REPORT OF THE TREASURER OF THE BOARD OF TRUSTEES

Transcription

1 REPORT OF THE TREASURER OF THE BOARD OF TRUSTEES To the One Hundred Thirty-eighth Council Of the Diocese of the Northeast and Mid-Atlantic Of the Reformed Episcopal Church Dear Brethren, The overall improvement of NEMA s financial position and outlook during 2017 was very encouraging. Most encouraging of all was a 13.6% or $33,743 increase in parish tithes for year 2017 over the year Annual expenditures in 2017 were virtually flat. While deficit spending continued, the deficit shrank from $131,951 in 2016 to $9,495 in 2017 and total unrestricted assets actually increased by $59,396 in Very positive aspects continued in Two major objectives established in 2017 for this year have been achieved: the outstanding principal on NEMA's loan from the Reformed Episcopal Seminary (RES) that was used to fund St. Alban s 2012 mortgage was paid in full on March 9, eliminating a serious drain on NEMA's investment resources, helping RES achieve major objectives of its own and directing all principal and interest payments to be received by NEMA; the sale of Jesus the Good Shepherd s (JGS) building in Brooklyn, NY, closed on April 30 and the $1.7MM proceeds were used to establish new NEMA investment accounts for use in general operations and parish development. This has helped to set the foundation for NEMA's financial stability for many years into the future. But challenges remain if NEMA is to meet budgeted 2019 expenditures. The satisfaction of the JGS mortgage combined with an extended term/lowered interest amendment to the St. Alban's mortgage has cut NEMA's mortgage interest revenue in half. Market volatility and a decrease in NEMA's available capital for investment have taken a 31% toll on returns from investment accounts. It is estimated that parish tithes will have fallen to $210,000 by December 31, 2018, a decline of 16% or $39,000 from the 2017 level of $249,000. Even though the 2019 budget was fashioned with a conservative approach to estimating revenue and expenditures, a deficit of $19,513 remains. It will creep higher if the 2019 tithe revenue of $251,000 is not met. Account Summary A summary description of the accounts whose status is presented herein is available in Appendix I of this report. Treasurers Report v Report Page 1 of

2 REPORT OF THE TREASURER OF THE BOARD OF TRUSTEES NEMA Financial Performance Items of Significance Year 2016 through Year 2017 (Referencing the Statement of Financial Position & Statement of Activities in Appendix II of this report) Financial Position NEMA Financial Position $3,500, $3,000, $2,500, $2,000, $1,500, Cash Investments Mortgage Receivables Property & Interests in Property $1,000, $500, $- Year-End 2016 Year-End 2017 The cash position remained fairly flat in 2016 and 2017; Investments declined by 12% or $101,909 for 2016 to 2017 due largely to transfers from investment to cash accounts to fund operating expenditures, loan principal reduction payments ($200,000) to RES and market performance; Mortgage receivables were up 8.8% or $256,060 for 2016 to 2017 due largely to accrual of Jesus the Good Shepherd mortgage interest; Total property assets decreased by 32.7% or $86,870 due largely to forfeit of NEMA's interest in the RES property at 826 Second Avenue, Blue Bell, PA. Treasurers Report v Report Page 2 of

3 REPORT OF THE TREASURER OF THE BOARD OF TRUSTEES Activities NEMA Activities $500, $400, $300, $200, $100, TOTAL REVENUE Total Operational Expenses Total Program & Ministry Expenses TOTAL EXPENDITURES NET CHANGE IN ASSETS FROM ORDINARY ACTIVITIES $- $(100,000.00) $(200,000.00) Total revenue was up 28.9% or $129,222 for 2016 to 2017 with increases in all categories, the most positive and encouraging being an increase of 13.6% or $33,743 in contributions by parishes ( Parish Tithes ); Expenditures for both operation and ministry remained relatively flat with a modest increase in overall expenditures of 1.5% or $6,765; Net change in assets from all activities in 2017 was $(9,495) versus $(131,951) in 2016, a vast improvement of $122,456. Although deficit spending continued during 2017 it was to a much lesser degree than in 2016 as revenue grew strongly in But deficit spending at any rate is to be avoided and is, in the long run, unsustainable. To prepare budgets for 2019 and beyond, it is necessary to consider the changes in financial performance that have occurred during the first three quarters of 2018 compared to what occurred during the same period in Treasurers Report v Report Page 3 of

