Archives posted Thursday, February 21, 2008
Diocese of Pennsylvania Financial Timeline
May 1 | 2006 (up until this date)
November, 2000
The Chancellor informed Standing Committee that certain endowment funds previously controlled by Standing Committee would now be under control of Finance and Property Committee (Canon 13.3)
May 10, 2001
Diocesan Council meeting (OHE= Our Holy Experiment)
Discussion and questioning about source of funds available for OHE.
June 4, 2001
Joint meeting Dio. Council Executive & Standing Committees
Discussion about Our Holy Experiment (OHE) – preliminary budget and sources:
Budget developed in consultation with staff, fulfilling needs of plan. $500,000 over the available resources; budget committee reduced, but still $380,000 over resources; 3 possible sources of money (Congregational giving (assuming will be more than 2000)); Elkins Park funds made available to the Bishop (311) – a portion: Perhaps funds from Standing Committee (need a specific amount and to look at any restrictions on use)
June 21, 2001
Diocesan Council meeting
Discussion as part of Program Budget report about need for special efforts to raise funds for OHE or to rethink the priorities and implications of OHE.
Nov.16-17, 2001
Diocesan Retreat
Question raised if feasibility study for capital campaign can be completed between March 2002 and the Convention in November.
Concern raised about buying land before the Convention vote; comments that purchasing land does not mean the camp & conference center are a “foregone conclusion”; land can be sold.
January 26, 2002
Diocesan Council meeting
Question raised about fundraising priorities and how we can reconcile what is needed and what can be raised.
March 16, 2002
Diocesan Council meeting
1st discussion of Wapiti & preliminary mention of use of Denbigh funds for purchase.
Bishop Bennison confirms Treasurer’s report that financial statements were not accurate and are not being provided to Council and Finance & Property at this point.
May 19, 2002
Diocesan Council meeting
There is a budget shortfall, so $2.2 million in accumulated unused endowment income will be used to cover the shortfall. Program Budget committee recommends flat level spending.
June 10, 2002
Joint meeting of Diocesan Council Executive & Standing Committees
Question raised about the controlling authority for spending Denbigh Funds; confirmed that Standing Committee needs to consent.
June 20, 2002
Diocesan Council meeting
Finance & Property has received income statements, but is not yet receiving balance sheets and cash flow statements.
January 18, 2003
Diocesan Council meeting
Passed motion to use Denbigh funds as part of $3 million investment in Wapiti.
Indication that Program Budget for 2004 could expect “significant budgeting difficulties”.
Program Budget becomes a committee of the whole of Finance & Property.
Recommendation by Council member that a covenant be added so that the only way this property (Wapiti) can be developed is through new dollars, so not taking money from the unrestricted endowment. Bishop Bennison indicated that this is our intention.
As part of discussion about up-front developmental funding requirement, Bishop Bennison noted that we do not have the authority to spend the unrestricted funds, but Diocesan Council does have the authority to spend the Denbigh funds.
March 22, 2003
Diocesan Council meeting
The Chair of Finance & Property noted that there is concern about the lack of audit of the endowment funds; this will be addressed by Finance & Property.
There is a $500,000 shortfall which Finance & Property is trying to fund rather than reduce the budget.
June 12, 2003
Diocesan Council meeting
It was reported that Finance & Property had asked the Church Foundation to increase the pay-out rate from 4.5% to 4.75%
Finance & Property noted that they were reluctant to approve the budget which assumes an increase in parish giving (pledges) from $1.7 million to $2 million in order to balance the budget.
September 8, 2003
Joint meeting Diocesan Council Executive & Standing Committees
Concern by the Standing Committee member was conveyed about the Program Budget 2003 shortfall.
Program Budget chair noted that $200,000 from unused accumulated income would be used to cover the shortfall.
Standing Committee requested all finances related to the Wapiti transaction. (This was never received).
November 22, 2003
Diocesan Council meeting
Preliminary report from fund raising experts that the base exists to support a capital campaign.
Program Budget reports that there is a $200,000 deficit.
January 5, 2004
Joint meeting Diocesan Council Executive & Standing Committees
New Controller, Joe Suprenuk, had met with Standing Committee to outline concerns related to finances. Recommendation that he meet with Finance & Property, Church Foundation and Program Budget members periodically.
