under no circumstances will the diocese reimburse a dean for business or professional travel on behalf of the diocese that is not properly substantiated according to this policy. The diocese and regional deans understand that this requirement is necessary to prevent our reimbursement plan from being classified as a "nonaccountable" plan.

8. All documents and travel reports used by the dean to substantiate the business nature and travel incurred on behalf of the diocese shall be retained by the diocese.

Policy Concerning Non-Parochial Deans

Because non-parochial deans do not have the support of a local congregation and church office, they are entitled to the following in addition to the above:

1. Reimbursement for expenses associated with attendance at Diocesan Convention, Niobrara Convocation, clergy conferences, and the annual pre-Lenten clergy retreat.

2. The cost of one telephone line and service for deanery business.

Additional Information

1. Income tax regulations provide that an employee need not report on his or her tax return, expenses paid or incurred for the benefit of his or her employer for which he or she is required to account and does account to his or her employer and which are charged directly or indirectly to the employer

2. Income tax regulations further provide that an adequate accounting means the submission to the employer of an account book, diary, statement of expense, or similar record maintained by the employee in which the information as to each element of expenditure (amount, time and place, business purpose and business relationship) is recorded at or near the time of the expenditure, in a manner which conforms to all the adequate records requirements set forth in the regulation.