st. joseph parish of mono county annual report · joseph parish of mono county annual report year...

ST. JOSEPH PARISH OF MONO COUNTY

ANNUAL REPORT YEAR ENDED JUNE 30, 2015


ANNUAL REPORT

YEAR ENDED JUNE 30, 2015

Table of Contents ................................................................................................................................ 1

Discussion and Analysis of operations for the current year ended June 30, 2015………………………………… 2

List of Finance Council members and length of service……………………………………………………………………….. 6

Financial Statements

Statement of Financial Position ..................................................................................................... 7

Statement of Activities ................................................................................................................... 8

Statement of Cash Flows .............................................................................................................. 10

Notes to Financial Statements ...................................................................................................... 11

Additional Information ...................................................................................................................... 17

Schedule of offertory revenues .................................................................................................... 18

Schedule of parish center activities……………………………………………………………………………………………….19

Discussion and Analysis of operations for the five years ended June 30, 2015 .............................. 20

Statement of Activities for the five years ended June 30, 2015 ..................................................... 22


DISCUSSION AND ANALYSIS OF OPERATIONS for the current year ended

June 30, 2015

DEFINITIONS:

The following remarks relate to both “restricted” and “unrestricted” income.

“Restricted” income refers to income whose source limits the use of those funds to a specific

purpose, such as building the Parish Center.

“Unrestricted” income refers to funds that may be used wherever needed.

In accordance with Diocesan policy, the net income from operations does not include

depreciation expense. Capital items are expensed in the year they are funded and are included in the

non-operating section of the Statement of Activities.

FISCAL YEAR RESULTS: Total operating income was lower than the prior year by almost $11,000, but

was over the budgeted expectations by $8,000. The increase in net assets for the fiscal year ended June

30, 2015 was more than both the budgeted expectation and the prior year’s actual result.

Total operating expenses was less than the prior year by almost $20,000. Accordingly, net operating

income was $8,000 more than the prior year. The major savings were in property and facilities costs and

social justice costs. Property and facilities costs were down over $10,000 due to lower snow removal

costs, and deferral of planned repairs until next fiscal year. Social Justice expense, which represents

charitable opportunities, was down over $4,000. This savings is primarily due to a lower amount that

was donated by St. Joseph’s to supplement the Bishop Ministry Appeal donations given by parishioners.

When parishioner donations are less than the Diocese’ target, the Diocese bills the parish for the deficit.

The Finance Council can opt to pay it or wait until the parishioners donate in excess of their target.

Capital expenditures were limited to costs on developing the Parish Center. The large net loss in the

prior year was due to significant capital improvements on St. Joseph’s Church.

CASH INFLOWS (See figure 1 on next page): Total cash inflows of operating and non-operating income

amounted to approximately $286,000 for the fiscal year, roughly the same as the prior year. The

sources of income have varied, however. The largest source of income, offertory income, amounted to

$186,000, for the 3 locations. This is a decrease of approximately $7,500 from the prior year. The Parish

is especially grateful to the out-of-town worshipers who have been consistently sacrificing on behalf of


June 30, 2015 (continued)

the Parish. Aggregate cash donations outside of offertories amounted to $80,000 compared to $86,000

in the prior year. The restricted donations are primarily for the capital reserve fund. The reserve has

resulted from a three year campaign that ends November 2015.

Figure 1 Cash Inflows

CASH OUTFLOWS (Figure 2. Below): Total cash outflows were approximately $204,000. Operating

expenses of running the facilities and providing for spiritual needs were $186,000 and capital outlays

amounted to approximately $18,000. The capital outlays were funded by the Parish Center Fund.

Staff consists of two part-time workers. The latest hire is a bookkeeper who was originally hired for a

day a week. Just before year end, the bookkeeper’s hours were increased to a half-time position. The

bookkeeping work was formerly performed entirely by a volunteer.

Costs to maintain the facilities in Mammoth continue to be the second largest ordinary expense.

