FINANCE MEETING MINUTES

September 12, 2017

OPENING: Meeting began at 6:03 with prayer by Father Gary at 6:06pm.

PANEL: Father Gary/Pastor, Javier Bravo/Principal, Suzanne Martin/Finance Committee, Howard Birnbaum.

OBJECTIVE: To address pre-submitted finance questions for school/parish.

AGENDA: See Attached

SJPTA PRESIDENT:

  • SJPTA Signup sheets available.
  • Questions were submitted in advance so that the most current and accurate information could be given when answering questions.
  • Rules gone over.
  • Please follow up with any further questions or clarifications after the meeting with the appropriate person.
  1. GENERAL FINANCIAL QUESTIONS:
  1. Are you open to showing the community a financial report?
  • Fr. Gary - Every year we show the community a financial report,which is published by the end of October. Parish financial Council will also speak at mass – they are available for questions. The reports were placed with bulletin in 2013 but most were left laying around the pews and parking lot. Thus the following year we made copies available to whoever wanted one they could pick them up in the vestibule after masses or available in the Parish Office if requested.
  1. When will the finance committee release the 2016-2017 fiscal year financial results to the parish? Will it be at this meeting? Can it be put in the bulletin as an insert?
  • Fr. Gary –As per Diocesan Policy reports are to be made public by the end of October, By the end of October 2017 it will be out for the public.
  1. Does the plate collection match the budget projections, and are we OK? In other words, are we in the “black” with our income and expenses?
  • Fr. Gary – The church is in black.Since the downturn in 2008, we budgeted conservatively on income. Only up it a certain percentage depending on what was the general operating expense.
  1. Where in the budget have you made up for the loss of income from the festival that used to generate $30-$48,000? Was the festival profit over and above the budget?
  • Fr. Gary - Festival was always considered a regular line item/regular operating fund. The school has operated at a loss. This helped us to pay for the line items. We do not make enough in the regular school income. This year we started an Events Committee. Spreading it over several events throughout the year has worked out better for volunteers. We do not want to burn out volunteers. We have gone to hosting various events. We made half when we did just one event.
  1. Does all the money from the church and school go into one account? If so, why? If the money goes to one account, who oversees the account that is not employed by St. Jerome?
  • Fr. Gary - All money goes into 1 account. Every 3 years the account goes through internal review by the Diocese so that we are following financial guidelines. We previously had too many accounts and no oversight. Diocese mandates one account. School operates in the red so the bank account would have been in the deficit. We have a Bookkeeper employed by the church. We have a separation of roles and volunteers on finance counsel so it is not all done by one person. This helps to look at the large picture.
  • Suzanne – many branches within the account; the consolidated view is the one account. Chart of accounts is provided by the Diocese.
  1. How are the finances/income/expenses tracked and monitored? Is this information public and available at any time?
  • Fr. Gary – Everything is tracked every month and reconciled; then it is 3 weeks until we have all the documents finalized. Last Monday of the month the finance council meets. Bookkeeper is there. They ask questions to clarify reports. It is not public because the reports could be misunderstood. You can sit down with a finance council member to review and answer any questions.
  1. Who does budget planning?
  • Fr. Gary - Employees & staff. Liturgy, music, faith formation, school, church is all considered. Staff sees the everyday things we need; an outsider would not know. The requests would go through the finance council then they can ask questions. Process begins in February and takes a few months. Approved in May.
  1. How does the church help the school out financially and/or how does the school help the church?
  • Fr. Gary - Church helps the school primarily with subsidy. We will not let the school falter. We are one community. For example, the church paid $60,000for Wi-Fi. Church has supplemented the school. Not an unheard thing to do.
  1. Were there any staff reductions during the past fiscal year? Any increases in staff positions?
  • Fr. Gary – We did reduce a position at the school. Did not eliminate what they are teaching. The last thing we try to do is eliminate positions. A person’s contract was not renewed but the program is not cancelled. No increase in positions available.
  1. Were there any salary adjustments for employees? Why?
  • Fr. Gary – We are obligated to follow the scale to pay the teachers from the Diocese. This makes the playing field more level throughout all the Diocese school. Not paid the equivalent of public or charter schools.
  1. SCHOOL RELATED QUESTIONS:
  1. What is the current school enrollment?
  • Suzanne – 203 students.
