Unitarian Universalist Church of the Shenandoah Valley

Transcription

1 Unitarian Universalist Church of the Shenandoah Valley Narrative Explanation FY Operating Budget Membership Pledges (Code 4001). ($204,250): REVENUE The FY pledge campaign yielded total financial commitments of $215,000, or $33,743 more total pledge commitments in FY ($181,257). Based on past experience, the FY budget estimate assumes that UUCSV will receive 95% of the total amount pledged or $204,250. Sunday Services Collections (Code: 4002). ($17,349): Revenue from Sunday service and related collections are projected to total over $17,000 for FY It is anticipated that Sunday Services offerings will remain at this level during FY A number of members and friends of the church do not pledge, but make regular contributions which are assigned to this accounting code. New Member Pledges (Code: 4003). ($3,000): This new line item has been added to this year s budget in anticipation of initiating a year-round stewardship, effective July 1, Annual Auction Receipts (Code 4101). ($19,000): Proceeds from the 2012 auction exceeded the FY budget estimate of $15,000 by over $3,600. As a result, the estimate for FY has been increased to $19,000. Holiday Bazaar (Code 4102). ($2,000): Receipts from the 2012 Holiday Bazaar totaled $1,788, or a little over $200 short of the budget estimate ($2,000). Estimated revenue for FY is $2,000. Annual Yard Sale (Code 4103). ($4,000): The 2012 yard sale was held in conjunction with the annual Route 11 Crawl and yielded over $3,600 or $649 less than the budget estimate ($4,500). The 2013 yard sale also will be held in conjunction with the Route 11 Crawl and the budget assumes that proceeds from sales will be $4,000 or roughly half way between FY and FY receipts. 1

2 Social Events (Code 4105). ($250): Income of $250 is expected for the sale of food and drinks at various social events for FY Prepaid Grocery Card Sales (Code 4150). ($5,000): The FY budget includes an estimate of net revenue only from grocery card sales only (i.e., effective July 1, 2013, GC purchases and sales will no longer treated as on-budget transactions as they have been in prior fiscal years). A detailed gift/grocery card inventory and tracking system was established in 2013, thus permitting the shift to budgeting for net income from sales only. Total sales are GC sales for the fiscal year are expected to reach $100,000, or approximate the same level as in FY Net revenue from these sales is expected to reach $5,000 for the year. Fair Trade Coffee/Candy Sales (Code 4151). ($0): Proceeds from the sale of coffee, candy, and other products declined during Still, as in past years, purchases are expected to be offset sales revenue once coffee used for Sunday service social hours and other church-sponsored events are taken into account. As with grocery card sales, only net revenue from coffee/candy/etc. sales will be reported during FY Community Concerts (Code 4153). ($200): Income from participant donations declined in 2012 and 2013 because of lower attendance. In response, the Concert Committee began to use non-compensated musicians exclusively at such events (see explanation under Acct. Code #9153 below). Concert revenue during FY is expected to total $200, or approximately the same amount received during FY Other Fundraising Events (Code 4199). ($2,500): During the course of the fiscal year, the church holds special events where small amounts of revenue are raised (chili cook-off; heart-to-heart café, etc.), mainly on food and drink sales. Based on experience in previous fiscal years, it is estimated that revenue from these events/collections will total $250 during FY Other income reported in this category includes contributions to the Guests at Your Table (GAYT) program ($1,000), the sale of food and drink sales at the Annual Yard Sale ($1,000), a portion of which is used to support an orphan in Northwest India (see Acct. Code 5221 below), and special Sunday Services collections ($250). Amazon.com Rebates (Code 4201). ($100): In the fall of 2008, arrangements were made with Amazon.com for the church to receive rebates from sales to members who make purchases through a link on the church s website. The church has received only a small income from this source. Revenue from this source is expected to approximate the amount received during FY ($100). 2

