UPDATED FINANCIAL REPORTS

2020 presented many hurdles for all of us to clear and your Finance Council was no exception.  The following is a list of financial-related actions taken during the year:
  • Effective January 1, 2020, our bookkeeping was outsourced to an outside accounting firm, Armanino LLP
  • The shift of the bookkeeping to Armanino LLP resulted in disbursements generated through a third-party service and not in the rectory office.
  • Payroll processing and payroll master file changes are submitted through Armanino LLP and require the Parochial Administrator’s approval for all transactions.
  • The previous three parish bank accounts have been consolidated and banking moved to Fremont Bank. 
  • The parish applied for and was awarded a Payroll Protection Program (PPP) loan of $73,200.  We anticipate forgiveness of this loan in 2021.
  • Cost reductions were implemented in response to the financial impact caused by COVID-19, including salary and hourly reductions for all staff, but no layoffs.
  • An internal controls review was performed by Armanino LLP’s audit group.  The recommendations outlined in the review report have been accepted and implemented; this financial reporting, to include future updates on a quarterly basis, was the final recommendation to be implemented.
  • Two new members have joined the Finance Council. Becky MacDougal and Larry Graves both are long term parishioners with extensive small business financial experience. 
Even in the face of COVID-19’s financial impact on the community, plate collections continued, although at a reduced level. The table below shows collections started strong in 2020 before the shutdown.  As the year progressed, collections leveled out.  Even though our contributions continued, we needed a significant increase over 2019 to cover our costs.
Expenses were approximately 5% lower in 2020 than in 2019 due to implementation of cost control measures in response to COVID-19, which were primarily salary and hourly staffing reductions. This expense reduction was offset, in part, by the shift to Armanino LLP for accounting/bookkeeping services.  It should be noted this additional cost will be partially offset in future years by a reduction in other administration expenses.

Two transactions have helped the parish meet its obligations during this difficult time.  We were able to obtain a Payroll Protection Program loan through the CARES Act which we anticipate will be fully forgiven in 2021.  We also were able to recover a significant portion of the embezzlement losses through insurance proceeds. This influx of cash will enable the parish to continue operating, but these funds will dwindle over time unless collections increase. 

Finally, faithful stewardship goes beyond contributions and we’ll need your help in the implementation of new financial policies and procedures we have set up this past year.  As you volunteer your time and talents to parish operations, you may see changes. Know these changes are a part of enhancing our internal controls and help to ensure accountability and good stewardship.  Your help in complying with the changes will be appreciated.  Know, too, we are always open to suggestions for improvement. 

If you have questions, please feel free to reach out to any one of us or to Fr. Leonard. 
 
Thank you,
 
Finance Council Members
 
George Brandt, Chair
Steve Manning
Susan Hupp
Becky MacDougal
Larry Graves