2015-06-22T15:47:33-07:00 2014-12-31 990 2014-01-01 410182070 CATHOLIC UNITED FINANCIAL CATH 6514900170 3499 Lexington Ave N Arden Hills MN 55126 Michael Ahles Sr. VP and Secretary/Treasurer 6517654124 2015-06-22 2014 2016-03-07 17:11:31Z Michael Ahles Sr VP Secretary Treas 3499 Lexington Ave N Arden Hills MN 55126 88247274 0 0263 X www.catholicunited.org X 1878 MN To provide our members with life insurance, annuities and other products that contribute to the financial well-being and support the Roman Catholic Church in extending the faith. 9 7 122 0 0 0 0 0 47036610 48575780 37407568 38310124 1373741 1361370 85817919 88247274 897837 944524 68714665 70947944 7810522 7163240 0 0 0 8013002 8443372 85436026 87499080 381893 748194 806197188 833736867 777809290 807347480 28387898 26389387 Catholic United Financial exists as a not-for-profit fraternal benefit society to: Promote fraternalism and charity among its members through a Local Council system and a representative form of goverment. Provide its members with life insurance, annuities and other products, services and benefits that will contribute to the financial well-being of our members and their families. Support the Roman Catholic Church in extending the faith, especially by commending and encouraging Catholic schools and religious education. Strive to be a good employer and contributing member of our community. 0 0 71132809 0 0 Benefits totaling $71,132,809 were paid to or for members in accordance with our mission to provide life insurance, annuities and other products, services and benefits that contribute to the financial well-being of our members and their families. $8,004,204 was paid in death benefits, $62,949,740 was paid for annuity, supplementary contract and other policy benefits, and $178,865 was paid for post-high school tuition scholarships to members. 565817 In accordance with our mission to promote fraternalism and charity among our members through a local council system and representative governance, $565,817 was provided to our Councils and communities. Of this amount, $74,719 was spent to conduct our annual Delegate Convention and $58,898 was spent conducting Gather4Good events. Gather4Good is a volunteer, family oriented service project started in 2010 to assemble personal care kits for people in the local community experiencing homelessness. 544021 In accordance with our mission to support the Roman Catholic Church in extending the faith, commending and encouraging Catholic schools and religious education, Fraternal benefits totaling $502,439 were spent during the year. Of this total, $118,934 was provided to Catholic Dioceses and parishes, $80,212 was granted to organizations supportive of extending Catholic teachings, $158,595 was spent as operating support for our Foundation, and $144,698 was spent supporting Catholic education, including the Annual Catholic Schools Raffle. This Raffle has raised over $4 million for over 100 Catholic schools since its inception six years ago. 0 0 0 72242647 0 0 0 0 0 0 0 0 1 1 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 62 0 1 122 1 0 0 0 0 0 0 X 9 7 0 0 1 0 1 1 1 1 1 0 1 1 1 1 1 1 0 1 1 1 0 X Catholic United Financial 6514900170 3499 Lexington Ave N Arden Hills MN 551268017 Harald Borrmann President/Chairman 37.5 0 X X X X X 345805 0 58083 Michael Ahles Senior VP and Secretary/Treasurer 37.5 0 X X X X X 300972 0 33713 Joseph Kueppers Board Member 3 0 X 19700 0 0 Robert F Krattenmaker Board Member 3 0 X 18100 0 0 George Gmach Board Member 3 0 X 17600 0 0 John Maile Board Member 3 0 X 16700 0 0 Michael J Schmitz Board Member 3 0 X 16000 0 0 Renee Brod Board Member 3 0 X 16000 0 0 Patricia Kasella Board Member 3 0 X 15300 0 0 Patrick Brown Regional Sales Manager 37.5 0 X 217390 0 57947 John Tetzloff Advanced Case Specialist/Trainer 37.5 0 X 168598 0 41588 Susan Stenzel Sales Rep 37.5 0 X 143708 0 41199 Gregory Gall Sales Rep 37.5 3 X 143597 17141 30904 Peter Ryan Sales Rep 37.5 0 X 143510 0 37387 1582980 17141 300821 21 0 1 0 Stinson Leonard Street 150 South Fifth Street Suite 2300 Minneapolis MN 55402 Legal Services 375643 Heidorn Consulting 4825 N Scott Street 116 OHare Aerospace Center Schiller Park IL 60176 Actuarial and Consulting Services 204248 United Business Mail 405 35th Ave NE Minneapolis MN 55418 Mail Service 129436 Sovran 2915 Commers Drive Suite 100 Eagan MN 55121 Computer Maintenance Assitance 119671 Forum Communications Printing 4601 16th Ave No Fargo ND 58102 Printing 109753 7 0 Premium Income 900099 48094454 48094454 0 0 Program Related Expenses 524113 481326 481326 0 0 0 0 0 0 48575780 37594635 0 0 37594635 0 0 0 0 0 0 0 0 43906 0 0 0 43906 0 43906 0 0 43906 715489 0 0 0 715489 0 715489 0 0 715489 Other Investment Income 900001 1317464 0 0 1317464 0 0 0 0 1317464 88247274 48575780 0 39671494 707859 707859 236665 236665 70947944 70947944 857972 857972 3871354 100156 3771198 899106 5056 894050 974030 14671 959359 560778 6157 554621 452790 