Minutes — May 13, 2014

Diocese of Rhode Island

Commission on Finance

Meeting, May 13, 2014

Higgins Room

Present:  Robert Batchelor; Robert Bergstrand; Dennis Burton;  The Rt. Rev Nicholas Knisely; Michael Lofaro; Stephan Sloan.

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

Others: St. Paul’s Church, Portsmouth: The Rev. Paul Twelves, Priest in Charge; Bradford Chase, Senior Warden; Tim Brockway, Vestry.

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

The Minutes of the meeting of April 8, 2014 were approved as distributed.

Financial Report for April was reviewed by the Treasurer, noting that work continues on simplifying the report to include essential information only, with perhaps less columns of data. There are no unusual variations from budget patterns at this time.

Apportionment Payments Report indicates payments are coming in well with three churches two or more months behind.

Old Business:

May House Projects. Mr Burton presents a written summary of the progress on various projects. Several are completed, Insulation will be completed this week, generator installation on May 28^th. The major issue is the old oil tank leakage of some years requiring significant excavation of contaminated soil, currently underway. This will incur an added cost, when balanced with other savings is estimated to leave the total cost at close to the original $60,000 estimate. Following discussion it was agreed to forward to the Committee on Program and Budget a request to include a maintenance item annually for May Properties of $15,000.

Commission on Finance Member. A name was suggested who will be contacted.

Election at 2014 Convention. A new Nominating Committee is forming and will receive names.

Thrivent meeting and next steps. Several suggestions have been made of ways to increase income from short-term investments with some new prospects to consider. A special committee is being formed to pursue opportunities.

Update on Advent and New Church. Most work in the Advent church facility is being done by volunteers. A family is ready to rent the house and function as property manager. A soft start is planned for spring with a fuller program in the fall. New Church is doing their thing and is project oriented rather than committee/management oriented.

New Business:

St. Paul’s, Portsmouth, Revolving Loan. Guests from St. Paul’s noted above entered the meeting. St. Paul’s has submitted an Application for a Revolving Loan of $35,000 to rebuild it access ramp and other improvements for persons with disabilities. The project was discussed in detail and a number of questions were answered. It was agreed this project will be good both for the Church and the community. Guests left the meeting. Following additional discussion it was Moved, Seconded and VOTED to Approve a Revolving Loan of $35,000 for St. Paul’s Church, Portsmouth at a rate of 2.25% subject to a DIT pledge and interest reduction if details can be settled.

Diocesan Resource Fund Oversight. The Fund was created from the sale of closed churches for restarts, new starts and related matters. In 2014 $54,000 was allocated to Hispanic ministry. Use of these funds for program purposes is under jurisdiction of the Commission of Congregational Development. There is presently $2.4 million in the DRF, producing about $120,000 income per year. It is clear that a written set of guidelines is needed for how these funds will be allocated and by whom. The Canons will initiate this process.

Audit Recommendations. Two recommendations were made in the 2013 audit.

      #1. Major Gifts Policy. There is no written policy of how to handle and place major gifts when received, hence they are sometimes handled inconsistently. It was Moved, Seconded and Voted to appoint Canon Grenz and Stephan Sloan as a Task Force to draft a Major Gifts Policy and bring it before the COF for consideration.

      #2. Authorization to Transfer Funds. The Finance Director distributed a list of “Monies Transferred To/From the DIT in 2013, (5/7/14)”. Following discussion it was Moved, Seconded and Voted to appoint the Treasurer, Canon Grenz and Secretary Hallenbeck as a Task Force to draft a Transfer of Funds Policy statement and bring it before the COF for consideration. Following additional discussion it was Moved, Seconded and Voted that all Fund Transfers listed on the 5/7/14 list of Monies Transferred To/From the DIT 2013 be and hereby are approved as appropriate and necessary transfers of funds.

Property Committee. Minutes of the initial meeting held April 29, 2014 were Distributed. [See Real Estate Policies and Procedures adopted by Council 6/19/13.] Initially there are eight members of the Property Committee appointed by the Bishop to be confirmed by Council. The Committee reviewed all Diocesan Owned Property and established an initial Action Required list for each or a method of proceeding. Jim Rezendes is Chair. The Committee will report regularly to the COF.

Commission on Supplemental Benefits. With a generous fund, available income may pay for supplemental health insurance with a tightly worded set of rules for eligibility and what will be paid for. There are a limited number of recipients and not all available funds are used.. It was agreed to study the matter for possible changes. Deferred to next meeting.

The meeting was adjourned at 12:05 p.m.

Edwin F Hallenbeck, Secretary

Next meeting: June 10, 2014 at 10:00 a.m.