3 Building Rental (Code 4300). ($4,000): Receipts from the rental of the church building have increased over the last two fiscal years in part because of donations from participants in meditation classes. Therefore, the FY revenue estimate is $4,000, or the same amount budgeted for FY Investment Income -Operating(Code 4400). ($100): The church receives a small amount of interest on two certificates of deposits held by the Bank of Clark County. Interest income in FY is expected to be approximately the same as in FY ($100). Other Income (Code 4900). ($100): This line item is included, based on past experience, to reflect a small amount of income the church receives from unbudgeted sources. Nursery Care (Code 5001). ($0): EXPENDITURE ASSUMPTIONS Sunday Services and Music Programs The nursery care function ($700 in FY ) has been transferred to Religious Education (RE) (see explanation under Acct. Code 5105 below). Sunday Services Speakers (Code 5002). ($1,150): The amount requested is an increase of $540 over the FY budget level. There has been an increase in fees for UU ministers serving as guest speakers. The UU Ministerial Association now recommends a minimum speaking fee of $250 for UU guest ministers, which is higher than the standard UUCSV has been using ($150). If we are to honor the new standard fee and line up more, interesting outside speakers, it will be necessary to increase the budget. The fee for nonmember guest lay speakers will remain unchanged, ($100). UUCSV members are not paid when they speak at lay services. Service Music (Code 5003). ($3,000): The estimate is $500 more than the amount budgeted for FY to offset the growing costs of purchasing choir music. Other Expenses (5009). ($320): The amount requested is $20 more than the amount budgeted for this category in FY These funds are used to purchase candles, batteries and other miscellaneous items for Sunday services. 3

4 Religious Education Religious Education Operations (Code ). ($3,850): The nursery care function, Code 5105, ($700) has been transferred to Religious Education (RE) and $200 has been added to cover RE child care expenses. The allowance reflects the upward trend in use of the nursery and nursery care costs, bringing the proposed FY allowance to $900. The anticipated purchase of curricular materials and supplies in FY is expected to cost approximately $1,700 and the same amount is being requested for FY In addition, during FY , funds are being requested for the youth group ($300), Spirit Play for Rainbow Riders ($500), and Special Events ($250). The overall RE allowance is $400 more than the amount budgeted for FY once nursery/child care expenses are factored out. Board of Directors (Code 5201). ($400): Board and Committee Activities The allowance for Board expenses are $100 less than the amount budgeted for FY Committee Operating Expenses (Codes ). ($2,277) This figure represents the amount allotted to cover costs incurred by various church committees in carrying out their respective activities during FY The allowance does not include funding for Social Welfare Projects (see Acct. Code 5211) or Other SA&J Activities (see Acct. Code 5221). Stewardship Forth Program (Code 5211). ($0): Because of the uncertainty surrounding potential expenses in connection with pursing UUCSV s involvement in the Forward Through the Ages (FORTH) program, funds are not included in the FY budget for this purpose. Once the FORTH task force has had an opportunity to develop a specific list of activities and the estimated costs involved, church leaders will be in a better position to pursue plans tailored to UUCSV s specific needs. Social Welfare Projects (Code 5220). ($3,500): These funds are used to financially support local social welfare activities. Previous recipients of assistance have included the Volunteer Farm, the Blue Ridge Food Bank, the Winchester Area Temporary Thermal Shelter (WATTS), and the Congregational Community Action Project (CCAP). The allowance is the same as the amount budgeted in FY Other Social Action and Justice (SA&J) Events (Code 5221). ($1,750) SA&J activities include collecting funds for the Guest at Your Table (GAYT) program of the Unitarian Universalist Partner Church Council (UUPCC) and paying the tuition of an orphan in Northeast India (Distabor) 4

5 (see also Acct. Code 4199 above). Funds collected for these activities generally are a direct pass through to the sponsoring organization. UUA Membership Dues (Code 5301). ($9,360): Denominational Dues The amount requested is based on the current per member dues rate ($60) times the number of active members (156) reported to UUA in February J. Priestley District Dues. (Code 5302). ($4,212): The amount requested is based on the current per member dues rate ($27) times the number of active members (156) reported to UUA in February Telephone and Internet Service (Code 6001). ($1,500): Operating Expenses Based on expenditure patterns during FY , telephone and internet expenses are expected to increase by $100 (from $1,400 to $1,500) in FY Postage (Code 6002). ($350): The proposed postage allowance has been increased by $50 for FY due to the higher number of congregational mailings anticipated in FY Office Equipment (Code 6003). ($1,700): The allowance for equipment purchases and leasing of the copier has been increased by $200 in FY (compared to FY ) to account for anticipated increases in costs and larger coping volume. Insurance (Code 6004). ($6,000): The church s insurance policy includes annual premiums for general liability coverage, property liability, workmen s compensation, theft and employee liability, plus umbrella liability coverage. The requested amount for FY is the same as the amount budgeted for FY Payroll Services (Code 6006). ($875): This request reflects past experience with payroll maintenance expenses. It is anticipated that FY payroll services will be slightly less than the $900 budgeted in FY

