Creating the Parish of the Future

Transcription

1 Creating the Parish of the Future A Presentation to: Association of Parish Business Administrators December 10, 2009

2 Agenda Update on Financial Trends & Summary of Specific Observations A Few Minutes with Mike Kratochvil Update on Financial Trends & Summary of Specific Observations Benchmarking and Beyond 2

3 Parishes in Study Category Envelope & Plate Collections Parishes/Schools Last Year Parishes/Schools This Year I Less than $250K 3/0 5/0 II $250K to $750K 25/11 31/13 III $750K to $1.5M 14/9 18/15 IV More than $1.5M 7/7 7/6 Total 49/27 61/34 3

4 What Trends Did We Study? Parish Contributions Total Parish Operating Revenues Total Parish Operating Expenses Including Subsidy to School Parish Salary and Benefits School School Tuition Total School Operating Revenues Total School Operating Expenses School Salary and Benefits School Enrollment 4

5 Where Did the Information Come From? Directly Supplied to CFC by Parishes Covers Fiscal Years The names have been changed to protect the innocent - Announcer for Dragnet 5

6 If you torture the data long enough, it will confess. - Ronald Coase 6

7 Overall Trends Contributions Flat Declining School Enrollment Generally Rising Expenses Generally Declining Total Revenues 7

8 Contribution Category 1 - <$250K Parish Comparison (Excludes Parishes with Charter School Income) Contribution Category 1 <$250K - Collective Analysis of Parish Operating Revenues, Contributions, Operating Expenses, and Salaries/Benefits 250, , , ,000 50, Operating Revenues (Parish) Contributions Total Operating Expenses (Parish) Salaries/Benefits (Parish) 8

9 Contribution Category 1 - <$250K Parish Comparison (Excludes Parishes with Charter School Income) Contribution Category 1 <$250K - Collective Analysis of Parish Operating Revenues, Contributions, Operating Expenses, and Salaries/Benefits 250, , , ,000 50, Operating Revenues (Parish) Contributions Total Operating Expenses (Parish) Salaries/Benefits (Parish) 9

10 Contribution Category 1 - <$250K Parish Comparison (Includes Parishes with Charter School Income) Contribution Category 1 <$250K - Collective Analysis of Parish Operating Revenues, Contributions, Operating Expenses, and Salaries/Benefits 250, , , ,000 50, Operating Revenues (Parish) Contributions Total Operating Expenses (Parish) Salaries/Benefits (Parish) 10

11 Contribution Category 2 - $250K - $750K Parish Comparison (Excludes Parishes with Charter School Income & Financially Challenged Parishes) Contribution Category 2 $250K - $750K - Collective Analysis of Parish Operating Revenues, Contributions, Operating Expenses (with and without School Subsidy if applicable), and Salaries/Benefits 800, , , , , , , , , , , , , , ,000 50, Operating Revenues (Parish) Contributions Total Operating Expenses (Parish) w/school Subsidy Salaries/Benefits (Parish) Total Operating Expenses (Parish) w/o School Subsidy 11

12 Contribution Category 2 - $250K - $750K Parish Comparison (Excludes Parishes with Charter School Income & Financially Challenged Parishes) Contribution Category 2 $250K - $750K - Collective Analysis of Parish Operating Revenues, Contributions, Operating Expenses (with and without School Subsidy if applicable), and Salaries/Benefits 800, , , , , , , , , , , , , , ,000 50, Operating Revenues (Parish) Contributions Total Operating Expenses (Parish) w/school Subsidy Salaries/Benefits (Parish) Total Operating Expenses (Parish) w/o School Subsidy 12

13 Contribution Category 2 - $250K - $750K Parish Comparison (Excludes Parishes with Charter School Income & Includes Financially Challenged Parishes) Contribution Category 2 $250K - $750K - Collective Analysis of Parish Operating Revenues, Contributions, Operating Expenses (with and without School Subsidy if applicable), and Salaries/Benefits 900, , , , , , , , , Operating Revenues (Parish) Contributions Total Operating Expenses (Parish) w/school Subsidy Salaries/Benefits (Parish) Total Operating Expenses (Parish) w/o School Subsidy 13

14 Contribution Category 2 - $250K - $750K Parish Comparison (Includes Parishes with Charter School Income & Financially Challenged Parishes) Contribution Category 2 $250K - $750K - Collective Analysis of Parish Operating Revenues, Contributions, Operating Expenses (with and without School Subsidy if applicable), and Salaries/Benefits 900, , , , , , , , , Operating Revenues (Parish) Contributions Total Operating Expenses (Parish) w/school Subsidy Salaries/Benefits (Parish) Total Operating Expenses (Parish) w/o School Subsidy 14

