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                                                HOLY ANGELS FINANCE COMMITTEE MINUTES
                                                                      October 15, 2009 

OPENING PRAYER
Fr. Jerry Brittain led the opening prayer. 

ATTENDANCE
Fr. Jerry Brittain, Don Felix, Paula Beine, David Beine , Harry German, Pete Rettler,  Kathryn Fisher Davies, Chuck O’Meara and Mike Nowack.  Absent were: Tim Brisco and Jack Daniels.  Non-committee members in attendance were: Carl Mattson, Rob Mass, Mark Jansen and Mike Melaney.

MINUTES OF THE PRIOR MONTH
There was a correction to the September minutes.  The correction was that Kathryn Fisher Davies nominated Jack Daniels for the position of Finance Committee Chairperson rather than Don Felix.  A motion to approve the corrected minutes was made by Don Felix and seconded by David Beine.  The motion was approved unanimously 

REVIEW OF FINANCIAL RESULTS - SEPTEMBER
This was the first time the committee viewed the school numbers in the new format.  Paula felt the account codes were set consistent with the archdiocese chart of accounts.  Chuck would like to see year-to-date numbers; he felt this would allow the committee to be able to track accounts more accurately.  Paula pointed out that there were no longer any balances on the scrip and athletic accounts.  Mike Nowack noted that the school trust fund is not listed as a cash balance.  There is a question why the $35,000 in accounts payable appears with brackets on the balance sheet.  Chuck pointed out that he felt uncomfortable that the cost of the parking lot appears as a debt on our balance sheet.  He asked that it be considered as a transfer between accounts.  Kathryn pointed out that weekly envelopes are $5,564 off budget year to date.  Kathryn also stated that we have now received full payment from the festival.  Fr. Jerry shared that it was a very successful festival.  Kathryn noted that utilities are all under budget and that Health and Dental Insurance will continue to be under spent because of good negotiations by the archdiocese. 

PROPERTY AND GROUNDS UPDATE
Fr. Jerry updated the committee.  The lighting project is 80% complete.  Property and grounds is not considering any large projects.  There are some minor boiler issues and a crack in a wall near the office at school.  Fr. Jerry noted that some funds from “Faith in our Future” could be used for property and grounds projects.

TIME, TALENT, TREASURY AND FAITH IN OUR FUTURE
Fr. Jerry noted that the weekend of November 8^th parishioners will be asked to complete a census card which will include information regarding talents and occupations.  The Legion of Mary will be asked to make phone calls to help complete the census project.

AUDIT SUB-COMMITTEE ACTIVITIES
Paula reviewed the work of the sub-committee.  Item #14 from the report was tabled until the next meeting.  Don moved that the finance committee accept and support the sub-committee work, David seconded.  The motion was approved unanimously. The full report appears below; 

10-15-09

Recommendations from the Compliance Committee to the Finance/Administrative Services Committee: 

1.      Consolidate and eliminate checking accounts so that the following remain:

·         Parish Account

·         Faith in Our Future Account

·         Mass Stipends Account

·         Bingo Account

 2.      The Finance/Administrative Services Committee should conduct a survey of the local financial institutions this month to determine that the parish is aware of and is recording and reporting all of the accounts that are established in the name of the parish.

 3.      All remaining parish bank accounts, whether checking, savings, certificate of deposit, trust, etc. must have the bank statements mailed directly to the parish office.

4.      Realign the bookkeeping functions as suggested in the attached document in order to improve our internal controls and segregation of duties so that we are safeguarding our assets and recording and reporting our transactions, assets, and liabilities as accurately as possible.

 5.      Formally designate persons who are authorized to order supplies and place orders on the parish’s behalf, including contracts for maintenance, repairs, and construction.

6.      Require a review of contracts by an attorney before contracts are signed. 

7.      Invoices, reimbursement requests, and hourly employee timesheets must be approved by signature or initials before payment.  We suggest the following individuals are responsible for the following areas: 

·         Jim Schmidt (custodian) – all maintenance-related

·         Mike Sternig (principal) – all school-related except maintenance

·         Deacon Mark Jansen (youth ministry) – those programs given to him by Father Jerry

·         Joseph Heit (DRE) – religious education other than school

·         Father Jerry (pastor) – all other

Any reimbursement requests by the above individuals other than the pastor shall be approved by the pastor.  Reimbursement requests by the pastor shall be approved by a trustee. 

