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                                            HOLY ANGELS FINANCE COMMITTEE MINUTES
                                                                November 20, 2008 

OPENING PRAYER
Fr. Jerry Brittain led the opening prayer. 

ATTENDANCE
Fr. Jerry Brittain, Fr. Rick Wendell, Harry German, Don Felix, Jack Daniels, Paula Beine, Mike Nowack, Kathryn Fisher Davies, Charles O’Meara, Mark Jansen, and     Not in attendance were: Pete Rettler & Randy Lawson.  

MINUTES OF THE PRIOR MONTH
A motion was made by Harry German and seconded by Kathryn Fisher Davies to accept the minutes from the prior month.  The motion was approved unanimously. 

REVIEW OF FINANCIAL STATEMENTS - October
Weekly Envelopes were slightly ahead of budget for the month but Y-T-D was off by $12.2K; even worse, the current Y-T-D through Nov. 9^th is off budget by $39.0K. (Fr. Jerry mentioned that it may be necessary to use some of the Rolf Foundation Trust monies this year in order to make ends meet.)   Tuition is $12.3K less than budget (Y-T-D) (nothing to be concerned about at this time).  A “transfer of $15.0K is shown as income; this will be corrected in November in order to take it out of income and show it as a transfer of funds between the savings and checking account. 

Expenses for Salaries & Benefits were slightly over budget; Y-T-D is over budget by $12.2K.  Utilities are all under budget and Maintenance is on budget. 

The Parish Checking account has built into it a “cushion” of approximately $60.0K from a budgetary standpoint; however, in actuality (over the course of the year), this balance can be higher and/or lower than this amount. The current Parish Checking account has a balance of $22.9K, which includes $15.0K transferred from the Parish Savings account. 

The savings account is totally uncommitted cash (a surplus).  During the month of October, it was necessary to transfer $15.0K from the savings to the checking account – this is an unusual event and is only understood in light of the weekly collections that are less than budget.  The Parking Lot Fund Debt ($51.4K); School Trust Fund $1,615.6K.  

The Restricted Funds account now contains four CD’s in the amount of $90,000 each.  

Kathryn Fisher Davies mentioned that their accounts have finally been debited for tuition payments.  

Jack asked if the Parish should continue to pay off the mortgage at the rate of $1,000 per month.  Jack reminded the committee that the interest paid the School Trust actually becomes the income that the Trust then uses to provide tuition assistance to parents in need of financial assistance.  The committee agreed that the Parish should continue to make the payments against the debt. 

PARISH AUDIT
Several Finance Committee members met at a separate meeting on November 13^th to review and discuss the “audit” question.  People in attendance were: Paula Beine, Jack Daniels, Mike Nowack and John Rozek (the Administrator from St. Francis Cabrini and a CPA). The following documents were reviewed:

- Diocesan Financial Review Guidelines (pg 7-1 thru pg 7-5)

- Motion proposed by Paula Beine, Chairperson, Holy Angels Parish Council (dated 9/18/08)

- Explanation of Audit per Kieckhafer, Dietzler, Hauser, LLP - CPA auditing firm of West Bend (pg 1 & 2)

- Recap of costs of various types of audits per Kieckhafer, Dietzler, Hauser, LLP - CPA auditing firm of West Bend (letter dated 10/15/08) 

The conclusion of the group was that since the Archdiocese is seemingly not in a position to conduct the “periodic audits”, Holy Angels ought to establish a committee to report to the Parish Council that will at least review procedures relating to the Parish’s finances. 

At the Finance meeting, Jack noted the above comments.  Paula Beine then made her formal motion (attached).  Jack clarified the fact that all the Finance Committee was being asked to do is to make a recommendation to the Parish Council on whether a Finance Review Committee be formed or not and that if there was one to be formed, it would report directly to the Parish Council.  He asked that before any discussion on the motion that it needed to be seconded.  The motion was seconded by Chuck O’Meara.  The following issues were then discussed:
- Independence of School accounts
- Good to get this process done now
- How many people on the committee? Answer was five (5)
- The review was not so much needed in verifying the numbers but rather, a review of the procedures

Other issues were discussed.  A vote was then taken on the motion.  The motion was approved unanimously. 

NEW BUSINESS:
Mike Sternig, School Principal, submitted a request that the 403B Plan, sponsored by the Parish on behalf of six employees, be terminated as of December 31, 2008.  The reason for this request is because the “Plan Providers” are being required as of January 1, 2009 to provide far more information and guidance relating to investment choices than we are equipped to handle.  It will be suggested to employees that they open a 401K account with the institution of their choosing; once the account is established, they may then request that the balance in their existing 403B plan be rolled over to the newly created 401K plan.  The employee should remain whole in this process and the taxes on the account will remain deferred.   

This matter was turned over to the Parish Council with a recommendation that the 403B Plan be terminated effective December 31, 2008. 

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

NEXT MEETING:     THERE WILL BE NO MEETING IN DECEMBER 

Respectfully submitted,      

Jack Daniels for Pete Rettler