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Financial & SynodAudit Information

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2020-2021 Proposed Synod Budget

Sierra Pacific Synod Council Recommended Budget for Fiscal Year 2020-21

SPS Operating Budget FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 FY 2020-21

REVENUE:1 Mission Support from Congregations 1 1,915,000 1,810,247 1,890,000 1,703,288 1,810,000 1,750,000 2 Other Revenue 8,500 44,172 8,500 30,124 25,000 6,000 3 Interest and Dividends 1,200 591 1,200 853 500 500

ELCA Grants to Support Shared Ministry4 ELCA Campus Ministry Grant 50,890 55,131 50,890 50,890 50,890 50,890 5 ELCA Congregational Vitality Grants2 104,000 61,800 - 77,300 61,800 50,000 6 ELCA Shared Staff Expenses 10,000 - 10,000 - 10,000 10,000

Synod Assembly/Event Registration Fees7 Synod Assembly Revenue 3 110,000 107,739 110,000 107,100 - 125,000 8 Professional Leaders Conference Revenue 30,000 32,723 20,000 20,181 30,000 30,000 9 Other Events - Revenue - - - - - -

TOTAL REVENUE: 2,229,590 2,112,403 2,090,590 1,989,736 1,988,190 2,022,390

INTER FUND TRANSFERS10 Annual Transfer from SPS Mission and Ministry

Endowment Fund 4 125,000 149,000 181,000 181,000 181,000 185,000 TOTAL INTERFUND TRANSFERS 125,000 149,000 181,000 181,000 181,000 185,000

Approved Budget

Approved Budget

Year-End Actual

Approved Budget

Year-End Actual

Council Recommended

Budget

February 2019

FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 FY 2020-21

EXPENSES:MINISTRY PARTNERS

11 ELCA Mission Support Share 5 689,400 651,689 699,300 430,963 647,500 525,000 12 Pacific Lutheran Theological Seminary 95,000 95,000 90,000 45,000 90,000 70,000 13 California Lutheran University 4,700 4,700 4,800 2,400 4,800 3,000 14 Mt. Cross / Lutheran Outdoor Ministry 4,700 4,700 16,000 8,000 16,000 17,800 15 Lutheran Social Services 4,700 4,700 4,800 2,400 4,800 4,800 16 Lutheran Office of Public Policy 4,700 4,700 4,800 2,400 4,800 4,800 17 Lutheran Engagement and Advocacy in NV 975 975 975 975 975 975

TOTAL MINISTRY PARTNERS: 804,175 766,464 820,675 492,138 768,875 626,375

Approved Budget

Year-End Actual

Approved Budget

Council Recommended

Budget

Approved Budget

Year-End Actual

of 7 February 2019

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FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 FY 2020-21SYNOD MISSION AND MINISTRY

18a Congregational Vitality Grants 125,000 149,000 181,000 107,943 181,000 100,000 18b ELCA Congregational Vitality Grants 6 104,000 61,800 - 77,300 61,800 50,000 19a Campus Ministry Grants 69,750 75,563 69,750 69,750 69,750 69,750 19b ELCA Campus Ministry Grant 7 50,890 55,131 50,890 50,890 50,890 50,890 20 Bishop's Aid Fund 2,500 2,500 2,500 387 2,500 1,000 21 Synod Resource Center 7,500 6,968 10,000 8,184 10,000 9,000 22 Synod Council 12,825 13,434 12,825 15,672 12,825 12,000 23 Committees 3,656 5,538 5,000 8,360 5,000 5,000 24 Council of Deans 2,000 1,497 2,000 622 400 500 25 Ecumenical Affairs/Partnerships 1,500 2,210 1,500 2,133 2,000 2,000 26 SPS Youth Committee 5,000 6,040 5,000 3,901 8,000 4,000 27 Discipling Teams 24,000 - 1,500 28 Congregational Life - - 800 - 800 - 29 Worship for Baptismal Living - - 800 - 800 - 30 Witness - 612 800 156 800 - 31 Justice & Advocacy - 269 1,600 - 1,600 - 32 Leadership - 3,681 12,000 3,704 12,000 4,000 33 Stewardship - - 800 427 800 - 34 Racial / Ethnic Ministry Strategies - 557 2,400 2,587 2,400 4,000 35 Young Adult Ministries - 800 - 800 -

