To join us for worship by computer, laptop, tablet, or mobile device for ZOOM Click Here

Vestry Minutes Grace Church Vestry Meeting July 17, 2013 (includes audit documents)

Grace Church Vestry Meeting

July 17, 2013   5:33 p.m., Finnerty & Stevens

_________________________________________

Present:  Rev. Francie Hills, Kathy Clausen, John Cheek, Susan Gray, Ian Booton, Sally Brooke, Sue Gore, Rick Gore, Dindy Anderson, Louise Robitaille, guest:  Ed Farrell, Transition Ministry Officer of the Diocese.

Away:  Geoff Perkins

The meeting was called to order at 5:33 p.m. by Senior Warden Kathy Clausen.  Chaplain John Cheek led us in Dwelling in the Word.

The minutes for the June 20 Vestry meeting were approved as read.

Treasurer’s Report:  Geoff Perkins had forwarded to the Vestry the final audit documents for St. James as of December 31, 2012.  The Vestry accepted the Audit Certificate dated July 3 2013, along with the “Audit Findings on Policies and Procedures” and the “Attachment to Audit Certificate”, containing comments and recommendations for Grace Church, dated July 3, 2013.  These will be included with these minutes for the record.  The Vestry congratulated Geoff and Louise on their hard work.  Sue Gore mentioned that St. George’s final audit materials were all prepared, and that they were waiting to receive the correct forms for filing from the Diocese.  She said they would probably do a “letter” form.

Louise reported that the Church Windows software program was already proving to be helpful with concise reporting.  She noted that she was working on six months’ worth of data entry – that budgets, investments, checking accounts, donations, salaries would all be in there.  She and Geoff would like to present preliminary results on July 28th, possibly not yet for distribution, as there are many questions to be answered first.

Sue Gore suggested that Grace look at distributing its outreach funds at the beginning of each fiscal year without waiting until the end of the year to see how much is available to be given.  This way, she said, outreach becomes a part of the guiding philosophy of the church, and not just a matter of numbers.

Committee/Other Reports:  

Property/Building Committee:  Rick Gore said there were two rental properties available for office/meeting space, on State Street in Great Barrington.  He will be meeting wih the owner next week.  He suggested that members of the Vestry stop by and check them out for themselves.

Year-round Stewardship Committee:  John Cheek  said the next meeting of the committee would be on July 30.

Rector’s Report: 

Latino Ministry:  Francie announced there would be a meeting of the conversation group, with neighboring churches and Tom Callard from the Diocese on July 24 at her home

July 21 picnic:  Francie has met with Annie Ryder, and it has been decided that the loose plate collection will go to Construct Inc.   She commended Sue Gore for spearheading the event.

Francie mentioned that the upcoming Doyle wedding, at which she will officiate, will be the first in Grace’s register.  She is finding dates for two re-interments of ashes from the columbarium.  She has written an introduction to the updated history of St. James by John Toffey Jr.; and will write a history of Grace Church for the website.  She was pleased at how many visitors there were the preceding Sunday – “a wonderful thing”.  She also announced (to no-one’s surprise) that she and fiancé Marc Britt had passed their pre-wedding classes.

Kathy then said a prayer for Francie, who left the meeting so that the transition to a new rector could be discussed with Transition Ministry Officer Ed Farrell.

Mr. Farrell said that Grace was in an unusual situation regarding its transition to a new rector.  The traditional way has been that first the rector leaves, then an interim comes, and then the search committee for a new full-time rector is formed.  This way, the “consolidation” of a congregation usually takes two to three years.  He said this typical model might not work for us, given that we have been “in transition” for several years already, that a Search Committee is already working on a profile, and that Francie will be leading the congregation until November 28.

Another way is for the Diocese to recruit priests-in-charge instead of rectors. The Search Committee then looks at the available candidates, a “narrower field” according to Farrell.  After one is decided upon and installed, a review takes place at the end of two years, and the priest and the congregation decide whether to continue for a third year, or more.  “This has become very common” he said.  Such a search could begin when the parish profile is done, or almost done, during the September conference or before.  He stressed that the Search Committee needed to be spiritually “well-grounded”, and that clarity and communication were very important.  He will be joined in the effort by Canon Pam Mott in August, and promises to be “very pro-active” in our search.   There are currently thirteen congregations in transition in our Diocese.  Sue Gore and Louise Robitaille will be meeting with him on the profile next week.   The Vestry thanked him for his careful attention to our situation.

The meeting ended with a prayer at 7:25.  Respectfully submitted, Sally N. Brooke, Clerk.

