November COF Minutes

Diocese of Rhode Island

Commission on Finance

Meeting, November 13, 2012

Higgins Room

Present: Robert Batchelor; Robert Bergstrand; The Rev. Dcn. Edwin Hallenbeck; The Very Rev. Nicholas Knisely; Michael Lofaro; Stephan Sloan (by phone); The Rt. Rev Geralyn Wolf.

Also present: Canon Elizabeth Fornal; The Rev. Linda Grenz; Ronald Turnbull; Joan DeCelles.

Guests: The Rev. Kevin Lloyd; John Flinton, St. Matthew’s Church, Jamestown.

The meeting was called to order at 10:05 by Bishop Wolf, who thanked the group for our work together, turned the Chair to Bishop-Elect Knisely and left the meeting. Fr. Knisely offered an opening prayer.

The Minutes of the meeting of October 9, 2012 were approved as distributed.

New Business. An application for a loan from the Revolving Loan Fund from St. Matthew’s Church, Jamestown was considered with the Rector and Treasurer, noted above, present. The purpose and structure of the loan were discussed in some detail as it may be utilized in connection with available internal funds and proceeds of the capital campaign depending on the needs for contractor payouts as work proceeds. Several questions were satisfactorily answered. Following additional discussion it was MOVED, Seconded and Voted to recommend approval of a loan up to $75,000 at 2.25% interest for St. Matthews Church, Jamestown, to Diocesan Council and to further refer the matter to the Bishop and Standing Committee. At this point the guests left the meeting.

The Treasurer’s Report for October 31, 2012 was briefly reviewed, noting that some figures are out of budget due to timing, with an anticipated end of year at close to budgeted figures.

Apportionment Report. Apportionment payments in 2012 continue to run well ahead of recent years with only three churches significantly lagging:

#	Months in Arr		Parish / Location	Comments
	2011	2012
19	2	4	St. David’s, Cranston	Considering merger
43	2	3	St. Columba’s, Middletown	Rector recently called
93	4	3	Christ Church, Westerly	Interim

Old Business. Christ Church, Lincoln, was unable to submit a monthly report at this time due to a change in Treasurer. The new Treasurer has limited knowledge of church finances and Mr. Batchelor hopes to schedule a meeting in the near future. There do not appear to be significant concerns.

New Business, cont. St. Luke’s, Pawtucket real estate update. Mr. Batchelor noted that a purchase and sale agreement has been made for the former St. John’s, Ashton church and parish house. He has reminded St. Luke’s that the Diocese is owed the outstanding balance of a revolving fund loan of $51,888.76 plus interest accruing, as well as 25% of the sale proceeds under the existing merger policy.

Additional items:

ECC Director. Bishop Elect Knisely reviewed the need to change the status of the Episcopal Conference Center Director to full time with benefits. Rev. Grenz distributed a worksheet describing the manner in which this can be accomplished without affecting the Diocesan budget bottom line, by utilizing an allocation of Fostarian/Shippee funds to provide the balance needed. In addition Grant House on the ECC campus will be allocated for housing for the ECC Director, noting the facility is under utilized with very few bookings in the past year. It is anticipated that in future years ECC fund raising may increase to replace Fostarian funds.

Hispanic Ministry Committee. The Committee has requested that approximately $3,300 of unexpended budget line for 2012 be carried over to 2013 in order that its management improvement project may be completed. It was MOVED, Seconded and Voted to approve a carry over of unexpended funds, estimated at $3,300, be carried over from 2012 to 2013.

Commission on Finance-Unfilled Position. Mr. Bergstrand noted that the Commission continues to have an unfilled appointed lay position. It is hoped this may be filled by early 2013.

The meeting was adjourned at 11:00 am

Respectfully submitted

Edwin F Hallenbeck, Secretary

Next meeting: December 11, 2012, Higgins Room at 10:00 am.

