Musings of Fr. Bryan T. Reif
In the bulletin this week, you will find the financial reports for the Fiscal Year 2019-2020 which ended on July 30, 2020. These reports have been shared with our Finance Councils. Let’s look at the reports one at a time.
First. St. Simon the Apostle. Our revenues from Sunday Collections and Holy Day envelopes came in at $275,890.30, which fell well short of what was budgeted for revenue for the fiscal year. There were other sources of revenue as well, such as fees for Religious Education and Hall rental, which in total gave us total revenue for the Fiscal year of $307,655.71, which fell well short of the revenues that we expected and had budgeted to receive. On the expenses side of the report, our total operating expenses were $350,772.38, which was less than what our budgeted expenses were, which means that in our day to day operations, we were able to save some cost. We had a cost savings of $24,706.62, yet despite this, we fell short in day to day operations by $43,116.67. Capital revenues included the fund drive for repairs to the rectory and a single generous donation for that project from a non-parishioner who wishes to remain anonymous. The capital expenses are the total costs of the projects that the parish had to bear for repairs and work to the rectory to make it habitable, as well as HVAC in the hall and church that needed major work done. The new roof on the church and the interior paint was covered by insurance, and the reupholstering of the chairs was covered and performed by volunteers (who have not finished yet, but we thank them for their great work!) Adding the operations shortfall to the capital shortfall, we have a total shortfall of $57,321.58. In order to cover the basic expenses to operate the parish, which includes salaries and benefits, HVAC, utilities, and ordinary maintenance, (and not relying upon fees, hall rentals, or festival revenue which may or may not materialize in any given year and which should be revenues in excess of operations in any healthy parish), based on our budget for this fiscal year, we need approximately $6200 per week in Sunday collections. That is just to pay our operating expenses, to meet our bills. The amount of money in the reserve to fall back on is dwindling, and we cannot rely upon reserves to make up the difference. Also, we have a debt that we owe to the Archdiocese of Cincinnati. The number is approximately $147,000, and we are questioning that figure, and are working with the Finance Office at the Archdiocese to determine if that is the actual figure St. Simon owes. That figure is carried on the parish’s Balance Sheet, but what concerns us today is the parish’s Income/Profit & Loss Statement. As with any going-concern, it is important that we live within our means. We cannot continue to operate at a deficit for very long, or we won’t be able to cover the bills. We need to support the level of expenses that we have with Sunday and Holy Day donations, and/or we need to find ways to cut our expenses, but something is going to need to happen in this regard during the course of this Fiscal Year.
Now, St. Aloysius on the Ohio. The Financials for St. Al’s are very good for the Fiscal Year ending June 30, 2020. St. Al’s had a total Sunday and Holy Day revenue of $275,864.87, which was over our anticipated collections by $27,364.87. We also had other miscellaneous donations, which were made by very generous parishioners to help offset the cost of the major projects that we had to undertake in the past fiscal year, like the refinishing of the church doors, and the replacement of the boiler which melted down last November. We also had some revenue from memorial, as well as split the pot. It is important to understand that a good percentage of the revenue we received this past year was from “out of the ordinary” donations to the parish for specific projects, and donations such as this should not be relied upon year after year. What we should be able to rely upon for operating revenue is Sunday and Holy Day collections and envelopes. Memorials, split the pot, and special donations should always be “extra” revenue that can increase reserves. Our total operating revenue for the Fiscal Year was $345,285.32, which was over our anticipated revenues by $42,285.23. Our total operating expenses, including salaries and benefits, HVAC and utilities, normal day to day operations, and ordinary maintenance was $241,418.47, under our budget for the year by $46,581.53, representing a substantial cost savings for the parish. This gave us an operating surplus of $103,866.75. We did have capital expenditures for the boiler, the doors, and other projects and work done at the parish totaling $68,329.59, which leaves us with a total surplus for the year of $35,537.16. To cover our operations week to week, given the level of our expenses, based on our budget for this fiscal year, we need approximately $4700 per week in Sunday and Holy Day offerings. St. Aloysius on the Ohio also has debt in the amount of $85,658.41 owed to the Archdiocese of Cincinnati in unpaid assessment, which also will need to be paid in time. Also, the Finance and Pastoral Councils have advised we pursue the sale of the old rectory, which should also provide capital revenue, and help us to be able to make needed repairs elsewhere on our buildings and grounds. Overall, the financial statements are very good, but we need to have caution regarding relying upon special donations, memorials, and raffles for our operations. We will always accept these, but they should be “extra” over and beyond the stewardship of the people’s Sunday giving.
We continue our work towards regionalizing as much as we are able between the two parishes. Even though the books and finances always will be separate, because these are and will continue to be independent parishes, there are many areas where costs and resources can be shared, and should be shared, to the benefit of each parish, and the region as a whole. We are regionalizing the parish offices as much as possible, and have put in a common phone system which will make it easier for the staff to work together, even if they are at different locations. Most of our staff are now regional staff, whose salaries are shared by the two parishes, so what happens at one parish will effect the other. I know we have heard this so many times, especially with the pandemic, but it is true for our parishes and our region: “We are all in this together.” Let us continue to ask the Lord to bless us, and may His Divine Assistance be always with us. Amen.
Take Good Care,
Fr. Bryan T. Reif
Pastor