Tumc quarterly financial report summer 2013

Trinity United Methodist Church Quarterly Financial Update Summer Quarter 2013 Welcome to Our First Edition

2013 General Budget

At its last meeting, the Committee on Finance decided to publish a quarterly financial update on the second Sunday of each quarter highlighting the year to date. This is the first of our quarterly publications.

In it you will find the following items to help you understand where the funds you give to the church are used.

(in broad categories)

 2013 Church General Budget  Income and Expense Report to end of last quarter.  Listing of Designated Funds with Balances.

Should you have any questions about this report, please direct them to Ken Spurlock, Chair of the Committee on Finance. In order to properly answer your question, it would be helpful to put it in written form and give him time to research the answer. It is not always easy to give an on the spot answer to a question since our finances cover a broad category of ministries.

Personnel Expenses Related to the Pastor ................................................ $71,881.96 Related to Music Program ......................................... $15,200.00 Related to Other Personnel ....................................... $34,099.39

Conference and District Support Annual Conference Tithe ........................................... $15,000.00 District Apportionment ............................................... $6,368.00

Church Utility Expenses Electric, Heating, Water, Sewage, Garbage, and Phone Service at the Church ............................................................... $8,350.00

Office: Supplies and Operational Expenses Supplies & Copier Expenses ........................................ $2,850.00

Local Operational Expenses Repairs, Maintenance & Supplies: .............................. $6,080.00 Ministry Related Expenses: ......................................... $5,782.00 Administrative Related Expenses: ............................... $2,660.00

Insurance Costs Youth & Adult Ministries, Church & Parsonage, Bonds for Financial Secretaries, Workers Comp .......................... $7,055.00

Total 2013 Budget ................................ $175,326.35 If you desire a more detailed copy of the budget, please turn to page 5 for a breakdown of all categories by line item with expenses to end of the second quarter.

A budget is a road map of where our church is heading. The budget exemplifies the decisions that we make and defines the things that we think are important. A budget, just doesn’t happen. It comes about through careful planning and consideration.

Let’s start at the end and work backwards.

The last committee within the church that looks at a budget before it is approved is the Administrative Board. They are presented a proposed budget that has been designed by the Committee on Finance. In turn, the Committee on Finance receives request from other committees in the church to fund ministry for the upcoming year.

The Staff Pastor Parish Relations Committee (SPPRC) is responsible for requests related to personnel. The Board of Trustees ask for money in the budget in order to provide for upkeep and oversight of the church facilities and utilities. The Parsonage Committee asks for funds to keep the parsonage up and running smoothly. The Nurture, Outreach and Witness teams ask for money to fund the missions, ministries, and events of the local church. The pastor asks for funds to operate the office through the purchase of supplies and equipment upkeep and maintenance.

As these various committees make their requests known to the Committee on Finance, the Committee begins constructing a budget for the coming year. The final say, however, on the budget comes from the Administrative Board which may agree with or may make changes to the proposed budget from the Committee on Finance.

Once the budget is approved—with December being the month most budgets are approved—it then becomes the responsibility of the Committee on Finance to oversee the budget and raise the necessary funds to implement the desires of the Administrative Board as expressed through the budget that the Board adopts.

It sounds like a complicated process, and in some sense it is. Yet in another sense it is not.

Once a church gets the pattern down, it simply becomes a matter of deliberation and timing.

If you have any questions about the budgeting process, please feel free to talk with the pastor or the Kenny Spurlock, chairperson of the Committee on Finance.

Each year the Committee on Lay Leadership Development, nominates men and women to serve in the area of financial leadership of our congregation. The nominees are approved by a vote of the Charge Conference of the church.

Below is a listing of our current financial leaders.

