Attendance: John Burnham, Rev. Amy Bowden Freedman, Dave Banister, Marsha Francis, Millie Jensen, Coles Mallory, Lissa Fernandez, Eleanor Elmer, David Pedrick, Anna Smith, Barbara Nowicki, Barbara Russell-Willett, Holly Grosvenor, Linda Beall, Rachel Balaban, Chris Ariel

Clerk's Report: The clerk's report was accepted with one amendment. The language in the New Management Committee Chair report was clarified.

Meeting Overview: John brought the board up to date on events that have transpired over the past week. John, Chris, Coles, and Mary Alice met with the attorney to discuss the pros and cons of moving forward with legal action. The decision was made to delay legal action until at least Monday, so that the congregation could be informed of our situation. There was consensus on the board that an appropriate course of action had been taken.

Cash Flow: Dave Banister reported that new checking and money market accounts have been opened. Between the old account and our new account there is approximately $6,000. Some church members have offered to prepay their pledges to help improve our cash flow. An interest free loan of $30,000 has also been offered.

Temporary Fiscal Procedures: Coles outlined six temporary fiscal procedures that should be adopted by the Governing Board. A seventh procedure was added at the recommendation of Chris Ariel. Coles moved that, "the temporary fiscal procedures be adopted as amended." Rachel seconded the motion. The motion passed.

Authorization of Brokerage Account: Coles moved that, "the president and treasurer have signature authority over all accounts in the church's name and that they also have the authority to sell, transfer, deposit to and otherwise manage any gifts of stock received by the church." Eleanor seconded the motion. The motion passed.

Dishonesty Insurance Update: Chris will be filing a claim with our insurance company.

Employment of an Outside CPA: The benefit of hiring a CPA with forensic experience was discussed. There is a need to reconstruct the fiscal affairs of the church. There is also a need to verify financial information that is presented and assure church members that we are on solid ground. Coles moved that, "the officers of the church be authorized to hire an accountant with forensic experience to reconstruct the church's financial records." The motion was seconded by Holly. The motion passed.

Letter to Members: If all money and all financial records are not returned by close of business on Friday, a letter will be mailed to all church members informing them of the serious financial issue facing the church. Various church members will be called on Saturday to determine if their letter was received. A congregational meeting will be held on Monday, September 12, 2005 in the sanctuary at 7 p.m.

New Lock: The lock to the church office inner door will be changed as soon as possible.

The meeting adjourned at 9:55.

Lissa Fernandez

Clerk

Temporary Fiscal Procedures

1. All funds received by Channing will be deposited in the new account.

2. If Channing needs funds to clear a legitimate check previously written on the old account, the Treasurer will transfer that specific amount from the new account to the old account.

3. All deposits will be made by the Pledge Secretary or an individual designated by her.

4. As they are received in the church office, the Treasurer will make copies of all statements from any financial institution for the President, the Chair of the Management Committee, and a file maintained in the office. The President and the Chair of the Management Committee will have a username and password for an online account so they can view the account at any time and print our ledger statements.

5. The Treasurer will submit monthly to the Board both an income/expense statement for the FY 05/06 budget year, and a current balance sheet. The balance sheet will include the specific accounts in which the funds are held. Because accurate financial data does not now exist, the balance sheet will be the Treasurer's best approximation of Channing's fiscal status. As additional accurate data is found, the Treasurer will, each month, list the reasons for changes in "Accumulated Reserves".

6.  Any available funds in the Arthur Barrows Steeple Fund and the Margit Baum Fund will be transferred to the Endowment Fund where these funds will be kept in separate accounts. In addition to approval of the Endowment Fund Committee, any investments or expenditures of these two funds will require concurrence of an individual appointed by the Board. Initially this individual shall be Ruth Jernigan in the case of the Margit Baum Fund and Betsy Leerssen in the case of the Arthur Barrows Steeple Fund.

7. The Sunday loose collection will be counted and recorded by two individuals, one of whom will be the Pledge Secretary or her designate.