October COF Minutes

Diocese of Rhode Island Commission on Finance 
Meeting, October 9, 2012 
Higgins Room
Present: Robert Batchelor; The Rev. Dcn. Edwin Hallenbeck; The Very Rev. Nicholas Knisely; Michael Lofaro; The Rev. John Pallard; Stephan Sloan; The Rt. Rev. Gelarlyn Wolf.
Also present: Joan DeCelles; Canon Betsy Fornal; The Rev. Linda Grenz; The Rev. David Lucey; Ronald Turnbull.
The meeting was called to order at 10:05 am by Bishop Wolf who offered an opening prayer. The Bishop served as acting Chair.
Mr. Stephan Sloan was introduced as an appointed member of the Commission replacing Mr. Scott Nicholson, with a term to 2014.
The Minutes of the meeting of September 11, 2012 were approved as distributed.
The Treasurer’s report for September 30, 2012 again shows the Apportionment side running at a deficit, while careful review indicates budget flow is close to plan and there are no significant issues.
Apportionment Report. The number of months of arrearage continues to drop as payments by churches are well ahead of last year, see chart below:

#	Months in Arr		Parish / Location	Comments
	2011	2012
11	1	2	St. George’s, Central Falls
19	3	3	St. David’s, Cranston	Considering merger
43	1	2	St. Columba’s, Middletown	Interim
47	0	2	St. John’s, Newport	Interim – supply - problems
66	3	2	All Saints, Providence	Interim
82	2	2	Holy Trinity, Tiverton
93	4	3	Christ Church, Westerly	Interim

Only two churches are three months in arrears.
Old Business:
Christ Church, Lincoln. Following the working understanding monthly reports are being received. Mr. Batchelor distributed a short form Report through October 4. At this point the church is following plan, and the assisting treasurer is keeping accounts. No significant problems, with planning for 2013 under way.
Church Woods, Charlestown. A Purchase and Sale Agreement has been signed for the three land parcels adjacent to Church of the Holy Spirit, with an added small parcel of the Church’s original land needed for required utility placement. It is expected that a closing can be scheduled for January.
New Business:

Page 1 of 2

Commission on Finance Minutes — October 9, 2012 Page 2 of 2

Diocesan House Roof. Three bids have been received for work need to remove and replace existing roof and decking. Following review and discussion of the bids it was Moved, Seconded and VOTED to recommend to Diocesan Council that the Contract for Roof and Decking Replacement be awarded to M. Barboza and Son’s at a cost of $19,900. with an understanding that asphalt paper installed be 30 lb rather than the 15 lb quoted. It was noted that Barboza has completed several roofing jobs for the Diocese recently with excellent results.
2013 Diocesan Budget. Fr. Lucey and Mr. Turnbull reviewed the recent work of the Committee on Program and Budget including the Narrative description for use at the Budget Hearings beginning tonight. Attention was called to page 4 where the primary areas affected by changes are listed. Rev. Grenz stated that the budget line for Leadership Resources should be changed to zero as these resources will be available thru her. It was agreed following discussion that the budget will be considered further following the hearings and the P&B Committee meeting for approval and transmission to Diocesan Council either at the next meeting by email or conference call.
The meeting was adjourned at 10:45 am.
Respectfully submitted,
Edwin F Hallenbeck, Secretary
Next Meeting: November 13, 2012 at 10:00 am. 

Commission on Finance - Sept 11, 2012

Diocese of Rhode Island

Commission on Finance

Meeting, September 11, 2012

Higgins Room

Present: Robert Batchelor; Robert Bergstand; The Rev. Dcn. Edwin Hallenbeck; The Very Rev. Nicholas Knisely; Michael Lofaro; Scott Nicholson; The Rev. John Pallard; The Rt. Rev. Geralyn Wolf.

Also present: Canon Elizabeth Fornal; Ronald Turnbull; Joan DeCelles.

The meeting was called to order at 10:00 am by Chair Nicholson, with an opening prayer by Bishop Wolf.

