2005 Annual Report

CHURCH OF OUR SAVIOUR
59 Park Avenue @ 38th Street
New York, New York 10016
Tel: 212/679-8166 - Fax: 212/213-0352

Rev. George W. Rutler, S.T.D., Pastor

DATE: November 30, 2005

TO: Pastor & Parish

RE: "Saving Our Saviour" - A Review of Stewardship - 2005 Update

I submit the Annual Report for the fiscal year ending August 31, 2005 with a prior year comparison. Independent Public Accountant, Charles La Cagnina, who is a professional consultant to the Trustees & Finance Council, assisted me in this compilation. Round dollar figures will generally be used in the commentary.

Commentary - Balance Sheet

Working Capital:

In 2001, I set a goal of $150,000 for 3 months working capital (current assets less current liabilities) to cover monthly operating expenses. I am pleased to report that this goal has been achieved with working capital of $161,080. However, I also suggest that any professional planner would recommend a minimum of 6 months working capital. Nevertheless, this is the first time in this parish's history that anything close to an acceptable level of working capital has been achieved.

Capital Funds:

Capital expenditures decreased capital funds (income less expenditures) by over $200,000, reflecting continuing work on restoration projects: primarily the roof & exterior building project. As part of continuing fund raising programs, gifts of securities increased by almost $80,000.

Net Pledges Receivable:

The outstanding balance now stands at about $15,000, down from $63,000 last year, as faithful parishioners make good on their pledges. The 5 year (Jun-01 thru Jun-06) Restoration Campaign Pledge Program will soon reach its end. We hope that all with remaining balances will pay them off as soon as possible. And importantly, we thank & bless all who have been able and have been faithful to their promises.

Fixed Assets:

These have increased by more than $700,000 as capital improvements, resulting from capital projects, are booked as assets.

Long Term Liabilities:

These represent old, unpaid fees and insurance premiums to the Archdiocese incurred by past administrations. In recent years, this parish has been especially faithful and generous in supporting the Annual Cardinal's Appeal and full payment of the Cathedraticum (assessment taxed on each parish) and all other Archdiocesan fees and insurance programs. All should remember that the Mortgage Debt of this parish was the first thing addressed by the current pastor and has it been "Paid in Full."

Commentary - Income / Expense

Operating Income:

Income from regular collections (Sundays, weekdays and Holydays) were on par with the prior year. Receipts from Shrines and Votives were lower by $8,000 and the direct cost of candles was up by $5,400 yielding a net decrease of $13,400. Poor Box receipts were lower by $2,300 as was McMahn Hall rentals by $6,000 and the Cardinal's Appeal rebate by $5,500. These were largely offset by an $18,000 increase in the Christmas & Easter drives and $1,200 in money market income, so that Total Operating Income was off by $6,500 versus prior year.

Operating Expenditures:

Clergy and Lay personnel costs were lower by $12,000 and $42,000 for a total reduction of $54,000.

Due to a lack of priests, this parish is currently manned, full-time, by only the pastor. It is remarkable that this pastor is "willing and able" to do the work of three priests.

Greatly reduced Lay personnel costs reflect "contributed professional services" by dedicated parishioners. This situation is neither appropriate nor practical for an on-going operation and exaggerates the resulting surplus of $98,750.

I decided to use some of the value of the "contributed professional services" to make, so far, a $19,000 investment (I have budgeted $25,000) in technology; otherwise, the surplus would have been $118,000. This investment should have a two year payback in terms of efficiencies and cost savings. After that, continued productivity and cost improvements will be free to this parish for years to come. However, this program requires a lay staff capable of learning / utilizing this technology. This situation is well known and must be addressed as soon as possible or these gains will not be realized.

The above and other expense items resulted in a net decrease of $35,000 of Total Operating Expense.

Operating Surplus:

This totaled $98,750, which is surely a record result but was only accomplished because the conditions described above.

Commentary - Capital Income / Expenditures

Capital Income:

Overall capital income was augmented by $350,000 (the balance of the $500,000 gift - $150,000 was received last year) for the Eileen Manning Memorial Pipe Organ. In addition, an estate pending in the amount of $53,000 was recorded last year. Other capital income declined by $185,000, for a net reduction of $37,000 versus prior year.

Capital Expenditures:

The sum of $845,090 was spent on capital projects; mainly, the roof and exterior building and the new pipe organ projects. Spending increased by $58,000 from prior year.

Net of Capital Income & Expenditures:

Capital spending exceeded capital income by $113,000. Unlike the Operating Surplus / Deficit, which should always be positive, capital expenditures in excess of capital income are to be expected, as funds raised for capital purposes are spent.

In conclusion, it was yet another, "record year."

Please click on the links below to view Excel spreadsheets containing the 2006 balance sheet and profit & loss statement for the parish:

Profit & Loss Statement

Faithfully yours,

Gerard A. Carey

Trustee / Finance Chairman