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Pastor's Report for 2007 Annual Financial
Report
(January 27, 2008)
 The Rev. Sharyl B. Peterson, Ph.D.,
Senior Minister
It’s been a remarkable year for our
church. While I was away on sabbatical (and I thank you again for your support
for that - it was a wonderful experience), our members did a fabulous job of
assuming leadership here, and not just maintaining status quo, but growing
programs, doing new outreach, and more. I know that sometimes folks here get
discouraged about this or that, but I say very sincerely, we have a huge amount
to be proud of!
It was a thrill to return, and within a month of coming back, celebrate with you
the burning of our Building Loan note from Cornerstone! The completion of our
building remodel and addition was a historic event for this congregation, as was
paying off the loan in substantially less than the five years we were allotted.
The project - and everyone's support of it with their treasures and their
energies - was truly an act of faithful response to what our God is calling our
church to do and to be.
You also give so faithfully to support both our church's operations and
missions. Many of our members pledge, and you faithfully pay those pledges,
along with your special gifts to the church. I know it's not "exciting" to pay
the gas-bill or to stripe the parking-lot, but they're both an important part of
our stewardship too, and your giving makes it possible for us to maintain a
lovely physical plant, and to employ our excellent staff.
I was also delighted to see not one, but four Mission Trees in our Gathering
Space during Advent, along with our food-filled Sukkoth booth, the kids' Blanket
Project blanket that was filled with coins, bills, and checks, your
contributions of salads, casseroles, cakes, and canned goods for Homeward Bound,
and the many other ways you have contributed to the way we care for others. We
are truly doing good work here, and living out our faith not just with words,
but with our very real commitments.
As we think about our proposed budget for 2008, let us continue to pray and to
listen for how our God is calling us to be faithful UCC folks in this place and
time.
TREASURER'S REPORT for 2007 Annual Financial Report
This will be my last Report as my tenure ends in May. One reason I accepted this
position in 2002 was to try to make the financial picture of our church more
obvious to the Council, Boards, and Members. Endowments, Trusts, and Memorials
were moved to separate investment accounts so they could be more easily tracked.
The Endowment Fund policy was established with the result being funds invested
with the United Church Foundation. To accountants, what I have done may appear
to be confusing but to others it is clearer.
Your suggestions are always welcome. Do not hesitate to speak up or ask
questions about any of the church’s finances and reporting.
This year, thanks to your extra giving in December, we had a surplus. This has
helped "bail out" the 2008 budget and also has given an opportunity to have more
of a cushion of cash in the bank.
Yours in Christ,
David Hoefer, Treasurer
To view the following FCUCC Financial
Documents, click on one of them:
Assets/Liabilities
December 31, 2007
FCC Trust Account
Building Reserve
Endowments
Legacy Circle
Memorial Funds
Memorial Fund Policy
Final Building Campaign Report
Endowment Fund
Resolution
ASSETS
Current Assets - December 31, 2007
Operating Fund - Bank of Colorado $ 26,342.51
Trust Fund - Bank of Colorado $ 17,120.29
Operating Money Market - A.G. Edwards $ 11,107.61
Trust Money Market - A.G. Edwards $ 12,451.73
Memorials Money Market - A.G. Edwards $ 16,497.09
Endowments - United Church Foundation
General Endowment (Market value) $162,569.44
Building Reserve - United Church Foundation (Market value) $ 38,069.52
Safeway Grocery Cards On Hand $ 3,296.25
Total Current Assets $287,454.44
Fixed Assets
Church Building & Property $3,688,000.00
TOTAL ASSETS $3,975,454.44
LIABILITIES
Long Term Liabilities $ 0.00
TOTAL LIABILITIES $ 0.00
TOTAL EQUITY $3,975,454.44
TOTAL LIABILITIES & EQUITY $3,975,454.44
Trust Account
The Trust Account holds specific funds that are not part of the
Operating Account and which can be carried over year to year. Examples are the
Finishing Touches Birthday Fund, Handbell Maintenance Fund, and the Bereavement
Fund. In recent years the funds of various organizations have been included
rather than each group's having separate checking accounts, including Men’s
Breakfast, Altar Guild, and Women’s Fellowship. Remaining funds from Fellowship
Supper Club also remain in the Trust Account.