4 REPORT OF THE TREASURER OF THE BOARD OF TRUSTEES Items of Significance Year-to-Date (YTD) Sep vs. YTD Sep (Referencing the Statement of Financial Position & Statement of Activities in Appendix III of this report) Financial Position NEMA Financial Position $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 Cash Investments Mortgage Receivables Property & Interests in Property $1,000,000 $500,000 $ YTD Sept YTD Sep 30 The cash position decreased in 2018 due to refund of the escrow account and appraisal costs ($22,875) to Jesus the Good Shepherd parish at closing of sale; Investments increased by a net amount of $1,196,646 due largely to: a $1,736,000 increase from the closing of the sale of Jesus the Good Shepherd; a $537,000 decrease from the payoff of the RES loan to NEMA that funded the St. Alban's 2012 mortgage; $18,000 in parish support for St. Luke's/Bishop Hoffman; Mortgage receivables dropped 63.5% or $1,998,161 due largely to the close of Jesus the Good Shepherd for a decrease of $1,736,000 and the decline of St. Alban's mortgage outstanding balance by $312,796; Total property and interests in property assets decreased by 100% or $142,411. Property interests were originally disbursements made from temporary restricted funds to various parishes. If the parishes were to return such monies to the Diocese, they would restore the balance of such temporary restricted assets. It has been determined by action of the Trustees that such repayment is to no longer be expected and that these interests should be "written off". As such, any corresponding temporary restricted funds are deemed to have been distributed in accordance with their purpose and now maintain a zero balance. Adjustments to reflect the "writing off" of the property interests were made in 2018 financial statements. Treasurers Report v Report Page 4 of

5 REPORT OF THE TREASURER OF THE BOARD OF TRUSTEES Activities NEMA Activities $350, $300, $250, $200, $150, $100, $50, $- $(50,000.00) REVENUE Operational Expenses Program & Ministry Expenses NET CHANGE IN ASSETS FROM ORDINARY ACTIVITIES $(100,000.00) $(150,000.00) 2017 YTD Sep YTD Sep 30 Total revenue fell 20.5% or $68,628 with a decrease in all major categories: 30.8% or $18,955 in investment activity due to market volatility coupled with a decrease in capital available for investment as a result of paying off the loan from RES; 25.5% or $21,229 in mortgage interest due to the closing of the sale of Jesus the Good Shepherd; and the most disappointing of all, a 16% or $30,020 decrease in parish tithes. Here is a graph of parish tithes January 1, 2015 through YTD Sep ; 220, , ,000 70,000 20,000 YTD PARISH TITHES Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Overall expenditures rose 7.2% or $24,744 largely due to $18,000 in support of St. Luke's/Bishop Hoffman; As a result of these factors in revenue and expenditures for 2018, net change in assets from ordinary activities YTD Sep rose to ($100,592) versus $(7,221) for YTD Sep Treasurers Report v Report Page 5 of

