Overview:

Despite the pandemic impacts on ERUUF programs and activities, this was a very stable year from a financial perspective. The first few months of the fiscal year began with a significant number of early pledge completions that came forward in response to giving messages in May/June 2020.

Income Trends: The pledge incompletion rate is about 2.5% which is much lower than the 8% we cautiously projected at the beginning of the pandemic when the budget was built back in May/June 2020.

More online giving participation, more recurring gifts, more 1 time gifts to help ERUUF and special collections.

UUSC, East Durham Community Partners, UU Vote (total: $3,717)

Texas Crisis Relief ($2,930)

Urban Ministries ($15,271)

Generosity Sunday: Siembra NC ($2,025)

Minister’s Discretionary Fund ($15,670 contributed this year; current balance: $16,835)

Highlights for FY 2020-21:

• Rental income remains quite low as expected with the campus closed. Family Preschool is in session with strong COVID protocols.
• Personnel: Due to COVID, staff transitions (RE Assistant), and program/staff transition (Music), personnel expenses are significantly below budget for year.
• Most budget lines are at or below budget. One exception is IT support. Increased levels of equipment and technical consult were necessary to support remote work and online worship.
• The planned reserve transfer into the Campus Needs Fund ($2,500) has been completed.
• Giving patterns seem to be stable despite ongoing uncertainties with COVID, politics, and economy.
• 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 June 30, 2021)

Net Operating Total YTD	$-31,107
General Reserve Fund	$29,033 (amount will be rebalanced to 3%of budget per policy guidelines)
Strategic Initiative Fund*	$433,747 ($180K committed to 2021-22 budget)
Campus Needs Fund	$314,705

*Note: This figure differs from the one presented at the annual meeting and in past reports because we just paid the initial deposit for the AV work and shifted funds to cover the $31,107 deficit.

Overview of FY 2020-21

Rental Income	-23%	Very few rental opportunities (Family Preschool and Early Voting) so results even lower than low projections with campus closed for the year
Contributions Income	+9%	Strong pledge completion (97.5%), more online giving participation, more recurring gifts, more 1 time gifts to help both ERUUF and multiple special collections
Expenses-Administrative	+15%	Greater IT support needed; plus extra fees and equipment associated with remote work, licenses, software, online worship
Expenses-Facilities	-25%	Expenses for janitorial and sanitation supplies not needed as much with campus closed
Expenses-Personnel	-6%	Transition in music and music coordinator, youth ministry; reduced hours used with youth staff and nursery
Expenses-Programs	-12%	Less program expense needed with campus closed for the year

New Account: Per recommendation from the Board Finance Advisory Committee, an account was opened with the Self-Help FEDERAL Credit Union for $250,000 as part of effort to secure FDIC for ERUUF cash reserves. The cash transfer was finalized in July so does not appear on the end of year reports. $240,000 was placed in a 2-year CD. $10,000 was placed in a money market account.

AV Project: Physical construction has begun on the Sanctuary AV upgrade. While this is just one step in a complex process involving multiple contractors, we are hopeful for a mid-September completion date. So please pardon our dust over the next 6 weeks as installation continues in phases. The system includes a new speaker, large retractable screen, long throw projector, additional screen the chapel, hearing accessibility upgrades, and window shade.

This is more than just new equipment. ERUUF is seeking to develop capacity for multi-platform worship. The ability to worship together, both in person and at a distance, is integral to the life of this faith community. The new AV system will help ERUUF build capacity for the community and empower the multimedia worship experience that has developed over the past year of livestream worship.

This project has been in various stages of research and development for quite some time. Conversations have been engaged with the worship team, tech team, Coordinating Team, Board of Trustees, music team, sound team, buildings and grounds team, and more. There have been a variety of ideas and iterations of options for how the project could work within the physical space and enhance worship at ERUUF. We are excited to be moving forward now and grateful for a grant from the Eno River Fellowship Foundation and Board approval for additional ERUUF reserve funds that will make this project possible.

The upgraded AV system will allow ERUUF to take a huge leap forward in technology and connectivity, as well as dynamic worship.

AV Loan: After reviewing options from multiple vendors, BB&T offers the best loan terms. The loan will be initiated as soon as we receive a few pending invoices from contractors that will impact the total amount borrowed. The loan can only be secured relative to actual invoices, not project estimates. This paperwork delay will not impact the construction schedule.

Facilities: While the campus buildings have been closed for most of FY 2020-21, it has been a productive time for facilities maintenance and improvements.

New roof for office area                             New Sanctuary HVAC unit

Care building floors polished                     Fence repair near community garden

New bamboo floor in Nursery                   Hybrid meeting devices Care building and Fellowship Hall

New wall HVAC for Nursery                       Painting Room 2

Tree removal/solar shading                      Insulation remediation (all campus)

Music room floor polish                             Door/window repair Care building

Server/IT closet upgrades                          Parking lot gravel work

Office/Tech Workflow: The pandemic has required all of us to adapt and learn new ways to work and communicate. For the office staff at ERUUF, this involved a complete reworking of job priorities to support online worship, vespers, classes, and programs. In partnership with the worship team, we have developed workflow systems for worship multiple times during the past year from initial web cam livestream, to new sanctuary camera and media station, to zoom worship and vespers, to services that were completely pre-recorded (all of December and more). Each format required developing and learning a new way to work. Now with the Sanctuary AV phase 2 on the way and congregation members returning to the building for live worship, we will have to once again adapt a new workflow for facilitating worship. Please be aware that this behind the scenes work was no small task and it has helped ERUUF be able to provide strong online worship as well as various meetings and classes.

Please refer questions on financial details to the Director of Administration or the Board Finance Advisory Committee.