Meeting — November 10, 2015

Diocese of Rhode Island

Commission on Finance

Meeting, November 10, 2015

Higgins Room

Present:  Robert Batchelor; The Rt. Rev. Nicholas Knisely; The Rev. Eric Larsen; Michael Lofaro; Stephan Sloan; David Terry.

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

Guests: St. Mary’s, East Providence: The Rev. Alvin Marchetti, Priest in Charge; Mike Boyce, JW.

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

The Bishop welcomed David Terry, recently elected at Convention, as a new member of the Commission. The Bishop appointed Michael Lofaro as Chair of the Commission until next Convention. Mr. Lofaro assumed the Chair.

The Chair thanked Robert Bergstrand for his two terms on the COF ending at Convention, and for his many contributions to the work of the Commission, especially his concerns over new Fire Code impact on our churches and for his service representing COF on Diocesan Council.

• Election of Secretary and Representative to Diocesan Council. Following discussion it was Moved, Seconded and Voted that The Rev. Edwin Hallenbeck be Secretary of the Commission, and further that he serve as Commission on Finance representative on Diocesan Council for the next year.

The Minutes of the meeting of October 13, 2015 were approved as distributed.

Finance Report for October 2015 was reviewed by Mr, Batchelor. Several accounts that appear to be at variance were noted, with expectation that by year end most should be at planned points with a near balanced budget. Charities gift receipts are held as cash anticipating grant payouts by the end of the month.

Apportionment Report. Two churches are significantly in arrears, St. David’s, Cranston and St. Thomas, Greenville. St David’s recently paid three months of arrears.

Major Gifts Policy. Deferred to the December meeting.

Mudrak Fund Grant. A request from St. Andrew’s by the Sea, for a grant to provide a hearing loop system in aid of persons with hearing aids at a cost of $3,325.41. Following a brief discussion it was Moved, Seconded and Voted to allocate a grant of $3,325.41 from the Mudrak fund to St. Andrew’s by the Sea, Little Compton to improve their sound system in aid of hearing impaired.

Accessibility and Safety Grant. A request from St. Ann’s by the Sea, for a grant of 50% of the cost of installing a replacement meter socket and a water filtration system to provide potable water in the church at a cost of $7,372.44, half being $3,686.22. Both of these were required in recent building inspections. Following discussion it was Moved, Seconded and Voted to allocate a grant of $3,686.22 from the Resource Fund to St. Ann’s by the Sea, Block Island as one half the cost of a replacement meter socket and a required water filtration system.  One vote abstention.

St. Mary’s, East Providence, Guests, noted above, joined the meeting. Two requests were presented for consideration. #1, A Revolving Loan of $50,000 for several upgrade and improvement projects including; interior and exterior painting for church and rectory; refurbishing Parish Hall; Kitchen improvements; hallway lighting; painting and lighting in sanctuary, choir room and sacristy, flooring in Vicar’s office. Detailed cost bids available for all projects. #2, A Code Violation Grant request was submitted for providing handicap access to the Parish Hall by either installation of a lift or construction of an approved ramp, the lift being a significantly higher cost. There was a lingthy discussion of alternative solutions with the following actions:

It was Moved, Seconded and Voted to approve, subject to concurrent approval by the Standing Committee, a Revolving Loan of up to $50,000 to St. Mary’s, East Providence for parish improvements for five years at a net rate of 1 ½% with DIT funds pledged as guarantee.

It was Moved, Seconded and Voted to allocate a grant of Code Violation Funds to St. Mary’s, East Providence of up to $10,000 pending a final decision of lift or ramp solution.

Mr. Burton as Chief Financial Officer will give final approval to both projects depending on actual costs.

Funds Transfer to Center for Reconciliation(CFR). Mr. Batchelor reviewed the recent history of gifts made for the purpose of considering the future of the Cathedral and other facilities in the block area. When the first study was completed funds remaining were returned to donors or held for future work. The CFR is now the continuation of this work and it is appropriate to move the balance of funds to the CFR. This is a combination of donor unused funds and gifts made to the Diocese for the CFR project. Following discussion it was Moved, Seconded and Voted to transfer $19,801 currently held by the Diocese to the Center for Reconciliation for use in current projects. There were two abstentions.

Additional items:

• Mr Burton reported that the Planguru forecasting program has been leased and initial testing begun. It is hoped that initial broad based work can begin in January using 2016 data in planning for 2017.

• COF meeting time. In order to include members who are unavailable during the work day, there was a lengthy discussion of alternative times, primarily; #1. Early a.m. #2. 5:30 to 7:30 p.m. #3. 7:00 to 9:00 p.m. It was agreed there are positives and negatives to each of these. It was agreed to schedule the December and January meetings at 7:30 a.m. Reconsider the schedule in January. The Bishop reminded the COF that technology is available in this room for Skype image interchange from away participants as well as conference call participation.

