4Q Finance Update

This past year has been a time of growth transition for the Fellowship:

• Coming out of the pandemic and reopening in phases
• Launching a new ministry with a new Lead Minister and new staffing plan
• Developing a strategic plan
• Celebrating a successful pledge drive that yielded the highest pledge total to date for ERUUF.

Financially, giving remains very stable on a monthly and annual basis. In addition, ERUUF is in a very strong position with multiple designated funds for specific and strategic purposes. Overall, this has been a good year in finances for the Fellowship. Continued generosity will 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.

Highlights for FY 2022-23:

• Rental income was very robust with the campus reopening ($74,664 for the year).
• Most budget lines are at or slightly above budget. This is a sign of growth and the return of program activity, full staffing, and engaged participation. Examples:
  1. Janitorial higher due to increased campus use.
  2. RE is higher to support Coming of Age and OWL training.
  3. IT is higher as our tech needs continue to grow as our systems become more complex.

• Reminder: The loan to help extend the Strategic Initiatives Fund is listed as a liability on the Balance Sheet with only the interest expense posting to the Revenue/Expense report.
• The Board Rev/Exp report shows a large variance in Other Income. This is simply a by-product of having the planned reserve transfer included in the Rev/Exp to balance the budget. The planned reserve transfer only occurs at the end of the fiscal year to cover the final YTD net -$75,512.
• Generous gifts for special collections:
  • Minister’s discretionary fund (this fiscal year: $14,123; current total balance: $33,429)
  • November collection: Durham Community Land Trust ($6,670)
  • Jazz Vespers (Kidznotes, $816)
  • Generosity Sunday: $15,463 (total for the year)

June 2023	Durham Crisis Response Center	$ 2,590.00
April 2023	Senior PharmAssist	$ 2,152.00
February 2023	Trees Durham	$ 3,695.00
Dec 2022	Bike Durham	$ 1,655.46.
October 2022	The Black Farmers' Market	$ 2,625.00
August 2022	LBGTQ Center of Durham	$ 2,746.00

Key Balances (as of June 2023)

Net Operating Total YTD	$-75,512
General Reserve Fund	$26,798
Strategic Initiative Fund	$274,392 ($75,512 needed to balance budget which leaves $198,880)
Campus Needs Fund	$199,868
Truist Loan	$79,869
Minister’s Discretionary Fund	$33,429

Inside the Numbers

We will need to transfer $75,512 from the Strategic Initiative Fund to balance the budget (versus $135,000 planned transfer). This is less than the projection presented at the annual meeting in May. The variance is mainly due to income from rental, collection plate, and pledge gifts.

Later in 2023, it will be possible to provide an accurate and revised reserve fund use projection. Right now, the anticipated interest income ($13,000) from the Treasury Bill investment (one year note, 2.75%) will be posted in July. The plan is to reinvest the same amount plus the interest in another 1-year Treasury Bill at a higher rate which could yield over $20,000 for next year. The Treasury Bills are secured and will generate more interest than any of the options available at this time that meet ERUUF policy guidelines.

The upcoming 2023-24 budget includes a planned transfer of $116,000. The Strategic Initiatives Fund balance is effectively $198,880 after balancing FY 22-23.

Technical note: While the overall financial picture is solid, it is important to note that a change in the way special gifts are recorded does create a slight distortion in the total revenue/expense picture. The Board Rev/Exp report has been expanded to show some of the income line detail that was collapsed in broader categories in reports earlier in the fiscal year. These adjustments are a work in progress to make the reports more readable, at a glance. Also, there are two special contribution gifts 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. However, the gift that became a staff bonus does raise the total personnel expense higher than what was budgeted.

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