2018 Budget Summary

HUMC 2017 Financial Results and 2018 Budget Summary

We have finalized our 2017 financial statements and Ad Council has approved our 2018 budget. Below is a summary along with the links to the 2017 financial results and the approved 2018 budget if you’d like to see all the details.

HUMC 2018 Final Budget

HUMC Final Income Statement 2017 

HUMC Final Balance Sheet 2017

The full summary presented to Ad Council along with hard copies of the detailed 2017 financial statements and 2018 budget are in the office if you desire a comprehensive set. We have a fully transparent financial reporting policy. So, please let me know if you have any questions or comments or would like any additional information.

2017 Results

  • We had strong total revenues of $743,000 in 2017 (about $23,000 or 3.2% over budget). Pledge receipts were $11,000 (2%) under budget at $526,000.
  • Total 2017 expenses of $648,000 were nearly 10% under the budget of $716,000 as Trustees completed very few capital projects. Staff Parish was $26,000 under budget, which reflected the vacant youth leader position as well as lower continuing Education expenses.  Our other program expenses were slightly below budget in the aggregate.
  • Record revenues combined with lower expenses created a huge surplus of $95,000 compared to our planned balanced budget. Most of this excess was added to our capital reserves along with carrying over a portion to balance our 2018 budget. Building our reserves remains important given our aging pledge demographics and a disappointing 2018 pledge result (totals were $32,000 or 5.7% below 2017 levels). Trustees’ are unlikely to continue such minimal capital expenses and Staff Parish will be back to its planned run-rate ($422,000).

2018 Budget

  • For 2018, our aggregate pledges were down 5.7% at $506,000. We budget 97% of actual pledge commitments to account for the possible shortfall in payments due to a variety of personal factors. In addition, one generous family again made an additional gift above their pledge to cover the entire cost of our pastoral care position with H.D. Mitchell.
  • We had 97 families make a pledge for 2018 with the following changes compared to last year: 7 pledges were from new families, 32 represented increased levels of giving, 9 represented decreased levels of giving and 49 represented the same level of giving. The key issue for 2018 was 16 families who pledged in 2017 did not pledge. This was a combination of issues: health (including members that passed away), job changes, moves and some specific and expressed concerns with HUMC. I discussed all feedback received with our pastoral team led by Pastor McCoy. Thank you to all members who made a pledge—it’s that knowledge of your generous support that allows us to make our staffing and other critical program investment decisions!
  • The approved 2018 budget fulfills the requested expenses by our various committees and were essentially flat the 2017 budget. To accomplish an essentially balanced budget, we applied $20,000 of the 2017 surplus to 2018 revenues as a carry-over. While not ideal, we did a similar carry-over in 2016 and finished that year with a surplus. That brings total 2018 budgeted revenues to $713,000.

Conclusion

  • Our ability to balance our budgets and enhance our balance sheet reserves over the last several years has placed us in a strong financial position. Combined with the long-term benefits of the Copper Cross Endowment, we can maintain and enhance the impact of HUMC on our congregation and community. Thank you to our membership for the enormous love and support for HUMC demonstrated by these generous gifts over the years. Truly amazing!
  • This financial generosity gives us the resources to redouble our efforts (Pastors, staff and congregation) to focus on agreed upon vision and priorities:

Objective: Increase the number of new regular participants (note this is broader than membership or worship attendance)

  • Strategy 1: Engage with and attract families with children at home.
  • Strategy 2: Be the definition of a faith home.
  • Strategy 3: Include everyone in relevant mission.

I’d like to express my appreciation to our “all volunteer” finance team overseeing the prudent management of the resources that have been entrusted to HUMC by its generous members and friends. It is my pleasure to work with them and our generous congregation as your Chair of Stewardship and Finance.

Sincerely,
Zed Francis
Chair, Stewardship and Finance