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Monthly Financial Reports

07.23.18 | by Michael Weir

    September 2018

    As I reported last month, September giving was great with $173,582 in offerings! This support was a great catch-up. Your offerings and your time provided for a new musical offering for our Jr. High youth called Jubilate, Club 4/5 held their “Hello Goodbye Event” for incoming 4th Graders and outgoing 6th Graders, and Gusto kicked off its 10th season. The month ended with “Coffee and Conversation with Pr. Jim” where more than a dozen visitors came to find out more about KOG and our ministries. Your Faithful Ones for September went to support the ELCA Young Adults in Global Mission (YAGM).

    As of the end of September, we have received offerings of $1,372,000 and $18,000 of other income.  We have paid $219,000 in benevolence and $1,205,000 in operating expenses, resulting in a deficit of $34,000.  We are $11,000 ahead of our offering estimate and $46,000 lower than our expense estimate.  For comparison purposes, this time last year, we had received $1,324,000 in offering and $11,000 of other income.  We had paid $212,000 in benevolence and $1,188,000 in operating expenses, resulting in a deficit of $65,000.

    Thank you!

    August 2018

    First, a huge THANK YOU for your early September offerings!  The August 21 letter went out too late to impact August but the response in the first half of September has been fantastic.  We should significantly improve our financial position in September.  

    As for August, its offerings of $125,897 were unusually low and did not cover our spending, resulting in an increased deficit.

    If you were out of town in August, you missed a lot.  This month we hosted the ELCA Missionary to Jerusalem, blessed backpacks, held a Women's Project Day to make quilts and prepare layettes for Lutheran World Relief, resumed Sunday School with new adult opportunities, and held our 3rd annual Congregational Pool Party.  In addition, there were many small group activities and events. Our Faithful Ones offering supported Small Needs-Big Change. Small Needs-Big Change is for KOG members and those in the community who ask us for assistance with unexpected, minimal needs. This is usually a $10 to $20 need for someone who needs money for gas or for a family who stops because they are hungry and in need of a meal. 

    As of the end of August, we have received offerings of $1,199,000 and $14,000 of other income.  We have paid $192,000 in benevolence and $1,079,000 in operating expenses, resulting in a deficit of $58,000.  We are $45,000 behind our offering estimate and $42,000 lower than our expense estimate.  For comparison purposes, this time last year, we had received $1,239,000 in offering and $11,000 of other income.  We had paid $198,000 in benevolence and $1,069,000 in operating expenses, resulting in a deficit of $17,000. 

    Blessing to you as we move into autumn.

    July  2018

    July offerings of $149,450 were average for a 4-Sunday month but light for a 5-Sunday month.  My continued concern promoted a letter which was mailed August 21.  I won’t repeat all theinformation contained therein but will highlight a few items.  

    July brought a successful Backpack Challenge to provide school supplies and another well attended Adult Sunday School session, “The Forgotten Luther”, as well as Summer Moms Fellowship. Our junior highers were in Austin at the end of the month to take part in “A Week of Hope” where our students spent each full day assisting elderly dementia patients at an adult day care facility. Our Faithful Ones offering supported Lutheran Immigration & Refuge Service in July.

    At the end of July, we have received offerings of $1,073,000 and $14,000 of other income.  We have paid $172,000 in benevolence and $962,000 in operating expenses, resulting in a deficit of $47,000.  We are $28,000 behind our offering estimate but $31,000 lower than our expense estimate.  

    For comparison purposes, this time last year, we had received $1,051,000 in offering and $10,000 of other income.  We had paid $168,000 in benevolence and $965,000 in operating expenses, resulting in a deficit of $72,000.

    For our capital campaign, Building Tomorrow Together, in 2018 we have received contributions of $76,000 and paid $10,000 in interest. We have cash of $130,000 and outstanding pledges of almost $134,000 to cover the $200,000 notebalance as well as financing costs.

     Again, thank you for all you do for KOG and its Mission.

    June 2018

    June offerings were lower than expected at $105,000.  I am concerned with the low back-to-back offerings as we move into deep summer. We need to be in the $150Ks for the next several months to keep our cash balance at its current levels.  In spite of the lower-than-expected offerings, we continue to advance our Mission. In June, we held vacation bible school (“Rolling River Rampage”), summer choir started, Sunday School “How do Lutherans Interpret Scripture” was attended in large numbers, and our youth attended the ELCA Youth Gathering in Houston.  We also kicked off the Backpack Challenge to provide school supplies.  Our Faithful Ones offering supported the Backpack Challenge this month.   

