COMMITTEE MEETING MINUTES
MT
OCTOBER 10, 2011
Present: Bob Brundage, Karen Gramacki, Jessica Rebbe, and Susan Prosser
Absent: Herb Holler and Jessica Guzman
FINANCIAL REPORTS Treasurer Jessica Rebbe presented the financial reports for year-to-date through September. Total income continues to report at less than 90% of the budgeted amount – a trend that has concerned the committee for some time. The September only pledged giving did show strong return to nearly full pledged amounts although other giving categories did not make a similar recovery. Unfortunately, even 100% giving for September through the end of the year will not make up for the existing deficit. It will take income in excess of 100% of monthly allocated budget each of the remaining months to recover from the deficit that has been created during months of reduced giving in all categories.
Expenses were reviewed and accounts with over expenditures were discussed. The treasurer will be preparing transfers of designated funds in the near future which will offset some of the apparent over expenditures and reduce the total net deficit. Other accounts with opportunity for savings were also highlighted.
The Treasurer continued the ongoing discussion of planned change to the chart of accounts. The full chart of accounts is not yet completed but will be distributed to the Budget and Finance Committee for review and approval when complete. This will take place electronically if the chart is completed in advance of the next scheduled meeting. Once the chart of accounts has approval, conversion of current accounting records will take place. The change will be reported to the Church Council at their next scheduled meeting.
CURRENT BUDGET AND FINANCIAL STATUS Cash flow issues and recommended bank balance
was discussed. The treasurer reported a desire
to maintain a permanent balance of between $15,000 and $20,000 in the bank
account at all times as an ideal.
Obviously during times of lower income this has been more difficult and
the Schwab account has been tapped twice during the summer months for $25,000
and $14,000. The options for balancing
the budget at the end of the year if income is not fully realized were also
discussed and three options were identified: 1) curtail expenses; 2) transfer
designated funds and thus reduce liabilities; and/ or 3) reduce the opening
balance equity. The Committee decided to recommend to the Church Council that only
essential expenditures be made for the remainder of the calendar year
(salaries, benefits, contracted obligations, utilities, et.) and that any other
expenditure from either budgeted or designated funds needs prior approval.
Request for approval is to be submitted to the Church Office for review by the
Church Treasurer who will have up to 72 hours to respond. This curtailment is to be in effect for all
church staff and volunteers.
If approved by the Council, this curtailment policy should be printed in every newsletter and bulletin until the end of the year or the Council has reversed the policy.
INVESTMENT MANAGEMENT Bob Brundage and Susan Prosser conducted interviews associated with the investment management options under consideration by the committee and provided a very basic summary of the information gathered.
SUMMARY OF INVESTMENT OPTIONS AND
INTERVIEW RESULTS
CURRENT – SCHWAB
Places invest responsibility
with one person without requiring expertise. Even with committee consultation
no expertise guaranteed.
Merits of outside party
involvement/management – removes any possible temptations thus protections.
Internal controls.
Current investments have
relatively high exposure – return not worth the exposure.
Question: can we safely
achieve a greater return or more certain protection of principal?
MANAGEMENT OPTIONS EXAMINED
Private money
managers/investment advisors
Lutheran Fraternal Organization
- Thrivent
Fund under ELCA umbrella –
ELCA Mission Fund
TYPES OF INVESTMENTS
ON DEMAND AND TERM
INVESTMENT – ELCA MISSION FUND
Known rates of return and no
fees (1% to 3% depending on selection)
100% available with On Demand
Could use a combination of On
Demand and Term to gain higher earnings
Principal at low risk but
earnings are also low
Invested funds are either
loaned to Lutheran congregations or invested through a Chicago based investment
manager in treasury notes and quality bonds. No individual stocks.
No local office
Congregation makes no
investment choices
MANAGED INVESTMENTS
Thrivent – Camarillo
Management fee 1.25% with no sales charges
Recommend a managed SELECT fund account
If funds
needed within the next two years, a Limited Maturity Bond Fund with 2.5%
earnings, access anytime and no sales charge and .64% fund expense
Waved
taxes must be distributed to nonprofit organizations; Mt Cross and local
Habitat for Humanity have been beneficiaries.
Have
2 congregations as clients.
Do
have relationship with a social responsibility fund – expenses are higher.
Kevin Farrell – Westlake Village
Management fee 1.0%
Investments yet to be determined – we would be
involved in setting guidelines.
Would personally manage and would be accessible
Great flexibility in investments and opportunity to
make changes
Requires direct involvement by the Church as “client”
Gary Berner – Westlake Village
Management fee 1.5%; Merrill Lynch office
Access to Merrill Lynch resources
Investments to be determined – we set guidelines
Flexibility and opportunity to make changes
Requires involvement and oversight as “client”
The committee determined that a recommendation on a change
to the Schwab account is premature given the status of our budget and cash flow
situation and decided to wait until more is known about future circumstances
through the budget process and the next few months of the current year. In the meantime, it was agreed that the
Treasurer will move all funds at Schwab to a cash account rather than leave
money in investments that are considered too risky. This approach will give full protection to
the principal until an ultimate recommendation is made.
Budget Process The committee discussed the changes to the upcoming budget process. The most significant change will be the inclusion of accounts for groups and activities that have not previously been included in the budget but have simply draw funds from titled designated funds. Everyone who has responsibility for a function associated previously with monies strictly in designated funds will now participate in the budget process.
A schedule was presented and discussed and determined to meet the needs as can currently be envisioned.
