First, thank you for putting your trust in me as a new Trustee and as your new Treasurer. I hope you will join me in thanking Claus Makowka for his superb service as Treasurer.
Overall, our finances are in a stable position and basically where we expected them to be, although coronavirus has obviously disrupted many individual areas of income and expenses.
Asset balances as of June 30 2020 add up to $406,330. This does not include the money in our endowments and trusts. Total liabilities are $324,528. This liabilities balance includes the Paycheck Protection Act loan of $71,200, since we are still treating all of this as a loan until and unless we apply for loan forgiveness. This leaves us with $81,802 in net assets, which is a healthy but not extravagant balance from which to pay upcoming expenses and ensure positive cash flow.
The budget is slightly ahead of where it should be in terms of income ($274,688 as of June 30 versus $260,158 budgeted), and slightly under where we expected it to be for spending ($254,629 actual versus 273,216 budgeted). This gives us a better overall budget balance than expected ($20,059 gain actual, versus $13,058 loss budgeted, for a total budget variance of $33,117 in our favor). This surplus includes the $71,200 Paycheck Protection Act loan. If not for this loan, we would be at a greater loss than what we budgeted for, with a total current loss of about $38,000. In other words, our current loss without the loan would be about $25,000 more than what we budgeted for at this point in the year. We continue to monitor the regulations and application for paycheck protection loan forgiveness, and will make a decision in the coming months about whether to apply for loan forgiveness.
Our endowment and other investments are still down slightly (perhaps around 3% on average) from pre-corona levels, but have mostly recovered from earlier, more dramatic, drops. The Investment Committee recently met to rebalance our investments and monitor their health.
While we enter the 3rd quarter with cautious optimism, the rest of the year is still uncertain due to the ongoing threat from coronavirus. With the church closed for the rest of the year, for example we will see no rental income. Likewise, as we start to think about next year's budget, there are many uncertainties that everyone on the Board and Finance and Investment Committees will weigh carefully. I'll be sure to provide updates in these areas in future reports.