By approving the invoice or reimbursement request, the responsible person is indicating: 

·         Receipt of goods/services (quantity verified, reimbursement request supported by receipt)

·         Appropriate cost charged

·         Mathematical accuracy of invoice

·         No sales tax is charged

·         General ledger code is correc 

We recommend the use of a stamp to make clear that the invoice has been checked and approved: 

Tax check: _________

GL code: __________________

Authorization:_______________________  Date: __________

Posted: _____________ 

8.      Invoices should be marked “paid” with the date and check number when paid.  We recommend the use of a stamp: 

PAID

Date: _____________

Check #: _____________ 

9.      The payroll must be reviewed and approved by the pastor before issuance of checks.  Payroll transmission forms require signatures of two (2) authorized signers. 

10.  Whereas the Archdiocese recommends that the trustee-treasurer be the primary check signer, we recommend that the two trustees agree on a schedule such that each is signing checks on a regular basis. We recommend this because of the added value in that both trustees will gain a sense for the normal course of business of the parish and will be in a better position to review bank statements, bank reconciliations, and financial reports.  We suggest an every-other month schedule with a change each year so that after two years each trustee will have reviewed each month once. 

11.  A trustee, preferably, due to their familiarity with the disbursements, or a finance committee member should open and review all bank statements prior to the preparation of the bank reconciliation. 

12.  A trustee, preferably, due to their familiarity with the disbursements, or a finance committee member should review all bank reconciliations. 

13.  If there is no segregation of duties of preparing checks and mailing signed checks, then the trustees shall review the cancelled checks. They shall also check the vendor files and unpaid invoices periodically on unannounced visits. 

14.  Collections made by ushers during Mass or other services should be taken immediately to a secure location by two unrelated individuals.  If left at the altar until after Mass or service, two unrelated individuals should be assigned to remove the collections immediately following Mass or service and take it to the secure location. 

15.  Count teams need to be reviewed to make sure that they are composed of unrelated individuals. 

16.  Prior to fundraising events, controls should be reviewed with those individuals who will be responsible for handling cash.  As planning for these events is taking place, a review should be scheduled with the chairperson of the Compliance Committee.  (Festival, Fish Fry, Pancake breakfasts, etc.)  Two unrelated individuals should control and frequently collect cash receipts.  All cash should be taken to a secure location for counting.  Signed count sheets or logs should be maintained. Cash collected at events/fundraisers may not be used to pay expenses. 

17.  Suggestions: 

·         Investigate the use of a Procurement Card (P-card, credit card) for use by the individuals listed previously under number seven (7) above and possibly other individuals to facilitate procurement and in a timely manner when a check may not be available.  P-card authorization and limits shall be approved by the Finance/Administrative Services Committee. 

·         Investigate possibility of cost savings by ordering supplies in bulk with other schools, parishes

·         Consider utilizing the accounts payable program in QuickBooks in order to more easily accomplish the Archdiocesan directive to report accounts payable at fiscal year-end and to facilitate batch processing of payments.

·         Consider batch processing of payments to save time. 

18.  Future consideration: 

·         Fixed asset inventory

·         Statement of cash flows

·         Reviews of processes/procedures for the different events/fundraisers

·         After the initial review, implementation of a schedule of periodic review of policies, procedures, and compliance in all areas.

·         Documentation of procedures in all areas to facilitate substitution or transition due to illness or cessation of employment. 

19.  (Unrelated means that they do not belong to the same family either by birth or marriage including but not limited to husband, wife, grandparent, grandchild, parent, child, aunt, uncle, niece, nephew, brother, sister, first cousin and all of those aforementioned relationships that are made by marriage, called “in-law” relationships.  Unrelated also means that they do not live in the same household, that one in not employed by the other, and that one is not the landlord or debtor of the other.  Questions shall be resolved by the Finance/Administrative Services Committee.) 

SCHOOL TRUST FUND
Not discussed. 

SCHOOL TASK FORCE
Not discussed. 

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

Respectfully submitted,    

Pete Rettler