Repairs and maintenance decreased approximately $6,000 due primarily to deferral of certain planned

maintenance.



Figure 2 Cash Outflows

CASH BALANCES: Throughout the year, cash is received by the Parish for specific purposes in addition

to the unrestricted donations. Cash designated for specific purposes is restricted and not released until

the specific project is accomplished.

Capital Reserve Fund: Cash and investments restricted to the Capital Reserve Fund are available to fund

capital improvements. No capital improvements were made this year.

Parish Center Fun: Cash and investments restricted to the Parish Center Fund approximate $1.85

million at June 30, 2015. Investments are primarily in the Diocese’s short term fund, which is held in

Trust. Cash decreased slightly during the year due to expenditures on engineering and title costs that

were in excess of income from investments and donations. The Building Committee of St. Joseph

Church changed architects for the Parish Center, which has delayed the project. The new architect has

commenced work. When the plans have been approved by the St. Joseph’s Building Committee and the

Town of Mammoth Lakes, they will be presented to the Diocese Building Committee before the project

can proceed.



Unrestricted Cash: Unrestricted cash is approximately $24,000 at June 30, 2015. The checking account

balance was unusually large at that date due to a deposit of Parish Center fund savings that were

transferred from the Parish’s former bank. Unrestricted cash in the checking account at year end would

cover 69 days of average operating expenses. This complies with the Diocesan recommendation of 60

days of cash on hand.

PARTICIPATION IN DIOCESAN, NATIONAL AND INTERNATIONAL APPEALS: The Bishop annually appeals

to parishioners for donations, setting a goal for each Parish in the Diocese, based on their proportion of

total Diocesan offertory revenues. The goal for 2015 is $24,500. Such donations are made directly to the

Diocese by parishioners. As of August 12, 2015, the deficiency from goal is $8,200. The goal for

calendar year 2014 was not met by these specific donations. The Parish paid the unfulfilled amount of

$4,300 using general cash inflows.

The Parish takes up collections on behalf of other religious entities. Amounts collected and remitted to

those entities amounted to $20,000 in 2014-15 and $17,000 in 2013-14.

FUTURE YEAR BUDGET: The St. Joseph Parish Finance Council establishes an operating and capital

budget each year. The 2015-16 fiscal year budget has been prepared using an average of historical costs

for operating expenses. Projected income was lowered to reflect concern over the continued lowering

of offertory revenues and to reflect the end of the capital reserve campaign.

Ministries and Program Expenditures: The Parish priest continues to plan and implement all parish

programs and ministries without a parish pastoral council. A council was elected during the year, but no

results were reported from the first meeting and there have been none since. Due to the trend of

shrinking offertory contributions, the Finance Council has requested and the Parish priest has

committed to tighter controls on spending in year 2014-15.

Administration: The Finance Council has continued to support the concept of paid part-time staff as

explained above. During this fiscal year, a computer was donated for use by a paid part-time

bookkeeper. The volunteer who has performed the bookkeeping for the past four years is continuing to

train the staff, prepare financial reports and monitor administrative tasks.

Maintenance and improvements: Maintenance expense covered unexpected repairs and the long

awaited repair to the ceiling of the St. Joseph church. Repairs, such as on the Bridgeport church roof

and the rectory exterior, have been deferred until 2015-16. These two items will need replacement in a

few years.



CAPITAL RESERVES: The Parish needs reserves to fund projects that are too expensive to be paid from a

single year’s budget. The Parish’ three-year capital reserve campaign, which was started in December

2012, had a goal of $150,000. At June 30, 2015, total donations to the reserve fund approximated $172,

000. Cash from the reserves was used to fund significant improvements during the 2013-14 fiscal year

and was completely reimbursed from the operational checking account in 2014-15. The reserve

campaign will be complete in November 2015.

Contacting Management:

The financial report is designed to provide a general overview of the Parish’s finances and to show the

Parish’s accountability for the money it receives. If you have questions about this report or need

additional information, please write the Business Administrator or the Chair of the Finance Council at

[email protected].