6 REPORT OF THE TREASURER OF THE BOARD OF TRUSTEES Actual vs. Budget YE 2017 A report of actual versus budget revenue and expenditures for the year 2017 is available in Appendix IV of this report was the final year in the process of transitioning NEMA's accounting processes and data base to be more GAAP compliant. Consequently, it is difficult (nigh unto impossible) to compare exact amounts for revenue and expenditures. Difficulties become obvious when reviewing this report. An example of the differences is that previous transfers from investment to operating accounts were classified as "revenue" but under GAAP (2017 onward) these are classified as "transfers". This is one reclassification that skews the detailed amounts reported for revenue as does the fact that revenue classes for 2017 are reported differently from the way they were budgeted. Additionally, 2018 was budgeted under two scenarios: one each for the close of Jesus the Good Shepherd to occur in October December 2017 or January June The timing of the close actually occurred just about in the middle. Regardless of these conditions, the bottom-line amounts for revenue, expenditures and net change in Appendix IV are accurate. In summary, 2017 ended with a spending deficit of $9, NEMA s Financial Strategy While the improving trend of NEMA financial performance during 2017 is very encouraging, deficit spending continues and cannot be ignored. In 2016, the NEMA Trustees finalized a financial strategy to address this situation. That strategy is focused on two major revenue sources investments and parish tithes. Revenue Investments NEMA s financial strategy for investments has four major elements: 1. Structure all investment asset accounts so that only returns on investments are used to fund operating cash accounts. Investment principal is preserved in order to continue generation of needed returns; 2. To the greatest extent possible, focus investment strategy on growth rather than income; 3. Use regular monthly mortgage payment receipts to fund operating cash accounts rather than reinvesting them; 4. If it becomes necessary to use investment principal to fund operations, retain principal as long as possible before transferring investment assets to cash accounts. To satisfy #1, an investment account with Wells Fargo Advisors was established in Capital ($1.7MM) to open this account came from proceeds to the Diocese from the sale of Jesus the Good Shepherd s building in Brooklyn, NY, those proceeds in satisfaction of Treasurers Report v Report Page 6 of

7 REPORT OF THE TREASURER OF THE BOARD OF TRUSTEES the outstanding mortgage. The close was expected by the end of 2017 but did not occur until April 30, To satisfy #2, NEMA s investment strategy was implemented beginning in July of 2018 under the management of Wells Fargo Advisors. To satisfy #3, mortgage payments received by wire transfer or check have been directly deposited in NEMA operating cash accounts. Payments received as deposits to investment accounts have been subsequently transferred to operating cash accounts. Both policies will continue through 2019 and beyond until the revenue stream is no longer required to help fund operations. To satisfy #4, the annual amount of transfer from investment accounts to cash accounts for general use was limited in 2018 to $36,000 and ended altogether in March In previous years the annual amount was no less than $144,000, or $12,000 per month. Successful management of NEMA s financial strategy was critically dependent on two things in 2018: the close of the sale of JGS building in Brooklyn, NY, and; NEMA's payment the outstanding St. Alban s mortgage principal due to RES. Accordingly, both of these items were key parts of NEMA s 2018 plan and budget. Both were successfully completed before the end of the second quarter of Revenue Parish Tithes In recent years, NEMA s primary source of revenue has been return on investments (including interest received on outstanding mortgages), not parish tithes. In 2016, NEMA Trustees initiated as part of NEMA s Strategic Plan, a program that would make parishes aware of the size and negative impact of this situation and the parish role and responsibility in the resolution of it. A program to accomplish this has been led by The Very Rev. Eduardo Andrade and the response by parishes across the Diocese was extremely positive during The response has dropped significantly during A record of parish tithes received during 2017 and YTD September 30, 2018 is available in Appendix VI of this report. Expenditures There is virtually no opportunity to limit expenditures without discontinuing some ministries, programs and/or operation at both the parish and diocesan levels. This fact becomes evident when comparing 2017 YTD and 2018 YTD financial performance and applying these to help formulate a budget for NEMA Plan & Budget for 2019 The 2019 budget is available for reference in Appendix V of this report. It has been formulated and approved following the NEMA Financial Strategy discussed above. Treasurers Report v Report Page 7 of