     At the end of June, we have received offerings of $923,000 and $14,000 of other income.  We have paid $148,000 in benevolence and $834,000 in operating expenses, resulting in a deficit of $45,000.  We are $26,000 behind our offering estimate but $19,000 lower than our expense estimate. 

    For comparison purposes, this time last year, we had received $914,000 in offering and $9,000 of other income.  We had paid $146,000 in benevolence and $826,000 in operating expenses, resulting in a deficit of $49,000. Thank you for your increased generosity in such a short period of time!  Narrowing this gap is encouraging, yet still speaks to the challenges ahead.   

    For our capital campaign, Building Tomorrow Together, in 2018 we have received contributions of $61,000 and paid $9,000 in interest. We have cash of $116,000 and outstanding pledges of almost $150,000 to cover the $200,000 note balance as well as financing costs. (We are purposefully holding on to theremaining BTT cash as a hedge against a possible cash flow issue in September.) Please review your BTT pledge and giving from the recent statement mailed to you. We would like to pay off the loan within the next few months but need your support to make this happen.

    Repairs continue on the southern rent house, which was in much worse condition than anticipated. Rental income is earmarked to pay for the rent house repairs (capped at $35,000) as well as the $65,000 parking lot overage balance. This $100,000 balance will take 4 years of rental income to pay off.

    Thank you for your continued support of KOG and its Mission.

    May 2018

    May offerings were lower than expected at $140,000.  However, due to the large amount of prepaid pledges, we continue to maintain a good financial position.  At the end of May, we have received offerings of $818,000 and $13,000 of other income.  We have paid $131,000 in benevolence and $705,000 in operating expenses, resulting in a deficit of $5,000.  We are $4,000 behind our offering estimate but $16,000 lower than our expense estimate.  Some of the activity occurring in May: we concluded the spring semester for children’s Sunday School, we paid deposits for the National Youth Gathering (in Houston at the end of June; the theme is “This Changes Everything”), we kicked off the Backpack Challenge, and we prepared for the installation of the new Chiller.

    For comparison purposes, this time last year, we had received $780,000 in offering and $8,000 of other income.  We had paid $125,000 in benevolence and $709,000 in operating expenses, resulting in a deficit of $46,000. 

    For BTT in 2018, we have received contributions of $56,000 and paid $8,000 in interest. We made another principal payment of $100,000 in May, so we have cash of $111,000 and outstanding pledges of over $150,000 to cover the $200,000 note balance as well as financing costs. (We are purposefully holding on to the remaining BTT cash as a hedge against a possible cash flow issue in September.)

    We recently contracted with a tenant for the northern rent house and move-in is expected in mid-to-late June. A big THANK YOU goes to Jeff Broekhove for his continued generosity and work on all 3 rent houses.

    Thank you for your continued support of KOG and Building Tomorrow Together.

    April 2018

    After the first four months of 2018, we are off to a good start.  We started the year with the most prepaid offerings ever and regular offerings have been average. So while we are presently in a good position, we will need to be diligent in giving and careful about spending throughout the summer.  At the end of April, we have received offerings of $678,000 and $11,000 of other income.  We have paid $109,000 in benevolence and $567,000 in operating expenses, resulting in a surplus of $13,000.  We are $11,000 ahead of our offering estimate and $15,000 lower than our expense estimate. Overall, we are $29,000 ahead of what we had budgeted, so this is good news. As I wrote this time last year, during each of the next 5 months, expenses will exceed offerings and our deficit will increase to over $100,000 by the end of September.  This is normal and expected but your summer support will reduce this deficit and support multiple summer ministries. (Read Pastor Jim’s recent letter for the numerous activities and programs held by KOG during January through April. It’s incredible!)

    For comparison purposes, this time last year, we had received $607,000 in offering and $7,000 of other income. We had paid $97,000 in benevolence and $536,000 in operating expenses, resulting in a deficit of $19,000. 

    For BTT, we have received contributions of $54,000 during 2018.  We have paid $7,000 in interest.  We have cash of $210,000 and outstanding pledges of over $150,000 to cover the $300,000 note balance as well as financing costs. 

    A property management company has been retained to manage the two western rent houses.  Repairs are finished on the northern house and it is currently listed for rent. Repairs have started on the southern house.