Members of the Finance Council during the fiscal year were:

Mammoth Lakes Appointment Date

Tom Altenbach, Vice Chair Oct. 2013

Linda Brown, Secretary Oct. 2013 (Resigned effective July 14, 2015)

Antonio Garcia, Member Jan. 2015

Sergio Moreno, Member Oct. 2013

Michael Morse, Member Dec. 2012

Olga Avila Ruz, Member Jan. 2011

Lee Vining

Kathy Hansen, Member Jan. 2011

Business Administrator: Helen Shepherd

mailto:[email protected]


STATEMENT OF FINANCIAL POSITION

June 30, 2015 AND 2014

2015 2014

ASSETS

Cash and cash equivalents $ 304,832 $ 207,918

Other current assets 7,602 18,578

Investments held in trust by Diocese 1,763,061 1,757,995

Land, buildings and equipment, net 1,587,653 1,587,653

TOTAL ASSETS $ 3,663,148 $ 3,572,144

LIABILITIES AND NET ASSETS

LIABILITIES

Accounts payable $ 8,448 $ 6,493

Accrued liabilities 14,238 11,696

Special collections payable 3,378 3,054

Total Liabilities 26,064 21,243

NET ASSETS

Current funds –unrestricted net assets (deficit) 23,986 ( 16,214)

Parish center fund 1,852,788 1,861,927

Invested in facility funds 1,587,653 1,587,653

Capital reserve funds 172,657 117,535

Total net assets 3,637,084 3,550,901

TOTAL LIABILITIES AND NET ASSETS $ 3,663,148 $ 3,572,144

SEE NOTES TO FINANCIAL STATEMENTS


STATEMENTS OF ACTIVITIES

Year Ended June 30, 2015

(With Comparative Total for Year Ended June 30, 2014)

________________2015________________ __2014__

Unrestricted Restricted

__Net Assets Net Assets __Total__

OPERATING INCOME

Offertory $ 157,839 $ - $157,839 $ 162,848

Sacramental offerings 6,599 6,599 10,730

Property & facilities revenue 1,000 1,000 200

Various ministries income 2,054 2,054 1,296

Lee Vining Mission ministry income 25,049 25,049 26,345

Bridgeport Mission ministry income 7,790 7,790 8,386

Other income 108 5,150 5,258 6,996

Total Operating Income 200,439 5,150 205,589 216,801

OPERATING EXPENSE

Clergy 44,808 - 44,808 47,120

Administration 37,667 106 37,773 39,941

Property & facilities 17,606 17,606 27,686

Utilities 22,277 22,277 23,246

Fees and assessments 10,479 10,479 12,093

Various ministry expenses 13,024 350 13,374 14,497

Lee Vining Mission ministry 21,633 2,210 23,843 22,369

Bridgeport Mission ministry __15,883 _______ 15,883 17,923

Total Ordinary Expense __183,378 __ 2,666 186,044 204,875

Net Operating Income (Loss) 17,061 2,484 19,545 11,926

NON-OPERATING INCOME AND EXPENSE

Other Income

Church non-operating income 21,379 58,807 80,186 83,363

Lee Vining Mission non-op. inc. 1,760 2,210 3,970 2,255

Total other income 23,139 61,017 84,156 85,693

(Continued)


STATEMENT OF ACTIVITIES (Continued)

Year Ended June 30, 2015

(With Comparative Total for Year Ended June 30, 2014)

________________2015________________ __2014__

Restricted

Unrestricted Net Assets __Total__ ___Total

Other Expense

Church capital expenditures $ - $ 16,611 $ 16,611 $ 147,963

Other non-operating expense 907 907 946

Mission non-operating expense - - - 1,264

Total Other Expense - 17,518 17.518 150,173

Net non-operating income

and expense 23,139 __43,498 66,637 ( 64,480)