BUDGET
SCHEDULE - INSTRUCTIONS
DISTRIBUTED OCT.17
REQUESTS DUE NOV.18
B&F COMM REVIEW NOV. 21*
B&F SECOND REVIEW (IF NEEDED) DEC. 5*
B&F MEETING DEC. 12
PRELIM BUDGET TO COUNCIL DEC. 13
B&F COMM MEETING JAN. 9
REC BUDGET TO COUNCIL JAN. 10
ANNUAL MEETING JAN 29
Budget guidelines will be presented with budget
instructions. Guidelines will ask that
all budgets present an “essentials” budget (bare bones) as the basic budget in
appreciation that next year’s budget may very well be either a no-growth or a
reduction budget. Some general sense of this year’s pending deficit will be
provided in the instructions. If
activities and functions have income sources associated with their request they
will be asked to identify and quantify those as well (participation fees, good
will offerings, Thrivent grants, etc.).
Requests for funds beyond essentials will be presented separately as a
building block if additional funds were to be allocated. It is hoped that the requests can be
submitted in a fairly standardized format this year for ease in review and of
course additional supporting material will be encouraged.
Treasurer’s Position The treasurer left the meeting so that the committee could discuss the recent receipt of her letter of resignation to take effect December 31, 2011. All committee members expressed disappointment at loss of such an extremely valuable asset to the “financial team”. The Executive Committee had previously discussed a possible short term approach to the impact of a change in the treasurer’s position before the budget and year end closing were completed. Susan Prosser shared with the group that the current treasurer had offered to continue service under a paid contract arrangement and that the Executive Committee would like to propose that initially we inquire as to her interest in two months paid service. The committee discussed concerns about having to add new expenses as we attempt to construct a bare bones budget but fully agreed with the value of maintaining the involvement of our current treasurer. The recommendation will be made to the Church Council that the Church enters into a two month agreement for paid service with Jessica Rebbe for the months of January and February 2012. The committee did not have any recommendation at this time as to what should be done regarding the remaining ten months of 2012. It was felt that if the Council approves the recommended contract the extra time will provide opportunity to explore options.
Next regular meeting November 7, 2011.
COMMITTEE MEETING MINUTES
MT
SEPTEMBER 12, 2011
Present: Herb Holler, Bob Brundage, Karen Gramacki, Jessica Rebbe, and Susan Prosser
Absent: Jessica Guzman
CDC BUDGET PRESENTATION Cathy Channels, CDC Director, and Tanya Carter, CDC Treasurer, presented several options for the 2011-2012 Budget.
SUMMARY OF CDC PROPPOSED BUDGETS 2011/2012
AS PRESENTED TO BUDGET & FINANCE COMMITTEE 9/12/11
Sept. 2011 – 119 enrolled
students and 14 staff Director and 3
other staff are
Mt
Cross members and approximately 30% of the students are from Mt Cross Families.
Developmental Kindergarten – 6 students (Local
schools now offering a program).
No change to teachers’ rate of pay – 1 teacher with
voluntary rate reduction.
Tuition has been increased by varying amounts.
School normally maintains an average of 130 students
and has capacity for 141.
OPTION 1 – “NO CUTS”BUDGET
- OUT OF BALANCE
Expense total $353,808 Income total $322,395 Shortfall
$31,413
Cuts flexible team teacher holiday pay which eliminates
26 person days of pay.
All other paid staff holidays remain
the same.
Teachers continue to be paid for 1.25 hours prep time
per session.
(Session = class period of 2 hrs.)
OPTION 2 – “REDUCTION
BUDGET” - CAN BE BALANCED
Expense total $332,064 Income total $322,395 Shortfall
$9,669
Eliminates 5 previously paid holidays.
Reduces teacher prep pay to 1 hr. per session.
Reduces Directors pay by $2,400 (from $50,371 to
$47,971).
Can be balanced with 1 more student and $7,169 from
Reserves .
Leaves Reserve at $7,831
Committee discussion with CDC representatives concluded with recommendation that the CDC adopt a balanced budget that can be forwarded to the Church Council since the April deadline has been missed. Once a balanced budget is adopted, the Council can assess the impact of any necessary reductions and the capacity within the Church budget or funds to provide and financial assistance or relief. It was also noted that the required CDC monthly financial reports had not been received by the Council and that the B&F Committee needed to maintain a better awareness of the school’s financial circumstances.
FINANCIAL REPORTS Treasurer Jessica Rebbe presented the end-of-month report for August and the Committee discussed the continued trend of under realized income. Of particular concern is the lower than customary percentage of Pledged and Envelope Non-Pledged Giving. Year-to-date giving through August is at 87% of what was anticipated in the budget. Historically, Mt Cross has maintained a giving percentage in the 90% range. The Pledged Giving Reports that were distributed to pledging households did not result in any increase in giving. The reconciled net budget deficit of $31,501 year-to-date has contributed to the need to withdraw $25,000 from the Schwab investment account to keep up with cash flow requirements. This situation requires careful monitoring for possible current year adjustments in spending and indications for the 2012 budget.
The Treasurer introduced the topic of changing the Chart of Accounts in order to allow full accounting and thus transparency of all expenditures by the Church in a year. The proposed changes will merge expenditures made from the regular budget and those previously made directly from designated funds into one record keeping system with the appropriate transfer of funds when appropriate. The committee discussed the end goal of this process as a good one so that the full cost of operations and activities will be reflected in one set of recordkeeping. It was understood that this change will not be without some challenges since for many staff and volunteers this will significantly change the way they have operated with regard to accessing money through the church.
Due to the very late hour, discussion of investment management, financial policy statements and the 2012 budget and stewardship campaign were postponed.
