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Finance Committee Update as of 30th June 2022.

7th July 2022

Pleasing Financial Result for Jan-June 2022

Our financial performance for the first 6 months remains solid with a year-to-date surplus of $22,641.80. Whilst pleasing, we expect planned deficits over the winter months to eat into the current surplus and we will also see our activities eat into the accruals transferred in from 2021.

The July figures will include a payment of our insurances of approximately $16,000, which reflects an increase of in excess of $4,000 beyond the planned figure. We have also expended the amount of $11,000 for the Solar panels on the second manse (Alanee’s property).

Our June performance is solid given the reduction of rental income down to $1,290 for the month after recent significant figures for April, May and June. We remain pleased with our Rental Income which is $38,233 against a plan of $36,000 for these 6 months. We expect a continuing pleasing rental performance. Our Direct giving for the first 6 months is $70,355 against a planned figure of $66,000. This is an important result.

Of some concern is our envelope giving which is $34,850 against a plan of $43,200. Open Plate is also behind budget figures being $28,381 against a planned figure of $35,400. We would hope to see some claw back of the Envelopes giving. We remain less confident as to the Open Plate situation, notwithstanding the return to normal service times on Sundays.

Our Costs are managed tightly, with our staff Costs including our ministerial team being close to the Budget figures. There are no other expenditure items which cause concerns going forward.

No other issues of concern. We expect our next several months to reflect deficits and we will hopefully be positioned to again review our Mission and Service contributions in October 2022. This reflects our earlier advices when we reduced the monthly M & S Contributions to $4,000 per month.

Financial Reports to June 2022.

Enclosed are the following reports:

Bank Accounts and Cash Management Issues.

Our Bank Accounts and Investment Accounts are as follows as at 30th June 2022:

We have transferred $25,000 from the U Ethical Account to assist in meeting the July expenditure.

We have committed and will expend $11,000 in terms of the Marriott Bequest in July and the Balance of $23,500 approximately for the balance of the Stained glass / lead light windows in August / September.

There is also the planned expenditure of $10,000 approximately for the second phase of the sign and lighting re the Marriott Bequest. We anticipate that we will expend such in October/ November. Consequently, we are likely to expend most of the remaining Marriot Bequest funds of $50,000 in this calendar year.

Consequently, we estimate that our Cash and Investments balances will likely be as follows for the period ending December 2022.

We remain comfortably placed and we expect that our operations will generate another small deficit for the Financial Year of 2022. This is a continuing reduction of our Cash and Investment Balances as we have been expending our resources beyond the receipts from offerings and bequests and rental income.

Importantly, we have met all maintenance and capital replacement expenditure needs over the last several years. This will diminish and likely be negligible for the coming periods.

We are well positioned to meet our immediate financial needs. This is no cause for complacency as we are eating into the reserves created by our previous Church council and finance committees

Audit 2021 - Almost Finalised.

Please be advised that the Audit has almost been finalised. There are no issues, although we adjusted one item.

We will arrange a meeting with John Yates to sort through the planned changes to the Endowment fund. Our prior issues with the Deferred Maintenance Account have been finalised.

New Reporting and Executive Summary.

Finance Committee and Joanne have successfully finalised the conversion from MYOB to Xero with pleasing results and significant savings in administrative time. We still have a reconciliation issue with GST which should be finalised this next month.

We have also completed a review of our Office and Approvals processes with a successful amended process. As another step forward, we have finalised through an independent arrangement, a new Executive Reporting pack which will deliver a monthly reporting summary of reports to Finance Committee and then to Church Council.

This will modernise and make our reporting processes easier and more user friendly.

Summary.

GWUC remains financially sound, although we will likely experience a continuing pattern of deficits for the Financial Year 2022 and beyond. It is an important continuing lesson, as we are now financially balancing and reliant upon the increasing input of rental income to support diminishing offering receipts whilst our expenses continue to increase beyond inflation. We are continuing to be treading water with our planned giving receipts with no perceptible means of increasing.

Our Budget and planning approach has been committed to ensuring a financially sound arrangement and to give us the financial strength to manage our planned staffing transition and the consequent ongoing staffing matters for 2024 and beyond. The above demonstrates that 2022 appears to be running to plan and we expect the same for 2023. However, the reduced Cash and Investment balances is a consequence which we are living with.

We have also not included any commentary regarding GWUC Endowment Fund, which operates independently from the GWUC Accounts. We will present a detailed paper and recommendations, re the Endowment fund and its future, in the coming months.

KenCoutts
GWUC Treasurer

FinanceReport202207 (last edited 2022-07-19 11:40:05 by DavidMorgan)