Minutes — October 14, 2014

Diocese of Rhode Island

Commission on Finance

Meeting, October 14, 2014

Higgins Room

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

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

Guests: The Rev David Lucey, Chair, Program and Budget Com. St. Mark’s, Warwick: The Rev. Susan Wrathall, Rector; Shirley Kolarik, Treasurer.

The meeting was called to order at 10:04 a.m. by Chair Lofaro, with an opening prayer by Bishop Knisely.

The Minutes of the meeting of September 9, 2014 were approved as distributed.

Financial Report for September was reviewed by Mr. Batchelor, noting the Balance Sheet accounting is running well and may be found at the end of the report. Revenue and Expense Report shows that expenditures are lagging in some categories, expected to catch up by year end. Staff is still researching ways to tighten up and shorten the report document.

Apportionment Report was distributed in two forms. The first showing all churches, the second showing in greater detail all churches not current in apportionment payments. Currently there are 22 months of arrearage compared to 33 months in 2013. The new Report is  viewed as useful and both Reports will be available for the time being.

Revolving Loan Fund Report states all loans outstanding and payments through September. This view is very helpful and will be available monthly.

Draft Policies: Major Gifts Policy. Canon Grenz stated that The Episcopal Church has created draft language appropriate to TEC church structure and she hopes to have this available by our next meeting. Transfer of DIT Funds is a more local matter and Mr. Batchelor will continue to work on draft language.

Travel Funds. It was noted that the Bishop’s Travel fund is now over expended due to the high cost of the unusual expense of the House of Bishops meeting in Taiwan. At the same time more funds are allocated to General Convention than will be needed next year. Following discussion it was Moved, Seconded and VOTED to move $8,000 from Triennial General Convention Expenses to Bishop’s Travel. There was one abstention from this vote.

2015 Draft Budget. Chair of the Budget Committee, The Rev. David Lucey reviewed the proposed budget in some detail, noting why some items had been shifted to new locations and why some figures had been shifted either up or down, The budget for 2015 is balanced at a total of $3,820,055. Following a lengthy discussion and a number of questions is was Moved, Seconded and VOTED to commend the 2015 Diocese of Rhode Island budget to Diocesan Council for consideration and forwarding to Diocesan Convention. Following the vote a question was raised regarding churches that are overspending endowments in some cases to pay apportionment. This resulted in a discussion concluding that this problem is as much a cultural/political matter as it is dollars, needing a change in awareness and willingness to address the matter and make changes. Ongoing discussion will be needed.

St. Mark’s, Warwick Revolving Loan Request. Guests from St. Mark’s noted above joined the meeting and reviewed the need for completion of roof repair and complete redoing of the church parking area. Both matter were reviewed in detail, noting receipt of $8,750 in insurance recovery on the roof project. It is anticipated the projects will proceed immediately. It was suggested that a reduction of 0.75% on the interest charge could be made if the church places its current reserve funds in the DIT with a pledge to the value of the loan. The guests left the meeting.

Following a brief discussion it was Moved, Seconded and VOTED to Approve a Revolving Loan of $41,000 to St. Mark’s Church, Warwick at an interest rate of 2.25% or 1.50% with DIT pledged funds and forward the matter to the Standing Committee for their consideration.

Depreciable Assets Policy. Mr. Batchelor offered a draft policy statement stating how the Diocese treats long-lived assets costing $3,000 or greater. It is strongly recommended that this policy be adopted and followed by parishes and missions so that such properties are treated consistently. Following discussion it was Moved, Seconded and VOTED to adopt the Depreciable Assets Policy for the Diocese of Rhode Island and commend the same to all Parishes and Missions for their use. Once effected this policy will be posted on the Diocesan Website available to all.

Next Meeting. Due to the November 11 Holiday it was agreed the next COF meeting will be November 18, at 10:00 a.m.

The meeting was adjourned at 11:45 a.m.

Respectfully submitted

Edwin F Hallenbeck

Secretary