Next regular meeting October 10, 2011.
COMMITTEE MEETING MINUTES
MT
AUGUST 8, 2011
Present: Herb Holler, Bob Brundage, Karen Gramacki, Jessica Rebbe, and Susan Prosser
Absent: Jessica Guzman
FINANCIAL REPORTS Treasurer Jessica Rebbe presented the end-of-month report for July and the Committee discussed the continued trend of under realized income. Of particular concern is the lower than customary percentage of Pledged Giving. It was reported that Pledged Giving Reports had been distributed to pledging households. There is some hope that these reports may result in some “catch up” giving. The Committee spent some time reviewing Designated Funds in particular in anticipation of the proposed policy on the evening’s agenda. It was reported that three current projects are receiving memorial funds after contacts with family members – those being the wooden chalices, prayer garden, and piano overhaul. The more generic, permanent categories for designating memorial funds at the time they are established have yet to be established.
REPORT OF THE AUDIT COMMITTEE The committee received a summary report from the Church Council appointed Audit Committee. The 2012 audit had been done exclusively of the CDC since Jessica Rebbe had done the general church audit at the time of assuming the Treasurer’s position in January. The audit reported no significant irregularities and the committee determined that the report should be forwarded to the Church Council.
PROPOSED FINANCIAL POLICIES AND PROCEDURES It was reported that the committee’s recommended policy on Contract Authorization had required revision based on Church Council input. The revised policy statement was reviewed and recommended for Council adoption. Action on the committee’s recommended policy on Budget Controls has been postponed until the August 9, 2011 meeting. The committee considered the proposed policy statement on the Use of Designated Funds and recommended it for Council adoption.
DISSEMINATION OF FINANCIAL INFORMATION TO CHURCH
COMMITTEES
It was agreed by the committee that newly developed and adopted financial policies will be distributed with the budget request materials this year. That way all committees and staff will receive them at the same time.
INVESTMENT MANAGEMENT It was agreed that Bob Brundage and Karen Gramacki would take the lead in completing these interviews. Bob Brundage suggested the possibility of adding a Thrivent agent to the “mix” and he will schedule the additional interview if he determines there is benefit to do so.
COMMITTEE MEETING MINUTES
MT
JULY 11, 2011
Present: Herb Holler, Bob Brundage, Jessica Rebbe, and Susan Prosser
Absent: Jessica Guzman and Karen Gramacki
FINANCIAL REPORTS Treasurer Jessica Rebbe presented the end-of-month report for
June 2011 and midyear figures for the current year budget. The Committee discussed some individual expenditure accounts and suggested corrections but the focus of discussion was primarily on giving trends. The fact that the net deficit has increased by roughly $10,000 since May is largely due to lower than expected income. Income received versus budgeted for midyear is at 92% which compares to 97% at the same point in 2010. Of particular concern are the categories of Pledged and Envelope non-pledged giving which are at 90% and 91% respectively at midyear. It has been reported that quarterly giving statements are no longer sent to members and the Committee will request that the Church Council direct that these reports be reinstated with a midyear statement to be sent as soon as possible. Designated Funds were reviewed in conjunction with the Balance Sheet provided by the Treasurer. As a result, the Committee will put forth a recommendation to the Church Council on Memorial Funds that would have all memorials of $100 or less be placed in the General Memorial Fund and that all others be designated to one of several choices to be established by the Church Council. Existing memorials will require that contacts be made and future memorials will be established in this manner if the recommendation is adopted. Jessica Rebbe will develop a policy/procedure to present to Council.
PROPERTY COMMITTEE REQUEST FOR ADDITIONAL $5,000 This item was referred to the Committee by the Executive Committee for recommendation. Susan Prosser will report to the Council that based on the midyear budget reports, the Budget and Finance Committee cannot support this request. It was noted that budgeted funds remain available for the Property Committee.
PROPOSED FINANCIAL POLICY STATEMENTS The Committee has discussed for some time the need for written financial policies and procedures so that all members of the Church leadership and congregation will have access to information as to how “money matters” are to be handled. These statements of policy and/or procedure can be separated into those that are prepared by the Treasurer to document record keeping and accounting requirements and those that reflect a policy of the congregational leadership through the Church Council. Examples of Treasurer’s Statements currently under development include: Event Accounting and Money Handling; Checking Account Balance; and Check Signing Procedures. The Committee reviewed three policy statements for possible recommendation to the Council for adoption. Policies on Contract Authorization and Budget Controls were approved for submittal to the Council. The policy on Use of Designated Funds was deferred for further consideration. Susan Prosser will present the two policies the Committee recommends to the Church Council.
REVIEW OF MT CROSS INSURANCE COVERAGE The Committee was informed of the informational presentation that was made to the Council in June and that a packet of materials is available for review for anyone interested.
INVESTMENT MANAGEMENT Committee members agreed to a process for interviewing possible investment managers where individual Committee members will hold separate meeting with the recommended individuals. Once the interviews are completed, the Committee as a whole can compare notes and impressions. In the meantime, the Treasurer is preparing a history of the Schwab account performance for review and a packet of materials explaining the ELCA Mission Fund has been assembled.
MISCELLANEOUS
Committee members requested information as to why the Drama funds were being managed by Mt Cross and why the congregation is apparently “fronting” the costs of the production. There was also a discussion as to whether the Classical Concert Series has provided any funds to Mt Cross over the years to offset facility use.