The Committee on Finance Chairperson .............................. Ken Spurlock Admin Board Chair .................. Bill Cole Treasurer .................................. Fred Herndon Asst Treasurer .......................... Rob Moore Trustees Chairperson ............... Don Whittaker SPPRC, Chairperson ................ Phil Robbins Lay Leader ............................... Martha Spurlock Lay Member-Ann Conf............ Pat Bowden Stewardship Chair .................... Nancy Mercer Stewardship Chair .................... Ann Nickels Pastor ....................................... Terry Goodman Panel of 2013: Ben Allen, Jim Cooper, Mike Allen Panel of 2014: Spencer Quesenberry, Kim Parsons, Christy Smith Panel of 2015: Jim Abe Fleenor, Vickie Ratliff, Donna Mahan

Permanent Endowment Fund Committee Chairperson .............................. Ben Allen Panel of 2013: Barbara Polly, John Hagan Panel of 2014: Jorge Hersel, Dennis Ashely, Cathy McClanahan Panel of 2015: Jean Hendrick, Barbara Hargrove

Our Financial Leadership Team Memorial Committee Chairperson.............................. Beth Hagan Panel of 2013: Beth Hagan, Christy Smith

Panel of 2014: Patty Robbins, Donna Rogers Panel of 2015: Betty Cline, Patty Lynn Cooper

If you know of other persons that might be a possible leader on one of these teams, please get in touch with Pastor Goodman. He is the Chairperson of the Lay Leadership Development Team that makes the nominations for all the committees and teams in the church. His committee will begin making their nominations in the next couple of months.

Income Sources : January 1– June 30, 2013

Things to Note: 

Designated income and Designated Fund Balances found on page 8 will not necessarily reflect the same amounts. Once the income is received, it is then subject to being spent for the intended purpose. Thus, a lower amount might be shown in the Fund Balance than what is indicated by income. Likewise, an account fully expended would not show a fund balance, since the income has already been directed towards its designated ministry/mission.



Not all church expenditures are listed in the General Budget. Designated items are paid outside the budget from Designated Funds.



The General Budget reflects that budget approved by the Administrative Board for the year 2013. General Budget Income goes to pay for the expenses related to the General Budget.

General Budget Income ....................... $78,841.94 Categories of Designated Income— Angel Tree............................................................. $75.00 Back Pack Ministry ........................................... $2,130.61 Book Reimbursement ......................................... $128.50 Building Use ........................................................ $475.00 Equipment Fund ................................................. $129.41 Farmer’s Market ................................................. $140.00 Flower Fund ........................................................ $840.00 Food Bank ........................................................... $515.00 Holston Home..................................................... $827.00 Imagine No Malaria ............................................ $638.02 In/Out Monies ...................................................... $50.00 Kelly Sunday School ............................................ $202.00 Kelly Toney Fund .................................................. $10.00 Media Fund......................................................... $555.00 Memorial Fund ................................................... $590.00 Methodist Men ................................................ $1,236.50 Missions: Annual Conference ............................... $25.00 Pancake Breakfast .............................................. $802.50 Parsonage Repair ............................................. $1,528.13 Pastor Grant Fund—2013 ................................ $4,166.65 Refunds from Vendors........................................ $766.58 Senior Youth Fund ........................................... $1,095.05 Tech Fund ........................................................... $150.00 T-Shirt Sales .......................................................... $32.70 Van Fund............................................................. $610.00

Designated Income.............................. $18,623.98

Total Income for Period ......... $97,465.92

Trinity UMC 2013 Budget (Expenses as of June 30, 2013) ............................................... Budgeted.............. Spent

Related to the Pastor Ann Conf. Expenses ...................... $550.00........ $483.29 Continuing Education ................... $750.00........ $328.84 Vouchered Reimbursement........ $3000.00...... $1302.26 Salary ....................................... $47,811.00... $23,905.56 Church Portion Health Ins.......... $7,992.00..... $4,055.00 Church Portion Pension ........... $11,778.96..... $5,889.48 SUBTOTAL .............................. $71,881.96... $35,965.43

Music Program Expenses Choir Director-Salary ................. $9,600.00..... $4,800.00 Organist-Salary .......................... $2,800.00..... $1,240.00 Pianist-Salary ............................. $2,800.00........ $625.00 SUBTOTAL .............................. $15,200.00...... $6665.00

Other Salaries and Expenses Housekeeper ............................. $6,000.00..... $2,038.43 Secretary.................................. $15,808.00..... $7,740.00 Youth Director ........................... $7,488.00..... $3,744.00 Nursery Worker ......................... $1,300.00............ $0.00 Employer Taxes.......................... $3,503.39........ $741.97 SUBTOTAL .............................. $34,099.39... $14,264.40

