Presentation September 19 & 20, 2015 Good morning/evening. - - PowerPoint PPT Presentation

St. . Norbert Financial Stewardship Presentation

September 19 & 20, 2015

• Good morning/evening. My name is Ken McKinney and I am the current Chairman of the

Parish Finance Council. The other people on the Finance council are Mark Muesenfecter, Joe Mooney, Juan Alvarez, Mary Bettis, Deacon Bill, Father Jim and the Bookkeeper Nancy Saffa. We also work very closely with Dave Watkins the Principal of the School.

• What we have here is really pretty special and that you can’t just look at one building or group

and say that is St. Norbert. In preparing for this talk I got on line and looked up the word “Parish” and there were a couple definitions but there was one that hit home for me because it addresses how we should look at the word Parish. It is “In the Roman Catholic Church, a parish is a stable community of the faithful within a Particular Church, whose pastoral care has been entrusted to a parish priest, under the authority of the diocesan bishop.” This is how I look at St. Norbert, not as just a church or just as a school but as a community that happens to include both a church and a school. It is with this thought in mind that I prepared this talk.

• This summer as we were preparing and finalizing the church and school budgets we noticed

some unfavorable and disturbing trends over the last several years in both the church and school financial results. Based on these trends the Finance Council discussed how we should bring this to the attention of the Parish. Father Jim thought this was serious enough that we should make sure it was brought to the attention of as many of the parishioners as possible so he suggested doing it in association with a mass during the stewardship period and we ended up with making it a part of the mass. Based on the results from those of you who recently completed the Parish viability survey this is not going to be a big surprise, as one of the questions asked during the survey was “The parish collects sufficient funds to cover ordinary

• perating expenses.” The Core team rated us at a 2 which is “Poor” and the Parish average

was 2.95 which is between “Fair” and “Poor” for a Total Parish average of 2.48.

400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 1,100,000 2012 2013 2014 2015 2016

Church only Revenue and Expense Trend

Total Income Total Expense

Church only Revenue and Expense trends:

• In 2012 and 2013 revenue and expense increased at a similar rate.
• In 2014 revenue increased, primarily due to additional donations from a few parishioners to cover unexpected

expenses related to snow removal.

• The 2014 decrease in expenses was due to

1. Decrease in Personnel costs of $ 40k due to losing both part-time priests 2. Decrease of approximately $ 20k in payments made to the Archdiocese.

• In the year just ended, 2015, we saw the revenue drop back down to below the 2013 level and the expenses

increased almost back to the 2013 level. This increase in expenses was due to the various payments we make to the Archdiocese.

• For the 2016 budget we are projecting a slight increase in revenue due to:

1. Increased revenue from fund raising from events like the Parish Auction, the Parish Picnic 2. and a couple of new events.

• We are projecting an increase in expenses in two areas:

1. Personnel cost due to annual salary increases and the additional salary of our second priest . 2. Payments to the Archdiocese.

• The 2016 budgeted net excess for the Church is $38,138

1,400,000 1,500,000 1,600,000 1,700,000 1,800,000 1,900,000 2,000,000 2,100,000 2012 2013 2014 2015 2016

School only Revenue and Expense Trend

Total Income Total Expense

Trends for the School Revenue and Expenses.

• As you can see we have had some dramatic decreases in both revenue and expenses at the school which

is reflective of the decreases we have seen in the number of students in school.

• The total school population which includes students in grades K-8 and Pre-K School has dropped by 99

students from the years 2012 to 2016.

• Expenses are higher than the revenue as this variance or shortfall is the Parish School Subsidy.
• With the help of Dave Watkins we made some significant cuts in the school budget and reduced the

School subsidy from $176,580 in 2015 to $144,293 budgeted for 2016 while maintaining a high quality of education level for the school.

• The reduction in school expenses primarily came in Personnel costs where we had several teachers retire
• r leave last year and we were able to replace them at a lower salary costs but still get quality teachers.

2,200,000 2,300,000 2,400,000 2,500,000 2,600,000 2,700,000 2,800,000 2,900,000 2012 2013 2014 2015 2016

Total Parish Revenue and Expense Trend

Total Income Total Expense

Total Parish results, which is a combination of both the Church and School results.

• Revenue is the blue line and expenses are the red line.
• It is not good that the revenue is less than the expenses.
• The other disturbing item is the revenue is decreasing at a faster rate than the expenses.
• The budgeted shortfall for 2016 is $173,000.
• Some of you may be asking if the Church is at an excess of $38,000 and the School is at a deficit of $144,000 how do

you get to the overall deficit of $173,000? The additional $67, 000 is due to a change the Archdiocese made during the summer to the teachers’ contractual year. The change was to move the teachers’ contractual year from September 1 to August 31 to August 1 to July 31 which is more reflect of the current school year. As a result, in August we owed for both the last month of last year’s contract and first month of the current years contract.