8 REPORT OF THE TREASURER OF THE BOARD OF TRUSTEES 2019 Plan Revenues Receiving revenue for 2019 that meets the plan s expenditures is highly dependent on assumptions and critical factors: 1. Market stabilization needed so that NEMA investment accounts provide regular investment earnings to cash accounts without drawing down principal; 2. Receiving parish tithes as budgeted for 2019 ($251,000/year); 3. Directing regular monthly mortgage payments (principal and interest) received by NEMA to operating cash accounts Plan Expenditures 2018 ordinary expenditures are budgeted at $566,989 with $474,780 funded from budgeted revenue, $62,696 funded from temporary restricted funds for special projects (Parish Development, Bassinger Home Fund) and $19,513 funded from general investment accounts for general budget expenditures. General ordinary expenditures include a 2 3% increase in compensation for our bishops and staff (office and Information Technology), including, as appropriate, salary, pension, Workers Compensation, health insurance and medical expenses. NEMA Treasury Accounting & Auditing The Very Rev. Jason R. Grote, the REC s official auditor, completed an audit of NEMA s treasury operations and books on October 15, The financial data presented in the appendices of this report is consistent with that contained in the audited financial statements. NEMA s financial physical data base includes the transactions that have been audited. NEMA has a strong financial accounting and reporting system and a nearly paperless treasury operation for investments (including mortgages) and expenditures. Updated procedures that were not completed in 2018 will be added in All will conform to NEMA s Strategic Plan and will be contained on a laptop that can be passed from treasurer to treasurer. Respectfully submitted, Ronald E. Riches, Treasurer Diocese of the Northeast & Mid-Atlantic of The Reformed Episcopal Church Treasurers Report v Report Page 8 of

9 APPENDIX I Summary of Accounts The diocesan financial accounts referenced in this report consist of three (3) checking accounts and five (5) investment accounts. Checking Account Summary The checking accounts for the Diocese are as follows: 1. The Diocesan Checking account is effectively the general operating account for the diocese. It is a Wells Fargo checking account used to process revenue and expense transactions for ordinary financial activities of the diocese. 2. The St. Philip s account is a Well s Fargo checking account formed as a result of the rental and sale of the former St. Philip s church. This account is now designated as the bishop s discretionary account from which disbursements are authorized jointly by the bishop, the secretary and the treasurer. 3. The Diocesan Escrow account, also a Well s Fargo checking account, was closed on July 23, 2018, to refund escrow and appraisal costs to Jesus the Good Shepherd parish at closing of sale. Investment Account Summary The investment accounts for the Diocese are as follows: 1. Fidelity Diocesan Investment account is an unrestricted account sometimes referred to as the 4.0 account. It is currently being used as a source of income to help meet the obligations of the Diocese. The mortgage for All Saints Anglican Church, Newark, NJ, is included in this account. 2. The Benson Fund is sometimes referred to as the 4.4 account and is a temporary restricted account held at Fidelity Investments for Grace Church, Collingdale. It is administered jointly by Grace Collingdale and the NEMA Treasurer. 3. Wells Fargo Advisors Diocesan Investment account is an unrestricted account that was funded on April 30, 2018, from the proceeds of the sale of Jesus the Good Shepherd, Brooklyn, NY. The NEMA Trustees financial strategy established the policy that only the return on this investment (capital gains, interest, dividends) be used as a source of revenue to meet the financial obligations of the Diocese. 4. Wells Fargo Advisors Diocesan Parish Development account is a temporary restricted account that was funded on May 31, 2018, with a portion of the Wells Fargo Diocesan Investment account. The NEMA Trustees financial strategy established the policy that funds in this account be used for the development needs of local parishes. 5. Fidelity Parish Development account is sometimes referred to as the 4.3 account and is a temporary restricted account. It was virtually exhausted on March 9, 2018, to pay off the RES loan to NEMA that funded the 2012 mortgage to St. Alban's, NY, NY. The account was closed on August 1, 2018, with the transfer of residual funds to the Fidelity Diocesan Investment account. APPENDIX I v Appendix I, Page 1 of

