Finance Committee, May 11, 2016

Minutes of the Finance Committee

First United Methodist Church, Santa Rosa

Wednesday, May 11, 2016--Carriage House


Present:  Greg Roth (Chair), Charlie Amezcua, Chris Bowen, Jack Dupre, Mike Ferrel, Peg Ferrel (Lay Rep to Annual Conf), Nate Barker (Rep from Trustees), Heather Young, Bill Stephens (Lay Leader/Staff Parish), and Mary Brunet (Staff).  


Absent:  Tokasa Buinimasi, Ryan Comiskey, Larry Schmidt (Treasurer)


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

Nate Barker, the Trustees representative this month, introduced himself to the attendees and all introduced themselves around the table.


Approval of Minutes

Chris moved and Bill seconded to approve the April 2016 Finance Committee meeting minutes.  The motion passed unanimously. 


Finance Report

Greg reviewed the financial statements for April.  During the month, the main checking account balance fell by $9,707.61 to a new balance of about $69,862.67.  The operating fund balance decreased by $27,878.66 to a new balance of $55,901.84. 


Year-to-date (YTD) pledges and gifts were $283,172.14, which is 101.09% of the YTD budgeted amount.  Total YTD income was $335,015.72, which is 102% of the YTD budgeted amount.  YTD total expenses were $304,472.47 which is 97.05% of the YTD budgeted amount.  Overall, YTD total income has exceeded YTD total expenses by $30,543.25.


Business Administrator’s Report

Mary discussed a review that she and Larry Thompson have been doing of account 1603, Prepaid Insurance - Workers Comp.  This has not been done in some time.  It appears that this is not really a prepaid asset.  More review of this account is planned.  Greg offered to be involved in working through the numbers.


Mary also reviewed the opportunity for streamlining some of the account flow for the funds formerly in the building -07 fund we dissolved in January. She expressed that doing so has started to make the accounts flows clearer - and more opportunity exists.


Mortgage Fund overview - Mary reviewed the Bank of the West balance of $131,956.20 and subtracted our understanding of the Reserve policy (6 months of mortgage at $9,000 = $54,000; taxes = $5,000; Building campaign budget $8,000; = $67,000). Plus one month’s mortgage is needed for the current month - $9,000. This brings the excess of funds over our reserve policy currently at $55,956.20


Mary said the compilation requirements have been satisfied for our mortgage with Bank of the West.





Camp Michela Update

Mike Ferrel gave an update that the proposal is under review and the report to this weekend’s Church Council will be to request additional time for study of the issue. Peg requested prayers for our church’s and community’s involvement in solutions for our local homelessness issues.

Cash Basis Accounting

The church’s financial statements are currently produced on a modified cash basis, which is a hybrid method of:  (1) the accrual basis and (2) the pure cash basis. Greg provided an overview of the accounting definitions and the differences between the pure cash basis method and the accrual basis method. After discussion, the Finance Committee generally agreed that a movement from the modified cash basis to a pure cash basis might be preferable.  The Committee requested Mary gather input from Janin Comiskey, Larry Thompson, and any other church stakeholders with insight into this potential change.  If Mary reports back to the Committee generally favorable comments on pure cash basis accounting, the Committee expects to vote on a change in accounting method and an appropriate time for such a change to occur. 


Other Business

Chris Bowen volunteered to lead the June meeting, in Greg’s absence.


The meeting adjourned at 8:50 p.m. with a prayer by Mary.


Next meeting: 7:00 p.m. June 8, 2016 - Carriage House


Respectfully submitted by Heather Young.

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Wed, 05/11/2016 - 19:00