Hey Folks. Time for another Budget and Finance update. As you might remember, we were set for our annual business meeting on the budget when COVID 19 interrupted our plans. I informed you at that time that this year’s budget is about $19,000 less than last year’s budget. I also told you that we will not implement the new budget until we can vote on it. Instead, we will continue with the numbers from last year’s budget. The biggest problem this creates is some pay raises we had recommended cannot be implemented until we vote on the budget. Our current thought is to implement the pay raises effective 1 April and provide back pay when the budget is approved.
We finished the 2019-2020 budget year in pretty good shape. We did not quite meet our budget, finishing at 96% of projected revenues. Thanks to the diligent efforts of our staff, expenditures were less than receipts and we finished the year with a surplus of about $27,000. Thank you for your faithful giving.
With the uncertainties of the COVID 19 situation, the church implemented a reduced schedule. Unfortunately, reduced hours meant a reduction in pay for some of the church staff. At about the same time, we became aware of an opportunity to participate in the Payroll Protection Program (PPP) enacted by Congress. The program provides a loan meant to cover the cost of salaries and utilities for a period of eight weeks. Money from the PPP spent on those categories converts to a grant with no payback required. We verified that accepting the PPP loan created no governmental restrictions on FBC’s ability to operate according to the Lord’s direction. After consultation with the ministers and church leaders, we applied for the loan and qualified for $130,000. We accepted the loan and were able to pay the staff for the hours we had cut.
We are still trusting the Lord to provide for the needs of His church. We just didn’t want to slam the door in His face when He was trying to provide. We will spend the PPP money according to the dictates of the program and we may have some money left at the end of the time frame. If so, we can decide to pay it back immediately, or over time as a low interest loan. If it turns out the loan was not needed, we will praise the Lord and use the money for His glory.
Financially, the near future is still unclear. We had a decent April. We were well short of budget projections, but had enough to meet our needs, even without the PPP money. Receipts were about $2000 more than expenditures. So far May has looked a little better. God is faithful and we will do our best to be faithful stewards of His provisions.