Leadership ResourcesPractical Information for Grand Knights, District Deputies and Financial Secretaries

Table oF ConTenTS

General Section Knights of Columbus Organizational Chart ............. 2 Supreme Council Headquarters Contact Directory ..................................................... 3 Forms and Reports ......................................................... 3 Qualifications for Membership .................................... 4 Initiation Fees and Council Dues................................ 4 Star Council award ....................................................... 5 Father McGivney Award................................ 5 Founders’ Award ............................................. 5 Columbian Award............................................ 5 other awards ................................................................. 6 International Service Award ......................... 6 Contest of Champions Award...................... 6 District awards ............................................................... 6 New Council Award........................................ 6 Star District Award .......................................... 6 All Star District Award .................................... 6 Investments...................................................................... 6 Duties of Council officers ........................................... 8 Chaplain ............................................................. 8 Grand Knight..................................................... 8 Deputy Grand Knight ...................................... 8 Chancellor ......................................................... 8 Financial Secretary.......................................... 8 Recorder ............................................................ 9 Treasurer............................................................ 9 Lecturer .............................................................. 9 Advocate............................................................ 9 Warden ............................................................... 9 Inside/Outside Guards ................................... 9 Board of Trustees ............................................ 9 Membership Director...................................... 9 Program Director ............................................. 9 Faith Director ................................................. 10 Family Director............................................... 10 Community Director ..................................... 10 Life Director .................................................... 10 Protocol .......................................................................... 10Grand Knight Section Introduction .................................................................... 11 Council Audit ................................................................. 11 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 ............................................. 19

Standing Council Committees................................... 20 Admission Committee ................................. 20 Recruitment Committee............................... 20 Retention Committee ................................... 21 Council By-laws............................................................. 21 Ceremonial Guidelines ............................................... 21 Financial Secretary Evaluation.................................. 22

District Deputy Section Introduction .................................................................... 23 Ceremonial Work Within Your District ..................... 23 District Deputy Expense Form .................................. 23 Official Council Visits ................................................... 23 New Council Development........................................ 24 Council Reactivation .................................................... 24 Council Retention ......................................................... 24 District Meetings ........................................................... 25 Strategy Sessions ......................................................... 25 Officers Online — District Deputy Section ............. 26 Miscellaneous — District Deputy Section .............. 26Financial Secretary Section Introduction .................................................................... 27 Financial Secretary Compensation .......................... 27 Income Tax Requirements.......................................... 28 Bonding ........................................................................... 28 Annual Federal Information Return — Form 990 (U.S. Councils) ........................................................ 28 Officers Online — Financial Secretary Section ..... 29 The Member Billing Application ............................... 29 Initial Setup for First-Time Users .............................. 29 Billing Members ............................................................ 31 Generating Notices ...................................................... 32 Examples of Billing Dates........................................... 33 Processing Payments from Members ..................... 33 Processing Receipts from Other Sources .............. 33 Generating Membership Cards ................................ 33 Institution of Payment.................................................. 34 Order on Treasurer (Vouchers) ................................. 34 Suspension of Council ................................................ 34 Record Retention .......................................................... 34 Report of Officer Elections ......................................... 35 Monthly Statement ....................................................... 35 Member Data Change................................................. 36 Death of a Member ...................................................... 36

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Chaplain

Financial Secretary

Membership Director

Program Director

Faith Director

Family Director

Community Director

life Director

lecturer

Knights of ColumbusoRGanIZaTIonal CHaRT

SUPReMe CoUnCIlState 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 CoUnCIlGrand Knights, Immediate Past Grand Knights, State officers and last living Past State Deputy

DISTRICT DePUTY

aSSIGneD CoUnCIlS   CHaPTeRS

Deputy Grand Knight

Chancellor

Recorder

Treasurer

advocate

Warden

Guards

Trustees

Grand Knight

elected

appointed

GeneRal SeCTIon

SUPReMe CoUnCIl HeaDQUaRTeRS ConTaCT DIReCToRY

Main Number .....................................................203-752-4000Customer Service .........................................1-800-380-9995KnightsGear....................................................1-855-432-7562 knightsgear@kofc.orgSupplies Online ..............................................1-833-591-7770 customersupport@webbmason.com

Fraternal Mission...............................................203-752-4270 fraternalmission@kofc.orgCatholic Information Service .........................203-752-4574 cis@kofc.orgCeremonials .......................................................203-752-4346 ceremonials@kofc.orgChaplains Programs and Development .....203-752-4267 chaplains@kofc.orgColumbia Magazine .........................................203-752-4398 columbia@kofc.orgCouncil Accounts .............................................203-752-4392 council.accounts@kofc.orgFinancial Secretary Appointments ...............203-752-4285 financial.secretary@kofc.orgMembership Growth ........................................203-752-4473 councilgrowth@kofc.orgMembership Records.......................................203-752-4210 membership@kofc.orgMember Management/Member Billing .......203-752-4210 expertfs@kofc.orgScholarships.......................................................203-752-4332 scholarships@kofc.orgFor general inquiries, email.....................................................................info@kofc.org

FoRMS anD RePoRTSDue Date Form/ReportJune 30 Report of Chosen Officers for the Term (#185) OR the Officers Screen on Member ManagementAugust 1 Service Program Personnel Report (#365)* OR the Service Personnel Screen on Member ManagementAugust 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 councilMonthly Exemplification Report (#450)Monthly Family of the Month (#1993)

* Indicates Star Council Award Requirement

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QUalIFICaTIonS FoRMeMbeRSHIP

The qualifications for Knights of Columbusmembership, as contained in Section 101 of theLaws of the Order, are:

l Only practical Catholics in union with the Holy See shall be eligible and entitled tocontinue membership in the Order.

l An applicant for membership shall not be less than 18 years of age on his lastbirthday.

PRaCTICal CaTHolIC GUIDelIneS

Guidelines have been established to assist indetermining the practical Catholicity of anapplicant or member. These guidelines will assistthe grand knight in performing his duties whenserving on the council’s admission committee.These guidelines include:

l A practical Catholic accepts the teachingauthority of the Catholic Church on mattersof faith and morals, aspires to live inaccordance with the precepts of theCatholic Church, and is in good standingwith the Catholic Church.

l A practical Catholic strives to have agreater knowledge of the teaching ofChrist and his Church, and to accept,respect and defend the Church’s authority(vested in the Supreme Pontiff, thehierarchy and clergy united with him) toteach, govern and sanctify the faithful.

l A practical Catholic gives material and moralsupport to the Church and her works on alllevels, promoting the programs of the parishand diocese and coming to the aid of themissions, the needy and the under -privileged; supports and advances the justcauses of minority groups; endeavors toeliminate unjust discrimination, prejudice,etc.; and supports the Church in herdefense of marriage and family life.

InITIaTIon FeeS anD CoUnCIlDUeS

The Laws of the Order prescribe that the initiationfee shall be fixed by the council, provided,however, no initiation fee shall be required of anypriest or member of a religious community whoapplies for membership. The rules also providethat for those entering under 26 years of age, theinitiation fee shall not exceed $10. In cases ofJuvenile to Adult transactions, the maximuminitiation fee is $5, provided application is madeprior to the applicant’s 19th birthday.

The Laws of the Order set forth specific provisionsregarding dues payable by each member. Duesshall be levied in advance in an amount as fixedby the council. The dues for all associated andinsurance members shall be the same, and theymust not be less than $5 per year. However,councils may fix a different rate of dues forinsured members under 26 years of age, but thesame shall not be less than $3 per year.

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If questions regarding the practicalCatholicity of an applicant or member arise, the pastor of the applicant or member should be consulted before any action is taken.

STaR CoUnCIl aWaRDIn order for your council to earn the Star CouncilAward, it must:

l Earn the Father McGivney award formembership growth;

l Earn the Founders’ award for insurancegrowth;

l Earn the Columbian award for well-rounded council programs by submitting the Columbian Award Application (#SP-7);

l Submit the Service Program PersonnelReport (#365);

l Submit the Annual Survey of FraternalActivity (#1728); and

l Remain in good standing with the Supreme Council (including youthprotection compliance)(In the U.S. and Canada, this includesbeing fully compliant with applicable Safeenvironment requirements.)

The Father McGivney award recognizesexcellence in council membership growth. Each year, your council is assigned a membershipquota from the Supreme Council. For the award,growth is considered to be net increase overlosses through suspension or withdrawal. Deathsdo not count against your quota, and transfers inor out of your council do not count for or againstyour quota. Your council quota can be foundunder the Membership tab in Officers Online,which is updated daily. Eligibility for the FatherMcGivney Award is automatically determined bythe Supreme Council and there is no application.

The Founders’ award recognizes excellence in the promotion of our insurance and fraternalbenefits. The 2020-2021 Fraternal Year introducesa new method for achieving the Founders' Award.Councils can now fulfill all requirements towardsthis award by hosting two Fraternal BenefitSeminars. These events are coordinated inconjunction with your local field agent who willreport your council's participation to the SupremeCouncil. There is no application for the Founders’Award as eligibility is automatically determined bythe Supreme Council.

The Columbian award recognizes your council’scharitable service activities and fraternal programs.In order to earn the Columbian Award, your councilmust earn four program credits in each of the fourcategories of the Faith in Action program model, fora total of 16 program credits. Programs conductedby your council, whether they be Supreme Council-sponsored programs or unique activitiescoordinated locally, count for one program credit.Additionally, half of the Faith in Action programs areFeatured Programs. Featured Programs count astwo program credits towards the ColumbianAward.The following is a list of Faith in ActionFeatured Programs:

When your council conducts one of the abovefeatured programs and fulfills its requirements, itwill receive two credits for that particular programcategory.

For more information about Faith in Action andColum bian Award requirements, visitkofc.org/faithinaction.

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FAITH COMMUNITYRSVP Coats for Kids Into the Breach Global Wheelchair MissionSpiritual Reflection Habitat for Humanity Holy Hour Leave No Neighbor BehindFAMILY LIFEFood for Families March for Life Family of the Month/Year Special OlympicsFamily Fully Alive Ultrasound Program Family Prayer Night Pregnancy Center Support

oTHeR aWaRDS

l The International Service award ispresented to councils for the bestprograms conducted in the areas of Faith,Community, Family, and Life activities. The international winners are selected from the winning entries submitted by each jurisdiction. The first place winnersare recognized at the annual SupremeCouncil Convention. To be considered for the award, complete and submit theState Council Service Program AwardsEntry Form (#STSP). The form, along withsupporting materials (newspaper articles,photographs, etc.), should be submitted to your state council.

DISTRICT aWaRDS

The new Council award is presented to thosedistrict deputies responsible for the developmentof a new council.

The Star District award is presented to thosedistrict deputies whose district excels in the areas of membership growth, insurance growth,programming, and overall excellence.

To earn the Star District Award, the followingrequirements must be completed:

l Founders Award earned by every councilin the District

l Reach 70% of combined council growthquotas

l At least one council in the district earns theStar Council Award

l For each council in your district, submit twoDistrict Deputy Semiannual Reports (#944)– Due 12/31 & 6/30

The all Star District award is presented to thosedistrict deputies who attain the Star District Awardand have all of their active councils earn the StarCouncil Award. Must have a minimum of threeactive councils to be All Star and only available ininsurance territories.

