2006 Annual Report

CHURCH OF OUR SAVIOUR
59 Park Avenue @ 38th Street
New York, New York 10016

Tel: 212/679-8166 - Fax: 212/213-0352

DATE: November 30, 2006

TO: Pastor & Parish

RE: "Saving Our Saviour" - A Review of Stewardship - 2006 Update

I submit the Annual Report for the fiscal year ending August 31, 2006 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 - Statement of Financial Condition

Working Capital:

Last year I commented: "that any professional planner would recommend a minimum of 6 months working capital." And I am pleased to report that significant progress has once again been made on this score. Working capital of $250,758 against the goal of approximately $300,000 was achieved.

Capital Funds:

Capital funds increased by $39,963, reflecting the continuing generosity and support for parish restoration projects, the substantial completion of the roof & exterior building project and improved money market returns. The next major project will be the restoration of the building interior and its mechanical, electrical, plumbing and HVAC systems.

Net Pledges Receivable:

The outstanding balance of the remaining few pledges now stands at $4,112, down $10,735 from last year, as faithful parishioners complete their payments. The 5 year Restoration Campaign Pledge Program will end this year. We hope that those 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 $211,412 as capital improvements are booked as assets.

Old ADNY Liabilities:

The amount $142,049, payable to the Archdiocese, represents old unpaid charges and insurance premiums, which were incurred by past administrations. In recent years, this parish has been especially faithful and generous in supporting the Annual Cardinal's Appeal, the full payment of the Cathedraticum (7 ½% assessment tax on ordinary income) and all other Archdiocesan 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." We hope that some settlement can be reached regarding these old liabilities.

Commentary - Statement of Activities

Operating Support & Revenue:

Income from regular collections (Sundays, weekdays and Holydays) was lower by $16,095 versus prior year. Most of this difference is attributable to the calendar, as two Holydays fell on Sundays during this fiscal year. In addition, many have embraced support of the Restoration Fund for our magnificent church and have designated their gifts as such as opposed to the general collection.

Receipts from Shrines and Votives, including the direct cost of candles, were lower by $5,134 as were Poor Box receipts by $2,720. McMahon Hall rental income was up by $16,300 as was the Cardinal's Appeal rebate by $5,857. Christmas & Easter drive receipts increased by $7,115 as did money market income by $5,131, so that Total Operating Income was up by $8,360 versus prior year.

Operating Expenditures:

The combined Expense for Clergy and Lay personnel is 57% of total expense and increased by only $7,167. It is important to remember that these costs were reduced by $54,000 last year.

The expense for Clergy personnel is only 8% of total expense. Due to a lack of priests, this parish is currently manned, full-time, by only the Pastor. It is remarkable that our Pastor is "willing and able" to do the work of three priests. In addition, the food & beverage expense for the Rectory was reduced by this Pastor, another $6,258 from prior year to only $6,416 - the lowest ever.

After personnel, the next largest expense item is Utilities at $70,027, representing 14% of total costs. These two expense categories account for about 70% of total costs.

Total expense amounted to $498,421, which was $14,173 lower than last year. A hiatus in spending on our productivity improvement program (see last year's report) accounted for most of this result. However, we plan to resume investment in this program as well as a long overdue re-modeling of the reception area and offices.

Operating Surplus:

This totaled $121,283, which was $22,533 better than last year. This resulted from slightly higher income and lower expense as described above.

I thought it would be interesting to review the "Surplus / Deficit" figures beginning with the year prior to Fr. Rutler's appointment on September 1st, 2001, the start of the fiscal year ending 2002.

Commentary - Capital Programs

Capital Revenue:

Overall capital revenue was $245,242. Especially notable was a gift of $77,000 from the Richard Kirkham Trust.

Capital Expenditures:

The sum of $262,862 was spent on capital projects; mainly, to substantially complete the roof and exterior building projects.

Net Capital Revenue & Expenditures:

Capital expenditures exceeded capital revenue by $17,620. Unlike the Operating Surplus / Deficit, which should always be positive, capital expenditures in excess of capital revenue 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:

Balance Sheet

Profit & Loss Statement

Faithfully yours,

Gerard A. Carey