Friday, January 27, 2012

Treasurer's Report

Because of a seven-month hiatus in rector support expenses after Fr. Steve retired, 2010 income exceeded expenses by $32,474.49.  Previous careful management had resulted in a 2010 beginning Operating Fund balance of $26,494.69, so that All Saints entered 2011 with an operating fund surplus of $58,969.18.  However, income for 2011 was projected to lag expenses by $20,869, and the Vestry was forced to approve a deficit budget for the year.  This deficit budget was thought to be reasonable in the short term because of the operating fund surplus.  By the end of the year, careful  monitoring of expenses had reduced the actual deficit to $8,428.80, and the Operating Fund still contained $50,540.38.

Income from member pledges during 2011 was $151,650, ninety percent of the amount pledged and two percent below the national average pledge fulfillment of 92%.  Non-pledged gifts provided an additional $18,440 income.  For the first time in at least two decades, All Saints did not request financial support from the Diocese.  Your Vestry and Treasurer are strongly committed to maintaining financial independence in the future, and this very desirable condition will depend on our prayerfully considered monetary gifts.

In 2011, All Saints received 86 pledges totaling $168,352.  For 2012, there are five fewer
pledges, and the pledged total is down to $166,297.  It is interesting that the six highest pledges (7%
of those pledging) account for 30% of total pledged income.

The balance sheet shows total assets of $519,311.02.  The majority of this, $350,984.28, resides in the Endowment Fund, and strict guidelines followed by the Endowment Fund Committee govern use of this money.  The Cornerstone Capital Raising Fund contains $70,941.  Note that the $91,332.62 in the Cornerstone brokerage asset account does not match this balance.   Cornerstone projects have been funded from the CS Capital Fund Rasing Fund rather than from the brokerage asset account, which explains the difference.  The brokerage account exists to receive gifts of stock, and the proceeds from sale of the stock have been left in the brokerage asset account to garner interest not available in our checking or savings accounts.  Unfortunately, this strategy has been ineffective in the current financial environment.  Note that the Major Building Repair Fund is different  from  the  Cornerstone Fund and exists for the purpose of paying for costly, unanticipated failures of our physical plant.  Many of our members contribute to this fund above and beyond their regular pledge gifts.  Finally, there is a Routine Building Repairs expense line item in the operating account for small regularly-occurring repairs.

The budget for 2012 is in balance but is tight.  In a major cost-cutting measure, the position of Administrative Assistant had to be eliminated.   Until our income improves,  the office will be staffed by volunteers.

Our finances continue to be tight.  Many of us in the congregation are beginning to set for ourselves
the goal of giving a percentage of our annual income to All Saints.  Mission oriented giving will allow the
Vestry to aim our budget toward accomplishment of our vision rather than merely paying our basic bills

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