InveSTMenTS

In order to accomplish the charitable mission ofthe Knights of Columbus, councils routinely raisemoney, which can then be donated to worthycauses. This mission also calls our members tobecome personally involved in fundraising andcharitable activities.

Although some councils maintain a large bankaccount or investment portfolio, we recommendthat councils conduct their financial affairs andcharitable giving so that accumulated generalfunds do not exceed $10,000. Larger and moreactive councils may maintain a larger balance inorder to cover the expenses for their activities.Also, some councils may exceed therecommended $10,000 cap because of specialcircumstances, such as the receipt of a restrictedlegacy gift or proceeds from the sale of homecorporation property.

The recommended $10,000 cap on a council’sgeneral fund is intended to avoid commonproblems associated with the accumulation andinvestment of money. For example:

l Investing and managing funds frequentlycauses discord and dissension amongmembers who may disagree aboutinvestment decisions.

l Conflicts of interest frequently arise whenmembers (or friends/relatives of members)in the investment business seek to managethe funds.

l The accumulation of large sums of moneymay lead members to handle those fundsunwisely, despite their good intentions.

l Having access to a large amount of fundsmay be a temptation to self-dealing on thepart of some members.

Councils are authorized to receive funds into theirgeneral account in the course of ordinary fraternaland charitable activities. To the extent that thesefunds are not immediately disbursed fornecessary expenses and charitable donations,

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they may be held in other bank and investmentaccounts. However, councils should never investor hold funds in brokerage accounts, stocks,annuities, non-Catholic mutual funds (other thangovernment money market mutual funds), bonds,or other investments, such as gold, silver orplatinum. Except under the special circumstancesdescribed above, the Supreme Council does notadvise, encourage, recommend, or permitcouncils to invest or hold funds in any type ofaccount other than the following:

l Ordinary short term certificates of deposit l Simple savings accounts l Simple checking accounts l Simple money market accounts l Government money market mutual funds l Knights of Columbus Mutual Funds

For example, councils may choose to place fundsin excess of $10,000 in a short-term certificate ofdeposit while waiting to disburse the excess fundsfor an intended purpose. It is also acceptable for acouncil to hold excess funds in a certificate ofdeposit as a reserve to cover a known expense orliability that is coming due in the future. The fundsshould be held under the name and TaxIdentification Number of the council, and only theofficers identified in the bylaws may have accessto the account. The financial officers and trusteesare responsible for keeping the membersinformed of where the funds are deposited. Aprogram or committee chairman may never mixKnights of Columbus funds with personal funds.

In the event that a council receives proceeds fromthe sale of home corporation property, the councilis encouraged to honor the legacy of the brotherKnights who acquired and maintained theproperty over the long term. This can be done byinvesting in a diversified portfolio of Catholicvalues investments (e.g., Knights of ColumbusMutual Funds) to pursue ongoing charitablesupport in the name of the council.

Councils should not create charitable trusts.These types of trusts pose several challenges andrisks, including:

l Reputational risk to the Order if theinvestments profit from activitiesinconsistent with Catholic teaching.

l Long-term commitment by members toselect an appropriate investment advisorand manage the principal.

l Risk that successor trustees may not honorthe original intention of the trust or havesufficient experience and expertise tocontinue the investment program.

l Separate tax-filing obligations, if the trust isformed as a separate entity, which isusually the case.

l Substantial legal obligations and risks forfailure to comply.

Rather than forming charitable trusts, councilsmay consider other ways to distribute funds,including:

l A donor-advised fund established withKnights of Columbus Charitable Fund in thename of the council

l State council charitable foundations l Local Catholic schools l Other local faith-based organizations

Any individual member who expresses an interestin making a donation to an organization thatpromotes faith-based initiatives should beencouraged to give to a donor-advised fund withKnights of Columbus Charitable Fund, his statecouncil’s foundation, or to the Supreme Council’sUnited in Charity program. These donations areeligible for a tax deduction. Donations to a councilare not tax deductible.

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DUTIeS oF CoUnCIl oFFICeRSChaplain 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, ashis 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 localservice organizations (ie. food pantries,soup kitchens)

Deputy Grand Knight l Assists the grand knight with operation of

the council and any other duties assignedto him by the grand knight

l In the absence of the grand knight,presides at council meetings

l Recommended to serve on the council’sRetention Committee

Chancellor l Has the duty of strengthening the

members’ interest in council activities l Assists the grand knight and deputy grand

knight with their duties as assigned l Recommended to serve on the council’s

Admission Committee

Financial Secretary l Upon recommendation of the grand knight

and the trustees, the financial secretary isappointed for a three-year term that isapproved by the supreme knight

l The prospective financial secretary must also complete and submit the Applicationfor Appointment as Financial Secretary(#FS-101)

l Under Section 130 of the Laws of theOrder, the financial secretary isautomatically bonded in the amount of$5,000. Additional bonding may beprovided at a cost of $7 per thousand bycontacting the supreme secretary’s office

l Collects money, in the form of dues, frommembers. Responsible for sending billingnotices and initiating retention measuresby providing a list of delinquent membersto the grand knight to prevent membersfrom being suspended for nonpayment of dues

l Ensures that the council membershiprecords are updated and that newmembers sign the constitutional roll

l Receives from the Supreme CouncilHeadquarters honorary and honorary lifemembership cards for distribution toqualified members

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l Files various reports and membership/insurance transactions with the SupremeCouncil Headquarters

l Responsible for completing and submittingthe proper 990 for the council (U.S. only)

l Keeps the seal of the council and affixesthe same to membership cards, resolutionsand other official documents as necessary

Recorder l Responsible for keeping and maintaining a

true and permanent record of all actions ofthe council and maintains allcorrespondence of the council

Treasurer l Handles council funds l Receives money from financial secretary

and deposits it in the proper councilaccounts

l Responsible for paying all councilexpenses, including assessments from the Supreme Council

l Under Section 130 of the Laws of theOrder, the treasurer is automaticallybonded in the amount of $5,000 whenreported on the Election of Officers form(#185). Additional bonding may beprovided at a cost of $7 per thousand bycontacting the supreme secretary’s office

lecturer l Appointed by the grand knight l Responsible for providing suitable

educational and entertaining programsunder the “Good of the Order” section ofcouncil meetings

advocate l Acts as parliamentarian for the council l Should have a working knowledge of

Robert’s Rules of Order, Charter,Constitution & Laws, council by-laws, andparliamentary procedure

l When needed, will seek legal assistancefrom the state advocate

Warden l Responsible for supervising and

maintaining all council property

l Sets up council chambers for meetings andexemplifications

l Oversees inside and outside guards

Inside/outside Guards l Attend the doors of the council chamber,

checking for current membership cardsand allowing entrance

board of Trustees l Consists of grand knight and three other

elected members l Supervises all financial business of the

council and conducts the semiannual audits l Trustees are elected for terms of three

years. At the first election of a new council,three trustees shall be elected, one to holdoffice for one year or until the next regularelection, one for two years or until thesecond next regular election, and the otherfor three years or until the third nextregular election, as determined by lotamong themselves. Thereafter, at eachsucceeding election, one Trustee shall bechosen for a term of three years

Membership Director l Appointed by the grand knight l Collaborates with the grand knight and

council leaders on council membershipgoals for the year

l Manages the Recruitment Committee,Retention Committee and InsurancePromotion Committee chairmen as theyimplement the council’s membershipactivities

l Plans and coordinates the council’sschedule of recruitment programs

l Ensures that Membership Applications(#100) are transmitted by the FinancialSecretary to both the Membership RecordsDepartment at the Supreme Council andthe general agent

Program Director l Appointed by the grand knight l Collaborates with the grand knight in

setting the calendar of council programsfor the year

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l Manages program directors as theyimplement the council’s programs andactivities

l Keeps accurate records of councilprograms for reporting on the AnnualSurvey of Fraternal Activity and theColumbian Award Application

l Keeps council’s public relations chairmaninformed of all programs and activities forpromotion to local media

Faith Director l Appointed by the grand knight, in

consultation with the program director l Responsible for all Faith based council

programs l Keeps accurate records of the council’s

Faith programs including Refund SupportVocations Program (RSVP), if applicable

Family Director l Appointed by the grand knight, in

consultation with the program director l Responsible for all Family based council

programs l Keeps accurate records of the council’s

Family programs including Food forFamilies and Family of the Month/Year, ifapplicable

l Must complete all required Knights ofColumbus Safe Environment training(kofc.org/safe) and must also pass abackground check

Community Director l Appointed by the grand knight, in

consultation with the program director l Responsible for all Community based

council programs

l Keeps accurate records of the council’sCommunity programs including Coats forKids and Global Wheelchair Mission, ifapplicable

l Must complete all required Knights ofColumbus Safe Environment training(kofc.org/safe) and must also pass abackground check

life Director l Appointed by the grand knight, in

consultation with the program director l Responsible for all Life based council

programs l Keeps accurate records of the council’s

Life programs including Special Olympicsand Ultrasound, if applicable

PRoToCol

Proper protocol should be followed by all fraternalleaders. Protocol, by definition, is basic commoncourtesy. The Knights of Columbus ProtocolHandbook (#1612) contains specific informationgoverning many types of situations whereprotocol is involved. Keep in mind, however, thatwhere there is no specific rule governing asituation, you will not go wrong by employingcommon courtesy.

Invitations — Guests should be sent properinvitations in writing well in advance (at least sixweeks before the event). All invitations should besent in the name of and signed by the grandknight, district deputy or state deputy,respectively. Replies may be directed to achairman or committee member.The invitation should let the guest know timing,agenda, dress and any special expectations.

Your district deputy, as a special representative ofthe supreme knight and state deputy, should beinvited to all council functions. However, it is notproper protocol to send a “blanket” invitation toyour district deputy with the expectation that hewill attend each event. It should be understoodthat his schedule may not permit him to attend

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When addressing correspondence to aperson that you have a close workingrelationship with, you shouldacknowledge the office he holds. The salutation would be “Worthy GrandKnight and dear brother bill”.

all affairs, in which case he would notify you inample time.

Speakers — Speakers for an event should benotified well in advance that they are expected to speak. A courteous fraternal leader does notapproach a guest just before or during a programand ask if he wants to talk. This may give theimpression that you would prefer he did notspeak, but if he wanted to talk, you would permit it.

Head Table — Seating is usually arranged by thehighest rank from the middle out to either end.Guests are introduced from the right toward themiddle then from the left toward the middle,excluding speaking members at the head table.The wives of all those seated at the head tableshould also be included in the dais. The followingpriority list should apply for speaking programsand seating arrangements: clergy, Knights ofColumbus (in ranking order), civic dignitaries and other fraternities.

When more than one priest is present and aspeaker does not wish to mention each by name,he should say “Rev. Monsignori” and/or “Rev.Fathers.” Never use “Reverend Clergy” unlessclergymen of different faiths are represented.

GRanD KnIGHT

As grand knight, by virtue of your office, you and aduly elected delegate from your council, along withthe grand knights and delegates from each councilin your jurisdiction, compose the state council. Thegrand knight and delegate, or their alternates, electstate officers, elect delegates to the annualSupreme Convention and vote on resolutionspresented to the annual state convention. It isextremely important for you and the delegate fromyour council to attend and participate in theproceedings of the convention. By taking an activerole, you will ensure a stronger future for yourcouncil and jurisdiction and the overall good ofthe Order.

