Fiscal Report for 2014

Published on 24. Feb, 2015 by in Administrative, Uncategorized

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2014 Fiscal Report

Fiscal Year 2014 (July1. 2013-June 31, 2014) showed St. Ann Parish with an operating deficit of $20,333. (For the members of the 21 Club, with the Archdiocesan year-end audit, we reclassified some expenses/receivables into the current fiscal year, thus the slight discrepancy from the original $21,007) That deficit was after capital expenditures and bad debts were added in. In terms of ‘normal’ operating budget items, we showed a slim ‘profit’ of $25,418, compared to a ‘profit’ of $85,189 in FY 2013. Cash in our checking account and money market fund total $76,585, down from $121,789 last year. But, as I mentioned in my homily on Stewardship Sunday, that operating deficit is a direct result of the founding grant by Ann Lucas Hunt which set the mission of this parish: “To see to the needs of the congregation and the education of the children.” Here is the breakdown.

Expenses – Capital and Non-Cash

Capital Expenditures (cost element 61) totaled $34,599, significantly down from the year that saw the replacement of the boiler and redoing of the school computer lab. The breakdown of major costs is as follows:

  • Parish Building expenses of $8,400 covered repair of the gym floor from some water damage, the second half of the window replacements in the school hallways, and the internet rewiring project of this summer.
  • Equipment expenditures for the parish/school were $26,078, which included 2 replacement a/c units; an additional boiler water treatment tank; the hearing assist units for the church sound system; some replacement computers for teachers, plus $16,587 for a Mac-Mini and 30 i-Pads for school whose costs were split between the parish and a Boeing grant.

Non Cash expense (65) was $11,158, attributable to bad debt and uncollectable tuition.

Expenses – other than Capital or non-cash Capital

  • Personnel Costs (51) rose at a 4.7 % level, reflecting an Archdiocesan mandated 3% raise for faculty, with the resulting increases in Federal taxes, Health Insurance premiums and the like.
  • Supplies (52) showed a overall decrease of $8,649. Major variances include: The costs to replace the English Series as compared to last year’s Math Series ($3,500) and Parish Organizations’ expenses – aka: Men’s club, SAPO, Ladies Guild, etc., ($4,314) were offset by savings in janitorial supplies, (-$1,503) one time software Operating Systems for the computer lab purchased in FY13, (-$5,752) a reclassification of Teachers wish list monies to the areas where we spent them -transportation, instructional items, supplies, etc.) (-$10,316)
  • Fees and Services (53) showed a decrease of $5,327, as a result of some savings by our School Marketing committee as well as reclassifying the Shipping and Handling fees for our textbooks into the just mentioned “Supplies” category.
  • Occupancy (54) saw a decrease of -$7,151 overall as compared to the previous year. Higher heating costs and Snow removal costs (Remember the Polar Vortex?) were offset by having less Repairs and Maintenance needed, (Remember the hail storm the night of the 2012 Dinner Dance?). The purchase of a copier last Fiscal Year resulted in $3,103 of savings in the Equipment Rental category.
  • Transfers to Other Parishes/Diocese (55) jumped as expected. The bulk of this ($11,430) was due to the Alive in Christ Initiative, as this ‘tax’ hit its “2% of external revenues” ceiling, and an increase ($2,000 ) to the Priests Retirement Fund expenses.

Revenue

  • Unrestricted Revenues (41) of $364,236 were flat this year, showing a minimal $554 increase from last year’s giving. This includes our Sunday Envelopes, Holy Day and loose changes, as well as memorial and other unrestricted gifts. (Offertory gifts for normal Sunday collections were up, but were offset by a decline in unrestricted gifts – funeral memorials, and gifts given in honor of individuals, etc.)
  • Restricted Offerings and Gifts (43) were down (-$11,034) as compared to the previous year’s specialized appeals for the boiler fund in both our Visitation Appeal and the Pay It Forward appeal. (Visitation netted $35,906. The bulk of the Pay It Forward appeal came in the previous fiscal year, with the remainder trickling in this year at $2,385.)
  • Program fees (44) compromise tuition, book fees, registration as well as the Archdiocesan Alive in Christ Scholarship money to St. Ann School families. There is good news and bad news in this category. The good news is that the Alive in Christ program supplied 36 school families with $59,300 of scholarship money to help them afford the Catholic education we provide. The bad news you know: nearly 20 families initially took advantage of the School Transfer Law, so that our enrollment based revenues were down by -$43,276. This was partially offset by the sale of some cemetery plots, ($5,200) for a net decline in program fees of -$37,987.
  • Investment Income (45) – It was another good year for the markets, showing a net increase of $7,688. We were able to realize $21,667 from the endowment from last fiscal year, and we will receive $5,664 this coming July 1. Endowment earnings are held, as of Dec. 31, in a protected fund for budgeting purposes, until they are deposited into our account on July 1 of 2015.
  • Grant Revenue (46) was up by $19,500 from last year. We were the recipients, once again, of a generous gift from the Catherine Manley Gaylord Foundation to St. Ann School of $5,000. And, as mentioned above, Archdiocesan Grants to St. Ann parish through the Alive in Christ initiative; Tuition assistance to Teachers in Catholic Schools and CFTA, (offset by no insurance settlements this year), rose by nearly $28,000. We continue to pursue grants for our School and Pre-school to help pay for improvement projects in the future.
  • Other Revenues (47) shows decrease of -$5,091. It was a good year for the fiscal health of the various organizations that comprise St. Ann parish – Men’s Club, Ladies Guild, SAPO, and the like, showing an increase of $14,230. These revenues were offset by a decline fund raising revenues from the previous year to the tune of $16,134 (School plays, fish fry’s Dinner Dance, Recycling, etc)