452790 277984 9800 268184 196457 5967 190490 569611 5483 564128 332034 1894 330140 204763 3784 200979 328087 328087 141903 3468 138435 192939 75778 117161 621028 621028 95146 95146 Sales Expenses 4227306 116865 4110441 0 Operational Expenses 697308 1100 696208 0 All Other Expenses 106016 0 106016 0 87499080 72242647 15256433 0 1181684 2173566 8096887 6890481 0 0 4814 5832 0 0 0 0 6957934 6605907 239051 1295713 0 0 8174994 5401660 3226666 2773334 754606953 769973698 23321052 35260543 8562147 8757793 806197188 833736867 3968192 1539913 773841098 805807567 777809290 807347480 X 0 0 0 0 28387898 26389387 28387898 26389387 806197188 833736867 X 748194 -2746705 X 1 X 1 X 1 0 3593221 1577430 328319 152285 178415 16 5168254 3020491 733315 193511 175693 178403 0 3593221 2157027 916452 106923 0 159911 0 3020491 982546 1223754 160743 0 206699 3317 2157027 880580 116776 54462 40491 25394 3387 982546 0 0.21 0.79 0 0 0 0 0 6692805 2816 4089968 2605653 0 0 0 0 1447994 31379 1311692 167681 0 0 0 0 2773334 0 Life and Annuity Reserves 805807567 805807567 86050889 0 0 0 -1444488 -1444488 87495377 0 751897 751897 88247274 85642080 0 0 0 -1073026 -1073026 86715106 0 783974 783974 87499080 Schedule D, Part V, Line 4 To support financially the spiritual, educational, and social needs of the Catholic community where Catholic United Financial has a presence. Schedule D, Part XI, Line 2d $1,444,488 Investment Expenses Schedule D, Part XI, Line 4b Statutory Accounting Rules are different from the Form 990 Rules. $362,620 RE Depreciation, ($408,112) Rent Expense, $304,096 Profit on Sale of Ledger Assets, $181,138 Profit on Sale of Bonds, $79,970 Gain on Surplus Notes, $150,285 Gain on Sale of Mutual Funds, and $80,900 LLC Income. Schedule D, Part XII, Line 2d $1,329,606 General Expense to Investment Expense, $114,882 Insurance, License and Taxes Expense and ($407,112) Rent Expense,Pre-paid expense 35,653 and $3 Rounding. Schedule D, Part XII, Line 4b $340,243 Refund to Members, $81,111 LLC Expenses, and $362,620 RE Depreciation 1 Our Lady of the Prairie Catholic Church and School 215 Chestnut Street Belle Plaine MN 56011 416027712 170(f)(8) 7500 Building project/Capital campaign Rochester Catholic Schools Lourdes Building Our Future 1710 Industrial Drive NW Rochester MN 55901 410740119 501(c)(3) 8333 Building Project Catholic United Financial Foundation 3499 Lexington Ave N St Paul MN 55126 411893463 501(c)(3) 50000 Match donations made to the Msgr Schuler Fund Catholic United Financial Foundation 3499 Lexington Ave N St Paul MN 55126 411893463 501(c)(3) 9574 Disaster relief equipment and administrative expenses. 3 1 Post High School Scholorships 529 178865 0 Local Council Fraternal Secretary Allowances (stipends) 134 51800 0 Member Assistance Grants 6 6000 0 Schedule I, Part I, Line 2 All grants are approved by the Board of Directors. X 1 1 X X X X X 0 0 0 Harald Borrmann President/Chairman 339900 0 0 0 11501 0 0 0 58083 0 409484 0 0 0 Michael Ahles Senior VP and Secretary/Treasurer 297975 0 0 0 9433 0 0 0 33713 0 341121 0 0 0 Patrick Brown Regional Sales Manager 203590 0 10925 0 6811 0 0 0 57947 0 279273 0 0 0 John Tetzloff Advanced Case Specialist/Trainer 148235 0 5000 0 6083 0 0 0 41588 0 200906 0 0 0 Susan Stenzel Sales Rep 130920 0 10368 0 6356 0 0 0 41199 0 188843 0 0 0 Peter Ryan Sales Rep 133325 0 7107 0 7014 0 0 0 37387 0 184833 0 0 0 Gregory Gall Sales Rep 132446 17141 8283 0 6804 0 0 0 30904 0 178437 17141 0 0 Schedule J, Part I, Line 1a Spouses of officers are allowed to travel as part of Catholic United's expense to a limited number of conferences. Schedule J, Part I, Line 3 Our officer's salaries are reviewed annually by the Board of Directors Compensation Committee...and we use industry salary comparisons supplied by the Employers Association. Form 990, Part VI, Section A, Line 4 Amendments to the Constitution and Bylaws of Catholic United Financial At the regular Annual Convention of Catholic United Financial held at the River's Edge Convention Center, St. Cloud, Minnesota on August 2, 2014, a majority of delegates being present, the following changes were made to the Constitution and Bylaws: Article IX - Location of Principal Office, changing the city from "St. Paul" to "Arden Hills." The principal office of the Association shall be located at 3499 Lexington Avenue North, Arden Hills, Minnesota, 55126. Addition of Article X and XI Article X Any action required or permitted to be taken by the Board of Directors may be taken by written action signed by two-thirds of the members of the Board of Directors, except as to those matters that require Member approval, in which case the written action must be signed by all Directors. In undertaking any written action, reasonable efforts must be taken to notify all Directors of its text and effective date prior to the time required for its completion. Article XI A Director of the corporation shall not be personally liable to the Association, Members or