Council auditThe Semiannual Council Audit Report (#1295) forthe period ending June 30 is due at the SupremeCouncil by Aug. 15; the period ending Dec. 31 isdue by Feb. 15. The council trustees and the grandknight should complete the audit and send it to:Knights of Columbus, Council Accounts, 1 Columbus Plaza, New Haven, CT 06510-3326.The reports can be found at kofc.org in the ForMembers section.

All three sections of the Semiannual Council AuditReport (#1295) must be completed, and the auditmust be signed by the grand knight and at leasttwo trustees. If an entry is not applicable, theword “none” should be inserted on the line.Failure to complete any section or affix requiredsignatures will necessitate return of the report tothe grand knight.

Schedule a — Membership — A major objective ofthe semiannual council audit is to reconcile localcouncil membership records with those maintainedby the Supreme Council Department ofMembership Records. If your council uses MemberManagement/Member Billing, the requirement tocomplete Schedule A is satisfied. Otherwise, thesources for information necessary to completeSchedule A are: (1) records the financial secretarymaintains on ledger cards or ledger sheets,

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depending on the accounting system used by thecouncil; (2) semiannual Council Rosters providedby the Supreme Council Headquarters; and (3)monthly Council Statements sent from theSupreme Council Headquarters. The latter areespecially necessary for associate to insurance,insurance to associate, transfers out of the counciland, in some instances, death transactionsrecorded as a result of insurance claimsprocessing. All discrepancies between local counciland Supreme Council records are to be reconciled,with any necessary membership transactions beingsubmitted to the Department of MembershipRecords or local council records being corrected asnecessary to ensure agreement. Only thosemembers for whom the applicable membershiptransactions have been reported are to be listed onthe audit. If an addition or a deduction is beingacted upon but has not been submitted withsufficient time for processing, it is not to beindicated on the audit report. A review of themonthly Council Statements for the audit period —August through January statements for the Januaryaudit, and February through July statements for theJuly audit — should be completed to ensure thatmembership transactions have been received andprocessed by the Supreme Council Headquarters.For the purpose of preparing the semiannual auditonly, inactive insurance members are excluded;they are not to be considered as insurancemembers of the council. If an insurance member issuspended or takes a withdrawal, he becomesinactive and is considered a deduction. Conversely,an inactive member reactivating his membership isan addition to be recorded on the “Re-entries” line.Also, the “Transfers — Assoc. to Ins.” and“Transfers — Ins. to Assoc.” lines in the Additionsand Deductions sections must agree. For example,an insurance addition as a result of an associate toinsurance transfer is also an associate deduction.The figures for “Total Deductions” in theDeductions section are to be placed on the line“Minus Total Deductions” in the Additions sectionand must be subtracted from the figures for “Totalfor Period” to obtain the correct figures for“Number Members at End of Period.”

Schedule b — Cash Transactions — FinancialSecretary — “Cash on Hand beginning of Period”will be the figure from the previous Audit Reportshowing “Cash on Hand at End of Period.”

Figures for “Cash Received — Dues, Initiations”and “Cash Received from other Sources” will bethe accounting period summary from Records ofCash Receipts or from the Financial Secretary’sCash Book. “Total Cash Received” will be the totalof the three previous items.

Amount for “Paid to Treasurer” will be the total ofthe figures shown on receipts from treasurer tofinancial secretary for moneys received during theperiod by the treasurer from the financial secretary.

“Cash on Hand at End of Period” will be amountshown “Paid to Treasurer” subtracted from theamount shown “Total Cash Received.” In mostinstances, “Cash on Hand at End of Period” willshow a zero balance, as most financial secretariespay all moneys to the treasurer before the end ofthe audit period.

Schedule b — Cash Transactions — Treasurer —The “Cash on Hand beginning of Period” will bethe figure shown on the previous audit from line“Net Balance on Hand.” The item “Received fromFin. Sec.” will be the accounting period total of theitems in the Treasurer’s Cash Book showingmoneys received from the financial secretary. This should agree with the amount shown in the financial secretary’s report on line “Paid toTreasurer.”

Under “Disbursements,” the amounts for per capitapayment and general expenses will be theaccounting period total of payment by the councilas shown in the Disbursements section of theTreasurer’s Cash Book.

audit Procedures for Schedule b — Theprocedure detailed below is recommended for useby auditors in determining that dues paymentswere receipted, entered on the appropriateMember Ledgers, turned over to the treasurer,receipted by the treasurer and deposited in thecouncil’s bank account. Conversely, it is effective in

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verifying that credits were not posted to MemberLedgers unless there is a record of payment havingbeen received. In order to make thesedeterminations, a representative number ofaccounts should be “spot checked.” Proceed asfollows:

l Verify several receipts on each Record ofCash Receipts sheet to determine if creditwas given on the appropriate MemberLedger for the amount shown

l Verify several Member Ledgers todetermine, in reverse order, if credit giventhere was received and recorded on theRecord of Cash Receipts

l Verify the totals on each Record of CashReceipts sheet to determine that moneyswere turned over to the treasurer and hisreceipt was issued

l Verify each Treasurer’s Receipt to determinethat the amounts shown were credited onbank statements as deposits

To determine if the treasurer’s check register is inbalance with the balance shown on the end-of-period bank statement, the following procedure issuggested:

l Determine that an authorized voucher existsfor each check issued and that the checkwas issued to the correct payee in thecorrect amount

l Review the endorsement on the checks todetermine that they are properly endorsedby the payee

l Compare the cancelled checks to the CashDisbursement register and indicate initialaudit results on the check register

Schedule C — assets and liabilities — This sectionwill provide insight as to the financial condition ofthe council. From the audit period it will indicate thecouncil’s financial progress — or lack thereof — andwhere necessary, it will enable the trustees, stateand district deputies, and the Supreme CouncilHeadquarters to obtain a true picture of thecouncil’s financial status.

assets — “Undeposited Funds” are moneys in thepossession of either the financial secretary ortreasurer or both. Assets labeled “Bank —Checking Acct.” and “Bank — Savings Acct.” will bethe reconciliation of the treasurer’s checkbook(s)showing the net cash balance(s). Outstanding checksshould be deducted from the bank statement.“Due From Members” data is obtained from thefinancial secretary’s Member Ledger records. Referto “Schedule C — Assets and Liabilities” forguidelines regarding these figures prior to makingthe entries.

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Schedule C: Some councils may includefigures in this schedule that are notapplicable to the audit report. This isparticularly true relative to “Due SupremeCouncil: Per Capita” in the liabilities columnand “Due from Members” in the assetscolumn.

a common error is that some councilsinclude as owed the per capita levy for theperiod following the one for which the auditis being made. For example, if an audit isbeing conducted for the period ending Dec.31, then the per capita levy for January ofthe following year should not be shown onthe “Per Capita” line. However, should thatJanuary levy not be paid by June 30, itwould be included on the next audit.

“Due from Members” — if the financialsecretary follows the proper billingprocedures, he will have sent the Firstnotices at least 15 days prior to the start ofthe period. entries are not to be made forthose members being billed for thefollowing period. To avoid confusion,billing notices should be dated as the firstof the month of the start of the period(January 1 or July 1), not the date the billsare being prepared. However, should anyportion of the bill remain unpaid into thenext audit period, that portion is to beincluded on the ensuing audit Report.

One indicator of the financial condition of acouncil is the number of members in arrears andthe amounts owed. Be certain to include thesefigures on the report.

The treasurer will furnish the amounts for “MoneyMarket accts.” from his cash book, which shouldshow transfers of cash to savings accounts.

liabilities — Figure for the Liabilities sectionrelative to the council’s obligations to Supremeand state, as well as miscellaneous, will besupplied by the financial secretary from hisrecords and from unpaid bills in his possession.

Advance payment of dues by members should be included in “Advance Payments By Members.”It is a liability because it represents dues paymentnot yet chargeable to the members.

When a member is suspended, the amounts heowes will appear in the Audit Report for the periodin which he was suspended. If using a manualaccounting system, his Member Ledger should beremoved from the council file on or before theend of the period in which he was suspended. This procedure will ensure that a billing notice is not produced during the next billing period and eliminates the carryover from one period toanother of uncollectible dues or other charges onmembers who have been suspended. The figurefor “Total Current Liabilities” is also entered in theAssets column in the space designated “Less:Current Liabilities” and is subtracted from “TotalCurrent Assets” to obtain “Net Current Assets.”

If liabilities exceed assets, the “Total CurrentAssets” should be subtracted from “CurrentLiabilities” and the resulting figure shown inparenthesis.

other assets — Trustees are to itemize otherassets on the lines provided in this section.

Council budgetBudgets are useful tools, as they allow your various program chairmen to conduct programsautonomously while working within the confines

of the budget that was approved by themembership.

As grand knight, you should work with thetreasurer, financial secretary and trustees of yourcouncil to compare the past year’s actual figureswith the budgeted figures that were approved bythe council. The information obtained will be usedto develop the budget for the current fraternalyear. Your council’s budget should correspond tothe fraternal year, which covers the period fromJuly 1 to June 30. Setting your council’s budgetshould be started immediately after your electionas grand knight.

When beginning the budget process, review theactual revenues and expenses for each programand activity and compare those with the budgetedfigures from the past year. Questions to considerwhen setting a budget include:

l Were the revenues skewed by one largedonation?

l Were items that were donated in the pastnow being charged for, thus increasingexpenses?

l Was participation in a particular activity upor down? Did it depend on the weather ora scheduling conflict? This could impactboth revenues and expenses.

l Did the council charge too little or toomuch for the event?

Keep the budgeted figures realistic andattainable. The figures should reflect anapproximation of the actual results from the prioryear, adjusted as needed for either anextraordinary event or something that will beconsidered normal going forward. They shouldalso be based on the answers to the samplequestions above. However, a good rule of thumbwould be to increase revenue and expenses forthe cost of inflation (approximately 1-2 percent).This is also the time to evaluate each activity todetermine which ones the council will continue.The budget for a new activity will either take therevenue and expenses from a discontinued activityor new dollars will need to be allocated for the new activity.

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Once the budget is prepared and finalized, itshould be disseminated to the membership andadopted at a regular council meeting by a vote ofthe membership. It is recommended that this takeplace during one of the first meetings early in thefraternal year. This process ensures that futuremeetings are utilized to the fullest and are nottaken up with voting on each project’s expense. Itis also a good practice to ensure that excess fundsare transferred from the council’s general accountto a savings account, as appropriate.

After the council passes the budget, it does notmean that it is set in stone. The budget should bean adaptable document, changing as circumstancesdictate.

Membership ProceduresThe financial secretary should use the MemberManagement application (the preferred method,when applicable) or process a MembershipDocument (#100) for each of the followingtransactions:

1. New Member — The Exemplification of Charity,Unity, and Fraternity establishes membership, andthe recording of that exemplification is required toactivate fraternal benefits. Immediately (within 24hours) following the Exemplification of Charity,Unity, and Fraternity, the financial secretary willprocess the Membership Document (#100) by mailor email. Whether you mail or send an email of theMembership Document (#100) to the SupremeCouncil Office, always copy the general agent.This will ensure that the new member is recordedon the council roster and that the general agentreceives a copy of the Membership Document(#100). (Note: If the field agent is present at theceremony, he may pick up this document fordelivery to the general agent.) The council shouldalways retain a copy of the MembershipDocument (#100) for its records. When sending theMembership Document (#100) via email, there is noneed to send a hard copy.

