Finance
Finance Committee News
FINANCE FACTS |
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Treasurer's Report - September, 2010
Pledges. Thanks to all of you have kept your pledges current during the summer. We haven't fallen behind, which makes paying our bills easier! There is still much work to be done to catch up with our unbalanced budgets, and the Session is working hard to discern our best paths. All suggestions for increasing our revenues and decreasing our expenses are welcome.
per capita:
As we begin our new budget year searching for ways to achieve financial sustainability, several people have asked about the “per capita” apportionment of $5775.00, line 5A01* in the 2010 budget. Here is the explanation, taken from the PCUSA website.
The official definition: “Per capita is an opportunity for all communicant members of the Presbyterian church through the governing bodies to participate equally, responsibly, and interdependently by sharing the cost of coordination and evaluation of mission; and of performing ecclesiastical, legislative, and judicial functions that identify a Reformed Church, while at the same time strengthening the sense of community among all Presbyterians” (GA Minutes, Part I, 1995).
The per capita amount requested from a congregation is a combined total of requests from that congregation’s presbytery, the synod in which the presbytery is located and the General Assembly — based on their respective budgets for the coming year(s).
Our per capita apportionment for 2010 is $35 per member of the congregation. Already, some folks have donated their own per capita amount, and some have offered to donate extra for those whose finances are stretched to the limit. The Session thanks them for their generosity. |
| Invoices and receipts: Committee chairs and anyone who makes purchases for church purposes, please be sure to give all receipts and invoices to Mary McGreevy, our Bookkeeper. She has a mailbox on the lower right hand side of the mailboxes outside the office. If it's not immediately obvious what committee account should be charged, please attach a note telling Mary what you bought and for what event. This is particularly important for telephone orders or purchases at stores where the church has accounts, for example, Big M. It can be hard to tell whether certain food items were for Coffee Hour, a Community Dinner, a Lenten Luncheon or some other event, and for budget planning purposes and general tidiness, we need to have accurate information. If you need to be reimbursed for an expense, please note that Mary picks up her "mail" on Thursday, so if a receipt and request for reimbursement is not in her box on Thursday, there will be a week's delay in getting a church check processed. |
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Did you know... If you are just getting acquainted with First Presbyterian or prefer not to pledge there are all kinds of giving opportunities to help the church finances. Besides open plate donations, you may put your gift in an envelope and mark it for the fair trade coffee we use exclusively. You can share a portion of your STAR rebate. It can be marked as sacrificial giving if you skip a luxury and choose to share the $ amount.
Did you know... Every month checks are written for items that should be paid then. Every month some checks must be held to wait for deposits to cover them. |
Keep Your Pledges Current
The Finance Committee would like to thank all who keep their pledges current. Operating expenses are often covered temporarily by funds meant for other specific tasks. Please take a moment and bring your pledge up to date.
Mark Your Checks. Please be sure to mark your contribution checks or envelopes with the appropriate line item you are contributing to. This is the only way the secretary knows how to credit your pledge. Please mark it with Operating Fund, Second Century Fund, or if it is a special contribution like One Great Hour of Sharing, memorial lily, etc. please mark it with that special contribution name. If you don’t put anything on your check or envelope then your contribution is credited toward “Unpledged Contributions”. So, if you see that on your quarterly contribution statement you will know that you must have not marked your giving appropriately. General Fund and General Expenses are not specific line items so they will also appear as “Unpledged Contributions”. Thank you for your help.
Sacrificial Giving is a featured way of contributing money to the church. Most times a restaurant meal, another outfit, or that rich dessert is a treat. Why not skip one of these entirely and send the dollars saved--to benefit the church for something essential?
Our new bookkeeper, Mary McGreevy, generates reports from her Quick Books program. The hope is that one of these will work to concisely share monthly or quarterly information in Parish Life and Parish Paper.
Financial Set-Up
Most church monies are invested with the Presbyterian Church Foundation in either the New covenant funds or their foundation funds. A list of our income generating church funds (and type of fund):
- First Presbyterian Potsdam (Balanced Income)
- Organ Endowment (Balanced Growth)
- Mary Lou Hultberg Memorial (Balanced Growth)*
- Helen King Memorial (Balanced Growth)
- Shaw Building Maintenance (Balanced Growth)
*As of October, 2008, the last of the Mary Lou Hultberg estate left to the music department of our church was moved from a CD at Canton Community Bank to our permanent funds with Presbyterian Foundation. These funds increase in value and provide a dividend to support our music programs.
Some of our additional sources of revenue:
- Mary Lou Hultberg Estate
- Clarkson Chemistry Fund
- Ormsby Christian Education Fund
- Open plate collecitons
- Building use donations
- Rummage sales
- Mini fund raisers
- Personal copier use
Pledge income is committed to:
- The Operating Budget
- The Second Century Fund
2009 Financial Committee Report
Throughout 2009 we continued to keep the regular operating checking account, second century checking account, and second century savings account at Community Bank. One of the challenges this year was to find a way to be better stewards of the funds coming in. In order to eventually earn more interest, deal with fewer discrepancies, and enjoy easier online access we researched different banks. In the fall a money market advantage account with allowed transfers and a business checking account were opened at North Country Savings Bank. The bookkeeper will be able to keep track of second century capital improvement funds as well as other funds as they go into the one account which earns more interest- .8 %versus .5% and .2%. In the beginning of January we began using North Country Savings Bank for making our deposits, automatic payroll deposit for those employees who use that, and regular, as well as online bill paying.
