St. Paul 2023 Annual Financial Report

Under the Code of Canon Law, the parish Finance Council exists to
aid the pastor on financial matters. Our council members are very dedicated and talented parishioners who work hard to help Fr. Wilson manage all parish financials. We express our sincere gratitude and appreciation for the shared knowledge, advice, and hours dedicated by our Finance Council.

Our parish continued to be blessed by Our Lord from a financial and facilities perspective in the year ending June 30^th, 2023.  We ended the fiscal year with $426K of cash for operations. 

This was driven primarily by increases in offertory and investment gains. Thanks to your continuous generosity our offertory exceeded plan by $167K. Your response to Fr. Wilson’s offertory appeal is enabling the parish to set aside reserves for required infrastructure maintenance over the coming years.  The market gains of the past year yielded $85K over plan on our endowments.  

As you review the attached financial statements you will see a strong balance sheet, statement of activity, and reserve position. We continue to carry significant obligations with the remaining church loan and projected cost to maintain campus buildings.

Fully aware of these responsibilities, our Finance Council recommended actions and implemented a plan in 2020.  The major components of the plan are:

• Eliminate Church Debt – excess principal payments of $297K were made on the church loan in 2022-23. These were in addition to our $144K in annual principal payments. We reduced the debt $441K or 10.2%. We continue to make excess principal payments targeting payoff in 11 years (vs. the 24 years remaining) and saving approximately $750K in interest payments.
• Stay Current on Infrastructure Needs – improvements totaling $398K were made in 2022-23 and are laid out in the “Maintenance & Capital Projects” chart.  Major enhancements include installation of security cameras inside the nave and transepts of the church, crack sealing the parking lots, fixing wall cracks, painting and sealing of church walls, replacing cap stones at Mary’s shrine.

The school has a new roof over the Preschool rooms, new flooring in the Miller Hall restrooms, additional cameras and complete software upgrades to the security system.  In addition, 3 HVAC units were replaced and 3 external door access systems were upgraded.   Government funding (EANS) was used to replace cafeteria tables and chairs, stage extenders, and purchase portable radios for safety at arrival, dismissal, and recess.  EANS funding also covered the conversion of an unused space to an additional Pre-school room and restroom.

The significant investment made during this past year to
repair, maintain, and improve our parish campus is part of a continuing effort to be good stewards of the trust you’ve placed in us with your children, campus facilities, and
monetary provisions.
  

• Establish a Reserve Fund – based on a reserve study conducted in late 2019 assessing the future capital needs of the parish, the Finance Council then approved and established reserve account targeting $350K-450K per year for future facility maintenance. The reserve fund stands at $1.3M as of fiscal year-end 2022-23. No reserve funds were used for fiscal 2022-23 improvements. The capitalized and operating budget accounted for $247K and government (EANS) funding of $151K was used for the balance of the improvements.

These charts and tables depict a summary Fiscal Year 2022-23 for your review. We thank you again, for your generous donations of time, talent, and treasure that make St. Paula truly dynamic parish! Most importantly, we thank our gracious Lord who continues to safely guide us as we remain faithful to His Great Commission to “Go and make disciples of all nations...” Our mission of evangelization is clear. We move forward spreading the Good News as we persist in being:

Inspired by St. Paul - Centered on Christ - Called to Holiness!

Yours in Christ,

Deacon Dean W. Racine 

Director, Parish Administration

Parish Life

Sacraments

Faith Formation

Service to Others

Support and Assistance

Maintenance & Capital Projects - Fiscal 2022-23

Summary – Statement of Activity

Total Income - over plan $218.6K (2.5%) and over prior year $502.6K (5.9)%.  

• Parish income over plan by $286.8K driven by offertory over plan $166.8K, bequests over $38K, investment income gains over by $85.4K, fund drives over $23.3K.   Offertory over plan 4.6% and over prior year 10.4%.  Total parish income over prior year $319K or 8%.
• School receipts under plan ($42.1K) or 0.8%, as some pre-pay dollars were booked in prior year.  Gains in pre-school and cafeteria offset majority of` miss. Total school receipts exceeded prior year by $184K or 3.9%.  

Total Expense – over plan ($364.1K) or 4% and over prior year ($672.6K) or 7.6%:

• Parish over ($130.2K) or 3.2% due to office supply costs, salaries, charities, security/maintenance repairs and church supply.
• School over plan ($233.9K) or 4.5% due to salary/bene exp., staff dev, technology,

Net income  – loss of ($499.9K) over planned loss by ($145.9K) driven by sal/bene ($291.7K), charities ($38K), office supplies/receptions ($47K) 

Total Cash for  Operations - $426.4K, plan miss of (-$292.6K) & off prior year (-$331.7K)

Bottom Line - Fiscal Year 2022-23

Highlights 

• Overall Income - exceeded plan $218.6K @ $9,080.3K 
• Overall Expense - exceeded plan (-$364.2K) @ $9,580.2K 
• Net Operating Cash - $426.4K was (-$292.6K) under plan
• Offertory - over plan 4.6% or $166.8K, up 10.4% and $359.8K over prior year
• School Income   - under plan 0.85% or ($42.1K) and expense over plan ($233.9K) 
• Parish Subsidy - parish subsidized school $511.4K or 13.4% of offertory

Allocation of Monies

• Reserve Fund – $351.5K saved, fund now $1,327.9K, at plan with reserve commitments
• Campus Improvements - expenditures of $397.9K for campus maintenance 2022-23
• Church Debt – principle payments of $440.6K, debt reduced 10.2% to $3.89M

Summary - Fiscal 2023-24 Budget

Total Income - $10.4M, planned increase of 1.3M or 14% 

• Parish Income – up $292K driven by offertory and Expense Reimbursement Credit (ERC)
• School income – up $983K, driven by enrollment +51, Pre-school +22, and tuition increase and Expense Reimbursement Credit (ERC)

Total Expense – $10.6M, planned increase of $1.02M or 10.7%

• Parish Expense - up $544K, driven by investment in four additional parish staff salary/benefits, and increase in diocesan assessment to the parish 
• School Expense - up $479K, driven by additional office staff, teachers, increase in teacher’s aide wages, and benefits cost

Net Income - ($247,424)

Net Income for Operations - adjusting down for restricted income monies and adding back depreciation expense (non-cash item) we have a planned budget surplus for operations of $720K for fiscal 2023-24.  

This surplus will be used to continue extra payments on the loan principle and to continue to build the reserve fund for future repairs and maintenance.