Vestry News for August, 2016
Date: August 8, 2016
To: The Vestry
From: Lynne Weikart, Treasurer
Re: July 2016 Financial Report
The summer is upon us and it is the time when we have the smallest financial cushion of the year – about $62,000. This will change in a positive direction in the fall.
At the end of July, 58% of the fiscal year has passed. The plate offerings continue to be quite low. We have collected about $17,000 which is only 45% of what we budgeted for plate offerings and reflects our low Sunday morning attendance. The pledges are stronger; we have collected $319,000 in pledges (54%). On the positive side, the diocese made its payment of $30,000 to us after the July books closed, and the endowment committee will soon send us the reminder due for this fiscal year.
In addition the Parish has received a bequest of $75,000 from the estate of Lorraine Wallenborn. The Vestry has agreed to allocate the funds as follows: 10% of $7,500 to the Outreach Fund, $20,000 to be set aside in a fund to be used by the new Rector for his/her initiatives, and the remainder, $47,500 to the Maintenance Reserve Fund. I wish to remind everyone that maintenance has not been funded for the last two years and this will help us in our ongoing maintenance issues. I hope that when the Parish receives additional bequests that the Vestry continues to allocate 10% to the Outreach Fund.
Since salaries and benefits area large part of the Parish’s budget (62%), it is important to keep these compensations under control. And this is the case every month. We have spent 57% of our salaries budget by the end of July and we have spent 60% of our benefits budget which is slightly higher because of prepaid insurance expenses. Our administration accounts are within budget. Maintenance and utilities are over budget but some of this will be corrected as some maintenance expenses will be transferred to the dedicated maintenance fund.
We have received the Independent Accountant’s Review Report for 2015 and the accountant has found that the Parish ended the year with a slight surplus. The Parish has an audit every five years and in between we have a review. Many parishes use reviews to hold down the expense of an audit. This report is on the website if you wish to read it. I would like to provide some highlights.
First, our Parish uses a modified cash basis of accounting. This means that we don’t count pledges until they are received. Under an accrual basis, pledges are recognized as cash as soon as the pledges are made. Ours is a more conservative approach. In addition our Parish designates next year’s pledges as next year even if the pledge is received in the year before. This is important because if a parish were running a deficit, it might be enticed to use next year’s pledges to balance this year’s budget. We do not allow that.
Second, we have $1,577,980 in an endowment. In 2015, the Parish received $69,867 which is 4.4% of the 2015 endowment. There is no one way to calculate interest income provided from endowments, but what is often used is the rule of thumb of at least 5% from a multi-year endowment average.
Third, the financial statements do not record any building or property as assets. This is because the Parish does not own the buildings or property, but rather the Diocese does.
If you should have any questions about the audit, please feel free to ask John Reid or myself.
Vestry Minutes for June 2016 PDF file
Financial - Balance Sheet for July 2016 PDF file
Financial - Dedicated Funds for July 2016 PDF file
Financial - Income and Expenses for July 2016 PDF file