Minutes - December 2011

Diocese of Rhode Island

Commission on Finance

Meeting, December 13, 2011

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. An opening prayer was offered by Bishop Wolf.

The Minutes of the meeting of November 8, 2011 were approved as distributed.

Treasurer’s Report for November 30^th was briefly reviewed by Mr. Batchelor, He noted that while it appears in the Year to Date Summary that Apportionment funded budget is negative, he expects that due to timing and related matters the year end it should be at, or near, even for the year.

Apportionment Report through November shows 46 months of arrearage, 13 more than a year ago at this time. Churches two more months behind are noted below:

#	Months in Arr		Parish / Location	Comments
	2010	2011
6	Spec	Spec	St. Michael’s, Bristol	OK per agreed plan of 6/28/11
11	0	2	St.George’s, Central Falls
19	2	3	St. David’s, Cranston	Interim-Self study
36	0	2	St. Matthew’s. Jamestown
38	1	7	Christ Church, Lincoln	Interim, see below
40	1	2	Holy Cross, Middletown
43	3	3	St. Columba’s, Middletown	Interim
53	0	3	Trinity Church, N Scituate
78	2	4	St. Mark’s, Riverside	Merger completed
83	5	5	Ascension, Wakefield
89	2	4	St. Mark’s, Warwick
93	3	3	Christ Church, Westerly	Interim

St. Mark’s Riverside has merged with St. Matthew’s Barrington, apportionment will be paid upon sale of facilities.

New Business:

* Housing Allowances. Following brief discussion of IRS requirements for housing allowances it was Moved, Seconded and VOTED to recommend that Diocesan Council designate the following amounts of cash compensation to be clergy housing allowances for 2012 in accordance with Internal Revenue Code (Section 107:

The Rev. Mercedes Julian $28,214.50

The Rev. Sean Manchester $8,684.00

The Rev. Jose Roberts $24,000.00

The Rev. Michael Tuck $8,000.00

The Rt. Rev. Geralyn Wolf $52,000.00

• Commission on Finance Organization. Bishop Wolf stated she reappointed Scott Nicholson to another three year term. By consensus the COF agreed to designate Mr. Nicholson Chair for the next year. Mr Creason stated that Brian Ehlers had resigned with one year remaining on a Bishop appointment term. The Bishop stated she would appreciate recommendations of someone to fill the term. Dn. Hallenbeck raised the question of a COF representative to Council. He stated that he is a Bishop appointed member of Council, and Finance is entitled by Canon to a stated representative. It was agreed Mr. Bergstrom will fill that position.

* Christ Church, Lincoln. Mr. Batchelor reported the church had elected new officers in November and that he spent a day with them (11/30/11) reviewing their financial status. They plan to pay apportionment due and back loan payments by year end, although their situation is very tight. They will need to consider a possible readjustment for 2012 apportionment due to the significant changes in the parish. At present they have supply clergy only, with a complicated and difficult situation.

• Patriot Energy. This company offers energy savings for electricity and natural gas. Following discussion it was agreed we are not an appropriate client at this time.

• 2012 Budget Changes. Following discussion it was Moved, Seconded and VOTED to recommend to Diocesan Council the following changes to the 2012 budget:

Department 215: Episcopal Church Assessment from $458,558. to $435,630., a reduction of $22,928. (The National Church reduced the assessment from 20% to 19% for 2012)

Department 320: Hispanic Ministry from $100,895 to $102,431 an increase of $1,536; and Department 134 Hispanic Missioner from $80,141 to $81,477 an increase of $1,336. (This will bring the two full time Hispanic clergy on the Diocesan payroll up to the recommended Minimum Clergy Salary and Benefits level for 2012. This is a 2% salary increase plus benefits, their last increase was in the 2010 budget.)

Department 124: Canon for Program and Administration, severance package upon discontinuing position at June 30, 2012 $15,000.

Note: This is a net reduction in 2012 Budget expenses of $5,056.

Additional items:

• Severance for departing employees. The Director, Christian Formation position ends with the 2011 budget year, with no severance provided. Mr. Creason stated that a severance package had been arranged and the Bishop had agreed to provide funds from the Fostarian Fund. Severance for the Canon for Program and Administration is stated above in budget changes.

• Use of St. Luke’s, East Greenwich. Mr Creason stated he is in conversation with the Finance Committee of St. Luke’s regarding use of the Church facilities for Diocesan Conventions and similar events to include advance scheduling and compensation for the Diocesan use of facilities.

• Episcopal Conference Center – Fund a Kid Campaign. Mr. Creason stated that at Convention all 100 of the Fund a Kid silhouettes were picked up. This is expected to generate approximately $35,000. There is presently no account to hold such funds for appropriate budget allocation. An “ECC Operating Reserve Fund” has been established to hold proceeds of this fund raising program along with other such funds raised, for allocation by the ECC Board to include in the budget as may be needed.

• Meeting with Canons. Mr. Creason reported on the recent meeting of Canons, noting that many Dioceses are experiencing very difficult times and severe cutbacks. It appears that the Diocese of Rhode Island has done well in sound planning and has handled very difficult things reasonably well, better than many others.

• Cathedral of St. John. Bishop Wolf reviewed the ongoing circumstances of the Cathedral. There is continuing discussion of a variety of ideas and possibilities. Bishop Joslin will serve during the first quarter of 2012.

The meeting was adjourned at 11:25 am.

Respectfully submitted

Edwin F Hallenbeck

Secretary

Next Meeting: January 10, 2012. Higgins Room.