FISCAL YEAR 2021 REPORT

FROM THE PARISH FINANCE COUNCIL

Sometimes financial statements can make those without a background in accounting feel like they are drowning in an ocean of numbers. Since that is the case, we thought it might be helpful to rescue you from waves of numbers by providing you with a narrative that explains the financial situation of our parish for the period that began July 1, 2020 and ended June 30, 2021. (You may remember that our financial report from the previous fiscal year that ended June 30, 2020 appeared in our bulletin of August 22, 2021.)

We have also included a simplified financial report with this narrative. A more detailed annual financial statement is posted on our parish website (olmnj.org)

Let’s begin by looking at how much money our parish received thanks to your generosity and from other sources of revenue.

In the fiscal year that ended June 30, 2021, our parish operating income came to $936,220. Our largest source of revenue was our Sunday, Easter, and Christmas collections which amounted to $414,235. Our second major revenue source was the income generated by the rental of our school building to Starting Points (a privately operated early childhood program), it amounted to $337,190. Our third largest source of income came from restricted donations, gifts, and bequests, this amounted to $76,652. This number includes $19,747 given through the GO FUND ME campaign. That campaign ended September 30, 2021.

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, 2020, our income in the fiscal year that ended June 30, 2021 decreased $10,596. This was largely due to a drop in our Sunday and Easter collections and in restricted donations due to the pandemic.

In the fiscal year that began July 1, 2020 and ended June 30, 2021, our parish operating expenses came to $762,834. Not surprisingly the highest expense ($400,629) was associated with salaries, benefits, pensions, payroll taxes, and insurance premiums. The next highest expense ($149,817) was related to our buildings, utilities, and equipment costs. The third expense item ($58,564) 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 previous fiscal year that ended June 30, 2020, our expenses were lower by $11,575 in the fiscal year that ended June 30, 2021. This was primarily due to the offsetting effects of: (1) the reduction in the number of priests from three to two in mid-fiscal year 2021 ($27,266), (2) the reduction in operating supplies and rectory expenses ($13,262). (3) our expenses would have been even lower if we did not have to replace a boiler ($33,206).

If we compare operating income to operating expenses for the fiscal year that ended June 30, 2021, we see that our income was $173,386 higher than our operating costs. That was an increase of $979 from the previous fiscal year.

Non-operating revenues from the We Are Living Stones (WALS) capital campaign decreased by $2,134 from $6,544 in 2020 to $4,410 in 2021. This was because most pledges have been fulfilled.

We also need to realize that in the fiscal year that ended June 30, 2021, our non-operating expenses included $53,275 for the renovation of our church sanctuary.

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, 2021 left us with a surplus of $124,521. In the fiscal year that ended June 30, 2020, OLM showed a deficit of $1,462.

We also need to be aware that our parish currently owes the Archdiocese $337,134 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 medical benefits, and to cover current 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 continue with much needed church repairs and maintenance, we rely on your ongoing 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 & The Members
of the OLM Parish Finance Council