TOTAL SYNOD MISSION AND MINISTRY 408,621 384,798 360,465 352,016 424,165 313,640

Year-End Actual

Council Recommended

Budget

Approved Budget

Approved Budget

Year-End Actual

Approved Budget

of 7 February 2019

FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 FY 2020-21SYNOD ASSEMBLY & CONFERENCES

36 Synod Assembly 100,000 85,603 100,000 116,307 30,000 115,000 37 Professional Leadership Conference 30,000 31,679 20,000 14,922 30,000 20,000 38 Other Conferences/Events - 7,000 - 1,021 - 39 Pre-Retirement Seminars - - - - -

TOTAL ASSEMBLY & CONFERENCES: 130,000 124,282 120,000 132,250 60,000 135,000

STAFFING40 Bishop's Salary and Housing 98,470 98,470 103,470 103,470 108,470 113,470 41 Executive Staff Salary and Housing 180,000 167,077 180,000 192,648 200,000 210,000 42 ELCA Shared Staff 8 67,850 43,984 75,000 104,593 115,000 116,000 43 Support Staff Salaries 160,000 139,901 160,000 161,130 155,000 175,000 44 Independent Contractors 57,000 36,940 80,000 43,091 80,000 18,000 45 SE Tax Allowances - Clergy 23,223 20,314 23,000 22,653 25,000 25,000 46 Payroll Taxes 14,435 13,460 15,000 15,112 15,500 15,500 47 Worker's Comp. Insurance 4,382 281 4,382 1,504 4,382 2,000

48a Portico Benefit Services 125,000 118,939 130,000 133,325 140,000 160,000 48b Medical Reimbursement 9 10,100 14,433 13,500 14,861 12,000 12,000 48c ELCA Shared Staff Benefits 10 39,042 - 12,000 - - - 49 Continuing Education 6,000 1,095 6,000 4,720 6,000 6,000 50 Staff Travel and Expenses 75,000 71,637 75,000 89,247 75,000 60,000

TOTAL STAFFING: 860,502 726,532 877,352 886,353 936,352 912,970

Approved Budget

Year-End Actual

Approved Budget

Year-End Actual

Approved Budget

Council Recommended

Budget

Page 4 of 7 February 2019

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FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 FY 2020-21ADMINISTRATION

51 Office Supplies 11,000 8,530 11,000 4,915 8,500 5,000 52 Liability Insurance 8,500 3,468 8,500 7,317 8,500 8,500 53 Audit & Legal 30,000 27,704 30,000 28,000 30,000 30,000 54 Training & Consulting Services 500 - 500 - 500 - 55 Licensing Fees & Memberships 500 335 500 440 500 500 56 Region 2 Center for Ministry 7,200 7,200 7,200 8,700 7,200 8,000 57 Postage & Delivery 5,000 4,681 5,000 3,029 5,000 3,500 58 Equipment Leases and Purchases 20,000 17,534 20,000 20,015 18,000 20,000 59 Maintenance & Repairs 2,000 242 2,000 110 1,000 1,000 60 Rents and Utilities 110,000 98,649 110,000 101,370 110,000 100,000 61 Electronic Communication 40,000 41,946 40,000 42,413 40,000 45,000 62 Miscellaneous Expenses 10,000 12,329 10,000 4,097 12,000 5,000

TOTAL ADMINISTRATION: 244,700 222,619 244,700 220,407 241,200 226,500

63 Bishop Transition 25,000

GRAND TOTAL EXPENSES: 2,447,998 2,224,695 2,423,192 2,083,164 2,430,592 2,239,485

Approved Budget

Year-End Actual

Approved Budget

Council Recommended

Budget

Year-End Actual

Approved Budget


FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 FY 2020-21SYNOD ASSEMBLY & CONFERENCES

36 Synod Assembly 100,000 85,603 100,000 116,307 30,000 115,000 37 Professional Leadership Conference 30,000 31,679 20,000 14,922 30,000 20,000 38 Other Conferences/Events - 7,000 - 1,021 - 39 Pre-Retirement Seminars - - - - -

