Congregational Gathering: Finance Report
Editors Note: ZPC hosted a Congregational Gathering on the evening of February 11, 2018. This post is a synopsis of the Finance Team Report from the evening given by Finance Team Chair Jay Maddox. Click here to listen to the audio from the evening.
ZPC is blessed with a very capable dedicated member-led Finance Team. Tony Smith is our new treasurer. Thanks to former Treasurer Marjie Breisch. The financial leaders have given ZPC a firm foundation of financial leadership and expertise.
Overall, ZPC is in very good financial shape. On the income side, ZPC’s giving budget for the year is $2.3 million. To date, we’re on target to meet and exceed that number by approximately 8%, which is very generous. This is indicative of the giving spirit and generosity culture of ZPC.
Regarding the expense side, we are happy to report that the spending is also in a good position. Here is an update on budgets for key expense groups.
- Missions [22%]: Support of missionaries and missionary organizations
- Building and Maintenance [19%]: Support and maintenance of our building including expenses such as repairs, utilities, maintenance, and cleaning
- Ministries [17%]: Ministries such as children, student, and adult ministries
- Worship [16%]: Sunday morning worship experiences
- Administrative [15%]: Staff salaries and office costs
- Capital Projects [11%]: We have a lengthier update for capital projects. We have been spending about 75K for minimal repairs and emergencies for several year. We could have easily been spending $250,000 per year. This year there was a specific $250,000 budget set aside for capital improvements. ZPC spent approximately $220,000 in the previous fiscal year on some large projects including major HVAC work, a new video projection system, and some exterior projects. This year’s blessing of generous giving is allowing ZPC to execute these improvements and will allow us to set a budget to continue upgrading, protecting and keeping our building current and safe.
Noah’s Ark is an important component of ZPC. It has its own budget and Board of Directors. It is doing well financially.
Greenwalt CPA does an annual review of ZPC financials. For the last fiscal year (June 2016-May 2017), they did a thorough audit and their report was very positive. They recommend we maintain cash reserves equal to 2 months of expenses. Regarding debt, ZPC has two mortgages, one from the building expansion 20 years ago and one from the purchase of the mission house.
There has been talk about the impact of the 2017 Tax Reform Plan especially the implications to church and charitable giving. Overall the tax law changes were favorable to charitable giving. Details about this are available upon request.
We are happy to report that ZPC is in a very stable financial condition. We are blessed with a conscientious staff, excellent accounting professionals, and a dedicated group of members that are actively involved in making sure ZPC is a prudent and responsible steward of the generous gifts the congregation has given for God’s work.