FUTURE COMMITTEE MEETINGS
August 8, September 12, October 10, November 11,
December 5, December 12
HIGHLIGHTS OF APRIL 2011 FINANCIAL REPORTS
Mt Cross Lutheran, Camarillo
Prepared by Susan Prosser, Budget and Finance Chair
INCOME
Year-to-date income is under realized due largely to Envelope-NonPledged category.
Pledged giving has increased to 97% by end of April.
EXPENSES
Payroll expenses continue to outpace projections.
Stephen Ministry has expended full budgeted funds plus roughly $500.
APRIL SUMMARY
Income of $37,962 versus expenses of $38,011 or essentially a “wash” for the month.
Budget overrun of $10,658 for Jan – April due to carry forward from prior month.
Total Assets and Total Assets and Liabilities remained relatively unchanged with a growth of
approximately $2200.
April 2010 – was a break even month with a carry forward overall deficit of $12,600.
MATTERS FOR REVIEW BY TREASURER AND BUDGET AND FINANCE COMMITTEE
March Salaries and Benefits in particular and continuing payroll expense projections.
Projections for Envelope - Non Pledged giving.
Whether any midyear adjustments or advisories will be recommended.
End of month balance in Checking/Savings - should a minimum be established.
COMMITTEE MEETING MINUTES
MT
MARCH 7, 2011
Present: Karen Gramacki, Bob Brundage, Jessica Rebbe,
and Susan Prosser
Absent: Herb Holler and Jessica Guzman
INTRODUCTION
OF NEW MEMBERS AND TREASURER
It was
reported that Bob Brundage will join the Committee as a second representative
of the Church Council and Jessica Guzman has volunteered to become a member of
the committee although unable to attend tonight.
BUDGET
MATTERS
Jessica
Rebbe, Treasurer, presented the final version of the 2010 end-of-year financial
report and explained that the only change of note was the assignment of costs
associated with an unemployment claim.
The Committee
was provided with a general briefing regarding the particulars of the claim and
the issue of unemployment insurance that had been dealt with by the Church
Council in late December 2010 and January 2011.
The resulting decision has been to discontinue voluntary participation
in the unemployment insurance program by Mt Cross. There remains the potential
for unemployment claims by anyone employed by Mt Cross prior to 12/13/10 which
will terminate by a fixed date. In addition, there have been some questions
about the intent of the budget in assigning the 2% staff compensation
increase. At present the issue is
awaiting comment from the Personnel Committee.
The Committee discussed the intention of the Budget recommendation and
the difference between a salary and a stipend. There was agreement that prior
to the next budget cycle the one remaining stipend should be addressed and
better defined. We have also experienced
payroll tax penalties for late deposits in the past. This has been due to combined depositing with
the CDC done by the CDC Treasurer and may have been late due to CDC cash flow.
Joint reporting is required since we share a single employer reporting number
but Jessica Rebbe will pursue the option of separate deposits to avoid future
penalties.
The
committee reviewed the financial reports for January 2011. At the end of the first month of the year,
income was reported at 94% of budget and expenses were at 86% of budget. Obviously, this is a very early report and
presents a positive position. The
Treasurer responded to specific questions and reviewed the Balance Sheet as of
January 31, 2011 as well. Particular
attention was given to Designated Funds since this is an area of intended
review for the Committee. There is a net
growth in assets from the same date prior year in the amount of $69,099 driven
by increases in the Mutual Funds account and Endowment Fund.
DISCUSSION
OF CHURCH INVESTMENTS
A
general discussion of the need for oversight of the invested funds was held
with the Treasurer first explaining the current Schwab account. It was explained that short term changes were
being made to expand the signature authority for the current investment account
but that there was general consensus that there needed to be some sort of fund
management of the investments. The
Committee members were in agreement and discussed alternatives for management
and whether the church should first adopted an investment philosophy/guideline
or develop one along with the selected management. For the April meeting, Committee members will
bring any models or ideas for investment guidelines and the Treasurer will
bring several recommended investment managers for consideration. The Chair will research information about investment
through the ELCA to share with the Committee.
A method and schedule for reviewing options and making a final
recommendation to the Church Council will be determined once that information
is received and the Council has confirmed this approach.
It was
decided that the Committee forward a recommendation to the Church Council for
action on Tuesday, March 8, 2011 that the Church’s invested funds (other than
the Endowment Funds which are already invested with the ELCA) be professionally
managed and that the Budget and Finance Committee be directed to review and
interview optional managers and return to the Church Council with a recommended
investment management contract.
OTHER
MATTERS
The
Treasurer reported that Petty Cash is no longer being used. Pastors have credit cards for use and receipts
for reimbursement are to be submitted rather than using petty cash.
The
Committee was informed that the 2011 Audit Committee is Mary Goodenough, Gordon
Henry and Marisa Anderson. Jessica Rebbe
is doing the ELCA required audit since she was not involved in the 2010
finances and can meet the deadline. The
member
committee
will have access to the same ELCA materials to organize their effort but will
be free to go beyond in their review and comment. They will report to the Budget and Finance
Committee.
FUTURE
COMMITTEE MEETINGS
May 9, June 13, July11, August 8,
September 12, October 10, November 11,
December 5, December 12
COMMITTEE MEETING MINUTES
MT
OCTOBER 11, 2010
Present: Karen Gramacki, Herb Holler, Susan Prosser, Randy Churchill, Bob Winters
Absent:
REPORT ON THE CHANGE IN THE TREASURER’S POSITION
The committee was briefed on the appointment of Randy Churchill as the replacement to Bob Winters as Church Treasurer with bookkeeping support being provided by Marilyn Gardner in the Church Office. A discussion followed regarding the implications of the division of duties that had previously been done entirely by the Treasurer. As a result, those present felt it is important to communicate with the Audit Committee to encourage them to perform an audit as this change in Treasurer is taking place as well as the change to bookkeeping. No audit was done in 2009. A review of procedures for the new bookkeeping arrangement, cash and income handling, use of credit cards and petty cash were additional topics that the committee felt could be address through an audit.
