Commission on Finance—March 12, 2013

Diocese of Rhode Island

Commission on Finance

Meeting, March 12, 2013

Higgins Room

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

Also present: Joan DeCelles; Ronald Turnbull; Elizabeth Crawley*.

Others: The Rev. William Locke*; Brad Bellows*, SW; Bob Benson*, Tr, St. Paul’s, Pawtucket.

Note those indicated by * were present as indicated.

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

The Minutes of the meeting of February 12, 2013 were approved as distributed.

Treasurer’s Report for 2/28/13. Mr Batchelor noted no concerns at this time, numbers that appear out of line are due to timing.

Apportionment Payments Report, shows the same months of behind payments as at this time last year.

Old Business.

      • Life Insurance Policy. Mr. Batchelor distributed the cost structure of a Term Insurance policy on Bishop Knisely face value of $150,000 at a cost of $532.20 annually, with the Diocese as beneficiary to be assigned to the Bishop Search account for funding a search. Following discussion it was Moved, Seconded and VOTED to purchase a Life Insurance policy on Bishop Knisely for face value of $150,000 at a cost of $532.20 annually; further that the cost of the policy be charged to the Bishops Search account; and, further that at ten years out there be a review to consider converting the policy to whole life. Subject to routine application and physical examination procedures.

      • Insurance Retention Fund. The current balance in this fund is $41,000±. It was agreed to hold the item on the agenda for consideration at a future meeting.

New Business

      • St. Paul’s Church, Pawtucket. The representatives noted above joined the meeting. Prior to the meeting church financial balance sheet and 2013 budget sheets had been distributed. Mr. Bellows reviewed the long standing practice of St. Paul’s drawing funds from its Endowment capital, in recent years at the rate of $30,000 per month to balance its budget. Pledge income has covered only 25% of operating costs. The Vestry realized in drawing the 2013 budget that it is essential to reduce costs, including personnel, and apply for Mission status. This has been accomplished. Canon Grenz has been working with the Vestry and others. In effect this represents a financial restart for the church. The budget proposes an Apportionment based on the 2013 budget plan, rather than 2011. Following discussion it was agreed to bill St. Paul’s $4,000 per month for January, February and March, to review budget operations in April and further agree on a payment schedule for the balance of the year, with a final apportionment due set at year end based on actual 2013 operations.  St. Paul’s guests left the meeting.

      Following discussion concerned the consistency and nature of parish record keeping, such questions as, where are the records? Are we using similar accounting systems?. These and similar questions will be considered at the Treasurer’s workshop Saturday.

      • May House Sea Wall. Liz Crawley joined the meeting. Mike Russell, Middletown, a civil engineer, who designed the new septic system at May House has been asked to prepare a design plan and secure CRMC approval. No Town approval is needed. Once completed the bidders will be asked to respond to the plan with a firm bid. It was agreed to hold the matter on the agenda until resolved.

      • Revolving Loan Procedure. The process by which Revolving Loans are granted was discussed. It takes place in three steps. 1) The Process is outlined and stated on the website. 2) A Church wishing to request a loan calls the Treasurer or Finance office and requests a packet of forms and instructions to follow. 3) Once completed the request is presented to the COF with a visit to respond to questions, for approval (under $50,000) or recommendation to Council ($50,000 and up). The matter will be further discussed at a future meeting.

      • St. John’s, Newport. Mr. Turnbull reported receiving a check in partial payment of the 2011 outstanding apportionment. Absent an agreement for partial payments the matter will be held in abeyance for negotiating a payment schedule.

      • Minutes on Website. The Secretary distributed a report on hits on the minutes displayed on the Diocesan BlogSpot. 857 page hits over the last year. Copies available.

The meeting was adjourned at 12:15 pm

Respectfully submitted

Edwin F Hallenbeck, Secretary

Treasurer’s Workshop, Saturday March 16, 2013 9am to 2pm St. Mark’s, Warwick.

Next Meeting Tuesday, April 9, 2013 10:00 am.