The second century CD at NBT comes due again on April 23, 2010. The interest rate is .6%. October 23, 2007 was the date of issue.
The golf tournament account remains at Community Bank. It has its own checkbook due to the way expenses are paid for at the event; for instance golfing fees paid to the pro shop and catering if applicable.
Members of the Finance committee participated directly with the golf tournament and the spring rummage sale. Golf tournament profit of $4000.00 is for mission. Spring rummage sale profit of $1300.00 went to the operating fund.
Budget and financial reports are being designed now to make it easier to see operating, pass through, second century, investment, and reserve amounts. We are making the books clear, transparent, with appropriate safeguards so as to pass an audit. The expense of an audit could not be afforded. In-house review by a congregation member could be one option.
All committee chairs and the moderator of the Deacons must acknowledge disbursing of monies out of their respective budgets by using vouchers and/or using email approval of their monthly expense report. It is also formally recommended that deposits be made as soon as possible when fund raising events are held.
Another challenge this year was to find a way to record money coming in toward pledges as receivables on account and to avoid keeping two sets of books on this; one the secretary and one the bookkeeper. New software for recording pledges has been purchased and downloaded onto the secretary’s computer. It is VIANSOFT Church Contribution System (release 4). It was decided that the church secretary will record the money taken in against pledges and for other donations. She will produce a general report by category; then send these totals to the bookkeeper. The church secretary will have the detail and will be able to answer questions from parishioners right away. Regular statements should be easier to generate.
Our largest source of income remains pledges. Compared to past years the amount pledged for 2010 is less. There is no cost of living increase as we move into 2010. The 2010 budget is a deficit one as was 2009. Running memorial funds through the operating expenses prior to sending them to their designated place has helped but is not a sustainable long term solution. The bottom line of mission spending in the operating budget has been reduced to a tithing of the operating budget. This is a big change and hopefully will not be permanent. There are New Covenant funds available to use toward the operating budget if absolutely needed. For items related to Stewardship, Wills, and Memorials Josephine Ramsdell left money to the church. Session decided to use it for refurbishing the sign at the front, sending two Sunday school teachers to the annual Presbyterian Church educator’s conference, and the roof repairs.
At Morgan Stanley Smith Barney as of December 31, 2009 there was money market fund. These are our Clarkson Chemistry Award, Doris Ormsby Christian Education principal, plus other unidentified monies. This is in Western Asset Money Market Fund Class A and Western Asset Government Money Market Fund Class A.
Morgan Stanley Smith Barney is also holding for us shares of stock. There are donated shares of Microsoft. As of December 31, 2009. William N. Riggs gave the church shares of Community Bank stock in memory of his family; W. Frank, Carolyn N., and Stephen J. Riggs. This is to be kept in an endowment account with only the dividends to be used by the church for whatever the church deems necessary at the time they are received.
Refer to the Worship and Music, as well as the music director’s report for information about other memorial funds being put toward an organ console renovation.
The Organ Endowment, Mary Lou Hultberg Music Program Endowment, and other endowment monies are in New Covenant Mutual Funds. New Covenant Trust Company, N.A. is a subsidiary of Presbyterian Foundation. The Organ Endowment is in Balanced Growth Fund.
Other Funds: New Covenant Balanced Income Fund. New Covenant Income Fund. The Presbyterian Foundation is the administrator of our permanent endowment funds: Shaw Maintenance Fund, Mary Lou Hultberg Memorial Fund, and Helen J. King Organ Maintenance Fund.
“The Presbyterian Foundation owns and manages over 6,500 permanent endowment funds which benefit a variety of beneficiaries specified by the donor or organization that established the fund. Distributions are calculated using the Foundation’s Permanent Endowment Spending Formula Policy (“Spending Formula”), a total return policy. The Spending Formula takes into consideration the historical and projected factors of inflation, the stock and bond markets, as well as proper margins for safety. Using the Spending Formula, payments are calculated using a fixed percentage payout of five percent (5%) and a rolling twenty quarter average of the funds market value with an eighteen month lag. The Spending Formula seeks to preserve the long-term purchasing power of the Permanent Endowment Fund, while at the same time providing appropriate and sustainable levels of income to support mission both now and in the future.” May 2007
Shaw principal. Helen J. King Organ Maintenance principal. Estimated 2010 income payout information is not available yet.
Through Presbyterian Foundation we are also an eventual named recipient of a life income plan. “Through a life income plan, the donor or persons named by the donor receives income for life. After the last recipient’s lifetime, the remaining balance is either distributed as a gift to benefit a particular cause, church, institution, or other organization or it will establish a permanent fund at the Foundation, from which income will be distributed to your organization.” December 2007
Treasurer this year was Cynthia Coleman. Bookkeeper was Mary McGreevy, McGreevy Enterprises, Inc. Co-chairs were Martin Heintzelman and Ranota Hewitson. Other committee members were Dawn Bartow and Dianne Morrison.
NOTE: Detailed information on monetary amounts in the budget are availalbe to church members and can be obtained at the church office.
Respectfully submitted,
Ranota Hewitson, Chair
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First Presbyterian Church of Potsdam, New York