Minutes — June 9, 2015

Diocese of Rhode Island

Commission on Finance

Meeting, June 9, 2015 

Higgins Room

Present: Robert Batchelor; Robert Bergstrand; Dennis Burton; The Rt. Rev. Nicholas Knisely; The Rev. Eric 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.
The meeting was called to order at 10:00 a.m. by Chair Lofaro. An Opening prayer was offered by Canon Grenz.
The Minutes of the meeting of May 12, 2015 were approved as distributed.
The Finance Report for May was reviewed by Bob Batchelor. There are no unusual variances other than the matters of timing which are expected to level out by year end. The 2014 Audit Report is complete and in preparation in final form. There are no substantive issues. Following review by the Audit committee it will be available to the COF.
Apportionment Aging Report. Payments are improving. Reviewing this report over several months is useful in observing trend lines, especially when the following Report is also considered.
2014 Investment Draw Over 5% of Market Value Report. Ms. DeCelles distributed this newly prepared report showing 20 churches at 5% draw or higher. It was noted there are a variety of unique situations in some churches that cause distortions in the figures. As noted, the above data from the two reports begins to identify church situations that need to be looked at with care.
Major Gifts Policy. Questions from last month’s discussion are still pending. It was agreed that Mr. Sloan will work with the Bishop in assisting review by the Chancellor. The matter is continued to the next COF meeting.
Policy and Procedure for Transferring DIT Funds. Mr. Batchelor noted that such changes are frequent during the year. Past practice has been to note changes as they occur with booking adjustments at year-end. The Auditor has suggested that the year-end adjustments be a formal procedure by COF. Following additional discussion it was agreed that the Treasurer write up the current informal practice so that it may be approved as an ongoing policy from this point forward, and bring it to the next COF meeting.
Developing a Forecasting Process. Mr. Burton suggested creating a three year view based on current trends. Especially important is looking at revenue trends, where investment income and church apportionment income have good trend line data. Very

important is to begin looking at possible additional revenue sources. First task is to identify questions needing to be answered. Following discussion it was Moved, Seconded and Voted to designate a Sub-Committee of Mr. Burton; Mr. Batchelor, Rev Peter Tierney, Bishop Knisely and Canon Grenz to begin studying and setting forth how this Forecasting Process can be implemented and carried out. The Sub-Committee is asked to periodically report its progress to the COF.
Fire Code and Churches. Mr. Bergstrand reported on what is happening. Following the Station Fire in 2003. State of Rhode Island substantially revised the fire code, leaving inspections and interpretation to City and Town inspectors. This has resulted in substantial variations. Churches were postponed for 10 years to 2014. Some recent inspections at St. Mark’s, Warwick, and St. John’s, Newport have significant deficiencies. It is agreed that the Diocese needs a uniform way to address this issue for churches facing a significant upgrade cost to meet code requirements. Several ideas were discussed, following which it was agreed to gather data from all churches regarding when was their last inspectionand last upgrade took place and do they face any deficiencies? This will be undertaken by staff and reported to the next COF meeting.
Revolving Loan, possible request. Canon Grenz reported a recent conversation with the Rector of Church of the Redeemer, Providence, indicating a preliminary plan for replacing and upgrading the furnace system. Also included is a significant repainting project. No formal request is available at this time. It was agreed that if a full proposal is received in a timely manner the COF will consider it in July either at a special meeting or by Conference Call.
DIT Investment Committee Overview. Mr. Burton distributed a written Report of his participation on the June 8, 2014 Investment Committee meeting. The report was discussed at length. It was noted that Mr. Burton’s visit was welcomed, the Committee has felt somewhat disconnected from the Diocese and is enthusiastic about the COF interest. It was suggested several next steps are needed. 1. Careful review of the guidelines statement. 2. Periodic abbreviated statements of DIT status should be available to COF and Diocesan Council. 3. We need to help churches to better understand the DIT and what it does for them, or could do for non-members. The Bishop noted that the RI- DIT is consistent with such funds in other Dioceses.

The meeting was adjourned at 12:05 p.m.
Edwin F Hallenbeck Secretary
Next Meeting: September 8, 2015
Special meeting in July, on call of the Chair, if needed.