Finance Committee, January 11, 2017

Minutes of the Finance Committee

First United Methodist Church, Santa Rosa

Wednesday, January 11, 2017 — Carriage House

 

Present:  Greg Roth (Chair), Charlie Amezcua, Tokasa Buinimasi, Chris Bowen, Mike Ferrel, Peg Ferrel (Lay Delegate to Annual Conference), Marty Thompson (new), Heather Young (Recording Secretary),and Mary Brunet (Business Administrator).

 

Absent: Jack Breglio (new) and Trustees Representative.

 

Greg Roth called the meeting to order at 7:10 pm, beginning with a prayer.  Introductions were completed for the new committee member, Marty Thompson.

 

Approval of Minutes: Minutes approved via email prior to the meeting and posted to FUMC website.

 

Finance Report

Greg reviewed the financial statements for last month and noted that income for 2016 was projected to be $932,500.00.  Actual income for 2016 was $34,082.00 lower, at $898,418, or 96.35% of the projected total.

 

Total expenses for 2016 were projected to be $950,493.12.  Actual expenses for 2016 were $897,144.49, lower than budgeted by $53,348.63.  Total expenses were thus only 94.39% of the budgeted amount.  This occurred, in large part, because the Finance Committee budgeted for a full time associate pastor for all of 2016, but the church did not have a full time associate pastor for several months during the year.  Certain other items were under budget also, resulting in these lower-than-expected total expenses.  At the end of 2016, total income exceeded total expenses by $1,273.51.

 

Greg reviewed the Building Fund and the 2023 balloon payment. Mary reviewed selected budget accounts the designated and committed accounts, pre-paid items, the reserve accounts, and other budget “idiosyncrasies.”

 

Fall Stewardship Campaign Report

Mary reported the following results: for the Operating Fund, 152 pledges received $516,230 ($95,070 lower than 2016 budgeted $611,300); for the mortgage fund, 80 pledges received for $87,126 ($21,074 off from 2016 budgeted $108,200). It was noted that we have mortgage-related costs of $9,000-10,000/month (when principal, interest, taxes, and apportionments are included).   Discussion ensued about the anticipated need for a Spring campaign to fill the budget gap. It was discussed and agreed that Trustees should be engaged about shifting the stewardship campaign and pledge card to be one “Annual Campaign,” removing the break-out of the Mortgage Fund from the Operating Fund.

 

Upcoming Budget Summit

Mary said the church office will announce when the budget summit will occur.

 

Financial Controls Report

  • Sufficient progress has been made with recruiting money counters: Peg Ferrel, Mike Ferrel, Sofia Williams, Bill O’Rear, Valerie Borg, Anne Sekara, Mary Ellen Hoising, and Greg Roth.
  • Bank statement reconciliation by volunteers - should be done by volunteers according to the Book of Discipline. However Greg reported that church software performs this and it’s not possible for someone other than staff familiar with the software to perform a competent reconciliation. Greg moved and Mike Ferrel seconded the motion that: The Committee adopts the policy that volunteers from the Finance Committee should REVIEW monthly bank balance reconciliations rather than PERFORM the bank balance reconciliations. Questions raised by volunteers should be presented to the bookkeeper. Volunteers should report back to the Finance Committee whenever the volunteer deems a report appropriate. The motion passed unanimously.   Peg and Greg volunteered to begin reviewing the monthly bank reconciliations. 

 

Other Business - None

 

The meeting adjourned at 9:00 pm with a prayer by Chris Bowen.

 

Next meeting: 7:00 pm, February 8, 2017 - Carriage House

 

Respectfully submitted by Heather Young, Recording Secretary.

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Wed, 01/11/2017 - 18:00