Minutes April 9. 2013

Diocese of Rhode Island

Commission on Finance

Meeting, April 9, 2013

Higgins Room

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

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

 The meeting was called to order at 10:05 by Chair Lofaro. Dcn Hallenbeck offered an opening prayer.

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

Treasurer’s Report of 3/31/13 was reviewed by Mr. Batchelor noting that apparent shortfalls are due to timing in income sources. There are no concerns at this time.

Apportionment Payments Report. There are 23 monthly payments lagging compared to 27 in 2012. Some concern was expressed that three parishes are behind that were current a year ago. These will be contacted and followed closely.

      St. John’s, Newport. A proposal was received for payment schedule to complete payment of 2011 apportionment. It was Agreed to accept the schedule as proposed.

      St. Paul’s, Pawtucket. Following the meeting in March with church leadership and payment of first quarter apportionment, it was Moved, Seconded and VOTED to accept the restart apportionment of $4,000 a month for the remainder of 2013, reflecting the revised budget status of the church. The Chair suggested that COF and Budget Committee review the change in Diocesan income resulting from apportionment adjustments.

May House Sea Wall Project. The project is in the hands of Mike Russell, engineer, completing an application to CRMC for review and approval. Once approval is received, Mr. Russell will review the previous proposals and rebid according to the approved design and specifications. Mr. Burton will review the process for COF in an effort to get actual construction under way as soon as possible, preferably by June.

Revolving Loan Fund. The Rules for Participation and other required documents had been distributed and were reviewed. It was Agreed to include the Rules in the Treasurer’s packet for all churches. Conversations regarding a loan should emphasize submitting a proposal early in preparation for a meeting with the COF. It was Agreed to have a list of all outstanding loans included in the monthly COF information packet.

Information Technology. The recent Treasurer’s workshop and other observations have resulted in noting a somewhat chaotic pattern of leasing and purchasing of copy and telephone equipment leading in some cases to costly leasing commitments. There is a clear need to refine a process for this to save money and work smoothly for churches. It was also suggested that the purpose statement of the Revolving Loan Fund be broadened to include information technology equipment in addition to facilities maintenance projects. It was Agreed that staff will refine this framework as a specific proposal for implementation. No action was taken at this time.

Review of Accounts Receivable from closed churches. Discussion of this matter with Diocesan Auditors concluded an alternate method of handling the matter will result in lowering of accounts receivable with the same amounts remaining due upon sale of facilities. Following discussion it was Moved, Seconded and VOTED that Accounts Receivable from Calvary Church, Pascoag and St. Matthias, Coventry be reclassified for 2012 and moved to building cost basis.

Insurance Retention Fund. The Chair reviewed the current status of the fund, with $41,123 remaining. Because the fund is no longer in use it is clear to all that it is appropriate to close it out at this time. Following a lengthy discussion and further review with the Executive Committee of Diocesan Council it was Moved, Seconded and VOTED to recommend to Council that the Insurance Retention Fund be changed to a Reserve Fund for Prior Years Apportionment, with the Fund being utilized as needed to close past due apportionment accounts based on a FIFO principle.

Treasurer’s Workshop. There was a general discussion and review of the recently held Treasurer’s Workshop which was viewed as successful, responding to a variety of issues and questions.

The meeting was adjourned at 11:20 am.

Respectfully submitted

Edwin F Hallenbeck, Secretary

Next meeting:  May 14, 2013 at 10:00 am – Higgins Room.