2022 FINANCIAL RESULTS
2022 Operating Income was $391,099 against an annual budget of $372,123. Pledges exceeded budget by $8,655. We also exceeded budget on donations, plate income, and rummage sales income. Building use donations and income from a budgeted but later canceled fundraiser event were lower than budgeted. Operating Expenses were $5,552 above the annual budget, primarily driven by higher utility (energy) costs from increased consumption and pricing and increased cleaning service costs (note St. Mark’s returned to its pre-COVID full cleaning schedule during 2022). Net Operating Income was $13,963, driven by favorable income cited above.
Notable balance sheet highlights for 2022 (i.e., comparing balances at the end of 2021 vs. the end of 2022) include a decrease in value of our Diocesan Investment Trust (DIT) of approximately $59,000 (or -23%) reflecting the overall down year in financial markets in 2022, and the decrease in our Mortgage liability of approximately $263,000 (or -71%) due to the pay down of our Mortgage made possible by the Capital Campaign.
Total Operating Income Budget is $390,812. We have projected pledges of $301,500. The rest of income will come from donations, holiday offerings, building rental, and two rummage sales. Our budgeted pledge income is higher than actual pledge income received in recent years (note our 5-year annual pledge income average is approximately $283,000).
Total Operating Expense Budget is $390,811, which primarily comprises personnel costs of $240,252 (increasing $24,261 over prior year due to increases in health care premiums and cost of living adjustments for salaries), administrative expenses of $15,744, buildings and grounds of $96,956 (which includes $6,629 in mortgage costs, a significant reduction from the previous approximately $34,000 annual mortgage costs, and an increase in umbrella insurance costs) and our contribution to the Diocese of NJ of $24,312 (which is substantially below the expected pledge based on the gross income of the church). Other notable expense changes in 2023 include an increase in Sexton expenses (St. Mark’s plans to bring on a new Sexton during 2023) and an increase in Youth Ministry expenses, which reflects St. Mark’s commitment to invest in and revive its youth programs.
Net Operating Income is targeted to be approximately $0. A detailed 2022 income statement and balance sheet can be obtained upon request along with the 2023 budget.
Finally, I would like to extend a sincere thank you to the Finance Committee (Father Rick, Sean Gogerty, Martha Heiner, Ann Millan, and Doug Post) for their time, efforts, and guidance throughout the year. A special thanks goes to Ann Millan, who enters and reconciles all financial transactions and prepares financial statements each month; and to Doug Post, our Recording Treasurer, for recording and depositing all contributions on a weekly basis and providing valuable pledge income forecasting insights each month.
Click here for the full finance report with detailed budget and balance sheet.