Rev__Exp_Board_-_March_2023.pdf
ERUUF Finance Update (3Q Report, 2022-23)
Expenses are at or below budget in most areas. There are some additional garden expenses as the campus is being prepped for spring/summer. Installation expenses fall under the category of administrative expenses, which is then trending over budget.
The last three months of the year tend to see the most expense activity as programs finish out the year. Depending on contributions income, projections indicate that we will need less than $100,000 of the proposed transfer of $135,000. This is due in part to some unfilled part time positions, lower expenses in some areas, and a strong uptick in income (pledge, collection plate, rentals).
Note: The Board Rev/Exp report has been expanded to show some of the income line detail that was collapsed in broader categories in previous reports. These adjustments are a work in progress to make the reports more readable at a glance. There are two special contribution gifts so far this year; a) $10,000 directed to the Strategic Initiatives Fund, and b) $20,000 that was directed towards a staff bonus as a partial step to offset inflation.
The “Other Income” line is still a broad category that includes rentals, cell tower, interest, and the planned reserve transfer. Any transfer amount needed would only post at the very end of the fiscal year to balance the budget, not month to month. While it can be a bit confusing, it all occurs in context of what is expected. In addition, the March net operating total YTD surplus of $35,358 will continue to diminish over the next few months.
Key Balances (as of March 31, 2023)
Net Operating Total YTD |
$35,358 |
General Reserve Fund |
$30,868 |
Strategic Initiative Fund |
$264,392 ($135K committed to 2022-23 budget) |
Campus Needs Fund |
$223,922 ($23,922 in fund + $200,000 in Self Help CDs) |
Truist Loan |
$85,368 |
Minister’s Discretionary Fund |
$34,319 |
2023-24 Budget Process
The pledge drive is in the reminder call phase. Even though we are still awaiting additional pledges, we can confidently project 348 pledge units for a total of $827,000.
The congregation stepped up in a generous way to support the vision and mission of the Fellowship.
Many thanks to Co-Chairs Bob Brown and Mary Etta Goes (plus the thank you and reminder teams) for making this pledge drive a huge success!
Almost 1/3 of all pledges reflect an increase, plus there are 37 new pledges as of April 17, 2023. While we expect additional pledges to come in, we have confidence in the projected figure on which the budget is based.
As the budget has relied on draws from reserve funds in the past few years, a projection for the Strategic Initiatives Fund is listed below. There will be sufficient funds to support the budget in the near term as a sustainable long-term financial plan is developed over the next program year. This long-term plan includes member development work, continuing to grow membership, building Foundation and reserve funds, legacy giving, special campaigns, and more. We will be working with a financial planning consultant and key ERUUF leaders to prepare for a sustainable financial future.
Strategic Initiatives Fund |
Projected Use ($K) |
Running Balance 2023 $264.4K |
|
2022-23 loan payment |
-$25 |
$239.40 |
|
2022-23 budget |
-$100 |
$139.40 |
|
2023-24 loan payment |
-$25 |
$114.40 |
|
2023-24 budget |
-$105 |
$9.40 |
|
*Projected income added to fund in FY 2023-24 |
+$122 |
$131.40 |
|
2024-25 loan payment |
-$25 |
$106.40 |
|
2024-25 budget |
-$100 |
$6.40 |
The chart shows the two main strategic uses of the fund planned for the next few years:
paying off the loan for the AV upgrade and supporting a growth budget.
* Contributions have continued to flow into the fund (small and large) since its inception in 2018. There is a large gift coming into the fund in January 2024.
Also, additional funds are expected from Foundation reimbursements (May 2023), a tax reimbursement, and Treasury Bill interest (July 2023).
(document by Daniel Trollinger, Executive Minister)