St. John’s Episcopal Church Treasurer’s March Report (March 23, 2021)

Finance and Audit Committees

The regular monthly meeting of the Finance Committee was held on March 16. Joining me were members Andrew Bird, Fawn Hacker, R.C. Laird, and Christian MacMillan. We reviewed our current financial condition and plans to address our operating deficit and generate additional revenue. We still need to stand up a small Audit Committee, ideally comprised of three members with a background in finance, which would meet only twice a year, before and after the annual audit in June. Pat Le Roy and Lou MacMillan have agreed to serve. If anyone from the congregation is willing and able to join them, please contact me (bobleroy05@gmail.com).

Our Current Financial Condition

Our Budget Report for February 2021 may be found by clicking here or by going to our website, www.stjohnsoly.org, clicking on “About Us”, then clicking on “Our Vestry” and scrolling to the bottom of the page. The Net Income year-to-date of $89,390.74 includes the receipt of $115,000.00 from our unrestricted account with the Diocese of Olympia Master Trust, withdrawn to pay for the asbestos abatement work recently completed in the sanctuary. Payment for the work in the amount of $112,682.00 was made earlier this month. Income from Pledges year-to-date is over budget by $5,084.78 (13.4%).

We have received, signed, and returned documents from Bessemer Trust in New York City regarding a $10,000.00 unrestricted cash bequest and hope to receive the funds in early April. We have four additional sources of funds for operating expenses:

• Congregational Grant for Parish Health Work (approved but not disbursed) = $21,300.00
• Diocese of Olympia Master Trust General (Unrestricted) Account = $46,600.00
• Economic Injury Disaster Loan (EIDL) Account at Edward Jones = $140,011.11
• Paycheck Protection Program (PPP), Round 2, Account = $63,367.00

We have the following payables due as soon as possible:

• Church Pension Group = $29,429.00        
• Diocese of Olympia (14.5% of $60,000.00 withdrawn from the DIF and applied to operating expenses) = $8,700.00        
• Diocese of Olympia (14.5% of $54,577.00 in Round 1 PPP Funds applied to operating expenses) = $7,913.67        
• Diocese of Olympia (14.5% of $72,000.00 in EIDL Funds applied to operating expenses) = $10,440.00
• Total = $56,482.67

At its meeting on March 18, the Vestry approved the withdrawal of $57,000 from our EIDL Account to pay these bills in full.

Given current levels of giving and operating expenses, particularly personnel costs, we continue to project a significant budget deficit for 2021, -$140,637.34 as of February 28. Our recent receipt of $63,367.00 in Round 2 PPP Funds reduces the projected deficit to -$77,270.34. We propose to address the deficit by taking the following steps:

• Placing the Music Ministry on hiatus effective June 1 until such time as we can raise sufficient funds to restore and sustain it.
• Initiate a series of concerts to generate revenue for the Music Ministry and engage the broader community.
• Following completion of the upcoming forensic audit and selection of a new Treasurer (hopefully, no later than June 1), I will transition to a new role focusing on stewardship and development for both the St. John’s and San Juan communities.
• Establish a Patrons’ Society for the Concert Series and the Music Ministry.
• Establish a Planned Giving Society.
• With the return of in-person worship and activities at St. John / San Juan, set a goal of returning Individual Contributions (Pledges, Contributions, and Loose Plate Offerings) to 2018 levels by December 31. This ambitious goal, if achieved, would increase our revenue by over $111,000.

Respectfully submitted…

…Bob Le Roy, Treasurer