1st Quarter Financial Report

Click here to download a PDF version of our 1st quarter summary.

 

Summary

This report provides a summary of income and expenses related to the church’s operating budget for the period January 1, 2013 through March 31, 2013.

The approved 2013 operating budget includes projected annual giving of $1,316,482 and additional income of $83,520 from property leases. Beginning in 2013, all budget giving is divided according to the pie chart below.

giving breakdown

Local ministry costs represent all of the direct ministries of our Andover, Downtown, and Offerings communities. When you give in one of these communities, 50% remains in that community to cover the costs of its particular ministries and missions, including staff, program, property, and administrative expenses. 

Missions funds represent the amount of your contributions that we immediately earmark for missions. The church’s missions team uses these funds to support the outreach efforts of First UMC and to support our missions partners around Lexington and across the world.

Apportionments are the funds our church pays to the Kentucky Annual Conference and our Lexington District. These support the inter-connectional ministries of the United Methodist Church.

Church wide expenses represent the areas where all of the communities of First UMC are working together or receiving administrative support. These include stipends for each faith community, church-wide communications, office building and supplies, insurance, vehicles, and administrative staff.

1st Quarter Income

We are pleased to report that first quarter giving in all three of our communities was higher than projected. Total income was $337,000, a 15% increase over 2012 budget giving.

[All numbers here and below are rounded to the nearest $1,000.]

  Actual 1st quarter income Budgeted 1st quarter income
Downtown giving $213,000 $202,000
Andover giving $87,000 $83,000
Offerings giving $18,000 $13,000
Other income (parking, cell tower, rental property) $19,000 $23,000
Total $337,000 $321,000          

1st Quarter Expenses

Total expenses for the quarter were $357,000, a 5% increase over 2012. Total expenses were $2,000 more than budgeted expenses.

The table below details actual and expected 1st quarter expenses for each of the areas shown in the pie chart above.

Budget area Actual 1st quarter expenses Budgeted 1st quarter expenses
Downtown $137,000 $128,000
Andover $52,000 $52,000
Offerings $9,000 $9,000
Church-wide expenses $73,000 $79,000
Designated for missions $32,000 $30,000
Apportionments $54,000 $57,000
Total $357,000           $355,000          

 

1st Quarter Income vs Expenses 

Expenses exceeded income for the quarter by $20,000. We consistently run a deficit throughout the year and make up for it with strong giving at the close of the year. We have planned for a balanced budget and are $14,000 ahead of projection at the end of the first quarter. This is a great celebration!

Cash & Reserves

The church has a current cash reserve of $201,000 and approximately $858,000 invested through our Endowment Foundation.

Long-Term Debt

In 2012, we seriously reduced our long-term debt by selling a large piece of property at the corner of High & Broadway and by using existing cash to pay down debt. In the first quarter, Traditional Bank reduced the church’s loan to a lower rate of 4.25%.

            Loan details

  • Loan balance as of March 31, 2013: $769,000
  • Monthly principal & interest payments total $5,645.
    • The current monthly interest expense is $3,600, with $2,000 going toward principal.
    • Interest expenses are included in the operating budget. Principal payments come from funds in our cash reserve restricted for debt reduction.
  • Loan matures in May, 2016, with a balance of $692,000
  • The church’s Finance Committee and Vision Team are in ongoing discussions about how to reduce or eliminate this debt, so that we can free money for other priorities in ministry and mission.