Conference and District Expenses Annual Conference Tithe ......... $15,000.00..... $6,712.65 District Fair Share ...................... $6,368.00..... $3,184.02 SUBTOTAL .............................. $21,368.00..... $9,896.67

Utility Expenses Church Electric ........................... $5,800.00..... $3,258.00 Church Heating ............................. $350.00............ $0.00 Church Water/Sewer .................... $800.00........ $318.61 Church Phone/Internet.............. $1,400.00........ $863.72 SUBTOTAL ................................ $8,350.00..... $4,440.33

Office Supplies Copy Machine Maint./Copies .. $1,1100.00 ........ $614.61 Ink Cartridges .................................... $0.00 .......... $44.91 Office Supplies/Equipment ........ $1,200.00 ........ $781.94 Postage ......................................... $550.00 .......... $84.77 SUBTOTAL ................................ $2,850.00..... $1,526.23

Local Church Operations Repairs, Maintenance, Supplies Equipment Tuning......................... $800.00 ........ $200.00 Church Repairs/Improvement .......... $0.00 ..... $1,049.95 Church Supplies ......................... $1,000.00 ........ $174.89 Church Pest Control ...................... $480.00 ........ $525.87 Kitchen Supplies ......................... $1,300.00 ........ $330.00 Parsonage .................................. $1,500.00 ........ $445.00 Church Vans ............................... $1,000.00 ..... $3,671.56 SUBTOTAL ................................ $6,080.00..... $6,397.27

Ministry Related Expenses Training Subscriptions ................... $832.00 ........ $635.69 Literature & Supplies ................. $1,200.00 ........ $673.58 Vacation Bible School ................... $450.00 .......... $25.13 Sunday School ............................ $3,000.00 ..... $2,218.89 Worship ........................................ $300.00 .......... $65.98 SUBTOTAL ................................ $5,782.00..... $3,619.27

Administrative Related Expenses Finance Committee ....................... $500.00 ........ $508.42 Discretionary Account ................... $500.00 ........ $126.19 Bank Fees ........................................ $60.00 .......... $40.00 Ann. Conf. Lay Delegate ................ $550.00 .......... 309.00 Stewardship Team ........................ $750.00 .......... $59.00 Supply Pastor Honorarium ............ $300.00 ............ $0.00 SUBTOTAL ................................ $2,660.00..... $1,042.61

Insurance Expenses Youth and Adult Ministries ........... $175.00 ........ $175.00 Church Major Coverage ............. $6,600.00 ..... $4,228.58 Bond (Financial) ............................ $280.00 ............ $0.00 Worker’s Compensation ................... $0.00 ...... ($101.00) SUBTOTAL ................................ $7,055.00..... $4,302.58 TOTAL 2013 BUDGET ............ $175,326.35... $88,119.79

Using Financial Planning to Assist the Church We all know the importance of giving to the ministry and mission of the church on a regular basis. We refer to these regular weekly or monthly gifts as tithes and offerings. There is another level of giving, however, that we need to consider. We should also consider how we will continue to support the ministry and the mission of the church through our wills and estate planning.

We don’t like to talk about death—especially our death. Yet, it is inevitable that one day we will pass into God’s heavenly realm at the time of our death. The question becomes, “Will we continue to support the church after our death?” It’s obvious that we won’t be signing anymore checks, but a properly executed will or estate plan prior to our death can provide funds for years to come.

Experts predict that about $10 trillion dollars is going to change hands as the 76 million Baby Boomers inherit their family’s wealth in the next couple of decades. The question becomes, what portion of that wealth will be given to the church and other charities. I can’t say what portion will come to Trinity UMC, but I know that unless prior planning is done on your part, then none of your assets will be given to the church.

The Good News is that the church has been thinking ahead. We already have a series of endowments that generate money that can be used for the causes for which they were created. You could add to an already existing endowment or you could create one in your name for the cause in the church that you feel most excited about. Our endowment funds are held for us by the Holston Conference Foundation. This agency is not related to the Holston Annual Conference other than it seeks to serve the needs of churches and individuals of the Holston United Methodist Churches. Bequests and Endowments deposited with the Foundation are administered under the terms set by the individual that donated the funds. Currently, the Foundation oversees $85 million in assets with $33 million of those assets being held for churches in the Holston Annual Conference So, what’s keeping your from making a decision that will outlast you? Pray now and see what God might be leading you to do in terms of creating and endowment or adding to one of the endowments that have already been created to benefit the church and its missions and ministries.