delegates for monetary damages for breach of fiduciary duty as a Director. The foregoing shall not be deemed to eliminate the liability of a Director (1) for any breach of the Director's duty of loyalty to the Association, its Members or delegates; (2) for acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law; (3) for any transaction from which the Director derived an improper personal benefit; or (4) for any act or omission occurring prior to the date when the provision eliminating or limiting liability becomes effective. Any repeal or modification of this section shall not adversely affect any right or protection of a Director existing at the time of such repeal or modification. Bylaw 11 - Increasing the Delegate stipend from $50.00 to $75.00 in the first line Delegates shall receive a stipend of $75.00 for attending all sessions of the Delegate Convention. Bylaw 30 - Change to the first sentence The Association shall completely indemnify to the full extent now or hereafter permitted by law, any person who was or is a party or is threatened to be made a party to any contemplated, pending, or completed action, suit or proceeding, wherever the same may be brought, and whether civil, criminal, administrative, or investigative, by reason of fact that such person is or was a Director, Officer, or employee of the Association, not a local council, or of any firm, corporation, or organization which the person served in any capacity at the request of the Association, against all expenses, attorney's fees, judgments, costs, fines, and amounts paid in settlement actually and reasonably incurred by such person in connection with the investigation, defense, handling, negotiation and settlement of any such action, suit or proceeding. Bylaw 38(b)(1) - Add "breach of fiduciary duty" to the fourth sentence. The claims to which that sentence refers include all claims, actions, disputes, and grievances of any kind or nature whatsoever, including, but not limited to, claims based on breach of contract, fraud, misrepresentation, violation of statute, breach of fiduciary duty, discrimination, denial of civil rights, conspiracy, defamation, and infliction of distress, against the Association or its Directors, Officers, sales representatives or other employees. The following changes were also approved: Capitalize all references to "member," when referring to a policyholder throughout the Constitution and Bylaws. Change all references from "he/she" and "his/hers" to "they" and "their" as appropriate in the Constitution and Bylaws. The changes listed above are effective 1/1/2015. Form 990, Part VI, Section A, Line 6 Catholic United Financial is a not-for-profit fraternal life insurance company that is owned by its members under IRC Section 501(c)(8), Fraternal Benefit Society. Form 990, Part VI, Section A, Line 7a Delegates of the membership vote for officers and board members. Form 990, Part VI, Section A, Line 7b Per our Constitution, certain fundamental decisions must be approved by the membership. These would include organizational changes, name changes, etc. Form 990, Part VI, Section B, Line 11b Catholic United Financial has a process it follows for reviewing the Form 990. It starts with a review of the Governance Checklist. Followed by an analysis of the 990 draft by the President and Sr. VP Secretary/Treasurer. Once the draft is approved by management, it is posted to the Board of Directors secure website for their review. The Board reviews the Form 990 and members are required to sign off on the form prior to filing. Form 990, Part VI, Section B, Line 12c The Conflict of Interest Policy is reviewed annually or as needed throughout the year. Form 990, Part VI, Section B, Line 15 President and Secretary Treasurer position salaries are reviewed annually by the Board of Directors Compensation Committee. Form 990, Part VI, Section C, Line 19 The organization makes our governing documents available via printed Constitution and Bylaws. The financial statement is filed with the State of Minnesota and made available to the public. The Conflict of Interest Policy is available by request only. Form 990, Part XI, Line 9 Change in Non-Admitted Assets $916,101, Change in Asset Valuation Reserve ($718,451), Change in Net Unrealized Capital Gains $377,230, and Change in Surplus ($3,357,237), and Pre-Paid Expense - Non Admitted $35,653 Catholic United Financial General Agency LLC 3499 Lexington Ave N Saint Paul MN 55126 411906554 Established to sell nonproprietary long term care products to our members. MN 80900 25432 Catholic United Financial Catholic United Financial Foundation 3499 Lexington Ave N Saint Paul MN 55126 411893463 Charitable foundation assisting members with their charitable giving. MN 501(c)(3) Public Charity N/A 0 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 Catholic United Financial Foundation b 50000 Cash Catholic United Financial Foundation o 100077 Actual expenses incurred.