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

Respectfully submitted

Edwin F. Hallenbeck

Secretary

Next meeting:  December 8, 2015  7:30 a.m.

Meeting — October 13, 2015

Diocese of Rhode Island

Commission on Finance

Meeting, October 13, 2015

Higgins Room

Present:  Robert Batchelor; Robert Bergstrand; Dennis Burton; Michael Lofaro (tel); The Rev. Joyce Thorne.

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

The meeting was called to order by Mr. Batchelor at 10:05 a.m. An opening prayer was offered by Canon Grenz.

The Minutes of the meeting of September 8, 2015 were approved as distributed.

Finance Report for September 2015 was reviewed by Mr. Batchelor. There are no unusual items at this time. Two matters were discussed as future concerns. First, there are pending changes in the standard formatting of audit reports for non-profit organizations. Some adjustments to account structure may be needed. Second, is the matter of reflecting unrealized gains or losses only once a year. This will be discussed with the DIT Committee with a view to more frequent updates.

Apportionment Report. One Church is six months behind, Canon Grenz has met with the Vestry. There are significant issues to be overcome. Three Churches are two months behind. Telephone follow up will be made.

Old Business. Two matters continue on hold.

     Major Gifts Policy. Draft should be ready by November.

     Forecasting Update. Mr Burton suggested a review of available software indicates that “planguru” a cloud based application is best suited to non-profit organization needs, at a very reasonable cost. He will follow up. A worksheet for “planguru” was distributed.

New Business.

     Review of Checking Account Balance. Mr. Burton distributed analysis of monthly cash balances in combined checking accounts, clearly indicating that balances are high, beyond a reasonable general use need. It was suggested that $400,000 be transferred to the DIT cash reserve account, thereby becoming income producing. It was further suggested that we investigate opening a line of credit account as an emergency reserve. Following discussion it was Moved, Seconded and Voted to transfer $400,000 from checking account(s) to the DIT cash reserve fund, and to adopt a policy to review cash flow needs every six months.

     Review of 2016 Budget. The draft 2016 Budget was reviewed in detail. Discussion was focused on a number of changes in structure (what items are where in the budget) and in allocations for some programs. Mr. Burton provided a print version of a presentation to pre-convention meetings and for Convention, stressing better understanding of how things are arranged with the ongoing focus on supporting congregations. It was also noted there is a significant change in the way Hispanic Ministry is supported, with a view toward enabling these activities to become self sustaining. Following discussion it was Moved, Seconded and Voted to approve the 2016 Budget as Amended. The budget for 2015 will be forwarded to Diocesan Council.

Additional Item. Mr. Bergstrand stated this is his last meeting with the Commission as his second term is over at Convention. He expressed his thanks for the opportunity of working with this group of committed and talented members and support persons. The COF in turn thanked him for his service.

The meeting was adjourned at 12 noon.

Respectfully submitted

Edwin F. Hallenbeck

Secretary

Next meeting: November 10, 2015 at 10:00 a.m.

Meeting – September 8, 1915

Diocese of Rhode Island

Commission on Finance

Meeting, September, 8, 2015

Higgins Room

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

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

Guests: St. Barnabas, Warwick: The Rev Jim Bocchino, Priest in Charge; Mike Marsh SW; Stan Schofield, TR.

St. Mary’s, East Providence: The Rev Alvin Marcetti, Priest in Charge; Mike Boyce, JW. Gordon Hubbard, TR.

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

The minutes of the meetings of June 9, 2015 and August 11, 2015 were approved as distributed.

It was noted by the Chair that COF member Dennis Burton has been appointed Chief Financial Officer, effective September 8. He will continue as a member of the COF until Convention at which time his term expires.

Finance Report for August 31, 2015 was reviewed by Mr. Batchelor. He stated most lines are running about as expected. Funds have now been received for sale of the Charlestown land adjacent to Church of the Holy Spirit. These funds will be placed in the DIT and are available in the Revolving Loan Fund. The book value of the Cathedral of St. John has been added to the Diocese physical plant assets at $4,674,800. The Cathedral is now a Mission Parish. Several questions regarding numbers displayed in the current report were discussed and clarified. Several of these matters are being corrected as the budget for 2016 is being constructed

Apportionment Report. The only church significantly behind at this time is St, David’s, Cranston. It was agreed that Canon Grenz will be in phone follow up.

Appraisal Report for Warwick Neck property. The St. Barnabas, Warwick guests joined the meeting. Fr. Bocchino noted the merger of St. Mary’s Church with St Barnabas in 2009. The merged congregation in the St. Barnabas Church has gone smoothly. The former St. Mary’s property has three sections, all part of a single lot. The Rectory, the former Church, and, the Parish House. There is a memorial garden behind the Rectory. The Parish House has been rented to Heritage Christian Fellowship for five years. They have made an offer to purchase the Parish House, parking lot and old church. There was a lengthy discussion of how best to proceed with negotiations for the sale, keeping the Rectory and Memorial Garden in St Barnabas name. No formal actions were taken, and the St. Barnabas guests found the conversation very helpful.