Thus, total revenues show a decrease of $26,370 over last year’s totals. So, when you add it all together, we are left with a net income of – $20,333.

In summary, we nearly absorbed the decreased enrollment numbers due to the School Transfer Ruling.

People’s amazing generosity in response to my Stewardship appeal in October has stabilized our financial bleeding. In the short term, our cash reserves are not where I would like them to be. And the school enrollment trend, which most Catholic Schools are fighting, is still problematic. Yet, I am confident that we will continue to be able to fulfill the mission given to us by both our Savior and Anne Lucas Hunt, to “see to the needs of the community and the education of the children.” We will be conducting the Pay It Forward appeal this spring and the Visitation Appeal in the fall, as usual. And we will be doing some long range planning in the near future to look at building improvements and ongoing maintenance. In the mean time, for the 158th year and counting, we will continue to be a community “living Faith since 1856”.

— Fr. Bill

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2013 Fiscal Report Part 1

2013 Fiscal Report Part 2

As you read in my pastor’s pen this weekend, besides thinking of Stewardship in terms of the three “T’s” – Time, Talent, and Treasure – we are invited to think of three other words: Prayer, Participation and Generosity. All three of these lead back to the fundamental insight of St. Ignatius of Loyola – that all we are given is a means to either help us or hinder us on the journey back to God. To the extent that we are people of prayer, that we participate in the life of our parish and community, and that we are generous with the gifts and talents God has given us, to that extent will we align our wills and actions with that of our savior and God, Jesus Christ. That is the ultimate gift of stewardship – it leads us on the path of faith.

As a (hopefully) good steward of the resources of this parish community, it is part of my responsibility to publish our annual financial report. As I wrote in our pastor’s pen a few weeks ago, this year we were significantly in the RED, due mainly to our capital expenditures. Here is a ‘verbal’ breakdown of the FY2013 report, beginning with those capital expenditures.

Capital expenditures totaled $180,590.96. (For those who read the bulletin closely, this number is ~$15K higher than was I reported in my Aug. 3rd Pastor’s pen, because the Archdiocese asked us to reclassify where we had expensed the new computer lab- paid for from the Auction- into the Capital Expenditures section) The breakdown is as follows:

61 – Capital Expenditures:
Parish Building expenses of $21,365.94 including $13,142 for the Parish Center Bathroom remodel, $866 for a new door for the shed and $ 7,358 in window repairs and replacements. (some of the window costs were offset by Insurance payments in #46 –Grant Revenues listed above)

Equipment expenditures (parish) were $115,179.43, which included $109,049 for the new boiler and HVAC infrastructure, etc. as well as $2,625 to repair water damage to some of the pipes in the organ. We also purchased a new office computer for Eileen, bought out the end of lease rectory copier and procured a used riding lawnmower for the cemetery for a total of $2,506 additional expenses.

Building improvements in the school totaled $10,994 and included $6500 for computer room plastering and painting, some artwork for the front school foyer, a water fountain replacement, repairs to the gym floor and half the expense of the stairway window replacements. (The other half of the window expense will hit in this fiscal year)

Equipment expenses for the school totaled $33,051. Of this total, $23,570 revamped the antiquated computer lab, $4,275 purchased a new copier for the school, (cheaper in the long run than leasing), $41 provided doorbells for morning care, and $5,165 went for new short throw projectors and wall mounts for our MIMIO interactive whiteboards.
65 – Non Cash expense – attributed to bad debt and uncollectable tuition.