10 Year End Year End ASSETS Cash Diocese Checking 27, , Escrow Checking 32, , St. Philip's Checking 57, , Total Cash 116, , Investments Fidelity , , Fidelity , , Fidelity , , Wells Fargo Wells Fargo Total Investments 936, , Mortgage Receivables All Saints 174, , Christ Covenant Presbyterian PA 326, , Covenant Chapel NJ 10, , Jesus the Good Shepherd 1,422, ,692, St. Alban's NY 975, , Total Mortgage Receivables 2,909, ,165, Property & Interests in Property Jesus the Good Shepherd Expenses 26, , Cov. Chapel, NJ 29, , Cov. Chapel Rectory 23, , Emmanuel Four Brooks 49, , Providence Chapel 5, , St. Luke's NJ 27, , Faith Church Baltimore 7, , nd Ave 96, Total Property & Interests in Property 265, , TOTAL ASSETS 4,229, ,305, LIABILITIES & NET ASSETS Liabilities Reformed Episcopal Seminary Loan 800, , Total Liabilities 800, , Restricted Assets Diocese of the Northeast & MidAtlantic Statement of Financial Position Bassinger Home Fund 24, Benson Fund 138, , Total Restricted Assets 138, , Unrestricted Net Assets Prior Balance 3,325, ,290, Net Change in Unrestricted Assets (35,076.38) 59, Total Unrestricted Net Assets (ending) 3,290, ,349, TOTAL LIABILITIES & NET ASSETS 4,229, ,305, NEMA Financial Statements v Financial Position Appendix II, Page 1 of

11 Diocese of Northeast & MidAtlantic Statement of Activities (Condensed) GENERAL FUND UNRESTRICTED REVENUE Investment Activity (Net) 53, , Mortage Interest 46, , Parish Tithes 215, , Other Income 3, , Temp. Restricted Asset Contributions TOTAL REVENUE 318, , EXPENDITURES Operational Expenses Accounting & Auditing 1, , Council Expense (net after registration fees) (344.97) (198.90) Episcopal Expense (Ordinary & Suffragan) Ordinary (Salaries/Pensions/Ins/Medical) 125, , Suffragan (Salaries / Pensions) 9, , Total Episcopal Expense 135, , Insurance General 17, , Meetings & Retreats Expense (net after registration fees) 1, (87.84) Miscellaneous Office & Administrative Expense 50, , Retired Bishop Expense 21, , Travel Expenses 6, , Total Operational Expenses 234, , Program & Ministry Expenses Bassinger Home Fund Distributions Benson Fund Distributions Camping Program 1, , Church Planting Designated Offerings Distributed 1, , Diaconal Training Support 1, General Funds donated to Temp. Restricted Assets Gifts 2, Mission Project (s) Parish & Salary Support 8, , Seminary Support 180, , Tithe to National Church 23, , Total Program & Ministry Expenses 216, , TOTAL EXPENDITURES 450, , NET CHANGE IN ASSETS FROM ORDINARY ACTIVITIES (131,951.20) (9,494.77) Net Change from restoring Bassinger Home Fund balance (25,200.00) Net Change from Prior Year Adjustments 191, Net Change from Property Interests Forfeited (96,859.10) Net Change from sale of Jesus the Good Shepherd Net Change due to sale of St. Michael's 96, (892.78) NET CHANGE IN NET ASSETS FROM ALL ACTIVITIES (35,076.38) 59, GENERAL FUND UNRESTRICTED Balance Beginning of Period 3,325, ,290, Change during period (35,076.38) 59, Balance End of Period 3,290, ,349, NEMA Financial Statements v Activities Condensed Appendix II, Page 2 of

