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