By the Numbers

Rev__Exp_Board_-_Jun_2022-final.pdf

Finance Summary for Fiscal Year 2021-22

This past year has been a time of transition for the Fellowship. Even with all the COVID challenges, campus closure for most of the program year, the excitement of calling a new Lead Minister, and saying goodbye to Rev. Cayer, the congregation remains engaged and committed. A strong pledge drive brought in a slightly higher total than the previous year, and we welcomed new members despite having virtual programming for most of the year.  Financially, giving remains solid on a monthly and annual basis. In addition, ERUUF is in a very strong position with multiple designated funds for specific and strategic purposes. At the same time, giving and pledging has not yet returned to pre-COVID levels.

Highlights for FY 2021-22:

• Rental income remains low with the campus closed for most of the year. Family Preschool, Board of Elections, and Girls Rock were the big contracts for the year.
• Most budget lines are at or below budget. Exceptions:
  1. Facilities supplies are higher due to additional equipment for safety and reopening.
  2. RE is higher to support Coming of Age and OWL training.
  3. IT is higher as new computers needed for new staff and to replace aging equipment.

• Reminder: The loan to help extend the Strategic Initiatives Fund is listed as a liability on the Balance Sheet with only the interest expense posting to the Revenue/Expense report.
• Giving patterns seem to be stable despite ongoing uncertainties with COVID, politics, and economy.
• While the overall financial picture is solid, it is important to note that COVID did impact the total pledge amount for this fiscal year.
• Generosity Sunday: $15,283 (total for the year)

June 2022 - Threshold $1,723

April 2022 - Durham Community Land Trustees $ 2,657

February 2022 - Durham's Black Mama's Bail Out $ 3,956

December 2021 - HEARTS $ 2,627

October 2021 - Emancipate NC $ 2,150

August 2021 - Communities in Partnership $ 2,470

Key Balances (as of June 2022)

Inside the Numbers

To close out the financial year we will need to transfer $85,791 from the Strategic Initiative Fund to balance the budget (versus $180,000 planned transfer). This tracks with projections from the past six months of the fiscal year. The variance is due to several factors:

              Staff transitions (RE Assistant; DRE), and program/staff transition (Music)

              Program teams not fully spending funds (mainly due to campus closure)

              Pledge income totals higher than expected

The Employee Retention Credit (total amount $69, 346) has now been reclassified as “other income” for FY 2021-22 on the revenue/expense report. Note that this skews the standard income picture but in June, the Board approved bonus amounts for Rev. Cayer and Rev. Brett posted as expenses, so it basically balances out in the June report.

BFAC recommendations

ERUUF has a number of large balances in various funds and the BFAC recommended that cash accounts be monitored to avoid exceeding FDIC limits.  In July 2021 an account was opened at Self-Help FEDERAL Credit Union for $250,000 to secure FDIC for ERUUF cash reserves ($240,000 was placed in a 2-year CD, $10,000 was placed in a money market account). For the Campus Needs Fund, over $200,000 is held in CDs with the Self-Help Credit Union that were due to renew in April 2021. Since CD rates were very low, these CDs not renewed. In addition, there was about $184,000 from a bequest being held in an Ameritrade money market that was earning minimally. Then, ERUUF also received a new bequest for $32,149 that posted as income in May 2022. With cash reserves continuing to exceed FDIC limits at Truist, ERUUF’s primary bank, the BFAC suggested opening a new account with an online institution. This proved challenging on several fronts for a non-profit organization. Given that interest rates for accounts and CDs are extremely low, a new plan was proposed to gather the excess cash and purchase Treasury bills with a one-year maturity. It took some time to move funds from all the different financial institutions. The transaction finally posted in July 2022 ($475,000) so the account balances for cash and cash equivalents on the June 2022 Balance Sheet do not yet reflect this major change. The one-year Treasury bill (2.75%) will yield almost $13,000 in interest earned. The bottom line: The Treasury bills are secured and will generate significantly more interest than any of the options available at this time that meet ERUUF policy guidelines. Note: ERUUF has sufficient cash to meet monthly needs and contingencies that may arise during the next 12 months. Many thanks to Mark Kuhn for helping with the mechanics and strategy of this project.

Facilities

Current projects:

       New roof structure over the Fellowship Hall deck and Care bldg. deck (Foundation grant)

       Video monitoring system for campus security

       New microphone system for Sanctuary sound (Foundation grant)

       New IT system to replace server (complicated, multi-stage process)

Ministry & Staff Transition

Rev. Brett is on vacation/study leave through the end of July. The Ministry Transition Communication Team is working in the background to share info with the congregation as needed.

Rev. Patty Hanneman, transition minister, is coordinating worship and guiding RE activities during the transition.

Rev. Daniel Trollinger is managing day to day operations and the administration staff.

The new Coordinating Team has begun meeting and will continue to do so through the summer.

Rev. Jim Lewis, Minister of Lifespan and Faith Development, begins on July 15.

Wendy Looker, Music Director, begins on August 1.

In addition, onboarding is in process for new staff members and current staff with new portfolios during this time of significant change. Present staff have begun to move into new roles:

Daniel Trollinger, as Executive Minister

Shawn Trimble, as Office Administrative.

Alice Alexander, as Director of Membership

This involves both shifting physical offices and establishing new communication and workflow systems.

Communications Coordinator:

Jenny Jolly will be leaving her position at the end of July as she is moving to Boone. Her last Sunday is July 24. Jenny has been a valuable staff member for over four years and will be missed. She has been helpful in facilitating a solid handoff of workload and file transfer.

Two new staff members have recently been hired:

Office Assistant (part time).

John Felheim joined the admin team on July 6 and is in training for tech support and office processes.

Tech Assistant (part time, mostly just Sunday mornings).

King Sage joins the team on July 17 to begin training for the Tech Team.

Common Read

 The purpose of this congregational read is to enable us to support Rev. Brett’s transition to leadership as we work together to make ERUUF a more broadly welcoming community. The book Centering gathers reflections from ministers of color and provides insight on the unique challenges they face in congregational life. There will be five small group sessions focusing on specific assigned chapters to be read over a period of ten weeks this summer (June-August). The facilitator training was completed June 15. Eric Hodges and Steve Hall are facilitating the program which began June 22.

COVID policy and practice

The community level of Covid-19 in Durham County remains high based on cases and hospitalizations, according to the most recent update from the C.D.C. ERUUF initiated a policy shift in May to require masks for all indoor events and gatherings. Masks are encouraged but optional for outdoor events. The health and safety of our community remains a priority as we navigate the ever-changing COVID and cultural conditions.