TOTAL ASSEMBLY & CONFERENCES: 130,000 124,282 120,000 132,250 60,000 135,000

STAFFING40 Bishop's Salary and Housing 98,470 98,470 103,470 103,470 108,470 113,470 41 Executive Staff Salary and Housing 180,000 167,077 180,000 192,648 200,000 210,000 42 ELCA Shared Staff 8 67,850 43,984 75,000 104,593 115,000 116,000 43 Support Staff Salaries 160,000 139,901 160,000 161,130 155,000 175,000 44 Independent Contractors 57,000 36,940 80,000 43,091 80,000 18,000 45 SE Tax Allowances - Clergy 23,223 20,314 23,000 22,653 25,000 25,000 46 Payroll Taxes 14,435 13,460 15,000 15,112 15,500 15,500 47 Worker's Comp. Insurance 4,382 281 4,382 1,504 4,382 2,000

48a Portico Benefit Services 125,000 118,939 130,000 133,325 140,000 160,000 48b Medical Reimbursement 9 10,100 14,433 13,500 14,861 12,000 12,000 48c ELCA Shared Staff Benefits 10 39,042 - 12,000 - - - 49 Continuing Education 6,000 1,095 6,000 4,720 6,000 6,000 50 Staff Travel and Expenses 75,000 71,637 75,000 89,247 75,000 60,000

TOTAL STAFFING: 860,502 726,532 877,352 886,353 936,352 912,970

Approved Budget

Year-End Actual

Approved Budget

Year-End Actual

Approved Budget

Council Recommended

Budget

of 7 February 2019

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1 The projected decrease in Mission Support from Congregations is based on a trend analysis. 2 The ELCA reduced its Congregational Vitality (formerly New Start and Restart) Grants by $54,000 in FY2016-17, and shared costs with the Synod paying 40% of the grant costs in 2017-18 and 2018 -19. The Synod will be paying 60% of the grant costs in FY2019 -20. Precise information for FY 2020-21 is not yet available 3 The 2019 Synod Assembly is a one day Assembly and congregations were given the option of paying a registration fee for voting members or of increasing their Mission Support by the amount they budgeted for registering voting members for prior Assemblies. 4 SPS Mission and Ministry Endowment Fund (formerly New and Renewing Fund) has an annual distribution rate of up to 5% of the fund’s value as of June 30 of the prior fiscal year. Uses of the funds shall include but not be limited to support of synod mission, support for congregations under development, support for revitalization of existing congregations, seminary scholarships, debt retirement grants, continuing education for rostered leaders, and endowed positions. 5 ELCA Mission Support to the Churchwide expression of the ELCA was 36% of mission support received from congregations for FY 2017-18 and 37% for FY 2018-19. Mission Support sent to the Churchwide expression of the ELCA in FY 2018-19 was 25.3% of mission support received from congregations, due to less than expected revenues. The proposed 2020-21 FY Mission Support to the Churchwide expression of the ELCA will be 30% of expected mission support from congregations. 6 Information for 2020-21 Congregation Vitality grant funds from Chicago is not yet available. The $50,000 is an estimate. 7 This expense is offset by the revenue in Line 4, and the ELCA Church Council could reduce this amount based on Churchwide projected income. 8 Our synod reimburses the Churchwide expression of the ELCA for all costs associated with our synod’s Director of Evangelical Mission. Approximately $100,000 of this expense is projected to come from the SPS Mission and Ministry Endowment Fund transfer in line 10. 9 Medical reimbursement is to pay bishop’s medical insurance. This expense is approximately $9,000 less than Portico’s Gold+ policy would cost. Contract staff reimbursement was included in this line in from November 2016 through December 2018.10 ELCA shared staff benefit costs are included in line 42. 11 Policy 13-001 Section 5 details the distribution of the net sale of property. 10% is sent to the ELCA, 15% goes into the Operating Fund, 5% goes into the Property Management Fund, and 70% goes into the SPS Mission and Ministry Endowment Fund.

FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 FY 2020-21

NET INCOME/(REVENUE)-EXPENSES: (93,408) 36,708 (151,602) 87,571 (261,402) (32,095)

CASH FLOW TRANSFERS:65 Non-Recurring 15% from Sale of Property11 261,040 66 From Liquid Funds - Undesignated 151,602 67 Reimbursement from Property Fund

TOTAL CASH TRANSFERS

TOTAL NET: 167,632 36,708 - 87,571 (261,402) (32,095)

Council Recommended

Budget

Approved Budget

Year-End Actual

Approved Budget

Year-End Actual

Approved Budget


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Mission Support & Designated Giving

