By clicking on the link at the bottom of this Corner you will find a consolidated financial statement for the period July 1, 2013 – December 31, 2013 with a comparison to the same period one year ago. I will spend the remainder of my column discussing the revenue and expenses as well as explaining any large variances recognized. My apologies to those of you bored by my column this week but this financial discussion is necessary so that we remain transparent.
On the income side, you will notice first and foremost that regular offertory has increased substantially and is up over 7% compared with the same period last year. As a matter of fact this increase continues to be recognized fiscal year to date. When budgeting for 2013-2014, we kept our regular offertory flat (no increase) with regards to last year due in large part to the great fiscal year we had in 2012/2013. The thought process was that we could not replicate those kinds of increases year to year even with the better than average membership growth we experienced and an improving economy.
Votive candle offering continues to be a great revenue source with income increasing over 25% versus last year. Restricted gifts and donations is off substantially due to the fact that many of those gifts were to complete the new lighting system. Stole fees are also off versus last year due in part to our decision to no longer host destination weddings.
The newly remodeled Diving Gift Boutique really experienced astronomical growth with gross revenue increasing well over 100%. I guess the old adage that “if you build it they will come” really applies in this situation. The new renovation and increased inventory have been very well received by everyone. Memorial garden income is off considerably versus last year. The reasoning behind this large variance is as follows. At the end of 2012, we announced that rates would increase from $1,200 to $1,500 for a plot in the garden. There was a massive influx of buyers at the tail end of 2012 as all those waiting in the wings came out in force to save $300.00.
On the expense side, we recognized an overall increase versus the first six months of our fiscal year in 2012-2013, however, there are reasonable explanations for this variance.
Salary expense has remained very stable over that past several years. We did recognize a modest 2.5% increase, but we also had some turnover in the first half of the fiscal year.
Repairs and maintenance expense decreased, however, there are numerous budgeted expenses not recognized in this period. Church renovations decreased dramatically as we did not have the expense of a new lighting system in this period. As you know, because of a lightning strike in July, we had to replace our entire phone system and much more. The expense is recognized here, however, the ancillary expenses were much higher than expected also. Basic utilities actually decreased slightly. Property and liability expense which is normally recognized in September was instead recognized at the tail end of the prior fiscal year and will again be recognized in June of this year.
Rent expense decreased with the purchase of a new condominium in which Fr. Jim now resides. We still have one rental property for Fr. Len.
Under ministry expense, we can begin with music expense which increased dramatically due to timing and the purchase of A LOT of new sheet music as well as unexpected repairs to the sound system. The budget for Families in Christ was increased to accommodate a new format this year explaining the variance in Family Life. Due to countless unexpected events, pastoral expense increased 150% over the prior year, although there should be less disparity as we move through the remainder of the fiscal year. Finally, liturgy expense increased by 100% due to the purchase of our new Missals which encompass three years versus one.
Under general and administrative, we had a large variance in subsidy to parishes which will be recognized as we move through the remainder of the fiscal year. In addition, we have recognized all of our Tuition expense in the first half of the fiscal year rather than expensing after Easter. Office expense increased dramatically due to the lightning strike and subsequent new phone system. Much of the expense was for technical support and equipment for our IT system.
Under other expenses, increased inventory and expense to remodel the boutique resulted in a large variance with regards to the new Gift Boutique. The replacement of old markers in the Memorial Garden also resulted in a dramatic increase in memorial garden expenses. Ultimately, the new change will be aesthetically pleasing and result in greater future sales.
In His work together,
Scott Schlossberg, MBA
General Manager
Click here for financial statement for the period July 1, 2013 – December 31, 2013