Minutes — April 12, 2016

Diocese of Rhode Island 

Commission on Finance 

Meeting, April 12, 2016

St. Luke’s Church, East Greenwich

Present: Robert Batchelor; Sarosh Fenn; The Rt. Rev. Nicholas Knisely; The Rev. Erik Larsen; Michael Lofaro; Stephan Sloan; David Terry.
Also present: Dennis Burton; Joan DeCelles; The Rev. Canon Linda Grenz; The Rev Edwin Hallenbeck.
Guests: The Rev. Susan Wrathall, Rector; Shirley Kolarick, Treasurer, St. Mark’s Church, Warwick.

The meeting was called to order at 5:00 p.m. by Chair Lofaro. An opening prayer was offered by Bishop Knisely.

The minutes of the meeting of March 8, 2016 were approved as distributed.
Financial Report for March 2016. Mr. Batchelor reviewed the report noting that timing concerns still cause some items to vary from budget. It is planned that adjusted budget forecasting may begin next month to view some accounts in a more timely manner, All accounts are within reasonable goals. Related to Audit adjustment process he recommended a change in an older statement. It was Moved, Seconded and VOTED to remove the $3,500., 2014 Allowance for Uncollectables. This reserve is no longer needed.
Apportionment Aging Report. One Church is three months behind, with a verbal report of a recent payment.
Gifts Acceptance Policy. A revised statement was reviewed, with the Chancellor Mr. Richard Sayer, Esq. participating by phone. Some concern was noted over how gifts to annual giving programs such as Episcopal Charities and ECC would be considered. It was stated that the Acceptance Policy applies primarily to gifts to endowment and for unusual and special purposes which need careful review and formal acceptance by the COF. Annual giving of cash gifts are routine in nature and may be acknowledged by the appropriate program personnel. Of special concern would be non-cash gifts such as real estate requiring special review. The discussion responded to all questions, following which it was Moved, Seconded and VOTED to approve the Episcopal Diocese of Rhode Island Gift Acceptance Policy and Donor Gift Agreement form as Diocesan Policy and forward it to Diocesan Council for final approval. The policy material shall be posted on the Diocesan Website and made available to others concerned who may be interested.
St. Mark’s, Warwick. Request for Revolving Loan and Safety Code Grant. Guests noted above joined the meeting. The proposed project is a Fire Code upgrade recommended as essential by the Fire Marshall required for immediate implementing. One bid submitted, two others verbal not yet in writing. Cost is estimated as $20,927 subject to review by the Fire Marshall. Several questions were answered. It was stated that the church is undertaking a spring second pledge effort to raise funds for the matching need. St. Mark’s requested that this loan request be help separately from the existing Revolving Loan. The net request is for a $10,000 Code grant and $10,927 Revolving Loan, subject to final negotiation with the Fire Marshall. The guests left the meeting. Note: A decision on the request was deferred until after the Accessibility/Safety Code Grant Policy was reviewed (see below).

Accessibility Safety Code Grant. There is a balance of $65,000 remaining in the originally allocated $100,000 fund from grants already made. All mission churches have been canvassed by phone with three indicating fire code violation needs. Among other churches St. Mark’s, Warwick and St. David’s, Cranston are known to have fire code violation needs. Notice will be sent promptly to all churches reminding them of available funding and the need for rapid response. Requests for ADA projects will be considered only after all Fire Code matters are resolved. Following discussion the following two motions were considered:

• It was Moved, Seconded and VOTED to approve a Revolving Loan of $20,927 for St. Mark’s Church Warwick for five years at the rate of 1.50% with DIT on deposit, and concurrence of the Standing Committee. The loan is subject to adjustment depending on available grant funds and approval of the File Marshall for the project.
  
• It was Moved, Seconded and VOTED that Accessibility Grants be limited to Fire Code violation needs, with $30,000 reserved for Mission churches, requests then being open to all churches. Applications should be received within 25 days of this meeting, and considered at the May 10 COF meeting.
  CFO Report. Mr. Burton stated that at the March Council meeting pledging of DIT funds as collateral for a line of credit with U.S.Trust was approved, and the application has been filed. Once the response and terms have been received the matter will be reviewed with special counsel expert in such transactions. Results will be reported to COF. Mr. Batchelor agreed to assist in the process while Mr. Burton is on medical leave.
  An analysis of the relative cost of leasing or purchase of an automobile for the Bishop was presented and discussed. His current lease expires this month. Following discussion it was Moved, Seconded. and VOTED to purchase a vehicle for the Bishop’s use.
  Other matters. The Bishop introduced some questions regarding DIT holdings and requests by some members of the Investment Committee to retire from that office. It was agreed that a subcommittee review these questions and report to the COF any changes that might be needed. Mr. Lofaro and Mr. Sloan agreed to work on the subcommittee, with others to be added as they may be needed.
  It was noted by the Chair that information reported by St. John’s, Newport in its application for funds is not clear regarding financial status.
  
  The meeting was adjourned at 6:49 p.m.
  Respectfully submitted 
  Edwin F Hallenbeck Secretary
  Next meeting: May 10, 2016. 5 p.m. St. Luke’s, East Greenwich