2. Juvenile to Adult — Juvenile to Adult constitutesa specific category for an applicant for membershipwho holds an in-force insurance policy that wasissued while he was under 18 years of age. His

application is to be processed as a Juvenile toAdult transaction. The juvenile policy numbershould be included on the Membership Document(#100), if available. If the prospect applies formembership prior to his 19th birthday, themaximum initiation fee that can be charged is $5.

3. Reinstatement — This transaction can be used ifmembership termination has been for a period ofthree months or less. Reinstatements can only takeplace in the council from which the member wassuspended or took a withdrawal. A reinstatementwill not reflect a break in membership. No councilvote is required.

4. Readmission — This transaction is appropriate ifmembership termination has been for a period ofmore than three months and up to seven years.The applicant may be readmitted into the council of his choice. Council vote on his membership isrequired, but action by the admission committee isnormally not needed.

5. Reactivation — The proper transaction forreentry of an inactive insurance member isreactivation. An inactive insurance member hasbeen suspended for nonpayment of dues butmaintains an in-force Knights of Columbusinsurance certificate.

6. Reapplication — When an applicant has beenout of the Order for more than seven years,reapplication is the proper transaction to be used.He may reapply to the council of his choice, andthe re-applicant need not be exemplified again if

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Completed Membership Documents (#100)can be scanned and emailed tomembership@kofc.org and to the generalagent of your council. This saves time andmoney and ensures that transactions areposted to your council’s account quickly.Preferably, any updates to a member’s status should be made through the Member Management application located in officers online.

he satisfies the admission committee that he’salready done so. He pays no initiation fee.

7. Transfer — A member in possession of a currentmembership card may transfer to any council of hischoice by applying through a MembershipDocument (#100). The receiving council acceptsthe application for transfer under the electiveprocedures. Please note that a transfer is initiatedonly by the receiving council. Members cannot betransferred out of a council.

8. Withdrawal — The withdrawal transaction cannotbe reported by using the Membership Document(#100). Rather, a personal, signed communicationfrom the member requesting withdrawal(resignation) is required to be sent to the counciland forwarded to the Supreme CouncilHeadquarters. A member can resign whether he iscurrent in dues or in arrears. The only stipulation isthat he must be eligible for re-entry as of the datehe files his letter of withdrawal with the council orassembly. Withdrawal is not an option for a felon,non-practical Catholic, or someone who has beensuspended or expelled under Section 162 of theOrder’s Laws. Those members who apply for andare granted a withdrawal do not maintaincontinuous membership. The membership recordwill reflect a break in service. If the applicant forwithdrawal is an insurance member, he will berecorded as an inactive member and will remain inthat status on the council roster as long as hisinsurance is in force.

The council continues to be responsible forSupreme and state council assessments oninactive members. However, a $9 credit is appliedto the council’s account the month following theanniversary date of the member’s insurance policyto offset such assessments.

Upon receipt of a valid withdrawal request, theMembership Records Department will process therequest and a letter from the Supreme Knight willbe sent out to the former member acknowledgingthat their withdrawal was processed and providinginformation on how they can once again become a Knight in the future should they wish to join acouncil or join online as an Online Member. TheState Retention Chairman is copied on each of

these letters so that the state council can follow upand attempt to retain each of these withdrawals.

9. Suspension — NonPayment — A member mustbe in arrears for at least three months before hecan be suspended for nonpayment. Any member inthat status, however, is to be advised that a currentmembership card is required for attendance andparticipation at all Knights of Columbus businessmeetings and ceremonial exemplifications. A “current” membership card is defined as onebearing a “DUES PAID TO” date equal to or greaterthan the current date. Because this category ofsuspension represents the largest group of lossesto our Order each year, it is of vital importance thatproper billing procedures be followed before activemembership is terminated by suspension.

As in the case of a withdrawal, a suspendedinsurance member goes to an inactive status andremains on the council rolls. Because of this fact,the council is responsible for Supreme and statelevied assessments and also receives the annual$9 credit, as explained in the preceding section.

10. Death — As soon as possible after the death ofa council member, a Membership Document (#100)should be submitted to the Supreme CouncilHeadquarters for processing with the completedate of death and survivor information included. If Member Management is used to report thistransaction, there is no need to submit additionaldocumentation. Deceased members areremembered in daily Mass at St. Mary’s Church,New Haven, CT — the birthplace of our Order.

11. Disability — Relief from Payment — Thosebrother Knights who are unable to engage in anyoccupation for a period of at least six months mayapply for waiver of dues under Section 118(e) of theOrder’s laws. Evidence of total disability must befurnished to the Supreme Council Headquarters,along with the Application for Relief from Paymentof Council Dues and Supreme and State CouncilPer Capita Charges (#1831). The Application mustbe signed by the disabled member, the grandknight and the financial secretary. All disabilitywaivers expire on Dec. 31 of each year and must be renewed during the 90 days prior to expiration.A letter is sent from the Supreme Council

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Headquarters requesting confirmation of continueddisability during October and must be signed bythe grand knight and financial secretary. The letteris then returned directly to the supreme secretary’soffice. Council members who are exempt fromdues payment under Section 118(e) are to be issueda Membership Card (#154) on a calendar yearbasis. In the case of a member qualified forexemption under both Sections 118(e) and 118(d) —honorary life — the honorary life designation takes precedent.

12. Suspension — Lack of Practical Catholicity —One of the requirements for membership in theKnights of Columbus is “…practical Catholic inunion with the Holy See.” In order to remain on theactive rolls of your council, a current member mustmaintain his practical Catholicity. On occasion,however, members leave the faith, marry outside ofthe Church or otherwise lose that status. In suchcases, they forfeit their membership “ipso facto” —by virtue of the fact. Before a suspension for thisinfraction can be processed, tangible evidence tosupport a suspension under Section 168.1 of theLaws of the Order is required. A statement must beon file in the Supreme Council office from thecouncil chaplain or the member’s parish priest tothe effect that the man in question is no longer apractical or practicing Catholic. A statement signedby the member admitting to the infraction givingrise to the attempted suspension is alsoacceptable. One of these statements, along with acompleted Membership Document (#100), mustsubmitted in order for suspension processing canbe initiated.

This transaction is NOT counted against SupremeCouncil award quotas.

13. Suspension — Felony Conviction — Section168.6 of the Laws of the Order stipulates forfeitureof membership for a felony conviction. A felony isgenerally one where the potential penalty isgreater than one year incarceration. To sub -stantiate conviction, the financial secretary mustsubmit: a newspaper account of the conviction,written confirmation from the prosecutor or acertified copy of the court documentation. Proof ofconviction should include a description of the crimeas a felony. Any ONE of the aforementioned proofs

of conviction, certification that the individualconvicted is known by the financial secretary to bethe member to have his membership forfeited anda completed Membership Document (#100) aresufficient for suspension under Section 168.6.

This transaction is NOT counted against SupremeCouncil award quotas.

14. Suspension — Misconduct — Detailedinstructions on filing complaints against a member,his rights to plead and trial are found in the Laws ofthe Order, Chapter XIX, Sections 170-181. Acompleted Membership Document (#100) and allpaperwork resulting from compliance with ChapterXIX of the Laws of the Order must be submitted tothe Department of Membership Records before thesuspension processing can be initiated.

This transaction is NOT counted against SupremeCouncil award quotas.

Membership Procedures — Transferring onlineMembers

Transferring online Members — Online Members“assigned” as prospects to councils will appear inthe council’s Prospect tab in Officers Online. This tab will only be seen by grand knights andfinancial secretaries. Councils will not have an“Unassigned” tab.

Candidate Tab — entering Member Informationonline

The Candidate Tab, which is accessible throughOfficers Online, allows grand knights and financialsecretaries in the United States and Canada toprovide the membership information for new,reactivated and transferring members directly tothe Supreme Council online. While this tool helpsstreamline the processing of member information,it does not fully replace the Form #100 and each prospective member should still complete a Form #100 for state and council records.Information submitted using this tool can beexpected to be processed within 2-3 days.

Once the council has gone through the admissionsprocess, and the member has taken his

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Exemplification of Charity, Unity, and Fraternity,they can transfer him by simply adding the dateread in the “Grand Knight Approval (Date Read)”section, and the exemplification date in the“Financial Secretary (Ceremonial Date)” section,and clicking the update button. These two datescan be added separately, but once the ceremonialdate is added, the transfer will be processed.

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.

Rejecting Transfers — If, for some reason, theOnline Member is not going to transfer into theassigned council, the council may “reject” themember by clicking “reject” and selecting a reasonfrom the drop-down menu. Rejecting an OnlineMember for transfer will result in the memberreappearing in the “Unassigned” section of thestate’s “Prospect” tab. A rejection will not trigger an email to state officers.

officers online — Grand Knight SectionThe site, accessed from the main Knights ofColumbus webpage, provides you with access toyour council’s membership roster and financialstatement. Your access to this website is grantedonce the Supreme Council Headquarters receivesyour contact information on the completed Reportof Officers Chosen for Term (#185) or on theCouncil Officer screen in Member Management.This report should be submitted to the SupremeCouncil immediately after council elections. Onlyupon recording of this information will the SupremeCouncil Office grant access to this secure sectionof the Knights of Columbus website.

This site lets you track your council’s progress forboth membership and insurance growth, which isuseful infor-mation toward the earning of the StarCouncil Award.

After signing into Officers Online, as grand knight,you have the ability to order council supplies,which can be charged to your council’s account.Click on Supplies Online to view the materialsavailable and place your order. Gift items are alsoavailable by clicking on the Knights Gear logo,which brings you to knightsgear.com. Through this

website, your council can also order customizedapparel (e.g. your council’s name and number).

Another resource available through Officers Onlineis the Officers’ Desk Reference. It provides answersto frequently asked questions about our name andemblem, home corporations, membership issues,tax issues, fraternal issues, council and assemblyissues, and social communications. There’s a verygood chance that many of the questions you mighthave about some of the more challenging aspectsof being a grand knight have been dealt with here.Entries are regularly updated and expanded asnew questions arise or additional informationbecomes available. As grand knight, you also haveaccess to the Member Management applicationand By-Laws Online. Please be sure to familiarizeyourself with these applications.

HonoRaRY anD HonoRaRY lIFeMeMbeRSHIP ReQUIReMenTS anD CeReMonIal

Honorary MembershipMembers who have attained the actual age of 65years and who have been members of the Order for 25 consecutive years shall be designated ashonorary members. If the 25 years of continuousservice is calculated from the last date of entry, theaward is automatic. If 25 years of unbroken servicewas achieved prior to a suspension or withdrawaltransaction, the distinction must be requested bycontacting the Department of Membership Records.

The honorary membership distinction includes a plastic membership card that is sent to thefinancial secretary for presentation to the memberat a suitable occasion.

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as long as the honorary or honorary lifemember is in good standing, the financialsecretary continues to issue an embossedpaper “travel card” to the member.

The honorary member is exempt from general fundcharges, except payment of an amount equal to thesum of Supreme Council assessments and theannual levies of your state council. Because of thisannual payment requirement, a paper membershipcard must be issued by the financial secretary on ayearly basis. The honorary member must presentthat paper card to gain access to Knights ofColumbus functions.

