2018 interim Finance council review Holy Name Parish 2018 interim Finance council review Good evening/ morning I am here today to provide a review of Holy Name’s financial statements for the nine months ended September 30st 2018

2 parts to funding church affairs Operating fund supports day-to-day functions Pastoral work and office administration Building maintenance Ministry programming Diocesan support Building fund Supports $23,327 monthly payment on $2.73 million mortgage Major renovations completed in 2012 Mortgage has been reduced by $1.1 million over 5 years There are two parts to funding our church affairs First, we have regular collections which support the day to day operations of the Parish. This includes Pastoral work, office administration, building maintenance, and ministries. Financial support to the diocese is also calculated out of this collection. Any surplus is either put into savings or used to supplement the building fund. The building fund was created to pay for major renovations completed in 2012. This fund has to support a monthly payment of $23,327 to pay down a $2.73 million mortgage that helped finance the renovations. In past years we have received major gifts from individuals which has helped pay down the principal on this loan. $1.1 million of principal has been paid down since the renovations.

Monthly operating expenses consistent over past 4 years Collections are not as consistent from month to month Monthly collections are approx $5,000 less than prior years’ 2018 expenses to date continue to be controlled For 2018 to date, our monthly operating costs (indicated by the black line in the chart) have remained relatively consistent through the first nine months of the year. Our regular collections (the blue bars) vary more and tend to be very seasonal. We are currently running a $30,000 deficit after nine months, hopefully collections increase through to the end of the year to cover this. Our gratitude is due to Fr Mario and the staff for their prudent management and spending. The remainder of my presentation will focus on the building fund.

We received significant year end building fund contributions Regular building fund collections are averaging $20,500/ month or $246,000 annually Mortgage payments are $23,327 per month or $280,000 annually on a $2.7 million loan This could result in a building fund deficit of $34,000 by year end This chart highlights our building fund collections and mortgage payment. The black line is our mortgage payment. Our goal is to have regular building fund contributions (monthly envelopes and pre-authorized payments are represented by the blue bars in the chart) meet or exceed our monthly payment. We have only done this once so far in 2018. We relied on increased contributions in March to bump up our average. Our regular monthly building fund collections averaged $20,500 per month – this is in line with prior years but means we will have to rely on large donations made at the end of the year to meet our mortgage payment requirements.

Average Monthly Contribution to Building Fund Total count = 361 families (2017) 284 families (2018) How are parishioners contributing to the building fund The circle on the left represents the year ended 2017 - 361 families contributed to the building fund through the use of envelopes, CC or PAD, etc. Some contribute every month but many have only contributed once or twice. The circle on the right is 2018 YTD. 284 families have contributed to the building fund in comparison. Each wedge in the pie chart represents the percentage of the families and their monthly average monthly contribution Based on 361 families, we need monthly contributions to average $65 per month or $775 annually to meet our mortgage requirements. Based on 284 families, we need monthly contributions to average $83 per month or $986 per year to meet our mortgage obligations. Hopefully those missing 80 families will come back in the last few months of the year. We really need to focus on trying to match the contributions from last year and shrink the size of the dark blue and orange wedges in favour of the grey, yellow, light blue and green. We are deeply grateful for your support and every dollar is appreciated. Please keep in mind this needs to be in addition to our regular collection.

Overall “Breakeven” Monthly cash costs average approx. $60,000 per month We are currently averaging $54,000 per month in total collections We will need to rely on significant year contributions to breakeven To put all of this in perspective, our total costs (including mortgage payment) continue to be a little over $60,000 per month yet we are collecting $54,000 per month. This could result in a year end deficit of $72,000. The pattern of our contributions over the past three years has been very consistent but every year we rely on large year end collections. Is there a way we can spread this out throughout the year and stop relying on single lump sum donations?

Nine months actual vs budget Variance to budget Regular collections 300,000 368,000 (68,000) Operating expense 331,000 326,000 (5,000) Operating Income (31,000) 42,000 (73,000) Building fund collections 184,000 215,000 Mortgage payments 210,000 5,000 Building Fund income (26,000) Together in Action commitment 29,100 40,200 (11,100) Budget surplus (deficit) (110,100) We budgeted a small operating profit to start creating a reserve fund for unforeseen expenses (with renovations now 6 years old, maintenance costs are starting to arise) – year to date we have a deficit of $31,000. Holy Name’s Together in Action commitment from the diocese was $40,000. To date we have received $29,000. Any surplus contributions to our parish’s commitment at year end is applied to the building fund. These amounts are not included in our operating results.

Convenient ways to make donations Automated payments Pre-Authorized Debits (PAD) from your bank account is most cost effective method for the parish Pre-authorized payments through your credit card allow you to earn points from your credit card Continue supporting your faith community when you are away Charitable gifts of marketable securities Specified United Way contributions Please discuss tax savings of making donations with your financial advisor Contact the office for more information or to enroll Please consider pre-authorized automated payments - it is not only convenient for you but also provides a level of predictability for the finance council to manage the church’s finances. Pre-authorized debit or credit card payment forms are available in the brochure rack in the gathering space There are other different ways to make financial contributions as well. Please contact the office for more details On behalf of Fr Mario and the finance council, Thank you for your attention and continued support of our faith community