The Ministry Finance Team presents this Financial Performance Report (“FPR”)

for November 2020 to the St. John’s Lutheran Church Congregation

and St. John’s Lutheran Church Council.

 

With the successful use of on-line and in-car worship in lieu of in-church worship, financial results are remaining steady, although both revenue and expenses are running below the 2020 Budget numbers that were adopted by the Congregation in late January 2020. St. John’s continues to experience some financial uncertainty, but congregation members, friends and visitors have been very faithful in view of the challenging external environment in 2020. The Pastors, Staff, Church Council, and Ministry Finance Team continue working together to monitor cashflow and take all prudent steps to conserve cash.

 

At the end of November, St. John’s continues to have cash on hand to cover operating expenses through then, but may need to use our strong cash balance, combined with funds and contributions received during the next few months to fund staff salaries and benefits along with necessary operating expenses.

 

St. John’s has benefited from members who pre-paid their 2020 contributions, enhancing the cash position of the Church. These pre-paid offerings are to be distributed on a regular schedule each month to ensure funds will be available for upcoming 2020 monthly operating expenses.

 

General Fund Report

For November 2020:

 

  • Offering revenue was $50,475, which is 8.6% above budget for the month

  • General Fund revenues were $51,868, which is 4.6% above budget for the month

  • General Fund expenses were $42,562, which is 20.9% below budget for the month

  • General Fund net performance was a positive $9,306 for November

 

Year to date (“YTD”) 2020:

 

  • General Fund revenue is $477,427 which is 20.9% below budget for the year

  • General Fund expenses are $506,940, which is 16.9% below budget for the year

  • General Fund net performance compared to Budget is a positive $4,072 from January through November

 

Comments & Observations:

 

While for the first eleven months of the year, General Fund revenue performance has been below budget, with prepaid 2020 contributions and PPP funds providing a cushion to offset any General Fund fluctuating operating expenses. Expenses have tracked below budget due to constrained spending and lower expenses due to less use of the building.

 

For the month of November, revenue was higher than the budgeted amount. Expenses were lower than budgeted. This is due to in part to cost management throughout 2020 by all Ministry Teams.

 

The General Fund performance in November further improved the General Fund balance from its lowest point in September 2020. This positive performance still needs to be balanced against the overall reduction in our General Fund Balance from a December 31, 2019 level of $42,415 to a November 30, 2020 balance of $12,732.

 

Benevolence Fund Report

 

The Benevolence Fund is allocated a portion (8%) of total revenues. Benevolence Fund expenditures are limited to the amount allocated to the Benevolence Fund.

 

Year to date (“YTD”) 2020:

 

  • Benevolence Fund allocations and revenue received is $52,886 for January through November 2020, which is $10,144 (23.7%) over budget for the year

  • Benevolence Fund distributions for January through November have been $33,542 which is $9,421 (21.9%) under budget for the year

 

For 2020 year to date, Benevolence funds allocated and received are higher than budgeted. This is mainly the result of strong member contributions to Open Door/Food Shelf and general member Benevolence contributions. During September, a number of Benevolence distributions were made, reducing the gap between budgeted and actual Benevolence expenditures.

 

For much of any year, Benevolence funds distributed are typically much lower than a pro-rata allocation of Benevolence distributions. Typically, Benevolence funds are distributed later in the year after specific needs are identified for organizations that are not specific organizations which are supported annually. This trend is occurring in 2020 as well. Over the full year, Benevolence fund distributions will be approximately equal to Benevolence funds allocated or received.

 

Building Fund Report

For November 2020:

 

  • Building Fund revenues were $16,426

  • Building Fund expenses were $10,094

  • Building Fund Net was a positive $6,331

 

Year to date (“YTD”) 2020:

 

  • Building Fund Revenue is $112,751

  • Building Fund expense is $111,934

  • Building Fund net is a positive $1,716

 

Comments and Observations:

 

Building Fund performance was strongly positive for November with contributions and interest income exceeding the monthly mortgage payment and expenses by $6,331. This represents a wonderful turnaround from the past few months. The November surplus was sufficient to turn the year-to-date deficit through October to a $1,716 surplus aa of November 30, 2020.

 

The result of the year-to-date building fund receipts results in a net increase of $1,716 in Building Fund Balance from January through November 2020. A thank you to Members who helped generate the year-to-date surplus at the end of November by using Tithe.ly to make or adjusting your building fund contribution.

 

The fund balance in the Mortgage Account continues to provide approximately a 5-month reserve for mortgage payments. In addition, St. John’s also has a $102K Certificate of Deposit funded with retained land sale proceeds that may be used to support mortgage principal and interest payments if necessary.

 

Ministry Finance Team Members and How to Get Finance Questions Answered

 

The members of the Ministry Finance Team are always available and willing to answer any financial related questions or provide information about the financial operations of St. John’s. Contact the Church office to be put in touch with a Ministry Finance Team member or if you see Barry Fick, Mark Gelle, Mike Sobota, Lisa Drogemuller, Andy Schultz, or Brad Paulson, don’t hesitate to talk with them for additional information. We thank you for your ongoing financial support and encourage you to remain faithful in your giving as the year continues on and we all experience new challenges.

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