Income trends for the first six months:

• Continued online giving participation, generous gifts for special collections.
  • Three Generosity Sundays:
    • Families Moving Forward ($2,978)
    • Pro-Choice North Carolina Foundation ($2,215)
    • Life Skills Foundation ($4,236)
  • Collection for Southern Trans Youth Emergency Project from Sept. Pride service ($665, plus amount from the Minister’s Discretionary Fund = $1,000 total).
  • November Giving for Justice collection: You Can Vote ($6,182)
  • Jazz Vespers ($1,117, plus amount from Minister’s Discretionary Fund = $1,200 to 2 local non-profits, Esteemed Coffee and Color Me Country Foundation)

• Collection plate steady and on pace with last year.
• Rental income remains solid and campus use continues to grow.
• Special gift in December of $90,000 (anonymous) will be transferred to the Strategic Initiatives Fund, though it does skew the income numbers YTD at present. Additional gifts may be forthcoming this year.
• Choir Fest registration income is $1,690 so far, but this will be posted as expense in April for the event.

On the expense side, items to note:

1. Most budget lines are at or below budget. A few areas are presently over budget (staff development, advertising, IT). This year we have conducted several CPR classes and a campus safety preparedness class for staff. The cost for these classes is posted as staff development. We also opted to have radio advertising for Jazz Vespers which resulted in a larger attendance in December.

1. Information Technology: The needs for tech support continue to evolve and expand as the complexity of our systems and equipment grows with livestream, multiplatform, remote access, AV upgrades, and full staffing.

1. Insurance increase. The renewal of our general property insurance policy in December for a three-year period has increased significantly (+$5,000). This is due to rate increases in this industry and the claim for repair of the road sign earlier this year.

1. Health insurance. Costs in this area will rise in January 2024, and more than we anticipated during budget planning (+$4,000).

1. 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. Current balance: $68,730

Key Balances (as of Dec 31, 2023)

Net Operating Total YTD	$164,866 (without special gift of $90K, actual = $74,866)
General Reserve Fund	$31,525 (adjusted annually in July per policy)
Strategic Initiative Fund	$198,423 ($116,000 planned transfer for 23-24 budget)
Campus Needs Fund	$143,006
Truist Loan	$68,730
Minister’s Discretionary Fund	$35,331 ($14,282 contributed; $11,380 disbursed, this fiscal year)

 

Interpreting the numbers.

• Income trends have stabilized post-pandemic with rentals and giving patterns (pledges, collection plate and special collections).
• Note: The 2023-24 budget includes a planned transfer of $116,000 from the Strategic Initiatives Fund. This transfer occurs at the end of June, when the exact amount needed to balance the budget is known. The chart below shows the recent pattern of planned transfer vs. actual transfer.

Fiscal Year	Budget Planned Transfer	Actual Transfer	Variance
2023-24	$116,000	$100,000* (projected)	$16,000
2022-23	$135,000	$75,512	$59,488
2021-22	$180,000	$85,791	$93,209
2020-21	$130,000	$31,107	$98,893

• While the overall financial picture is quite strong, with economic uncertainty and inflation, caution is needed when making past year comparisons and future projections for long-term financial planning.

Facilities Projects

On Jan 9 a storm blew out a large window in the back of the sanctuary behind the false wall. To keep out rain/weather, a temporary repair with double layered thick plastic/tarp was implemented the day this was discovered. A claim has been filed with Church Mutual and estimates for full repair requested. There was no damage inside the sanctuary.

The large refrigerator in the Fellowship Hall was replaced this fall. Expense posted to Campus Needs Fund.

The EV stations are now operational. We are awaiting info from Duke Energy to calculate the rate for these units so the software can be set up for the payment system. Once this is fully set up, an announcement will go out to the congregation.

Summary

Financially, ERUUF is in a very strong position with multiple designated funds for specific and strategic purposes. A growing membership with ongoing pledge commitments and generosity will support the budget in the near term as a sustainable long-term financial plan is developed over the next two years. This long-term plan includes member development work, membership growth, building Foundation and reserve funds, legacy giving, possible special campaign, and more. We will be working with the Board, BFAC, Coordinating Team and key ERUUF leaders to prepare for a sustainable financial future.

Please refer questions on financial details to the Executive Minister or the Board Finance Advisory Committee.