The Trust Account also is used for Pass-Through or In/Out monies, such as One
Great Hour of Sharing and CROP. Some funds, like those earned in yard sales or
other events, are held until transferred to their intended purposes. Interest
earned from the General Endowment Fund that is earmarked annually for specific
purposes is distributed initially into the Trust Account and then allocated to
appropriate Trust or Operating Accounts. Examples are monies for camp
scholarships, the library, landscape improvement, and local or wider missions.
Some changes are being made to simplify the Trust Accounts. One change is: when
monies are earned or received for regular budget purposes, they will be
transferred to the Operating Account rather than be held in the Trust Account.
Some accounts have also been combined. Most of these changes will show in next
year’s Annual Report.
The Trust Funds Report, which follows on the next page, shows the major account
categories and names in 2007. Shown are incomes received during the year,
amounts dispersed, and balances remaining for 2008. Also within the Trust Fund
as of 12/31/07 is $5,205 in Prepaid Pledges for 2008, and these will be
transferred to the Operating Account in January 2008.
A complete list of all the Trust Funds in this Account is available from the
Treasurer.
TRUST ACCOUNT FUNDS
Account Name
Available Jan ‘07 Income
Disbursements Available Jan ‘08
1-Church Council
Altar Guild (Transferred to Trust 6/07)
0.00
810.27
496.88
313.39
Fellowship Supper Club
2,151.81
221.50
1,653.85
719.46
Men’s Breakfast
1,119.29
500.00
368.00
1,251.29
Women’s Fellowship
1,610.96
986.50
835.47
1,761.99
Bereavement
112.18
1,541.00
683.49
969.69
2-Board of Trustees
Building Campaign Residual Fund
0.00
2,443.25
481.63
1,961.62
Grocery Store Income
Albertson’s Fund
637.22
210.56
637.22
210.56
City Market Fund
634.00
559.00
634.00
559.00
Safeway Fund
648.56
772.50
648.56
772.50
Houser Trust (Endowment) Note 1
816.90
847.82
1,664.72
0.00
Special Funds
Finishing Touches Birthday Fund
1,957.27
4,180.44
2,124.41
4,013.30
Handbell Maintenance
152.36
250.00
402.36
0.00
Labyrinth (Canvas) Maintenance
290.00
290.00
Landscape & Beaut. Fund Note 2
25.00
9.00
34.00
0.00
Sound System/Hearing Assistance
250.00
214.98
35.02
3-Christian Education Board
Camps & Retreats (non-Endowment)
128.31
590.00
350.00
368.31
Christian Education Funds
1,160.44
144.00
282.71
1,021.73
Fund Raisers
0.00 1,058.64
1,058.64
0.00
La Foret Scholarships
Todd Carie Scholarship Fund
0.00
155.00
155.00
0.00
Edfast (Endowment)
227.60
72.68
300.28
Monroe Library Fund (Endowment)
760.07
315.15
110.83
964.39
Stained Glass Scholarship (Endow) 1,893.77
658.39
200.00
2,352.16
Youth Mission Fund
1,251.99
500.00
751.99
4-Mission & Outreach Board
CROP
0.00
156.00
156.00
0.00
FCUCC Mission Trips
833.86
833.86
Stained Glass Mission (Endowment) 727.86
658.39
11.66
1,374.59
Fund Raisers
704.00
1,333.00
2,037.00
0.00
Local Special Offerings
95.00
357.00
257.00
195.00
5-Deacons Board
20.00
210.00
230.00
6-Church Growth Board
Special Contributions (Yard Sale)
0.00
1,515.05
1,000.00
515.05
7-Fellowship Board
0.00
642.35
436.04
206.31
8-Pastoral & Personnel Accts.
Mitzvah Fund-Assistant Minister
75.00
200.00
141.61
133.39
Mitzvah Fund-Senior Minister
407.55
130.00
348.46
189.09
Note 1 Accumulated interest in the Houser Trust (Endowment) was placed
into
the
General Endowment Fund with Council approval.
Note 2 The Truman Parks Family Trust was placed into the A.G. Edwards
Memorial
(noted under
MEMORIAL FUNDS), and previous interest earned was transferred into
the Landscape
& Beautification Fund (as will be further annual interest).
With Council
approval, the principal of this Trust also may be used for major
landscape and
beautification projects.