• To help with cash flow the Archdiocese is allowing us to pay the first month of the new contract over the current year

but from a budget perspective it all hits in this fiscal year.

• I am sure some of you are saying how can you budget for a deficit? As an Accountant I don’t like it but it is realistic

and by doing it, it forces us to address the issue now as opposed to later when the actual results come in.

• As I will explain later in my talk we have some cash reserves generated by the We Are Norbert capital campaign to

help cover this shortfall. The reserve gives us the opportunity to make corrections over time in a planned and thoughtful manner.

The trend for the total number of …

• parishioners in the parish
• the number of parishioners that are giving via envelopes
• and the number of parishioners not giving in a reportable manner.
• The top line shows the total number of parishioner we had each
• year. We have seen a net decrease of 73 parishioners from 1,081

parishioners in 2012 to 1,008 in 2015.

• The number of parishioners using envelopes decreased by 99 from

692 in 2012 to 593 in 2015.

• The number of parishioners not giving in a reportable manner

increased by 26 from 389 in 2012 to 415 in 2015.

• This slide shows the trend of the average annual giving per

parishioner.

• This slide is very positive. Even though the number of

parishioners giving has gone down the parishioners that are giving are giving more.

• This is a testament to your generosity.
• The average giving increased from $226 from $1,059 in 2012

to $1,285 in 2015.

This slide shows the trend of the Average Weekly Giving. As you can see even though the average giving per parishioner went up it still isn’t enough to cover for the decrease in the number of parishioners.

School subsidy

• Total students for year 2015-2016 – 265
• Students of parish families – 186
• Students of non-parish families – 79
• Parish subsidy to school - $144,293
• Subsidy per parish student - $775

School subsidy: The School subsidy is the difference between the true cost to educate a student and the tuition paid by the student.

• At the start of the school year we had 265 students in the regular school.
• Of these students 186 were from parish families and 79 were from non-parish

families.

• The non-parish families pay a higher tuition which is more in line with the actual cost

per student.

• I bring this up to remind the parents who have children in the school what you pay in

tuition is not the full cost to educate your child.

• Last year parish families with children in the school gave $89,000 which was about

half of last year’s School subsidy.

We are Norbert Capital Campaign

as of July 31, 2015

Capital Campaign Revenue 460,346.01 Expenses of the campaign 65,924.06 Net available capital campaign funds 394,421.95 Campaign expenditures School A/C 80,443.15 School Computers 2,084.45 School Security System 14,665.26 School Roof 14,650.00 Gym Lighting 19,164.93 Grounds & Landscaping 4,158.96 LED Lighting 1,146.53 Sign 4,655.35 Building Improvements 4,145.55 Equipment Repair/Replacement 2,961.00 Rectory Renovation 17,983.31 Parking Lot Repair 34,530.00 Total campaign expenditures 200,588.49 Funds available for reserve 193,833.46

This slide shows the status of the We Are Norbert Capital Campaign as of July 31, 2015.

• I would like to again thank everyone who pledged to the campaign and have made payments against their

pledge.

• As you can see we have already received over $460,000 of the over $1,100,000 pledged.
• The list above is the campaign expenditures we have incurred over the last year.
• The number I want to bring your attention to is the bottom number, $193,833. This is the cash reserve I

mentioned a few slides back.

• If you remember, the Capital Campaign proposed to generate $510,000 in reserve to help cover emergency

cash shortages.

• When we set up this reserve amount we were definitely not expecting to be using it this soon and not at this
• level. This is not something we can not do on an ongoing basis or there will be no reserve available in the

future.

Financial asks

• The 593 families that are already giving -we ask that you consider increasing

your giving by $5 per week.

• This equals $260 per year – This could be done by weekly donations
• or by bidding $ 260 more at the dinner auction, or any other fundraising event

throughout the year.

• If everyone does it we raise an additional $154, 180 to cover our current shortfall.
• The 412 families that are not giving- we ask that you consider giving to the
• parish. If each of these families only gave $1 per week it would generate $21,424

in a year.

• For the families with students in the school - we ask that you consider giving

at least a minimum of $775 the amount of the per student subsidy. (This is about $15 per week.)

• For all families- please take advantage of the automatic giving option the

parish has available.

• This saves the parish money by not having to send envelopes and saves you the time
• f not having to write a check each week.