Honorary life MembershipMembers who have attained the actual age of 70 years and who have been members of the Orderfor 25 consecutive years, and those who havebeen members of the Order for 50 consecutiveyears, regardless of age, shall be designated ashonorary life members. If the required years ofcontinuous service are calculated from the lastdate of entry, the award is automatic. If the requiredyears were achieved prior to a suspension orwithdrawal transaction, the distinction must berequested by contacting the Department ofMembership Records.

Honorary Life members are exempt from furtherpayment of dues, per capita charges andassessments. No Supreme or state councilassessments are levied against them. All priestsand religious brothers who have taken their final orperpetual vows are automatically designated ashonorary life members upon participating in theirfirst ceremonial. However, this status is notawarded to permanent deacons or seminariansunless they meet the requirements based on ageand years of service. The Honorary Lifemembership distinction includes a plasticmembership card that is sent to the financialsecretary. The grand knight presents the card to the member at a suitable occasion.

An honorary life member cannot be suspended fornonpayment. He can, however, request awithdrawal or be suspended for cause. In suchcase, you must request that he relinquish his plastichonorary life card.

Honorary (Honorary life) MembershipCeremonialIf the member has been a member for 25consecutive years and has reached age 70, or has

been a member for 50 years regardless of age, theonly change in the following ceremonial is tosubstitute the words “honorary life member” for“honorary member” wherever the latter appears.

The honor may be conferred upon one individualmember or in groups of two or more. If a group,change singular to plural where necessary.

The following items should be obtained by thefinancial secretary prior to the ceremony. HonoraryMember (#1457) and Honorary Life Member (#1458)certificates are available for a nominal charge as wellas Honorary Member (#PG-109) and Honorary LifeMember (#PG-110) lapel pins.

Careful preparations for this solemn ceremonyshould be made and every care taken to make itsimpressions lasting. Each officer should beprepared to deliver his part in an inspiring manner,attired in a suit, medal of office and ceremonialbaldric if available.

This ceremony may be conducted with thepresence of the family and other guests or inprivate under “The Good of the Order.”

G.K. — Our laws provide for conferring a degree ofhonor upon any member of this council who byreason of age and years of service is worthy of thatdistinction. The Worthy D.G.K. will announce thename(s) of our brother(s) to be so honored today(or tonight).

D.G.K. — Worthy G.K., the Worthy F.S. has certifiedto me the name(s) of Brother(s) ___________ asmeriting this honor. (Asks brother[s] so to behonored to step forward.)

Chan. — Worthy G.K. and brothers, the Knights ofColumbus is a strong lay arm of the Church. In thesolemn ceremony of initiation, you promisedunswerving loyalty to her. You learned also thepowerful lesson of unity; and unity, my brothers,means keeping ourselves together in carrying outthe high aims and purposes of our Order. Whenreceiving Knightly honors in this Order, you werepronounced the hope of Church and State. Be you

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ever, therefore, valiant sons of Holy Church andupright and loyal citizens of the State.

Our Order has acquired fame and honorthroughout the land for the united efforts of itscouncils in community charitable service work,building the domestic Church and supporting theculture of life, supporting Catholic education andfostering religious vocations.

How important it is, therefore, that each member ofthis council should continue steadfast in his fidelity toour council and in unity with our Order. Let us be evermindful, therefore, brothers, to maintain ourmembership in our council so that our unity ofpurpose and unity in action will not be weakened ordiminished in our charitable endeavors and for ourefforts to build a stronger and more vibrant faith. Onlywith steadfast determination for God and for truth willwe be able to promote and carry on our humanitarianwork.

And so I say, Worthy G.K., that the purpose of thisceremony is to seek out and reward the persistentand faithful members of this council; and from thisstation I pronounce the brother(s) designated bythe Worthy D.G.K. truly deserving of the honor youare about to confer.

(One Rap)

G.K. — (Addressing the brother[s]) Brother(s),______________, the Supreme Council of ourOrder has empowered __________CouncilNo._________ to confer upon you the title ofHonorary Member (Honorary Life Member) and thisdecoration of honor and loyalty. You have meritedthis distinction because you have kept yourself ingood standing in the Order for (announce the actualnumber of years applicable) and with self-sacrificeand unselfishness have aided the Order in theaccomplishment of its noble aims.Your earnestness and zeal have been noted byyour superior officers as well as by your brothersof this council. The Order needs such men, menof character, men of principle — stalwart Catholicmen. By virtue, therefore, of the authorityconferred upon me by the Supreme Council of theOrder, I pronounce you an Honorary (Honorary

Life) Member of the Knights of Columbus — and bylike authority I present to you a commemorativeHonorary/Honorary Life Member Card, your paidup traveling card, Certificate of Accomplishmentand lapel pin, a mark of merit and distinctionamong your brother Knights. It symbolizes yourloyalty, devotion and obedience to the principles of our honored Order.

(G.K. presents to each their Certificate,Commemorative Card and travel card to thebrother[s] and inserts the emblem in coat lapel. Thebrother[s] should be called upon to give expressionof his [their] thought and feelings, after whichproceed as follows.)

The council sings one stanza of an appropriatehymn. Proceed with the remaining business under“Good of the Order” or, if the ceremonial isconducted during a council meeting, proceed withthe next order of business.

STanDInG CoUnCIl CoMMITTeeS

admission Committee — Ensures that theapplicant understands the Order and that thecouncil understands what the candidate expectsfrom his membership. A properly functioningAdmission Committee:

1. Is comprised of the chancellor and six memberswho are appointed by the grand knight

2. Requests the candidates to complete theMember Interest Survey (#1842) to identify whattypes of activities are of interest to thecandidates

3. Forwards the Admission Committee Report,which is read at a meeting of the councilfollowed by candidate balloting, to the grandknight

4. Informs the candidates of the date for the nextExemplification of Charity, Unity, and Fraternity

5. After the candidates have taken theirexemplification, asks the new members toconsider joining in the committees and activitiesthat match their interests

Recruitment Committee — Continually keeps afresh list of potential candidates for membership inyour council. A properly functioning Recruitment

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Committee:

1. Is composed of three or more membersappointed by the grand knight in collaborationwith the membership director

2. Identifies and schedules recruitment drives,which should include Church drives, openhouses and team recruiting initiatives

3. Works with the Program Director in invitingpotential members to participate in councilactivities

Retention Committee — Keeps the members ofyour council interested and participating in yourcouncil activities. A Retention Chairman must bereported to the Supreme Council in order tosuspend members for non-payment of dues. A properly functioning Retention Committee:

1. Is comprised of the Retention Chairman (usuallythe deputy grand knight), council trustees andany other members appointed by the grandknight

2. Recognizes each member’s accomplishments 3. Ensures new members are introduced to the

council membership and made to feel welcome 4. Communicates with members to remind them of

meetings and activities5. Works with the Program Director to encourage

the members to participate in council activities

Council by-lawsAn application called By-Laws Online is availableon the Knights of Columbus website. It allowscouncils to establish by-laws electronically, receiveautomatic approval, submit a request for printing (if the council wishes to have the by-laws printed bythe Supreme Council), and maintain a historical fileof by-laws that had previously been submitted andapproved through the By-Laws Online application.The program is available to grand knights, financialsecretaries and advocates of councils. TheSupreme Council established the By-Laws Onlineprogram to ensure that all councils and assembliesare using a uniform set of procedures. Since itestablished the By-Laws Online program, theSupreme Council is no longer accepting orreviewing council by-laws that have not beenprepared using the online template. If a council

wishes to amend its existing by-laws, it must usethe online template to do so.

In order to access By-Laws Online, you will need aregistered account on Officers Online, which is anonline resource that offers a menu of helpfulapplications. Go to kofc.org, click on “Sign In” onthe right side of the home page, and follow theinstructions on the site. If you do not have aregistered account with Officers Online or needassistance obtaining a user name or password,please contact the Supreme Council CustomerService Department at 1-800-380-9995. Once youhave obtained access to Officers Online, click onthe By-Laws Online button.

Ceremonial Guidelines l The financial secretary or grand knight

orders Candidates’ Kits (#531) by logginginto the Officers Online section of theKnights of Columbus website and clickingthe link to Supplies Online. Each candidatekit consists of a rosary, a prayer card, aMembership Application, a Knights ofColumbus lapel pin and a copy of the booklet These Men They Call Knights(#937), along with information on theShining Armor Award.

l The grand knight is in charge of theceremonial team. The ceremonial teamofficers need not be current chair officers.Ceremonial team officers may wear theSupreme Council Ceremonial Baldric over adark-colored business suit with the councilmedal of office.

l Reading exemplification parts is allowed, as is use of the Exemplification of Charity,Unity, and Fraternity video (which can alsobe viewed on demand through theSupreme Council).

l The financial secretary, along with thewarden should be the custodians of theceremonial books. The warden will have thecouncil chamber arranged as shown in theDiagram on page 5 of the Exemplification ofCharity, Unity, and Fraternity Book (#10991).

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l The council should consider hosting anExemplification of Charity, Unity, andFraternity monthly. A candidate need nottravel far or wait extended periods of time tojoin his council. The grand knight shall notifythe district deputy of exemplification dates.

Every exemplification is to be reported. If thedistrict deputy is present he should report theexemplification on the Exemplification Report(#450). If the district deputy is not available toattend the ceremony, the grand knight or financialsecretary should report the exemplification usingthe same report form.

Financial Secretary evaluationNinety days prior to the conclusion of yourcouncil’s financial secretary’s three-year term, youwill be advised that an evaluation of the financialsecretary’s performance in the office must be madeand returned to the Supreme Knight beforeconsideration will be given to reappoint him for anadditional three-year term. The financial secretarywill receive a copy of the letter informing the grandknight of the need for an evaluation.

The Evaluation of Financial Secretary (#1938)instructs the grand knight, council trustees anddistrict deputy to evaluate the financial secretary bychecking one of four designations on the form,rating him on eight areas of his performance.Space is also provided to indicate recommendationor non-recommendation for reappointment, andthe current occupation of the financial secretary.The completed evaluation must include thesignatures of the grand knight, trustees and thedistrict deputy. The form is sent to the state deputy

for his endorsement and will be forwarded to thesupreme knight. If the financial secretary must resign from officebefore the end of his term or if he does not wish oris unable to continue beyond his three year term,he should submit a letter of resignation to thesupreme knight indicating the effective date of hisresignation and the reason for doing so. When theletter of resignation is acknowledged by thesupreme knight, you will be sent completeinstructions and forms for the appointment of asuccessor to the office.

Eligible candidates for appointment as financialsecretary are:

1. Third Degree member of the Order.2. at least 21 years of age.3. not engaged in the sale of life or health

insurance for another organization.4. not a convicted felon.5. not elected to another office within your council.

You must complete the Nomination forAppointment (#FS-103) and obtain the signature ofyour council’s trustees. The nominee mustcomplete the Application for Appointment asFinancial Secretary (#FS-101) and both forms mustbe submitted to the Supreme Council office. Thesupreme knight will make the appointment, whichwill be mailed directly to the newly appointedfinancial secretary with copies to you, the statedeputy, executive secretary, district deputy, andgeneral agent. The appointment takes effect on thedate it is issued and will run for a period of threeyears from that date.

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DISTRICT DePUTY

It is extremely important that you ensure that thegrand knight and the delegate from each councilin your district attend and participate in theproceedings of the annual state convention. Asdistrict deputy, you are also considered animportant part of the state council. As such, youare expected to attend the organizationalmeeting, the mid-year membership meeting andthe annual state convention. By taking an activerole, you will ensure a stronger future for eachcouncil in your district, your jurisdiction and theoverall good of the Order.

