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The Financial Edition
- October 3, 2021 Financial Presentation copy
- October 10, 2021 Bulletin Insert
- October 3, 2021 Q&A Summary and Response
- The Numbers: Financial Reports for FYE 2021 and FY 2022 Budget
- Non-Profit Security Grant
- Staff Update
1. Financial Presentation
Good Morning Everyone. For those of you who don’t know me, My name is Lisa McMahon and I am your Business Manager here at St. Elizabeth of Hungary.
Today, as required by the Archdiocese of Denver, general accounting rules, and in full transparency, I present to you a summary of our financial state. First, I will summarize Fiscal Year 2021 which ended this past June. Second, I will discuss the budget prepared for Fiscal Year 2022. Third, I will provide a summary of 1st Quarter Offertory Trends. Lastly, I will make an appeal.
As many of you are aware, we have experienced a downturn in revenue, specifically Offertory, over the past 5 years ranging from 10-20% year after year - with the most significant decrease this past year largely in part because of COVID. Each year we have adjusted our budget accordingly, and tightened up our expenses where possible.
Even so, we ended last fiscal year with Expenses exceeding Income by $67,000, and cash down by $102,000. The difference between the two is the use of restricted funds: $11,000 from the remainder of the Paycheck Protection Program Loan received in FY2020 - which was forgiven this year, and thankfully, we do not have to pay it back - AND another $24,000 from restricted gifts for our critical roof repairs last fall, as well as the chalice and paten repair gifted by Father Ron. The rest, the $67,000, came out of savings to cover regular operating costs and significant building repairs, excluding the roof. Despite this use of savings, we ended the year with our 6 month reserve of $150,000 intact.
As for Sandwich Line, even with the added 6 month expense of the Safety Associate, the bottom line was positive with Income exceeding Expense by $2600. And with cash reserves sitting at $80,000 over ANNUAL expenses.
It was a tough year, but we paid our bills and made plans for a better year to come.
As you may know, by June 1, each parish is required to submit a net zero budget to the Archdiocese after Finance Council approval. The net zero requirement can often force an unrealistic projection of income and expenses having to plug holes, as it were, with contrived numbers. On your behalf, I attempt to create as realistic a budget as possible while meeting the requirement.
For FY2022, budgeted expenses are only $11,000 MORE than last year’s actual. This is primarily a result of building back in Religious Education programming with paid part-time staff and reducing projected building repair expenses - which are unpredictable year to year. So, we are looking at a very modest annual budget of $293,000.
As for the income to meet these budgeted expenses, despite the consistent 5 year downturn, this year’s budget includes an optimistic 10% increase in Offertory. We hope to realize this through contributions gained by the natural return of parishioners in the pews as we become more comfortable re-engaging after (or despite) COVID, new parishioners who seek a spiritual home here, and those of you ever-faithful, who can afford to increase your already generous donations.
Budgeted Offertory (with the 10% increase) covers only 56% of budgeted expenses. Our two other main revenue sources include rent from the Fraternas, which we mutually agreed to increase this year by a nominal amount, and weddings - both together cover about 10% of budgeted expenses. 7% of expenses will be offset by the end of year allocation of overhead and the Safety Associate expense to Sandwich Line. This leaves a 27% gap between budgeted income and expense. In order to close the gap, we have indicated in the budget to use nearly $78,000 of our remaining reserves. If we do not meet budgeted offertory, and/or our expenses exceed budgeted amounts, then we will wind up using more of our cash reserves. If we exceed our budgeted offertory goal (anything is possible!), then we will use less. In my conservative analysis apart from what was budgeted, our reserves gives us an approximate run-rate of 18 months.
As for Sandwich Line, the overall budget was increased to $34000 to cover the Safety Associate allocated expense, but given historical revenue trends, Sandwich Line can meet budget by increasing revenue by only $4000. But before you get your checkbooks out, we have already received an unbudgeted grant from another parish for $5000 so, Sandwich Line is ahead of its own income schedule! Praise God!
So now, looking tentatively at our first quarter actuals, I can say with relative confidence that our current offertory income is on trend with this same time last year. That means - no more downturn! Which is really a wonderful thing to be able to say at this point in time. However, our total revenue is still down overall and when compared to budget. So, even though expenses are under budget currently, and including the Sandwich Line overhead and personnel allocations, our cash is down by $13,000 just after the first quarter - and so we are just behind the projected use of our reserves. If things stay the same, the usage will increase as we add our Religious Education Coordinator to payroll this month.
Next Sunday, the bulletin will contain a summary of the information presented today - with a little more numerical detail. And, the following week, I will send out a special edition of Faith Fridays that will contain this summary, financial statements and some other data.
This coming Saturday, I meet with the Finance Council at the Cathedral, as I do quarterly. FYE final analysis and current year trends will be presented. I will ask for suggestions and advice on how to turn this ship around. I will remind them that we have only one full-time staff member, and 4 part-time staff who are ready to support the people who are willing to drive our mission, if only they will lead. But what I really want to tell them is this:
"After I made the financial presentation to the parish last Sunday, I held a Q&A session in the dining room. And would you believe - everybody showed up because they have a love for St. Elizabeth of Hungary, both the saint and her church, they have a passion for continuing our traditions and passing on the faith to those that have yet to walk through our doors, and not only do they have a vision for our future but a plan they are eager to implement to realize our potential in being a true Catholic presence in this world, at this time."