    The chiller (A/C unit) has been ordered and installation is expected during the 1stor 2ndweek of June.

    Special contributions to reduce the deficit and fund the chiller have been received. Deficit funding is at $11,000 and chiller funding is at $55,000. Thank you for these special gifts!

    Thank you for your continued support of KOG and Building Tomorrow Together.

    November 2017

    Offerings fell in November with only $135,648 being received ($22,000 short of budget).  At the end of November, we have received offerings of $1,614,000 ($75,000 short of budget) and $15,000 of other income.  We have paid $258,000 in benevolence and $1,531,000 in operating expenses ($46,000 below budget), resulting in a deficit of $161,000.  The deficit increased during November while we were expecting a small decline.  Most of the deficit will be covered by December offerings but probably not all of it. 

    For comparison purposes: this time last year, we had received $1,681,000 in offerings and $9,000 in other income.  We had allocated $269,000 in benevolence and spent $1,554,000 in operating expenses, resulting in a deficit of $133,000.

    For BTT in November, we received $79,000 and paid almost $3,000 in interest.  We paid another $300,000 on the loan, so that at the end of November, we had cash of $134,000 and $528,000 in outstanding pledges to cover the $600,000 loan balance as well as financing costs.

    October 2017

    Offerings improved in October with $153,650 being received. However, this was still short of budget by $25,000.  At the end of October, we have received offerings of $1,478,000 ($53,000 behind budget) and $13,000 of other income ($5,000 behind budget).  We have paid $236,000 in benevolence ($8,000 below budget) and $1,394,000 in operating expenses ($47,000 below budget), resulting in a deficit of $139,000.  While this is a large number, it usually is covered by larger offerings in November and December. 

    For comparison purposes: this time last year, we had received $1,533,000 in offerings and $6,000 in other income.  We had allocated $245,000 in benevolence and spent $1,418,000 in operating expenses, resulting in a deficit of $124,000.

    For BTT in October, we received $121,000 and paid almost $3,000 in interest.  At the end of October, we had cash of $358,000 and more than $600,000 in outstanding pledges to cover the $900,000 loan balance as well as financing costs.

    September 2017

    Offerings were very low in September with only $85,482 being received. This was short from my estimate by $45,000 and offsets the great August that we had. (The sum of Aug and Sep is $274,000 which is $31,000 less than 2016 and $20,000 less than the 2012-2015 average.)  At the end of September, we have received offerings of $1,324,000 ($28,000 behind budget) and $11,000 of other income ($17,000 behind budget).  We have paid $212,000 in benevolence ($4,000 behind budget) and $1,188,000 in operating expenses ($83,000 below budget), resulting in a deficit of $65,000.  While this is $42,000 less than we had budgeted, it includes over $30,000 in insurance proceeds which will be paid out during the water damage repairs. 

    For comparison purposes: this time last year, we had received $1,391,000 in offerings and $7,000 in other income.  We had allocated $223,000 in benevolence and spent $1,267,000 in operating expenses, resulting in a deficit of $92,000.

    For BTT in September, we received $19,000 and paid almost $3,000 in interest.  At the end of September, we had cash of $240,000 and outstanding pledges of $778,000 to cover the $900,000 loan balance as well as financing costs.

    August 2017

    Offerings of $188,461 were received in August, which was very high and went far in covering the low July.  At the end of August, we have received offerings of $1,239,000 ($23,000 ahead of budget) and $11,000 of other income ($15,000 below budget).  We have paid $198,000 in benevolence ($4,000 over budget) and $1,069,000 in operating expenses ($61,000 below budget), resulting in a deficit of $17,000.  While this is $65,000 less than we had budgeted, it includes almost $30,000 in insurance proceeds which will be paid out during the water damage repairs. 

    For comparison purposes, this time last year, we had received $1,235,000 in offering and $6,000 of other income.  We had paid $198,000 in benevolence and $1,116,000 in operating expenses, resulting in a deficit of $73,000. 

    For BTT in August, we received $67,000 and paid almost $3,000 in interest. 

    July 2017

    Offerings were low in July with $136,339 being received.  This would be fine for a regular month, but July had 5 Sundays; offerings were expected to be higher. At the end of July, we have received offerings of $1,051,000 ($32,000 below budget) and $10,000 of other income ($10,000 below budget).  We have paid $168,000 in benevolence ($5,000 below budget) and $965,000 in operating expenses ($33,000 below budget), resulting in a deficit of $72,000.  While this is $4,000 more than we had budgeted, we continue to control expenses and are in line for zero net income. 