15 Contribution Category 2 - $250K - $750K School Comparison 1,200,000, 1,100,000 1,000, , , , , , , , , ,000 - Contribution Category 2 $250K - $750K - Collective Analysis of School Operating Revenues, Tuition, Operating Expenses, and Salaries/Benefits Enrollment Operating Revenues (School) School Tuition Total Operating Expenses (School) Salaries/Benefits (School) Enrollment 15

16 Contribution Category 2 - $250K - $750K School Comparison 1,200,000, 1,100,000 1,000, , , , , , , , , ,000 - Contribution Category 2 $250K - $750K - Collective Analysis of School Operating Revenues, Tuition, Operating Expenses, and Salaries/Benefits Enrollment Operating Revenues (School) School Tuition Total Operating Expenses (School) Salaries/Benefits (School) Enrollment 16

17 Contribution Category 3 - $750K - $1.5M Parish Comparison Contribution Category 3 $750K - $1.5M - Collective Analysis of Parish Operating Revenues, Contributions, Operating Expenses (with and without School Subsidy if applicable), and Salaries/Benefits 1,600,000, 1,500,000 1,400,000 1,300,000 1,200,000 1,100,000 1,000, , , , , , , , , , Operating Revenues (Parish) Contributions Total Operating Expenses (Parish) w/school Subsidy Salaries/Benefits (Parish) Total Operating Expenses (Parish) w/o School Subsidy 17

18 Contribution Category 3 - $750K - $1.5M Parish Comparison Contribution Category 3 $750K - $1.5M - Collective Analysis of Parish Operating Revenues, Contributions, Operating Expenses (with and without School Subsidy if applicable), and Salaries/Benefits 1,600,000, 1,500,000 1,400,000 1,300,000 1,200,000 1,100,000 1,000, , , , , , , , , , Operating Revenues (Parish) Contributions Total Operating Expenses (Parish) w/school Subsidy Salaries/Benefits (Parish) Total Operating Expenses (Parish) w/o School Subsidy 18

19 Contribution Category 3 - $750K - $1.5M School Comparison 1,600,000, 1,500,000 1,400,000 1,300,000 1,200,000 1,100,000 1,000, , , , , , , , , ,000 - Contribution Category 3 $750K - $1.5M - Collective Analysis of School Operating Revenues, Tuition, Operating Expenses, and Salaries/Benefits Enrollment Operating Revenues (School) School Tuition Total Operating Expenses (School) Salaries/Benefits (School) Enrollment 19

20 Contribution Category 3 - $750K - $1.5M School Comparison 1,600,000, 1,500,000 1,400,000 1,300,000 1,200,000 1,100,000 1,000, , , , , , , , , ,000 - Contribution Category 3 $750K - $1.5M - Collective Analysis of School Operating Revenues, Tuition, Operating Expenses, and Salaries/Benefits Enrollment Operating Revenues (School) School Tuition Total Operating Expenses (School) Salaries/Benefits (School) Enrollment 20

21 Contribution Category 4 - $1.5M Parish Comparison Contribution Category 4 >$1.5M - Collective Analysis of Parish Operating Revenues, Contributions, Operating Expenses (with and without School Subsidy if applicable), and Salaries/Benefits 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , Operating Revenues (Parish) Contributions i Total loperating Expenses (Parish) w/school lsubsidy Salaries/Benefits (Parish) Total Operating Expenses (Parish) w/o School Subsidy 21

22 Contribution Category 4 - $1.5M Parish Comparison Contribution Category 4 >$1.5M - Collective Analysis of Parish Operating Revenues, Contributions, Operating Expenses (with and without School Subsidy if applicable), and Salaries/Benefits 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , Operating Revenues (Parish) Contributions i Total loperating Expenses (Parish) w/school lsubsidy Salaries/Benefits (Parish) Total Operating Expenses (Parish) w/o School Subsidy 22

23 Contribution Category 4 - $1.5M School Comparison Contribution Category 4 > $1.5M - Collective Analysis of School Operating Revenues, Tuition, Operating Expenses, and Salaries/Benefits Enrollment 3,000,000 2,750,000 2,500,000 2,250,000 2,000,000 1,750,000 1,500,000 1,250,000 1,000, , , , Operating Revenues (School) School Tuition Total Operating Expenses (School) Salaries/Benefits (School) Enrollment 23

