2014 Annual Report
The role of the Finance Committee is to monitor the financial health of the Parish and provide recommendations, pertaining to financial matters, to the Vestry.
At the 2014 annual meeting, the pledging commitment of the parish community was mirrored from the 2013 budget since stewardship pledging was delayed due to the Capital Campaign. The Vestry had approved a 2014 Operating Budget projecting a deficit of over $23,000, representing the largest deficit budget ever approved at Trinity. The early costs of the Capital Campaign would be covered by a transfer from the Memorial Fund, which would be repaid at the end of the construction period. Once the Capital Campaign funds were separated from the operating budget, there was the very real issue of pledging not meeting planned expenses. This has come to pass. In 2013 there were a number of positive, unplanned revenues that almost made up for the pledging shortfall. But in 2014 the pledge receipts could not make up the difference and transfers from the Memorial Fund and the Endowment Fund were required to pay current expenses. The Finance Committee and the Vestry will work together to attempt to avoid a repeat of this situation in 2015. The overall balance sheet can handle this type of deficit for only a short time before the losses are untenable. The Parish is fortunate that our investments are performing well and that there is sufficient cash on hand to pay current bills.
And 2015 starts in much the same way as 2014. Operating expenses are anticipated to be somewhat higher in 2015 even with the Committee recommendation to freeze current salaries to previous year levels. This past year Trinity lost the income from the Weight Watchers program and from the Bethany Counseling. These areas of income are needed to be replaced, if possible. With less revenue and higher expenses, the 2015 budget looks similar to 2014, with a higher deficit.
In 2014, Trinity incorporated the latest version of the “Church Windows” program, which enabled the office to obtain assistance as necessary since the previous version is no longer being supported. However in late 2014 the office computer required a hard drive replacement due to a virus condition requiring outside technical support for recovery.
The parish intends to meet its 2014 financial obligations to the diocese, including a pledge of 12.5% of income, as required by Diocesan Convention. This will be completed in early 2015 based on funds transferred from earnings of the Endowment Fund. In 2015 the commitment to the diocese is 10% of income plus 2 1/2% of income allotted to external missionary work.
Trinity has completed the required independent accounting review required by Church Canons for fiscal years 2011 and 2012. The Auditor has completed its’ reviews from those years and found the Trinity’s financial records to be in excellent condition. The Auditor is in the midst of completing the 2013 review and results are expected shortly.
Trinity continues to carry debt to the Diocese for unpaid insurance invoices, dating back to 2003. Recognizing the increase in fund balances due to the stock market levels this year, the Finance Committee decided to pay off $5,000 of our outstanding debt by withdrawing a portion of the Endowment Fund profits. This was accomplished in the first quarter of 2014.
Tom Sweeney, Paul Atkins, Jim Stapleton, Bill Amo