  • Javier – 16 families have left because they were unable to pay delinquent tuition; higher than $2000. Diocese Policy states that students would not be allowed to re-register at any Diocesan school if they have an outstanding debt. In the past they would go to another school, not disclose delinquency, then have delinquency in 2 schools. Letters were sent to families to handle debt; some got no response
  1. Does the current enrollment income match the budgeted income?
  • Javier – No. The budget was projected at 229 students We are at 203 students. The current enrollment has more families paying tuition as compared to previous years so we are not losing money.
  1. What was the 2016-2017 tuition income?
  • Javier - $1.2 million budgeted.$1.1 million made. $212,000 in the red.
  1. How much of the tuition is covered by CEA?
  • Javier – $151,000 is covered by CEA. It could be more if all families apply. It is a goal for next year that 100% of the families apply for CEA, and then CEA will have a better picture of our school needs. Whether you will get any assistance or not, please apply.
  • Suzanne – Donations made to CEA can be stipulated that they are for St. Jerome and/or your student.
  1. Why was there an increase in tuition? Will the teachers get raises from this?
  • Javier – Increase in tuition – It still costs $7,400 to educate a student in the state of Arizona; we charge $5600.
  • Fr. Gary – Teacher raises – there are scales set by the Diocese; they are based on years of service. The teachers may not get more in take home pay, but the Diocese will increase what they pay for benefits. They offer a generous family plan. Benefits, insurance, etc. Increase every year that the parish pays for. Does not affect take home pay.
  1. What will the sports fees go to? New equipment? Transportation? Uniforms?
  • Javier – Yes, as well as paying officials. We must have a self-sustaining sports program. The money has to come from somewhere. If it doesn’t come from fees, it comes from the Operations Budget. Most schools cut from the Professional Development budget. The more taken from Operations budget, the more the school remains stagnant. How are you moving forward as a school if you continuously cut/take from the Operations Budget?
  1. Do other Catholic schools charge for sports?
  • Javier – We compared with neighboring parishes. They are also charging for Athletic Programs.
  1. Does the school help the church out financially?
  • Javier - No.
  • Suzanne – It is not “who supports who” It’s the atmosphere we want. We are one community.
  1. Who is on the St. Jerome Catholic School Board?
  • Fr. Gary - Fr.Gary, Fr Ben, Kevin Barnes, Howard Birnbaum, Paul Buddy, Janet Cunningham, Liz Diaz and Jeovanna Gonzales. On the website as well.
  1. Fry’s Community Rewards – the handout says it goes toward tuition. Is that correct? If not, where does that money go?
  • Javier – If the school assists a family with internal financial aid, the school needs to make up the loss (money given).
  • Fr. Gary – Last year we would get about $50 every 4-6 months. After we did the drive to get as many people enrolled as we could, we got an $800 check.
  1. What does the money from ECC go toward?
  • Javier – We went to having a registration fee because it needs to be a self-sustaining program. We do not want to take money from the Operations Budget. ECC pays for itself and the employees can be paid based on the minimum wage laws.
  1. What does the money paid for yearbook and yearbook ads go toward?
  • Javier – This needs to be self-sustaining program so no money is being taken from the Operations Budget.
  1. What does registration and tuition go toward?
  • Javier – Registration and Tuition go towards the Operations Budget of the school. Salaries, benefits, maintenance, teacher resources.
  • Ft. Gary – In 2013, the school did not have a line item for depreciation. We have now included that. We have to judge how old things are, when they are past their time such as the AC, doors, computer and lighting. There are formulas used to track these items so they are replaced timely.
  1. How do school fundraisers work? Do we track how much the school has earned? Does the money stay with the school or does it go into one St. Jerome account?
  • Javier – All the fundraising money goes into one account. There are restricted line items within the account if needed. For example, if student council raises money for new instruments. The school works with the Parish account. Javier has regular meetings with Father Gary and Julie (accountant).
  • Susan – Fundraisers budgeted yearly to cover when a fundraiser costs more than it makes.
  1. How do scholarships benefit the school?
  • Javier – First, they help families afford a catholic education. Second, they help the school get the full tuition amount. You can recruit friends/family to defer tax liability to your student. You can receive your student’s full tuition or a good portion. Internal Scholarships – we work with a family, establish an agreement, and if you apply and receive a scholarship you can now pay off the money we loaned you with the scholarships. St. Jerome Administration is committed to working with families. Sue from Bourgade Catholic High School will work on Tax Donations (information in newsletter). Very well structured program.
