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Minutes of Diocesan Finance Council | 4.27.23

Members Present:
Most Reverend William Shawn McKnight, Bishop
Very Reverend Jason T. Doke, Moderator of the Curia
Reverend Monsignor Robert A. Kurwicki, Vicar General
Mr. Benjamin H. Roodhouse, Chancellor
Mr. Rich Anderson
Mr. Bob Hackman
Mr. Michael Kelly
Ms. Barbara Reichart
Mr. Matthias Tolksdorf
Ms. Arlene Vogel (virtual)
Mr. Gary Wilbers (virtual)

Present by Invitation:
Mr. Joseph Braddock, CFO
Mr. Jake Seifert, Director of Development
Mrs. Cheryl Hertfelder, Director of Human Resources
Mrs. Kathy Smith, recording secretary

I. OPENING PRAYER
Bishop McKnight opened the meeting with a prayer.

II. INTRODUCTION OF NEW OFFICERS
Bishop McKnight introduced new council Chair, Mr. Gary Wilbers and new Vice Chair, Mr. Mike Kelly. Mr. Kelly chaired the meeting.

III. AUDIT PRESENTATION – CATHOLIC DIOCESE OF JEFFERSON CITY FUND
Mr. Kelly introduced Jacques Thro, CPA from CliftonLarsonAllen LLP. Mr. Thro presented the audit report. Discussion followed.

IV. AUDIT PRESENTATION – DIOCESE OF JEFFERSON CITY CHANCERY OFFICE
Mr. Thro presented the audit report. Discussion followed.

MOTION: Mr. Hackman motioned to recommend that the audit committee follow up on significant deficiencies reported in the audit findings. Mr. Roodhouse provided the second. Motion passed unanimously.

ACTION: Bishop McKnight stated that he would like Mr. Anderson and Mr. Roodhouse appointed to a newly established Fraud Sub-Committee to establish and oversee a fraud hotline. The appointments would be for a period of one year.

MOTION: Mr. Hackman motioned to approve the setup of a fraud hotline. Mr. Tolksdorf provided the second. Motion passed unanimously.

V. APPROVAL OF MINUTES
Mr. Anderson moved to approve the minutes of the January 26, 2023 meeting as presented. Ms. Reichert provided the second. Minutes approved unanimously.

VI. CATHOLIC CHARITIES OPERATIONS
Bishop McKnight presented his letter to the Board of Catholic Charities of Central and Northern Missouri (CCCNM). A copy of the letter is part of these minutes. Bishop McKnight noted:

  • There are serious concerns about the operation of the refugee division of CCCNM. It was intended that the refugee division be funded by government grants, but CCCNM failed to properly document expenses, making the activities ineligible for reimbursement.
  • He appointed Joe Braddock to interim CFO at CCCNM; Cheryl Hertfelder, Diocesan Human Resources Director, was appointed to interim HR Director and Sr. Kathleen Wegman was appointed to interim Executive Director.
  • Permission was given to CCCNM to get a loan of up to $1.5 million from the Catholic Diocese of Jefferson City Fund (Fund) to replenish the restricted funds used in operations. Permission was also given to open a $300,000 line of credit with the Fund.
  • There were also issues found in completing the CCCNM audit.

Discussion followed in Executive Session.

VII. BUDGET FOR FISCAL YEAR 2024
Mr. Braddock presented the preliminary budget highlights. They are part of these minutes. Discussion followed. The budget tabled for further discussion in Executive Session.

MOTION: Mr. Anderson motioned to recommend the preliminary budget to Bishop McKnight for fiscal year 2024 with the final budget being presented to the council at the August meeting. Mr. Hackman provided the second. Motion passed unanimously.