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BUILDING RESERVE
In 1997 the Trustees voted to establish the Building Reserve Fund as a separate
account to hold monies that might be quickly needed for major building repairs.
This account was originally part of the Trust account but was moved to the
United Church Foundation (UCF) so it could gain greater earnings. The Building
Reserve Fund receives income from two sources: Interest from the Capital
Improvements portion of the General Endowment Fund (previously 1/3 of interest
from Stained Glass Endowment) and monthly Royalty Income from a portion of an
Encana gas well which was donated to the church. The Building Reserve is now in
a Moderate Balanced Fund at the UCF with 60% in stocks. Previously it was in a
Fixed-Income Fund. There were no expenditures from the Building Reserve in 2007.
Market Value of Building Reserve Fund Increased Withdrawals Market Value
January 1, 2007 December 31, 2007
$33,306 $4,763 $0 $38,070
Deposits included reinvested interest earned and monthly Encana income (except
for November's income to be deposited in January 2008).
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ENDOWMENTS (Click to see
Endowment
Fund
document below)
The Endowment Fund has been modified this year. There is now one Endowment fund,
The General Endowment Fund. All endowment monies in this fund are still invested
with the United Church Foundation, including the redistributed Stained Glass
Endowment, the Munro Library Fund, and Edfast LaForet Scholarships. The General
Endowment Fund now has five sub-categories, as noted below, with an explanation
of their purpose and how the funds may be used. Gifts to the Endowment Fund will
be spread between these sub-categories (20% to each) if not designated
otherwise.
Category 1. Christian Education. Grants may be made for special programs
for children, youth, and adults enabling them to grow in their understanding of
the Christian faith. Moneys may be used for the purposes of attending college
and seminary to prepare for a church-related vocation and for church camping,
retreats, and leadership conferences.
Category 2. Community Service and Outreach. Grants may be made for
programs and services through social service agencies, community action groups,
and ecumenical agencies relating to the spiritual, social, and economic needs of
persons in the community the Church serves.
Category 3. Wider Mission of the UCC. Grants may be made for the work of
the UCC in the USA and overseas in such areas as new church development,
professional leadership, educational ministries, evangelism, and world mission.
Category 4. Building Reserves. Grants may be made to provide for major
capital improvement of facilities, building programs, and debt reduction that
cannot be expected to be raised adequately by annual giving and capital campaign
efforts. These funds will be maintained in the UCF Building Reserve Fund noted
above until drawn upon for such purposes.
Category 5. Annual Church Program. In situations when annual giving does
not suffice to fulfill ministerial needs, income from the Endowment Fund may be
utilized for the annual operating budget approved by the congregation. Initial
funds that began this category were earmarked to help assure funding for the
Assistant Minister's salary. Other funds were later added.
The purposes of original designated endowments are still retained and
distributed within each sub-category. That is, the Munro Library endowment
interest and the Edfast LaForet Scholarship interest are available under
Christian Education. Stained Glass Endowment interest was spread into three
areas: Scholarship Funds, Building Reserve, and Mission Funds. These have now
been deposited into Christian Education, Capital Improvements, and Community
Service. Houser Trust Funds were divided equally into the five Categories. As
our General Endowment Fund grows, there will be an increase of interest into the
various subcategories. At the present time, 5% of all earnings are reinvested.
Another change in 2007 was a move of the Endowment from a fixed income fund to a
conservative balanced fund. The earnings may fluctuate more, but in the long
term they will better keep up with inflation through greater earnings.
UCF GENERAL ENDOWMENT FUND
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LEGACY CIRCLE
The Legacy Circle was
established this year. It is a part of the Endowment Fund that
recognizes those who have made a commitment to leave assets to the church upon
their death. It does not compete with our annual stewardship
drives or occasional capital campaigns. It does not ask for present
gifts to the Church, but rather for bequests that benefit the Church beyond
one's lifetime. It encourages planned giving with benefits to the giver
and the Church.
People who joined the
Legacy Circle in 2007 include:
Marion Broughton,
Bruce & Frances Crowell, Dorothy Evans, Don & Dorothy Everhart, Gilbert Gordon,
Donna Hochmuth, David & Nancy Hoefer, Irene Learn, Brian & Linda Mahoney, Rev.
