Diocese of Rhode Island
Commission on Finance
Meeting, December 7,
2017
St. Luke’s Church,
East Greenwich
Present: Robert Batchelor; Sarosh Fenn; The Rev, Erik
Larsen; The Rev. Peter Tierney.
Also present: Dennis Burton; Joan DeCelles; The Rev. Canon Linda
Grenz; The Rev. Edwin Hallenbeck.
The meeting was called to order at 5:05 p.m. by Chair
Tierney, who offered an opening prayer.
The Minutes of
the meeting of November 14, 2017 were approved as distributed.
Financial Report.
Mr. Batchelor commented on the November 30th Report, the Balance
sheet reflects a reduction in cash as Episcopal Charities grants have been
completed. Revenue received is close to plan. Expenses show most lines near
budget. A number of December items are expected to settle out by year end.
Apportionment Aging
Report. Most churches are paid current with some lagging by one or two
months and are expected to complete payments by year end. Three churches
continue as problem cases. The first two, St. George’s, Central Falls ($13,546.),
and St. Peter and St. Andrew, Providence ($7,674.31) do not have funds
available to pay apportionment. It is clear that both churches are experiencing
very difficult operating circumstances. Following discussion, it was, Moved, Seconded and VOTED to recommend to
Diocesan Council that an Apportionment Adjustment be recorded by year end for
St. George’s, Central Falls for $13,546.; and for St. Peter and St. Andrew,
Providence for $7,674.31 for reason of inability to pay.
In
addition, the case of Grace Church, Providence was reviewed, noting that the
COF has determined that the Apportionment Grace Church has been paying in 2017
does not conform to the ECUSA Canons and the underpayment is not in accordance
with accepted accounting practice. Audit review of the matter is that it be
written off as bad debt for 2017, subject to future collection. It is expected
to be paid as they are able. It was
Moved, Seconded and VOTED to recognize unpaid Apportionment of Grace Church,
Providence of $39,021. as bad debt, subject to repayment.
CFO
Report, Mr. Burton.
Hallworth House is a 56 bed long term
care Nursing Care facility, established in the early 1960s before the Medicare
and Medicaid Federally based systems were created. The HH facility is not well
suited for operating within these systems. It is presently experiencing
significant vacancies with 40% private payers and 60% third party payers. Building
design limits operational efficiency. HH is located on Diocesan land, its Board
is elected by Diocesan Council and is within the Diocese of RI sphere of
ownership. Over the last eighteen months HH has experienced major changes, low
census (occupied beds), Rehab Center in deficit, HH running a deficit which is
increasing, building with major capital improvement needs. It has engaged in a
Strategic Planning process without significant results. It is clear there are
major issues looming in the near future. Nursing Care beds are in oversupply in
the metropolitan area, Federal and State Regulations are becoming more
stringent. Until recently little current operations data was available to the
Diocese. The outlook for Hallworth House is not favorable. It must be noted
that HH is part of the Diocese and future changes will have an impact on
Diocesan operations, it falls in the “We are all in this together” arena. It
was agreed that the Chair of CF and the Vice President of Diocesan Council need
to be brought into the picture and that Diocesan Council needs to be informed
of the current situation.
2017 Surplus. It is anticipated that
an operating budget surplus for 2017 will be similar to prior years in the
vicinity of $150,000±. The CFO suggested it might be prudent to consider
assigning the surplus as a Capital Improvement Fund. It was agreed the matter
needs further discussion in January.
ECC Projects. Following last month’s
discussion and approval of initial funding by Council, both the Solar Farm and
Hydroponic Farm projects are progressing. Additional personnel have been added
to the Task Force, and Consulting Firms engaged in preparing an application to
National Grid for establishing a power linkage.
Sale
of Land. Sale of the land at 389
Elmwood Ave, Providence to Global Companies,
LLC is proceeding with preparation of a Term Sheet with special care for indemnification
of environmental liability.
Old
Business:
Holy Trinity, Tiverton, Revolving Loan
Application, see previous discussions. Revised planning and capital
campaign giving data has been submitted and reviewed and the Bishop met with
the Rector and Vestry. The new data is viewed as providing much better support
for undertaking the proposed loan. Following discussion, It was Moved, Seconded and VOTED to recommend to the Standing Committee
a Revolving Loan of $30,000. over 5 years at a rate of 3.25% to Holy Trinity
Church, Tiverton. It is suggested to Holy Trinity that placing loan fund
security in the DIT would decrease the interest rate .
New
Business
St. Peter and St. Andrew, Providence
Revolving Loan. Further discussion of issues at St. Peter and St. Andrew
note that the church is almost at a standstill with less than a dozen
parishioners. It will need a true restart in order to become a fully functional
church, with many side issues. Among issues is an outstanding Revolving Loan
the church is unable to pay. It was Moved,
Seconded and VOTED to restate the St. Peter and St. Andrew, Providence,
Revolving Loan outstanding of $31,432. as a bad debt against the Revolving Loan
Fund and to refer the matter further to the Standing Committee.
Depreciable Asset Threshold. Mr.
Batchelor reviewed the current maximum of $3,000 that may be depreciated in one
year. Changing costs of equipment and building costs suggest an upgrade for
this figure. It was Moved, Seconded and VOTED to change the Diocesan Policy for the
threshold of Depreciable Assets from $3,000 to$6,000, and that church
Treasurers be so infirmed.
Star Street property. The small parcel
of land on the North side of Star Street and East above a parking lot area used
by Hallworth House has again been asked about for purchase by a neighbor. Mr.
Burton is following the lead with the assistance of the Treasurer Mr.
Batchelor.
DIT Management. It was reported that
the revised Board of the DIT Fund is carefully reviewing the management and
oversight of how the funds are managed on a day to day and long range basis. It
is suggested other similar funds appear to be receiving better returns.
David Terry. It was reported that David
Terry, former member of the COF, and a patient during a recent illness at
Hallworth House, died on November 27th. His funeral will be Saturday
December 9th at St. Augustine’s Church, Kingston. RIP.
The meeting was adjourned at 7:05
p.m.
Respectfully submitted
Edwin F. Hallenbeck
Secretary
Next meeting: January 4, 2018 at
5:00 p.m.
No comments:
Post a Comment