Finance Committee, September 14, 2016

Minutes of the Finance Committee

First United Methodist Church, Santa Rosa

Wednesday, Sept 14 ,2016—Carriage House

 

Present:  Greg Roth (Chair), Charlie Amezcua, Tokasa Buinimasi, Jack Dupre, Bill Stephens (Lay Leader/Staff Parish), Heather Young (Recording Secretary), and Mary Brunet (Business Administrator).

Absent: Chris Bowen, Ryan Comiskey, Mike Ferrel, Peg Ferrel (Lay Delegate to Annual Conference), and a representative from Trustees.

 

Greg Roth called the meeting to order at 7:05 p.m., beginning with a prayer.

 

Approval of Minutes

August meeting minutes were approved via email before the September meeting, and posted to the FUMC website.

 

Finance Report

Greg reviewed the August financial statements.  Year-to-date (YTD) Pledges and Gifts were 98.73% of the budgeted amount.  YTD Total Income was 99.21% of the budgeted amount.  Although YTD Total Income is very close to the forecasted amount, Total Income for August was only 82.80% of the forecasted amount. 

 

YTD Total Expenses were 94.41% of the budgeted amount.  There were several reasons for expenses falling below the forecasted amount, but two of the main reasons were: (1) FUMC has not had a full-time associate pastor for many months, even though we originally budgeted for one; and (2) legal and audit expenses were below forecast.  YTD Net income (Total Income minus Total Expenses) was $12,373.83, which was better than the YTD forecasted amount by $30,495.88. 

 

The main checking account balance was $69,718.88 and the operating fund balance was $46,137.65.

 

Fall Stewardship Campaign Update

Heather presented minutes from the Aug 25th kickoff meeting and requested Mary to look for a graphic which represents the theme of “All of Us Together”. Discussion of the materials needed for the campaign centered on the need for a Narrative Budget. Greg and Mary will take the lead on an initial allocation of personnel costs. Heather will look at allocating other costs, such as commissions and mortgage.

 

Homeless Ministries as  Line Item in the Budget

Bill proposed shifting the cost of Tuesday evening services to Homeless Ministries, possibly as a component of Outreach & Service. The Committee agreed this should be explored further.

 

Results/Recommendations from External Review of Financial Statements and Internal Controls

Greg and Mary reported that the auditor from Goranson & Associates observed that overall our financial statements are being prepared in a sound manner and the internal controls are effective. Three recommendations came out of the Review:

1.Finance Committee Chair or Business Administrator should prepare deposit and initial copy to show proof of reviewing deposit.  Also, someone besides the Bookkeeper should open or download the original bank statements, review the cleared checks, and sign off on the statement before Bookkeeper reconciles account. 

2.The Business Administrator will review quarterly financials and bank statements for each fiscally sponsored program and present them to Finance Committee for review. Also, Business Administrator will track bank account signers for each account that the Church is responsible for. (We will augment current reports with financials for Fijian Language Ministry, the Preschool, and Angels Attic.)

3.The Finance Committee recommends that the Trustees prepare a video of FUMC fixed assets annually, for insurance purposes.

Bill Stephens moved to adopt these recommendations, Jack Dupre seconded, and the motion passed unanimously.

 

New Treasurer (to replace Larry Schmidt)

Heather moved and Bill seconded that Greg, Mary and Jack will serve as a subcommittee to investigate, assess and possibly realign the financial responsibilities of the church. The motion passed unanimously.

 

Authorization to Sign Church Checks

It is moved by Greg and seconded by Bill to resolve that current check signers Larry Schmidt, Janin Comiskey and Jim King be removed as check signers; Greg Roth, Pamala Stephens and Janet Tonkin will be added as check signers. The motion passed unanimously.

 

Authorization to Approve Church Expenditures

Motion: The staff liaisons or chairpersons for each church commission are the only persons authorized to approve church expenditures for their ministry areas.  Jack moved, Tokasa seconded, and the motion passed unanimously.

 

Finance Committee Annual Report to Church Council

Reviewed and revised. To be further discussed.

 

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

 

Next meeting: 7:00 p.m. October 12, 2016 - Carriage House

Respectfully submitted by Heather Young, Recording Secretary.

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Wed, 09/14/2016 - 19:00