Church of the
Annunciation

7580 Clinton Street
Elma, New York 14059

716.683.5254

Financial Report

CLICK HERE FOR 2018 FINANCIAL REPORT

 

CHURCH OF THE ANNUNCIATION

Parish Financial Report for the Year of September 1, 2017-August 31, 2018

The Parish is reporting an operating surplus of $301,548 for the fiscal year ending on August 31, 2018.  After non-operating (capital) expenditures, we are reporting a net surplus of $204,154.  This compares to an operating surplus of $242,447, and a net surplus of $115,658 from prior year.  The reported surplus includes an extraordinary positive item of $80,000, as explained below.

Receipts

Overall receipts totaled $1,056,938, a decrease of $8,506 (1%) compared to last year. 

 Receipt totals are difficult to compare to prior years due to changes in Diocesan accounting policy. Here are some highlights:

  • Collections from weekend Masses increased by $24,834 over prior year, totaling $666,018. 
  • Other parishioner receipts—which include non-directed donations made by parishioners outside of the weekend Mass collections—fell by $67,824. Parishioners chose to make these special donations directly to specific programs, in particular to Youth Faith Formation and the annual picnic.
  • Youth Faith Formation donations increased by $41,171 as a result of the “Big Board” fund-raising campaign.
  • Our annual picnic netted $125,535, an increase of $54,479.  Year over year picnic comparisons are sometimes misleading since many expenses are paid in September, which falls into the next Parish financial year.
  • Bequests to the parish fell by $12,744. These contributions are obviously not recurring and we do not count on them in our yearly planning.
  • Interest income fell by $14,227.  Since we are funding the Parish Master Plan internally, we moved Parish investments into short-term, low-risk, low-yield instruments.
  • Included in the total was a $43,211 receipt from the Upon This Rock Diocesan capital campaign; this represents the amount of parishioner donations to the campaign returned to Annunciation. 

In sum, the Finance Committee monitors receipts very carefully at all times, but especially now given the on-going abuse scandal in the Catholic Church.  Overall, receipts this year were largely unchanged from last year.

Operating Expenses

Operating expenses decreased by $67,607, an 8% decrease over prior year.  Here is a breakdown of major expense categories:

  • Salary and payroll related expenses decreased by $143,265, or 42%.  Regular salary expenses are relatively flat, and the entire variance 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 in 2017 that prompted our parish to make a payment of $80,000 to help cover the shortfall.  Subsequently, the Diocese returned the payment in this fiscal year and put a different plan in place.  In effect, our 2017 expenses were overstated by $80,000, and our 2018 expenses are understated by the same amount. Net of this amount in both fiscal years, 2018 salary and payroll are up by $17,000 as a result of normal salary increases, and larger expenses for health insurance and the clergy retirement fund.
  • The Diocesan assessment increased by $31,029 compared to last year.  The accounting policy change referenced above increases our total of assessable receipts.
  • Religious education expenses increased by $55,779, but the majority of this increase was offset by the fund-raising increase noted above.  The increased funding supported a series of retreats for our young people in accordance with the direction of Parish leadership.  Payroll expense was also up due to the timing of hirings.

Early Learning Center

Our Early Learning Center Strong Start pre-school program for three and four year olds continues to exceed expectations. Operating near capacity, the program is a net contributor (revenues exceeding expenses) of $28,433, compared to $18,166 in the prior year.

Capital Expenses and the Parish Master Plan

Capital expenses—improvements to the Parish grounds and buildings—totaled $97,394 as a result of some minor normal items, and the 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 involved the destruction of our old storage sheds and the renovation of the Cemetery, including a new committal chapel, columbarium, and access roads.  About $50,000 was expended in the last fiscal year.  This phase of the plan will be completed in this fiscal year, and be followed by the construction of a new pavilion across the street behind the funeral home.

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.

In addition, normal capital expenditures included a new rectory furnace and air conditioning unit, a new phone system for the parish office, and upgrades to the Church audio system.

Changes in Assets and Liabilities

Our net worth (assets minus liabilities) increased by $232,986 or 32%, to $962,710. This was primarily as a result of our reported surplus for the fiscal year.   Our investible assets now total $433,365.  Liabilities of $48,912 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, which is now chaired by Becky Lankes.  This group has developed a recurring audit process for all critical Parish operations and organizations to ensure the money you entrust is safeguarded.

Progress on Financial Plan 2018-2020

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 complete the first 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.  Those will be minimal this year as we focus on funding the Master Plan.
  • 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.

In addition, we will remain focused on the on-going crisis in the Diocese and the potential impact it might have on Parish finances.  We will be diligent in protecting Parish assets, and your donations that make them possible.

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

Respectfully submitted,

Larry Zielinski

Chairman, Finance Committee

 

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