[Fuusm-l] Financial Status of the Church, Information for Congregational Meeting

[Ted Goertzel]

As acting treasurer, with Linda Lawton's help, I undertook an analysis of
the financial status of our church. The Board asked for this information so
we will be well informed to vote on the Budget at the Congregational
Meeting on September 27.  It has implications for future planning as well.

The key findings of my analysis are summarized in this email. There are
links to more detailed information on each item.  If you have a chance to
read this during the next two weeks before the meeting, please get back to
me with any questions or suggestions. We will have limited time for
discussion during the meeting itself.

A Report on FUUSM’s Financial Status

Ted Goertzel, Acting Treasurer

September 11, 2020

tedgoertzel at gmail.com
<https://docs.google.com/document/d/1-EFqw3ApvIqicGAD0mD4U2ZoHLVcRqJIWe6_G7P-A3w/edit?usp=sharing>Click
here to open this report in a browser
<https://docs.google.com/document/d/1-EFqw3ApvIqicGAD0mD4U2ZoHLVcRqJIWe6_G7P-A3w/edit?usp=sharing>.



The budget for the 2020-2021 fiscal year projects a troubling decline in
revenue from pledges. This is not due to the pandemic, but to a decline in
membership in the two years before the pandemic. The budget also projects
declines in plate revenue and in service auction revenue (which may be
worse than projected since we may not be able to have an auction).

 Budgetary trends since 2014 are summarized in a Table Here:
<https://docs.google.com/document/d/1eWUT3b211jzxQOI5DvSTY-uPzQNIJ-eIubCSEWrlclM/edit?usp=sharing>


The decline in income is primarily due to a decline in membership in the
last two years. Membership declined from 131 in 2014 to 104 in 2020. This
has been primarily due to a decline in new memberships, not to an increase
in membership losses. Click here for a detailed analysis of  membership
trends
<https://docs.google.com/document/d/1N5lwsS63m9u8eECMOx1Vb4QFESb-hBFPNyjHpjB3Hr8/edit?usp=sharing>


Despite the coronavirus we have not as yet experienced acute financial
difficulties because most members have kept up their pledges and because we
have received government help from the Payroll Protection Program. However,
the Payroll Protection Program will not continue indefinitely.

We have substantial financial reserves thanks to the generosity of current
and past members, but much of this is in Trust Funds that are restricted to
be used for repairs to the building.  We have approximately $50,000 in
available cash and approximately $600,000 in restricted Trust funds.  For a
report on the church’s Trust Funds click here.
<https://docs.google.com/document/d/1VljLfq7-YfeXINVmAqa2fYPTHe6zD6X9riaGC1TpICk/edit?usp=sharing>


In the fiscal year which ended on June 30, 2020 we spent $30,107 more than
we took in. This was done intentionally to use some of our cash reserves
for building repairs. For the current 2020-2021 fiscal year we project
spending $28,861 more than our ordinary income. However, this will be
partly compensated by a $21,642.50 forgivable loan from the Payroll
Protection Program. We cannot, however, count on this program after this
year.. To see last year’s and this year’s budget in a spreadsheet click here
<https://docs.google.com/spreadsheets/d/1CIGbfTUhqU5HkOrx4pU9fjGm57DIXGTC5gnWSZFLSW4/edit?usp=sharing>.
To see how actual spending matched the budget look at “Profit & Loss Budget
vs. Actual July 2019 through June 2020” which you can find here
<https://docs.google.com/spreadsheets/d/1IVWqWHFIHAdJSUx8ZWrGFfwulDAJI6Plb2t3eqAIRos/edit?usp=sharing>


In preparing the 2020-2021 budget the church did not go through the
budgetary planning process that should have begun in January or February at
the latest. Instead, we simply continued the spending from the previous
year’s budget while adding some new items. While our reserves and a
government bailout have enabled us to get away with this for one year, it
is essential that we conduct a rigorous budgetary planning process next
year.

If we are unable to reverse the decline in membership and/or get an
increase in pledges  we will have to make painful budgetary cuts. Since
most of our budget goes to salaries, at some point this may require salary
cuts. We can use trust funds to sustain the building, but not to pay the
majority of operating expenses.  For a detailed analysis of the proposed
budget click here
<https://docs.google.com/document/d/12RVXR3zSEZyXhmXORty5q3u7F_WW6gOvoHwsa-Y2r3U/edit?usp=sharing>.
To see the entire budget spreadsheet without analysis, click here
<https://docs.google.com/spreadsheets/d/1c70VEv36saKgwh6jAE_YX-Z2gLPEzbMQMljnn9C3U2Q/edit?usp=sharing>
.
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