Diocese of Rhode Island
Commission on Finance
Meeting, April 12, 2011
Higgins Room
Present: Robert Batchelor; Robert Bergstrand; Brian Ehlers; The Rev. Dcn. Edwin Hallenbeck; Scott Nicholson; The Rt. Rev. Geralyn Wolf; Jamie Worrell.
Also present: Canon Ty Creason; Ronald Turnbull.
The meeting was called to order at 10:00 am by Chair Nicholson.
Opening prayer was offered by Bishop Wolf.
The Minutes of the meeting of March 8, 2011 were approved as distributed.
Treasurer’s Report for March 2011 was reviewed by Mr. Batchelor noting there are some timing issues where income and expenditures do not take place in parallel. Thru the first quarter financial operations are running well. The Treasurer stated that 24 churches have not yet submitted Parochial Reports for 2010, due January 31st, or when approved by the Vestry. This material includes the 2012 Apportionment Worksheet, making it very difficult to estimate 2012 Apportionment income to the Diocese. It appears that apportionment income is essentially flat to -1%, with Program and Budget Committee projecting $150,000 lower income for each of the next three years.
There followed a lengthy discussion of why Parochial Reports are slow to come in. It was agreed that we need to encourage/enforce the requirement of timely filing. This is important to the churches and to the Diocese. It was suggested that we request an individual be responsible in each church for preparation and submission of Reports. COF will provide a training workshop. COF will inform Council of this need.
Mr. Turnbull distributed a list of Parochial Reports received in 2011, noting 24 churches with no Reports received. It was agreed that COF members will contact each church with no Reports in and members were assigned churches to call.
Apportionment Report. Total months of parish arrearage is similar to a year ago. Parish situations were reviewed in detail. Parishes two or more months behind, as follows:
| # | Months in Arr | Parish / Location | Comments | |
| 2010 | 2011 | |||
| 6 | Spec | Spec | St. Michael’s, Bristol | Negotiation in process |
| 38 | 0 | 3 | Christ Church, Lincoln | |
| 43 | 2 | 2 | St. Columba’s, Middletown | |
| 47 | 0 | 3 | St. John’s, Newport | |
| 78 | 3 | 3 | St. Mark’s, Riverside | |
| 83 | 2 | 2 | Ascension, Wakefield | |
| 93 | 2 | 2 | Christ Church, Westerly | Interim |
Note: All Parishes two or more months behind will be listed each month.
Old Business:
• St. Michael’s, Bristol. Mr. Nicholson reported on meeting with the Treasurer and Chair of Finance. They have agreed to propose a resolution for the back payments due, which has not yet been received. Funds are available to make such payment.
• St. John’s, Newport. The Senior Warden, originally scheduled for visit today is unable to attend due to health issues, visit rescheduled to May.
• Insurance Retention Fund, see discussion below (not discussed under Bishop Search). Deferred until May.
Revolving Loan Fund. Mr. Turnbull and Mr. Batchelor distributed a set of existing rules and forms for this program. They proposed a revised set of forms reducing the number of pages, still collecting all information needed and simplifying the process. It was Moved, Seconded and Voted to revise the Revolving Loan Fund procedure and documents as discussed, with a revised set completed and distributed at the May meeting of COF.
Hispanic Lay Assistant. Reference Budget, section 321. Mr. Creason proposed that effective 4/1/11 the personnel position be changed to a contract service to Church of the Ascension at the rate of $450.00 per month, and the same continued for 2012. It was Moved, Seconded and Voted to amend the 2011 budget section 321 from $25,928 to $5,400. and change the designation to Administration and Program Support, for the purpose of contracting with Church of the Ascension to provide support services at the rate of $450 per month.
Rhode Island Foundation. Letter received from Owen Heleen, Vice President for Grant Programs, stating the because the Girls Friendly Society of RI is no longer functioning, the language creating the fund states, “you are directed to pay the income from the funds to the Episcopal Diocese of Rhode Island for work among girls of that diocese.” Checks totaling $10,059 were enclosed representing the accumulated balance in the fund, and further stating annual distributions, estimated $3,172, will be made in December, for the Diocese’s work with girls and young women. It was Moved, Seconded and Voted to acknowledge receipt of the funds, and for the Treasurer to converse with Rhode Island Foundation regarding use thereof, suggested for support of girls programs at ECC.
Boiler at Vicarage, St. Mathias, Coventry. Mr Creason reported the heating system boiler has failed and must be replaced. He stated one bid had been received, which was considered very high. He was instructed to solicit at least two additional bids for the work.
Endowment Funds Issues. Discussion of excessive draw on endowment funds issues and inappropriate use of “Restricted Funds” income. It was agreed this is a matter of concern in some parishes with a potential for legal liability. The Diocese and COF need to study the matter carefully and prepare to offer advice to parishes. It was further agreed to discuss the matter further in May. In particular parishes with an endowment draw over 7% are of special concern.
Budget for Bishop Search. Mr. Batchelor presented a proposed budget for the Search Process for the election of the XIII Bishop of Rhode Island. He stated this had been initially discussed with Bishop Clay Mathews when he met with the Standing Committee and Diocesan Council. Several budgets from Dioceses recently completing searches were made available. The combined group had discussed the matter further and designated a subcommittee to prepare a draft for consideration which the Treasurer then presented to the Bishop. It is the Bishop’s prerogative as ecclesiastical authority to propose a budget. The Bishop suggested a lower figure resulting in the proposed budget of $175,000 presented here for consideration. There was a lengthy discussion with a variety of views expressed. It was noted that Council action is not possible this month. It was agreed that the matter will need to go forward to Council in May. It was further agreed to table action on the Bishop Search Budget until the May meeting.
To assist in contacting parishes regarding Parochial Reports, Mr. Turnbull made available to all COF members a copy of the 1/3/11 Memo to Rectors, Wardens & Treasurers regarding Annual Reports, and a sample completed Parochial Report.
The meeting was adjourned at 12:20 pm.
Respectfully submitted
Edwin F Hallenbeck,
Secretary
Next Meeting: Tuesday May 10, 2011 at 10:00 am.