12 YTD Sept 30 YTD Sep 30 ASSETS Cash Diocese Checking 17, , Escrow Checking 52, St. Philip's Checking 69, , Total Cash 140, , Investments Fidelity , , Fidelity , Fidelity , , Wells Fargo ,217, Wells Fargo , Total Investments 839, ,035, Mortgage Receivables All Saints 171, , Christ Covenant Presbyterian - PA 321, , Covenant Chapel - NJ 8, , Jesus the Good Shepherd 1,671, St. Alban's - NY 975, , Total Mortgage Receivables 3,147, ,149, Property & Interests in Property Diocese of the Northeast & MidAtlantic Statement of Financial Position Jesus the Good Shepherd Expenses 34, Cov. Chapel, NJ 29, Cov. Chapel Rectory 23, Emmanuel Four Brooks 49, Providence Chapel 5, St. Luke's - NJ 27, Faith Church Baltimore 7, nd Ave - - Total Property & Interests in Property 177, TOTAL ASSETS 4,303, ,273, LIABILITIES & NET ASSETS Liabilities Reformed Episcopal Seminary Loan 775, Principal Reduction Payments to RES - - Total Liabilities 775, Restricted Assets 2 Bassinger Home Fund - 26, Benson Fund 151, , Total Restricted Assets 151, , Unrestricted Net Assets Prior Balance 3,290, ,349, Net Change in Unrestricted Assets 86, (265,877.86) Total Unrestricted Net Assets (year end) 3,377, ,083, TOTAL LIABILITIES & NET ASSETS 4,303, ,273, Property interests were originally disbursements made from temporary restricted funds to various parishes. If the parishes were to return such monies to the Diocese, they would restore the balance of such temporary restricted assets. It has been determined by action of the Trustees that such repayment is to be no longer expected and that these interests should be 'written off'. As such, any corresponding temporary restricted funds are deemed to have been distributed in accordance with their purpose and maintain a zero balance. Adjustments to reflect the 'writing off' of the property interests were made in Exception is that of the Bassinger Home Fund. See Note #2. 2 Bassinger Home Fund existed prior to 2017 but was not reflected on the Statement of Financial Position after the transition of the treasurer in As such, it was erroneously reflected in the total of Unrestricted Net Assets. The original value of $25,200 was restored during 2017 with an adjustment. A $1,000 distribution was made in 2017 which results in an ending balance of $24,200 as of 12/31/2017. Please refer to the Statement of Activities to see the adjustments from note #1 and note # NEMA YOY Financial Position v Financial Position Appendix III, Page 1 of

13 Diocese of Northeast & MidAtlantic Statement of Activities GENERAL FUND UNRESTRICTED BENSON FUND 2017 YTD Sep YTD Sep YTD Sep YTD Sep 30 REVENUE Investment Activity (Net) 61, , , , Mortage Interest 83, , Parish Tithes 187, , , Other Income 2, , (1,305.79) Temp. Restricted Asset Contributions - TOTAL REVENUE 334, , , , EXPENDITURES Operational Expenses Accounting & Auditing - Council Expense (net after registration fees) (135.00) Episcopal Expense (Ordinary & Suffragan) Ordinary (Salaries/Pensions/Ins/Medical) 130, , Suffragan (Salaries / Pensions) 9, , Total Episcopal Expense 140, , Insurance - General 5, , Meetings & Retreats Expense (net after registration fees) (990.58) Miscellaneous - - Legal & Professional Fees - - Office & Administrative Expense 41, , Retired Bishop Expense 15, , Travel Expenses 7, , Total Operational Expenses 176, , Program & Ministry Expenses Bassinger Home Fund Distributions 1, Benson Fund Distributions Camping Program 1, Church Planting Designated Offerings Distributed - - Diaconal Training Support 1, General Funds donated to Temp. Restricted Assets - 2, Gifts - 1, Mission Project(s) Parish & Salary Support 5, , Seminary Support 135, , Tithe to National Church 20, , Total Program & Ministry Expenses 165, , TOTAL EXPENDITURES 342, , NET CHANGE IN ASSETS FROM ORDINARY ACTIVITIES (7,220.68) (100,592.00) 12, , Net Change from Prior Year Adjustments 191, Net Change from Property Interests Forfeited (96,859.10) - Net Change due St. Michael's close (892.78) (142,410.86) Net Change due to sale of St. Philip's - (22,875.00) NET CHANGE IN ASSETS FROM ALL ACTIVITIES 86, (265,877.86) 12, , GENERAL FUND UNRESTRICTED Balance Beginning of Period 3,290, ,349, , , Change during period 86, (265,877.86) 12, , Balance End of Period 3,377, ,083, , , NEMA YOY Activities v Activities Appendix III, Page 2 of