REVIEW OF 2010 THIRD QUARTER BUDGET REPORT
The committee reviewed the financial reports available for the period Jan – Sept 2010. The 2010 Budget is $10,688 out of balance based on $15, 384 in under realized income and $4,670 in under spent allocations. Both the outgoing and incoming Treasurer was present and discussed the budget status. There is presently a degree of cautious certainty that the budget will be met by year’s end. The situation requires continued monitoring as the year concludes since the Church is often dependent on significant end of year donations.
2011 BUDGET PROCESS
It was reported that the Church Council will discuss the start of the Budget Process on Oct 12th. The committee would like the format for 2011 budget request to require a simple itemization of the requested funds with sufficient description to justify the expense. It was also suggested that the Committee ask the Church Council to incorporate the Make It/Bake It funds into the Budget Process. Suggested methods for accomplishing this were discussed. A detailed discussion of the status of memorial and designated funds included suggestions for incorporating a review of the funds in conjunction with the Budget and Endowment Fund allocations. Susan Prosser, as committee chair, will communicate with Pastor John as to the specifics of the budget request solicitations and schedule.
FUTURE COMMITTEE MEETINGS
Dates will be scheduled and communicated to the committee once the Budget schedule has been established.
COMMITTEE MEETING MINUTES
MT
JULY 12, 2010
Present: Hernando Ramirez, Susan Prosser, Bob Winters
Absent:
Midyear Budget Review
The midyear budget reports prepared by Church Treasurer Bob Winters were reviewed. Of particular interest were the income deficit, the apparent increase in workers compensation insurance expense and the additional mortgage expense. The net impact of under realized income (- $8500) and under expended budget (- $1137) is a mid year projected Budget deficit of $7362. This assumption is based on an even monthly projection of income and expenses. The Committee noted that at this same point last year (2009) the projected Budget deficit was only $980 so this year’s numbers will definitely warrant continued monitoring. It should also be noted that the midyear position represents a slight improvement from the first quarter when the net Budget deficit was $8001.
An article will be prepared for the congregational newsletter regarding the midyear budget status in order to keep the membership up to date.
Church Treasurer Replacement
Since the last committee meeting there has been no success in finding an individual who wishes to assume the comprehensive duties of Church Treasurer as currently performed by Bob Winters.
Based on directions from the Church Council conversations have been held with the person who provides bookkeeping support to the Mt Cross CDC. This person is very familiar with the financial systems used by Mt Cross and our payroll system and has worked closely with Bob Winters. She would be interested in providing service to the church. The committee discussed the aspects of the current Treasurers position that would logically shift to an outside bookkeeper and the roll of the Treasurer in supervising and interacting with such a person. It was agreed that the committee would recommend to the Church Council that Mt Cross proceed with negotiations with the current CDC bookkeeper for services to support the regular financial activities of the congregation.
Bob Winters stated a willingness to continue as Treasurer
for a brief period of transition once contract bookkeeping services began in
order to assure continuity. After the
first month or so, the Committee will propose the appointment of a
Committee Meeting Minutes
January 6, 2010
Members Present: Susan
Prosser,
Others Present: Bob Winters, Church
Treasurer; Pastor John Soyster
Members Absent: Hernando
Ramirez
The minutes of the November
30, 2009 meeting were reviewed.
Bob Winters provided a report
of the 2009 end-of-year budget status with income that exceeded budget by
$3,122 and expenses that were $3,543 less than budgeted, resulting in a budget
surplus of $6.665. It was pointed out
that these are preliminary numbers which will be refined before final
end-of-year reporting. The most
important aspect of this report was the fact that an anticipated revenue
shortfall did not occur due to strong giving in the final two months of the
year.
The results of the
The Committee discussed the
implications of the pledge results for forecasting 2010 income. Income figures from the three past budget
years and attendance numbers and trends were discussed. The 2009 giving trends were also examined
with particular emphasis on the final quarter of the year. There was no decline in giving during this
period. For this reason primarily, the
Committee decided to forecast 2010 income that would include a small growth
factor from the 2009 Budget. This
approach is an optimistic outlook that will depend on continued strong
congregational giving and some growth in congregational size and/or
participation. The percentage of growth
is less than 1.5%.
The Committee then reviewed
that final version of the Requested Budget which will fund the recommended
compensation adjustments and requested program funding increases as presented
to the Church Council in November 2009.
At the suggestion of Bob Winters, items requested by the Bell Choir and
A discussion was held
regarding materials for the Congregational Meeting and it was agreed that there
may be an interest in information regarding the budget and funding of the ELCA
.
Given that an optimistic income projection has been made for 2010, the Budget Committee agreed that quarterly meetings will be held to review the status of the Budget.
The next Committee meeting will be held on MONDAY, APRIL 12, 2010 AT 7 PM.
Committee Meeting Minutes
November 30, 2009
Members Present: Susan Prosser, Paul Christensen, Karen Gramacki, Hernando Ramirez
Others Present: Bob Winters, church Treasurer; Pastor John Soyster
Members Absent: Herb Holler
General introductions were made with Paul Christensen and Karen Gramacki rejoining the committee after serving last year.
