IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF WISCONSIN In re: ARCHDIOCESE OF MILWAUKEE, Debtor. Case No. 11-20059-svk Chapter 11 Hon. Susan V. Kelley BAKER TILLY VIRCHOW KRAUSE, LLP S FINAL FEE AND EXPENSE APPLICATION COVER SHEET NAME OF APPLICANT: NAME OF CLIENT: Baker Tilly Virchow Krause, LLP Archdiocese of Milwaukee PERIOD COVERED: January 4, 2011 through November 30, 2015 TYPE OF APPLICATION: Monthly Interim X Final Paul F. Batchelor Baker Tilly Virchow Krause, LLP 777 E. Wisconsin Avenue, 32 nd Floor Milwaukee, Wisconsin 53202 Telephone: (414) 777-5500 Facsimile: (414) 777-5555 Email: paul.batchelor@bakertilly.com Case 11-20059-svk Doc 3399 Filed 02/01/16 Page 1 of 8
SECTION I: FEE SUMMARY To Date: Current Period Total Fees Requested: $378,028.59 $0.00 Total Disbursements Requested: $2,536.77 $0.00 Total Fees Previously Allowed: $378,028.59 $0.00 Total Disbursements Previously Allowed: $2,536.77 $0.00 Total Previously Received by Applicant: $269,772.70 $0.00 Case 11-20059-svk Doc 3399 Filed 02/01/16 Page 2 of 8
IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF WISCONSIN In re: ARCHDIOCESE OF MILWAUKEE, Debtor. Case No. 11-20059-svk Chapter 11 Hon. Susan V. Kelley FINAL APPLICATION OF BAKER TILLY VIRCHOW KRAUSE, LLP FOR ALLOWANCE AND PAYMENT OF COMPENSATION AND REIMBURSEMENT OF EXPENSES AS ACCOUNTANTS FOR THE DEBTOR FOR THE PERIOD JANUARY 4, 2011 THROUGH NOVEMBER 30, 2015 TO: THE HONORABLE SUSAN V. KELLEY, United States Bankruptcy Judge Pursuant to 11 U.S.C. 330, 331 and 503(b)(1)(A), Rule 2016 of the Federal Rules of Bankruptcy Procedure ( Fed. R. Bankr. Proc. ), Rule 2016 of the Local Rules of the United States Bankruptcy Court for the Eastern District of Wisconsin (the Local Rules ), the Order Granting Debtor s Motion to Establish Procedures for Interim Compensation and Reimbursement of Expenses of Professionals (the Interim Compensation Procedures Order ), and the Order Granting Modification of Debtor s Motion to Establish Procedures for Interim Compensation and Reimbursement of Expenses of Professionals (the Amended Compensation Order ), Baker Tilly Virchow Krause, LLP ( BTVK ), court appointed accountants for the Archdiocese of Milwaukee ( Debtor ) respectfully makes this application for approval of its final fees in the amount of $378,028.59 and final expenses in the amount of $2,536.77 as accountants for the Debtor for the period from January 4, 2011 through November 30, 2015 (the Fee Period ). Paul F. Batchelor Baker Tilly Virchow Krause, LLP 777 E. Wisconsin Ave, 32 nd Floor Milwaukee, Wisconsin 53202-5313 Telephone: (414) 777-5500 Facsimile: (414) 777-5555 Email: paul.batchelor@bakertilly.com Case 11-20059-svk Doc 3399 Filed 02/01/16 Page 3 of 8
In support of this application, BTVK respectfully states as follows: INTRODUCTION 1. BTVK is a limited liability partnership with its principal place of business located at 777 E. Wisconsin Avenue, 32 nd Floor, Milwaukee, WI 53202. 2. The Debtor filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code on January 4, 2011. The Debtor is authorized to continue to operate and manage its properties as a debtor in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. 3. By an Order dated January 27, 2011, BTVK was employed and appointed as Debtor s accountants to represent the Debtor in this proceeding. SUMMARY OF SERVICES PERFORMED DURING THE COMPENSATION PERIOD 4. As is reflected in the Fee and Expense Summary Cover Sheet (the Cover Sheet ), the use of which is recommended by the Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed Under 11 U.S.C. 330 (the Guidelines ) adopted by the Executive Office of the United States Trustees, BTVK rendered 2,188.89 hours of audit and tax services to the Debtor during the Fee Period. Based on the nature of the services rendered, the time required, the value of the services to the Debtor and the estate, and the cost of comparable services other than in a case under the Bankruptcy Code, the compensation for these services should not be less than $378,028.59. This total presents 2,188.89 hours of BTVK partner, manager and staff time. The hourly rate for each partner, manager and staff that performed services for the Debtor was set forth in the interim fee applications. 