Ceremonial Work Within Your DistrictAs a district deputy, you are responsible for all ofthe ceremonials held in your district. At theconclusion of any exemplification in your district,report that ceremony to the Supreme CouncilHeadquarters by completing the ExemplificationReport (#450). You should complete and submitthis report even if you were unable to attend.

Each council in your district should strive toconduct their own Exemplifications of Charity,Unity, and Fraternity. While the Exemplification ofCharity, Unity and Fraternity has seven roles thatcan be filled, you can point out to your councils’leadership teams that the ceremony can beappropriately conducted with as few as threeteam members, plus the financial secretary. This should be well within the capability of anycouncil, regardless of its size. In addition, council's ceremonial team has the ability toconduct exemplifications more frequently,allowing them to welcome more new membersthan a council without a ceremonial team.

The Exemplification of Charity, Unity, andFraternity is under the direct supervision of thecouncil’s grand knight, who is responsible forappointing members to the team. Remind thegrand knights in your district that the current chairofficers may assume roles on the ceremonialteam, but the opportunity to assume a role on the

team should be open to all members of thecouncil, even if those members fill back-up roles.

District Deputy expense FormThe Supreme Council Headquarters coverscertain district deputy travel expenses. Yourexpenses should be submitted on the DistrictDeputy Expense Form (#267).

Your travel expenses for transportation, meals,telephone, tolls and parking, in connection withofficial business in your assigned district, arechargeable to the Supreme Council. Theseexpenses may be submitted as a result oftraveling for installations of officers,exemplifications and council visitations. Hotel charges for one night’s lodging, inconnection with your attendance at yourjurisdiction’s organizational and midyearmembership meetings, are also chargeable to the Supreme Council.

Expenses that are not reimbursed by the SupremeCouncil include postage, guest meals, clericalassistance, printing, stationery, duplicatingservices and expenses incurred in connectionwith your attendance at your jurisdiction’s annualstate council convention.

Your District Deputy Expense Form (#267),accompanied by itemized receipts, should beforwarded to the Supreme Council Headquartersquarterly through your state deputy, whoseapproval is required before it will be givenattention by the supreme secretary.

official Council visitsAs district deputy, you are the officialrepresentative of the supreme knight and yourstate deputy when you make your official councilvisits. These official visits should be made at aminimum of two times per year. After each officialvisit, you are expected to complete and submit thereport of your visit to the Supreme CouncilHeadquarters. This report assists you and theSupreme Council Headquarters to determine if the

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council warrants additional assistance to maintainits viability.

Use the District Deputy Semiannual Report onCouncil Status (#944) to report on the status ofthe councils in your district.

new Council DevelopmentOne of the greatest accomplishments for you asdistrict deputy would be the formation of a newcouncil during your tenure.

For in-depth details and instructions on forming anew council, including the presentation of charterceremony, refer to the Council Growth &Retention Guidelines (#10506).

Council ReactivationThe health and welfare of each council that youhave been assigned is an important function foryou as district deputy. Councils that areexperiencing problems or have been suspendedwarrant attention. As district deputy, an importantduty is to reactivate any suspended council inyour district.

For full details on council reactivation, please referto Council Growth & Retention Guidelines(#10506) or contact the Fraternal MissionDepartment at councilreactivation@kofc.org.

Council RetentionAs a district deputy, you have the very importantresponsibility of ensuring that the councils in yourdistrict remain viable. This is accomplishedthrough your official and unofficial council visits.During those visits, your observation andleadership skills will prove to be invaluable,especially if you observe the following warningsigns that a council is struggling to remain active:

l No one is willing to take office — the samemembers continuing year after year asofficers of the council indicates a lack ofleadership.

l Low attendance at meetings — councilmembers appear to have no interest in

continuing the council if there is no quorumfor meetings on a continual basis.

l Very few or no service programs beingconducted — councils have an obligationto assist the parish and community.Councils that have no service programs inplace are likely to fail.

l The council has no recruitment programand is not welcoming to new members —in order to have a strong council, addingnew members to the council is important.However, if there are no recruitmentprograms in place to accomplish this, thecouncil will fail

l No support for the parish or the pastor — if the council is not interested in assistingthe parish or the pastor with furthering themission of the Church, this indicates thatthe council is failing

l The council is using dues payments forother expenses prior to paying itsobligations to the supreme and statecouncils — this situation indicates that whilethe council is attempting to continue theprograms that it may be conducting, it is nottaking in enough funds to pay for thoseprograms. It will only be a short time beforethe council is suspended for nonpayment ofsupreme and state council obligations

The action steps you should take if you observeone or more of these warning signs include:

l Reassure the members — this is not the timefor you to chastise the remaining membersin the council. Rather, let the members knowthat you are there to assist them in gettingthe council turned around

l Talk to the pastor — engage the pastor intrying to find out why the council is failing.Keep the meeting positive and listen towhat he is saying about why he thinks thecouncil is failing

l Utilize the state officers — ask forassistance from the state officers,especially the state membership and

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program directors. These resources arethere to assist you and will provide youwith many strategies to get the councilfunctioning properly

Remember that you are there to facilitate theturnaround of a struggling council and not to issueunilateral edicts and instructions. By collaboratingwith the pastor and the members of the council onways to revive the council, you will be leading byexample. Keeping a positive attitude whenworking through this process will yield asuccessful outcome.

District MeetingsCommunication and organization are vital to thesuccess of your district. To achieve success you arerequired to conduct, at a minimum, a districtorganizational meeting and a midyear membershipmeeting. Invite grand knights, financial secretaries,treasurers, membership and program directors, andfield agents from the councils within the district toparticipate in the meetings.

Your district organizational meeting should beheld within two weeks of the jurisdiction’sorganizational meeting and cover the followingareas:

l Membership m Goals and quotas for the district and

each council m Schedule of ceremonials within the

district for the proceeding six months m Recruitment Plans l Supreme Council plans l State Council plans l District plans l Council plans m Membership Retention m Insurance Promotion m Membership Incentive Programs l Supreme Council l State Council l Charitable Programs m Supreme Council programs m State Council programs

The midyear membership meeting should bescheduled immediately following the jurisdiction’smidyear meeting and focus on motivating eachcouncil to:

l Achieve membership and insurance goals l Continue providing charitable service

programs to their parish and community

The meeting is also a used to relay informationfrom the Supreme and state councils on any newmembership or charitable program initiatives.

Strategy SessionsQuarterly (or as needed) strategy sessions areuseful tools for you to meet with each council inyour district on a one-on-one basis to review thecouncil’s plans for membership recruitment,insurance promotion and charitable outreach.

The sessions should be scheduled in August orSeptember and then again in January or February.Each strategy session should include the council’sgrand knight and membership and programdirectors.

Use the first session to assess the council’s plan on: l Providing charitable outreach to the parish

and community l Earning the Star Council Award l Membership recruitment

After this session, each participant should becommitted to the plan of action for the council.

The second session should to be used to evaluatehow the council is progressing on the goalsestablished in the first strategy session. Questionsto ask include:

l Is the council better than it was previously? l What can we do to help more people? l How can we do this better?

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oFFICeRS onlIne — DISTRICT DePUTY SeCTIonYour access to this website is granted at the start ofyour term, once the Supreme Council Headquartersreceives from your state deputy your contactinformation on the completed District DeputyAppointment (#189). Officers Online lets you keeptrack your district’s progress for both membershipand insurance growth, which is useful informationtoward the earning of the Star District Award, and is useful to track the health of each council inyour district.

Another resource available through Officers Onlineis the officers’ Desk Reference. It provides answersto frequently asked questions about our name andemblem, home corporations, membership issues,tax issues, fraternal issues, council and assemblyissues and social communications. Entries areregularly updated and expanded as new questionsarise or additional information becomes available.

MISCellaneoUS — DISTRICT DePUTY SeCTIonMedals of Office — The supreme secretaryforwards the medal of office for each new districtdeputy to the state deputy for presentation at theinstallation ceremony. The retiring district deputy is allowed to retain hismedal of office as a memento of his term.

Ceremonial Baldrics — The baldric positivelyidentifies Knights of Columbus, especially whenworn with suitable attire, the medal of office, andname badge. Therefore the use of CeremonialBaldrics is preferred, and highly encouraged, forwear at council functions, parish activities, andcommunity and civic functions.

The Ceremonial Baldric is available to be orderedfrom our official suppliers:

In the United States: The English Company, 1-800-444-5632 orwww.kofcsupplies.com

In Canada: Entreprises Roger Sauvé, LTD, 1-888-266-1211 or www.roger-sauve.com

Officers’ Failure to Perform Duties — When anofficer of a council in your district fails or refusesto perform the responsibilities of his office, youmay declare that office vacant in accordance withSec. 92(b) of the Laws of the Order. You mustreport at once to the state deputy and supremesecretary any deposition or suspension made. If the vacancy will not be filled according to theLaws of the Order, you must appoint a member ofthe council to the office for the unexpired term.

Installation of Officers — It is your duty to installthe officers of each council in your district.According to Sec. 129 of the Laws of the Order,each council officer, unless excused by a vote ofhis council, must present himself for installation ata (mutually agreed upon) time. The time must bespecified in a notice issued by or through thedistrict deputy or state deputy. The district deputyor state deputy also have the right to excuse acouncil officer from the installation. Theinstallation ceremony is detailed in the Installationof Council Officers (#770). You should prepare toconduct the installation as prescribed in theceremonial book.

Dissolution of Councils — Whenever the board ofdirectors orders a council dissolved, you mustfollow any directions you receive from the supreme secretary regarding the transfer of memberships and the disposition of books,papers, records, accounts and moneys of thecouncil.

Dissolved Councils — A new council may not be established in a location that was the site of a dissolved council without first obtainingapproval from the board of directors. The procedure calls for the state deputy to direct aletter of permission to the supreme secretarybefore any steps to organize are taken.

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Awards Presentations — Each year, the StarCouncil, Father McGivney, Founders’ andColumbian awards are forwarded to the districtdeputy of record (except where otherwiserequested by the state deputy) for presentation.You are asked to present these awards to thecouncil at an appropriate ceremony or occasion.You should invite the field agent to assist in allcouncil award presentations, especially for theFounders’ Award. (Note: If the council earns onlythe Founders’ Award, it will be forwarded to thegeneral agent of record for presentation.)

Member Retention — The State RetentionChairman, on behalf of the State Deputy will havethe responsibility of monitoring the ConservationList that is posted each Saturday morning on theSupreme Council web site in the Officers Onlinearea. The same has the responsibility to ensurethat the State Retention Committee has access tothis report, and that each District Deputy monitortheir District Conservation Report. He should alsocommunicate with the member, offeringassistance and advising him that the DistrictDeputy in his area is available to help with anyparticular problems. The District Deputy mustdetermine whether personal contact has beenmade by the council and report his findings to theState Deputy, as soon as possible. As a reminder,each council should report a Retention Chairmanto the Supreme Council in order to be able tosuspend members for non-payment of dues.

FInanCIal SeCReTaRYYou have been selected by your council andappointed by the supreme knight. Through yourprofessionalism, accuracy, strong organizationalskills and timeliness, your council will befinancially strong and able to conduct charitableprojects in your parish and community.

