Showing posts with label cash management. Show all posts
Showing posts with label cash management. Show all posts

Monday, August 26, 2019

Financial Reporting and Cash Management Problems at Grace Episcopal Alexandria

I’ve written on this topic before, including the fact that the $500,000 loan from the parish to Bob Malm was recorded off the books for many years.

Here, in bulleted format, are some of the other problems with cash management and financial reporting during Bob Malm’s 30-year reign.

Before you join the church, make a pledge of financial support, serve on the vestry, or revise your will, it behooves you to ensure that these issues have been addressed to your satisfaction.








Saturday, January 5, 2019

Bob Malm Allegedly Ignored Bank Complaints that Church Deposits Were Repeatedly Off

Almost 200K a year in compensation and he can’t be bothered to find out why? And why were several thousand dollars’ worth of undeposited cash and stale checks found in a former parish administrator’s office when she left? Why was this not detected before she left? Why after almost 30 years as rector does the church STILL not have the finance manual required by church canons? Why did Bob Malm not realize for many months that Richard Newman was overpaid? Why were church financial reports facially off for many months?

Why?


Monday, December 3, 2018

Speaking of Money....

As you consider pledging this fall, here are a few questions you might ask:
  1. Why, when a previous parish administrator left, was more than $1,000 in loose cash found in her office, as well as numerous stale checks?
  2. Why were these issues not detected in advance of her departure?
  3. What safeguards have been implemented so that this cannot happen again? “I trust Beth,” is NOT a safeguard, by the way.
  4. Why does the parish not have a finance manual as required by canon law, even after 28 years of Bob Malm?
  5. What do the answers to these questions tell me about the parish? About Bob Malm’s job performance? About the vestry? About respect for people and resources?
Last but not least, if you cannot get straight answers to these questions, or feel safe asking them, my advice is to cut your losses. Don’t pledge until you get answers to these questions.

Wednesday, July 25, 2018

Churches and Liquidity Targets

Speaking of St. Dysfunction  Grace Episcopal and its governance/financial management, there’s a good article on churches and liquidity targets at: https://www.agfinancial.org/blog/cash-reserves-how-much-does-your-ministry-need/

Before you ask, the site is affiliated with the Assemblies of God. Given The Episcopal Church’s long history, and Bob Malm’s more than 40 years of “ministry,” it’s surely a sad day when Grace Church vestry members in most cases don’t even know what a liquidity target is, but our sisters and brothers in the Assemblies of God do.

And, as I have stated on here before, Bob Malm does the church and its vestry a grave disservice when he tells folks that “funds held for others,” otherwise known as restricted funds, can be repurposed to cover shortfalls. Unless the original solicitation clearly stated that the funds could be used for purposes other than that for which they were solicited, to do so without donor approval is illegal. Of course, given Grace’s dysfunctional record keeping, in most cases that’s going to be problematic, because there is no system under which the church tracks its restricted solicitations and restricted donations.

Moreover, at a time when the church is paying for lavish farewell parties and 100K bonuses for Bob, historically it hasn’t set aside 10 percent of its revenue for purposes of maintaining liquidity by building savings. It hasn’t set aside five percent. It hasn’t even set aside 1 percent. 

Historically, the church has set aside one-half of 1 percent in savings, or $5,000 a year, out of a budget of almost $1 million.

As a result, the church now is proposing spending what will likely total more than $60,000 in interest to borrow the funds needed to keep the HVAC on in the building.

And that is the very definition of “dysfunction.”