The minutes of the November 3, 2009 meeting were reviewed with particular emphasis on the action items listed at the end. All of the listed items were accomplished. Bob Winters provided an update to the current budget status as discussed at the last meeting with information about a $10,000 stock gift that he had not included in the figures last reviewed.
A report was given of the various budget requests that were
received since the last meeting.
Contacts with committees and staff had been successful in securing all
the data needed to complete a proposed budget.
Specific requests and/or recommendations were received from: Fellowship
Committee, Music and Worship Committee, Learning, Service and Missions
Committee,
Particular discussion was given to the recommendations for staff and pastoral salary adjustments since none were given in 2009. The Personnel Committee recommended a specific dollar value adjustment for the Praise Band Director based on adding one additional hour of pay per week at the current rate of pay. The recommendation for most other staff positions was a 2% salary increase. The Executive Committee recommended salary adjustments of 2% for the senior pastor and 4% for the associate pastor. This recommendation reflects a commitment made two years earlier to bring the associate pastor’s salary closer to the Synod recommended compensation level. (The recommended compensation levels would place the senior pastor at 6.4% under Synod guidelines and the associate pastor 10.6% under guidelines.)
Pastor Soyster gave a report of the current status of the Stewardship campaign. Currently there are 101 cards that have been turned in of which 87 included a pledge for 2010. The total pledged amount to date is $255,594. An additional 10 pledge cards have been received but not yet counted. These numbers should be compared with 130 total pledges in 2009 and 137 in 2008. For reference there are 229 active households in the congregation membership.
Bob Winters presented the first draft of the proposed 2010 Budget with all the requests and recommendations included. Also included are projections made for any changes to operating expenses. The budget as presented totals $482,108 which is a 3.7% increase over the 2009 Budget. (The 2009 Budget had been a reduction of 5.8% from the prior year) The dollar total of the increase is $17,104 of which $7,841 is associated with salaries and benefits. Operating expenses increased by $4,607 of which $1800 restores purchase of devotional booklets and a $3400 increase in property maintenance. All other budget categories increased by $4355 with $400 in new expense for Women’s Bible Study, $460 increased confirmation class expense, $500 deferred bell maintenance and a $1750 increase in Steven Ministry expense for leader training. Other account changes throughout the budget were less significant plus or minus.
The committee discussed the presentation to be made to the Church Council on December 8, 2009. It was agreed that the budget as drafted with all requests and recommendations would be presented at this time awaiting a refinement of revenue numbers. The committee members agreed that more data is needed from the Stewardship Committee before final revenue projections can be made. The Budget Committee will meet in early January to complete a review of the end of year figures for 2009 and finalize revenue projections for 2010. At that time, a final budget recommendation will be prepared for the January Church Council meeting.
Committee members agreed to meet next on Wednesday, January 6, 2010 at 7 p.m.
Committee Meeting Minutes
Mount Cross Lutheran Church Budget Committee
November 3, 2009
Members Present: Susan Prosser, Herb Holler, Hernando Ramirez
Others Present: Bob Winters, Church Treasurer; Pastor John Soyster
General introductions were made.
The status of the 2009 budget was discussed with an update including October expenses provided by Bob Winters. In summary, after 10 months revenue is $20,632 less than budgeted and expenses have exceeded the budget by $1,771. This status report assumes that both revenue and expenses are prorated equally over the twelve months. The committee agreed that it is important to provide the congregation with a budget status report to be done by both the committee chairperson and the Pastor within the next several weeks. The goal of these reports is to inform and encourage end of year giving.
The schedule for the 2010 Budget process was discussed. The next Budget Committee meeting was set for Monday, November 30, 2009 at 7 p.m. The first draft budget is due for presentation to the Church Council on December 8, 2009 and the final budget will be submitted to Council for review on January 12, 2010. The annual congregational meeting has been set for January 31, 2010.
A report of budget requests was made by Susan Prosser. The original submittal deadline of October 31, 2009 did not produce very many requests. Requests were submitted for the Bell Choir, Women’s Bible Study and Property Committee. It was decided that an extended deadline of November 25, 2009 would be communicated to all committees and functions with budget needs. Prior to the annual meeting, we will also ask committees to provide budget impact statements if their functions or activities have been impacted by budget reductions or limitations.
Guidelines for development of the draft 2010 budget were discussed. The committee agreed that the historical practice of annual increases in benevolence be continued with a 1% increase in the first budget draft. Treasurer Bob Winters will research and project the fixed costs for inclusion. Since the current church By-laws require provision of The Lutheran to every household, the draft budget will include funds for subscriptions. All requests received by the deadline will be included as requested for the first draft.
Revenue projections were discussed and it was determined that the committee would need to continue to monitor both current year giving and the ongoing Stewardship Campaign. Pastor John reported that he has requested sample information on the most recent pledge drive that may help the committee determine whether there is any trend in anticipated giving.
Committee members inquired whether there were any other congregational trends that would be important to know during the budget process. Pastor John reported that membership and worship attendance have remained steady as compared to the prior year.
The committee meeting concluded with agreement that:
1. Susan Prosser and Pastor John would communicate the status of the current budget to the congregation before the next committee meeting.
2. Susan Prosser would communicate with each committee or function that had yet to submit a budget request and provide the extended submittal deadline
3. Bob Winters would receive every budget request and prepare a first draft proposed budget for review by the committee on November 3, 2009
4. Updates on the Stewardship Campaign would be available on November 3, 2009
5. The Committee would meet Monday, November 30, 2009 at 7 p.m. at the church.
Mt Cross Lutheran
Church
Camarillo, California
Report from the Finance and Budget Committee
Members of the committee are; Pastor John Soyster, Pastor Erik
Goehner, Bob Winters, Paul Christensen, Karen Gramacki, Hernando Ramirez and
Herb Holler
The committee met on November 18 and 24 to put together a
draft budget for 2009. The process was
hard and involved much discussion because we had to cut about $32,000 from the
2008 budget. Our income of the past
three years has not increased and our expenses exceeded income by about $35,000
this year. The various church committees
have been very good about paring down their budgets for this year. We made all the cuts that were possible
without seriously effecting existing church programs.
