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                                    HOLY ANGELS FINANCE COMMITTEE MINUTES
                                                June 18, 2009 

OPENING PRAYER
Fr. Jerry Brittain led the opening prayer. 

ATTENDANCE
Fr. Jerry Brittain, Don Felix, Jack Daniels, Paula Beine, David Beine , Harry German, Kathryn Fisher Davies, and Mike Nowack.  Absent were: Mark Jansen, Pete Rettler, Chuck O’Meara and Randy Lawson.  Our new Associate Pastor, Fr. Nathan Reesman was also in attendance. 

MINUTES OF THE PRIOR MONTH
Don Felix noted a correction in wording to the minutes of the May meeting.  The passage being addressed is the following: ANNUAL BUDGET CONSIDERATIONS:  Jack noted that the budgeted tuition for next year was changed from $612,000 to $609,000.  The above sentence should have read: Jack noted that the budgeted Parish Subsidy for next year was changed from $612,000 to $609,000. 

A motion was made by Mike Nowack and seconded by Paula Beine to accept the minutes from the prior month as corrected (above).  The motion was approved unanimously. 

REVIEW OF FINANCIAL STATEMENTS – May
Jack noted that month to date actual envelopes were $89,356 which was $8,280 under budget and year to date is at $1,005,929 compared to the budgeted amount of $1,107,400; we are now $101,471 behind for the year.  It was noted that the Parish Festival was a great success this year and that gross receipts were the second highest on record.  Tuition for May 2009 was at $63,978 and YTD at $488,620.  (Mike Sternig told Jack that all of the tuition that was budgeted would be collected and that the instructional fees would be about $9,000 short.)    Salaries are close to the budgeted amount.  The Pension payment was made to the Diocese; the forth quarter payment was budgeted in June.  Jack noted that utilities are all close to what was budgeted and the repair and maintenance account are over budget.  

Forecast of Year-End Results
Jack reviewed his forecast for the year. He expects envelopes to be about $100,000 short of the budgeted amount/ Tuition should be close to what has been budgeted.  Salaries and Fringe Benefits should be close to the budgeted amounts.  Utilities and Repair & Maintenance are over budget by about $10,000 but Insurance and Archdiocesan Assessment are under by a like amount.  Jack reminded the committee that 1% of total envelope collections go to our sister parish in the Dominican Republic.  (The committee asked Jack to remind Barb Vander Wielen to cut a check to our sister parish in the Dominican Republic but to subtract Lauren Ducharme’s travel expense associated with her travel to their parish.)  Capital expenditures include two items that would be set up as a prepaid amount within the current fiscal year; they are: Rectory entrance-way roof ($2,895) and the Church’s bell tower roof ($4,000).  The Rectory roof ($19,000) will not be done out of this years funds; it will be postponed until funds become available.    The Forecast, including these capital expenditures, would show a deficit of $70,859. 

Jack then explained that two motions were in order.  The first motion related to the capital expenditures and the second would relate to using some of the Rolfs’ Foundation Trust to cover our expected deficit.  The following motions were then made:

1. Motion by Kathryn Davies to recommend to the Parish Council that they authorize the expenditure of funds in the fiscal year for the Rectory entrance-way roof ($2,895) and the Church’s bell tower roof ($4,000) totaling $6,895.  The motion was seconded by Don Felix.  Motion was approved by all except Paula Beine who voted “no” (she offered no comments).
2. Motion by Don Felix to recommend to the Parish Council that they authorize a withdrawal from the Rolfs’ Foundation in an amount sufficient to cover the “deficit” and to maintain the Parish Cash amount at not less than $60,000.  (The amount of the withdrawal may not exceed $80,000.)  The motion was seconded by Mike Nowack.  Motion was approved unanimously.

PROPERTY AND GROUNDS UPDATE
If the Parish Council approves the expenditures noted in the above motion # 1 (above), Jim Schmidt will need to be told to go ahead with letting the contracts prior to the end of the fiscal year.   

Over the summer, several maintenance related projects will be initiated in order that they can be completed while the school is closed for the summer.   

In addition, Jim Schmidt has been in touch with WE Energies – they have completed an audit of usage and come up with a list of items that could reduce our energy consumption.  At the August meeting, Jack Daniels will be prepared to discuss a proposal to implement some of the WE recommendations.  (Certain funding grants have become available and the Parish needs to act on them promptly.)  

FAITH IN OUR FUTURE
Funds continue to be received by the Parish.  The Parish Council is directing the usage of these funds (current balance on hand is $66,950).  One of the specific uses could be in conjunction with the Schools efforts to take advantage of energy conservation measures offered by the government. 

AUDIT SUB-COMMITTEE ACTIVITIES
The sub-committee met June 11^th.  The primary objective is to address deficiencies outlined in the formal Archdiocese Financial Review conducted earlier this year.  The committee recommends that the parish undergo an exercise to map the processes and procedures pertaining to the Parish Accounting System which includes the school and all parish entities.  This first step will assist members in identifying process efficiencies, improvements and opportunities in usage of our parish assets.  The deficiencies noted in the Archdiocesan Financial Review that will be addressed / corrected in this project are as follows: 

1. Consolidating the QuickBooks Accounting System to produce ONE parish book of accounts.  This would implement the recommendations of
   1. Reducing the number of bank accounts in use
   2. Reviewing the number of checking accounts

                                         i.    Which accounts truly need to remain separate – SCRIP, MILK, Cemetery

                                         ii.    Which accounts can be moved to a general account

      c.    Producing one Balance Sheet and one Profit and Loss report 

2. Recording prepaid tuition and Accounts Payable amounts at the end of each Fiscal Year
   1. This will address the recommendation to report known unpaid obligations and record registration fees and prepaid tuition.
   2. Enter Invoices as they are received
   3. Use accrual based accounting practices to capture accounts payable amounts

The committee recommends the use of existing committee, council and or parish members to conduct the exercise.  We feel that this task could be accomplished this fiscal year.  

SCHOOL TRUST FUND
Money Manager at the M&I Trust Fund will need to be provided with a request to fund the School for those qualified parents seeking tuition assistance.  Any uncommitted earnings could be provided the Parish for its current year’s operations.

SCHOOL TASK FORCE
A meeting has been scheduled for June 30^th at St. Mary’s. 

NEW BUSINESS 

HUMAN RESOURCES BUSINESS
Performance reviews were discussed and the group decided we should still conduct performance reviews despite freezing this year’s salaries. 

ADJOURNMENT
A motion to adjourn was made by Don Felix and seconded by Mike Nowack.  The motion was approved unanimously. 

There will be NO meeting in July.  Next meeting is scheduled for August 20, 2009. 

Respectfully submitted,    

John (Jack) Daniels for Pete Rettler