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THE DIOCESE OF NEWARK
Present: The Rt. Rev. John P. Croneberger; President; Mr. John Zinn, Treasurer; Mr. Michael Francaviglia, Secretary; Diane Sammons, Esq., Chancellor. Elected by Districts: Mr. Steven Boston, The Rev. Christopher Brdlik, Ms. Faith Gideon Brown, The Rev. Lu-Anne Conner, The Rev. David Gable, Ms. Lois Gray, Mr. Robert Harwood, The Rev. George Kaswarra, Ms. Susan Kynor, The Rev. Paul Olsson, Mr. Andrew Piccirillo, Ms. Mary Sunden, Ms. Patty Watts, The Rev. Fain Webb. Bishop's Appointments: Mr. Sidney King, The Rev. Gray Lesesne, The Rev. Prince Singh. Absent: The Rev. Janet Broderick, Ms. Glenda deKruif, The Rt. Rev. Carol J. Gallagher, Mr. Henry Faulkner, The Rev. Mariano Gargiulo, The Rev. Kathryn King, The Rev. William Potter, Ms. Carol Taylor Staff: Canon R. Carter Echols; Ms. Kai Alston and Ms. Kitty Kawecki; Ms. Lyn Headley-Deavours (for the working group time) Others: The Rev. Dr. Allison Moore, Ms. Martha Gardner and Ms. Laura Russell, chair and members of the ACTS/VIM Board, respectively, for the Outreach Working Group time. COUNCIL WORKING GROUP MEETINGS The working groups met separately for Bible study (Mark 10:17-27) and discussions. During this time, each group took time to review the copy of St. Mary's New Life Ministries, A Proposal for Companionship in Mission for District 10. The effort would provide the opportunity for the churches to do together what none could do alone. The purpose was to create opportunties for the members of the congregations to engage in ministries through sharing time, talent and treasure in a particular mission field. The proposal was scheduled for adoption by District 10 on October 16. The proposal would then be introduced back to Council in November for a vote to adopt the mission companionship in principle before going before the Trustees later in the year. The meeting was opened at 8:00 p.m. with prayer by the Rev. Chris Brdlik. AGENDA The agenda was adopted with several changes: an addition of a report from Incarnation, Jersey, and the deletions of the Self-Assessment Policy vote and the report from the Outreach Working Group on the outreach process. MINUTES Motion: It was moved and seconded to accept the minutes for the meeting of September 13, 2006 with corrections that Mr. Robert Harwood was absent; that the Rev. George Kaswarra was in attendance for part of the meeting before leaving for an emergency at the church; and on page 4 the line in the fourth paragraph should read: Adjustments to the expenses in the budget could be made so as not to limit as much as possible the options available to the next bishop. (Added text underlined.) The motion was adopted. EPISCOPAL COMMUNICATIONS Bishop Croneberger's comments included: . 110 clergy attended the annual clergy conference held on October 9-11. The Rev. Dr. Kathy Grieb was the keynoter who combined a blend of humor and intellect and provided a way to understand framing scripture within the Anglican communion. Appreciated the opportunity for dialogue and discussion as part of the good-bye process. The conference provided time for clergy collegiality. . Bishop-elect Mark Beckwith visited Episcopal House recently and met with the bishops and senior staff. . Recently two clergy from Panama, the Rev. Glenda McQueen and the Rev. James Searles, visited the diocese and met with members of the Companion Diocese Committee and Canon Echols. . A status report on a Title IV procedure being managed in the Diocese of Florida pertaining to the Rev. Gordon Tremaine, a former priest in the diocese of Newark. TREASURER'S REPORT Mr. John Zinn, Treasurer, presented the report with recommendations to address the projected deficit for 2005 and the open receivables from 2003 and 2004. These matters were initially presented at the September meeting. For 2005, an evaluation had been made of the 2005 pledges that were still outstanding. Based on that evaluation it was determined that a total of $50,700 would not be collected and should be written off. This would leave a balance of just over $83,000. Each of the churches in the latter category had been contacted and the leadership had confirmed either orally or in writing that the balance would be paid. It was not impossible, of course that their situation could change. Since the diocese gives 25% of actual pledge and investment income to the National Church there would also be a reduction in the 2005 giving to the National Church. Once this and some other items were included, the Diocesan Council had an operating deficit of $43,200. The deficit could be higher if the $83,000 mentioned above was not collected. It could also be lower if some of the pledge amounts to be written off were collected. It was recommended that the deficit should be funded from the Council's endowment. For years 2003 and 2004, a review of open items from 2003 and 2004 determined that the following receivables should be written off: Pledges Receivable $8,787 Miscellaneous Receivables 23,655 Total $32,442 Accounts Payable Review - A review of accounts