ANNUAL FINANCIAL REPORT
PRINCE OF PEACE
CATHOLIC CHURCH
FOR THE PERIOD ENDING JUNE 30, 2006
Dear Parishioner:
We are pleased to present Prince of Peace’s operating results for twelve months ending June 30, 2006 identifying the parish revenues, expenses, and debts.
DEBT SERVICE - NEW CHURCH. The outstanding debt secured with Bank of America for the construction of the church building as of June 30, 2006 was $2,486,100. The bank loans consist of two notes maturing in year 2009 and 2010. The first note, secured in February 2003, had an outstanding balance of $876,400 as of June 30, 2006. The second note secured in December 2003 had an outstanding balance of $1,609,700 as of June 30, 2006. When the notes mature, the projected outstanding balance at that time which is expected to be approximately $1,850,600 will be refinanced.
Interest and principal payment for both loans is $22,700 per month. The average weekly offertory collections during the past twelve months were $22,800. While this represents an increase of approximately $1,100 over the average weekly collections for the prior year, the average weekly collection for the coming year must be at least $26,000 to avoid projected cash flow deficit for the fiscal year ending June 30, 2007 of $63,000. The actual cash flow deficit after payment of debt service (principal and interest) during the fiscal year ending June 30, 2006 was approximately $83,000. This cash flow deficit consumed our reserve funds.
OPERATING RESULTS
Operating Expenses for the year ending June 30, 2006 were only $3,000 higher (less than 1%) than the operating expenses for the prior year. Net operating revenues were $117,400, an increase of approximately $57,000. Debt Retirement Fund revenues were $71,200, approximately $18,000 lower than the amount collected in the prior year. Had it not been for a number of Parishioners who continued to make generous donations to the building fund/debt retirement fund, our cash flow deficit would have been much larger.
We encourage all Parishioners to consider making a monthly contribution to the debt retirement fund so that the Parish can use the regular offertory collections for operations and avoid incurring a cash shortfall this coming year. In addition, any excess debt retirement fund contributions received will be used to pay down the debt quicker to reduce the amount of debt we will have to refinance in 2009 and 2010 when the current notes mature.
The parish books are open to everybody and we encourage everyone to have full understanding of the financial needs of our church. We will be happy to review and explain further anything in the attached financial statements for those who may have any questions. Thank you and God bless you all.
Very Rev. Steven L. Brovey, V.F. Ellen K. Foody Lito C. Carandang
PASTOR Chair-Finance Committee Business Administrator
TWELVE MONTHS
PRINCE OF PEACE CATHOLIC CHURCH
ANALYSIS OF CASH OPERATING REVENUE AND EXPENSES
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ACTUAL |
ACTUAL |
BUDGET |
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OPERATING REVENUE |
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7/2005-6/2006 |
7/2004-6/2005 |
7/2006-6/2007 |
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Offertory & Designated |
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$1,206,800 |
$1,144,700 |
$1,322,400 |
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Other Income |
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4,900 |
8,500 |
5,000 |
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Religious Education Fees |
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15,500 |
13,200 |
19,600 |
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TOTAL ASSESSABLE PARISH
REVENUE |
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1,227,200 |
1,166,400 |
1,347,000 |
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OPERATING EXPENSES |
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Administrative Expenses |
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684,600 |
636,600 |
658,800 |
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Church & Rectory
Expenses |
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92,400 |
126,400 |
135,100 |
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Operations &
Maintenance |
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313,900 |
314,400 |
353,900 |
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Religious Education |
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23,200 |
34,500 |
26,600 |
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TOTAL OPERATING EXPENSES |
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1,114,100 |
1,111,900 |
1,174,400 |
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NET OPERATING RESERVE |
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$113,100 |
$54,500 |
$172,600 |
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__________________________________________________________________________________ |
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BUILDING FUND COLLECTION |
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71,200 |
89,000 |
35,000 |
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INTEREST ON LOANS |
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129,200 |
136,900 |
122,200 |
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PRINCIPAL |
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142,600 |
135,900 |
150,900 |
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CASH OVER (SHORTFALL) |
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-$87,500 |
-$129,300 |
-$65,500 |
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ANALYSIS &
COMMENTS
Offertory Collections and Debt. Despite the 5% increase in offertory and designated revenue, our total revenues still fell short of covering our total expenses and debt payments during the year ended June 30, 2006. The Parish staff closely watched their expenditures and as a result, our operating expenses were only .2% higher than the prior year.
Church & Rectory Expenses. The Church & Rectory budget for 2006-2007 has been increased for the addition of contract instrumentalists, an evening organist and includes the cost of flowers and candles.
Religious Education. Religious Education includes nursery, junior/high school, RCIA and adult education expenditures.