Prepared by Tom Rosen, Board Treasurer
The purpose of the treasurer’s report is to provide transparency about our current financial position. This report includes considerable detail –you will have access to most of the information that the Finance Committee and the Board use to make informed finance-related decisions.
Note, we often refer to FY18 and FY19. FY is short for ‘fiscal year’ or financial year, which is different from a standard calendar year. Bet Ha’am starts the fiscal year on July 1 each year and ends the year on June 30 of the following year. The most recent fiscal year began on July 1, 2018 and will end June 30, 2019.
There are sets of documents:
- Summary of FY19 (pending): This package includes the current year’s standard monthly financial package, the documentation reviewed by the finance committee and board. It is prepared after each month’s end. There is a short, written summary about the health of our financial operations before the financial reports. We do not prepare a monthly report for the first two months of the fiscal year (July and August) as there is minimal meaningful detail during the summer.
- Financial Health Report for 2018-2019. This document will help you understand how retiring our mortgage does not change our operating budget; why we all need to contribute to onegs; why we are creating a legacy committee.
- Below is a narrative description of the current year to date along with supporting documents.
We have completed ten months of this fiscal year.
P&L: The P&L is on a modified cash/accrual basis. On the income portion, for the most part, amounts shown are the cash received for the current fiscal year. Billed but not paid amounts are not recorded. Primarily, the items that have outstanding billed amounts are school fees and dinners, dues and rental income. On the expense portion, most recurring monthly items, including payroll, are posted when paid. We pay all of our bills as soon as they are received and have no long-term contracts (except for employment). Program expense, most maintenance expenses and any other significant expenses are adjusted to the proper fiscal year.
Income: Most income items are close to where they should be. Machazit and Nediv Lev are slightly behind the dues number at this time last year. It is anticipated that the final number could be about $5,000 less than the budget. A Storied Affair did extremely well – it was a sellout and when all the numbers are finalized it should be a little above the net budget number of $20,000. Reimbursed purchases are way above budget, but this is offset by a way over budget Professional Development expense (lines 52 and 157).
Expenses: We would love if more families sponsored Onegs – this can be done in honor of someone’s birthday, an anniversary a yahrzeit, etc. – as we are way over budget (close to $4,000 over budget). You can either bring in food for the Oneg or make a donation and the office can do the shopping and setup. The school expenses that are above budget are paid for by a grant, so they will not adversely affect the bottom line. Software under Office Expenses (line 127) is running a bit high as we are working on a new web site. Copying and Telephone under Office Expenses (lines 128 and 132) are both over budget. For the copying number, we created a major new member packet that was not anticipated and as for telephone we did an incorrect calculation for the budget. Salaries and Benefits are looking good (66% of all expenses). Nothing else is really noteworthy at this time.
The year-end net budget number is a deficit of $32,327. At this early time, I believe we have a good chance of doing better. I added a column on the right – Expected. This is what I anticipate the final numbers for the year will be. With two months to go I am anticipating a final deficit of about $24,000. The numbers in column “M” denote additional clarification on the Notes page.
Balance Sheet: All checking/savings amounts are accurate. Of most interest, the top portion (lines 8 to 69) present the bank, individual fund and investment account balances. The mortgage balance (ZERO) is on line 108 and outstanding pledge balance is on line 73.
The operating cash position of $209,847 is $12,746 less than last year at this time. (Operating means funds for our day-to-day operating expenses. It doesn’t include capital campaign or restricted funds.) In general, since most of the income arrives at the beginning of the fiscal year and the expenses are spread throughout the year, I would expect the cash position to decrease a bit as the year progresses.
Mortgage: At the end of December was at $300,000. We have made additional payments during the past three months, and received some major pledge cash early, to be able to retire the mortgage! Original ending date was May 15, 2029. Please remember, since the mortgage (principal and interest) was paid from our capital account, it never negatively impacted our operating (day-to-day expenditures) account and for the same reason, going forward, not having those expenses will not make the budget any better.
Recently we replaced the boiler for $13,000 and need to spend around $20,000 for security related improvements. These expenses are from the capital campaign account. At the end of March there was $65,200 in this account. As the building ages we will have an increasing need for additional money in our capital (endowment) account.
LED: We have been working on reducing our energy needs (and carbon footprint) as LED technology has become available. We recently replaced the ten parking lot metal halide lights with LED bulbs. This will save 93 watts per bulb, or about $245 a year in electricity. (Assumes an average of four hours/day) We already had three blown-out bulbs so we needed to hire an electrician and lift anyway. Other bulbs were going to go dead soon as the average life for the metal halide bulbs was 10 years. The LED lights should last for over 30 years! Payback is only a couple of years.
We replaced the two halogen flood lights in the courtyard with LED lights that are more than twice as bright. This will save 110 watts total per hour, or $82 a year. They are on an average of 12 hours a day. The LED bulbs should last three years vs. six months for the old halogen lights. Payback is only four months.
We replaced 36 halogen bulbs in the sanctuary with LED lights for a savings of 1,152 total watts per hour. This could be a savings of $161 a year (3 hours/day-5 days/week-52 weeks). Payback is about a year.
Total wattage saved per year for these three changes: 2,738,800.
Equivalent to saving 1.9 metric tons of Carbon Dioxide, or 4,734 miles driven by car or 218 gallons of gasoline.
We are working on finding acceptable bulbs to replace the tube halogen bulbs in the sanctuary and hallway. Most current replacements are too large.