Minutes — November 18, 2014

Diocese of Rhode Island

Commission on Finance

Meeting, November 18, 2014

Higgins Room

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

Also present:  Joan DeCelles; The Rev. Canon Linda Grenz; The Rev. Edwin Hallenbeck.

Guests: All Saints’ Memorial Church, Providence: The Rev. David Ames; Rebecca Silliman, Treasurer.

St. George’s, Central Falls: The Rev. José Roberts; Ceasar Delcompare, Senior Warden; JW; Martha Pantoja, Treasurer.

The meeting was called to order by Bishop Knisely at 10:00 a.m. The Bishop offered an opening prayer.

The Bishop welcomed Michael Lofaro (reappointed) and Stephan Sloan (reelected) to new terms on the Commission. The Bishop appointed Mr. Lofaro as Chair of the Commission, and Deacon Hallenbeck as Secretary. Both appointments were affirmed by unanimous vote.

The Minutes of the meeting of October 14, 2014 meeting were approved as distributed, noting that Mr. Sloan’s name was omitted from those present.

Financial Report for October is near budget with most variances due to timing matters. Mr. Batchelor expects year end to be very close to budget expectations. It was noted that monthly budget allocations are currently on a 1/12^th basis. The accounting program is able to accept anticipated variations, and an effort will be made in 2015 to accommodate some of these. There was additional discussion of cash needs to reduce checking account balance. This is still under discussion and will be considered further in December. The matter of guarantee of loans for clergy housing was discussed and noted as an idea for consideration. It was agreed that the COF has several matters, such as this, needing extended consideration at a Retreat Day, to be set in early 2015. Members are asked to suggest other matters that could be discussed. [Please send to Joan or Ted]

Apportionment Report. Payments are running somewhat slower, as is often the case this time of year. There are three churches with significant issues: St. George’s, Central Falls; St. David’s, Cranston; and St. Paul’s, Pawtucket.

All Saints’ Memorial Church, Providence, Revolving Loan Request. Guests from All Saints’ joined the meeting and provided a summary of the work under way leading to the loan request. Despite advance planning, a successful capital campaign, once the work on the window was begun the scope of deterioration in and surrounding the window was significantly worse than expected, requiring additional work. The total project cost is now $101,154. All Saints’ is providing $61,000 with a loan request for the balance. A  foundation grant request is pending which would reduce the amount need by loan. The guests left the meeting.

Following a further discussion, it was Moved, Seconded and VOTED to Approve a Revolving Loan of up to $40,000 at 2.5% for 5 years, subject to reduction should a foundation grant for the project be received.

St. George’s, Central Falls, Revolving Loan Request. Guests from St. George’s joined the meeting. With the assistance of Robert Bergstrand, who assisted in defining and securing bids for the project, provided a summary of the need for, and work required, to convert to a gas fired energy system for three heating zones. A special problem is three non-operating radiators. The extent of repairs needed will not be known until the new system is running. Based on the low bid a loan of $44,850 is needed.  There was a lengthy discussion about how best to structure a loan that will work for the church. The guests left the meeting.

Following a further discussion it was Moved, Seconded and VOTED to Approve a Revolving Loan of $34,000 for 10 years at 1.50% with no payments prior to January 2015. This approval is based on the assumption that $10,850 in funding will be available from an alternate source as suggested by the Bishop.

In addition it was also Moved, Seconded, and VOTED that unpaid apportionment due for 2014 in the amount of $7,610 be waived as requested by the Church officers present at the meeting. Every effort will be made to collect salary account reimbursement as stated in the Church and Diocesan budgets.

St, John the Evangelist, Newport, Mudrak Fund request for Hearing Aid assistance. The proposal was reviewed at length, with the conclusion that as presented it is unclear what the cost is for the sound system and what the cost is for the hearing assistance add on. It was Moved, Seconded and VOTED to ask St. John to resubmit the application for Mudrak funds with a clearer statement of sound system costs and supplemental hearing assistance costs.

Audit Report. The Audit management letter was briefly discussed, noting that this was a clean audit for 2013 and the matters reviewed in the management letter either have been or are in the process of being addressed by staff. Further discussion and review is deferred to the December meeting of COF.

Council Representative. It was agreed that Mr. Robert Bergstrom will continue to serve as the Diocesan Council representative of the COF as required by Canon.

St. Michael’s Church, Bristol has inquired if its Rectory knob and wire electric system is eligible for a grant to correct code deficiency.

A gift has been received for the Revolving Loan Fund of $50,000 from a donor advised fund at the Rhode Island Foundation. Acknowledgement has been made.

The Finance Office will contract with the current auditor to perform some functions previously done by the Comptroller.

Church of the Beloved, Pascoag, new Fire Alarm system is up and in operation as of today.

The meeting was adjourned at 12:15 p.m.

Respectfully submitted

Edwin F Hallenbeck, Secretary