2017 Financial Report to Parkway UCC January 28, 2018



This is the text of the 2017 Financial Report to the Congregation delivered at the service on January 28th, 2018. The numbers are rounded to the nearest thousand. Answers to questions asked in the education sessions on Sunday the 21rst or on the 28th are included at the end of the text.2017 was a good year financially! We accomplished our missions using only 90% of our budgeted expenses. We finished 2017 with a cash balance of $49,000. The council voted to split this, with 10% going to outreach activity determined by Christian Services, 45% to savings, and 45% carried in to 2018. The 2018 beginning balance for expenses is $69,000. This is $22,000 carried in from 2017 (the 45%), and $47,000 from prior year giving (pledges and donations received in 2017 designated for 2018 use). The $69,000 will cover about 8 weeks of expenses. We also have savings of $68,000 which would be another 8 weeks. So we started 2018 with enough cash to keep our doors open, and pay our pastor and staff, for 16 weeks. The point is that we need your pledges and donations to stay open. Some of our members have automated their giving by using the bill pay services of their bank or credit union. I encourage you to consider doing this. There is no fee to Parkway for this service. There is a pattern of not enough income to meet expenses in the summer months. This would be less of a problem if more members would schedule their generous giving through their financial institution.We do have other money that has designated purposes. At the end of 2017 our everything number is $380,000 in cash equivalent assets. This is an increase of 34% ($96,000) over what we had at the end of 2016. This is due in part to rental income from Miriam Academy in 2017 of $79,000. Toward the end 2017, with agreement from the Stewardship commission and approval by our Council, we moved more of our designated purpose cash into United Church Funds. I have been asked to explain what that is. United Church Funds was established in 1909 to manage retirement funds for Congregational pastors. Over the years they have developed comprehensive asset management and financial services available only to UCC churches and other faith based institutions. They currently serve 872 churches and 29 other UCC related entities, managing over $800 million of UCC assets.We invest in their Total Equity fund. This is a widely diversified, socially responsible fund, which had a 24% return in 2017. The investment market has been particularly strong. We should not expect this high return in every year. How do they produce such remarkable results? All staff are salaried. There are no bonuses to executives. Their board of directors are all volunteers. They are headquartered in New York, but their representative, Matt Wagner, who came here and met with our Stewardship commission, lives in Illinois, near St. Louis.At the beginning of 2017 we had $78,000 invested with United Church Funds. That was 60% of our designated Old Sanctuary Fund that has been at United Church Funds for years. What was $78,000 a year ago is now worth $103,000 due to the high return on investment. The total Old Sanctuary fund is $159,000. During the last few months of 2017 we moved the remainder of the Historical Sanctuary fund, the Endowment Fund, and our savings, from cash accounts at Charles Schwab and US Bank to United Church Funds. As of now we have $239,000 invested there.What I have called our savings of $69,000 is part of what we have at United Church Funds. We named it the Council Discretionary account because it requires a vote of our council to take money out of savings. 45% of the 2017 remaining cash, and 74% of the Miriam monthly rental income goes into savings. We will have income from Miriam through mid 2019, or mid 2020 if they take their option for a fourth school year. Putting most of that income into savings is our plan to extend the benefit of sharing our space with Miriam. If we can keep up our savings rate, and not take any out, by the end of Miriam’s 3rd school year in mid 2019, we will have 26 weeks of operating expenses in ments or answers to questions asked:How did the Old Sanctuary Fund get started? In 1998 member Pearl Sellenriek donated $125,000 and established the fund. Use of the money is restricted to maintenance or repair of the historic ment: Money described in the report as designated are for the most part restricted, meaning the money can only be used for a specific purpose.How much is the Building Fund? The current value is $26,000. This fund is restricted to repairs of the new sanctuary and buildings.How much was our charitable giving in 2017? Total giving was $43,600 (equivalent to nearly 10% of the operating expenses) comprised of $18,900 directly to charities, and $23,700 through Our Churches Wider Mission (OCWM) and the St. Louis Association. ................
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