Diocese of Rhode Island
Commission on Finance
Meeting, May 9, 2017
St, Luke’s Church, East Greenwich
Present: Robert Batchelor; The Rt. Rev. Nicholas Knisely; The Rev. Erik Larsen; Michael Lofaro; David Terry; The Rev. Peter Tierney (by phone).
Also present: Dennis Burton; Joan DeCelles; The Rev. Canon Linda Grenz; The Rev. Edwin Hallenbeck; Jim Rezendes (by phone).
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 April 11, 2017 were approved as distributed.
Finance Report for April. The full report was distributed for review. The Financial Variance Analysis report states Income and Expense items that that vary noticeably from budget. Income: Episcopal Charities is behind in its Drive for ‘17. Cumulated Expenditures are $161,000 under budget. Most variances are due to timing and are not viewed as unusual.
Apportionment Aging Report. Three churches are behind and viewed as problematic, with follow up needed: St. George’s, Central Falls; St. David’s, Cranston; St. Peter’s & St. Andrew’s, Providence. Grace Church, see below.
CFO Report. Mr. Burton stated that a study of a Five year Forecast of income is well under way. There are two primary income streams: a) Apportionment from churches; and b) DIT from investments. Both are being reviewed. Preliminary date from a small group of churches indicates a possible drop in income of 14%± with more data needed to establish a trend line. Additional churches have been invited to participate. This data will be of value to the churches as well as the diocese. Careful review of the DIT is needed to determine if revenue enhancement is possible using other investment models.
Grace Church Update. Grace Church continues to pay apportionment using a formula they created rather than that established by Diocesan Convention. The church has been informed that this does not conform with ECUSA Canons and procedures. The conversation is ongoing.
St. Peter’s-by-the-Sea Outreach. Mr, Terry reported that he recently met with the treasurer of St. Peter’s to discuss recent concerns and actions (see COF Minutes 2/14/17 and 4/11/17). While the matter is somewhat confusing the Treasurer understands and agrees with the COF interpretation of Parochial Report definitions relating to outreach.
Long Term Financial Succession Planning. Chair Lofaro indicated there are concerns that the personnel structure of Diocesan staff is aging and that changes appear inevitable in the next few years. The Bishop suggested that a high priority is to identify an Assistant Treasurer to work with Mr. Batchelor. Mr. Batchelor noted he has some ideas he is considering. It was suggested that a future Treasurer should preferably be a CPA. Additional discussion suggested that a
working team would be helpful addressing this matter. The Bishop suggested looking in detail
how other similar size dioceses handle financial matters.
Property Committee. (Mr Rezendes joined by phone). Mr. Rezendes reviewed the history and activities of the Committee since its formation in 2014. A set of slides outlined the Committees work in some detail. A number of places and projects have been analyzed, recommended solutions, and in many cases accomplished actions. The Committee initially viewed itself as a pool of talent available to get things done. More recently the group has shifted from regular meetings to functioning on a project basis. This is difficult without knowing what it can do and how far it can go, and what is its working arrangement? Officially it reports to the COF but day to day it works with the CFO. At present a 2017 work plan is established. Emergencies need to be considered, and a work plan for 2018 and beyond needs to be worked on. It was agreed that the current working structure is working well and should remain in place, i.e. the Property Committee thru its Chair reporting to the CFO. The CFO in turn can keep the COF informed and request authorization and recommendations to Council as needed. It was also agreed that the Mission and Purpose of Diocesan properties needs to be defined and looked at for the long term, i.e. the next 50 to 100 years.
It was agreed that a list of properties that should be sold is needed and the CFO was asked to prepare such a list.
It was Moved, Seconded and VOTED to recommend to Diocesan Council that up to $25,000 be allocated for legal and related costs in connection with two ECC proposed projects, for developing one or more Solar Farms, and the possible sale of a Land Conservancy of waterfront land. Both projects are at the early idea concept stage.
It was Moved, Seconded and VOTED to recommend to the Standing Committee that we sell the land upon which a Mobile Station is located on Elmwood Avenue in Providence.
The meeting was adjourned at 6:52 p.m.
Respectfully submitted Edwin F Hallenbeck Secretary
Next meeting: June 13, 2017 at 5:00 p.m.
Property Committee. (Mr Rezendes joined by phone). Mr. Rezendes reviewed the history and activities of the Committee since its formation in 2014. A set of slides outlined the Committees work in some detail. A number of places and projects have been analyzed, recommended solutions, and in many cases accomplished actions. The Committee initially viewed itself as a pool of talent available to get things done. More recently the group has shifted from regular meetings to functioning on a project basis. This is difficult without knowing what it can do and how far it can go, and what is its working arrangement? Officially it reports to the COF but day to day it works with the CFO. At present a 2017 work plan is established. Emergencies need to be considered, and a work plan for 2018 and beyond needs to be worked on. It was agreed that the current working structure is working well and should remain in place, i.e. the Property Committee thru its Chair reporting to the CFO. The CFO in turn can keep the COF informed and request authorization and recommendations to Council as needed. It was also agreed that the Mission and Purpose of Diocesan properties needs to be defined and looked at for the long term, i.e. the next 50 to 100 years.
It was agreed that a list of properties that should be sold is needed and the CFO was asked to prepare such a list.
It was Moved, Seconded and VOTED to recommend to Diocesan Council that up to $25,000 be allocated for legal and related costs in connection with two ECC proposed projects, for developing one or more Solar Farms, and the possible sale of a Land Conservancy of waterfront land. Both projects are at the early idea concept stage.
It was Moved, Seconded and VOTED to recommend to the Standing Committee that we sell the land upon which a Mobile Station is located on Elmwood Avenue in Providence.
The meeting was adjourned at 6:52 p.m.
Respectfully submitted Edwin F Hallenbeck Secretary
Next meeting: June 13, 2017 at 5:00 p.m.
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