5. Exhibit A, attached hereto, is a narrative generally explaining the work performed by BTVK on behalf of the Debtor during the Fee Period. 2 Case 11-20059-svk Doc 3399 Filed 02/01/16 Page 4 of 8
6. BTVK expended a total of $2,536.77 for reasonable and necessary expenses in connection with its service to the Debtor for the Fee Period. In accordance with Local Rule 2016(a)(3), the expenses incurred are set forth in the billing statements set forth in Exhibit B. 7. BTVK submits that the fees requested herein are reasonable and necessary given the facts and circumstances of this case, are in the best interest of the estate, and are comparable to the costs and services attendant to other cases under the Bankruptcy Code. 8. BTVK has exercised billing judgment in its review of its time and activity schedules and reduced its total compensation requested to eliminate charges for duplicate services and work which might be considered of less than full value to the estate. BTVK has not eliminated all conference and multiple review time across the board, because in all instances where such compensation is sought, BTVK believes such compensation is justified due to the extraordinary complexity of both the facts and account issues involved in this case as well as the time constraint, under which BTVK has had to perform. BTVK IS A DISINTERESTED PERSON AND HOLDS NO ADVERSE INTEREST 9. All professional services for which allowance of compensation is requested were performed by BTVK on behalf of the Debtor and not on behalf of any other entity or person. BTVK owns neither a claim against, nor an interest in the Debtor, nor has a beneficial interest, directly or indirectly, been acquired or transferred by BTVK or for BTVK s benefit since the commencement of the case. BTVK represents no interest adverse to the Debtor with respect to matters upon which it is engaged and BTVK is a disinterested person under 101(14) of the Bankruptcy Code. 3 Case 11-20059-svk Doc 3399 Filed 02/01/16 Page 5 of 8
10. No agreement or understanding exists between BTVK and any other person or entity for the sharing or compensation received or to be received for services rendered in connection with these proceedings, except that fees will be shared with other members of BTVK as permitted by Fed. R. Bankr. Proc. 2016 and section 504 of the Bankruptcy Code. REQUEST FOR FINAL COMPENSATION 11. BTVK previously applied for interim compensation for services rendered and reimbursement of expenses incurred in this case for the period from January 4, 2011 to November 30, 2015, at which time BTVK was awarded its requested fees and expenses with the exception of the ninth Interim Fee Application of BTVK [Dkt. No. 3387] which has not reached a deadline for the filing of objections. NOTICE 12. This fee request and notice shall be served on the Notice Parties pursuant to the Case Management Order entered by the Court on January 7, 2011. 4 Case 11-20059-svk Doc 3399 Filed 02/01/16 Page 6 of 8
WHEREFORE, Baker Tilly Virchow Krause, LLP respectfully requests that this Court enter an Order in the form attached hereto as Exhibit B, (i) approving final compensation of fees of $378,028.59 incurred by the Debtor and expenses of $2,536.77 which is 100% of the expenses incurred by the Debtor, for the period January 4, 2011 through November 30, 2015, and (ii) granting such other relief as this Court deems just and proper. Dated this 13th day of January, 2016. ARCHDIOCESE OF MILWAUKEE Debtor and Debtor-in-Possession by its accountants, Baker Tilly Virchow Krause, LLP POST OFFICE ADDRESS: 777 E. Wisconsin Avenue, 32 nd Floor Milwaukee, WI 53202 Telephone: (414) 777-5500 Facsimile: (414) 777-5555 Email: paul.batchelor@bakertilly.com By: Paul F. Batchelor Certified Public Accountant License No. 7874-1 5 Case 11-20059-svk Doc 3399 Filed 02/01/16 Page 7 of 8