The following table presents the Mission Support and designated gifts received between February 1, 2018, and January 31, 2019. Some congregations refer to Mission Support as Proportionate Share or Benevolence. These funds support the work of the Synod and the whole church. The Sierra Pacific Synod forwarded 25.3% of the Mission Support received during the year to Chicago to support the work of the whole church. The 2017 Syn-od Assembly Voting Members approved a budget that included sending 37% of the Mission Support received from congregations to Chicago each month. This commitment was not met due to a significant reduction in the Mission Support received from congregations during the year. Designated Giving includes contributions that congregations send to the Synod for Ministry Partners, Sister Synods, or Churchwide for distribution to ELCA missionaries and programs such as World Hunger, Lutheran World Relief, Good Gifts, and Disaster Response. These contributions are forwarded to the designated recipi-ents the month after they are received by the Synod. In addition to the designated gifts sent through the Synod, some congregations send their designated benevolences directly to ministry partners or Churchwide. Congre-gations also send contributions directly to agencies, institutions, and programs in their local communities.

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2019 Financial Audit Report

SIERRA PACIFIC SYNOD OF THE EVANGELICAL

LUTHERAN CHURCH IN AMERICA

FINANCIAL STATEMENTS WITH INDEPENDENT AUDITOR’S REPORT

YEARS ENDED

JANUARY 31, 2019 AND 2018

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2880 Gateway Oaks Drive, Suite 100, Sacramento, CA 95833

Phone 916.646.6464 • Fax 916.929.6836 • GilbertCPA.com

Relax. We got this.SM

INDEPENDENT AUDITOR’S REPORT

S C S P S E L C A S , C

Management’s Responsibility for the Financial Statements

Auditor’s Responsibility

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Opinion

GIL ERT ASSOCIATES, INC S , C

A 29, 2019

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2019 2018ASSETS

CURRENT ASSETS

NONCURRENT ASSETS

TOTAL ASSETS

LIA ILITIES AND NET ASSETS

CURRENT LIA ILITIES

NET ASSETS

TOTAL LIA ILITIES AND NET ASSETS

SIERRA PACIFIC SYNOD OF THE

STATEMENTS OF FINANCIAL POSITIONJANUARY 31, 2019 AND 2018

EVANGELICAL LUTHERAN CHURCH IN AMERICA

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NET ASSETS WITHOUT DONOR RESTRICTIONS 2019 2018

NET REVENUES AND E PENSES

OTHER CHANGES IN NET ASSETS WITHOUTDONOR RESTRICTIONS

INCREASE IN NET ASSETS WITHOUTDONOR RESTRICTIONS

NET ASSETS WITH DONOR RESTRICTIONS

INCREASE DECREASE IN NET ASSETSWITH DONOR RESTRICTIONS

INCREASE IN NET ASSETS

NET ASSETS, Y

NET ASSETS, E Y

SIERRA PACIFIC SYNOD OF THEEVANGELICAL LUTHERAN CHURCH IN AMERICA

STATEMENTS OF ACTIVITIES YEARS ENDED JANUARY 31, 2019 AND 2018

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S M S A G T P M C A E

P A


STATEMENT OF FUNCTIONAL E PENSESYEAR ENDED JANUARY 31, 2019

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2019 2018CASH FLOWS FROM OPERATING ACTIVITIES

CASH FLOWS FROM INVESTING ACTIVITIES

DECREASE IN CASH AND CASH E UIVALENTS

CASH AND CASH E UIVALENTS, Y

CASH AND CASH E UIVALENTS, E Y

COMPOSITION OF CASH AND CASH E UIVALENTS


STATEMENTS OF CASH FLOWSYEARS ENDED JANUARY 31, 2019 AND 2018

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SIERRA PACIFIC SYNOD OF THE EVANGELICAL LUTHERAN CHURCH IN AMERICA

NOTES TO FINANCIAL STATEMENTS JANUARY 31, 2019 AND 2018

1 ORGANI ATION AND SIGNIFICANT ACCOUNTING POLICIES

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Presentation of Financial Statements of Not-for-Profit Entities

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2 LI UIDITY AND AVAILA ILITY OF RESOURCES

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3 NET ASSETS

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2019

2018

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PROPERTY FROM DIS ANDED CONGREGATIONS

2019

2018

2019 2018

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INVESTMENTS

2019

2018

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PROPERTY AND E UIPMENT

2019

2018

PENSION PLAN

8 OPERATING LEASES

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