Minutes—November 12, 2013

Present: Robert Batchelor; The Rt. Rev. Nicholas Knisely; Michael Lofaro; Stephan Sloan; The Rev. Joyce Thorne; vacancy Clergy appointed.

Also Present: Joan DeCelles; Canon Elizabeth Fornal; The Rev. Canon Linda Grenz; The Rev. Edwin Hallenbeck; Ronald Turnbull.

The meeting was called to order at 10:00 a.m. by Bishop Knisely, who offered an opening prayer.

Organizing Matters. The Bishop appointed The Rev. Edwin Hallenbeck as Secretary. He called for nominations for Chair. Mr. Michael Lofaro was nominated. There being no further nominations Mr Lofaro was elected unanimously. Following brief discussion Mr Robert Bergstrand was designated as the COF representative to Diocesan Council. Following brief discussion Mr. Dennis Burton was designated as the COF representative to the 2015 Task Force for Strategic Needs and Planning. The Chair welcomed The Rev. Joyce Thorne as a member of the Commission elected at Convention.

Upon completion of the Organizing Matters Mr. Lofaro assumed the Chair.

The Minutes of the meeting of October 8, 2013 were approved as distributed.

The Treasurer’s Report of October 31, 2013 was reviewed. Income is about on budget. Expenditures continue with some timing issues. It appears that we will conclude the year on a break even basis, assuming no unexpected items. The report was received and placed on file.

Apportionment Payments Report. The number of churches and monthly payments in arrears is reduced from last month, from 8 churches to 4, and 37 months to 23, see chart.

#	Months in Arr		Parish / Location	Comments
	2012	2013
19	4	4	St. David’s, Cranston	Considering future
36	1	2	St. Matthew’s, Jamestown	Recent conversation
43	3	5	St. Columba’s, Middletown	Recent meeting w/leaders
76	1	2	STs Peter & Andrew, Providence

All except St. David’s anticipate completing the year fully paid.

Old Business. Revolving Loan Policy. Mr. Sloan reported on his review to date, noting there are some legal issues that are unclear. It was suggested that he ask the Chancellor to review issues. The work will continue, and remain on the COF agenda.

ACS Implementation Update. Reference was made to the draft Chart of Accounts distributed. A number of comments  were made with a view to consolidation, aimed at simplifying the structure. An example instead of separate accounts for all payroll listings, the detail is available in the ADP payroll vendor accounts for audit and does not need repeated in the account structure. Salary/Benefits/Other is sufficient. Joan DeCelles distributed a church apportionment account report and monthly statement sample. It was agreed to implement this for all churches effective in January.

May House Projects. Reference was made to four projects needed to bring the house up to livability standards, and bids to undertake the projects. There are four distinct project needs. It was noted that this is the house currently occupied by the Bishop and that he intends to remain living in it indefinitely. The needed projects are: a) Insulation. b) Air Conditioning. c) Heating. d) Emergency Generator. The projects were reviewed in detail with priorities noted. Following discussion it was Moved, Seconded and VOTED to complete insulation as proposed by RISE, update the heating system, add air conditioning and an emergency generator at a cost not to exceed $60,000. with Mr. Burton to refine bids; the cost to be paid from appropriate funds of the Diocese. This is a capital expense subject to depreciation. The Bishop recused himself from voting.

Church of the Advent, Coventry. Canon Grenz reported that with the church presently not operating, work is needed both in the church and the Rectory to prepare the facilities for use. The estimated cost, without bids at this time, as roughly $40,000.

Calvary Church, Pascoag. Study is underway to use these facilities in connection with ECC. Some rearrangement of how staff are accommodated could make these facilities much more workable. A detail proposal is under development. The Resource Fund is an appropriate resource for this project.

St. Mark’s, Riverside. The Tax Assessor of the City of East Providence has refused to change the assessed valuation. The next step is to appeal to the Tax Assessment Review Board. The Bishop suggested reviewing the matter with the Chancellor.