Back to the beginning of the report on the revenue side:

41 – Unrestricted Revenues – of $363,682 was down by $17,649 from last year’s giving. This includes our Envelopes, Holy Day and loose changes, as well as memorial gifts.
43 – Restricted Offerings and Gifts – Up by 114% due to the specialized appeals for the boiler fund in both our Visitation Appeal and the Pay It Forward appeal. (Visitation = $41,853 and Pay It Forward/Boiler appeal = $12,866)
44 – Program fees compromise tuition, book fees, registration and the like. As you see, it is for accounting purposes, unchanged from ’12.
45 – Investment Income – It was a good year for our endowment, with increases of on our principal from negative numbers to positive gains. We were able to realize $2,651 from that investment (That gain hit our books July 1st of THIS fiscal year, so will be in next year’s report.) Barring any significant change in the markets between now and December, we should see a similar return next year.
46 – Grant Revenue – up by $11,527, due primarily to a gift from the Katherine Manley Gaylord Foundation to St. Ann School of $10,000. Insurance claims, teacher’s tuition re-imbursement and a bit of Alive in Christ moneys composed the rest of this category.
47 – Other Revenues – shows an 21% jump, partly due to a reclassification of Teacher’s Wish List monies from the Dinner Dance into this category, as well as reflecting the relative fiscal health of the various organizations that comprise St. Ann parish – Men’s Club, Ladies Guild, SAPO, and the like.

Thus, total revenues show an increase of 6.3% or $75,586, two thirds of which can be attributed to the Boiler fund via the Visitation Appeal and the Pay It Forward Appeal.

On the “non-capital” expenses side,
51 – Personnel Costs rose at a 3.9% level, reflecting a 3% raise for faculty and staff, with the resulting increases in Federal taxes, Insurance premiums and the like.
52 – Supplies – were slightly higher over all because of the purchase of a new Math Series of Textbooks for the school. (We are replacing a series of books a year going forward…)
53 – Fees and Services – were steady.
54 – Occupancy – a slight rise, but when you realize we are comparing the mild winter of 2011-2012, when the boiler was shut down from early March through the season, to 2012-2013’s more normal experience of winter, the new, more fuel efficient boiler is making a difference.
55 – Transfers to Other Parishes/Diocese – jumped with the first year of the Alive in Christ formula of 1% of external revenues going to the Archdiocesan fund. I expect to see a similar jump this year, as the initiative hits its “2% of external revenues” ceiling.

So, when you add it all together, we are left with a net income of a negative $107,164.65.

In summary, as years go, this was an expensive one. In the short term, our cash reserves are not where I would like them to be. And the school enrollment is also lower than I would like it to be. I am cautiously hopeful that we will continue to be able to fulfill the mission given to us by Anne Lucas Hunt, when she donated the land and a few thousand dollars to the Jesuits to “see to the needs of the community and the education of the children” without resorting to extraordinary measures. However, we are watching the budget numbers very closely this year, and will keep you appraised should anything need immediate attention. We will be conducting the Visitation Appeal later this fall, and the Pay It Forward appeal this spring. In the mean time, for the 157th year and counting, we will continue to be a community “living Faith since 1856”.

— Fr. Bill

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2009-10 Parish Year End Report

Published on 31. Oct, 2010 by in Administrative, News

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October 2010

Dear Faithful St. Ann Parishioners,

Thank you so much for your faithful stewardship and support of this mission and ministry called St. Ann parish. I do have good news to report regarding Fiscal Year 2010. (FY10) We were in the black, with a net gain of $29,708.41. That is always good news.

Let me just make a few comments about the numbers you see on the report.
(Click on the report image to view a larger version)

Our schools remain the largest ‘expense’ on our profit and loss statement. But they are one of the most important ministries we are involved in here at St. Ann. In a recent study, over 65% of students who attended a Catholic Grade school CONTINUE to attend mass in their college years and beyond. We are creating the future of the church by what we do here.

By way of comparison to last year’s financial report, our K-8 school was in the red to the tune of $280,851 in FY 09, compared with this year’s total of only 210,458. (a net decrease of ~ $70,000 in indebtedness.) Our Early Childhood Center (Pre-School) ran at about the same level of indebtedness as the year before. It was, however, the first year of trying the “all day option” for that school. This year’s higher enrolment should find the ECC becoming a more financially solid organization.

You will notice that the final total for the Sponsor’s dinner dance is lower than the ~$61K we announced to you. The Archdiocese has asked us to ‘code’ the ~$10K in “Teacher’s Wish List” funds collected as a “School Revenue” and not a “Dinner Dance” Revenue.

Finally, as a part of the fiscal transparency that every parish in the diocese is mandated to show, all of our parish organizations’ monies are reported on our financial report. Thus, SACPO, Men’s Club and St. Ann Scrip monies are what constitute the “Organizations Funds” category on our report.

Our current year’s budget (FY11) has us ending up with a net profit of just over $7,000. The finance council and our bookkeeper keep me informed of any trends that might be worrisome, but, at the moment, they tell me it is okay for me to sleep peacefully at night. Thank you so much for your support, and for all that you do for the good of our St. Ann community.

Blessings,

Fr. Bill Kempf

Pastor, St. Ann, Normandy


P.S. – If you have any questions about our FY 2010 year end report, feel free to contact me at your convenience…

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