    For comparison purposes, this time last year, we had received $1,086,000 in offering and $5,000 of other income.  We had paid $174,000 in benevolence and $995,000 in operating expenses, resulting in a deficit of $78,000. 

    For BTT in July, we received $65,000 and paid almost $3,000 in interest. 

     FACILITIES
    A copper chill water line in the ceiling above the Choral Rehearsal Hall ruptured during the overnight hours of Sunday 7/23 into Monday 7/24. Water flowed onto the floors of the Rehearsal Hall and the adjacent corridor, down into the Parlor and the LL18 classroom on the Lower Level. Insurance is expected to cover all of this after the $5,000 deductible.

    The chiller which provides air conditioning in the main building and activity center is 17 years old and is having issues.  We are unsure whether the issues are caused by a failing unit or by poor electricity.  A surge protector and monitoring over the next 2 months should answer that.  However, we need to plan for a future replacement.  The cost will be approximately $180,000 and Council will be discussing how to fund this expense.

    Thank you for your continued support of KOG and Building Tomorrow Together.

    June 2017

    At the end of June, we have received offerings of $914,000 and $9,000 of other income.  We have paid $146,000 in benevolence and $826,000 in operating expenses, resulting in a deficit of $49,000.  This is $32,000 lower than we had budgeted, so this is good news.  We are $2,000 ahead of our offering estimate; we continue to control expenses and are in line with our budget. 

    For comparison purposes, this time last year, we received $928,000 in offering and $5,000 of other income.  We paid $148,000 in benevolence and $869,000 in operating expenses, resulting in a deficit of $84,000. 

    For BTT, we have received contributions of $269,000 during 2017.  We have paid $194,000 in final construction costs, furnishings and interest.  We made a $300,000 loan payment in June.  We have cash of $97,000 and outstanding pledges of $984,000 to cover the $900,000 note balance as well as financing costs. 

    Thank you for your continued support of KOG and Building Tomorrow Together.

    May 2017

    At the end of May, we have received offerings of $780,000 and $8,000 of other income.  We have paid $125,000 in benevolence and $709,000 in operating expenses, resulting in a deficit of $46,000.  This is $13,000 lower than we had budgeted, so this is good news.  We are $2,000 ahead of our offering estimate and we continue to control expenses; we enter the summer in line with our budget.  As I described last month, during each of the next 4 months, expenses will exceed offerings and our deficit will increase to over $100,000 by the end of September.  This is normal and expected but your summer support will reduce this deficit. 

    For comparison purposes, this time last year, we received $784,000 in offering and $5,000 of other income.  We paid $126,000 in benevolence and $741,000 in operating expenses, resulting in a deficit of $78,000. 

    For BTT, we have received contributions of $252,000 during 2017.  We have paid $190,000 in final construction costs, furnishings and interest.  We have cash of $385,000 and outstanding pledges of $1.0 million to cover the $1.2 million note balance as well as financing costs.  We will make a $300,000 loan payment in June.

    Thank you for your continued support of KOG and Building Tomorrow Together.

    April 2017

    Thank you for the April “catch-up!”  At the end of April, we have received offerings of $607,000 and $7,000 of other income.  We have paid $97,000 in benevolence and $536,000 in operating expenses, resulting in a deficit of $19,000.  This is only $2,000 higher than we had budgeted, so this is good news.  While we are $20,000 behind our offering estimate, we have controlled expenses and enter the summer in line with our budget.  During each of the next 5 months, expenses will exceed offerings and our deficit will increase to over $100,000 by the end of September.  This is normal and expected but your summer support will reduce this deficit. 

    For comparison purposes, this time last year, we had received $605,000 in offering and $3,000 of other income.  We had paid $97,000 in benevolence and $580,000 in operating expenses, resulting in a deficit of $69,000. 

    For BTT, we have received contributions of $212,000 during 2017.  We have paid $186,000 in final construction costs, furnishings and interest.  We have cash of $348,000 and outstanding pledges of $1.0 million to cover the $1.2 million note balance as well as financing costs. 

    Thank you for your continued support of KOG and Building Tomorrow Together.

    Michael Weir, 
    King of Glory Council Treasurer

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