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                          TO:  Interested Churches                                                                                                 FROM: Jim Bramer Retired CPA-Auditor
                                                                                                                                                                  FILE: 5022-02/chu    

                          RE:  Big Pix Reporting - More Info                                                                                   Originated:  May 2001

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    Th is a hypothetical Online Email thread (THRD) between any of the following MFTeam members: PAT (Pastor), LEE: (Ministry Volunteer Treasurer), or FRAN: (Ministry Computer Bookkeeper) and  Jim@bcidot.org  Click here and go to List of threads (THRDs) at www.bcidot.org

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               FR PAT:

     Hi Jim ..... have just read 5012, Big Pix Reporting at a Church and frankly, I am having trouble understanding all of things you have recommended. You can no doubt understand, as the Pastor, I do not have much business or finance background. 
    Please provide me with some tools for grasping what this report is all about, etc.

FR  Jim@bcidot.org 

        No problem, Pastor. As provided in more detail via 0041, let me begin by stating that finances at a Church are in two basic major areas ... the first is what I call the General Purpose Fund (GPFund) and the other is a group of Special Purpose Funds (SPFunds).  The GPFund is under "per expense, or line item' budget control while SPFund spending control is by available SPFund balance of each fund.      

                           FR PAT:

        I get that .... although I use the term "General Fund" and "Designated Funds," but after reading 0041  I have a better grasp of all of this. Thank you.

FR JIM:

        What I am going to do next is take the Big Pix Sample within 5012 and divide it up into segments.

 1st  SEGMENT 

        This segment concerns the GPFund and appears below. Note the fact that $79,300 came in since the first of your year and $84,676 went out -- with groups of expenses compared to the total authorized budget amounts of $85,059 for that period of time. The GPFund operated at a deficit of $5,376.

				GPFund Budget
			GPFund	To Date	Variance
Revenue:
	Donations		$77,800
	Other		$1,500
	Total		$79,300
Expenditures:
	Salaries/Benefits		$57,500	$57,667	($167)
	Operations		$47,926	$48,075	($149)
	(Defrayment)		($50,000)	($50,000)
	Mortgage Payments		$15,000	$15,042	($42)
	New Equipment		$5,000	$5,000
	Other		$9,250	$9,275	($25)
	Total		$84,676	$85,059	($383)
Excess (Expenses)			($5,376)

2nd SEGMENT

        The emphasis to this segment is the SPFunds.  Below you see the Expenditures exceeded the Revenue by $74,526 of all of the SPFunds for the year and how that $95,000 was on hand (note that this shows up in this Big Pix report in the middle of the page) at the beginning of the year and as of  May 31, xxx2 which results in $20,474 being the balances of all of  SPFunds ; as sub-totaled by the named SPFund groups.  Or $20,474 of the money in the bank is "Spoken For."

				SPFunds
Revenue:
	Donations			$111,000
Expenditures:
	Operations			$110,026
	Building Improvements			$74,500
	Other			$1,000
	Total			$185,526
Excess (Expenditures)				($74,526)
Begin SPFunds Balances				$95,000
End SPFunds Bal as computed				$20,474
"Spoken For" as follows:
	#1 Donor Restriction			$3,500
	#2 Donor Restriction			$1,200
	Board SetASides			$13,550
	Board Discretionary			$2,224
	Total			$20,474

3rd SEGMENT

        The intent in this segment is for you to look at the entire Church financial operations for the year: or there is a combination of what actually happened in the GPFund with what also happened within all of the SPFunds. For example, below, you will notice that the total income from both the GPFund and all of the SPFunds amounted to $190,300.  At the same time, all expenditures amounted to $270,202.  The combined excess of expenditures over income was $79,902. Of course, this was only possible because the Church began the year with unspent money in the SPFunds.  Note below that $74,500 was spent during the year for Non Building Assets  or this Ministry has both a Building Fund below as well as a separate project,

			Totals	SPFunds	GPFund
Revenue:
	Donations		$188,800	$111,000	$77,800
	Other		$1,500	0	$1,500
	Total		$190,300	$111,000	$79,300
Expenditures:
	Salaries/Benefits		$57,500		$57,500
	Operations		$157,952	$110,026	$47,926
	(Ministry Reimb)		($50,000)		($50,000)
	Mortgage Payments		$15,000		$15,000
	New Capital Assets		$79,500	$74,500	$5,000
	Other		$10,250	$1,000	$9,250
	Total		$270,202	$185,526	$84,676
Excess Revenue (Expend)			($79,902)	($74,526)	($5,376)

Last  SEGMENT

        In the top portion of this segment, GPFund weekly giving information is emphasized so you can measure the weekly budget need to the average amount that has actually come into the GPFund.  Note below that the average weekly offerings for 48 weeks was $1,652 when the annual budget says you need $1,923. 
        The lower portion informs the reader that you have $16,879 in the Bank and you owe bills of $1,781. The difference of $15,098 belongs to the SPFunds and the GPFund.

Annual Budget of	$100,000
Divided by:	52
(1) Wkly Need	$1,923
GPFund actual
Income to Date