For more information and a free consultation, please call the Holston Conference Foundation at (866) 690-4080. Someone will be glad to talk with you about the dream you have for the Kingdom.

Trinity United Methodist Church Permanent Endowment Funds At the current time, the Holston Conference Foundation holds the following endowment funds on behalf of our church. #1352-Trinity UMC Big Stone Gap Endowment Fund ........................................... $36,224.01 #1356-Property Endowment- ..................................................................................... $4,963.43 #1413-Kelly Toney Youth Fund- .............................................................................. $7,716.97 #1413-Anna Baron Morris Fund.............................................................................. $30,595.33 #1901-Becky Sandt Music Fund.............................................................................. $15,099.00 Total All Endowed Funds ........................................................................................ $94,598.74 In House Spending Account ...................................................................................... $2,500.00 Total All Funds Held ............................................................................................... $97,098.74

Each of these funds was created for a specific purpose and the income from these funds is typically available for that specified purpose. In future editions of Dollars and Sense, we will highlight these funds and explain how they have been designed to provide income for ongoing ministries and/or expenses of the church. For more information on any of these funds, you can contact Ben Allen, Chairperson of our Permanent Endowment Team. He would be more than glad to speak with you about them.

In addition, if you desire to create a fund, then you could get some ideas from Ben and then flesh those ideas out with help from the Holston Conference Foundation or your own attorney.

There are numerous ways to create an endowment and not all of them come from your current assets. You might consider a life insurance policy with the church as the beneficiary. You might consider the donation of appreciated stocks. You might simply want to leave an amount in your will. The folks at the Holston Conference Foundation or a an attorney will be able to more fully explain options available to you, should you decide to make such a gift.

Designated Funds Report: Balances on Hand June 30, 2013 2013 Pastor Grant Fund ................................... 0.00 Angel Tree Fund ........................................... $75.00 PVPS Back Pack Fund ............................... $1,782.36 Becky Sandt Music Fund ........................ $2,5000.00 Bible Study Books Fund ................................ $11.67 Building Use Fund ....................................... $470.00 Choir Fund ............................................... $5,824.85 Christmas Float Fund .................................. $390.75 Clothes & Local Missions Fund ................... $501.37 Computer Fund ............................................ $29.37 Flower Fund ............................................. $1,335.39 Food Bank Fund ....................................... $2,129.46 Future Transport Fund .......................... ($1,426.75) General Operating Fund (Budget) ........ $15,366.66 Holston Home Fund...................................... $30.00 Library Fund................................................ $486.63 Media Project Fund .................................... $410.55 Memorial Fund ........................................ $1,302.54 Methodist Men Fund............................... $2,880.05 Miscellaneous Fund .................................... $646.53 Missions Fund .......................................... $1,001.91 Music Director Fund ................................ $2,711.93 Other Fund .............................................. $1,238.82 Outreach Fund............................................ $365.74 Philadelphia Class Fund .............................. $586.62 Restoration Jesus Fund............................... $699.00 Resurrection Fund ................................... $1.114.86 Revival Fund ............................................... $582.05 Samaritan’s Purse Fund ................................ $70.30 Sound System Fund ................................. $1,928.84 Youth Bell Fund ............................................ $77.06 Youth Fund .............................................. $2,758.39

Total All Funds ............................ $47,881.95

What is a Designated Fund?

The church is required by the IRS to accept and distribute funds for their intended purpose. That means that if we accept money that the donor has designated for a specific cause, we can only use that money for its intended purpose. For instance, if someone gives $2,000 to the church for purple carpet in a class room, then, if we accept the gift, we are obliged only to use that money for purple carpet in a class room. We can’t use red or blue. It has to be purple.

So, if you take a look at the funds to the left, you can see from their description the reason that we accepted these funds and the manner in which they must be spent. The Finance Committee has developed a more detailed description of each fund that is available upon request to help you better understand how these monies may be utilized. Please contact the office to receive a copy of this explanation sheet.

Perhaps the one item you should most note is the one labeled General Operating Fund. It is into this fund that your undesignated Sunday morning offering is deposited each week. It is out of this fund that the various bills of the church are paid and the ministries of the church are funded.