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

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

Gerard A. Carey, Trustee / Finance Chairman

Ignatius F. Cuttita, Trustee

DATE:January 15, 2005
TO: Pastor & Parish
RE: "Saving Our Saviour" - A Review of Stewardship - 2005 Update

On the occasion of the 50th anniversary of this parish and in response to your request for a review of past financial policies and conditions, I submit the subject report.

The parish fiscal year runs from September 1st through August 31st and unless otherwise stated, comparative data will be based on this fiscal year. For example, "2001" shall mean the fiscal year beginning September 1st, 2000 through August 31st, 2001.

Financial data are presented on the accrual basis of accounting.

Mr. Charles La Cagnina, CPA, who is a professional consultant to the Finance Committee, assisted me in this work.



History of Ordinary Operations
To highlight the historical financial condition of this parish, I quote from "The Archdiocese Directed Parish Campaign Brochure", published in 1991. This was a widely distributed document.

"In a church such as this, one would expect the financial picture to be one of superlatives - generous giving, a large endowment, all expenses covered. Oddly enough, precisely the opposite is true."

"A recent Archdiocesan financial review indicates that over 300 (of 413) parishes have annual operating deficits and 140 - including Our Saviour's - are receiving emergency financial subsidies."

"For each of the 36 years of this parish's existence we have relied on loans and subsidies from the Archdiocese to keep this church open."

These subsidies are displayed in Table #1.

TABLE 1
Period	Subsidy
1960-64	$470,000
1965-70	$280,000
1970-75	$442,000
1975-80	$310,000
1980-85	$480,000
1985-91	$247,000
Total	$2,229,000

The Goal of this Archdiocese Directed Parish Campaign of 1991 was $1.4 million; the elements of which are shown in Table #2.

TABLE 2
Item	Amount
Emergency Repairs to Steeple & Sidewalk	$125,000
Emergency Operating Fund	$300,000
Restoration of Pipe Organ	$150,000
Washing & Sealing of Building Exterior	$120,000
Parish Outreach	$125,000
Music Fund	$125,000
Restoration of Church Murals	$30,000
Humidification for Nave	$30,000
Restoration of Pews and Kneelers	$15,000
Rebuilding of Elevator	$50,000
Offset Costs of Rising Staff Salaries	$100,000
Cardinal's Appeal - One Year Special Gift	$230,000
Total	$1,400,000

Over the next five years, by May 31st, 1995, the gross receipts totaled $374,970 and after deducting the Archdiocese 20% fee, the net proceeds to the parish were $299,976 as presented in Table #3.

TABLE 3
Gross Receipts	$374,970
ADNY 20% Fee	-$74,994
Net Proceeds	$299,976

The meager response to this campaign tells a different story than the folklore about the "good old days" and the parish "Elders and Beneficiaries", who purportedly funded and controlled the activities of this parish.

Based on parish records following this campaign, by the fiscal year ending August 31st, 2001, this parish continued to accumulate an Operating Deficit, which totaled $243,800.

The periods for the accumulated deficit are shown in Table #4.

TABLE 4
Fiscal Year	Deficit
1997	$49,500
1998-2000	$151,600
2001	$42,700
Total	$243,800

Again, based on parish records, at August 31st, 2001, Archdiocesan debt was as shown in Table #5.

TABLE 5
Mortgage Debt	$119,604.00
Property Insurance	$96,526.00
Total	$216,130.00

In addition, the parish has recently received a statement from the Archdiocese listing additional "old - from the 1990's" unpaid items as shown in Table #6.

TABLE 6
Medical Insurance	$10,135.00
Pension	$4,190.00
ADNY Assessment	$30,503.00
Total	$44,828.00

As part of my review in producing this report, this claim (heretofore unreported to the Finance Committee during my tenure) is under investigation by our professional consultant, Charles La Cagnina, CPA.

Despite Operating Deficits, this parish had a professional choir & musicians with a budget in excess of $100,000 per year as well as an active social calendar sponsored with parish funds.

In my opinion and from a stewardship standpoint, these programs can only be justified, if their beneficiaries are willing to pay for them after the parish's operating, maintenance and debts are paid.

Now we move on to more recent times…

The remarkable "turn about" in the financial condition of this parish is illustrated in Chart #1. The $243,800 Operating Deficit compares with an Operating Surplus for the three fiscal years 2002 through 2004 totaling $100,800.



The Surplus / Deficit for the years 2001 through 2004 are displayed in Chart #2



Table #7 lists the Operating Income and Expense for the same periods.

TABLE 7
Year	2001	2002	2003	2004
Income	553,706	562,606	561,284	617,848
Expense	596,427	549,642	543,253	548,019

Despite rising costs, which are not readily controllable, such as medical insurance, utilities, etc., paying off the mortgage, reducing expense and increasing income achieved this remarkable "turn about".

For example, in 2001, program expenditures totaled $24,115; $8,080 were spent on parish and volunteer "socials" and $12,162 were spent on professional musicians, with the bulk for a Cantor to lead the signing at a couple of Masses on Sunday. These expenditures were made in a year when the Operating Deficit came to $42,721.

These expenditures were reduced to $18,840 in 2002 and all but eliminated in 2003 and 2004 as shown in Table #8.

TABLE 8
Year	2001	2002	2003	2004
Program Expenditures	$24,115	$18,840	$824	$1192

As another example, a full time cook with associated wages & benefits was preparing only the supper meal 5 days a week. Due to the few number of clergy, this meal was often served for only one or two recipients. This position was eliminated and replaced with an "as needed" outside service at considerable savings.

Chart #3 displays the Operating Cash Balances for the period and illustrates the remarkable change in this parish's liquidity, building from a striking low (virtually broke) figure of $2,108 in 2001, to a healthier $76,708 by 2004.



However, there is more work to do on this score. As with any "family budget", this parish should have at least 3 months of operating expenses on hand. With monthly operating expenses of $50,000, the parish should have a minimum of $150,000 in reserve. This was one of the items in the Restoration Campaign Goal.

Archdiocesan Affairs…

In addition to paying for parish expenses, Archdiocesan costs for the Assessment / Cathedraticum and Annual Cardinal's Appeal have increased significantly during the period.

Table #9 displays payments for the Assessment / Cathedraticum.

TABLE 9
Year	Cathedraticum
2001	$24,556
2002	$28,275
2003	$40,602
2004	$40,200
Total	$133,633

And this parish has contributed heartily to the Annual Cardinal's Appeal, exceeding the goal set by the Archdiocese each year, as depicted in Chart #4.



Conclusion

While there has been a dramatic improvement in the "ordinary operations" of this parish, more work remains to be done in terms of the everyday support of parishioners and friends, who have the benefit of worshipping and participating in the reverent Liturgy, spiritually inspiring architectural beauty and enriching activities of this parish.

In addition to improvements in "ordinary operations", tremendous strides have been made in terms of funds raised and work completed in the restoration & capital improvements of the church roof and exterior building, grounds and sidewalks, altar & sanctuary and pipe organ.

Again, the work is not completed but it is clear that more has already been accomplished than in any time in this parish's history!

I shall give you a complete accounting of these works in a future report.

Please click on the link below to view the charts above in Excel spreadsheet format, as well as additional data:

• Saving Our Saviour Project History Spreadsheet
  [Note: Click on the tabs at the bottom of the spreadsheet in order to cycle through the various workboooks.]

Please click on the link below for this report in Microsoft Word Document format:

• Saving Our Saviour Project History in Word Format

Faithfully yours,

Gerard A. Carey
Trustee / Finance Chairman