24 Contribution Category 4 - $1.5M School Comparison Contribution Category 4 > $1.5M - Collective Analysis of School Operating Revenues, Tuition, Operating Expenses, and Salaries/Benefits Enrollment 3,000,000 2,750,000 2,500,000 2,250,000 2,000,000 1,750,000 1,500,000 1,250,000 1,000, , , , Operating Revenues (School) School Tuition Total Operating Expenses (School) Salaries/Benefits (School) Enrollment 24

25 Agenda Update on Financial Trends & Summary of Specific Observations A Few Minutes with Mike Kratochvil AFewMinuteswith with Mike Kratochvil Benchmarking and Beyond 25

26 Trends in Health Insurance Medical Deductible Plan Employee and Spouse Employee and Children FY Employee Family $ $ $ $ $ $ $ $1, $ $ $ $1, $ $1, $1, $1, $ $1, $1, $1, % 9.91% 9.91% 91% 9.91% 91% 9.91% 91% 26

27 Continuing Trends in Health Insurance FY Medical Deductible Plan Employee Employee Employee and Spouse and Children Family 9.91% 9.91% 9.91% 9.91% $ $1, $1, $1, $ $1, $1, $1, $ $1, $1, $1, $ $1, $1, $2, $ $1, $1, $2, $1, $2, $2, $2, $1, $2, $2, $2,

28 Annualized Trends in Health Insurance Medical Deductible Plan Employee Employee FY Employee and Spouse and Children Family $7, $15, $15, $18, $8, $16, $16, $19, $9, $18, $18, $21, $10, $20, $20, $24, $11, $21, $21, $26, $12, $24, $24, $29, $13, $26, $26, $31,

29 The Not So Miracle of Compounding Assumes annual salary increase of 2% FY Average Salary Annual Health Cost (Employee) Annual Health Cost (Family) ,500 4,740 13% 11,286 30% , ,358 14% 12,744 33% ,015 5,970 15% 14,220 36% ,795 6,522 16% 15,534 39% ,591 6,918 17% 16,470 41% ,403 7,604 18% 18,102 44% ,231 8,358 20% 19,896 47% ,076 9,186 21% 21,868 51% ,937 10,097 23% 24,035 55% ,816 11,098 25% 26,417 59% ,712 12,198 27% 29,035 64% , ,407 29% 31,913 68% 29

30 How Far Can You Stretch Your Sunday Giving? in Fiscal Year 2010 Budget Percent Increase Effect on the Bottom Line Sunday contribution income $2, % $55.6 Non-school salaries $ % 2.0% ($19.2) Non-school employee benefits $ % ($18.2) Funds Available ** $18.2 **This is the amount available for school expense increases not covered by tuition as well as other parish expenditure increases such as utilities, repairs, supplies, maintenance, insurance and capital expenditures. 30

31 Parish Salaries & Benefits Parishes Category 2 Category 3 Category 4 Number of Parishes Average Salaries and Benefits 324, ,478 1,221,509 Average Salaries and Benefits as a percentage of: Total Expenses 631, % 1,124, % 2,131, % Average Contributions 511, % 1,123, % 2,186, % 31

32 School Salaries & Benefits Schools Category 2 Category 3 Category 4 Number of Schools Average Salaries and Benefits 656,492 1,180,131 1,910,423 Average Salaries and Benefits as a percentage of: Average etotal Revenue ene 562, % 1,178, % 12% 1,949, % Average Total Tuition 392, % 922, % 1,752, % Average Total Expenses 836, % 1,459, % 2,230, % 32

33 Parish School Investment Schools Category 2 Category 3 Category 4 Number of Schools Average Total Revenue 562, % 1,178, % 1,949, % Average Total Tuition 392, % 922, % 1,752, % Average Total Expenses 836, % 1,459, % 2,230, % Average Parish Investment 274, , ,252 Investment as a percentage of school costs Investment as a percentage of contributions 32.77% 19.25% 12.61% 53.57% 25.01% 12.86% 33

34 Households Who Contribute Compared to Total Parish Households Number of Households Parish Households who Pledged Total Parish Households that Contribute Total Parish Households 34

35 Contributing Households % 90.00% 80.00% 70.00% 60.00% 50.00% 00% 40.00% 30.00% 20.00% 10.00% 0.00% Percentage of Households that Pledge Percentage of Households that Contribute 35

36 Average Contributions Average Contribution $1,300 $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $ Average Contribution ti n from those who do not Pledge Average Contribution from those who Contribute Average Contribution from those who Pledge 36

37 Age Range Giving Comparison 2008 $600,000 $500,000 $400,000 tal $ To $300,000 $200,000 $100,000 $0 Age Range 37

38 Age Range Giving Comparison $600,000 $500,000 $600,000 $500,000 $400,000 $400,000 $300,000 $200,000 Total $ $300,000 $200,000 $100,000 $100,000 $0 $0 Age Range Age Range 38