6 Office Supplies (Code 6008). ($2,000): In addition to routine office supplies, printing expenses and a service support charge for Servant Keeper software are charged to this account. The allowance for FY has been increased by $1,200 to reflect increase expenditures during FY Volunteer Leadership Development (Code 6009). ($0): This allowance, initially established in FY , was intended to cover the costs of bringing in outside trainers as well as reimbursing the travel expenses of volunteers selected to represent UUCSV at churchrelated conferences, seminars and workshops. However, little of the $1,000 set aside for this purpose was used during FY No funds were included for this item in the FY budget in view of severe revenue constraints and, due to the absence of a coherent strategy for training volunteers, no funds are being requested in FY Moving Expenses (Code 6010). ($0): The anticipated moving expenses of the permanent DRE the only moving expenses anticipated during FY are including under Acct. Code Bookkeeping Services (Code 6011). ($6,396): The responsibilities of Church Administrator were divided between an Office Manager and a Bookkeeper after the incumbent Church Administrator resigned in November A half-time Office Manager was hired (see Acct. Code #7301-#7304 below) and the church contracted with a local firm for bookkeeping services. The bookkeeping contract commits the church to paying a monthly fee of $533. Miscellaneous Administrative Expenses. ($300): The church incurs various administrative expenditures that don t fit into any of the established spending categories. Based on past experience the allowance for FY has been set at $300. Minister s Salary (Code 7101). ($34,354): Salaries and Benefits The allowance reflects the yearly salary specified in the church s agreement with the Minister as well as the Minister s preference concerning the division between salary and housing allowance. Minister s Housing Allowance (Code 7102). ($25,400): The allowance reflects the housing allowance specified in the church s agreement with the Minister as well as the Minister s preference concerning the division between salary and housing allowance. 6

7 Minister s Retirement Contribution (Code 7103). ($5,581): The contribution to the UUA Retirement Trust on behalf of the Minister is calculated at 10 percent of his salary plus housing allowance as specified in UUA fair compensation guidelines and the terms of his agreement with the church. Minister s Professional Development Expenses (Code 7104). ($5,000): Under the terms of UUCSV s agreement with the Minister, an annual allowance of $5,000 is earmarked for professional development expenses to be used at the Minister s discretion. Minister s Health Insurance Premiums (Code 7105). ($5,656): In accordance with the terms of the church s agreement with the Minister, UUCSV pays 80 percent of health insurance premiums on his behalf. The balance of the premium is withheld from the Minister s salary. Minister s Disability Insurance Premiums (Code 7106). ($510): In accordance with its agreement with the Minister, UUCSV pays 100 percent of the premium on a disability insurance policy. Minister s Life Insurance Premiums (Code 7107). ($400): In accordance with its agreement with the Minister, UUCSV pays 100 percent of the premium on a term life insurance policy. Minister s SECA (Code 7109). ($4,541): The church also contributes half of the Minister s federal self-employment payroll taxes (SECA). The estimate is based on the current SE tax rate times total salary plus housing allowance. RE Director s Salary and Benefits (Code ). ($45,000): UUCSV has recruited and hired a new, permanent Director of Religious Education. Funds set aside for the salary and benefits of the new Director of Religious Education assume that a full-time associate level DRE will be hired and the initial salary and benefits for this position will not exceed $45,000, a upper limit established by the Board of Directors. The budget allowance is based on the following assumptions regarding the starting salary and benefits of the position: Starting salary: $33,000 Disability Insurance: $400 Life insurance: $300 Professional developments allowance: $2,475 Retirement contributions (@ 10% of salary): $3,300 7

8 Employer s share of FICA & Medicare taxes (7.65% of salary) - $2,525 Moving expenses: $3,000 Actual expenditures may vary to some degree once benefit calculations are finalized, but total compensation for the year will not exceed $45,000. Office Manager s Salary (Code ). ($22,796): The budget estimate is based on a: Base salary (per agreement) plus a COLA of 1.6% - $13,104 An estimated 80 hours overtime - $975 10% of salary for 5 ½ months - $626 Medical insurance (per agreement) and current UUA health plan premiums - $7,014 and Employer s share of FICA (7.65% of salary and overtime) - $1,077 Music Director s Salary (Code ). ($13,028): Base salary plus a COLA of 1.6%: $11,174 Professional development allowance: $1,000 Employer s share of FICA/Medicare taxes (7.65% of salary): $855 Pianist s Salary (Code ). ($4,306): Base salary - $3,479 plus a $521 merit increase: $4,000 Employer s share of FICA/Medicare taxes (7.65% of salary): $306 Payroll Tax Expenses (Code 7900). ($0): Payroll tax expenses in FY are now listed individually for each employee. In prior fiscal years, the FICA/Medicare taxes of employees were calculated individually but aggregated under a single accounting code. Custodial Care (Code 8001). ($4,500): Buildings and Grounds The budget allowance is the same as the amount budgeted in FY In addition to the monthly cost of cleaning services ($400), an annual allowance ($700) is built in for the purchase of cleaning supplies, paper towels, etc. 8

