October 6, Per our October 2017 meeting of the Presbytery, the PSL has begun the process to venture to a zero-based budget.

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1 TREASURER S REPORT October 6, 2018 Action Items: Approval for first quarter CPUMI draw for YAV Per Capita Proposal (separate document) Budget Proposal (separate document) PSL FINANCIAL HIGHLIGHTS PLEASE NOTE: If you have had any issues with our financial statements, or the way we have been doing anything dealing with our finances, now is the time to say something. This transition that we are in provides us with a clean slate where we will be able to have a little more control and make our accounting services what we want them has brought about quite a bit of change and I want to ensure that things are the way you want them. If not, let s make a plan to get some things corrected. PSL Operating cash on hand as of October 6, 2018: PSL Operating Checking: $28, PSL General Savings $25, Per our October 2017 meeting of the Presbytery, the PSL has begun the process to venture to a zero-based budget. What this meant: Every penny received in 2018 Remittance and Special Offerings for PSL support should be held in an account throughout the year (former Office Restoration Savings Account). ACTUALITY: The PSL averages roughly $325,000 spent in a normal year has not been normal as we are still recovering from the flood. While last year we attempted to find ways to trim the budget, we are not able to rely just on restricted funds to fund a full year at this time. Based on the cash flow, allowed by Presbytery, we should have enough to cover those things that are not fund specific when we get to that point. CASH FLOW The chart below provides for the internally designated funds from where Presbytery decided we can draw operating capital in February of Below is an updated chart of the accounts that were proposed at Presbytery and the funds associated with that account. Gentilly Proceeds (3211) $112, Luling (3224) $ ,654.56

2 There are several Presbytery obligations that are tied specifically to restricted funds. It appears that over the last several years, General Fund dollars were used to fund restricted obligations. While on the surface, it appeared the PSL was always in the red, the fact is that funds were not being pulled from the restricted account to fund specific items (ex. Salary matching grants, Youth Coordinator Salary, etc.) I understand why this was done this way as you want to try to keep the restricted fund balance at a high amount to ensure the longevity of the Presbytery. We have money in the PSL Savings account due to withdrawals from the Restricted account as outlined below. Money was moved into the Savings account as checks were cut from the General fund account. PSL Savings were reimbursed. It is my hope that the Savings account will be used to fund the 2019 operating budget as we continue to venture toward zero based. ASSETS AND WEALTH ASSESMENT I have online access to our portfolio, so I will be able to access our amounts without having to wait on a member of our team to respond. I CANNOT MAKE ANY CHANGES ON THE SITE. Please keep in mind that funds that are with our Wealth and Asset Management Team are the same funds that are referred to on our PSL Restricted Investment worksheet. While we refer to them as different funds (Luling, Gentilly, CPUMI, etc.) they are one lump sum of money tied to a single portfolio. Portfolio (Restricted Fund) position as of October 6, Cash and Equivalent: $308, % of our assets. (includes funds from Read claim) -Equities: $666, % of our assets. -Fixed Assets (Bonds and Mutual Funds): $1,039, % of our assets. TOTAL PORTFOLIO: $2,015, (a difference of -60, since the June Presbytery meeting) This time last year there was $2,263, in the restricted fund account. As of this writing, this year, I have withdrawn $275,000 to provide for fund specific obligations: YAV CPUMI draw for 2017 (Presbytery approved in Feb of 2017) 7, Okra Abbey (moving funds from Restricted to Checking) 19, Finishing the Presbytery Office (Council approved Jan of 2018) 60, Amount listed is above what insurance paid. Salary Matching Grant (First- New Orleans) Council approved 112, summer of 2017 Matching Grants from former CDC account (Renegade Gospel: 32,000 7,500 and Okra Abbey 25,000) Demolishing Read Blvd property 94,009 TOTAL 325, Please note: the additional 50, (325, in obligations 275,000 withdrew) was taken out of the PSL General Fund. Please note: We have received a transition package from the AC of First Presbyterian Church in New Orleans at a total of $64, to be paid over July 2018-June The funds should be pulled from the PSL General Fund.

