Church of the
Annunciation

7580 Clinton Street
Elma, New York 14059

716.683.5254

Financial Report

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Church of the Annunciation 

Parish Financial Report for the Year of September 1, 2016-August 31, 2017

The Parish is reporting an operating surplus of $242,447 for the fiscal year ending on August 31, 2017.  After non-operating (capital) expenditures, we are reporting a net surplus of $115,658.  This compares to an operating surplus of $202,482, and a net surplus of $79,156 from prior year.

Receipts

Overall receipts totaled $1,065,444, an increase of $58,582 (6%) over last year.  

As a result of changes in Diocesan accounting policy, a category-to-category comparison of receipts is misleading.  One change moved a significant amount of donations that were categorized as All Other Receipts in the prior year into Regular Receipts this year.  Regular Receipts are subject to the Diocesan Assessment, while All Other Receipts are not.  

In addition, the Diocese changed their accounting for special collections. We serve as a pass-through for these collections for various causes. In prior years, we recorded the collection amounts in All Other Receipts, and then the payout to the specific organization as an expense.  The Diocesan policy is now to combine the two equal entries.

As a result of these two changes, the variances reported in Regular Contributions (an increase of $96,333) and in All Other Receipts (a decrease of $43,932) are not straight-forward.  For this year, it is best to look at Total Receipts.

Included in the total was a $27,610 receipt from the Upon This Rock Diocesan capital campaign; this represents the amount of parishioner donations to the campaign returned to Annunciation. 

Our annual picnic reported a net profit of $71,056, 10% more than last year.

Operating Expenses

Operating expenses rose by $18,617, a 2% increase over prior year.  

Salary and payroll related expenses increased by $61,068, or 22%.  Regular salary expenses are relatively flat, and the entire increase can be attributed to a restructuring of our Lay pension plan by the Diocese.  These pensions are underfunded, and the Diocese put a replenishment plan in place that calls for each employer to contribute a percentage of their normal payroll to help cover the shortfall.  On top of this, part of this redesign was a special assessment on the ten parishes who had recently closed their parish elementary schools, including Annunciation. The Diocese‚Äôs rationale is that these ten parishes now have lower payrolls than in the past, so the normal payroll contribution to the lay pension deficit must be supplemented.  Lay pension expenses were $82,520 over prior year as a result of these changes.

The Diocesan assessment fell by $40,096 compared to last year.  This change is a result of a lower Diocesan School assessment, a function of fewer children attending Diocesan schools.

 

While religious education expenses increased by $13,493 this year to expand programming, that amount was almost totally offset by increased tuition receipts and fund-raising.

Early Learning Center

Our Early Learning Center pre-school program for three and four year olds continues to exceed expectations.  The program is a net contributor (revenues exceeding expenses) of $18,167, compared to $8,869 in the prior year.

Capital Expenses 

Improvements to the Parish facilities and grounds totaled $126,789, an increase of $3,463 over last year.  Major projects included:

  • Roof replacements for the north entrance of the church and Selbert Hall
  • HVAC unit for Selbert Hall
  • Window replacements for the rectory
  • Used pick-up truck and plow
  • Architectural fees for the Parish Master Plan
  • Upgrades to the kitchen, including flooring, venting, new tables, a new refrigerator and a new freezer.
    • These upgrades were made possible by a generous contribution from the Holy Name Society.

Parish Master Plan

Parish leadership has undertaken a multi-year Master Plan to upgrade our properties and prepare us for the future.  The first major phase of the plan will occur this year, with the relocation of the picnic pavilion and the storage sheds to the soccer field adjacent to the funeral home.  Final approvals from the Town of Elma are anticipated very shortly, and we plan to break ground in the Spring.  

The total Master Plan will cost approximately $600,000, will be undertaken over several fiscal years, and will be paid for out of our savings and normal operations. We do not anticipate the need for any external borrowing.

Changes in Assets and Liabilities

Our net worth (assets minus liabilities) increased by $81,584 or 13%, to $729,724. This was primarily as a result of our reported surplus for the fiscal year.   Our investible assets were positioned conservatively, according to our investment policy, and now total $431,911.  Liabilities of $86,010 reflects unpaid vendor bills from late in the fiscal year.

 

 

Audit Oversight

We continue to rely on the active oversight of our Audit Sub-Committee, chaired by Parishioner Bill Swierat, C.P.A.  This group has developed a recurring audit process for all critical Parish and School operations and organizations to ensure the money you entrust is safeguarded.

Progress on Financial Plan 2016-2018

The Finance Committee is guided by these objectives:

  • Maintain emergency funds equaling three months of operating expenses.
    • We are comfortably in excess of this guideline.
  • Create and maintain a fiscal plan to fund the Master Plan.
    • As reported above, we will undertake the first major phase of the plan this year.
  • Invest in basic capital improvements.
    • Due to the sustained support of our Parishioners, we have been able to continuously invest in basic capital upgrades.  Our current year projects include a new sacristy roof and a new furnace in the rectory.
  • Invest in adult ministry programs as directed by Parish leadership.
    • We anticipate continuing to grow our investment in adult ministries to reach more parishioners at various stages of their lives.
  • Invest in youth ministry programs as directed by Parish leadership.
    • The significant investments in Youth Faith Formation and the Early Learning Center will be sustained as we build the Catholic leaders of the future.

If any parishioner has any questions on our financial statements, please send them to me at larryzielinski@gmail.com.

Respectfully submitted,

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Larry Zielinski

Chairman, Finance Committee

 

 

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