January 17, 2004
Diocesan Council meeting
Recommended that there be an audit of the Bishop’s Revolving Loan Fund to determine the status of payments. (This was never done).
March 25, 2004
Diocesan Council meeting
Question raised about what happens if the $100,000 in the Program Budget from the new Annual Fund is not raised. The chair of Finance & Property responded that the budget will be revised.
The issue of how much endowment income is committed to the new Program Budget was raised since the budget shows an increase in investment income and unrestricted funds of $586,111.
It was requested that the percentage of unrestricted funds being committed to the Program Budget be made available at the next meeting. (It was not provided).
June 17, 2004
Diocesan Council meeting
As a part of the Finance & Property report, the chair indicated that “The committee noted that the former Diocesan controller raised some complaints and concerns about Diocesan finances, which have been addressed. There is no cause for alarm regarding Diocesan finances. The letter did result in self-review and Diocesan Chancellor, Bill Bullitt, convened a committee to look at the Canons as they relate to financial control.”
The Diocese will be using some of the unrestricted net assets. This means that the Diocese is borrowing from endowment funds to pay for the 4Cs and a small amount of the Program Budget. The Diocese anticipates repaying the amount of endowment principal that is being used with proceeds from the upcoming capital campaign. The Diocese will be using $1.268 million in unrestricted net assets ($460,000 for the customary program budget and the remainder for the 4 C’s).
September 16, 2004
Diocesan Council meeting
Requested that Diocesan Council receive a comparison of the year-to-date budget to the actual year-to-date for Program Budget and Wapiti. There was also a request for regular reports so Diocesan Council can see if the spending is more than the income.
The Chair of Finance & Property reported:
The Committee received and approved the audit for 2003 subject to management clearing up some minor issues. Based on the recommendations of the Auditors for the 2003 audit, Finance and Property passed the following resolutions at their meeting last night (September 15, 2004):
Approval of the hiring of an actuary to value the cost to the Diocese of future clergy post retirement benefits to be accrued on the 2004 audit.
Approval of the Auditor’s recommendation that future audits of the Diocese of Pennsylvania, the Cathedral, the Church Foundation and the corporations holding the apartment building (3715 Chestnut) be incorporated into a consolidated audit statement as related parties.
Approval of the Auditor’s recommendation that the Diocese investigate certain notes owed to the Diocese by churches of the Diocese by direct note or through the Bishop’s Revolving Loan Fund.
November 2004:
Bill Powell joins Standing Committee and becomes the liaison to Finance & Property Committee.
December 2004:
Per the letter from the Chancellor of November, 2000 certain endowment funds previously controlled by Standing Committee are now being allocated by Finance and Property Committee.
December 2004:
Diocesan Council denies Standing Committee’s request for information on Unrestricted Net Assets (UNAs). Standing Committee told to go to the Church Foundation for information. The Church Foundation says to get the information from the Bishop.
February 2005:
Bishop Bennison receives a request for the UNA information and provides it to Standing Committee.
March 2005:
Use of UNA’s goes up by $600,000 for the 2005 budget and now totals $1.8 million for the year.
June 2005:
The Standing Committee’s liaison to Finance & Property reported misuse of UNA’s to Standing Committee. The Chancellor confirms approval (consent) is required by Standing Committee for use of UNA’s. Standing Committee demands restitution of funds used inappropriately.
November 2005:
Budget for 2006 is rejected by convention delegates and the Resolution to have Finance & Property membership changed from organized by Council to elected by Convention is passed.
January 2006:
Standing Committee asks for Bishop’s retirement or resignation.
February 2006:
Bishop Matthews visits the Diocese (February 21) and issues a report (March 7).
March 2006:
Bishop allows use of $350,000 from UNA’s without appropriate consent from the Standing Committee. Standing Committee learns of this in April and reaffirms the request for his retirement or resignation.
March 2006:
Wapiti receives low priority for funding at several Deanery meetings.
March 21, 2006
Preliminary findings from Capital Campaign Study interviews indicate that the $40million goal cannot be achieved at the present time and should evaluate priorities.
March 2006:
At the Special Convention, a budget is approved with a deficit of $550,000 to be covered by UNA’s if they are available after the results of the Special Audit are received.
April 2006:
Special Audit begins.