If you must resign from office before the end ofyour term or if you do not wish to continuebeyond the end of your three year term, youshould send a letter of resignation to the supremeknight noting the effective date of yourresignation and the reason for doing so. Thisshould be done as far in advance as possible, assufficient time is needed to secure otherapplicants for the position and to process thepaperwork necessary for the appointment.

Financial Secretary CompensationThe board of directors has set the compensationto be paid to the financial secretary, and everycouncil should have bylaws that conform exactlyto this policy:

l From the council — an amount no less than8 percent and no more than 10 percent (tobe determined by the council) of themoneys collected for dues from bothinsurance and associate members. Thefinancial secretary is free to waive thiscompensation at his discretion.

l Lump sum payments are not allowed ascompensation to the financial secretary. The purpose of compensation on thepercentage basis is to pay the financialsecretary according to the effectiveness ofhis collecting from members all moneysdue to the council. Such collection is thefirst duty of his office listed in Section 139 ofthe Laws of the Order. The financialsecretary receives compensation from hiscouncil for dues collected only. He does notreceive compensation for initiation fees orany other receipts.

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l From the Supreme Council Headquarters— the financial secretary annually receivesat the end of each calendar year $.40 foreach life insurance certificate registered tothe council and in force at the end of thecalendar year.

l The payment from the Supreme Council ismade annually in January to the financialsecretary of record on Dec. 31. If more thanone person served in the office during theyear, it is expected that the financialsecretary receiving the award will share iton a pro-rata basis with his predecessor.

l The approved compensation is forperformance of the regular duties of theoffice of the financial secretary according tothe Laws of the Order. The council mayaward additional compensation to afinancial secretary for extra duties which heperforms at the council’s direction beyondthose required by the Laws.

Income Tax RequirementsThe annual grant from the Supreme Council andany payments from your local council are subjectto income tax. Accordingly, you are required toreport the total amount received on your personaltax returns. In the United States, the SupremeCouncil will issue you a Form 1099-MISC shouldyour grant exceed $599.99. For Canadiancouncils, a T4A slip will be issued if the grantexceeds $499.99. You must report the grant asincome on your personal tax returns, even if it fallsbelow the threshold for issuance of a Form 1099or a T4A tax slip. You are not treated as anemployee of either the local council or theSupreme Council.

bondingThe financial secretary, upon appointment by thesupreme knight, is automatically bonded at nocharge 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 — by writing to thesupreme secretary.

Additional information on bonding: l Bonding is on the office of the financial

secretary, not the person holding theposition

l Additional coverage is requested by writingto the supreme secretary

l Bonding on the covered officers is limitedto $125,000 of total coverage per council,including the provided $5,000 of coverageon each officer

l Bonding runs from March 1 to the end ofFebruary, and any charge for additionalcoverage is posted on the council accountannually in March or April. The charge isprorated if purchased at another timeduring the year

l Bonding coverage is applicable only tocouncils who have properly completed thetwo most recent council audits, which mustbe on file at the Supreme CouncilHeadquarters

annual Federal Information Return — Form 990 (U.S. Councils)All councils in the United States are exempt fromfederal income tax under the Internal RevenueCode, Section 501(c)(8). A group rulingrecognizing the exemption was obtained by theSupreme Council for itself and for its subordinateunits. The group ruling does not extend to homecorporations.

All councils in the United States must file one ofthe following IRS forms: l 990N — Gross receipts of $50,000 or less l 990EZ — Gross receipts over $50,000 and

up to $199,999 l 990 — Gross receipts of $200,000 and over

The Supreme Council insists that each councilcarry out its responsibility under this law. An IRSform must be filed by the 15th day of the fifth monthafter the end of your annual accounting period.Failure to file three consecutive years will result in aloss 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.

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officers online — Financial Secretary SectionThe Officers Online website, accessed from themain Knights of Columbus webpage, provides youwith access to your council’s membership rosterand financial statement. Your access to this websiteis granted once your appointment is approved bythe supreme knight. This site lets you keep track ofyour council’s progress for both membership andinsurance growth, which is useful informationtoward the earning of the Star Council Award.

In Officers Online, you will see a “Prospect” tab inwhich you can view Online Members who are“assigned” as prospects to your council. Once thecouncil has gone through the admissions process,and the member has taken his exemplification,they can transfer him by simply adding the dateread in the “Grand Knight Approval (Date Read)”section, and the ceremonial date in the “FinancialSecretary (Ceremonial Date)” section, and clickingthe update button. These two dates can be addedseparately, but once the ceremonial date is added,the transfer will be processed. Once the update issubmitted, the member will be automaticallytransferred into his new council. The council willnot need to submit a Form 100. If, for some reason,the Online Member is not going to transfer into theassigned council, the council may “reject” themember by clicking “reject” and selecting a reasonfrom the drop-down menu. Rejecting an OnlineMember for transfer will result in the memberreappearing in the “Unassigned” section of thestate’s “Prospect” tab. A rejection will not triggeran email to state officers.

After signing into Officers Online, as financialsecretary, you have the ability to order councilsupplies, which can be charged to your council’saccount. Click on Supplies Online to view thematerials available and place your order. Gift itemsare also available by clicking on the Knights Gearlogo, which brings you to knightsgear.com.Through this website, your council can also ordercustomized apparel (e.g. t-shirts with your council’sname and number).

Another resource available through Officers Onlineis the Officers’ Desk Reference. It provides answersto frequently asked questions about our name andemblem, home corporations, membership issues,tax issues, fraternal issues, council and assemblyissues and social communications. There’s a verygood chance that many of the questions you mighthave about some of the more challenging aspectsof being a financial secretary have been dealt withhere. Entries are regularly updated and expandedas new questions arise or additional informationbecomes available.

The Order’s accounting system and memberdatabase, Member Management/Member Billing,is also located in the Officers Online section of theOrder’s website. This system allows you tomanage financial transactions; create, edit andarchive receipts, vouchers, assessments andadjustments; maintain a list of accounts and sub-accounts, payee/payor lists and council definedsub-classes for billing (military, students, etc;),produce billing notices; and manage paymentsreceived from members.

The Member billing applicationThe Member Billing application works inconjunction with the Member Managementapplication.

Initial Setup for First-Time UsersIf your council has just started to use MemberBilling, there are a few steps that are requiredprior to generating an assessment.

Setting up your council’s billing information: l Billing Information — Member Billing allows

you to assess dues to members annually orsemi-annually only. The billing schedulemust be selected as calendar or fraternalyear. Also, once the billing frequency hasbeen established, the billing remittanceaddress needs to be selected — eitheryour council’s mailing address or thefinancial secretary’s mailing address.

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l Class List — This screen is where theamount of the council’s dues is entered.(The amount of annual dues for honorarymembers in the council is based on thesum of state and Supreme Council percapita taxes and other levies. The annualdues for honorary life members is specifiedin the Laws of the Order and cannot beupdated in Member Billing.)

l Subclass — Council subclasses can becreated for members for whom the councilwishes to reduce the dues amount. Forexample, a council may wish to waive orreduce dues for students. A subclass ofstudents can be added, along with the rateof the reduced dues. Once established,members associated with a subclass willneed to be assigned to the subclass on themember’s Billing Information screen,located in the Member Information section.

l Reason for Assessments — This is requiredif your council plans to assess members forany special or miscellaneous assessments.Reason for assessments can be added onthe Event/Assessments screen in thecouncil’s Billing Information screen.

Setting up the member’s billing information: l Member Class — Displays the member as a

regular, honorary, or honorary life member l Sub Class — Members may be assigned as

part of a sub class and eligible for reduceddues (military, student, etc.).

l Disability — Members that are on disabilityand noted as “Yes” on the member’s BillingInformation screen, will not be assesseddues. Nothing else is required to ensurethat they are not assessed.

l Do Not Assess — This provides the ability tonot assess dues for members who may havea special circumstance, such as financialhardship, where the council decides not toassess dues for a certain period. (Honorarylife or disabled members are not included inthe dues assessment process, so this option

does not need to be selected for thesemembers.)

l Do Not Send Bill — This provides theoption of not sending a billing notice tospecified members for any reason. (Themember will still be assessed, but a noticewill not be generated.)

l Delivery Preference — This identifies thepreferred method by which the memberwishes to receive his billing notice — mail,email or both.

l Language Preference — This allows abilling notice to be generated in a differentlanguage.

l Billing Address Information — This sectionallows the financial secretary to update amember’s contact information, including hisaddress, telephone number, fax numberand email address. These changes will alsobe reflected in Member Management toalert the Membership Records Departmentat the Supreme Council Headquarters.

Prior to generating the initial dues assessment, ifthere are members with an outstanding balancefor previous billing periods, these records shouldbe updated in the Member Ledger: l Billing Status — When a dues assessment

is processed from the Pending Assessmentscreen, the billing status for all memberswill be changed to “First Notice.” Formermembers that are listed in MemberManagement/Member Billing can bemanually changed to “Prior” or “Deceased”status.

l Adjustments — The Adjustment section onthe bottom of the Member Ledger screencan be used to generate a chargeadjustment for members with anoutstanding balance. Separate adjustmentsshould be added if a member owes moneyfor other assessments (initiation fee,miscellaneous fees, etc.). If a member haspaid dues or other assessments for future

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periods, a credit adjustment should beadded. Payment of dues should NOT berecorded here, but through the “DuesCollection Tool” found under the “Receipts”section of the Council Ledger. (This is thesame process as assessing new membersfor dues or initiation fees after they havebeen recorded at the Supreme CouncilHeadquarters and added to MemberManagement/Member Billing.)

billing MembersA dues assessment can be generated for all billablemembers on the “Enter Dues Assessment” screenby clicking on “Assessments” under the CouncilLedger section: l Billing Cycle — Dues can be billed for the

calendar year or the fraternal year. (Thedefault for the billing period ispredetermined by the billing frequency,which is selected in the “Billing Setup” section.)

l As of Date — All bills have a date thatindicates how much is owed at the time thedues were assessed. Dues can beassessed in Member Billing as early as 60days prior to the billing period. However,the “As of Date” cannot be set more than15 days prior to the billing period. The dateused for the “As of Date” when generatinga dues assessment also should be used forany special or miscellaneous assessments.

l Assess Dues — This will place the duesassessment in a “pending” status, whichcan be processed on the “PendingAssessments” screen. All special ormiscellaneous assessments should beassessed on the “Assess Other” screenbefore processing the dues assessment.

A special or miscellaneous assessment can begenerated for selected members using the“Assess Other” screen under “Assessments” in the Council Ledger section. l Charge To — This specifies who will be

assessed the additional charge and isselected by member type. (“All Billable” willassess all regular and honorary members;“All Members” will assess all regular,honorary and honorary life members;“Honorary” will assess only honorarymembers; and “Honorary Life” will assess only honorary life members).

l Voluntary or Mandatory — If an assessmentis a voluntary assessment, a notation willdisplay on the member’s bill showing thatthis assessment is voluntary and paymentis optional. Voluntary assessments requirea valid “Through Date.” A valid “ThroughDate” should be selected well in advanceof the last day of the billing cycle (i.e. ifusing a calendar year billing cycle, select adate of June 1 — well in advance of Dec.31). After this date, you have the ability toinitiate a process that will generate a credittransaction for all members that did not paythe voluntary assessment. Mandatoryassessments will remain on the MemberLedger until the member pays theassessment or the transaction is voided onthe Member Ledger.

l Reason for Assessment — This is arequired field, and if the “Reason forAssessment” does not appear in the dropdown list, it can be added on theEvent/Reason screen under the BillingInformation section.