payable determined that there were $11,380 in payables that should be written off. While the write off of receivables reduces income and assets, the write off of payables would reduce expenses and liabilities. As a result the $32,442 in receivable write off was offset by the $11,380 write offs in payables. This meant that there was an additional deficit of $21,062. This would be recorded as part of the 2005 deficit as the prior years have been audited and closed out. This would increase the total 2005 deficit to just over $64,000. The goal was to be conservative and to err on the side of writing off anything that was doubtful. At the same time efforts to collect these receivables would continue. There remained another $53,000 in receivables from prior years that were believed to be collectable. Should that not happen, these amounts woud be written off in future years. 0Other than the qualifications about receivables still outstanding these actions were anticipated to clean up the Council financial statements as of December 31, 2005. The total deficit of $64,000 should be funded from the Council's endowment. This would restore the cash loss caused by the deficit and enable the Council's finances to function more smoothly in the future. Diocesan Council Endowment Fund One of the major long term problems with deficits was a negative impact on an organization's cash flow. The deficit effectively reflects cash that was paid out in excess of what was received. If the deficit was not funded then some of the next year's cash had to be used to cover the unfunded expenses. This could have a very detrimental cumulative effect - the organization was paying prior year's expenses with current year's income. Use of the endowment principal lowered future investment income, but in situations like this was necessary to avoid ongoing problems. The value of the Diocesan Council's endowment fund was just under $2.2 million. Motion: Resolved, that $64,342 in principal be taken from the Diocesan Council's endowment in order to fund the 2005 operating deficit. The motion was adopted. Budget Reductions The latest projection for 2006 of income and expense indicated a deficit of $32,700. The changes recommended to the budget would reduce that deficit to $12,400. That amount was well within the 1% range that was impossible to predict in any budget. As a result no further cuts would be recommended at this time. The Department of Missions debt service line currently funded the debt on St. Thomas' Church in Vernon, internal debt held by the Episcopal Capital Loan Fund. This change would mean paying interest only from the budget in 2006. However, one-half of the annual principal payment ($4,500) would be paid from the balance in a reserve fund for this purpose. Historically the diocesan budget funding was paid to the church which in turn made monthly payments into a reserve account at the diocese. Loan payments were then charged to that account. Over the years a surplus of just over $4,500 has accumulated in that account. This action would allow some principal payments in 2006 while still helping the diocesan budget. It was noted that it was hoped that the proceeds of future property sales would be used to repay the remaining balance on this loan. The proposed reduction in the Debt Service line would defer for one year, principal payments on a loan that was at a zero rate of interest. As a result, the deferral woud not increase interest costs in this or any subsequent year. Motion: Resolved, that the spending in the following budget lines be reduced as outlined in this resolution: . Line 7 Department of Missions' debt service - Reduce from $23,000 to $14,000. . Line 24 Ward J. Herbert Fund - Eliminate 2006 proposed spending of $5,000. . Line 42 Debt Service - Reduce from $20,400 to $16,600. . Line 57 Districts - Reduce from $6,000 to $2,500 The motion was adopted. Medical Insurance Coverage Mr. John Zinn reported that the Medical Trust now described eligible dependents in three categories (one about spouse/partner and two about children). One of them covering children read "children....younger than 30 years of age; unmarried; without his or her own dependents; living at home with the parent(s) or enrolled as a full-time student; and not covered under another group health plan or receiving Social Security benefits." Previously, implicit in the plans had been the age of 22. In January of 2006, a state law was passed in New Jersey to permit dependent children to stay on their parents health insurance until the age of 30. The law required this option for fully funded plans. It was the understanding that the Medical Trust was self funded, and the law might not apply. The Medical Trust was researching whether under the law the coverage was required or if it was a choice on the part of the diocese to offer. This will have an impact on the congregations. If not legally obligated to provide the coverage up to age 30, then the decision to offer it belonged to the Council; that is either to change the age of dependent children or establishing the age