Holy Angels Catholic Church
 Finance Committee Minutes

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                    HOLY ANGELS FINANCE COMMITTEE MINUTES

                                 March 18, 2010

OPENING PRAYER
Fr. Jerry Brittain led the opening prayer.

ATTENDANCE
Fr. Jerry Brittain, Fr. Nathan Reesman, Don Felix, David Beine, Jack Daniels, Paula Beine, Harry German, Kathryn Fisher Davies, Chuck O’Meara, and Mike Nowack. Absent were: Pete Rettler and Randy Lawson. There were ten non-committee members in attendance.

MINUTES OF THE PRIOR MONTH
A motion to approve the minutes was made by Don Felix and seconded by Mike Nowack. The motion was approved unanimously.

REVIEW OF FINANCIAL RESULTS – FEBRUARY
The financial statements for February were reviewed. The most significant item discussed was the Weekly Collections. They are $44K less than budgeted and projected to be $50K less than budgeted for the entire year. Kathryn Davies mentioned that a spokesperson for each of the cash accounts (to be transferred to the Parish by June 30th) needed to explain the account activity at a future meeting.

BUDGET QUESTIONS FROM FR. JERRY
Fr. Brittain had compiled a sheet of questions which was distributed to the Finance Committee members prior to the meeting. Following are the items and the discussion:

- The Trust Fund: Chuck O’Meara indicated that a sustainable level of support from the School Trust Fund is about 4%. M&I’s analysis of market performance and actual Trust Fund performance over a rolling twenty quarter average showed a return of both income and market appreciation to be 3.8%. Trust Fund support of 4% equals $59,000. After much discussion, a motion was made by Kathryn Davies and seconded by Harry German to: "recommend to the Parish Council and the Trustees of the School Trust Fund to provide a total of $65K in the 2009-2010 fiscal year and $75K in the 2010-2011 fiscal year to cover all approved tuition assistance needs and to direct any residual to the Parish." The motion was approved unanimously.

- Capital Expenditures were left at $25K.

- The Refund of $12K from the energy program will be deposited into the Faith in Our Future account.

- The School agreed to cut a 2nd grade teacher without adding an aid. Teacher salaries were frozen. Tuition increased $123 (6.6%) for the first student.

- Envelope Income projection for the current fiscal year is $50K less than budgeted. The next year’s Budget will be 2.5% greater than this forecasted figure.

- Teacher Salaries: There was no need to consider any further reductions for the budget was in balance.

BUDGET DISCUSSION – AUDIT REQUIREMENT
After a lengthy discussion regarding the fact that only $3K was included in the Budget for an Audit, a motion was made by Chuck O’Meara and seconded by Paula Beine to have a GAAP audit performed on behalf of the Parish for the year ending June 30, 2010 during the next fiscal year. Ensuing discussion included the fact that funds to perform this type of audit were not included in the budget but that the money to pay for the audit would be provided, possibly by reallocating funds from other budgeted items. The motion was approved unanimously.

PROPERTY AND GROUNDS UPDATE
The Property & Grounds committee completed a Capital Budget plan which included the prioritization of projects. This plan was included in the budget presentation.

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

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PRESENTATION TO PARISH COUNCIL – ANNUAL BUDGET: THE PROCESS

Following the normal Finance Committee meeting, Jack made a presentation of the Budget for the fiscal year 2010-2011 to the Parish Council.

The Forecast of the Current Year’s Operating Results:
 Forecast of the current year’s operations suggest that the Parish will incur a loss of approximately $97K. This is based on a shortfall of $50K in regular envelope giving and $90K shortfall of tuition and related school revenues (resulting from a significant decline in student enrollment from budgeted of 375 to actual of 339 students). The School’s response to the decline in enrollment resulted in eliminating some costs, the net of which result in the overall forecasted loss of $97K. The forecast contains $25K for Capital Expenditures; it is quite likely that this amount will not be expended, thus reducing the loss for the year to $72K.

Presentation of 2010-2011 Budget
A brief summary follows: All salaries and wages are frozen for a second year; there is one less teacher (2nd grade); Tuition is increased to $1,988 for the first student (increase of $123 (6.6%) per year); Collections are projected with a 2.5% increase; and the School Subsidy is set at $600K (45.4% of Parish revenues).

NEXT MEETING
The next meeting will be April 15, 2010.

Respectfully submitted,

John (Jack) Daniels

For Pete Rettler, Secretary, Finance Committee