Financial Report

The past six months have been exciting at Bethel. Though there were reductions in our FY04 expense budget, we made a bold commitment to go forward with the Welcome Zone Project. We collected over $75,000 in donations to the Visual Connection. We refinanced our mortgage of $358,000 from 7.125% to 6% and borrowed $400,000 at 6% from Thrivent Financial for Lutherans to fund the project. Most of the tasks are nearly completed, and our mission of becoming more Welcoming has begun.

There were many programs and expenses cut from our budget in the past two years. We have to look forward to incorporating them back. On a positive note, we have noticed a slow upward trend in our financial giving over the past year.

FY03 - The fiscal year 2002-2003 ended with a shortfall of $32,111. This meant we had to use some of the cash reserves of $79, 045. This reduced our reserves below the operation comfort level of $50,000. An appeal went out in October 2003 to build our reserves back. You have responded, and our reserves now stand at $57,153.

FY04 – When we last met in June 2003, we were faced with additional expense budget cuts, and we also set some challenging goals for our future. We had to reduce some staff hours. This cut by itself was insufficient. We made a tough decision to operate with a budget deficit of $14,000.

Our mid-year church financials show that we have ended with a net income of $12,000. Our income giving for the past six months has been below budget by $20,000. This shortage was more than offset by our under-spending in various categories. A major savings of about $18,000 occurred in the pastoral account when we did not have a senior pastor for over two months. Our ministry leads have also diligently managed their accounts.

Year-End Projection – We begin the next six months with a net income of $12,000. Our projected budgeted giving and expenses for the remaining six months (Jan 04 – Jun04) could end with a net income of -$9,347. At the January 13, 2004, meeting the council decided that no mid-year adjustments in the budget were necessary, except for a small financial recognition to the staff and some ministry lead training.

This means we could end the year with a near balanced budget. However, we cannot become complacent as we go forward. We have to continue with our pledges and keep a tight control on our expenses.

Eusebio Menezes

Financial Officer

January 2004