14 Diocese of Northeast & MidAtlantic Statement of Activities (Detailed) GENERAL FUND UNRESTRICTED 2017 YEAR END Budget Actual Variance REVENUE Investment Activity Dividends & Interest & Cap Gains 29, Other Realized Gains / (Losses) 32, Unrealized Gains / (Losses) 30, Advisor & Transaction Fees (7,908.84) Tax Withholdings & Other (16.31) Total Investment Activity 84, Mortage Interest 109, Parish Tithes 220, , Other Contributions 1, , Council Offerings Designated 1, Interest Earned Other (Non categorized) 297, Total Other 518, , TOTAL REVENUE 518, , (70,438.14) EXPENDITURES Operational Expenses Accounting & Auditing 1, , Council Expense Registration Income Rec'd (7,341.71) Expense 15, , Total Council Expense (Net) 15, (198.90) 15, Episcopal Expense Ordinary (Salaries/Pensions/Ins/Medical) 131, , Suffragan (Salaries / Pensions) 9, , Total Episcopal Expense 141, , , Insurance General 16, , , Meetings & Retreat Expense Income/Registrations Rec'd (2,925.00) Clergy Retreat 3, , Engage Seminars Other Total Meetings & Retreat Expense (net) 3, (87.84) 3, Actual vs. Budget v Actvities (Detailed) Appendix IV, Page 1 of

15 Diocese of Northeast & MidAtlantic Statement of Activities (Detailed) GENERAL FUND UNRESTRICTED 2017 YEAR END Budget Actual Variance Miscellaneous Office & Administrative Expense Background Checks & Other Dues 2, Bank Fees Diocesan Planning (Strategic) 2, Information Technology 32, , Other (Non Categorized) 1, Postage Secretary Expense 13, , Supplies & Expense Web Hosting Total Office & Administrative Expense 51, , (85.69) Retired Bishop Expense 20, , Travel Expenses 12, , Total Operational Expenses 260, , , Program & Ministry Expenses Bassinger Home Fund Distributions Camping Program 1, , Church Planting Designated Offerings Distributed 1, Diaconal Training Support 5, , Gifts 2, Men's Retreat 1, Mission Project (s) 2, Parish & Salary Support 34, , Seminars 6, Seminary Support 180, , Tithe to National Church 26, , Total Program & Ministry Expenses 257, , , TOTAL EXPENDITURES 518, , , NET CHANGE IN NET ASSETS FROM ORDINARY ACTIVITIES (9,494.77) (9,494.77) 2017 Actual vs. Budget v Actvities (Detailed) Appendix IV, Page 2 of