Revolving Loan Request. St. Mary’s guests joined the meeting. Fr. Marcetti reviewed recent changes at the church, including a thorough cleanup of the Rectory, now rented to the Jonathan Daniels Internship program and an upgrade and cleanup of the Parish Hall. The Loan request includes completing the Parish Hall project and a number of other projects. Discussion revealed that several of these projects, a Handicap Access ramp and Handicap Bathroom facility can be paid for with a Diocesan Grant, details to be worked out with Canon Grenz. The guests left the meeting.

No action was taken on the request pending specific determination of what can be included in the Diocesan grant request. It was agreed to consider both matters at the October meeting.

Policies—Major Gifts Policy. Discussion deferred to October.

            — Policy for Transferring and Bookkeeping of DIT Funds. A statement dated 6/11/2015 for this process was distributed by Mr, Batchelor. Following brief discussion it was Moved, Seconded And VOTED that the Policy & Bookkeeping procedure – Transfer of Funds between Diocese & Diocesan Owned Funds is the official policy for all such matters from this time forward.

Fire Code Status in Churches. A summary chart was distributed stating the responses to five (5) questions. There are still a number of churches who have not responded to our request that they review their status under the new fire code. This can be a very serious matter as any church not in conformance can be closed for public use by the local Fire Marshall. Follow ups will be made to non-responding churches.

St, John the Evangelist, Newport, Mudrak Fund Request. A revised Request for Mudrak Funds to upgrade their sound system for hearing assistance was distributed. This request conforms to the guidelines for the Mudrak Fund. Following discussion it was Moved, Seconded and VOTED to allocate $9,967.90 from the Mudrak Fund to St. John the Evangelist, Newport for the purpose of upgrading their sound system for hearing assistance.

Episcopal Charities Estate Gift. Copy of letter from Citizens Bank acting as Executor of the estate of Beatrice C. Minkins stated that $10,000 had been designated to Episcopal Charities for general use. A check for this amount was received on 6/11/15.

St. Dunstan’s School of Sacred Music. A determination letter dated August 19, 2015 has been received from the IRS terminating St. Dunstan’s status as private foundation. It has been reclassified as a 509(a)(3) public charity, tax exempt under 501(c)(3). This places these funds under the jurisdiction of the Diocese. Mr, Batchelor stated that hopefully this matter is resolved.

The meeting was adjourned at 12:02 P.M.

Respectfully submitted

Edwin F Hallenbeck, Secretary                                  Next Meeting: October 13, 2015

Meeting — August 11, 2015

Diocese of Rhode Island

Commission on Finance

Meeting, August 11, 2015

Higgins Room

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

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

Guests: Church of the Redeemer, Providence: The Rev. Patrick Campbell, Rector; Ed Bailey, JW; William Trimble, Treasurer.

The meeting was called to order at 12:05 p.m. by Chair Lofaro. An opening prayer was given by Canon Grenz.

1. Revolving Loan Request. A Request for a Revolving Loan from Church of the Redeemer, Providence for $50,000 for the purpose of installing phase one of a heating system conversion from oil to gas was presented for discussion, note guests present. A detailed plan was reviewed, noting that the gas conversion will be undertaken, with one boiler replaced at this time. The church facilities will be changed to zones, enabling heat to be available only where needed. The second boiler will be replaced in phase two. It is planned that the conversion will be completed before the heating season begins. There was a lengthy discussion with a number of questions answered. The guests left the meeting.

      Following review of the proposed loan, it was Moved, Seconded and VOTED , to approve a Revolving Loan of $50,000 to Church of the Redeemer, Providence at 2.25%, less 0.75% (with DIT Fund pledge), net rate of 1.5%, for five years, subject to approval of the Standing Committee.

2. Application for Grant. Canon Grenz distributed an Application for a State Preservation Grant to be submitted to the RI Historical Preservation and Heritage Commission on behalf of the Cathedral of St. John. Project cost for currently planned renovations is $358,767. The application is for $150,000. It was Moved, Seconded and VOTED to concur with the Application and authorize Canon Grenz to sign and forward it for consideration.

3. Draft Conflict of Interest Policy. Mr. Batchelor distributed a draft policy statement and asked that it be reviewed with care and considered at the September meeting.

4. Draft Reporting of Financial, Auditing & Governance Improprieties Policy. Mr. Batchelor distributed a draft policy statement and asked that it be reviewed with care and considered at the September meeting.

The meeting was adjourned at 1:20 p.m.

Respectfully submitted

Edwin F. Hallenbeck, Secretary