This proposed budget is contingent on the congregation
approving the mortgage refinance recommendation during the annual meeting in
January. Without that approval the proposed CY-09 budget will require
additional adjustments to positions and or salary before implementation;
The budget now goes to council for review and recommendation
to send it to the congregation for approval at the January congregational
meeting.
Herb Holler
Monday, September 8,
2008
Mount Cross Lutheran Church
Meeting of the Budget and Finance Committee
This meeting was called to review the state of our budget
and offer recommendations to the church council.
Attendees: Pastor John
Soyster, Paul Christensen, Bob Winters and Herb Holler (Chair)
The church finances continue to decline. We are vitally interested in how the
finances will hold up in the fourth quarter, this will determine our draft
budget for 2009.
Recommendations from the Budget and Finance Committee to the
Church Council;
Tuesday, June 17, 2008
Mount Cross Lutheran Church
Meeting of the Budget and Finance Committee
This meeting was called to review the state of our budget
and offer recommendations to the church council.
Attendees: Pastor John
Soyster, Paul Christensen, Karen Gramacki, Bob Winters and Herb Holler (Chair)
The Church Treasurer, Bob Winters, presented a “MCLC
Finances: Mid Year” report for our review and discussion. He also presented a “MCLC2008 Comparative
P&L Summary” report to the committee.
Our Budget at the end of May is $22,821.32 short. Expenses
are on schedule but income is running behind the budget. Income has been
decreasing since 2006. In reviewing
expenses it became apparent that minor cuts can be made to some operating
expenses. The only area that major cuts
to the budget can be made is salary. Our
current income is $36,000 a month and it would require $46,000 a month for the
rest of the year to catch up. We do have
enough cash reserve that we are not in a crisis situation but this deficit
cannot continue.
Recommendations from the Budget and Finance Committee to the
Church Council;
The committees’ next meeting will be held Sept 2nd
to discuss our financial situation and recommendations for the 2009
budget. Recommendations to be presented at
the council meeting on Sept 9th.
Mount Cross Lutheran Church
Budget and Finance Committee Meeting Minutes
Sept. 11, 2006
Attendees: Jenny Christensen, Paul Christensen, Karen Gramacki, Keith Selbrede and Bob Winters
Agenda:
1. Review/analyze financial performance YTD
a. Income YTD is right on budget and expenses are $10K below – excellent position for the end of August.
b. We discussed our recommendation regarding the $5,000 front money for “Project Peace.” Our recommendation remains the same: to treat these funds as a loan to the people who received them. This is primarily due to the expected increase in the 2007 budget of around $33,000 due to added staff, Safeguarding Our Children costs and Pastor John’s sabbatical.
2. Develop 2007 budget
a. Input from committees – none received yet.
b. Input from Mutual Ministry regarding called staff - none received yet
c. Input from Personnel regarding other staff – none received yet
3. Stewardship Committee plan and timing
a. No information has been received. Input requested again.
Keith will bring these items up again at Council on Sept. 12. Key needs are as follows;
1. Committee budgets for 2007 with justification for changes
2. Budgets for all staff
3. Budget for Safeguarding our Children
4. Decision on Project Peace advance funds.
5. Budget for Pastor John’s sabbatical
6. Stewardship plan
The next meeting will be Wednesday, Oct. 18 at 10:00 AM.
Respectfully submitted,
Keith Selbrede
STEWARDSHIP COMMITTEE UPDATE
Tuesday, October 2, 2007
Annual Every Member Response – Fall Drive 2007
THEME: GROWING OUR GIFTS
Incorporate
our Core Values form the Strategic Planning Committee
Dates
for introducing Core Values with “Garden Spots” and sermons
Committee Members: Bob Brundage,
Barbara Burke, Herb Holler, Dick Hough, Gayle Johnson, Pastor Erik, Pastor John
DIGGING IN AND BRANCHING OUT
September
16: Introduction to Growing our Gifts –Bob and Gayle
September
23: Intimacy with God –Pastor Erik
September
30: Inspiring Worship – Jenny
Christensen & LaJean Wenzel
October
7: Nurturing
the Next Generation- Kelsey Rhodes & Ross
Crockett
October
14: Compassionate Outreach – Pat
Gallagher & Cy Johnson
October
21: Caring Community - Probably Bev
Rueckert
October
28: Property? Need to discuss.
Pastor
Erik is organizing Sundays September 23, 30 and October 7. Gayle is organizing
Sundays October 14 and 21. We need to discuss Sunday, Oct. 28.
Display
tables with information, pictures, power point, video and other items are
encouraged for each ministry area to coordinate for the appropriate Sunday.
GARDEN BASKETS – Sunday October
21
Return prior to Sunday, November 11th
Materials
for the baskets:
Letter
of information
Time
and Talent 2008
Plan
for Giving 2008
Envelopes
for 2008
Seed
Packet
Outside
Baskets:
Instructions
Handbook
for 2008 – 3 copies for the basket and online
Decorations
Overall:
Baskets
have been purchased – Thanks Barbara
Prayer
for send off of baskets on Sunday, October 21
Delivery
Routes: Garden Baskets to households
Seed
Packets – Herb checking on this
Recruit
Master Gardeners for each route
Master
Gardeners – Start and check on the routes
*Routes are organized- Thanks
to Dick Hough
Currently 16 routes and two
mail groups and others to mail
COMMUNICATIONS – Connection to
the Congregation
Return
of the baskets
Results-
Patio Party between worship services
Other
. . .
