Fiscal Year 2020 Report from Parish Finance Council

Financial statements can be difficult to understand, especially for those without a financial background. While we have posted a detailed annual financial statement on our parish website (olmnj.org), we thought it might be helpful to let you know the financial situation of OLM in a more readable form. This report covers the fiscal year that began July 1, 2019, and ended June 30, 2020. This report was delayed because of the pandemic.

Let’s begin with a look at our income, how much money our parish received thanks to your generosity and from other sources of revenue. In the fiscal year that ended June 30, 2020, our parish operating income came to $946,816. Our largest source of revenue was our Sunday, Easter, and Christmas collections which amounted to $459,714. The second major revenue source was the income generated by the rental of our school building, it amounted to $337,190. The third largest source of income came from restricted donations, gifts, and bequests, this amounted to $89,565. This number includes $19,745 given through the GO FUND ME campaign. Additional income came from various sources that are noted in the detailed financial report on our website.

In comparison to the fiscal year that ended June 30, 2019, our income in the fiscal year that ended June 30, 2020 decreased $111,851. This was largely due to a drop in our Sunday and Easter collections and in restricted donations due to the pandemic. During this period, our parish obtained a Payroll Protection Program loan of $53,953 from the Federal Government. This amount was recorded as a liability on OLM’s books. As of this date, this loan remains outstanding, and we hope all or part of it will be forgiven.

In the fiscal year that began July 1, 2019 and ended June 30, 2020, our parish operating expenses came to $774,409. Not surprisingly the highest expense ($427,893) was associated with salaries, benefits, pensions, payroll taxes, and insurance premiums. The next highest expense ($116,611) was related to our buildings, utilities, and equipment costs. The third expense item ($71,826) had to do with liturgical, office, and priest residential expenses. The other operating expense areas are noted in the detailed financial report.

In comparison to the fiscal year that ended June 30, 2019, our expenses were lower by $85,398 in the fiscal year that ended June 30, 2020. This was because expenses associated with our buildings and professional services decreased during the pandemic since there was less parish activity.

If we compare operating income to operating expenses for the fiscal year that ended June 30, 2020, we see that our income was $172,407 higher than our operating costs. However, that was a decrease of $26,453 from the previous fiscal year.

Non-operating revenues from the We Are Living Stones (WALS) capital campaign decreased by $17,194 from $23,738 in 2019 to $6,544 in 2020. This is due to almost complete pledge redemptions from the capital campaign.

We also need to realize that in the fiscal year that ended June 30, 2020, our non-operating expenses included $180,413 for capital improvements. The largest improvement cost was $119,213 to replace the old windows on the third floor of our school building, in order to reduce the cost to heat and cool the floor. We use that third floor for our faith formation /religious education classes. Some of the funds for these capital projects were generated from the We Are Living Stones Capital Campaign, and from restricted donations from anonymous and generous donors.

If we consider our total income (both operating and non-operating) and our total expenses (both operating and non-operating), we see that the fiscal year that ended June 30, 2020 left us with a deficit of $1,462. In the fiscal year that ended June 30, 2019, OLM showed a surplus of $123,227.

We also need to consider that our parish currently owes the Archdiocese $506,204 for the cost of past and current medical benefits for our employees, including those previously employed by our now closed parish school. The Archdiocese has covered the cost of these medical benefits since the parish was unable to do so. The income generated by the rental of our school building is now sent directly to the Archdiocese to cover past obligations and to cover the expenses associated with pension contributions, parish assessments, insurance premiums, etc.

As you can imagine, without the income received from the rental of our school building, our parish would be in a very serious financial situation. Collections for the current period are improving, but we still need to make up for the loss of revenue we suffered and continue to suffer during the pandemic. As we embark on much needed church repairs and maintenance, we continue to rely on your continuing support of your parish. If you have any questions regarding this report, please send them to us by email at olmjcnj@aol.com.

Sincerely,
Father Marty
and The Members of the Parish Finance Council