Finance Summary for 2Q Fiscal Year 2020-21
Overview: As a reminder, the income cycle of a church is cyclical and seasonal. In the past, to reach the end of the year on budget, it was expected that more than 50% of the pledge income would be received in the first six months. Despite a slow start in July/Aug, steady contributions overall remain solid. After 6 months, pledge income is about 66% of total pledged (see yearly comparison chart below). This is due to a significant number of early pledge completions that came forward in response to giving messages in May/June. As of Dec 31, 56 pledges are completed for the year.
Income trends for the first six months:
More online giving participation, more recurring gifts, more 1 time gifts to help
Example: support for Five special collections
UUSC, East Durham Community Partners, UU Vote (total: $3,717)
Urban Ministries $15,271
Minister’s discretionary fund (this fiscal year: $10,155; current balance: $19,205)
Rental income remains low as expected. Family Preschool is in session with strong COVID protocols.
On the expense side, items to note:
- Personnel: Due to COVID, staff transitions (RE Assistant), and program/staff transition (Music), personnel expenses are significantly below budget for the first six months ($30,000).
- Most budget lines are at or below budget due. The one exception is IT support. Increase levels of equipment and technical consult are necessary to support remote work and worship.
- The planned reserve transfer into the Campus Needs Fund ($2,500) has been completed.
Net operating total YTD: $83,200 *
*Interpreting the numbers.
- Giving patterns seem to be stable despite ongoing uncertainties with COVID, politics, and economy.
- Note: There is a variance of the YTD net between this year and last ($27,867). The 2020-21 budget includes a planned transfer of $130,000 from the Strategic Initiatives Fund. We will likely not transfer until May, when it becomes clear that funds are needed. It is probable that only a portion of the strategic transfer will be needed to balance the budget.
- While the overall financial picture is solid, it is important to note that COVID did impact the total pledge amount for this fiscal year. This continues to create a cloud of uncertainty around financial planning which requires caution when making past year comparisons and future projections.
Key Balances (as of Dec 31, 2020)
|
Total Cash in BB&T |
$599,876 |
|
General Reserve Fund |
$29,033 |
|
Strategic Initiative Fund |
$389,855 ($130K committed to 2020-21 budget) |
|
Campus Needs Fund** |
$371,361 (last challenge gift recently received) |
|
Solar Campaign Fund** |
$0 (The solar project is complete and the panels are working.) |
**Note: Due to posting depreciation of several large projects in the past year (solar/metal roof, AV upgrade) there will a variance going forward between some figures on the balance sheet and actual balance for certain funds (like Campus Needs and Solar Campaign). The correct figures are listed in this report above
Reserve Funds: There are now fewer funds due to clean-up/consolidation of funds.
A temporary fund was established for the special Urban Ministries collection.
Facilities Reserve Study: Giles-Flythe gave overview presentation to the Board in October. A presentation to the congregation is planned for January. While the studies are objective, there are significant implications for future budgeting and infrastructure funding.
Campus and COVID. The policy and guidelines are working well. The campus buildings remain closed.
- Announcements and updates are posted regularly on the web site.
- New signage is in place around campus.
- In response to the even greater pandemic impact in the community, remote work and worship are planned for the next month or so. Only a few staff are coming to campus weekly to conduct essential ERUUF business, monitor buildings, etc.
Please refer questions on financial details to the Director of Administration or the Board Finance Advisory Committee.
(document by Daniel Trollinger, Director of Administration)