The meeting was adjourned at 11:25 a.m.

Respectfully submitted

Edwin F. Hallenbeck

Secretary

Next meeting of the COF is December 10, 2013 at 10:00 a.m.

Minutes—October 8, 2013

Present:  Robert Batchelor; Robert Bergstrand; Dennis Burton; The Rev. Edwin Hallenbeck; Michael Lofaro; Stephan Sloan.

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

Present for discussion of Sts. Matthew & Mark, Barrington: Dennis Hogan, SW.

The meeting was called to order at 10:00 am by Chair Lofaro. Canon Grenz offered an opening prayer.

The Minutes of the meeting of September 10, 2013 were approved as distributed.

The Treasurer’s Report of September 30 is about as anticipated. The largest variation is ECC which is still reconciling its summer activity accounting.

Apportionment Payments Report. Compared to this time a year ago with 21 months in arrears, there are now 33 months of arrears with eight churches 2 or more months behind.

#	Months in Arr		Parish / Location	Comments
	2012	2013
11	2	2	St. George’s, Central Falls
19	3	4	St. David’s, Cranston	Considering future
36	0	4	St. Matthew’s, Jamestown
43	2	4	St. Columba’s, Middletown	Rector recently called
66	2	6	All Saints, Providence	Interim
76	1	2	STs Peter & Andrew, Providenc
89	0	2	St. Mark’s, Warwick
94	1	3	St. James, Woonsocket

Particular attention will be given the churches four or more months behind. COF members and staff were assigned to make follow up calls.

Old Business.  Loan terms and conditions. Mr. Sloan reported he is working with a resource person with commercial loan experience, reviewing our current practices. He expects to have a report next month on suggested changes in the Revolving Loan process.

Discussion continued on how best to describe the interest rate in minutes when actions are taken, It was agreed to continue to use the language, prime rate minus 1% with the actual rate determined on the date the contract is signed.

New Business. Sts. Matthew & Mark, Barrington. Dennis Hogan, SW joined the meeting. Mr. Hogan provided financial data for 2011, 12, 13 and a draft budget for 2014. A number of changes resulting from the merger and staffing adjustments have lead to an especially high projected 2014 apportionment at the same time hiring a full time Rector is anticipated. The result is an out of balance budget due to unusual circumstances. This was discussed at length, It was agreed to recalculate the 2014 apportionment at $19,200 as a transition solution.

Old Business, continued. Balance Sheet was distributed. This a new document for the COF. Following review and discussion several questions were raised. None of these were resolved and it was agreed to address each at the staff level with suggested resolutions to be considered at future COF meetings.

New Business, continued. Mr. Burton raised the question, would it be appropriate for the COF to consider establishing goals for the upcoming year? Are there two or three initiatives that we could agree are worth priority attention. Several ideas were suggested. This will be considered further at the next COF meeting.

Respectfully submitted

Edwin F Hallenbeck

Secretary                                                                                               

Next meeting: November 12, 2013 at 10:00 am.

Minutes - September 10, 2013

Diocese of Rhode Island

Commission on Finance

Meeting, September 10, 2013

Higgins Room

(corrected copy)

Present: Robert Batchelor; Robert Bergstrand: Dennis Burton; The Rev. Edwin Hallenbeck; The Rt. Rev. Nicholas Knisely; Michael Lofaro; The Rev. John Pallard; Stefan Sloan.

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

Present for discussion of Revolving Loan Applications as indicated:

      St, John the Evangelist, Newport: The Rev. Nathan Humphrey, Vicar.

      St. Martin’s, Providence: Dennis Stark, Treasurer; Sarosh Fenn, SW; Fred Mason, Vestry; Gordon Partington, B&G staff.

      St. Thomas, Greenville: The Rev Susan Carpenter, Rector; Ron Slocum, SW; Henry Dziadosz.

The meeting was called to order at 10:05 am by Chair Lofaro. Bishop Knisely offered an opening prayer

The Minutes of the meeting of June 11, 2013 were approved as distributed.