Pastor
Erik checking on this area - brainstorm any other ideas
Coordination
with Finance Committee – Need to check on this
Overall Goals for Stewardship
Committee
Incorporate
our Mission and Core Values
Year
Round Emphasis
Inspire
giving
Involve
children and Youth
Debt Reduction
Ideas
Next Meeting: Tuesday, October
16 @ 1:30 p.m.
Mount Cross Lutheran Church
Budget and Finance Committee
Meeting Minutes
July 24, 2006
Attendees: Jenny Christensen,
Paul Christensen, Karen Gramacki, Keith Selbrede and Bob Winters
Agenda :
a.
Income YTD is
$2800 ahead of budget and spending is $5600 below.
b.
There are a
number of unbudgeted items that cause concern:
i. The $5000 used to finance Project Peace. The committee recommend these funds be
treated as loans to the people who receive $100 seed money rather than having
the congregation absorb this expense as benevolence.
ii. Estimated $5000 for the Safeguarding Our Children
project (See discussion below).
iii. Expenses of $7000 for the children’s ministry new
hire. While this has already been funded from designated funds, we need to keep
it in mind for the 2007 budget.
iv. Adding the Praise Band to Jonathan’s responsibilities.
v. Expenses related to the 40th anniversary.
vi. Expenses related to Pastor John’s sabbatical.
a.
Input from
committees
i. The initial request will be made at the July council
meeting. All budget requests for 2007
are to be submitted to the Budget and Finance Committee by October 1.
ii. Budget requests must indicate how the money will be
spent (especially for increases over 2006 budget or expenses).
iii. Budget requests not received on time will be handled
by the B&F Committee at their discretion.
b.
Input from Mutual
Ministry regarding staff: recommendations are needed from this committee
regarding called staff performance and salary recommendations. The Personnel Committee needs to provide
recommendations for other paid staff positions.
c.
Coordination with
the Stewardship Committee: Keith will
obtain a schedule from the Stewardship Committee on their plans and timing.
a.
Paul reported the
current estimated cost to be $5000 ($55 each) for the people identified for
this project.
b.
He has also
contacted our insurer to determine their expectations on required needs. This will influence the final costs.
c.
Since we won’t have
the program in place for VBS, we will include that in the 2007 budget.
d.
We recommend that
the initial expense in 2006 be taken from the “Sunday School” designated fund
which currently has $5115 in it.
Next meetings:
Sept. 11 to budget items that are our responsibility.
Oct.
16 to review the inputs from other sources and start assembling the final
budget.
Respectfully submitted,
Keith Selbrede
Budget and Finance Committee
Chair/Liaison
July 24, 2006
Mount Cross Lutheran Church
Budget and Finance Committee Report
For
September 22, 2005
The following members of the committee were present; Karen Gramacki, Herb Holler, Jenny Christensen, Paul Christensen and Bob Winters. Gayle Johnson, President of the Church Council, also attended the meeting.
Gayle brought a request from the Stewardship Committee; they need the church budget for 2006 to use in their drive for this year. The committee wants to include the visionary budget items that are under discussion by other committees of the church. They are;
After much discussion it was recommended that the Stewardship Committee use the 2005 budget plus 2% for cost of living adjustment. Then the committees above should provide their visionary costs to the Stewardship Committee.
At the next council meeting Herb will request budgets from the various committees so a church budget can be put together for next year.
The Personal Committee did provide raise inputs for non-call staff.
It was not resolved who would provide raise recommendations for called church staff.
The next meeting will be Monday, October 17th at 7 PM.
Herb Holler
Mount Cross Lutheran Church
Budget and Finance Committee Report
For
June 24, 2005
The topic of discussion was how the church funds not required for immediate cash flow are invested. Bob Winters presented a breakdown of the present investments and his rational for determining those investments. After review it was decided that the present investment method meets the requirements of the church and no changes are required.
At our next meeting in September we will start the annual budget process for the coming year.
Herb Holler
Mount Cross Lutheran Church
Budget, Finance and Endowment Committee Report
For
February 24, 2005
The following people comprise the committee membership:
Jenny Christensen
Paul Christensen*
Bill Greason*
Herb Holler*
Karen Gramacki
Tim Thomtom
Bob Winters*
*Were present at this meeting, those absent expressed a strong willingness to join the committee and participate in its activities.
The committee met to discuss our mission, meeting times and select a chairperson.
Herb Holler was selected as chairperson of the committee.
The “Areas of Council Responsibilities” were discussed related to our committee on page 10 of the “Handbook for Council Members”.
· It was noted that the line related to the endowment fund should be removed and that committee should have a separate area for their responsibilities.
The following topics were discussed for future work;
· Investments – The treasurer presently invests the church reserve funds. At Bob’s request we will review those investment procedures.
· Pastoral compensation – The committee will obtain and review data on pastoral compensation within the ELCA in relation to our present compensation.
· Review our church’s contribution to benevolence.
· Only one person in the congregation knows how much each individual contributes to the church. We will review this procedure.
· It was noted that the CDC and Endowment Committee did not include a financial report in the annual report.
· We want to meet with the stewardship committee to discuss contributions to the church.
The committee will meet on alternating months. The next meeting will be April 14th.