INCREASE IN NET ASSETS (DECREASE) 40,200 45,982 86,182 ( 52,554)

ASSETS RELEASED FROM RESTRICTION (5,279)

NET ASSETS (DEFICIT), beginning of year (_16,214) _3,567,115 3,550,901 3,608,734

NET ASSETS, end of the year $ 23,986 $3,613,097 $3,637,083 $3,550,901



STATEMENTS OF CASH FLOWS

Years ended June 30, 2015 and 2014

2015 2014

CASH FLOWS FROM OPERATING ACTIVITIES

Change in net assets $ 86,183 ($ 57,833)

Adjustments to reconcile change in net assets to net cash

from operating activities:

(Increase) decrease in other current assets 10,976 ( 15,331)

Increase (decrease) in current liabilities 4,821 ( 409)

Total increase (decrease) in cash flows from operating activities 15.797 ( 15,740)

CASH FLOWS FROM INVESTING ACTIVITIES

Increase in Investment in Diocese of Stockton Trust ( 5,066) ( 4,772)

Total decrease in cash flows from investing activities ( 5,066) ( 4,772)

NET CHANGE IN CASH AND CASH EQUIVALENTS 96.914 ( 78,345)

CASH AND CASH EQUIVALENTS, beginning of the year 207,918 286,263

CASH AND CASH EQUIVALENTS, end of the year $ 304,832 $ 207,918



NOTES TO FINANCIAL STATEMENTS

YEAR ENDED JUNE 30, 2015

NOTE 1 – ORGANIZATION

The churches of Mono County were originally established in 1939, as part of the Diocese of Sacramento.

When the Diocese of Stockton (the Diocese) was formed in 1962, the parish became canonically a part

of that Diocese. In 1984, the Parish center was reassigned from Lee Vining to Mammoth Lakes. St.

Joseph Parish of Mono County (the Parish) was incorporated as Pastor of St. Joseph Church of

Mammoth Lakes, A Corporation Sole, which commenced financial operations on December 20, 2002.

Under the Corporation Sole structure, all business is conducted through the pastor or, in the absence of

a pastor, the Parochial Administrator. The Parochial Administrator (PA) during the past two fiscal years

was Rev. Jorge Román. The Parish facility encompasses St. Joseph Church in Mammoth Lakes,

California, and two missions: Our Savior of the Mountains in Lee Vining, California and Infant of Prague

in Bridgeport, California.

The following is a description of the funds included in the financial statements:

Current fund – This fund contains the unrestricted resources available to support the Parish

operations. A deficit in this fund means that the Parish is relying on restricted funds to cover

operational needs.

Parish center fund – This restricted fund contains the funds accumulated through a campaign to

build a Parish Center on the campus of the St. Joseph Church in Mammoth Lakes. Funds have been

spent for expenses preliminary to building. Such costs include architectural drawings and

engineering fees and expenses.

Investment in facilities fund – This fund reflects the net ownership in land, building and equipment.

In the absence of a cost basis, assets have been stated at assessed values for the 2003 fiscal year,

which is the earliest information available. Allocations were made subsequently between land and

structures. Assets purchased since the 2003 fiscal year are capitalized on the cost basis. The fund is

artificially small as the accounting policy of the Diocese is to write off all depreciable assets in the

year of acquisition. Therefore, all additions since 2003 are offset by a deduction account labeled

“Less assets expensed.”

Capital reserve fund -- In December 2012, the Parish initiated a three year campaign to build capital

reserve funds. This was considered necessary as the unrestricted funds were insufficient to cover

needed improvements. The target of the campaign was $150,000. Campaign pledges are fully

reserved. The income is recognized as the pledges are fulfilled.

NOTE 1 – ORGANIZATION (Continued)

Other restricted funds – These funds are restricted for various purposes and are spent in accordance

with the donor’s specifications. There were no unspent funds of this type at the end of this fiscal

year.