  1. How can we make sure tax credit donations go directly to the school?
  • Javier - 2 ways. First – go through CEA. Some employers will deduct from your paycheck and send it directly to CEA. Some employers will deduct from your paycheck and send it directly to CEA. Any tax liability can be sent to this school. Second, have all families apply for CEA and other scholarships so CEA knows what our need is. It is not until you apply, that you know if you can get the funds.
  • Marla Trinidad(4th Grade parent) – When is the Tax Liability Class – October 16th 6pm Library.
  • Amanda – Sign up Genius to register has been emailed out.
  1. In the parent handbook, it mentions the St. Jerome Scholarship. How is that funded?
  • Javier – We have a line item to help families that need assistance, not much of a protocol prior to Javier arriving to ST. Jerome but one is being established now. Working with other schools to get suggestions for established order. For example, No delinquent balances, must have applied for other scholarships (minimum 4), must have applied for CEA, and must be willing to contribute something to the student’s education. Must be involved, make a financial commitment, and give service back to the school.
  1. I have heard from friends they left St. Jerome School because the attitude ofpeople here is that all you care about is money. This is a school, not a business.
  • Javier - The reality is that the school is a business. School is also a parish community as well. For example, we are starting a prayer initiative. The school must operate soundly. We are good steward of the resources. Each dollar we do not receive, we lose from the Operations Budget. Teacher pay is assumed to be fine; same as public school, which is not true. Endorsements on your teaching certificate do not get you bonuses from the Diocese (unlike public school).
  • Gina Neskovic – We are at the bottom of 50 states in teacher pay, so the max here is still extremely low.
  • Javier - These teachers do it because they love the catholic education. No entitlement from any families is desired. Teachers are invested in prayer, in the school and in the students. Delinquent Tuition Policy must be followed as given by the Diocese. The student will not be permitted to register at the same school, or another catholic school within the Diocese of Phoenix until all financial obligations are met (direct from the Diocese Handbook).
  1. What’s the deal with lunches?Buying lunch is easier than packing lunch every day for my kids.
  • Javier - Parenting is challenging. It is an issue of Federal Funds and how they are awarded. Private School can receive federal funds. Title 1 and Title 2. Title 1: Because we reside with Washington School District, they serve our students here with help with reading since they would be Washington school students. The title 1 office gets the federal funds and pays the employee. No money comes to St Jerome. Title 2 Professional Development funds can be given to teachers. Teacher submits documentation to Title 2 specialist; they give funds to the teacher. No money comes to St Jerome. NSLP does not work like that – they wanted to write a check to St Jerome Church. There are strings attached: Whom are you serving, who are you not serving? If you are not serving someone, you will not get funds. Title 9 is apparent nowadays (gender issues is an example). This is an example, not a specific situation. NSLP cannot send money to the vendors directly. As we get more information, we will send it to you. Funds we received for after school program snacks were asked to be paid back for 1 year (because we should not get the funds to begin with). Luckily, they did not back track.
  • Marisa Bravo – I enjoy making my daughter lunch. School bought lunch gets thrown away a lot.
  • Javier– The feds have a right to audit the school. Students who don’t eat the full lunch means the school would get a slap on the wrist. A lot of food was wasted last year. Should we continually waste food with last year’s program? 4-5 garbage cans daily of food were being thrown away. We are now down to 1 can daily that has trash – not just food. We cannot repurpose food per federal regulations. (Gina reiterated).
  • Ms. Dunn – at least 2 garbage cans of food every day like salad, milk being thrown away. The students are eating what is being packed. Kids are now recycling.
  • Leslie Barasha – Having no lunch program has added to academic time in the classroom. Not waiting on serving food. It is much better now.
  1. Why the drastic changein ECC? Sign up in advance, different fees, and registration fees each week. It’s not like they do anything but sit around.
  • Javier - We needed a commitment from parents before offering the program. ECC has requirements because DHS overseas the program. We need files on each worker that include TB, First Aid, CPR, etc. It is not right to ask a person to pay for all these tests out of pocket and then say maybe we have a job if we have enough clientele. We needed to have an idea of how many families needed assistance. Also, ratios need to be met especially with Pre-school and Pre-K students. Right now, minimum wage laws increased the salary expense. ECC must be a self-sustaining program. ECC program ended in the red last year. Parents would always say they would pay later but kept bringing their kids. My daughter stated the following about the program and the Director, Stephen Bakunowski: He makes us read, makes us do our homework, makes us play sports, and makes us run laps. Mr. Bakunowski is a certified teacher. He communicates with teachers on the students reading skills.
