Metropolitan Community Churches

Board of Administration

 

 

Conference Call

Friday 9 December 2005

 

Present

 

Judy Dale (Chair)

Marsha Warren (Treasurer) from item 2

Stephen Harte (Secretary)

John Vespa

Rev Jeff Miner

 

Apologies

 

Marsha Warren (for unavoidable lateness)

 

In Attendance

 

Rev Dr Cindi Love (Executive Director) (except for executive session)

Margaret Mahlman (Chief Financial Officer) (except for executive session)

Rev Elder Nancy Wilson, Moderator

Connie Meadows, Assistant to the Moderator (except for executive session)

 

1.1        Prayers

 

John Vespa opened in prayer.

 

1.2        Approval of Minutes

 

The Board approved the minutes of the Conference Call of 19 November 2005 and instructed they be circulated.

 

2          Financial Matters

 

2.1        Financial Report

 

The Executive Director and Chief Financial Officer reported on the current financial situation and the proposed loan from Circle of Light MCC in Miami. Reference was made to the Report circulated by the Executive Director prior to this meeting (see attached). 

 

2.2        Finance Manual

 

The Executive Director and Chief Financial Officer will work with the Finance Team to review this manual.

 

2.3               Fundraising issues

 

The Board discussed issues surrounding fund raising for specific projects.

 

3.         Other Matters

 

3.1        Sabbatical Policy

 

This matter is under review with a review to refocusing the policy away from an automatic entitlement towards agreed discretionary time taken by an employee with a particular project in mind.  John Vespa in conjunction with the HR team will look at this further.

 

3.2               Leadership Team Report

 

The Chair reported on the recent Leadership Team meeting.  BOA applications are being processed.  Stephen Harte will be the BOA representative on the interview team (together with Rev Elders Wilson and Eggleston) with Marsha Warren as alternate.  The resumés of the applicants will be circulated to the BOA prior to the interviews so BOA members can provide input.  By 1 January we will have up to 3 vacancies to fill.

 

3.3        Moderator’s Office

 

Problems surrounding the fit out of the proposed new office has lead the Moderator to advise that we terminate our existing lease arrangements and investigate alternative possibilities.  Marsha Warren and Rev Jeff Miner will work with the Executive Director to investigate our options.

 

3.4        GRB Process

 

Joint call with BOA and BOE will be on Monday where the two boards will be invited to take a decision on the GRB Proposal.

 

3.5        Executive Director Report

 

Further reference is made to the attached report. 

 

The Executive Director explained further information on the Advantec Plan. 

 

The move of the HQ operation into the MCC LA building is progressing well.  The help of the staff and congregation of MCC LA has been very much appreciated.  The new tenants may be willing to acquire some of our surplus office equipment.

 

The Executive Director has proposed arranging some training for the BOA at the next meeting in March.  The Board accepted the Executive Director’s proposal.

 

3.6               Moderator’s Report

 

The Moderator reported to the Board on her recent activities.  She is recently back from successful meetings at United Church of Christ headquarters in Cleveland.  Relations between UCC and MCC are good and progressing healthily.  Issues surrounding affiliation and dual affiliation were discussed. 

 

Next week the Moderator will be going to Alabama with Rev Elder Jim Mitulski to meet with two Church’s considering disaffiliation.  Rev Elder Ackerman is working with Rev Andy Sidden whose Church is considering disaffiliation. 

 

The Moderator is working with the Elders on portfolio development.  It is hoped that BOA\members will develop portfolios too.

 

The Moderator and Rev Elder Eggleston met with European clergy who had concerns regarding clergy fees and credentialing issues.

 

The Moderator will be visiting the New Orleans church before Christmas.

 

3.7        Housing Allowance

 

Whereas, Section 107 of the Internal Revenue Code permits a minister of the gospel to exclude from gross income (in computing federal income taxes) a church-designated allowance paid to him or her as part of his or her compensation to the extend used for actual expenses in owning or renting a home; and

Whereas, the following list of personnel are compensated by the Universal Fellowship of Metropolitan Community Churches exclusively for services as ministers of the gospel and the Universal Fellowship of Metropolitan Community Churches; and

Whereas, the Universal Fellowship of Metropolitan Community Churches does not provide parsonages to the following ministers; therefore it is hereby

Resolved, that the total compensation paid in 2006 to the following ministers shall include housing allowances as indicated pursuant to section 107 of the Internal Revenue Code; and it is further

Resolved that the designation of the following housing allowance shall apply to the calendar year 2006 and all future years unless otherwise provided.

Rev Elder Darlene Garner           $18,000

 

3.8        BOA officers for 2006

 

            Given the arrival of new BOA members early this year the Board resolved to appoint its officers until 30 June 2006.  The Board resolved that until 30 June 2006 the following appointments be made:

 

                        Chair                             Rev Jim Miner

                        Treasurer/Vice Chair       Marsha Warren

                        Secretary                      Stephen Harte

 

            The Board express its appreciation for the work of Judy Dale as part of this Board over the past three years.