NOTE 2 – SUMMARY OF ACCOUNTING POLICIES

The accounting policies of the Parish conform to required policies of the Diocese. The only major

variations from generally accepted accounting principles for not-for-profit organizations are the carrying

value of assets and the depreciation policy, both of which are described above in Note 1. Cents have

been rounded and cause totals to be off by a dollar.

Accrual Basis – The financial statements of the Parish have been prepared on the accrual basis of

accounting.

Income Taxes – The Parish’ corporation has been recognized as a tax-exempt entity by the Internal

Revenue Service except to the extent of unrelated business taxable income as defined under IRC

sections 511 through 515 and the California Franchise Tax Board under sections 501(c )(3) and 23701(d),

respectively. The Parish currently has no such income. Accordingly, no tax provision has been recorded

in the financial statements.

Use of Estimates – In preparing financial statements in conformity with generally accepted accounting

principles, management makes estimates and assumptions that affect the reported amounts of assets

and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements,

as well as the reported amounts of revenues and expenses during the reporting period. Actual results

could differ from those estimates.

Investments Held in Trust – Beginning In 1990, the Parish developed a campaign to raise funds for a

parish center to be built on the St. Joseph Church property. A significant portion of the moneys from

the Parish Center Campaign were deposited into the Diocese of Stockton Revocable Trust (Trust). The

Trust holds and invests funds for churches of the Diocese as well as Diocesan funds. The investment is

accounted for at cost, which approximates fair value. The Parish is allocated its share of the actual

income (or loss) of the Trust’s investment portfolio. Investment income is included in the statement of

activities as an increase in the Parish Center Fund. These are the only uninsured deposits of the Parish.

In 2014, the Diocese declared bankruptcy. The Parish has received assurances from its law firm that its

Trust moneys are not subject to the bankruptcy.

Property and Equipment – Purchased assets are recorded at cost and donated assets are recorded at

approximate market value at the time of receipt. The Diocese has requested the Parish to

NOTE 2 – SUMMARY OF ACCOUNTING POLICIES (continued)

follow a policy of writing off all depreciable capital assets in the year of acquisition. These financial

statements reflect that directive.

Special Collections Payable – National and global collections are taken up during the year on a scheduled

basis. These funds are not included in revenues when collected. They are remitted to the Diocese or

paid directly to the organizations for which the collections were taken.

Ordinary income and expenses – Ordinary income includes funds taken in from Sunday collections and

other rites of the Parish and from Parish ministries, as well as interest income. Ordinary expenses are

the normal costs related to the support of the clergy, the operating costs of the church and the other

buildings and grounds, as well as the expenses of the ministries. It does not include depreciation as

explained under property and equipment policies above. Clergy costs are governed by policies of the

Diocese and include salary; health benefits; living costs, such as groceries and laundry; and use of the

rectory building for living quarters.

Non-operating revenues and expenses – Non-operating revenues include donations given outside of the

normal church operations and any grant income received. Non-operating expenses include

expenditures for any events outside the religious operations and for write off of assets acquired during

the year.

Reclassifications - Certain reclassifications have been made to 2013-14 financial statements to conform

to the current financial statement classifications. These changes are not significant.

NOTE 3 –CASH AND CASH EQUIVALENTS

Cash and cash equivalents are made up of the following types of accounts and are held in banks insured

by the Federal Deposit Insurance Corporation. All deposits are insured:

___2015___ ___2014___

Checking $ 133,206 $ 31,885

Certificate of deposit – Bank of America 60,178

Bank savings accounts 171,626 115,855

Total cash and cash equivalents $ 304,832 $ 207,918

Just before year end, the Bank of America Parish Center restricted cash accounts were transferred to the

Union Bank checking account. In July, a $90,000 certificate of deposit was purchased from those funds.

The money remains restricted to use for the Parish Center. At June 30, 2015, the Parish had 69 days of

unrestricted cash available in its checking account in addition to the Parish Center funds. Also,

subsequent to year end, $160,000 of funds reserved for capital improvement purposes were transferred

from a bank savings account to certificates of deposit in Union Bank.

