1. April 30, 2014 St. James Parish Council Meeting Finance Committee Report For the Nine Months Ended 31 March 2014 Confidential – For Discussion Purposes Only

2. 2 Finance Committee Report – Table of Contents Pages 3-4Financial Report for Nine Months Ended 31 March 2014 – Executive Summary Page 5Statement of Operations for the Nine Months Ended 31 March 2014 Page 6Statement of Financial Position at 31 March 2014 Page 7Comparison of Actual Results to Forecast for Nine Months Ended 31 March Page 8Full Year 2014 Forecast 2 and Full Year 2014 Forecast 3 Page 9Forecast 3 – Full Year 2014 Forecast 3 by Quarter Supplemental Information Pages 11-12Capital Improvement Plan for Fiscal Year 2014 and 2015 Pages 13-14Investment Actions for the Investment Fund in Fiscal Year 2015 Page 15Policy and Charter for the St. James Investment Fund Page 16St. James Parish “7-Point Financial Plan” for Fiscal Year 2014 Page 17Statement of Operations for Fiscal Year 2012 and 2013 Page 18Statement of Financial Position at 30 June 2012 and 2013

3. 3 Financial Report for the Nine Months Ended 31 March 2014 – Executive Summary 1.For the nine months ended 31 March 2014, St. James incurred ($7,976) deficit, excluding the Capital Fund. The ($7,976) deficit is ($28,805) worse than the forecast $20,829 surplus as explained below. The Capital Fund received $48,857 and spent $7,891 to date on the Church Floor Project. The Parish has adopted fund accounting as indicated on slide nos. 5-6. 2.The primary causals for the actual results being ($28,805) worse than forecast is as follows: Sunday and Holy Day collections were down ($11,832) as compared to forecast; Heating fuel costs were up $16,374 as compared to forecast; Maintenance and building repairs were up $7,966 as compared to forecast; and, Health insurance expenses were up $7,060 as compared to forecast.

4. 4 Financial Report for the Nine Months Ended 31 March 2014 – Executive Summary 1.The frigidly cold winter and significant snowfall caused a dramatic increase in heating fuel costs, snow removal, and salt expenses. The heating fuel costs of $31,374 were up 209% as compared to the $15,000 forecast amount. Moreover, the maintenance and building repairs of $25,612 principally relating to ground services (e.g., snow removal, salt, etc.) were up 145% as compared to the $17,646 forecast amounts.

5. 5 Financial Report for the Nine Months Ended 31 March 2014 – Executive Summary (continued) 4.For “Forecast 3,” St. James anticipates that it will incur a ($49,307) deficit for FY 2014. The primary causals for the forecast ($49,307) deficit for FY 2014 is due to increased health insurance, excessive heating fuel costs, and ground services expenses that were up significantly principally due to the cold winter and significant snowfall. For the remainder of FY 2014, St. James should focus on controlling expenses and increasing contributions. 5.For the nine months ended 31 March 2014, St. James transferred $25,000 from the Investment Fund to the General Fund to fund operations and the Investment Fund earned $14,346 (2.8% annualized yield) for the fiscal year to date. The Investment Fund balance at 30 June 2013 was $703,120 and the balance at 31 March 2014 is $692,466 ($703,120 + $14,346 investment income – $25,000 drawdown = $692,466). 6.The 2014 Annual Catholic Appeal target is $14,750 ($245,828 offertory for FY 2013 x 6%). As of 31 March 2014, St. James has received $9,973 toward the $14,750 goal. Any shortfall will have to be paid by St. James directly to the Archdiocese and St. James will receive a 100% rebate for contributions exceeding the $14,750 goal for the 2014 Annual Catholic Appeal.

6. 6 Statement of Operations for the Nine Months Ended 31 March 2014 (segmented by the Four Funds pursuant to Fund Accounting)

7. 7 Statement of Financial Position at 31 March 2014 (segmented by the Four Funds pursuant to Fund Accounting)

8. 8 Comparison of Actual Results to Forecast for the Nine Months Ended 31 March 2014 (excluding the Capital Fund)

9. 9 Full Year 2014 Forecast 2 and Full Year 2014 Forecast 3 (excluding the Capital Fund)

10. 10 Forecast 3 – Full Year 2014 Forecast 3 by Quarter (excluding the Capital Fund)

11. April 30, 2014 St. James Parish Council Meeting Finance Committee Report For the Nine Months Ended 31 March 2014 Supplemental Information

