ANNUAL
FINANCIAL REPORT
PRINCE OF PEACE
CATHOLIC CHURCH
FOR SIX MONTH PERIOD ENDING DECEMBER 31, 2006
Dear Parishioner:
We are pleased to present Prince of Peace’s operating results for six month period beginning July 1, 2006 and ending December 31, 2006 identifying the parish revenues, expenses, and debts.
OPERATING RESULTS
The offertory revenue for the first six months of the fiscal year 2006-2007 increased 20%, reaching $682,397 from $567,487 for the same period last year. However, operating revenue was approximately $10,000 below our budgeted amount. The Parish staff diligently controlled administrative costs for the period so that our actual expenses were approximately $6,000 less than those for the same period last year and were approximately $16,000 below budget. Expenses for operations and maintenance were approximately $28,000 higher than last year due to in part to higher insurance costs but were still approximately $9,000 below budget for the same period.
DEBT SERVICE
The outstanding balance of debt secured with Bank of America for the construction of the church building as of December 31, 2006 was $2,412,400. 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 $851,000 as of December 31, 2006. The second note secured in December 2003 had an outstanding balance of $1,561,400 as of December 31, 2006. When the notes mature, the projected outstanding balance at that time which is expected to be approximately $1,850,600 will be refinanced.
Parishioners contributed $35,858 toward the retirement of the debt during the six month period ending December 31, 2006. This represents a decrease of approximately $4,000 from the same period last year. We encourage all Parishioners to continue making monthly contributions to the debt retirement fund so that the Parish can use the regular offertory collections to support our increasing capacity and program developments. The debt retirement fund contributions will be used to pay down the debts quicker to reduce the amount that is due to be refinanced in 2009 and 2010 when the current notes mature.
The parish books are open to everybody and we encourage everyone to have full understanding of the financial needs of our church. We will be happy to review and explain further anything in the attached financial statements for those who may have any questions. Thank you and God bless you all.
Very Rev. Steven L. Brovey, V.F. Ellen K. Foody Lito C. Carandang
PASTOR Chair-Finance Committee Business Administrator
SIX MONTHS
PRINCE OF PEACE CATHOLIC CHURCH
ANALYSIS OF CASH OPERATING REVENUE AND EXPENSES
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ACTUAL |
ACTUAL |
BUDGET |
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OPERATING REVENUE |
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7/06 -
12/2006 |
7/05-12/2005 |
7/06-12/2006 |
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Offertory & Designated |
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$ 682,397 |
$ 567,487 |
$ 692,495 |
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Other Income |
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3,163 |
7,079 |
2,700 |
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Religious Education Fees |
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11,400 |
14,047 |
18,000 |
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TOTAL ASSESSABLE PARISH
REVENUE |
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696,960 |
588,613 |
713,195 |
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OPERATING EXPENSES |
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Administrative Expenses |
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314,088 |
320,525 |
330,361 |
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Church & Rectory
Expenses |
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56,351 |
47,170 |
67,709 |
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Operations &
Maintenance |
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168,717 |
140,944 |
177,482 |
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Religious Education |
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12,234 |
8,971 |
15,410 |
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TOTAL OPERATING EXPENSES |
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551,390 |
517,610 |
590,962 |
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NET OPERATING RESERVE |
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$ 145,570 |
$ 71,003 |
$ 122,233 |
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__________________________________________________________________________________ |
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BUILDING FUND COLLECTION |
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35,858 |
39,700 |
25,200 |
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OTHER NON-ASSESS.
REVENUE |
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27,560 |
18,355 |
24,290 |
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INTEREST ON LOANS |
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51,991 |
66,025 |
61,825 |
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PRINCIPAL
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61,389 |
70,031 |
73,689 |
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CASH OVER (SHORTFALL) |
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$ 95,608 |
-$ 6,998 |
$ 36,209 |
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ANALYSIS &
COMMENTS
Offertory Collections. The offertory and designated revenues are 20% greater than last year’s collections but are still slightly lower than the projected numbers for the same period.
Operating Expenses. Church and rectory expense were slightly higher than last year because of the addition of one priest this year. Operations and maintenance were also higher this year due in part because of increased costs for insurance. Despite the increases in costs over the same period last year, the actual costs during this year were less the amounts budgeted for this year.