Finance Committee, August 13, 2014

Minutes of the Finance Committee

First United Methodist Church, Santa Rosa

Wednesday, August 13, 2014--Carriage House

 

Present:  Pamala Stephens (Chair), Mary Brunet, Ryan Comiskey, Jack Dupre, Greg Roth, Larry Thompson              and Steve Zwick  

Absent:   Marjorie Noble and Larry Schmidt

 

Pamala Stephens called the meeting to order at 7:05 p.m. and began with a prayer.

 

Approval of Minutes

Minutes of the Finance Committee meeting of July 9, 2014 were approved as written:  Moved by Larry Thompson, seconded by Ryan Comiskey, motion passed unanimously

 

Finance Report

Larry Thompson reviewed the financial statements for July 2014.  During the month the main checking account balance decreased $10,334.09 to $24,006.02 and the operating fund balance rose to

-$3,159.45.  Year-to-date (YTD) pledges and gifts were $396,641.72, which is 90.69% of the YTD budgeted amount of $437,349.77.  Total YTD income was about 93.18% of the YTD budgeted amount.  YTD total expenses were 98.81% of the YTD budgeted amount.  Overall, total expenses have exceeded total income by $25,854.28 so far in 2014.  The 03 and 04 accounts total $65,582.24 and were fully funded. 

 

After Larry’s review of the financial statements, the committee members discussed their concerns regarding the YTD shortfall in pledges and gifts.  The consensus view of the committee now is that the forecasted cash inflows for 2014 were likely too optimistic.  Actual collections of pledges have fallen below pledged amounts to an unusual degree so far in 2014.  The consensus view of the committee is that the growing gap between forecasted total YTD income and actual total YTD income has likely put the Church on an unhealthy and unsustainable course. The committee members agreed that Pamala Stephens should invite key leaders of FUMC to a financial summit.  The purpose of this summit would be to address ways in which revenues might be increased, expenses might be decreased, or both.       

 

Other Business

Pamala Stephens and Larry Thompson presented a written analysis of the FUMC Mortgage, which they co-authored with Paul O’Rear.  Entitled, “Mortgage Loan-Financial Fact Sheet”, this report provides a brief history of the mortgage and describes a plan for paying off the mortgage.  The committee members agreed that this analysis was valuable and it helped to put the challenge of being debt-free into context. 

 

Pamala updated the committee on the summer meetings held as part of the “Join the Conversation, Discovering our Common Vision” effort.  She stated that detailed notes were taken during the meetings and that valuable data were being categorized and summarized.  A report on the summer meetings, drawing from these summaries, will be shared with the congregation.

 

Pamala updated the committee members on the Stewardship Campaign for this fall and she asked for volunteers for the Finance Table at the upcoming Ministry Fair on September 7.

 

 

 The meeting adjourned at 8:30 p.m. with a prayer by Pamala Stephens.

 

Next meeting: 7:00 p.m. September 10, 2014, Carriage House

 

Respectfully submitted by Greg Roth

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Wed, 08/13/2014 - 19:18