Finance Summary for 2Q Fiscal Year 2021-22
Overview:
Summary: 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. This year, even though total pledge amounts are lower than two or three years ago, steady contributions overall remain solid. After 6 months, pledge income is 64% of total pledged (see yearly comparison chart below).
Income trends for the first six months:
Continued online giving participation, generous gifts for special collections
Three Generosity Sundays (total: $6,947)
Afghan Refugee Family Support (over $32,000)
Minister’s discretionary fund (this fiscal year: $13,716; current total balance: $25,295)
Rental income remains lower than expected, since COVID campus restrictions have been in place for most of the first six months of the fiscal year. However, there are several large bookings for the spring/summer (Board of Elections, Girls Rock) and 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 ($57,000).
- Most budget lines are at or below budget. The one exception is facilities supplies. We completed a number of additional projects with the campus closed, and also purchased additional equipment for safety and to meet the growing need for multiplatform meetings.
- Loan for AV to help extend Strategic Initiatives Fund.
Amount of Loan: $114K. Term: 5 years, 3.2%. Monthly payment: $2,060.
This is listed as a liability on the Balance Sheet with only the interest expense posting to the monthly Revenue/Expense report.
Key Balances (as of Dec 31, 2021)
|
Net Operating Total YTD |
$82,389 |
|
General Reserve Fund |
$26,798 |
|
Strategic Initiative Fund |
$344,251 ($180K committed to 2020-21 budget) |
|
Campus Needs Fund |
$259,2526 ($59,526 in fund + $200,000 in Self Help CDs) |
Interpreting the numbers.
- Giving patterns seem to be stable despite ongoing uncertainties with COVID.
- Note: The 2021-22 budget includes a planned transfer of $180,000 from the Strategic Initiatives Fund. Due mainly to personnel dynamics (unfilled Music Director position, no need so far for nursery care, etc.) and lower expenses with campus mostly closed, projections indicate that only 50% of this transfer may actually be needed this year.
- We will transfer at the end of June, when the exact amount needed to balance the budget is known. Reminder: last fiscal year, we only needed $31,000 out of a planned transfer of $130,000.
- While the overall financial picture is solid, it is important to note that COVID did impact the total pledge amount for the past two fiscal years. This continues to create a cloud of uncertainty around long term financial planning which requires caution when making past year comparisons and future projections.
Campus and COVID. The policy and space use guidelines continue to be updated to meet changing conditions. The campus is closed this month, but outdoor meetings are available and supported in the colder months with the addition of several outdoor heaters. The campus did open for meetings, classes, and worship for about two months in late fall. While the office remains closed, staff are available by appointment, work on campus several days a week, and continue to work remotely as well. Livestream worship with the new AV equipment is going well and we look forward to the day when we can all be together in person safely.
Pease refer questions on financial details to the Director of Administration or the Board Finance Advisory Committee.
(document by Daniel Trollinger, Director of Administration)