NOTE 4 – INVESTMENTS HELD IN TRUST

A Parish can invest in either the short- or long-term portion of the Diocese of Stockton Investment

Trust. The Parish’ investment is in the short-term fund as the concept for the building has been

approved by the Diocese and the architect has been contracted.

The short-term fund is designed for Parishes needing funds within 3 years and may be invested by the

Trustees in the following:

Money market accounts

CD’s

T-Bills

Current loans to other parishes and schools

Other short-term/intermediate investment vehicles as deemed appropriate

The Trust document requires permission from the Diocese to withdraw from the fund. The Diocese has

continuing oversight on the planning and construction of the building.

Earnings on the Trust for the 2015 and2014 fiscal years amounted to annual percentage rates in the

range of 0.25% to 0.32%.

NOTE 5 – LAND, BUILDINGS AND EQUIPMENT

Land, buildings and equipment are as follows as of June 30:

___2015___ ___2014___

Land $ 1,587,653 $ 1,587,653

Buildings and improvements 1,434,729 1,434,729

Furniture, fixtures and equipment 17,798 17,798

Liturgical appointments 6,109 6,109

Total 3,045,889 3,046,289

Less assets expensed ( 1,458,636) ( 1,458,636)

Net Land, Buildings, and Equipment $ 1,587,653 $ 1,587,653

The land is located in Mammoth Lakes, underlying St. Joseph church, parking lot, Stations of the Cross

Path and rectory; in Lee Vining underlying Our Savior of the Mountains mission church, a field and

rectory; in Bridgeport, underlying Infant of Prague mission and a small vacant lot in Benton, California.

NOTE 6 – INSURED RISKS

The corporation is insured against property damage, liability, crime and fidelity by a company engaged

through the Diocese of Stockton. All premium payments are paid directly to the Diocese. During 2015,

liability claims from two separate incidents were filed and taken care of by the Parish’ insurance carrier.

No automobiles were owned by the Parish during the period. Coverage for private vehicles driven on

Parish business is the responsibility of the owner of the vehicle, although the pastoral administrator is

reimbursed for his automobile insurance.

NOTE 7– RESTRICTED NET ASSETS

Temporarily restricted net assets are available for the following purposes at June 30:

___2015___ ___2014___

Parish center fund $ 1,852,788 $ 1,861,927

Investment in facility funds 1,587,653 1,587,653

Capital reserve funds 172,657 117,535

Total restricted net assets $ 3,612,398 $ 3,567,115

Parish center funds were donated for the purpose of building a Parish center on the St. Joseph campus

and may not be used for other purposes. A structural plan was presented to the Diocese Building

Committee in fiscal year 2014 and received approval by the Bishop to proceed. An architect was hired by

the Parish Building Committee. The contract was terminated in 2015 and a new architect has been

hired.

Investment in facility funds represents the un-depreciated value of capital assets of the Parish.

Capital reserve funds will be used as needed to pay for major improvements. Excess earnings of the

parish will be used to replenish that fund. Unrecognized pledge income is approximately $2,000 and

$21,000 at June 30, 2015 and 2014.

Note 8 – COMMITMENTS

The Parish is a member of the Stockton Diocese. The parish is assessed a fee for services rendered by

the Diocese related to religious programs and assistance with human resources and staff benefits. The

fee is billed quarterly during the calendar year, based on 7% of the aggregate offertory donations

collected by the Parish in the preceding fiscal year. The aggregate fees paid by the 3 locations during

2015 and 2014 were approximately $12,000 and $14,000, respectively.

In June 2014, the Mammoth Lakes Fire Protection District, in cooperation with the United States Forest

Service, requested that the Parish come into compliance with laws regarding defensible space. They

Note 8 – COMMITMENTS (continued)

assisted the Parish in qualifying for a grant program that would pay up to 75% of the cost. A contract for

$3,000 was let under grant guidelines to clear the land surrounding the St. Joseph Church property

of debris and excess growth. The reimbursement was accrued as of June 30, 2014. On August 13, 2014,

the Parish received the full 75% reimbursement.

