Finance Committee, May 14, 2014

Minutes of the Finance Committee

First United Methodist Church, Santa Rosa

Wednesday, May 14, 2014—Carriage House

 

Present:  Pamala Stephens, Chair, Marge Noble, Mary Brunet, Steve Zwick, Heather Young (representing the Board of Trustees), Greg Roth, Jack Dupre and Larry Thompson.

 

Chair, Pamala Stephens, called the meeting to order at 7:04 p.m. with a prayer.

 

Approval of Minutes

Minutes of the Finance Committee meeting of April 9, 2014 were approved as written.  Moved by Pamala Stephens, seconded by Larry Thompson, motion passed unanimously.

 

Finance Reports

Larry Thompson reviewed the financial statements for April, 2014.  During the month the operating checking account balance went from $19,749.30 to -$2,365.68, a reduction of $22,114.98.  The main checking account was reduced by $23,166.83.  We continue to place $450.00 in the Operating Reserve Account.  However, we must to watch closely the cash flow of the operating funds and avoid using monies that are designated for other purposes.  The balance in prepaid accounts increased from $2,694 to $11,047, made up of payment of premiums for worker’s compensation insurance, health insurance; and fire, casualty and liability insurance.

 

Total assets decreased by $13,207., and liabilities increased by $1,399.  The operating fund balance reduced by $13,555 in April, which represents the excess expenses over income for the month.  There was not much change in the balances in the Other Ministries accounts during the month.

 

We experienced a significant income short-fall for the month in pledges of $38,810 vs. a budget of $48,124, ytd -$16,514; non-pledged contributions of $3,857 vs. budget of $8,351, ytd -$7,734.  Total income year-to-date is under budget by $17,606.  On the expense side, total personnel costs ytd is under budget by $3,508, while building maintenance exceeds budget ytd by $5,426; office expense exceeds ytd budget by $739; while various ministries, commissions and apportionments are under budget ytd by approximately $4,600.  Total expenses ytd are under budget by $1,933. Total expenses exceed income by $11,171 and under budget by $15,673.

 

Pamala will inform the Church Council of the year-to-date shortfall at their next meeting to be held on May 17, 2014.

 

Other Business

Pamala discussed the upcoming 2014 Fall Stewardship campaign that will meet the operational needs of the Church and mortgage payments, plus the tithe or apportionment on monies raised for the mortgage.  We will request a one-year financial commitment for calendar year 2015 for those two purposes.  However, the Trustees and Finance Committee stand ready to listen and be responsive to the congregation’s direction regarding the funding of any program, project or purpose which may arise in the coming months for future years.

 

It was again suggested that follow-up be done regarding the change in the apportionment and or tithe which now appears to be in place for monies raised in a capital or “mortgage payment” campaign. Some thought is being given to introduce legislation on this matter at the annual conference that takes place in June.

 

The Church will continue to account separately for the collection of the operational needs or “annual campaign” and for the mortgage payment.  We will not use the term “Building Fund” for the campaign, rather, we will use “Mortgage Payment”.  If we do receive funds beyond what is needed for the mortgage payment those monies at this point do not have a designated purpose.  The funds will be held until direction is sought and given on their use.

 

New Business

Pamala also reminded the committee about the upcoming meeting to be held on Friday evening, May 30 and Saturday morning May 31, at the Montgomery campus entitled “Join the Conversation, Discovering Our Common Vision”.  She encouraged everyone to participate in the conversation about the mission and purpose of the Church.

 

The meeting adjourned at 8:40 p.m. with a prayer by Mary Brunet.

 

Next meeting: 7:00 p.m. June 11, 2014 – Carriage House

 

Respectfully submitted by Larry Thompson

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Wed, 05/14/2014 - 19:14