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.
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 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’s 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.
Improvements to the Parish facilities and grounds totaled $126,789, an increase of $3,463 over last year. Major projects included:
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.
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:
If any parishioner has any questions on our financial statements, please send them to me at firstname.lastname@example.org.
Chairman, Finance Committee