Sharyl & Bob Peterson, and Janet Scheevel
MEMORIAL FUNDS (Click to see
Memorial Fund Policy below)
Memorial Funds are held separately from the other Trust Funds and are
transferred to a Money Market Account with A.G. Edwards after initially being
placed in the Trust Account. (Rounded to nearest dollar) :
1 Donations & Transfers: Residual Trust funds, Donations, Interest
Earned
2 Expenditures: Velma Bilger Memorial (Bench $2,000, Bereavement
Fund $375)
3 Designated Memorials:
Todd Carie La Foret
Scholarship: ($1,600 less $155 for 2007 scholarships) = $1,445
Helen Overdorf (for
retrival of church bell) = $510
Velma Bilger Fund Balance
(as requested, to be transferred into Undesignated in Jan 2008) = $1,150
Science & Faith Library
Resources ($100, used as designated in 2007 with minimal balance) = $7
Balance (to be remaining
after transfer of unallocated Designated funds to Undesignated funds in Jan
2008) = $1,955.
4 Truman Parks Family Trust: Part of the annual Interest Earned is
transferred to the Trust Landscape and Beautification account. As noted, the
principal of this trust also will be available, with Council approval, for
further major landscape and beautification projects in the future.
Donations to the Memorial Funds in 2007 were made in the memory of:
Bob Scheevel
Helen Overdorf
Eleanor & Larry Reed
Tom Elder
Betty Wubben
Harold Hamel
FINAL
BUILDING CAMPAIGN REPORT
TOTAL Income Received During Campaign
UCF Cornerstone Loan
Bequests $211,857
In 2007, $32,678 was sent to the UCC Cornerstone
Memorial Gifts $ 38,715
Fund and a final check in May paid off our building
Pledges/Donations $786,712
loan. These payments included $13,816 in Memorial
Other Income $ 32,908
Gifts in the names of the following: Tom Elder, Harold
Interest Income $ 66,430
Daniels, Jacqueline Pyle, Wes Edfast, Ruth Land,
Total Income $1,070806
Robert Broughton, and Eleanor & Larry Reed. Our
TOTAL Expense During Campaign
"Fun-Draiser" in January for the Building Fund also raised
Interest on Loan $ 38,405
$3,319. A worship service celebration was held in August
Total Expense $1,070,806
as the Treasurer burned the mortgage loan note!
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RESOLUTION CREATING
THE FIRST CONGREGATIONAL CHURCH
UNITED CHURCH OF CHRIST
of
GRAND JUNCTION, COLORADO
ENDOWMENT FUND
OUR PURPOSE
It is the purpose of this Church to be a community
of Christian love, freely committed to the search of God’s truth as expressed in
Christ’s ministry through Christian Fellowship, union in prayer, praise, and
worship, reaching out in caring service and mission; in all enabled by the
indwelling Holy Spirit. (FCC Constitution, Revised, May 23, 2004) [Click
here to view full text of the FCC Constitution for current revision.]
To help facilitate our Purpose, there is hereby
created the First Congregational Church Endowment Fund for the First
Congregational Church United Church of Christ of Grand Junction, Colorado.
PURPOSE:
The purpose of the fund is to provide a means whereby gifts to the church may be
held with income and/or principal used to fulfill the purposes of the church in
Christian ministry and mission. The Church in this construction means the First
Congregational Church; any of the ministries of the Rocky Mountain Conference of
the United Church of Christ; and any of the ministries of the United Church of
Christ, nationally and the world.
MANAGEMENT OF THE FUND:
Responsibility for investment and management of the Fund shall be
vested in the Board of Trustees subject to the direction of the Church Council
as prescribed by the by-laws of First Congregational Church. To assist the Board
of Trustees in the investment and management of the Fund, there will be created
a standing committee called the
Endowment and Financial Advisory Committee.
THE ENDOWMENT AND FINANCIAL ADVISORY COMMITTEE:
Hereafter known as the committee, this shall consist of five members,
all of whom shall be voting members of the First Congregational Church. The
Committee shall consist of the chairperson of the Board of Trustees, the Church
Treasurer, and three other members elected at large from the active membership
of the congregation. Except as herein limited, the term of each member elected
at large shall be three (3) years. Upon adoption of this resolution, the
congregation shall elect members of the Committee: One for a term of three (3)
years, one for a term of two (2) years, and one for a term of one (1) year.
