Finance Summary (4th Quarter Report, 2019-20)

pdfJune_2020_Board_RevExp.pdf

Finance Summary for 4Q Fiscal Year 2019-20

This was a very unusual year from a financial perspective. For the first 9 months, income and expenses followed typical patterns for ERUUF. Then in March everything changed. As noted in previous reports, contributions were down from 20-40% over this period of uncertainty. Over the course of year, the financial impact of the challenging 4Q was mitigated by solid commitment and generosity by members, and also the acquisition of the PPP loan.

Highlights for FY 2019-20:

  • YTD net: $61,350 surplus
  • Staff salaries fully paid through June
  • Pledge income reduction
  • Rental income down for last three months after very strong start
  • PPP Loan ($106,200; ERUUF will apply for loan forgiveness based on eligible loan criteria)
  • Raffle proceeds, $23,000.
  • Staff transitions (Music, RE)
  • Greater IT needs and expenses (adapting to online worship and programs)
  • Additional cleaning needed for VERY busy campus creating higher expenses.
  • Receipt of significant legacy gifts (Strategic Initiatives Fund)

Overview of FY 2019-20

Rental Income

-32%

Strong start, very little after March

Pledge Income

-9.4%

4Q pledge trends down; however, sustainer giving, plus extra and large gifts make a big difference for year total

Expenses-Administrative

+23%

Greater IT support needed; plus extra fees associated with remote work, licenses, software, online worship

Expenses-Facilities

+79%

Numerous unexpected building repair projects and additional janitorial and sanitation supplies

Expenses-Personnel

-7%

Transition in music and music coordinator, youth ministry; reduced hours used with youth staff and nursery

Expenses-Programs

-14%

Programs budgets paused for 4Q, except for Justice

Reserve Funds

Strategic Initiative: $326,771

     Includes conversion of Kurzman legacy gifts ($180,000+)

     Plus, surplus from FY 19/20: $61,350

     (Total = $388,121)

General Reserve: $30,436

Ministers Discretionary: $16,881

Campus Needs: $59,719

              Additional $200,000 (Self-Help CDs)

              Additional $50,000 (matching gift--pending)

(Note: This is a fluid account that funds ongoing maintenance projects like repairing siding on Care bldg.)

PPP loan: The PPP loan was approved in May by BB&T ($106,200). The use of funds is restricted to utilities and payroll. Thanks to ongoing insight from Mark Kuhn, Kay Edgar and Sheng Yang, we have been able to maximize the use of these funds with rules that have changed multiple times over the past few months. In the required loan use reporting, ERUUF will be making application for loan forgiveness which will turn the loan into a grant. We will track this in a separate report and provide detailed documentation for the BFAC and for BB&T.

Solar Project: The solar installation is complete and we are waiting for the final inspection process. The system will go live sometime in August 2020. While many folks were involved in the planning and support of this project, a special thanks goes to Denise Frissell and Peter Romeyn for bringing this project to completion.

Office staff: The last few months have required all of us to adapt and learn new ways to work and communicate. For the office staff at ERUUF, primarily Shawn and Jenny, this involved a complete reworking of their job priorities and duties to learn how to support online worship, classes, and programs. Please be aware that this was no small task and it has helped ERUUF be able to provide strong online worship (Sundays and Wednesdays) as well as various meetings and classes.

Facilities Reserve Study: The campus facilities study and the IT study are both complete. There were plans to review these reports in March right when the quarantine landed. Both contractors would be available to give a brief presentation and answer questions for the Board about the studies during the coming fiscal year.  

Facilities: This has been a very busy year on campus for maintenance and improvement (roof, solar, carpet, doors, and more).

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

(document by Daniel Trollinger, Director of Administration)