The Minutes of the meeting of June 12, 2012 were approved as distributed.

The Treasurer’s Report for August 31, 2012 shows Apportionment side running in arrears, this may level out at year end as in past years, or may show a small deficit. There are no unusual or unexpected occurrences at this time. It was noted that parish apportionment payments are at 62% slightly ahead of the 5 year average of 59.9%.

Apportionment Report. The number of months of arrearage is 27 significantlyt below the 38 of a year ago at this time, Only 3 parishes are 3 or more months behind. See below:

#	Months in Arr		Parish / Location	Comments
	2011	2012
19	3	2	St. David’s, Cranston	Considering merger
36	2	2	St. Matthew’s, Jamestown
43	2	5	St. Columba’s, Middletown	Interim
47	0	3	St. John’s, Newport	Interim – supply - problems
66	2	2	All Saints, Providence	Interim
82	2	2	Holy Trinity, Tiverton
89	3	2	St. Mark’s, Warwick
93	4	3	Christ Church, Westerly	Interim

Old Business:

Christ Church, Lincoln. As agreed, monthly statements are being received. Most accounting issues of inaccurate entries have been corrected, it is anticipated that budget data will be added shortly. The church Treasurer’s illness has slowed some progress with new help expected soon. Mr. Batchelor was thanked for his extended and special effort in enabling progress to date.

 Calvary Church, Pascoag. The Church was closed in 2009. The property has been offered for sale. Some offers have been received and will be referred to the Executive Committee of Council.

St. Mark’s, Warren. Property has been on the market as separate parcels. Sale of the Parish Hall has been closed at $255,000. There were problems with the Title language, now resolved. With carrying costs and fees netted out the Diocese should receive about $200,000. exact amount to be determined.

Church of the Holy Spirit, Charlestown (Church Woods). A firm offer has been received for the three parcels of undeveloped land, two unimproved, one with a former laundry, for $390,000. There is a signed purchase and sale agreement in place, with some issues remaining to be resolved. It is estimated it will close in January 2013, with the sale on an as is basis.

Starr Street property. There is no new information on the proposal to purchase the small parcel on the north side of Starr Street. It was agreed to keep the matter on hold and not entertain a proposal for sale at this time. The Chair will write a letter to the inquiring party.

Trinity Church, Cranston. There was a lengthy conversation with church leadership at the June COF June meeting regarding the outstanding apportionment due for 2009 of $11,721.25. Mr. Batchelor reported a recently received proposal from the Vestry to pay $3,000 now and $250 monthly until resolved. Mr. Turnbull noted that would be to August 2014. Following discussion it was Moved, Seconded and VOTED to accept the proposal of Trinity Church, Cranston to pay the 2009 apportionment balance with $3,000 in cash and $250 monthly starting in September until completed.

Parish Reports. Mr. Batchelor reported that as of August 29 all Parish Parochial and other Reports (with the exception of Audits due in September) have been received. This is a marked improvement over recent years, resulting in all data being transferred to the Episcopal Church data center for inclusion in national statistics. Special thanks to all for helping this to happen.

New Business.

St. Andrew’s by-the-Sea, Little Compton. A request has been received to place an investment with a finance house that is not FDIC insured. Following discussion it was Moved, Seconded and VOTED to authorize St. Andrew’s by-the-Sea to place investment funds in the Episcopal Church Foundation Endowment Management Service Program, a non FDIC insured service.

Additional Items.

Chairman Nicholson addressed the Commission indicating that his job situation has become more demanding and involves extended travel time in China and he will not be available for meetings on a regular basis. With great regret he offered his resignation noting the great personal value he has had from his time on the COF. The Bishop and Commission members offered very special thanks for Mr. Nicholson’s time with us.

Bishop Wolf closed the meeting with prayer.

The meeting was adjourned at 11:25 am.

