Annual Report
Financial and Stewardship Update
Annually, generally in the fall, I provide a review of the parish’s financial position. Summary financial statements are included in the bulletin. Thank you to Laura Brown, Director of Administrative Services, Ron Braier, who retired as our Director of Finance in early 2021, and Emily Axt, CPA, our new Director of Finance, for their vigilant stewardship of your gifts. In addition, I appreciate the work of the parish Finance Council who collaborates with myself and our staff in advising on parish financial matters.
Budget for July 1, 2021-June 30, 2022
Parishes complete an annual budget to clarify the resources available to the mission of the parish. Budgeting for the fiscal years 2020-2021 and 2021-2022 was challenging. Catholic parishes are being impacted differently by reactions to the coronavirus. Our parishioners experienced high job losses, furloughs, and frequently report uneasiness with personal income related to job changes as well as rising inflation.
We historically operate a balanced budget. That means even slight stewardship and tuition decline, along with any increased expense (such as cleaning), quickly creates a deficit situation. The parish passed a deficit budget for the fiscal year 2021-2022. Because we have managed our resources well, we have some flexibility. We believe it is important not to react too quickly, but to allow time to see what trends emerge.
Besides cleaning, our major expense lines are generally at or below the levels experienced pre-pandemic. Last year, we did not extend a salary increase to our staff. This year, we provided a salary increase. We are maintaining our staffing levels, but have temporarily delayed replacing a full-time office position to save some money.
Our new partnership between Christ King and Saint Bernard, and All Saints and Saint Martin Parishes is in a soft launch phase and developing very well. Our commitment to this friendship will include financial contributions from our parishioners through our annual budget.
There are three sources of resources available to maintain our ministry level this budget year. First, we are using some of our financial reserves, designed for a “rainy day.” March 2020 was the start of a rainy day situation, and we are indebted to prior-year planning.
Second, we participated in the Small Business Administration’s Paycheck Protection Program (PPP), which provided a loan now converted into a grant. And we received some State of Wisconsin EANS assistance (Emergency Assistance for Non-Public Schools) to recover some of our coronavirus-related expenses. While helpful, this was a one-time occurrence.
Thirdly, and most importantly, I am counting on parishioners stepping forward as good stewards. Christians believe everything is a gift from God. We are abundantly blessed. As an act of love, we consistently return a portion of those gifts to God. His Church is the primary source of our return. It is necessary that we support parish stewardship more intentionally. Our stewardship levels have flat lined in recent years. A successful capital campaign and the challenges of the coronavirus have likely been at work. We will increase our focus on stewardship in the coming months. Success in growing our stewardship will determine our ability to continue investing in our people, school, and Catholic mission. I trust you will make that happen, and I thank you in advance.
Completion of Fiscal Year July 1, 2020-June 30, 2021
We reported positive net income for the fiscal year ended June 30, 2021. That result might appear in conflict with the difficulties presented above. Recognizing funds from the PPP brought us from a deficit to the reported surplus. We have viewed these PPP funds like a reserve – one that allowed us the flexibility to manage through a difficult year without negative impacts to our staff or services and as a resource to absorb a budgeted deficit for the current fiscal year. Nevertheless, the underlying picture remains challenging.
Other items of note:
- A gift was awarded to staff in appreciation of their dedication and excellent work during a difficult year and recognizing that there was no salary increase the previous year.
- The parish mortgage continues to be reduced through the annual budget, with a June 30, 2021 balance of $761,205.
- The three parish endowment funds performed in accord with market conditions. The Frank High School Scholarship Fund provided scholarships to Christ King alumni attending Catholic High Schools. The School Endowment Fund gave tuition relief to Christ King students. The Capital Improvement Endowment Fund continues to grow as an investment.
- The Human Concerns Committee distributed funds to numerous charitable organizations.
- We’re realizing growing benefits from sharing many staff positions with Saint Bernard Parish, and two staff members with Saint Pius X. In addition to clergy, adult ministry, liturgical music, child ministry (with St. Pius X), and youth ministry (with St. Pius X), Saint Bernard and Christ King recently combined to share one maintenance team, led by Mark Martinez. All shared staff arrangements have exceeded our expectations and provide confidence in doing this more often.
- School enrollment reflects the national trend of a sharp enrollment decline. We are realizing the concrete consequences of fewer active Catholic families and the fact that families, in general, have fewer children. Our school is excellent – we have a dedicated and talented principal and staff. Parishioners should be proud and need to be ambassadors for our school. We all need to be personal advocates for the benefits of Catholic education, which is so greatly needed in today’s world.
- The “Living the Call, Sharing God’s Gifts” capital appeal continues to exceed expectations. We have collected over 87% of the pledges. We are completing projects as funds are available, with nearly all arriving near or under budget. This appeal is providing stability for our parish.
As stewards of our parish resources, the finance leadership will work to be appropriately conservative and realistic about existing trends and in planning for the future, which will include developing options to continue our great work under different stewardship levels.
See you at Mass,
Fr. Phillip