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The council officers should continue tofollow the Proper Billing ProceduresIncluding Use of the ‘Notice of Intent toRetain’ (#1845a) instructions. This sectioninstructs the financial secretary on thesteps necessary to generate notices in theMember billing application and assumesthat all protocols under #1845a have beenfollowed.

l Assess Other — This will place any specialand miscellaneous assessments in apending status, which can be processed onthe Pending Assessments screen. All specialor miscellaneous assessments should beassessed on the “Assess Other” screenbefore processing the dues assessment.

All pending assessments can be posted to theMember Ledger from the “Pending Assessment”screen. When the “Process Assessment” isclicked, the billing status for all members willchange to “First Notice.”

Generating noticesOnce the pending assessments are processed,the First Notice can be generated from the“Notices” section of the Print Center in MemberBilling. (If the respective officers’ names ortelephone numbers do not display on the Notice,the data can be added on the “Council/AssemblyOfficers — Current Year” screen in MemberManagement.)

Notices can be sent via email, or printed andmailed, based on delivery preferences on themember’s Billing Information screen. There is alsoan option to generate a file copy of all Notices to members.

Member Billing also provides the ability to emailan individual Notice to members who have beenadded to Member Management/Member Billing.Once the member delivery preference is set toemail or both, an “Email Notice” icon will appearon the Member Ledger or member’s BillingInformation screens.

Thirty days after the “As of” date, you can updateall members currently in the “First Notice” statusto “Second Notice” status by using the “UpdateStatus” screen under the Assessment section ofthe Council Ledger. Notices can be sent via email,or printed and mailed, based on the delivery preferences on the Member Billing Informationscreen. Second Notices can also be saved electronically.

At this time, the Financial Secretary will providethe contact information and amount due fromeach member in arrears to the retentioncommittee for personal follow up.

Thirty days after the “As of” date of the SecondNotice status, the Financial Secretary can updateall delinquent members to “Knight Alert” status by using the “Update Status” screen under theAssessment section of the Council Ledger. The Knight Alert letter being sent to the memberexplains how his membership is in danger ofbeing forfeited as a result of unpaid dues. TheKnight Alert letter cannot be sent electronicallybecause it requires the signature of the grandknight.

Fifteen days after the “As of” date of the “KnightAlert” status, all members currently in “KnightAlert” status can be updated to “Intent to Retain”status by using the “Update Status” screen underthe Assessment section of the Council Ledger. A Notice of Intent to Retain can be generated inthe Billing section of the Print Center, informingthe member that his delinquency has put hismembership in jeopardy. Copies of the Notice ofIntent to Retain must be mailed or emailed to theSupreme Council. Sixty days after the Notice ofIntent to Retain has been filed, a Form 100 markedfor suspension will be required to be filed at theSupreme Council to actually remove a memberfrom the council’s roster.

Individuals who have been assessed for thecurrent billing period, but have become formermembers, need to have any outstandingbalances and their billing status manually updatedon the Member Ledger screens.

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ordinary, embossed “travel” MembershipCards shall be issued for all currentmembers on an annual basis. In order togain admission to a Knights of Columbusmeeting, a member should present acurrent travel card.

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 in arrears• 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 in arrears• 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 MembersUnder the “Receipt” section of the Council Ledger,there is a “Dues Collection Tool” to recordmembers’ payments. The “Dues Collection Tool”is used if the member pays his outstandingbalance in full.

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

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

A “Report of Receipts” is available under theTreasurer Reports in the Print Center of MemberBilling. There are four reports available: two forpending receipts and two for posted receipts.(Posted receipt reports will display signature lines

for the financial secretary and treasurer, whichserve as a record that the treasurer receivedthese moneys. If the treasurer’s name does notdisplay on this report, add his data on the“Council Officers — Current Year” screen inMember Management.)

Processing Receipts From other SourcesThese moneys can be recorded in Member Billingusing the “Enter Receipt” screen under theCouncil Ledger. l Member or Payor — Prior to entering the

receipt information, you must search for amember or a payor. (A payor is anindividual or entity that is not a member ofthe council. A payor can be added toMember Billing on the “Add a Payee/Payor”screen under Billing Information).

Once a search has been conducted, the resultswill appear in the “Search Results” box to theright. Click on the desired member or payor sothat it is highlighted in a blue banner. Click the“Select” button to populate the date andmember/payor in the “Enter Receipt” section onthe bottom of the screen. Continue to enter theremaining information.

Once the “Save” button is clicked, the transactionis placed in “Pending” status. Pendingtransactions can be processed on the “PendingReceipts” screen.

Generating Membership CardsMembership cards can be generated for membersusing the “Membership Card” section of the PrintCenter in Member Billing. Print membership cardsusing the “By Member Type” feature, therebyhaving these cards ready for presentation whenthe member remits his payment for dues.

Membership Card (#4817) stock paper can beordered through Supplies Online. (Cards comeeight to a sheet with 25 sheets to a package, for atotal of 200 cards.) There are four options inMember Billing for printing membership cards:

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l By Member Type — which can be classifiedas: All Billable, All Members, Regular,Honorary, Honorary Life, or Members onDisability

l By all members whose dues becamecurrent between specified dates

l By Ceremonial Dates l Use the Membership Card Template for a

small group of members or for newmembers who have not been added toMember Billing

Institution of PaymentA Supreme Council or state council obligationDOES NOT require council approval. Receipt ofthe monthly Council Statement from the SupremeCouncil Headquarters serves as the official noticethat the amount owed is due and payable. Thesame is true of a billing statement received fromthe state council.

When the council approves any bill other than aSupreme Council or state council assessment, thebill must be turned over to the financial secretary.He then issues the “Order on Treasurer” voucher.

order on Treasurer (vouchers)After a bill has been properly approved forpayment, the financial secretary initiates issuance ofa check by generating a voucher in Member Billingunder the “Voucher” section of the Council Ledger.He then prints a “Report of Vouchers” for the grandknight’s signature, which authorizes the treasurer toissue the check.

Trustees, when conducting the semiannual audit,should compare the Report of Vouchers to thechecks issued that are recorded in the bankstatement and check book.

Suspension of CouncilThe financial secretary should be aware of theneed to make payments to the Supreme Councilwithin the time limits allowed under Section 156 ofthe Laws of the Order.

Failure to make payment within the time limit willresult in suspension of the council. When acouncil is suspended, the board of directorsrequires the supreme secretary to send a Noticeof Suspension to the grand knight, with copies tothe district deputy and state deputy.

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

Levy Date Type of Levy Pay byJanuary 1 Per Capita April 10

Catholic Adv/COLJuly 1 Per Capita October 10

Catholic Adv./COL

Supplies — 40 days after the first of the month inwhich the charge appears on the monthly CouncilStatement.

A council is automatically suspended wheneverthere is an arrearage of $50 or more in any of theabove accounts.

Even though the council has a 100-day graceperiod to remit payments, automatic notices to thegrand knight, financial secretary and districtdeputy will be generated between 58 and 60days of the date of the assessment. This notice isa reminder to remit the council’s payment in orderto avoid automatic suspension.

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

Record RetentionIt is recommended that the following councilrecords be retained as follows: l Current member Membership Document

(#100) (new members, re-entry transactionsfor members who did not join through yourcouncil originally): 7 years retention

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l Current member Membership Document(#100) (all except above and data changes): 3 yearsretention

l Current member Membership Document(#100) (data changes): verify processing ofinformation at the Supreme CouncilHeadquarters, then destroy

l Former member Membership Document(#100) (all transactions): verify processing ofinformation at the Supreme CouncilHeadquarters, then destroy

l Financial and business records (e.g. bankstatements, contracts, purchase orders, invoices, etc.): 10 years retention

l Tax forms: 7 years minimum, 10 yearsrecommended retention

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

Report of officer electionsAs financial secretary, you are responsible forcompleting and submitting the Report of OfficersChosen for the Term (#185). Under the Laws of theOrder, elections for council officers shall be heldbetween May 1 and June 15 of each year (collegecouncils — March 1 to June 1). Those duly electedofficers are to be reported to the Supreme CouncilHeadquarters by June 30.

The preferred method of reporting the newlyelected council officers is through the MemberManagement application located on the Knightsof Columbus website in the Officers Onlinesection. If reporting through MemberManagement prior to July 1, make sure you are onthe “Next Fraternal Year” screen and simply followthe instructions included on the site forcompleting the form. There is no need to file apaper report with the Supreme CouncilHeadquarters after using this method of reportingthe newly elected officers.

Monthly StatementAs financial secretary, you should have anunderstanding of the effect of reported membership

transactions on per capita, Catholic advertising andthe Culture of Life levies and with the chargesaccrued by your council for supply orders. Thecouncil statement, sent out monthly, provides thisinformation. It reflects changes in membership andreports information on your council’s financialobligations to the Supreme Council.

l The council statement should be retainedby you as part of your permanent files. It also should be reviewed by the grandknight and read at the next council meeting.

l The account balances - per capita, Catholicadvertising, Culture of Life and supplies -should be treated as individual amountsowed by your council. Credit balancesoften appear in the per capita and Catholicadvertising columns because of inactiveinsurance member credits, back-datedtransactions and miscellaneousadjustments. These credits may cause anoverall credit balance in the account. Creditbalances in the per capita and Catholicadvertising/Culture of Life columns willautomatically transfer between accounts tooffset charges. Supply credits are onlyused to offset future supply charges.

l Credits for assessments may be applicablein the case of member suspensiontransactions. On the date a suspensiontransaction is processed by the SupremeCouncil, there is a 130 day look-backperiod. If an assessment date (Jan. 1 or July1) falls within this period, a credit of $3.25 isissued to the council.

l Councils are assessed $1.75 for per capita,$.50 for Catholic advertising each Jan. 1and July 1 on the total membership in thecouncil, including inactive and honorarymembers. Honorary life and members ondisability are excluded from theassessment.

l Councils are assessed $1.00 for the Cultureof Life fund each Jan. 1 and July 1.Honorary, honorary life, inactive membersand members on disability are excludedfrom this assessment.

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Member Data ChangeChanges in personal, contact (including emailaddress), or membership information should bemade electronically by using the MemberManagement Application. Once updated in Member Management, there is no need to sendinformation to the Supreme Council in paper format.By maintaining correct contact information —especially email addresses — allows for theuninterrupted flow of information from the Supreme and State Councils to each member.Financial Secretaries are highly encouraged toensure that member contact information isupdated on a yearly basis.

Death of a MemberA member’s death can be reported in MemberManagement on the member’s PersonalInformation screen. Note that the next of kininformation can only be reported if the date ofdeath is on file in Member Management.

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Thank you for taking on the responsibility of being a leader in the Knights of Columbus. Through yourexample of faith, charity and sound judgment, you provide the model to follow. Your leadership can set atone that is open and engaging, which will ensure growth in charitable outreach and membership.

This resource book will provide you with practical information and instructions for success in conductingand growing charitable activities and increasing membership. Additional information is also availablethrough the Officers’ Desk Reference and on the Knights of Columbus Website kofc.org.

This Resource book supersedes all previously published material relating to the topics herein.

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