Thereafter, at each annual meeting, the congregation shall elect one member for
a three (3) year term. No member shall serve more than two consecutive three (3)
year terms. After a lapse of one (1) year, former Committee members may be
re-elected. In the event of a vacancy on the Committee, the Church Council shall
appoint a member to fill the vacancy until the next annual meeting of the
congregation, at which time the congregation shall elect a member to fulfill the
term of the vacancy.
The Committee shall meet at least quarterly, or
more frequently as deemed by it in the best interest of the Fund.
A quorum shall consist of three members. A majority
present and voting shall carry any motion or resolution.
The Committee shall report on a quarterly basis to
the Board of Trustees.
The Committee will create specific categories for
distribution of income from endowment funds that are not restricted to specific
purposes.
The Senior Minister and the Moderator of the Church
Council shall be advisory members of the Committee. In addition to these two
individuals, the Committee may request other members of the congregation to
serve as advisory members.
SALE OF NON-CASH GIFTS (STOCKS, LAND. ETC.)
IMMEDIATELY VS. INDEFINITE HOLDING:
It
is preferred all certificates of stock, bonds, personal or real property, etc.
accepted by the Committee as gifts to the Endowment Fund, be liquidated and
proceeds deposited as close to the date of the gift as possible; however, the
Committee reserves the right to evaluate each gift for its long-term investment
value rather than immediate sale.
TRANSFER OF FUNDS FOR INVESTMENT PURPOSES:
The principal of gifts, devises, and bequests received and accepted by The
Endowment Fund, shall be transferred to the United Church of Christ Foundation
or a local depository for investment and management purposes. At the direction
of the Board of Trustees, all such funds shall be returned to the local Church
for investment and management purposes.
DISTRIBUTION OF INCOME:
The Committee shall determine what is principal; and income according to
accepted accounting procedures. Income received from the Fund shall be
distributed as follows: In accordance with the direction of the donor, or, if
undesignated, according to the decision of the Board of Trustees on a year-to-
year basis. No income received from the Fund shall be used to pay ongoing
operating expenses (i.e. utilities, salaries, maintenance, etc.) unless
designated or permitted by the donor. In order to maintain the value of the
principal with regard to inflation, the Committee will determine appropriate
procedures to maintain the value of the principal. As a minimum, an amount equal
to 5% of the annual income shall be returned to the principal.
DISTRIBUTION OF PRINCIPAL:
The principal of all gifts, devises, and bequests received and accepted by The
Endowment Committee of First Congregational Church, shall remain untouched and
shall not be withdrawn from Endowment Funds except as follows:
1. In
accordance with the direction of the donor;
or
2. If
undesignated by the donor, in very unusual circumstances, up to 25% of the
principal of said Endowment Funds may be withdrawn from the Endowment Fund and
expended, after obtaining approval from all of the following for the
withdrawal and expenditure:
a.
Majority vote approval by the full Committee;
b.
Majority vote approval by the full Board of Trustees;
c. A
four-fifths vote approval of the full Church Council, and
d. A
two-thirds vote approval of the active membership of the Congregation.
POWERS AND DUTIES OF THE ENDOWMENT AND FINANCIAL
ADVISORY COMMITTEE:
The Committee shall
have the following powers and duties pertaining to the Endowment Fund:
1. To promote giving to the Fund.
2. To recommend to the Board of Trustees whether to
accept or reject any gift, bequest, or devise.
3. To investment and management the Fund, which
shall include: Proper acknowledgment of the gift; payment of local, state and
federal taxes and fees when applicable; keeping a record of donors and gifts;
recording receipt and expenditures from the Fund; distributing income; and
maintaining a record of assets in the Fund.
4. To follow directions of the donor in the use of
principal and income.
5. To recommend to the Board of Trustees the use of
the undesignated income.
6. To
present to the congregation at its annual meeting, a full and completed
account of the administration of the Fund during the preceding years.
7. In the event that the services of the United
Church of Christ Foundation are not used for investment and management purposes, the
Committee shall:
a. Provide a detailed list of all trusts in which
the local Church is a beneficiary,
specifying where and how funds are invested and in
what matter the income there from is expended or applied.
b. Maintain a reasonable balance in investing among
security, potential for growth, and income.
c. Avoid any conflict of interest between
management and investment of the Fund and personal interests of the Trustees.