The Treasurers Report of August 31 shows a loss in some accounts primarily due to timing. Careful review indicates that performance for the year appears to be on or near budget.

Apportionment Payments Report. Two churches are five months behind compared to two months behind at this time a year ago. Total months in arrears now exceeds last year.

#	Months in Arr		Parish / Location	Comments
	2012	2013
11	1	3	St. George’s, Central Falls
19	2	5	St. David’s, Cranston	Considering future
36	2	3	St. Matthew’s, Jamestown
43	5	3	St. Columba’s, Middletown	Rector recently called
66	2	5	All Saints, Providence	Interim
76	1	2	STs Peter & Andrew, Providenc
82	2	2	Holy Trinity, Tiverton
94	0	2	St. James, Woonsocket

Particular attention will be given the churches five months behind.

Old Business.

Real Estate Update. Two sales were completed over the summer:

St. Mark’s, Warren with a net income of $121,000± to the Diocesan Reserve Fund.

Scituate land related to Grant House, net income of $50,000± returned to the DIT.

The May House Sea Wall. Mr. Burton reported the rebuilding has been completed, except for a small area missing gravel.

Jonathan Daniels House Funding. The Jonathan Daniels House project is now a program of the Diocese as acted on by Diocesan Council. In order to clarify the flow of funds allocated to this program, following discussion it was Moved, Seconded and VOTED to recommend to Diocesan Council that Jonathan Daniels House program funds for 2013 be $22,000 from the Diocesan Resource Fund, subject to acceptance of the program by the Episcopal Service Corps; and, further that budget allocations for 2014 and 2015 be $25,000 from the same source so long as the program is accepted by Episcopal Service Corps.

New Business. Requests for Revolving Loan Funds: (persons attending, see above)

St. John the Evangelist, Newport. A complete Application was received and reviewed for a loan of $15,000 over five years. The purpose of the loan is to complete work on the Rectory for occupancy by the new Vicar. Following discussion it was Moved, Seconded and VOTED to approve a Revolving Loan to St. John the Evangelist Church, Newport, of $15,000 at 2.25% for five years.

It was noted that this loan does not need further approval by Council. It was suggested that St. John may wish to consider placing $15,000 of its endowment funds in the DIT and further reduce the interest rate by 0.75%. This may be done any time prior to the closing.

St. Martin’s, Providence. A complete Application was received and reviewed for a loan of $100,000 over five years. The purpose if the loan is to install new windows, complete painting in some external areas and install a new heating system. Savings in energy cost is estimated to be $6 to $8,000 per year. No capital campaign is planned at this time during the Rector transition. Perhaps 2 to 5 years down the road. Following discussion it was Moved, Seconded and VOTED to recommend to Diocesan Council Approval of a loan of $100,000 to St. Martin’s Church, Providence at 2.25% less 0.75 with placement of the value of the loan in the DIT. Council approval is required.

St. Thomas Church, Greenville. A complete Application was received and reviewed for a loan of $132,000 over five years. The purpose of the loan is to upgrade the heating system and convert to natural gas, upgrade the fire alarm system and kitchen renovation to meet all code requirements. Consultation is in process with RISE about possible insulation and window treatment. A capital campaign may be initiated in 2014. Following discussion it was Moved, Seconded and VOTED to recommend to Diocesan Council Approval of a loan of $132,000 to St. Thomas Church, Greenville at 2.25%. Council approval is required.

Loan terms and conditions. There was a lengthy discussion about possible conditions that might be placed on Revolving loans. Mr. Sloan volunteered to review the current process and rules and report to the October meeting.

The Chair expressed thanks to Fr. Pallard for his time on the Commission and his contributions to our deliberations as he leaves the Diocese for another parish.

The meeting was adjourned at 12:35 pm

Respectfully submitted

Edwin F Hallenbeck, Secretary.