12. 12 Capital Improvement Plan for Fiscal Year 2014 and 2015 Below is the tentative prioritized Capital improvements plan and the estimated cost of the special projects, subject to approval by Father Koys in consultation with the Parish Council. The Finance Committee recommends that St. James proceed with destroying the two diseased trees for an estimated cost of circa $2,000 to ameliorate this safety issue. Capital Improvement ProjectsEst. CostProject Timing 1.Church Floor project (180 th anniversary)$30,000Jan.–March 2014 2.Destroying two diseased trees (with lights)$ 2,000April–June 2014 3.Fenced in yard behind rectory for a dog$ 3,000July–Sep. 2014 4.Renovation of Sag Hall project$ TDBCalendar Year 2015 5.New outdoor mausoleum with bathroom$ TBDCalendar Year 2016 6.Paving the parking lot$ TBDCalendar Year 2016 Total estimated cost of Capital improvements$35,000

13. 13 Capital Improvement Plan for Fiscal Year 2014 and 2015 (continued) 2.St. James has received $48,857 for the Church Capital Improvement Fund. The estimated cost for the “Church Floor Project” repairs and improvements is $30,000 and the parish has incurred $7,891 through 31 March 2014 as indicated below: Est.ActualOver Church Floor ProjectCostCost(Under) Install hardwood oak flooring for the sanctuary$ 5,000$3,161($1,839) Replace the carpet in the entire church 6,000$ 0( 6,000) Install communion rail in the sanctuary 9,000$ 0( 9,000) Restoration for the church 3,000$ 0( 3,000) Parish Hall furniture and fixtures 5,000$4,730( 270) Refurbish the entrance doors to the church 2,000$ 0( 2,000) Total cost for Church Floor project$30,000$7,891($22,109)

14. 14 Investment Actions for the Investment Fund in Fiscal Year 2015 1.The Investment Fund’s return on investment for YTD 2014 was 2.1% based upon the revised asset allocation of approximately 15% to the Growth Fund, 32% to the Balance Fund, 26% to the Fixed Income Bond Fund, and 27% to a “one year” CD that is forecast to result in an annualized 4.7% yield, assuming this allocation for a full year. 2.Upon the maturity of Certificate of Deposit No. 1 on 29 September 2014, the Finance Committee preliminarily recommends that $123,338 be allocated to the Balanced Fund and the remaining $67,287 be allocated to the Growth Fund. This will result in a 50% allocation to the Balanced Fund, 25% allocation to the Growth Fund, and 25% allocation to the Fixed Income Bond Fund. 3.The asset allocation of the Balance Fund is approximately 50% equities and 50% fixed income and the asset allocation of the Growth Fund is approximately 75% equities and 25% fixed income. The asset allocation of the underlying securities in these mutual funds is approximately 43% equities and 57% fixed income that is forecast to have a 6.5% annual return on investment.

15. 15 Investment Actions for the Investment Fund in Fiscal Year 2015 (continued)

16. 16 Policy and Charter for the St. James Investment Fund 1.For its investment policy, St. James has adopted a conservative balanced portfolio, which seeks a 4% to 6% annual return on investment. Pursuant to the Archdiocese’s investment rules and regulations, parishes are not allowed to invest outside of the Archdiocesan Bank. 2.The purpose of the St. James Investment Fund is to hand-down the principal of this fund to future generations and to have available funds for extraordinary repairs and maintenance necessary to maintain the safety and beauty of St. James old church building. 3.St. James Investment Fund will be subject to an annual withdrawal limit equal to 5% of the fund balance or circa $35,000 for FY 2014 to fund general expenses, except in the case of an emergency as determined by the Pastor in consultation with the St. James Parish Council. 4.For FY 2014, St. James anticipates transferring $45,000 from the Investment Fund to fund general expenses. St. James does not intend to further drawdown the principal of the Investment Fund, unless necessary to fund emergency expenses or extraordinary repairs as determined by the Pastor in consultation with the St. James Parish Council.

17. 17 St. James Parish “7-Point Financial Plan” for Fiscal Year 2014 1.Improve the return on investment from the Investment Fund by adopting a prudent investment policy that seeks a reasonable return on investment and preserves corpus. 2.The parish is “tightening its belt” by reducing expenses to the extent reasonably possible. The parish is also seeking ways to be more efficient and taking certain activities in-house. 3.Actively monitor and control expenses to ensure St. James substantially meets budget. 4.The Parish Council will review actual results to budget on a quarterly basis and recommend appropriate actions to Father Koys to ensure the parish substantially meets budget. 5.Capital expenditures will be paid for via special fundraising efforts and not paid from the Investment Fund or debt financed, unless necessary for safety reasons. 6.We encourage you to invite new families to St. James to increase the number of parishioners. 7.We ask you to prayerfully consider increasing your Sunday contributions to St. James to the extent your personal situation allows.

18. 18 Statement of Operations for Fiscal Year 2012 and 2013

19. 19 Statement of Financial Position at 30 June 2012 and 2013