Finance Summary (2nd Quarter Report, 2017-18)

pdfDecember 2017 RevExp

Summary: 

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 at least 60% of the pledge income would be received in the first six months. After 6 months, pledge income is about 60% of total pledged (vs. 56%in FY 2016-17, 58% in FY 2015-16 and 61% in FY 2014-15). However, the increase in auto-draft contributions in the past couple of years has leveled out some of large ups and downs around giving patterns, so this 60% estimation model may not hold true in the same way.
In February, this strong pledge income trend continues. Plus, rental income is about $10,000 above last year’s pace.

Net operating total YTD: +80,576, which is ahead of FY 2016-17 ($40,261).

On the expense side, expenses are basically on or under budget in most areas. A couple of items to note:
a) Staff transitions (Office Assistant, Youth Ministry Assistant) may result in fluctuations in personnel expenses.
b) General Reserve Fund: $58,171.
The overall financial picture looks solid. The level of participation, attendance and programming is very strong. Building use by ERUUF groups and renters continues to be higher than ever. There are already 4 weeks of camps booked for the summer.

Mortgage payment: $1,419/month. Balance on mortgage: $103,935. (Annual: $17,500)

Special Campaign Total (as of Feb. 11, 2018): $315,768. Plus matching gift of $250,000. Net total: $565,768

Total Cash in BB&T (as of Feb. 2018): $549,323

Action Items:

  • Board approval to pay off remaining mortgage
  • Recommendations for investments options for portion of special campaign.
  • As we live into the Strategic Plan and commitment to racial equity and inclusion, is it possible/feasible to choose a banking institution that is values-aligned with ERUUF and/or has minority ownership?
  • Guidelines for use of funds (draft of policy in development)
  • Analysis of present and future maintenance needs (additional study, long-term funding plan)

Questions:
What are the options around funding future campus maintenance needs?

If ERUUF shifts funding models, what is impact on future members, programs, budgets, Boards, etc.? 

 (document by Daniel Trollinger, Director of Administration)