Respectfully Submitted

Edwin F Hallenbeck, Secretary

Next meeting: October 9, 2012, 10:00 am – Higgins Room.

COF Meeting June 12, 2012

Diocese of Rhode Island

Commission on Finance

Meeting, June 12, 2012

Higgins Room

Present: Robert Batchelor; Robert Bergstand; The Rev. Dcn. Edwin Hallenbeck; Michael Lofaro; Scott Nicholson; The Rev. John Pallard; The Rt. Rev. Geralyn Wolf.

Also present: Canon Ty Creason; Canon Elizabeth Fornal; Ronald Turnbull; Joan DeCelles.

Guests: Steve Bucci, Treasurer, St. Peter’s by-the-Sea, Narragansett.

The Rev. Marsue Harris, Interim; Stephan Sloan, Sr Warden, Bill Batterly, Jr. Warden, Trinity Church, Cranston.

The meeting was called to order at 10:00 am by Chair Nicholson, with an opening prayer by Bishop Wolf.

The Minutes of the meeting of May 8, 2012 were approved as distributed.

The Treasurer’s report of 5/31/12 shows a loss with some items out of budget. This is due mostly to timing and presents no concerns at this time. Receipt of Church pledged funds is comparable to recent years. Mr. Batchelor called attention to the audited 12/31/11 report, which shows across all accounts a net gain of $72,824. The Audit is posted on the Diocesan web site. No issues were stated. Thanks was expressed to Mr. Batchelor and the Finance Office team.

Apportionment Payments. One church has made no payments, and one has made only one payment, The Cathedral, now closed, has paid thru April. See chart below:

#	Months in Arr		Parish / Location	Comments
	2011	2012
19	2	2	St. David’s, Cranston	Considering merger
36	1	2	St. Matthew’s, Jamestown
43	3	4	St. Columba’s, Middletown	Interim
47	5	5	St. John’s, Newport	Interim – supply - problems
66	0	2	All Saints, Providence	Interim
89	0	3	St. Mark’s, Warwick
93	3	3	Christ Church, Westerly	Interim

New Business—St. Peter’s by-the-Sea request for Revolving Loan. Mr. Bucci joined the meeting. An Application for $40,000 from the Revolving Loan Fund has been received. Mr. Bucci answered a number of questions, stating this will be to replace old roofing therefore may have surprises. A contractors bid of $38,225 has been received subject to unknown conditions likely in an old building. It was noted the church is converting its heating system from oil to gas at an estimated savings of $9,000 a year. The purpose of the loan is to avoid using reserve funds. There being no further questions Mr. Bucci was excused. Following discussion it was MOVED, Seconded and Voted to approve a $40,000 Loan from the Revolving Loan Fund to St. Peter’s by-the-Sea, subject to concurrence by the Standing Committee.

Apportionment Payments, cont. Trinity Church, Cranston. Mr. Batchelor reviewed recent history, stating that Trinity is current for 2010, 2011 and 2012. The problem goes back to 2009 when apportionment payments were made for seven (7) months and stopped with $11,721.25 remaining unpaid. It was also noted there are no audits for 2007 thru 2010 and no Reports for 2011. The church presently has a half time Interim priest. There are three potential areas of default: Reporting; Audits; Apportionment payments.

Rev. Harris, Mr, Sloan and Mr. Batterly joined the meeting. The Chair stated the reason behind the meeting was primarily the issue of the 2009 unpaid apportionment. Mr. Sloan asked if he might set the context for the problem. He distributed Trinity Church—Report to the Commission on Finance. He described the situation in 2009 when he became Senior Warden, what led up to that crisis and steps taken beginning in 2009 to stabilize church finances. There followed a lengthy and thorough discussion. Mr. Sloan submitted the 2011 Parochial Reports. He further stated the Vestry agreed to prepare Audit Reports for 2009, 2010 and 2011 no later than October. Mr. Turnbull explained that the 2009 apportionment due has been booked by the Diocese as income for that year, and it is not a simple matter to write it off in 2012. It was noted that Reporting and Audit issues appear to be resolved.