 

3.9        Personnel Matters

 

 

            The Board entered executive session to discuss personnel matters, the Moderator remaining with the Board at the Board’s request.  On leaving executive session, the Board resolved unanimously to approve the hiring of Mr Joshua Love to work with Rev Elders Brock and Mitulski in matters relating to the achievement of the Strategic Plan.  The Board noted the clear objectives set for the position by the two Elders and the report from those Elders on Mr Love’s suitability for employment in this role. The Board instructed that the Executive Director recuse herself from any decisions (including, by way of example, those relating to pay and conditions or disciplinary matters) that would effect Mr Love’s employment.

 

 

4          Closing Prayers

 

Marsha Warren closed in prayer.

 


Executive Director Financial report to Meeting

 

To help expedite today's BOA agenda, please note the following:

 

2.0 Financial Reports

2.1 Current Financial Situation and 2.2 Formal Agreement with South Beach (Circle of Light) MCC

 

These are my notes and observations:

 

Total end of month cash projected for November was $121,893 and was, in fact, $76,287.  Tithe collections were $169,514 and were projected at $216,000.    Fund development was projected at $17,100 and was $42,231. 

 

Monthly expenses were projected at $234,775 and were $244,770.  There was a slight increase in payroll taxes, higher legal, higher equipment contract,higher program ministry/conference (installation), church revitalization, but substantially less expense than projected in other areas.  Most of this is based on timing for Installation on AMEX. 

 

Total monthly expense for December is running slightly under projection as of December 7, 2005.  We are projecting a cash deficit for December of $63,312 in U.S. operating accounts. This is mostly due to payment of Quebecor (printing of Troy's book) using the AMEX and payment of the travel expense for Installation ($44,000) on AMEX.

 

We need to raise at least $75,000 through new funds, payment of back-tithes or other methods to offset this cash deficit.  We will pull down the last $30,000 on the line before December 16, 2005 and this is not part of the $75,000.  Our credit line will be fully extended and designated funds are loaned to us as well.  You can quickly see that the total indebtedness is roughly equal to the deficit in fund development.  Thus you can see the necessity for decreasing our budget almost $400,000 in 2006 and increasing revenue with the rental of our space. 

 

The year end appeal is out with the constituent groups including a reminder that U.S. tax payers can gain 100 percent value on what has been 50 percent if they make cash donations before year end.

 

Clergy fees are coming in ahead of schedule as planned.

 

The Circle of Light MCC Board met regarding a $200,000 credit line extension to us.  I've responded to the last questions they had, vetted this with our attorney.  If this is approved, we should plan to pay off our own credit line with the bank to the level that we can and still resolve our cash deficit in January 2006.

 

We are well into the process of employee enrolment for Advantec and should be on line for HQ by February 1.  Churches could be on-line January 1 if they complete all of the enrolment process by the end of next week, more probable that they will go on line February 1 as well.  We have 146 respondents to the census at this date.  We are also working with the churches on general liability and worker's compensation as part of this process and starting an inquiry about the 403(B) potential with Advantec so that pastors could roll pension (partial) and 403(B) UBS plans into this "one-stop shop."

 

We have not received Canada's bank statements yet and we are mid-stream in packing for the move, so November statements may be delayed. 

 

Employee enrolment as Advantec co-employees is underway.  Health insurance enrolment will take place the first week of January and we will be "live" on the new health insurance plan February 1.

 

2.3  This is underway.  No progress to report.

 

2.4  I am not aware of any "unsupervised" asks by Elders.  The International Gathering Fund is known to the BOA.  There is interest in raising funds for IPL in Romania by Diane Fisher, but no formal ask nor funds received to my awareness.  My view of the policy is that no one can make asks or receive funds without reviewing with the Executive Director.  To my knowledge, this has not happened.

 

2.5 Other 

I am working on a draft of revisions to the UFMCC Accounting Procedures Manual for Finance Team Review.  This is outdated. 

 

Board Source has offered to train our new and existing BOA members in March.  I want to book this for us.  I want our BOA to have 1/2 day on roles and responsibilities and relationship to Executive Director and 1/2 day on communication/relationship/conflict resolution including the twelve principles of governance that empower Exceptional Boards. 

 

Exceptional boards add significant value to their organizations, making a discernable difference in their advance on mission.  Good governance requires the board to balance its role as an oversight body with its role as a force supporting the organization.  The difference between responsible and exceptional boards lies in thoughtfulness and intentionality, action and engagement, knowledge and communication.  The following principles offer chief executives a description of an empowered board that is a strategic asset to be leveraged.  They provide board members with a vision of what is possible and a way to add lasting value to the organization they lead.

 

These are the first two of the twelve principles as an example:

 

  • Constructive partnership.  Exceptional boards govern in constructive partnership with the chief executive, recognizing that the effectiveness of the board and the CEO are interdependent.  They build this partnership with trust, candor, respect and honest communication.
  • Mission driven.  Exceptional boards shape and uphold the mission, articulate a compelling vision and ensure congruence between decisions and core values.  The questions of mission, vision, core values are not exercises to be done once, but statements of crucial importance to be drilled down and folded into deliberations.

3.4 + 4.0

 

We are at mid-point on our move.  The construction will conclude next Wednesday and we will move between now and Friday.  Enrolment changes including housing allowances are under way. 

 

Thank you.

 

Rev Dr Cindi Love

Executive Director