1 Introduction

This report on the financial position of the United Methodist Church of South Australia (“Church”) covering the period from 30 June 2021 to 27 June 2022 has been prepared to meet the requirements of the Book of Discipline. This report should not be relied upon for any other purpose than the information of the Church Council and Finance Committee. The Treasurer’s person or office is not responsible for the consequences of any other use. This report should be considered in its entirety and not distributed in parts.

The Church is grateful for the participation of all congregants in the affairs of the Church’s administration particularly by their prayers, presence, gifts, service and witness as enshrined in the Book of Discipline.

The Church is in a sound financial position after allowing for the various reserves, budgetary allocation and expected cashflows to 30 June 2022 (excluding historical amounts that are considered as payable by the Mission Area in respect of area assessments).

2 Summary of results

The Church’s financial position improved significantly over the past 4 years as shown by the increase in annual net cashflows from 2019 to 2021 with the most significant increase taking place between the 2019 and 2020 financial years where the net cashflows increased from -$11,000 to $12,000. The improvement is also reflected in the steady increase in the Church bank balance from $31,000 at 30 June 2019 to $57,000 at 30 June 2021.

The improvement in the Church’s financial position was a result of:

  • Improved timing of transactions
  • Documentation and standardisation of policies and procedures relating to the disbursement of funds
  • Principled and consistent administration of policies and procedures regarding disbursement of funds, especially with respect to Church and Society, Evangelism and SPPR expenses
  • Establishment and maintenance of various reserves
  • The resolution by Council to pay quarterly area assessments of $5,000

further enhanced by:

  • A significant decrease in SPPR expenses associated with the Pastors’ periodic visits to Adelaide resulting from a combination of the lack of a substantive local pastor; and interstate travel restrictions imposed in response to the COVID-19 pandemic.

The improved financial position of the Church provides for the determination of a realistic budgetary allocation to all key Committees for the financial year ending 30 June 2022. This will afford the various committees to be more flexible in performing their respective functions autonomously without the express need to approach the Finance committee for approval (except for cases where their expenses exceed their allocation).

It is important to note that the results discussed above do not allow for the historical amounts that are considered as payable by the Mission Area in respect of area assessments.

3 Bank reconciliation

The bank balance as at 27 June 2022 amounted to $70,600.

A reconciliation of the Church bank balance from 30 June 2021 to 27 June 2022 is shown in the table below.

Table 3.1 Bank reconciliation
Description Amount
Opening Bank Balance 57260.04
Net Cashflows 13331.94
Closing Bank Balance 70591.98

4 Financial position

After allowing for the various funds earmarked for specific initiatives, the net assets of the church are in a slight surplus of $900. The net asset balance above does not allow for the historical amounts in excess of $30,000 owed to the Mission Area in respect of unpaid area assessment allocations.

A summary of the financial position of the Church as at 27 June 2022 is shown in the table below.

Table 4.1 Financial position
Description Amount
Available funds 70591.98
Building Fund -38228.40
Contingency Reserve Fund -10000.00
Budget -6500.00
UMYF Advisors Fund -150.00
SPPR -9000.00
Website maintenance -360.00
COVID provisions -500.00
Other -5000.00
Net Balance 853.58