Minutes - May 14, 2013

Diocese of Rhode Island

Commission on Finance

Meeting, May, 14, 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 April 9, 2013 were approved as distributed.

Treasurer’s Report of April 30 was reviewed by Mr. Batchelor noting that some expenditures appear over budget due to timing of anticipated income. There are no concerns at this time.

Apportionment Payments Report. With 21 months of lagging payments only one parish is more than two months in arrears. Payments are running ahead of last year.

Old Business:

May House Sea Wall. Mr. Burton reported that CRMC has approved and issued a “Maintenance Assent” for repairs as designed by Land Development Engineering & Consulting, LLC. One of the three bids previously received basically conforms to the plan with some add-ons that can be removed. It is noted the wall is 70 years old and gravity held with no concrete and must remain so. Reconstruction will be done from the land side only. It was agreed for Mr. Burton to continue negotiating a more realistic cost. Following discussion it was Moved, Seconded and Voted to request Diocesan Council to give approval to award a contract to J.A.M. Construction Co., Inc. of Middletown, RI at a cost not to exceed $45,000 for reconstruction of the sea wall at 110 Cold Spring Road, N. Kingstown, RI.  It was further greed that this construction will be paid with accumulated surplus funds and be depreciated over ten years or a time frame allowed by current accounting rules. There was additional discussion regarding work that needs to be done at May Cottage. This will be studied further.

Revolving Loan Fund. As agreed at the COF meeting April 9, 2013, a revised Rules for Participation was presented, and is attached to these Minutes as Exhibit ‘A.’ The changes are minor:

      • Broadening the purpose to include information technology and communication projects.

      • Emphasizing an early Application.

      • Changing minimum loan to $5,000.

      • Requiring a meeting of clergy and officers with COF.

      • Making clearer that late payments will incur an additional month interest.

Following review and discussion it was Moved, Seconded and Voted to request Diocesan Council to give final approval to the revised Revolving Loan Fund – Rules for Participation.

New Business:

Unemployment Tax. Under Rhode Island law churches may join the system and pay the tax, or opt out and not pay, but remain liable to reimburse the state for any unemployment claims. Experience indicates many churches have opted out and billed for recent claims which can be costly. It was agreed that the Diocese needs to explain this to all churches with care and urge joining the Unemployment system. It is important to participate in these plans. It was agreed to take no action on a recent request to the Diocese. The Bishop will follow up.

Technology Needs. Canon Grenz reviewed several needs to upgrade currents systems:

      • Upgrade to Diocesan web site, extending capacity and local capabilities.

      • Creating a unified database to replace six non connected data bases.

      • Rebranding and creating a new logo to replace previous patterns.

It was Moved, Seconded and Voted to authorize technology upgrades not to exceed $50,000.  Further discussion noted the project will be a capital expense paid with accumulated surplus funds, Canon Grenz will be the staff person supervising the project, and that training and data entry will be included.

Other Business:

• It was noted that COF is forming a Committee to assist churches as needed [Hope Committee]

• The Treasurer’s office is requested to provide a listing of high endowment draw churches on a quarterly basis.

• Recent communications with Grace Church were noted, suggesting that conversation is encouraged especially about planning for future developments.

The meeting was adjourned at 12:15 pm

Respectfully Submitted

Edwin F Hallenbeck

Secretary

Next meeting: Tuesday June 11, 2013 at 10:00 am