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Calvary by the Sea Lutheran Church & Montessori School Calvary by the Sea Lutheran Church & Montessori School

Budget Hearing Meetings & Budget Preview! Budget Hearing Meetings & Budget Preview!

Budget Hearing Meetings & Budget Preview!

Posted on Thu, Feb 5, 2015

Review the 2015 Profit & Loss Statement, 2015 CBTS Budget and the Treasurer's Report

Review the Treasurer's Summary, 2015 Budget Detail, 2015 Budget Summary and the 2015 Budget Working Matrix in preparation for Budget Reviews (Feb 8, Feb 15) and the Annual Meeting Feb 22.

 

There will be budget hearing meetings available to the congregation. Question and Answer sessions for all members on the 2015 budget. Meetings will be held at 8:30 a.m. and 11:30 a.m. on February 8th and 15th in the grooms room.

-Peggy Trout

   Discussion: Budget Hearing Meetings & Budget Preview!
Peter Matsumoto · 2 years, 3 months ago
Dear Peggy,                                                                                                  2-16-15 Thank you for your comprehensive Treasurer’s Report that allowed the congregation to better understand the financial position of the church and for your clarification of the budget issues as we enter the 2015 fiscal year. I have reviewed the Treasurer’s Report, (TR), the 2014 Actual Profit and Loss, (P&L), the 2014 Actual Balance Sheet, (BS), and the 2015 Proposed Budget and have the following questions and suggestions: 1.  The total expenses in the TR are $807,258, while the total expenses in the actual P&L are $818,698, a difference of $11,440, why is there a difference? 2.  The actual giving in the TR is $278,581, while the P & L is $281.396, a difference of $2,815, why is there a difference?  3.  The actual Japanese Wedding in the TR is $653,975, while the P & L is $673,775, a difference of $19,800, why is there a difference? 4.  In the discussion of the 2015 Budget Summary in the TR, it was noted that the church will hold $100 K in retained earnings and up to $100 K to update the sanctuary, does this mean a total of $200K will be used from Retained Earnings in 2015?  I suggest that a Budget Balance Sheet as of December 31, 2015, be prepared so we can see how the reserves within the Retained Earnings account would be utilized.  5.  Why are Local Weddings, account 3132, at $2,400, so low in relationship to the Japanese Weddings at $673,775?  Could this part of the business be increased through more marketing and publicizing the upgrades to the sanctuary? 6.  Why are Japanese Bibles, account 5095, at $36,800, so high?  The Japanese Bible expenses are about the same as the Synod/Church Mission and the Angel Network.  Are the Japanese Bibles of equal value to the church as the Synod/Church Mission and Angel Mission?   7.  Why is there such a large difference between Music Calvary Choir, account 5549, at $17, compared to Music-PAC, account 5551, at $551, a difference of $534? 8.  Since Japanese Weddings account for the majority of the revenues, about 70%, where are the associated expenses tied to these revenues?  I suggest that we have a separate expense category for the Japanese Weddings so we can determine the net income for the weddings after expenses.  As an example, Family Retreat Reveunes, account 3181, is $6,294, and the associated expense, account 5702, is $9,241, so the net is a deficit of $2,947.  In similar fashion, we should be able to determine the net of the largest revenue account, 3131, so we can make better decisions about investments to increase this portion of our business. 9.    Electric, account 6010, is our largest utility expense at $27,658.  Although this is the largest utility expense this is probably a big improvement, (reduction), over previous years.  However, since this is the largest utility expense we need to continue our focus on reducing this expense.  Have we considered a solar system for the church to supply our power needs? 10.  The Pastor’s actual 2014 Medical/Dental Insurance, account 5109, is $23,227, while the 2015 Budget reflects $17,629, a difference of $5,598, why was the amount reduced in the budget?          11.  The actual 2014 Accounting Fees, account 5495, was $4,305, while the 2015 Budget reflects $500, a difference of $3,805, why the reduction?  12.  The actual Professional Membership & Fees, account 5498, was $2,150, while the 2015 Budget reflected $5,005, an increase of $2,855, why the increase?  13.  The 2014 actual Preschool Utilities Reimbursement, account 6050, was $6,000, while the 2015 Budget reflected the same amount of reimbursement of $6,000, why aren’t the preschool reimbursement amount based on their actual usage?  14.  The Church Net + Taxes, account 8005, for the actual and budget of $203,245 and $254,288, respectively, are the largest line item for the expenses, and yet, the figured is reflected as one lump sum.  I suggest that this one line item be broken down so readers may analyze the largest expense component.  While this component of over $200,000 is reflected as a lump sum item The Employee Benefits, account 8100, is broken down by the various categories.  Also, while we lump sum the largest expense in the P & L, a material account, we detail minuscule items such as the Background Checks, account 5499, for $4, Vestments Expenses, account 5130, for $14, and Music Calvary Choir, account 5549, for $17. I suggest that account 8005 be broken down and smaller accounts less than $100 be consider to be lump summed. The title of account “8000 – Payroll Outsourced”, is confusing.  From the title it could be interpreted that the account are payments to vendors who are “Outsourced”.  On the other hand, because of account 8005, Church-Net+Taxes, it can be assumed that this is a payroll account for church employees.  I suggest that the account title, for account 8000, be changed to “Employees Payroll”.     The questions and suggestions that I brought up would not have been possible without your diligent efforts and perseverance to provide clear financial statements that are meaningful, thoughtful, and informative.  Peggy, if you choose to use any of these questions at the annual meeting that would be at your discretion and fine with me.  On the other hand, if you decide to answer only me personally that would also be fine.  I look forward to your response.  I truly appreciate your conscientious effort and the information that you’ve provided.  Much Mahalo.                                                                        Aloha,                                                             Peter Matsumoto                                                             Calvary Member  

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