Diocese of Rhode Island
Commission on Finance
Meeting, December 8,
2015
Higgins Room
Present: Robert
Batchelor; The Rev. Eric Larsen; Michael Lofaro; Stephan Sloan; David Terry;
The Rev. Joyce Thorne.
Also present: Dennis
Burton; Joan DeCelles; The Rev. Edwin Hallenbeck.
Guests: Church of the
Ascension, Wakefield, The Rev. Rob Travis, priest in Charge; Etta Bates,
Treasurer.
The meeting was called to order at 7:30 a.m. by Chair
Lofaro. An opening prayer was offered by Deacon Thorne.
The Minutes of
the meeting of November 10, 2015 were approved as distributed, noting one
misspelled name.
Finance Report
for November was reviewed by Mr. Batchelor. A number of accounts are out of
line with budget expectations, which is usual this time of year. He stated that
careful review indicates that most, if not all accounts, should settle out by year-end
at close to budget.
Time of Meeting.
This early morning time was not as convenient as hoped for. The Chair suggested
that to avoid commuter traffic we consider St. Luke’s, East Greenwich as a
location for a 5:30 p.m. time. It was agreed that Second Tuesday at 5:30 would
work best. [Following the meeting this time was confirmed with St. Luke’s.]
Apportionment Aging.
With most churches current or one month behind, St. David’s, Cranston and St.
Thomas, Greenville continue several months behind. Staff is in contact with
both.
Church of the
Ascension. Guests joined the meeting. Fr. Travis reviewed the issues and
plans to repair and upgrade the walkway and hot water systems. RISE is being
asked to participate in the Rectory needs. It was noted that the parish has
funds in the DIT. Several questions were discussed. The guests were thanked and
left the meeting. Following additional discussion it was Moved, Seconded and Voted to approve a Revolving Loan of $14,200 for
five years at a net rate of 1 ½ % with DIT funds pledged as guarantee.
Chief Financial
Officer’s Report:
•
Major Gifts Policy. Mr. Burton
reviewed the resources used in preparing the Gifts Policy. The PECUSA policy
was available as a model, along with those of several other Dioceses. The
language in all was similar. A number of changes in the models were made to conform
with DioRI structure and RI law. The proposed draft has been reviewed and
approved by the Chancellor. There was a lengthy discussion looking at a number
of questions and suggestions to improve clarity. This policy is intended to
serve as a model for parish use as well. There was general agreement on the
statement subject to corrections as discussed, with review by the Bishop, the
Trreasurer and Chancellor. The corrected document will be presented to the
January meeting for adoption.
•
Revolving Loan Fund. Mr. Burton
presented a proposal for restructuring the source funds available for Revolving
Loans and preserving income from the RLF fund in the DIT. This would be
accomplished by executing a $10 million line of credit [LOC] with US Trust
qualifying for a reduced interest rate with a collateral pledge of DIT funds.
The RLF would continue to function as it does now. Cash for loans would come
from the LOC. The RLF fund in the DIT will be preserved to yield full interest
income. Savings to the Diocese on the total RLF loan fund would be $40,328.
Borrowers would notice no change in procedure.
°
In addition a Companion Loan program
may be established for larger, longer term loans of 10 or 15 year terms where
churches would not qualify for commercial loans. This would be a new program to
assist churches. A new set of guidelines, requirements and application process will
be needed. A sample case was reviewed illustrating the importance of such a
program. The LOC would be the cash resource with an appropriate higher interest
rate than the RLF current program to cover incremental Diocesan administrative
costs.
°
Additional Recommendation. Mr.
Burton noted that the current RLF in the DIT carries a restriction that income
not used for loans be reinvested in the fund. With a current $1.2 million
balance there are sufficient funds available. It is suggested that the
restriction be changed to allow the Bishop upon recommendation of the COF to
designate that all or part of the income be assigned for general Diocesan use.
This could provide up to $60,000 annually available for Diocesan use.
There
was general agreement that these proposals are appropriate for formal
consideration. It was agreed rewriting and a number of questions need to be
clarified and operational details established. Final proposal needs review by
the Chancellor. Mr. Burton plans to complete a final proposal for the January
meeting.
•ACS
accounting structure is being updated to blend with the long range planning
software, PlanGuru with a planned January start date.
*
Peoples Power and Light, a non-profit purchase alliance has reviewed the
Diocese facilities (not churches) stating a potential savings of $3,000 annually
in our heating oil cost. Possible extension to Churches may be considered at a
later date.
*
May House improvements are under study to determine needs and costs as well as the
funding.
The meeting was adjourned at 9:30
a.m.
Respectfully submitted
Edwin F Hallenbeck
Secretary
Next meeting: January 12, 2016. 5:30P.M.
St. Luke’s, East Greenwich