There was further discussion about two DIT funds related to Trinity Church. a) The Grace Salisbury Fund is owned by Trinity Church, the Church may request funds from the corpus at any time. b) The Charles Gorton Scholarship Fund is owned by the Diocese for the benefit of Trinity Church students and would serve broader scholarship needs if not used by Trinity. The corpus may not be removed.

At the conclusion of the conversation there was general, but not specific understanding that Trinity Church will have another look at how the 2009 apportionment due matter can be resolved. They were encouraged to come up with a plan that will work for the Church. At this point the Trinity Church guests lefty the meeting.

Old Business.

Christ Church Lincoln. Mr. Batchelor called attention to the May 4 Treasurer’s Report, noting it still has some accounting glitches, but does fairly represent what is going on in 2012. The treasurer has recently undergone back surgery.

Calvary Church, Pascoag, Roof. Mr. Creason stated that the contract, as discussed and amended following the May 8, COF meeting was approved following an electronic vote.

Holy Spirit, Charlestown, adjacent land. A Purchase and Sale Agreement has been completed subject to a final price from the appraisal in progress.

St. Mark’s, Warren, Parish House. A Purchase and Sale Agreement has been completed and signed subject to final agreement on appraisal price. In addition, a Statement of Residence has been completed regarding the property ownership ready for Standing Committee approval.

Consulting Resource. Mr. Creason stated that he and Canon Fornal are completing an Agreement for him to continue work on an hourly basis to complete transactions that are still in progress after his position terminates 6/30.

New Business.

St. Matthias Church, Coventry Roof. A bid has been received from M. Barboza & Son’s for $34,400 to complete the church roof. This is the same company that previously did the flat roof area. It was MOVED, Seconded and Voted to approve a Contract with M. Barboza & Son’s for the roof at St. Matthias Church, Coventry.

Star Street Land Parcel. A proposal was submitted by Mr. Creason, Scott Nicholson and Bob Batchelor to consider sale of a small parcel of landlocked land appx 7’ by 40’ adjacent and uphill from the Hallworth House north parking lot to the owners of 52 Benefit Street (Plat 3,Lot 463). It was agreed the Diocese appears to have no effective long term use for this small up hill parcel. There are zoning and appraisal issues that need to be resolved. It was MOVED, Seconded and Voted to agree in principal to the sale of this parcel, subject to resolving zoning and appraisal questions. The matter will be referred by Ty for follow up with the Real Estate Attorney.

Hallworth House, Benefit Street, East uphill Parking Lot. Mr. Creason noted the land covenant pertaining to this land has a number of restrictions, some of which are not clear, requiring the leasing of parking slots to various persons. Following discussion it was MOVED, Seconded and VOTED to refer the matter to our Real Estate Attorney for detail research, and propose a resolution of how to deal with the Parking Lot in future. It was noted that Edwards Homes residents also use this lot for parking.

Investment of Diocesan Cash. Mr. Batchelor stated that earlier years investing cash in short term CDs and similar instruments was both safe and produced income. Current rates are such this no longer is viable. He suggested that at any one time there is a floating surplus of approximately $1million that could be usefully put in short term investment. Following discussion it was MOVED, Seconded and Voted to move $1million into short term Federal Credit or similar instruments. The objective is to receive a reasonable return on relatively safe investment.

The Commission unanimously voted with applause our gratitude to Ty Creason for his time as a Diocesan Staff person working with us on what has seemed to be an endless parade of items requiring detail attention.

The meeting was adjourned at 12:10 pm.

Respectfully submitted

Edwin F Hallenbeck

Secretary

Next Meeting: September 11, 2012

Dates if needed on call: July 10, 2012 or August 14, 2012

Electronic communication and voting as needed.