9 Electrical Services (Code 8002). ($6,000): The request level is $300 less than the amount budgeted in FY The reduction reflects a downward trend in electric costs over the past year. The Building and Grounds Committee Chair adjusts the heating and cooling weekly according to the activity level in the church, which has resulted in cost savings. Water Service Fees (Code 8003). ($470): The allowance for this line item remains the same as in FY Waste Water Treatment Fee (Code 8004). ($400): The allowance for this line item remains the same as in FY Required field inspection fees run $100 per quarter. Lawn Care and Snow Removal Code 8005). ($700): The allowance for this line item remains the same as in FY Grounds Maintenance (Code 8006). ($500): The allowance for this line item is $250 below the FY budget level but $230 above the actual FY and, likely, FY spending level. The allowance covers the cost of purchasing fertilizer and lime, mulch, gas and equipment service, seeds and plants, and tools plus miscellaneous items. Building Maintenance (Code 8007). ($5,000): The allowance is $2,605 below the FY budget level and anticipates lower building repair costs than experienced during FY and FY Storage Unit (Code ($450): Due to storage limitations in the church, the Building Committee plans to coordinate the storage of important records in a secured, 5 X 5 rental storage unit. The $450 allowance reflects the estimated annual rental costs. Mortgage Interest Payments (Code 8501). ($23,982): Debt Service During FY , interest payments on the 30-year, fixed rate mortgage will total $23,982 according to the loan amortization schedule. [The portion of the mortgage payment used to reduce the principal is reflected as a balance sheet adjustment rather than as a direct operating expense, in keeping with generally accepted accounting principles (see also Expenditure Adjustments below).] 9

10 Development Expenses Auction Expenses (Code 9101). ($650): Based on experience over the past few years, this line item remains the same as the FY allowance. Holiday Bazaar Expenses (Code 9102). ($500): Based on experience over the past few years, this line item remains the same as the FY allowance. Yard Sale Expenses (Code 9103). ($560): This line item has been reduced by $90 below the FY allowance based on the experience during FY Bank Card Transaction Expenses (Code 9104). ($1,500): During FY the church began accepting credit card purchases for the sale of grocery cards and coffee as well as for purchases made during major fundraising events (e.g., the Holiday Bazaar, the Annual Auction, etc.). This budget category includes the transaction fees the church pays on credit card purchases. This allowance is being increased by $750 in FY based on experience during FY Community Concert Expenses (Code 9153). ($200): No expenses had been reported by the Community Concert Committee through the third quarter of FY due primarily to the decision to use non-compensated musicians only. Nonetheless, $200 is set aside in the budget for FY on the assumption that a similar amount of revenue will be generated from donations and the sale of food and drinks at the concerts (see Acct. Code 4153). Other Fundraising Expenses: (Code 9199). ($0): Based on past experience, no allowance is made for expenditures in this category. Publicity (Code 9200). ($0): No allowance is included in the FY budget for publicity expenses. Planned Capital Expense (No Code). ($1,000): Expenditure Adjustments 1 An upgrade is planned in the sanctuary sound system during FY Transfer From Reserves (No Code). ($0): No transfers from are planned from reserve accounts to the operating fund during FY

11 Contribution to Building Reserves (No Code). ($5,200): A total of $5,200 will be transferred to the Building Maintenance and Repair account to cover major building repairs and replacements in future years (such as replacement of the heating and cooling system). This amount is consistent with the a long-range building and repair plan prepared by the UUCSV Building Committee. Sabbatical Fund Contribution (No Code). ($0): In past years, the church has transferred small amounts of money to the Sabbatical Fund to cover expenses that may be incurred during a Ministerial sabbatical. The FY budget contemplates no addition to the Sabbatical Fund. Mortgage Principal Payments (No Code). ($9,676): Monthly principal payments during FY will total $9,676 according to the loan amortization schedule (see also Debt Service (Acct. Code 8501) above). These transfers will occur monthly as a balance sheet adjustment. 1. The following transactions occur as balance sheet adjustments and as such are not reflected on the monthly statement of accounts. 11