FREEDOM
TO EMPLOY COUNSEL:
The Board of Trustees, at its discretion,
is free to employ counsel in the management and investment of the Fund that may
include but not be limited to legal advice, help of a Certified Public
Accountant, or guidance from investment counsel.
DISPOSITION AND TRANSFER OF FUND:
If, at any time, the First Congregational Church be lawfully merged or
consolidated with any other church, all the provisions thereof in respect to the
Endowment Fund shall be deemed to have been made in behalf of the merged or
consolidated Church which shall be entitled to receive all the benefits of said
Endowment Fund and shall be obligated to administer the same in all respects and
in accordance with the terms thereof.
In the event of the dissolution of the First
Congregational Church, the Rocky Mountain Conference of the United Church of
Christ shall receive the benefits of said Endowment and shall be obligated to
administer the same in all respect and in accordance with the terms thereof.
AMENDMENTS:
The Church Council may amend this resolution by a majority vote of the full duly
called Church Council according to the by-laws of the First Congregational
Church.
ADOPTION:
This resolution, recommended by the Board of Trustees, is hereby adopted.
First Congregational Church UCC
By
__________________________
______________________________________________
Clerk Moderator
Dated this day, October 27, 2002.
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MEMORIAL
FUND POLICY
October 2003 (Revised November 2007)
The primary purpose of the Memorial Fund policy is
to establish a method for administering and allocating special designated and
undesignated (also known as restricted and unrestricted), non-budgeted gifts to
be used by and for The Church.
1. Receipt of Funds. All monies and real or personal property
received or designated for the Memorial Fund from its members, or from other
individuals or entities, shall be accepted by The Endowment and Financial
Advisory Committee (The Committee), subject to the following:
a. Non-budgeted Special Needs: Donors
who desire to specifically designate Memorial Gifts shall be encouraged, but
not required, to designate such gifts to a list of special needs and
opportunities that are beyond the reach of the Church’s annual budget. The
Committee shall, subject to the Trustees’ approval, establish and annually
review this list of special needs and opportunities.
b. Authority to Refuse Donations: Memorial Fund donations may be
made by any person, persons, or entity, but The Committee, subject to
Trustees’ approval, may refuse to accept as a donation, any item of property
or monetary donation which it deems inadvisable or improper to accept due to
the type of property or the terms and/or restrictions of the donation or for
any other reason.
2. Designated. A Memorial Gift,
whether in the form of money or other property (real or personal), specifically
designated in writing by the donor(s) to be used or expended solely for a
particular purpose or purchase, shall be used and expended solely in accordance
with the specific designation, subject to the requirements above. If the gift is
to be administered over a period of time exceeding one year from the date of the
gift, The Committee shall approve, in writing, a plan of administration for the
gift. The plan shall include, without limitation, specifications as to the use
of principal and/or income. Designated Memorial gifts should be greater than
$100; however, gifts may be combined if the designation is on the list of
special needs and opportunities approved by the Trustees. Gift designation
should occur within three months of the donation.
3. Undesignated. A Memorial Gift, whether in the form of money or
other property (real or personal), for which the donor(s) does not specifically
designate, in writing or otherwise, a particular purpose or purchase, shall be
placed in the general or unrestricted Memorial Fund.
4. Use of Memorial Fund. Gifts allocated to the Memorial Fund for
designated purposes shall be administered and expended in accordance with the
designated purpose or in accordance with the plan of administration adopted by
The Committee. Gifts allocated to the Memorial Fund for undesignated purposes
may be expended for any purpose approved by the Trustees upon recommendation of
The Committee. Designated fund remainders less than $100 will be placed in the
undesignated fund. Remainders greater than $100 may be placed in undesignated
funds upon the approval of the donor.
5. Other Charities. The Memorial Fund may accept and administer
gifts designated for other charities. There may be a fee charged for the
administration of the fund.
6. Investment Philosophy. Memorial Funds will be accounted
separately from other Church funds. Funds will be invested to achieve
competitive returns without undue volatility. A balanced or growth and income
type of fund would be preferred (but not limited to). A separate checking
account may be used for operating the Memorial Fund. Interest received will
normally be
distributed to the undesignated Memorials.
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