COMMITTEE MEETING MINUTES

MT CROSS LUTHERAN CHURCH BUDGET & FINANCE COMMITTEE

NOVEMBER 7, 2011

 

Present:  Karen Gramacki, Herb Holler, Jessica Rebbe, and Susan Prosser

Absent:   Bob Brundage and Jessica Guzman

 

FINANCIAL REPORTS   Treasurer Jessica Rebbe presented the financial reports for year-to-date through   October.  The Budget performance report shows a significant improvement in income realized as compared to budgeted income. At the end of October, income realized was $37,238 under anticipated (if received equally throughout the twelve months of the year) which is a $10,527 improvement from our position at the end of September.  

 

With 83% of the budget year completed, we have collected 76% of the budgeted income.  A very encouraging change in the giving pattern is reflected in October, with both Pledged and Envelope Non-pledged Giving meeting and exceeding budget.  This is the second month in a row that Pledged Giving has been back on track after a number of down months.  October showed a tremendous surge in Envelope Non-pledged giving which was largely responsible for the improved situation.

 

In order to meet budgeted income in total for the year, giving and other income sources will need to make up any deficit within the last two months.  Several thousand dollars of this difference will be eliminated by transfers made at the end of the year from designated funds. 

 

It is important to also give recognition to the fact that savings in expenses can be made to reduce any net negative amount.  Through October expenses equaled 79% of the budget and the difference with the 76% of income collected has created a current net negative of $18,109.  The expenditure curtailment policy adopted by the Church Council places emphasis on this side of the equation and to the extent that budget expenditure savings can be made, the potential end of year deficit is reduced.  Using the end of October as an example, although the income is more than $37,000 under-realized, expenditure savings have reduced the net deficit to just slightly more than $18,000.

 

The Budget and Finance Committee concurred with the continuation of the expenditure curtailment program through the end of the year with the goal of ending the year with no deficit.  The Treasurer reported that there were no cash flow problems in October and that no further withdrawals have been necessary from the investment account.  Attendance records for October were also reviewed for indications of any relationship of attendance to giving.

 

 

CHART OF ACCOUNTS   The Treasurer continued the ongoing discussion of the planned change to the chart of accounts.  The full chart of accounts is not yet completed but a preliminary working copy was presented to the committee for review and discussion.  The committee provided input and participated in the renaming and definition of some proposed accounts. By consensus the Treasurer was given preliminary approval of the Chart of Accounts which will allow her to complete development of the Chart of Accounts for presentation and adoption by the Budget and Finance Committee and the Church Council.  It was clarified that the 2011 Budget will not be converted to the new chart of accounts.  The new chart of accounts will be used for the 2012 Budget.

 

 

 

2012 BUDGET PROCESS AND STEWARDSHIP CAMPAIGN

 

The Financial Secretary forwarded the most recent Stewardship Campaign report to the Committee for review.  As of 11/7/11, $318,385 has been pledged from 121 pledges along with 45 pledges for giving with no stated amount.  This reflects the same number of responses as the prior year with roughly $12,700 less than pledged at the same point last year.  We concluded the 2011 pledge drive with 129 pledges and a total of $337,438 pledged.

 

The budget process has begun and there have been a few submittals with most expected closer to the November 18th deadline.  It will be important to emphasize the bare bones or “essentials” approach to the 2012 Budget since there are no current indications that a growth budget will be possible.   Of greater concern was the possible need to make reductions to current budget levels.  The impact of the general economy and the need for the church to remain sensitive to the impact on member households was discussed.

 

It was agreed that the Personnel Committee should be alerted to the Budget Process but told that we do not yet have indicators for them as to whether any form of increased compensation adjustments can be recommended or whether we may need them to examine compensation/benefit adjustments of any other sort.

 

 

 

Upcoming scheduled meetings November 21, December 5, and December 12, 2011.