Next meeting: October 8, 2013 at 10:00 am Higgins Room.

Minutes - June 11, 2013

Diocese of Rhode Island

Commission on Finance

Meeting, June 11, 2013

Higgins Room

Present:  Robert Batchelor; Robert Bergstrand; Dennis Burton; The Rev. Dcn. Edwin Hallenbeck; The Rt. Rev. Nicholas Knisely; Michael Lofaro; The Rev. John Pallard; Stefan Sloan.

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

The meeting was called to order at 10:05 am by Chair Lofaro. Bishop Knisely offered an opening prayer.

The Minutes of the meeting of  May 14, 2013 were approved as distributed.

The Treasurer’s Report of May 31 was reviewed. Mr. Batchelor noted that while there is currently a small deficit, review of accounts indicates this is due to timing of receipt of anticipated income. There are no concerns at this time.

Apportionment Payments Report. There is one church lagging, at present 5 months in arrears. Payments are running slightly ahead of last year. See table below for churches two or more months in arrears.

#	Months in Arr		Parish / Location	Comments
	2012	2013
11	1	2	St. George’s, Central Falls
19	2	3	St. David’s, Cranston	Considering future
36	2	2	St. Matthew’s, Jamestown
43	4	5	St. Columba’s, Middletown	Rector recently called
66	2	3	All Saints, Providence
76	1	2	STs Peter & Andrew

Further discussion. The Treasurer distributed two financial tables, the first stating all RI churches 2011 Parochial Report data listing ASA, Investment Income, Operating Revenues, and Endowment Market Value, % of Draw and Investment Draw as a % of Operating Income. Also a table stating more detail for churches with a high rate of Draw. It was agreed to request that all churches send to the Diocese an electronic copy of Vestry Minutes and Financial Report when distributed to the Vestry.

Old Business.

May House Sea Wall. Mr. Burton reported on recent updates. In May Council approved a reduced scale project with CRMC approval. J.A.M. Construction rebid to the new specifications at a price of $35,000 and refined its approach to the work. A contract has been signed and work is expected to begin soon and last about a week. Special thanks was offered to Liz Crawley for her work facilitating this project.

Revolving Loan Fund. All loans are paid current per agreement. At least two churches are considering projects that could make use of loan funds. There is approximately $1.3 million available for use in this program. The program needs better marketing. Future Reports will be made as changes take place.

New Business.

St. Mark’s, Warren. The Treasurer submitted a Report summarizing the recent sale of the Parish House and proposal to purchase the Church. Following discussion it was Moved, Seconded and Voted to concur in the proposed sale of the St. Mark’s Church, Warren, Church building and to forward the matter for final approval to the Standing Committee, Diocesan Council and the Bishop.

The Greene Trust. The Greene Trust was left to the St. Mark’s Church Society with the income to be used for insurance, repairs and maintenance of the church building. Several questions were raised regarding application of these funds. It was agreed to refer questions to the Chancellors.

Jonathan Daniels House. Council deferred action on this matter at the May meeting. Bishop Knisely reported that following additional consideration the JDH group has changed its request to become an institution of the Diocese with a revised proposal to Council. This is viewed as a much more workable arrangement.

Unemployment Tax. Mr. Sloan raised the question, following recent discussion, that some churches, including his, are uncertain how to proceed with this matter. It was agreed the Treasurer is researching the question and will make information available.

Health Insurance. As the new Health Insurance Exchanges come on line later this year, it was noted this will not affect Clergy, however, there may be significant savings available for lay employees.

Real Estate Policies and Procedures. On behalf of a Council Sub-Committee the Secretary distributed a draft Policy establishing a Property Committee. COF members were urged to read the proposal and offer any comments to Ted. It is hoped to present the proposal to Council on June 19.

The meeting was adjourned at 11:30 am

Respectfully submitted

Edwin F Hallenbeck, Secretary

Next meeting: Tuesday, September 10, 2013, or at the call of the Chair, as needed.