of dependent children. With the enrollment date approaching, a decision by the Council will be needed earlier than next month's meeting and will be taken by an e-mail vote. SEXUAL MISCONDUCT PREVENTION/CHILD ABUSE AWARENESS EDUCATION The Rev. Lu-Anne Conner, convener of the Discipleship working group, presented the proposed education and training requirements to be part of "The Diocese of Newark-Making Church a Safe Place - Screening, Background Checks and Training Policy." This included education and training, as well as a Code of Conduct. The proposal was offered for review by the Council. A vote would be requested in November. Ms. Kitty Kawecki reported that the General Convention of 2003 mandated all dioceses to develop and adopt policies for the protection of children and youth from abuse that address specific principles and guidelines (B008). When compared with the efforts of other dioceses, Newark was lagging behind. Ms. Susan Kynor noted that the diocese published in 2000 the "Manual of Policies and Procedures for the Care and Protection of Children" and inquired about its incorporation to educate churches about the issues involved. (Correction to minutes.) Education and Training The proposed policy stated that the following Education and Training was required for all diocesan personnel, including lay employees and volunteers who regularly work with or around children and youth and employees and volunteers who chaperone diocesan youth events. It is highly recommended for all church personnel, including lay employees and volunteers who regularly work with and around children and youth. * 1. At least three hours of child abuse prevention education and training within the first month of service or prior to attendance at youth events. 2. These training requirements may be satisfied with participation in Safeguarding God's Children or participation in a similar program with participant able to demonstrate, by certificate of completion, that they received training equivalent to Safeguarding God's Children. A copy of certificate should be placed in the person's personnel file, and updated as necessary as specified in #5 below. 3. Will receive a copy of Policies for the Protection of Children and Youth from Abuse (The Church Pension Group developed in partnership with The Nathan Network) from their immediate supervisor. 4. Will read and initial the Code of Conduct for the Protection of Children and Youth. One copy will be kept by the individual and the original will be placed in the person's personnel file. 5. Must have their training renewed every five (5) years. The following Education and Training is required for all diocesan personnel, lay employees and volunteers who are in roles of authority but may not work with or around children and youth and is highly recommended for all church personnel, including lay employees and volunteers who are in roles of authority but may not work with or around children and youth. 1. At least three hours of sexual misconduct prevention education and training within the first month of service. 2. These training requirements may be satisfied with participation in the diocesan sponsored Sexual Misconduct Prevention training or participation in a similar program with participant able to demonstrate, by certificate of completion, that they received training equivalent to the diocesan program. A copy of certificate should be placed in the person's personnel file, and updated as necessary. 3. Must have their training renewed every five (5) years. *Those who work or volunteer four (4) or more times a year. Code of Conduct For The Protection of Children and Youth This was a document that would be executed by all participants to signify their agreement to comply with each statement. . I agree to do my best to prevent abuse and neglect among children and youth involved in church activities and services. . I agree not to physically, sexually or emotionally abuse or neglect a child or youth. . I agree to comply with the policies for GENERAL CONDUCT FOR THE PROTECTION OF CHILDREN AND YOUTH defined in the Policies for the Protection of Children and Youth from Abuse. . I agree to comply with the GUIDELINES FOR APPROPRIATE AFFECTION with children and youth. . In the event that I observe any inappropriate behaviors or possible policy violations with children and youth, I agree to immediately report my observations. . I acknowledge my obligation and responsibility to protect children and youth and agree to report known or suspected abuse of children or youth to appropriate church leaders and state authorities in accordance with the POLICIES FOR THE PROTECTION OF CHILDREN AND YOUTH FROM ABUSE. . I understand that the church will not tolerate abuse of children and youth and I agree to comply in spirit and in action with this position. INCARNATION, JERSEY CITY Canon Carter Echols introduced the correspondence from the Rev. Joseph Harmon, Priest-in-charge, Incarnation, Jersey City describing the decision by the church to authorize an accounting firm to perform a review of operating procedures and