Finance Committee, April 13, 2016

Minutes of the Finance Committee

First United Methodist Church, Santa Rosa

Wednesday, April 13, 2016--Carriage House

 

Present:  Greg Roth (Chair), Chris Bowen, Tokasa Buinimasi, Ryan Comiskey, Mike Ferrel, Heather Young, Larry Schmidt (Treasurer), John DeGroot (Trustees), Bill Stephens (Lay Leader/Staff Parish), Peg Ferrel (Lay Rep to Annual Conf), Mary Brunet (Business Administrator).

Absent:  Charlie Amezcua, Jack Dupre

 

Greg Roth called the meeting to order at 7:00 p.m., beginning with a prayer.

 

Approval of Minutes

Greg noted that last month’s minutes had been previously approved via email.

 

Finance Report

Larry Schmidt reviewed the financial statements for March 2016.  During the month the main checking account balance rose by $26,029.25 to a new balance of $79,570.28.  The operating fund balance increased by $29,703.01 to a new balance of $83,780.50.  The Mortgage Fund Balance of $4,182,546.86 may not be accurate. Also, the change in Total Assets from February to March does not equal the change in Total Liabilities and Fund Balance from February to March.  Mary will work on correcting or explaining these items for the May meeting.

 

Year-to-date (YTD) pledges and gifts were $217,955.61, which is 104.64% of the YTD budgeted amount.  Total YTD income was $254,567.33, which is 104.34% of the YTD budgeted amount.  YTD total expenses were $225,904.44 which is 97.59% of the YTD budgeted amount.  Overall, YTD total income has exceeded YTD total expenses by $28,662.89.

 

Greg brought up that FUMC accounts are partially cash basis and partially accrual, which is known as Modified Cash Basis. Greg and Mary suggested this should be reviewed at the May meeting. Heather moved and Peg seconded; motion passed unanimously.

 

Mortgage Reserve

Discussion was held regarding the existing policy of holding reserves in the Mortgage Account to cover debt payments. Greg said his understanding of the policy is that reserves are expected to equal 6 months of the payment, plus 6 month of property taxes. Apportionments are paid on these funds are not included, as they are pre-paid at the time the funds are placed into the Mortgage Account.

 

Finance Committee’s Budget Recommendations to Church Council

After extensive discussion, Mike Ferrel moved and Peg Ferrel seconded the following recommendation, as amended by Greg Roth:
 

The FUMC Finance Committee recommends the church adopt as the official 2016 budget, the "Annual Budget March 2016 Income & Expense Statement" figures - which total $932,500 Income and $950,492.82 expenses. This results in a total forecasted budget deficit of $17,993, which is composed of an Operating deficit of $1,743 and a Mortgage/Building deficit of $16,250. 

 

Any Mortgage/Building deficit resulting during 2016 shall be funded from the Mortgage/Building account reserve funds. If an Operating surplus results in 2016, it shall fund any Mortgage reserves spent in 2016. Any Mortgage reserves spent in 2016 and not replenished in 2016 shall be budgeted to be replenished in 2017.
 

Motion passed with 7 in favor and 2 opposed.

 

Business Administrator’s Report

Mary gave the update on our Compilation: it is all submitted and she expects the accounting firm’s (Goranson & Associates) report for the May meeting.

 

Improving Transparency by Approving and Posting Minutes Sooner

The Committee agrees that meeting minutes are to be written, approved, and posted within 2 weeks of the meeting.

 

Stony Point Campus Study Group

Greg, Heather, and Bill reviewed this group and its purpose and agenda, which is to discuss uses for the Stony Point property.

 

Other Business

Greg asked for a volunteer to chair the meeting in June, as he will be on a trip. Mike Ferrel volunteered to chair that meeting.

 

The meeting adjourned at 9:20 p.m. with a prayer by Mary Brunet.

 

Next meeting: 7:00 p.m. May 11, 2016 in the Carriage House

 

Respectfully submitted by Heather Young.

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Wed, 04/13/2016 - 19:00