16 NEMA BUDGET FOR BUDGET BUDGET ESTIMATED REVENUE Investment Activity (net) 10, , , Total Mortgage Payments 209, , , Parish Tithes 250, , , Other 6, , , TOTAL REVENUE 476, , , EXPENDITURES Operational Expenses Accounting & Auditing 1, , , Council Expense Registration Income Rec'd (15,000.00) (15,000.00) (15,000.00) Expense 15, , , Total Council Expense (Net) Episcopal Expense Ordinary (Salaries/Pensions/Ins/Medical) 134, , , Suffragan (Salary) 8, , , Suffragan (Pension) 1, Total Episcopal Expense 143, , , Insurance - General 14, , , Meetings & Retreat Expense Income/Registrations Rec'd (10,700.00) (6,904.42) (10,700.00) Clergy Retreat 3, , , Ministry Wives 1, , Seminars 6, , Quarterly Clergy Meeting - - 1, Total Meetings & Retreat Expense (net) Miscellaneous Legal & Professional Fees 2, , Office & Administrative Expense Background Checks & Other Dues 1, Bank Fees Diocesan Planning 3, , Information Technology 33, , , Other (Non-Categorized) 1, , , Postage , Secretary Expense 13, , , Supplies & Expense 1, , Web Hosting Total Office & Administrative Expense 54, , , Retired Bishop Expense 20, , , Travel Expenses 18, , , Total Operational Expenses 255, , , Financial Plan & Budget v1.0 Trustees on Appendix V, Page 1 of

17 NEMA BUDGET FOR BUDGET BUDGET ESTIMATED Program & Ministry Expenses Bassinger Home Fund Distributions - (2,735.00) 5, Camping Program 1, , Church Planting 5, , Designated Offerings Distributed 1, Diaconal Training Support 5, , Gifts 2, , , Mission Project (s) 2, , Parish & Salary Support 6, , , Seminary Support 180, , , Tithe to National Church 30, , , Total Program & Ministry Expenses 233, , , TOTAL EXPENDITURES 488, , , REVENUE LESS ORDINARY EXPENDITURES (12,579.01) (61,547.06) (82,209.00) Transfers for St. Luke's/Bishop Hoffman 31, , Transfers for Bassinger Home Fund distributions - 5, Transfers for general expenditures 30, , NET EXPENDITURES LESS TRANSFERS 426, , NET REVENUE LESS EXPENDITURES FROM ALL ACTIVITIES 0.00 (0.00) 2019 Financial Plan & Budget v1.0 Trustees on Appendix V, Page 2 of

18 The Diocese of the Northeast & Mid-Atlantic of the Reformed Episcopal Church Report of the Treasurer for December 31, 2017 Year-to-Date (YTD) Statement of Parish Tithes Parish 2017 YTD Atonement 1, Bishop Cummins 35, Covenant Chapel 15, Emmanuel Four Brooks 5, Emmanuel NJ 13, Faith Baltimore 8, First Church 3, Good Shepherd 20, Grace Collingdale 20, Grace Havre De Grace 9, Grace Scranton 1, Jesus The Good Shepherd 4, Messiah 1, New Redeemer 6, St. George's 1, St. John's By The Sea 4, St. Luke's 10, St. Luke's Bishop Hoffman 1, St. Mark's 15, St. Mary's 2, St. Matthew's 19, St. Patrick's St. Paul's 12, St. Peter's 1, St. Stephens 30, St. Timothy's OVERALL TOTAL 248, Parish Tithes v Current Month Appendix VI, Page 1 of

19 The Diocese of the Northeast & Mid-Atlantic of the Reformed Episcopal Church Report of the Treasurer for September 30, 2018 Year-to-Date (YTD) Statement of Parish Tithes Parish 2018 YTD Atonement - Bishop Cummins 22, Covenant Chapel 9, Emmanuel Four Brooks 4, Emmanuel NJ 10, Faith Baltimore 5, First Church 4, Good Shepherd 15, Grace Collingdale 12, Grace Havre De Grace 5, Grace Scranton Jesus The Good Shepherd 3, Messiah - New Redeemer 4, St. George's - St. John's By The Sea 2, St. Luke's 5, St. Luke's Bishop Hoffman 1, St. Mark's 10, St. Mary's - St. Matthew's 13, St. Patrick's - St. Paul's 4, St. Peter's St. Stephens 20, St. Timothy's OVERALL TOTAL 157, Parish Tithes v Current Month Appendix VI, Page 2 of