ADDITIONAL INFORMATION


SCHEDULE OF OFFERTORY REVENUES

Years ended June 30, 2015 and 2014

2015

St. Joseph’s Our Savior of Infant of Total

Mammoth the Mtns. Prague _ 2014

Non-holy day English Masses $111,774 $18,693 $7,607 $138,074 $150,934

Non-holy day Spanish Masses 20,624 20,624 23,870

Christmas Collections 17,429* 293 37 17,759 9,805

Easter Collections 4,342 509 111 4,962 5,300

Other Holy Days 3,670 520 36 4,226 3,240

Total Offertory Revenues* $157,839 $20,015 $7,791 $185,645 $193,149

Decrease in collections from prior year $ 7,504 $ 26,197

Overall percentage decrease from prior year 3.9% 11.9%

*Christmas collections at St. Joseph’s included a check for $10,000 in 2015.

NOTE: These revenues serve as the basis on which the Diocese levies its 7% Service Fee.


SCHEDULE OF PARISH CENTER PAYMENTS

Year ended June 30, 2015

The following payments were made from the checking account during the fiscal year. After year end,

they were reimbursed to the checking account from the Parish Center Trust Fund, which is held by a

broker engaged by the Diocese:

Cage Technical Services - Project oversight, net of donated time $ 4,680.00

T. Schaniel Architects:

12/26/2014 Contract Deposit 6,000.00

02/01/2015 Services, net of $800 of deposit 3,606.25

04/01/2015 Services, net of $800 of deposit 2,325.00

Total reimbursed in July 2015 $16,611.25


DISCUSSION AND ANALYSIS OF OPERATIONS for the five years ended June

30, 2015

The historical financial statements of St. Joseph Parish, which are shown earlier in this document, follow

diocesan guidelines. They are designed to highlight costs of the Mammoth Lakes Church and to

segregate costs of each of the two Mission churches. Unlike the official historical profit and loss

statements, the summary five year financial statements classify costs by their natural category,

regardless of the physical location.

The parish is in a resort community and is, therefore, dependent on visitor donations. The prime

seasons for visitors are during the summer and snow seasons. In 2011, Mammoth Lakes Resort had

668” of snowfall. In the subsequent 4 years, the snowfall was below average, ranging from 238” to

308.” The low snowfalls and related shortage of visitors also impact the ability of some local residents to

donate.

Ordinary revenues: When the new pastor was assigned in 2011, revenues dipped to $184,000. Under his leadership, the revenue levels climbed to a high of $219,000 in 2013. When the pastoral administrator was assigned in 2013, revenues again dipped from the prior year. They have continued to decline. As previously noted, the offertory revenues of St. Joseph Parish are significantly dependent on the generosity of the visitors to this resort community and on the economic effects of those visitors on the local parishioners who donate. However, the 2011 year of high volume of snow was the lowest of the five year period with only $184,000. The high year was $219,000 in 2013. Total revenues had a range of $35,000, which is a 19% variation. Visitor donations: Of the 1,600 donors who gave by check during the five year period, only 468 (29%)

are local donors. Of the 615 donors who gave by check during 2015, 19% were local and provided 22%

of the dollars given by check. Locals are defined as living in Mono County or Northern Inyo County.

Staffing: Staffing during the five year period has varied from a staff consisting of 2 clergy for the earliest six months. In the next 2 ½ years, there was one clergy who worked solely with volunteers. In the last two years, part-time staff was hired to assist. Costs ranged from approximately $62,000 for the single clergy years to $86,000. Facilities and utilities: Facilities and utilities costs for the three locations range from $49,000 in the most current year to $90,000 in fiscal 2011, approximately 84% more. These costs are almost entirely dependent on the unpredictable weather conditions. The weather has gotten milder over this five year period. Administration: Administration expenses, net of staff costs, varied from approximately $38,000 in 2012 to a high of $51,000 in 2014.