VIII. DEPARTMENT REPORTS
A. Building and Properties: Fr. Doke stated there were no updates to the following projects from the last meeting:

  • Helias Catholic High School: performing art center and baseball fields, to be done in two phases, total $30m
  • Holy Rosary Parish, M.onroe City: needs updates, schematics presented
  • Fr. Tolton Catholic High School: capital campaign for sports facilities, at architectural design phase
  • St. Anthony Parish, Camdenton: expand church, construction documents
  • out to bid, capital campaign finished
  • Holy Family Parish, Freeburg: expand school for additional classrooms
  • Immaculate Conception Parish, Jefferson City: long range plan for entire campus

Fr. Doke offered the following updates:

  • St. Joseph Parish, Salisbury: delayed maintenance issues in church. A capital campaign was approved for $1.25 million to address the issues.
  • St. Jude Thaddeus, Mokane: All funds on hand (approximately $400,00) to build new church; project is approved.
  • St. Boniface Chapel, Koeltztown: Parish hall project costing $750,000 approved.
  • Sacred Heart, Rich Fountain: Building project for $1.3 million approved. Capital campaign approved but 75% already on hand. No need for a loan.
  • St. Aloysius, Baring – Contract for demolition of church was less than anticipated. They may not need a loan.

B. Development:
CSA (Catholic Stewardship Appeal): Mr. Seifert reported CSA goal for 2023 is $1.1 million. We are currently at 98% of the goal and have collected 97% of the pledges. This is the last year for the appeal.

Collections: Mr. Seifert reported that, beginning July 1, all parishes take up only three collections: Christmas, Easter and July Missions Collection. The Christmas collection is an assessed collection. The national collections will continue, but parishes will contribute to them from their tithe.

C. Finance: Deacon Braddock presented the financial reports for period end March 31, 2023 for the Diocese of Jefferson City. A copy is part of these minutes:

  • Statement of Financial Position
  • Statement of Net Assets
  • Statement of Activities
  • Statement of Activities by Departments
  • Budget Report

Discussion followed.

Financial Statements other entities: Financial reports for My Community Our Mission (MCOM), Diocesan Excellence in Education Fund (DEEF), Priest Mutual Benefit Society (PMBS) and the Catholic Diocese of Jefferson City Fund were distributed prior to the meeting and are part of these minutes. Discussion followed.

IX. COMMITTEE REPORTS
A. Audit Sub-Committee: no report
B. Policy & Procedures Sub-Committee: Mr. Braddock reported that the Finance Manual would not be presented at the deanery level. Instead, each section of the manual will be presented remotely with two chances to watch each week. The sessions will also be recorded.

X. PROPOSED FUNDRAISING POLICY
Mr. Roodhouse distributed an updated draft of Instruction on Transparency in Fundraising to all council members. He met with several groups that could be effected by the policy. More meetings planned. Target date of July 1, 2023 for the promulgation of the policy, with a 6-month implementation period.

ACTION: Members were asked to review the policy and reach out to Mr. Roodhouse with any questions.

XI. OTHER BUSINESS

A. USCCB financial reporting requirement
Signatures were obtained during the meeting from all members present.

B. Chief Financial Officer national search
Mrs. Hertfelder offered an update on the status of the search.

C. Finance Council Statutes
Mr. Roodhouse distributed draft statutes. ACTION: Members were asked to review the document and present questions at the next meeting.

D. Rental Rates
Mr. Braddock led discussion.
MOTION: Mr. Hackman motioned to recommend to the Bishop that following rates be put into effect for the following buildings:

  • Diocese of Jefferson City Catholic Center: increase annual rental rate to $480,000.
  • Bishop’s Residence: Increase annual rental rate to $180,000.

Mr. Anderson provided the second. Motion approved unanimously.

E. Land Acquisition:
Bishop McKnight notified the council that the diocese is looking to acquire 28-30 acres of land at $5-10k per acre in the Centralia area. This land, or part of this land, could then be given to the parish in Centralia for a new parish campus. Historically, the diocese has donated land to parishes for such projects.

CONSULTITIVE VOTE: Council Members unanimously agreed that the Bishop could authorize the purchase of 20 to 30 acres of land in the Centralia area for a potential new parish campus for up to $450,000.

XII. EXECUTIVE SESSION

XIII. DATE AND TIME OF NEXT MEETING
Thursday, August 17, 2023 at 11 am at the Catholic Center

XIV. ADJORNMENT
Mike Kelly adjourned the meeting.

Respectfully submitted,
Kathy Smith
Recording Secretary