MINISTRY FINANCE TEAM REPORT

 

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The Ministry Finance Team presents this Financial Performance Report (“FPR”) for February 2022 to the Saint John’s Lutheran Church Congregation and St. John’s Lutheran Church Council.

 

We continue to manage worship and programs in light of the ongoing Covid pandemic, we have resumed in-person worship, added mask requirements, revived in-car worship, and welcomed a new member class in early November. These efforts help expand the reach of St. John’s to new audiences, fulfilling our Mission.

 

For the first two months of 2022, revenues have been lower than budgeted. Financial results for January and February shows that expenses are trending in line with the budgeted amounts, while offerings and gifts are below budgeted levels. St. John’s has reserves available to offset the revenue shortfalls for some months. We anticipate that as the COVID pandemic moderates, and more in-person activity occurs at St. John’s revenues will trend closer to budgeted amounts.

 

With the Pandemic hopefully easing in the next few months, we are cautiously optimistic that 2022 will result in positive changes to ministry and financial operations. Our goal is to meet the needs of the St. John’s community and combine lessons learned over the past two years as we move forward to eventual full in-person worship services and continued live video streaming.

 

General Fund Report

 

For February 2022:

 

  • Offering revenue was $37,097 which is 18% below budget for the month.

  • General Fund revenues were $37,689, which is 19% below budget for the month.

  • General Fund expenses were $51,393, which is on budget for the month.

  • General Fund net performance was a negative $13,704 for February, which is 278% greater than budgeted.

 

Year to date 2022:

 

  • General Fund revenue is $71,812 which is 16% below budget for the year.

  • General Fund expenses are $94,958, which is 8% below budget for the year.

  • General Fund actual net performance compared to Budget is a negative $4,981 from January through February

 

Comments & Observations:

 

February was a very challenging month for giving to St. John’s. We budgeted for deficits in January and February, so a shortfall is not a surprise. We also budgeted using some of the remaining PPP funds and funds allocated to an operating reserve to moderate the effect of a monthly deficit. We will continue to watch how actual financial results compare to budgeted and keep the Council and Congregation informed of future developments.

 

Expenses are coming in close to budget, but increased energy costs may pose a challenge later in 2022. We are confident that the Ministry Teams will continue to manage their budgets as good stewards and prudently spend budgeted funds to achieve maximum results for the amount spent.

 

Benevolence Fund Report

 

The Benevolence Fund is allocated a portion (8%) of total offering revenues and all of any benevolence contributions from dedicated contributions. Benevolence Fund expenditures are distributed periodically according to need and the amounts available from the Benevolence Fund.

 

Year to date 2022:

 

  • Benevolence Fund allocations and revenue received is $6,626 for January through February 2022, which is 3% under budget for the year.

  • Benevolence Fund distributions for January through February 2022 were $2,758 which is 16% under budget for the year.

 

With funds from 2021 transferred to a Benevolence Investment Fund balance, the Benevolence fund begins 2022 in good financial shape to respond to St. John’s and larger community needs in 2022. Benevolence requests are considered and acted upon by Church staff and Ministry Teams as appropriate.

 

Building Fund Report

For February 2022:

 

  • Building Fund revenues were $8,807

  • Building Fund expenses were $10,094

  • Building Fund Net was a negative $1,287

 

Year to date 2022:

 

  • Building Fund Revenue is $17,387

  • Building Fund expense is $20,188

  • Building Fund net is a negative $2,801

 

Comments and Observations:

 

Building Fund performance has lagged budgeted levels early in 2022. The overall Building Fund is in a strong financial support to the Building Fund throughout 2022, but we will want to monitor overall financial performance as we move further into 2022 and an expected increase in activity at the Church campus in Lakeville.

 

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 Mark Gelle, Mike Sobota, Lisa Drogemuller, Andy Schultz, Brad Paulson, or Treasurer Barry Fick, 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.