39 Age Range Giving Comparison $600,000 $600,000 $500,000 $500,000 $400,000 $400,000 Total $ $300, $200,000 $100,000 $300, $200,000 $100,000 $0 $0 Age Range Age Range 39

40 Benchmarking But Their history is not your history. Their vision is not your vision. Their mission is not your mission. Their goals are not your goals. Their parish is not your parish. 40

41 Agenda Update on Financial Trends & Summary of Specific Observations A Few Minutes with Mike Kratochvil Benchmarking and Beyond Benchmarking and Beyond 41

42 What is Benchmarking? Benchmark = a standard by which something can be measured or judged Examples: Percent of resources devoted to X (salaries and benefits, utilities) Actual Cost per student Numbers of days operating cash on hand 42 42

43 Issues in Benchmarking Statistics don t lie, but they don t tell the whole story either Aiming at mediocrity will surely get you there Benchmarking without attention to your own overall financial picture invites frustration No two parishes/ schools are alike 43

44 How do you customize your benchmarking? 44

45 Expand your Perspective Comparisons with others are a PART of the equation Focus on your unique ministries and resources Multi-year view- three dimensions Unified look at project/debt/ capital improvement and operations 45

46 The best way a to predict the future is to create it. Peter Drucker 46

47 Case Study 1 Before Picture Before Picture 4,750,000 4,500,000 4,250,000 4,000,000 3,750,000 3,500,000 3,250,000 3,000,000 2,750,000 2,500,000 2,250,000 2,000,000 1,750,000 1,500,000 1,250,000 1,000, , , , School Revenue Parish Revenue CC/Extraordinary Revenue School Expenses Parish Expenses Required Debt Service 47

48 Case Study 1 After Picture After Picture 4,750,000 4,500,000 4,250,000 4,000,000 3,750,000 3,500,000 3,250,000 3,000,000 2,750,000 2,500,000 2,250,000 2,000,000 1,750,000 1,500,000 1,250,000 1,000, , , , School Revenue Parish Revenue CC/Extraordinary Revenue Add. Debt Service Principal School Expenses Parish Expenses Required Debt Service CIP Expenses 48

49 Case Study 2 Before Picture Before Picture 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , , School Revenue School Expenses Parish Revenue Parish Expenses CC/Extraordinary Revenue Required Debt Service CIP Expenses 49

50 Case Study 2 After Picture After Picture 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , , School Revenue School Expenses Parish Revenue ParishExpenses CC/Extraordinary Revenue Required Debt Service CIP Expenses 50

51 Case Study 3 Before Picture Before Picture $1,500,000 $1,400, $1,300,000 $1,200,000 $1,100,000 $1,000,000 $900,000 $800,000 $700,000 $600,000 $500, $400,000 $300,000 $200,000 $100,000 $ Parish Operating Revenues Parish Operating Expenses Construction Loan Required P&I CC/Extraordinary Income CIP Expenses Archdiocesan Loan 51

52 Case Study 3 After Picture After Picture $1,500,000 $1,400, $1,300,000 $1,200,000 $1,100,000 $1,000,000 $900,000 $800,000 $700,000 $600,000 $500, $400,000 $300,000 $200,000 $100,000 $ Parish Operating Revenues Construction Loan Required P&I CIP Expenses Parish Operating Expenses CC/Extraordinary Income Archdiocesan Loan Construction Additional Principal Payments 52

53 Case Study 4 Before Picture Before Picture 4,200,000 4,000,000 3,800,000 3,600,000 3,400,000 3,200,000 3,000,000 2,800,000 2,600,000 2,400,000 2,200,000 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , , Operating Revenues Capital Campaign Receipts for Debt Service Transfer In of School Surplus for Debt Service Operating Expenses Required Debt Service TE Note TE Note Additional Principal 53

54 Case Study 4 After Picture After Picture 4,200,000 4,000,000 3,800,000 3,600,000 3,400,000 3,200,000 3,000,000 2,800,000 2,600,000 2,400,000 2,200,000 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , , Operating Revenues Capital Campaign Receipts for Debt Service Transfer In of School Surplus for Debt Service Operating Expenses Required Debt Service TE Note TE Note Additional Principal 54

55 Summary Four unique situations, four unique responses Comparisons with others are a PART of the equation Focus on and benchmark your unique ministries and resources Multi-year view- three dimensions Unified look at project/debt/ / capital improvement and operations 55

56 Questions &Answers We re here to help! Call us at (651) org 56