systems instead of a traditional or standard audit. The letter was in response to Council's general concerns about financial accounting and the requirement for an audit as part of the release of Jersey City funds. The operational review was a step being taken prior to a standard audit, because the effectiveness of the systems will be determined and what procedures would be need to be established to provide effective financial accounting controls. The church leadership agreed to authorize an operational review with the expectation that a standard audit would be performed next year. The Church of the Incarnation will hold in reserve the balance of funds designated by Council for the audit and apply those funds toward the standard audit in 2007. ST. GREGORY'S, PARSIPPANY STATUS REPORT Ms. Faith Gideon Brown, convener of the Congregational Vitality working group, presented the written status report from St. Gregory's in Parsippany. Last year in November 2005, the church sought permission to invest $35,000, a portion of recently acquired endowment funds, in a three-year financial plan that would enable the church to end years of deficit spending. As of June 30, 2005, St. Gregory's had $434,000 of endowment funds in the Diocesan Investment Trust (DIT). The plan called for a running reduction of the deficit over the next three years, such that the projected deficit for 2006 of $20,000 would be zero in 2009 and the church operating on a balanced budget. As part of the preparation for the withdrawal request, the leadership of St. Gregory's completed the Congregational Vitality Ministry Capacity Questions. Their responses were shared with the Council concurrent with the request for withdrawal. The responses indicated that the congregation was thinking strategically about its ministry and its future. The status report prepared by the Rev. Susan Sica, vicar, confirmed the viability of the congregation on its journey. The deficit had been reduced greatly, down to $24,000. A detailed financial report will be sent submitted later to Council. STEERING COMMITTEE REPORT Ms. Mary Sunden explained that the electronic votes taken by Council needed to be memorialized in the minutes. Votes were taken in July when Council designated the offering from the special electing convention and in September on the compensation package for the bishop-elect. Special Convention 2006 Worship Offering Designation Resolved, That the offering from the worship service at the Special Electing Convention scheduled for Saturday, September 23, 2006 be donated to the Capital Campaign of Trinity + St. Philip's Cathedral with a tithe of the offering being given to the efforts to achieve the Millennium Development Goals. An electronic vote was made in July 11-13, 2006 and approved by the Diocesan Council with sixteen affirming votes. Bishop-elect's Compensation Package On Friday, September 15, 2006, the Steering Committee requested an electronic vote on the compensation package for the new bishop with a response by September 18. The Transition Committee wished to clarify the salary, benefits and housing package which our new bishop can expect. It was Council's responsibility to approve the dollars which apply to salary and benefits. The Trustees would work directly with the new bishop regarding housing. After careful study of packages for the episcopal office in other like dioceses, members of Council were asked to approve a salary of $100,000 for the new bishop (this was $5,000 higher than the recommendation approved in December), and an additional amount in the range between $55,000 and $75,000 for self-employment tax, pension premium, medical benefits, as well as non-medical benefits (which might include, but was not limited to, such items as travel, entertainment, cell phone use, continuing education, etc.). An electronic vote was made between September 15 - 18. The recommendation was approved with a vote of 20 yes and 1 abstention. DISTRICT SHARING District 3: Ms. Lois Gray reported on the final Sunday service at All Saints' in Orange last month. The service was upbeat and well done. The congregations of All Saints' and Holy Innocents, West Orange, were merging as a combined congregation. District 10: The Rev. Prince Singh expressed the excitement within the district for the St. Mary's New Life Ministries, A Proposal for Companionship in Mission for District 10. During the summer three meetings were held at which 30+ people attended. The proposal was a way to strengthen the work of the district and the individual congregations. (The report had been part of the earlier working group discussions.) RESOLUTION OF APPRECIATION A resolution of appreciation and congratulations to the Rev. Dwight Neglia, retiring rector of St. Agnes', Little Falls, was adopted. The Council expressed its thanks for Mr. Neglia's hospitality and its best wishes on his retirement. The meeting was closed with prayer by the Rev. Prince Singh and adjourned at 9 p.m. Respectfully submitted, Michael Francaviglia, Secretary  --Return to Diocese of Newark Home PageReturn to Top of Page |