EXHIBIT A Summary of Work Performed BTVK has provided substantial audit, tax and accounting services relating to bankruptcy matters for the Debtor. The efforts of BTVK during the Fee Period were involved in the following primary activities: a. Preparation of Federal tax returns for the years ended June 30, 2011, 2012, 2013 and 2014, research relative to post-bankruptcy accounting, planning, preliminary and final fieldwork, financial statement preparation, research, and review procedures related to the annual audits for the years ended June 30, 2011, 2012, 2013, 2014 and 2015. Work for the audit was performed by Paul Batchelor (Engagement Assurance Partner), Amy Jeninga (Engagement Assurance Senior Manager), David Drake (Engagement Manager) and other professional and clerical staff. Case 11-20059-svk Doc 3399 Filed 02/01/16 Page 8 of 8
IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF WISCONSIN In re: ARCHDIOCESE OF MILWAUKEE, Debtor. Case No. 11-20059-svk Chapter 11 Hon. Susan V. Kelley ORDER APPROVING THE FINAL APPLICATION OF BAKER TILLY VIRCHOW KRAUSE, LLP FOR ALLOWANCE AND PAYMENT OF COMPENSATION AND REIMBURSEMENT OF EXPENSES AS ACCOUNTANTS FOR THE DEBTOR FOR THE PERIOD JANUARY 4, 2011 THROUGH NOVEMBER 30, 2015 Upon consideration of the Final Application of Baker Tilly Virchow Krause, LLP for Allowance and Payment of Compensation and Reimbursement of Expenses as Accountants for the Debtor for the Period January 4, 2011 through November 30, 2015 (the Application ), pursuant to 11 U.S.C. 330, 331 and 503(b)(1)(A), Rule 2016 of the Federal Rules of Bankruptcy Procedure, Rule 2016 of the Local Rules of the United States Bankruptcy Court for the Eastern District of Wisconsin, and pursuant to the Order Granting Debtor s Motion to Establish Procedures for Interim Compensation and Reimbursement of Expenses of Professionals; and the Court having jurisdiction pursuant to 157 and 1334 of Title 28 of the WHD/12271579.1 Case 11-20059-svk Doc 3399-1 Filed 02/01/16 Page 1 of 2
United States Code to consider the Application and the relief requested therein; and venue being proper in this Court pursuant to 1408 and 1409 of Title 28 of the United States Code; and it appearing that proper and adequate notice of the Application has been given and that, no other or further notice is necessary; and the Court having determined the fees allowed hereby represent reasonable compensation for actual and necessary services rendered by the application and that the expenses allowed hereby represent actual and necessary expenses incurred by the applicant in the performance of its duties in this Chapter 11 case; and the Court having determined that the legal and factual bases set forth in the Application establish just cause for granting the relief requested: IT IS HEREBY ORDERED THAT: 1. The Application is APPROVED. 2. The fees and expenses requested in the Application, including any and all holdbacks, are allowed. 3. To the extent not previously paid, the Archdiocese of Milwaukee is hereby authorized to pay Baker Tilly Virchow Krause, LLP one hundred percent (100%) of the fees and one hundred percent (100%) of the expenses allowed. 4. This Order shall be effective immediately upon is entry. 5. This Court shall retain jurisdiction to hear and determine all matters arising from or related to the implementation and enforcement of this Order. ##### WHD/12271579.1 2 Case 11-20059-svk Doc 3399-1 Filed 02/01/16 Page 2 of 2