Liturgy and ministries: Liturgy and ministry programs ranged from approximately $11,000 in 2013 to

$17,000 in the most recent year, or 55% more. The cost variations are primarily due to range of

activities and to refinements of liturgical appointments approved by the pastor in charge for that period.

Net ordinary income (loss): Net ordinary income or loss reflects all the ongoing costs of the parish and

the recurring types of income. The Parish was incurring losses through 2011. The Finance Council of the

Parish, which was established in 2011, has budgeted expenses each year since then so as to ensure a

positive balance. The Parish net ordinary income ranged from a deficit of $21,000 to an income of

$58.200, averaging $18,400 over the last 5 years.

Other income/expense: Other income and expense is not predictable from year to year. Non-offertory

revenues are primarily restricted donations relating to the parish center and the capital reserve funds.

In accordance with Diocesan policy, capital expenditures are deducted in the year they occur instead of

using the depreciation accounting technique. The major capital expenditures were for improvements

made to Our Savior of the Mountains, Lee Vining, in 2011, refurbishment of the Mammoth Lakes rectory

in 2012 and for exterior improvements to St. Joseph Church, Mammoth Lakes in 2014. Capital

improvements have averaged $50,000 a year over the last 6 years.

Net Income (loss): The large loss in 2014 was caused primarily by capital improvements to the St.

Joseph Church. The capital reserve fund which was initiated in December 2012 was used to finance

those capital improvements. The net income (loss) for the five year period averaged $43,100, but when

the $172,600 of donations to the capital campaign (a one-time event) is excluded, the Parish averaged a

more modest net income of $8,600 per year.


STATEMENT OF ACTIVITIES

FIVE YEARS ENDED JUNE 30, 2015

EACH LINE ITEM INCLUDES AMOUNTS FOR ALL FACILITIES

Years ended June 30, 2015

Operating Revenues 2011 2012 2013 2014 2015

Offertory, all locations $ 184,460 $187,646 $219,361 $193,149 $185,644

Miscellaneous revenues 30,998 32,048 24,764 23,652 19,945

Total operating revenues 215,458 219694 244,125 216,801 205,589

Operating Expenses

Staffing, including benefits 86,331 61,957 61,867 76,174 74,499

All facilities and utilities 90,143 83,989 65,746 61,136 49,217

Administration 46,013 37,738 47,556 51,494 45,033

Liturgy and ministries 14,002 11,648 10,785 16,849 17,295

Total operating expenses 236,488 193,332 185,955 205,653 186,044

Net ordinary income (loss) (21,031) 24,362 58,170 11,148 19,545

Other Income/expense

Non-offertory donations 115,781 54,541 104,772 86,523 84,156

Capital expenditures (54,727) (51,134) (17,253) (149,226) (16,611)

Other non-ordinary expense (25,951) (425) (5,009) (1,013) (907)

Net other income/expense 35,104 2,982 82,509 (63,716) 66,637

Net income (loss) $14,073 $27.345 $140,679 ($ 52,568) $ 86,182

NOTE: Certain classifications from prior years have been changed to conform to current year

classifications.

Contacting Management:

The financial report is designed to provide a general overview of the Parish’s finances and to show the

Parish’s accountability for the money it receives. If you have questions about this report or need

additional information, please write the Business Administrator or the Chair of the Finance Council at

[email protected].

Members of the Finance Council at August 20, 2015 are:

Chair, Tom Altenbach

Members-at-large:

Antonio Garcia

Kathy Hansen

Sergio Moreno

Michael Morse

Olga Avila Ruz

Applications for membership to the Finance Council are welcome for all parishioners who have expertise

in financial affairs and/or civil law and have outstanding integrity. You may indicate your interest on the

website.

Business Administrator: Helen Shepherd

mailto:[email protected]

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