2021-22 Financial Recap
Sometimes, when we communicate about the church’s finances, we use terms that may not be familiar to everyone. One of the terms thrown out frequently is “fiscal year.” Per the IRS, a fiscal year is “12 consecutive months ending on the last day of any month except December.” Sunridge operates on a fiscal year rather than a calendar year (January – December) that begins in October and concludes in September. At the end of each fiscal year, I like to provide a recap demonstrating transparency and accountability to those who financially support what God is doing in and through Sunridge.
2021-22 Financial Recap
- Offerings for the 2021-22 Fiscal Year totaled $1,238,840, which is -$133,939 (10%) under the budgeted amount of $1,372,779. (This total does not include $56,286 designated to the capital improvement fund or $31,812 in rental income.)
- Spending for the 2021-22 Fiscal Year totaled $1,302,668, which is $70,101 (5%) under the budgeted amount of $1,372,779. (Spending includes all non-expense items.)
- Cash Flow for the 2021-22 fiscal year (total income: $1,238,109 less total spending: $1,302,668) is -$64,559.
- Sunridge remained steadfast in rebuilding the emergency fund, increasing it by $12,000 last fiscal year for a total of $175,119.
- We sent 30 first-time giver letters to people who financially invested in what God is doing at Sunridge for the first time in the 2021-22 fiscal year.
Growth and Capital Improvements
Despite the challenges faced this fiscal year, there are many positives that we can take away from the data. It’s exciting to report that our attendance grew in all three ministry areas: adult (5.2%), youth (didn’t meet last FY), and children (51%), compared to the previous fiscal year. And, while the cash decreased by $64,559 last fiscal year, the summary does not show we invested almost $157,000 in capital improvements in the 2021-2022 fiscal year:
- HVAC Unit: One of the two HVAC units in our Multi-Purpose Room failed and required replacing. We purchased and installed a new HVAC unit in December 2021 for $14,250.
- New Sound System: The project’s total cost is $107,242. On April 4, 2022, a down payment of $76,920 to order the equipment. Supply chain issues delayed the installation until October 2022 – the new fiscal year.
- Slurry the Upper Lot: In May 2022, Sunridge invested $10,030 to slurry and stripe the upper parking lot to prevent damage.
- Fire Alarm Retrofit: This project, mandated by the City of Temecula Fire Department, started pre-COVID and was delayed at many levels. On August 30, 2022, the project was complete, and we made the final payment of $49,471 to Progressive Technology.
- New Projectors: The cost to replace the failed projectors in the Worship Center totaled $6,317.
Financial Outlook for 2022-23
By using Key Performance Indicators (KPIs) such as Full-Time Equivalent (FTE) employee-to-congregation ratio and total compensation cost to total budget percentages, Sunridge recognized the need for structural changes. The 2022-23 budget employs strategic changes to build a structure to support growth. To accomplish our mission, the 2022-23 budget will:
- Hit the projected target of $1,307,332, a 4.8% decrease from the 2021-22 FY.
- Move the Sunridge FTE to congregation gap into a healthier range from 38:1 to 41:1.
- Lower the percentage of compensation to the total budget to 46%.
- Restructure key ministry areas:
- First, the family ministries team will report directly to the Lead Pastor and move from full-time, benefited employees to part-time without benefits.
- Second, a dedicated focus on a local reach strategy to bring new people to our church.
These strategic structural changes and a reduced budget put Sunridge in a solid position for healthy growth.
For those who generously, faithfully, and sacrificially support Sunridge financially – Thank you! If you have not taken the step of faith of trusting God with your finances and would like to join us in accomplishing our mission to help people find and follow Jesus, click on the link below. In his second letter to the church in Corinth, the Apostle Paul wrote, “Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously. Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver” (2 Corinthians 9:6-7). Let’s be a church that sows generously.