PARISH ADMINISTRATION & FINANCE ENEWS

June 15, 2017

Fun With Parochial Reports 

by Canon for Mission Finance & Administration Louis Fuertes

As of this writing, we have received 154 Parochial Reports, providing insight about parish life and financials in 2016. Your efforts in collecting the needed information and filling out the form are greatly appreciated. It occurs to us that you might want to see how your parish compares to others that have reported. Grab a copy of your parish's 2016 Parochial Report and follow along.

As a starter, find line 6 on page 2, which is the Average Sunday Attendance (or "ASA" in Episcospeak). Here is the distribution of 154 ECCT parishes based on their 2016 Parochial Report submissions:



There's more! One thing that might interest you is how your congregation compares to others in terms of stewardship. In 2016, ECCT parishes received a little less than 1 pledge for every "Average Sunday Attendee" (0.85 pledges/ASA was the actual average). Divide line 1 from page 3 (number of pledge cards received) by Average Sunday Attendance (again, line 6 from page 2) to see how your parish compared.

The actual results for ECCT parishes vary considerably, as shown in the exhibit below. Using the ratio you calculated above (Line 1 from page 3 divided by line 6 from page 2), you can see where your parish compared to others based on 2016 submission.



Want to learn about average pledge amounts (line 2 of page 3 divided by line 1 of page3)? The ECCT average for 2015 was just over $2,100, but ECCT parishes are located in towns whose residents have very different financial circumstances. As a result, it makes sense for you to compare the average pledge amount for your parish with the averages for parishes serving communities with similar financial circumstances. 

The table below uses Median Household Income (as estimated by City-data.com) to reflect differences in financial circumstances for the communities served by our parishes. [You can get on the same page with the information in the table below by Googling "[your town name] CT city data" - the estimated Median HH Income for your town is presented about seven lines down, below population, gender distribution, median age and zip code data]. How does the average pledge amount for your parish compare to those of parishes serving communities with similar household incomes?



All good things must come to an end, and it is possible to have too much fun with Parochial Report data, but since you've gone to the trouble to find out the Median Household Income for the town your parish serves, here's one last fun comparison you can make. 

Divide the Pledge, Plate and Regular Support amount in line 3 of page 3 by our old friend Average Sunday Attendance (line 6 from page 2) to get a ratio we can call Contributions/ASA. As we have seen, parishes differ in terms of pledge participation, but Pledge, Plate and Regular support is meant to capture all contributions to support parish operations (pledged and un-pledged), so this is an important measure. Contributions/ASA  varies depending to some degree on the financial circumstances of the towns served by ECCT parishes, as shown below.



Given the considerable scatter in pledge participation, average pledge amounts and contributions/ASA (even after correcting the last two measures for community income differences), it sure would be good to know why outcomes among parishes serving communities with similar financial circumstances vary so greatly...

...but that is a tale for a different day!
For Parish Budgeting Early Birds 

by Canon for Mission Finance & Administration Louis Fuertes

Recommended changes to minimum salary levels for clergy and suggested cost of living adjustments for lay employees will not be finalized until August, but consumer price indices for the New York and Boston Metro Areas have been climbing steadily since early in 2016. 

You might recall that our 2016 Annual Convention approved a 0.7% increase in clergy salary scales for clergy. For those of you who have started budget planning for 2018, an extrapolation of recent trends suggests that the recommended increase for 2018 will be in the 2.0 - 2.25% range (see exhibit below). 

The recommendation will be finalized in mid-August after the Bureau of Labor statistics releases July results. Guidance on insurance increases (property/casualty. medical and dental) will also be communicated to parishes in the Treasurers Newsletter in September.

Audit/Financial Review Reminder 

ECCT's Finance office would like to remind you that, if you have not already done so, 
NOW is the time to engage an accounting firm to perform your 2016 Audit or Financial Review. 

It is a Canonical requirement (Canon IV 2D - Business Methods in Church Affairs) that your parish's annual audit or financial review be submitted to our office by September 1, 2017.
Parishes with total revenues (as reported on Line D of your Parochial Report) exceeding $500K are required to have an audit performed by a certified public accountant, while parishes with total revenues below $500K are required to have a financial review, which could be performed by a CPA or an independent public accountant.  

Please recall that beginning this year, the timely submission of an audit or financial review is an essential requirement for parishes to be recognized as being in good standing at ECCT's Annual Convention in November.

Lists of accounting firms that other parishes have used for audits or financial reviews are available by emailing Karolyn Nicolaides. Please specify whether your parish is seeking assistance with an audit or a financial review, as independent public accountants can perform financial reviews but not audits (CPAs can perform both audits and financial reviews).

You may review Parish Financial Reporting Requirements here
Parish admins invited to join a listserve

Want to chat with colleagues about ACS vs PowerChurch? Offer tips on more successful mail merges? Get suggestions on names for a new campaign? Alison Hollo, Senior Administrator for the Office of the Episcopate, invites parish administrators to forward her their names and email addresses to be added to an ECCT listserve for parish admins. 

As a member of Bishops' Executive Secretaries Together (B+E+S+T), Alison has participated in their listserve and wants to make the same opportunity available for parish admins in ECCT. 
Reminders of upcoming deadlines  
  • September 1, 2017: Audits of 2016 parish business records due
Links
 
2017 Treasurers' Newsletter can be found here
2016 Treasurers' Newsletter can be found here

Manual of Business Methods in Church Affairs linked on this page (English and Spanish)
The next issue of the Parish Admin & Finance eNewsletter will be published mid-August. 

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