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.
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:
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 decreased by $67,607, an 8% decrease over prior year. Here is a breakdown of major expense categories:
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.
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:
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 firstname.lastname@example.org.
Chairman, Finance Committee
Chairman, Finance Committee