3 FINANCIAL REVIEW vs. AUDIT The last full financial audit was done for the 2015 year by Postlethwaite and Netterville at a cost to the PSL of $16,640. We were in the documentation gathering phase for the 2016 audit for P&N when SLAP collapsed in October of The Book of Order provides: G Finances Each council shall prepare and adopt a budget to support the church s mission within its area. A full financial review of all financial books and records shall be conducted every year by a public accountant or committee of members versed in accounting procedures. Reviewers should not be related to the treasurer(s). Terminology in this section is meant to provide general guidance and is not intended to require or not require specific audit procedures or practices as understood within the professional accounting community. With this section, as well as our finances, in mind, we have turned over financial records to local accounting firm Carleton & Company to prepare our 2016 and 2017 financial reviews. This process will be cheaper than what are used to spending with the audit. I am drafting proposed changes to the financial procedures of the Presbytery and I am going to suggest that financial reviews be done each year with a possible full audit completed every five years. I am looking at the financial future of the PSL and I cannot see spending close to 20,000 each year on just a financial review when we have so many other financial obligations. Upon completion of the financial reviews, we will comprise a plan of action with Carleton & Company to ensure any deficiencies are addressed. From there we will iron out our financial procedures and depend on Quickbooks for our transaction maintenance and financial reports as we have obtained a Quickbooks account through Carleton & Company. The plan is to have everything finalized for the start of Until then, please be patient as there are several aspects of PSL finances that we are trying to work through before the end of the year. CHART OF ACCOUNTS The Chart of Accounts will be revised as we get settled in with Carleton and Company and the separation of duties has been finalized. OTHER PSL ACCOUNTS PSL CD The Presbytery has a $3, CD with Capital One with an interest rate of 2.08%. The CD was started in 2014 with $3,000 and has gained $45.35 in four years. CD is set to mature on The Finance Committee agreed to close the CD however the decision was made after the close date this year (June 4,2018) FLOOD ACCOUNT

4 There is one Flood checking account and one Flood savings account, both maintained at Capital One Bank. Flood operating cash on hand as of October 6, 2018: Flood Operating Checking: $7, Flood Operating Reserve (savings): $117, Funds for Disaster Assistance Personnel payroll and credit cards are paid out of the PSL General Fund and reimbursed monthly TORNADO ACCOUNT Funds were deposited in the PSL General Fund. -In February of 2017, we received $7,500 for the tornado from a PCUSA grant. -As of August 31, 2017, we have received $1,285 in donations for tornado victims. We have received no additional funds for tornado relief. YAV FINANCIAL HIGHLIGHTS There is one YAV checking account and one YAV savings account, both maintained at Chase bank. YAV operating cash on hand as of October 6, 2018: YAV Operating Checking: $56, YAV Operating Reserve (savings): $32, In 2017, Presbytery approved a draw, in accordance with the Restricted Funds manual, of 3% of the CPUMI principal. That amount was $7, and funds have been deposited into the YAV account. ACTION ITEM: During the October 2018 meeting of Presbytery, I will request an action item to approve the 2019 draw upon close of the final quarter of the Restricted Fund account to ensure the CPUMI draw is processed timely. Funds for YAV payroll and credit card are paid out of the PSL General Fund and reimbursed monthly. OKRA ABBEY A checking account has been set up strictly for use with Okra Abbey at Chase Bank. Okra Abbey operating cash on hand as of October 6, 2018: Okra Abbey Operating Checking: $74, (this includes the 25,000-matching grant from PSL) Funds for Okra Abbey payroll and credit card are paid out of the PSL General Fund and reimbursed monthly. RENEGADE GOSPEL A checking account has been set up strictly for use with Renegade Gospel at Capital One Bank.

5 Renegade Gospel operating cash on hand as of October 6, 2018: Renegade Gospel Operating Checking: $ CAMPUS MINISTRY No reports to review for this meeting. All campus ministry payouts have been finalized. PROPERTY MANAGEMENT (INSURANCE) READ BLVD The Read Blvd. lot has been cleared, finally! There were a couple of weeks right after receipt of the permits where things went haywire but with Lee Randall s help, we were able to get everything on track. We have also had one neighbor express interest in purchasing the land behind their house. We plan to contact a realtor to get some information on the area and potential pricing with comps. FELICITY STREET (NEW ORLEANS) We received a citation for high grass and debris for this property. Lee Randall secured a company who took care of the grass and has agreed on a contract for maintenance. As mentioned in the last report there is quite a bit of work that must be done at the property including replacing the roof, replacing flooring, and termites. PSL Council has approved a proposal that will allow for the sale of this property. MAIN STREET (LAPLACE) We plan to contact a realtor to get some information on the area and potential pricing with comps. MISCELLANEOUS BATON ROUGE COMMUNITY SUPPORT PSL received a $7,500 grant from PDA to support community recovery in Baton Rouge in light of traumatic events that occurred during the summer of This money was placed in the PSL General Fund. Use of these funds remains under consideration. ONLINE GIVING/PAYMENTS Just a reminder: If you would like to make a donation to the Presbytery of South Louisiana, the Young Adult Volunteers, the Renegade Gospel or Okra Abbey New Worshipping Communities, you can do so through our site. The link to online giving is:

6 avdsozue7kg0nfx2nso8ldukguguf396vbz6otpk24gbkoii83tfxpmuxhubq5z7ap5jvmperc4z eyhckczhesjgnqmz5b-6dx0eroulbf8k_k6meiqemsvy=&ver=3 Camp Agape will be added to this list this month. You will be able to donate to Camp Agape all year long! If you know of any other missions that would benefit from being able to accept donation or payments online, please let me know.