Commission on finance Meeting May 8 2012

Diocese of Rhode Island

Commission on Finance

Meeting, May 8, 2012

Higgins Room

Present:  Robert Batchelor; Robert Bergstrand; The Rev. Dcn. Edwin Hallenbeck; Michael Lofaro; Scott Nicholson; The Rev. John Pallard; The Rt. Rev. Geralyn Wolf.

Also Present: Canon Ty Creason; Canon Elizabeth Fornal; Ronald Turnbull.

The meeting was called to order at 10:00 am by Chair Nicholson with an opening prayer by Bishop Wolf.

The Minutes of the meeting of April 10, 2012 were approved as distributed.

The Treasurer’s Report for April was reviewed by Mr. Batchelor noting that while some accounts appear over or under, this is due to timing. There are no matters of concern a this time. Apportionment cash receipts are in line with recent years.

Apportionment Payments. Two churches have made no payments, both are special situations. Churches two or more months behind:

#	Months in Arr		Parish / Location	Comments
	2011	2012
19	1	2	St. David’s, Cranston	Considering merger
43	3	3	St. Columba’s, Middletown	Interim
47	4	4	St. John’s, Newport	Interim - supply
53	0	2	Trinity Church, N Scituate
67	1	4	Cathedral of St. John, Prov	Closed – April 22, 2012
89	0	3	St. Mark’s, Warwick
93	3	3	Christ Church, Westerly	Interim

Dcn. Hallenbeck reported that he had presented a full page report of all churches apportionment support to Diocesan Council, with the Council deciding not to publish it further. It was agreed we will continue to seek ways to make this information available.

Old Business.

Christ Church, Lincoln. Mr. Batchelor reported that he continues to meet with the Treasurer. He distributed a 1^st Quarter Report, stating that all loans are paid up, as is Apportionment. They continue to work on clearing some accounting glitches and hope to complete the Parochial Report soon. The 2011 Audit is in process. Mr. Batchelor was thanked for his special effort in assisting this Church.

New Business.

Holy Spirit, Charlestown, adjacent land. Mr. Creason reported that the Church Woods Affordable Senior Housing Project has stated they are ready to move forward on all three parcels of land and will submit a Purchase and Sale offer for the appraised value as soon as appraisals are completed. It was agreed to continue the discussion as well as with the South County Tourism Board in the interest of receiving a firm offer.

St. Mary’s, Portsmouth, Mudrak Fund request. A proposal was received for $10,000 from the Mudrak Fund for use in installing a Hearing Loop System Technology in the Church and New Parish Hall now under construction. It is clear that this request is within the scope of the defined mission of the Fund. It was Moved, Seconded and VOTED to allocate up to $10,000 from the Mudrak Find to St. Mary’s, Portsmouth for use in installing a Hearing Loop System in their new construction.

Calvary Church, Pascoag, New Roof. Four bids were received, two of which were disqualified as incomplete. Two from M. Bardozo & Sons, Inc and Rick Boyajian were not directly comparable. It was agreed that both will be asked to provide bids based on the 50 year shingles and 30 lb paper. When this data is available it will be circulated by email for a final decision.

St. John’s, Newport. Bishop Wolf reviewed the difficult circumstances this Church is facing and the aging and deteriorating condition of some of its facilities. The Senior Warden recently proposed a solution, which the Bishop viewed as partial and inadequate, suggesting that other options be explored. The Bishop stated there is need for a high quality Appraisal of properties held by the Church that could provide a basis for developing the best planning options. The Bishop and staff will arrange for Appraisals to be undertaken and paid for from the Fosterian Fund [Elmer R. Shippee Fund].

St. Mark’s, Warren. Property ownership and Title issues are being worked on, due to original lack of clarity. The Church is now viewed by some as architecturally interesting, with local Historic Preservation groups taking an interest.

The meeting was adjourned at 11:20 am.

Respectfully submitted

Edwin F Hallenbeck, Secretary

Next Meeting: June 12, 2012 at 10:00 am.