So, thank you for your time this morning. I will be in the dining room after Mass for a Q&A session. And I will see you there.
2. Bulletin Insert
- Slide 1: for the Church, shows the past two completed fiscal years as well as the budget for the current fiscal that runs from July 2021 - June 2022
- Slide 2: for Sandwich Line, shows the past two completed fiscal years as well as the budget for the current fiscal that runs from July 2021 - June 2022
3. Q&A Summary and Response
1. Why are we hiring an RE Director at this time, especially if finances are a concern?
Even though we are a mission of the Cathedral, we are not treated nor do we act like a mission. To that end, providing catechesis is integral to maintaining the quality of being a parish. Moreover, after a year of Covid and without an RE Director, it became apparent that the vacancy left a significant void in the life of our community. Providing our own catechetical programs for both youth and adults is essential to creating an atmosphere of life and vitality within our church to which we can invite and welcome others. Weighed against the consequences of not pursuing, it is a deemed a worthy investment of financial resources.
2. If we take the initiative to invite people back to St. Elizabeth, what are we inviting them to?
While this question was not answered fully during Q&A, the following reflection is offered:
St. Elizabeth of Hungary and her community (that's you!) have the rare quality of actually being a church family. At the heart of our gathered assembly is the experience of God in our sacraments, a sense of beauty and holiness in our worship space, and a love for not only each other but also for "the other." The invitation is always to God, by God, and for God.
3. What leadership can we count on as we navigate the trough of this wave?
While appeals have been made to appointed leadership in our midst, the bigger appeal is to YOU. How is God calling you to lead this community from the trough to the crest? What talents have you been entrusted with, that when shared, might provide a path forward for us?
4. The Numbers
FYE 2021 BS GEN
Sheet St Elizabeth of Hungary Statement of Financial Position FYE 2021 June June 30, 2021 Year Begin Balance Assets Unrestricted Current Assets Cash and Investments Totals:, 285,314 , 213,675 Other Current Assets Totals:, 10,317 , 10,670 Current Assets Totals:, 295,631 , 224,345 Long Term Assets
FYE 2021 SOA GEN
Sheet St Elizabeth of Hungary Statement of Activities FYE 2021 June June 30, 2021 YTD Actual,Annual Budget,YTD as % of Annual Budget Income Contributions (Off/Gifts/Grants) Contributions (Off/Gifts/Grants) Totals:, 163,360 , 136,481 ,120 Program Income (Fees)* Program Income (Fees)* Totals:, 25,787
FYE 2021 BS SL
Sheet St Elizabeth of Hungary Statement of Financial Position FYE 2021 June: Sandwich Line June 30, 2021 Year Begin Balance Assets Unrestricted Current Assets Cash and Investments Totals:, 71,139 , 89,525 Other Current Assets Totals:, 783 ,(10,670) Current Assets Totals:, 71,922 , 78,855 Long ...
FYE 2021 SOA SL
Sheet St Elizabeth of Hungary Statement of Activities FYE 2021 June: Sandwich Line June 30, 2021 YTD Actual,Annual Budget,YTD as % of Annual Budget Income Contributions (Off/Gifts/Grants) Contributions (Off/Gifts/Grants) Totals:, 4,450 , 3,000 ,148 Investment Income Investment Income Totals:, 62...
5. Non-Profit Security Grant
"This grant provides funding support for target hardening and other physical security enhancements and activities to nonprofit organizations that are at high risk of terrorist attack. The intent is to integrate nonprofit preparedness activities with broader state and local preparedness efforts. It is also designed to promote coordination and collaboration in emergency preparedness activities among public and private community representatives, as well as state and local government agencies."
Grant funds will go to improve the security around the exterior of our church and rectory including doors, lights, cameras, sensors and alarms as well as monitoring services for up to two years. We have the Archdiocese of Denver and Father Ron Cattany to thank for their advocacy in securing this grant.
6. Staff Updates
Let us welcome the following new staff members as they complete their onboard process through the end of October:
Liz Barreca - Religious Education Coordinator (part-time)
David Boyan - Safety Associate (part-time)
Fiona Walsh - Events & Wedding Coordinator (by event)
New staff members will be blessed on November 14, 2021 - the Sunday we recognize the Feast of our patron St. Elizabeth of Hungary!
Biographies will be available in November's edition of Faith Fridays.
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If you have any questions, concerns or suggestions regarding the financial state of St. Elizabeth of Hungary, please contact your Business Manager, Lisa M. McMahon: email@example.com.
On-Site Monday - Friday: 8:30am - 3pm
Business Manager - Lisa M. McMahon
On-Site Sunday: 9am-12pm
On-Site T/Th: 9:30am - 2:30pm
NOTE: Staff Meeting at Cathedral: Thursday from 1:15pm - 2:30pm
Maintenance - Trey Turner
On-Site MWF/Saturday: 9:30am-12:30pm
St. Elizabeth of Hungary Catholic Church
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