Finance Summary (2nd Quarter Report, 2018-19)

pdfDecember_2018_RevExp.pdf

Finance Summary for 2QFiscal Year 2018-19

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. After 6 months, pledge income is about 53% of total pledged (vs. 60% in FY 2017-18, 56%in FY 2016-17, 58% in FY 2015-16, and 61% in FY 2014-15).

For the first six months, pledge income is trending lower than in the past. There are several factors at play.*
Rental income is strong but about $7,000 off last year’s record pace.
The raffle generated $38,160 gross income, with $6,500 anticipated expenses, for a net of $31,650.

On the expense side, most expenses are on or under budget in most areas. A couple of items to note:
a) Staff transitions (Office Assistant, Youth Ministry, and Facilities Assistant) and additions may result in fluctuations in personnel expenses.
b) Areas over budget due to increased activity/need (membership, adult programs, Board, janitorial, IT).
Net operating total YTD: $93,442 (compare to $97,073 in FY 2017-18, and $40,261 in FY 2016-17).
*Interpreting the numbers.
• An increase in auto-draft contributions in the past couple of years has leveled out some of large ups and downs around giving patterns (almost 50% of pledges are now on auto-draft).
• The calendar timing around large, one-time gifts is variable from year to year. Even though we see a fair number in December via stock transfer before calendar year end, the variability can make year to year comparison uneven at the 6 month juncture.
• Special contributions. In FY 2018-19 two large, non-pledge gifts have been recorded totaling $70,000 in a restricted account as a more effective way to report the gifts since they may be used over several years. Implementation of the new ERUUF gift policy needs clarity for messaging, accounting, and reporting. The immediate plan for a portion of these contributions is to address some staffing changes. Rev. Cayer shared this with the Board this fall.
• The overall financial picture is promising. Demand for building space and use by ERUUF groups and renters continues to grow.

Total Cash in BB&T (as of Jan 6, 2019): $352,594

General Reserve Fund: $68,066

One year ago, ERUUF was…
• Collecting pledges/gifts for special campaign ($565K total).
• Preparing to make final payment for mortgage ($103K paid Feb. 2018).
• Reviewing investment options for portion of special campaign ($200K in CDs with Self-Help, April 2018).
• Evaluating options for funding present and future maintenance needs.

 (document by Daniel Trollinger, Director of Administration)