* * *

AUDIT CERTIFICATE

Date: July 3, 2013

To the Rector, Wardens and Vestry of
Grace Episcopal Church in the Southern Berkshires

P. O. Box 114
Great Barrington, MA 01230-0114

I have inspected the statement of financial position of St. James’ Church as of December 31, 2012, and the related statement of activities and cash flows for the year then ended. My inspection was made in accordance with the audit guidelines of the Manual of Business Methods in Church Affairs. The financial statements are prepared on a cash basis in accordance with principles adopted by the Episcopal Church and approved by its General Convention except as noted.

Note the exceptions here, if any:

I have taken steps to see that the accompanying financial statements present fairly, in all material respects, except as noted above, the financial position of the congregation as of December 31, 2012; and that the changes in the net assets and its cash flows for the year then ended are in accordance with the principles authorized by General Convention of the Episcopal Church on a basis consistent with that of the preceding year.

My inspection and certificate are not meant to be construed as an audit and opinion rendered by a Certified Public Accountant.

Sincerely,

Bruce A. Rockwell

Bruce A. Rockwell
51 Perkins Street Springfield, MA 01118-2030 (413) 575-7342

 

*  *  *

AUDIT FINDINGS ON POLICIES AND PROCEDURES

Date: July3, 2013

To the Rector, Wardens and Vestry of
Grace Episcopal Church in the Southern Berkshires

P. O. Box 114
Great Barrington, MA 01230-0114

During the course of my inspection of the financial statements of St. James’ church as of December 31, 2011, the following items pertaining to internal control and other operational matters were noted. The first group includes areas of management control where prior year auditor recommendations have been implemented; the second group includes comments and recommendations of current year auditors.

Areas where prior year auditor recommendations have been implemented:

∗ ∗ ∗

Attachment to Audit Certificate

Audit Comments and Recommendations:

I recommend that the Vestry appoint a Finance Committee to work with the Treasurer and Assistant Treasurer. This committee should have members who are familiar with financial management issues and should assist the Treasurer and Assistant Treasurer in finding ways to continue to improve the financial accounting systems of the parish. This committee can also review the financial statements in more detail that time may afford the Vestry.

From the Internal Controls Questionnaire section on Cash Receipts: The current practice of having the Assistant Treasurer take the offerings/receipts home on Sunday and depositing them at the bank the next day is far from idea but is probably necessary at the present time since there is no parish office and therefore no way in which the offering can be locked up overnight. Any time cash receipts are not held in dual control, there is exposure that should be avoided if at all possible. I recommend that the newly appointed Finance Committee work with the Treasurer and Assistant Treasurer to come up with a better procedure that is practical, given your circumstances, but does not create undue hardship in terms of time and effort.

From the Internal Controls Questionnaire section on Cash Disbursements: The Treasurer noted that there is a clearly defined approval process for all disbursements but that it is not always strictly followed. I recommend that a form be developed that would be completed by a person requesting payment, either to themselves as a reimbursement or to a vendor, showing the amount to be paid, the purpose for the payment, the account to be charged (if that person knows; otherwise to be completed by the person approving the payment). This form would then be signed and dated by the person making the request. There would also be a place on the form for the person approving the expense to sign and date it as well.

In addition, I recommend that the parish have a rubber stamp made that will be used when invoices from vendors are approved for payment. It will provide the person approving the expense a place to sign or initial indicating approval and to put the date. This would be stamped on the invoice to show approval and to guard against paying a second invoice for the same purpose. (See question 7 in the Cash Disbursements section)

From the Internal Controls Questionnaire section on Bank Account Reconciliation: At the present time the Assistant Treasurer reconciles the bank statement. Since she also prepares the checks, I recommend that someone else such as the Treasurer review the monthly account reconciliation and initial and date it indicating a second set of eyes has reviewed the reconciliation. Moreover, I recommend that when the account is reconciled, attention be paid to any checks outstanding more than 90 days. The payee of any checks should be contacted to determine if the check has been lost or to determine if, for whatever reason, they don’t plan to cash the check. This is especially important as the calendar year draws to a close so that checks outstanding more than 180 days are dealt with in the calendar year in which they were issued.

From the General section of the Internal Controls Questionnaire: While the Treasurer and Assistant Treasurer rely on The Manual of Business Methods in Church Affairs to guide their work, I recommend that a procedures manual (specific to the parish) be created to spell out the duties of the Treasurer, the Assistant Treasurer, and the Counters. The procedures that are to be followed in cash receipts and cash disbursements should be outlined in this manual. This will be a great assistance should there be turnover in one of these key positions.

 

*  *  *