  • Suzanne - What other options do we have because families did not follow the rules last year? We were forced into action.
  • Gina Neskovic – These questions are so obvious, the answers are there. Compare this to other programs.
  • Marla Trinidad – I understand it - I get it. However, I am now doubling my tuition. It is not about fairness, it is about affordability. There are no scholarships for ECC expenses.
  1. Why are the current required uniforms of substandard quality? The embroidered shirts lasted a school year. The sticker (logo) on the new shirts peel off after a few washes. They are too expensive to keep buying.
  • Javier - This decision was done prior to my arrival. We are looking into options we can offer. We have had issues with Dennis. Cost prohibitive to some families last year. Looking into something that is budget friendly for all families. Uniforms are needed for accreditation too.
  1. The new drop off and pick up system is confusing. I understand it was changed for safety of the students, but while I as in my care in the line after school waiting to get my child, another parent met their child and took my child with them too. Why was my child allowed to leave with this person? I didn’t notify anyone this parent was coming and my child didn’t know either.
  • Javier - The school acted immediately to correct this situation. Only the actual family of the student has the cards. Last year’s system did not protect the children. When we see the card, we know it is the parent or the parent gave them the card. Only other option is to sign everyone out. We have custody situations with some families. We listen to concerns and are willing to work with the system. We worked with JJ who has been volunteering for several years. He says this system is better. We know what car they get in. Not full proof. Teachers are out there with their students. Record time getting through all the students is at 3:02pm we have 4 kids left. Longest is 3:06pm. We need to know whom they are going home with. Announcements are made at the end of the day with the names of cars in line, and who students are going home with so the students and the teachers know.
  1. OTHER QUESTIONS:
  1. I heard the scouts, who have been here for years, were kicked out of St. Jerome. But I see people here in uniforms. Why?
  • Fr. Gary - The Scouting Program looks for a charting organization. Each year they have to touch base with St Jerome. They were not following up. Did not contact us back. After Christmas they just asked for paperwork to be signed. Father Gary was to review the request. There needs to be a benefit to the charting organization. They said they did no service projects. Father Gary can’t move forward because they won’t live up to their agreement. They are looking for other charting organizations. We do have Cub Scouts however information was not getting to parents. Let’s continue for this year to see how it works. They are not kicked out. Only using us as a place to be.
  • Javier - I am very scout friendly and willing to work with them.
  1. I also heard BINGO was kicked out because of a safety issue. What is the problem and will it ever come back to St. Jerome?
  • Fr. Gary - Seniors Club was on Wednesday afternoons. We started a dialogue with the community. We had safety concerns (e.g. person with a knife). We suggested hiring an armed guard or locking the doors. Suggested a few other dates to use without questions. They chose to leave because they did not take any of the options. Father Gary erred on the side of safety. New renovation was focused on safety – lighting, fencing, speakers, one button to lock all doors – we wanted to create a safe environment.
  1. Why did you get rid of the every Friday food trucks?
  • Javier - We did not get rid of the concept. Coordination takes a lot of time. Food Truck owners decide how much they want to give to the school. Is it worth the time? Kickback was really low last year. It has got to be worth the time to put in it to make it happen. Looking into beneficial options for the school.
  1. What is the best way to find out information? Who do I go to if I have a question? Is the information on-line?
  • Fr. Gary - We have a website being updated daily. We have a calendar. Newsletter, bulletin, contact info all online. Questions can be answered via email. Javier and Father Gary are open to appointments. We are trying to create one community. We do not want to be ‘us’ versus ‘they’…rather “WE”
  1. ADDITIONAL COMMENTS:
  • Howard Birnbaum – don’t depend on the rumor mill. Go to Javier and Father Gary with your questions.
  • Javier - I value your time; I want to give you our full attention. I also need to be in the classroom and other places. Please contact Amanda Kolden at to request an appointment.
  1. NEXT MEETING: N/A
  2. ADJOURNMENT: The meeting was adjourned at 7:35 pm with closing prayer by Fr. Gary.

Submitted by: Shannon Monge & Maricela Mata.