Sacred Heart Parish Fiscal Year 2014 State of the Parish Report: Being Good Stewards of God s Many Blessings

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1 THE BOTTOM LINE A message from Fr. Steve Lanza Being relatively new here, I do not have the kind of grasp on this report that a long-time pastor would have. I cannot compare from one year to the next, other than what I see here. Nor can I appreciate a trend over a handful of years. All of that I could see on paper, but I wouldn t know the backstory or the context; for that I would have had to have been here. Here is what I do know. This is a relatively small parish. And yet this small parish engages in an enormous outreach, helping those in need. You can see the financial picture of that social justice outreach on page 7 of this report. Of course, that s only the reporting of the charitable collections that have been taken up and disbursed. Those figures do not tell the story of those involved in mission trips, tutoring, lending a hand at food pantries and other hands on ministry. Many parishes in the Archdiocese are much larger than Sacred Heart and do so much less. All of our efforts to get into the world and make a difference for the good are appreciated by the recipients of such generosity. While our very reason for being a parish is to bring the Good News of Jesus to people beyond the confines of Sacred Heart, at the same time, the parish itself has financial needs. Ministries require funding and the ordinary maintenance and upkeep also require funding. Thus, it is important to note that we must continue to remember the financial needs of Sacred Heart. That s the bottom line. Sacred Heart parishioners are generous. Generous to their parish. Generous in serving the needs of others beyond the parish. May God continue to bless us and may we share those blessings with others. Father Steve SACRED HEART CHURCH We are a people with heart connected to one another and the world through the heart of Jesus. FACTS AND FIGURES FY 2014 Children FINANCIAL HIGHLIGHTS Adults Baptisms 32 0 Received into the Faith 0 0 First Communions 74 0 Confirmations Marriages N/A 2 Funerals 0 12 FY 2014 FY 2013 School Enrollment Religious Ed Enrollment October Count We are fortunate to have realized a net operating surplus, while at the same time, being able to reserve some donations for contingencies, a feat particularly important given our aging campus buildings. We completed several significant capital projects during the year, including new church doors and entrance pavers, a school door security system and school drainage system. Our outreach ministries continue to flourish, and our parishioners are very generous.

2 Page 2 of 8 Page 2 of 8 NEW AND NOTABLE IN MINISTRY Fiscal Year On July 1, 2014, we welcomed Father Steven Lanza as the 6th pastor of. We bid farewell to Father Bob Heidenreich, who retired effective June 30. Religious Education (reported by Sr. Luanne Wilhelm) In an effort to be more welcoming and to reach out to new families in the Sacred Heart Religious Education program, the R.E. Board hosted a Newcomers Coffee in the rectory dining room. Music (reported by Todd Gresick) Members of the Sacred Heart Music Ministry combined with the choir from St. Mary Church in Evanston to present a Service of Lessons and Carols celebrating God s Gift of Creation. The event took place at Sacred Heart on Friday, June 6 and at St. Mary church on Sunday, June 8. Liturgy (reported by Fr. Kisaka) We thank God for the many gifts He has given each one of us. Last year, we trained nine new servers, five new Eucharistic ministers and three new lectors. Youth Ministry (reported by Carol Nowatzke) Our 2014 summer service trip took fifteen teens and three adults to the reservation at Red Lake, Minnesota. This trip was scheduled in place of our every-other-year Haiti trip, which was cancelled for safety reasons. The teens got to work with kids, the elderly, and on individual homes. Additionally, we expanded our Jr. High ministry to twice-monthly activities. School (reported by Sr. Kathleen Donnelly) The school year opened with a newly renovated space, the Collaborative Learning Center, which offers several hubs of activities available to a wide-range of grade levels. One area has round tables with MacBooks which provide access to online learning resources and support the creation of multimedia projects. A second area is the green room which allows students to produce high quality videos. A third area includes a flexible working space with mobile tables and chairs, and an HDTV and Apple TV which allow students to mirror devices while working together in small groups. We continued to expand ipad usage to 1:1 in Grade 4. Students in grades 1 through 4 have daily access to ipads. The students in grades 5 through 8 enjoy a 1:1 device (either ipads or MacBooks) environment which enables us to choose academic programs that are online. This particular year the students in grades 1 through 5 were introduced to online math support as part of the new math series, Math Expressions. This is in addition to the online reading and science programs. Community Life (reported by Judy Pyke) We hosted several speakers during the past year with a special emphasis on the Archdiocesan Strategic Pastoral Plan s focus on Strong Catholic Parents. At our Lenten Mission, featuring Terry Nelson Johnson, we had our highest attendance (80 people) in many, many years. We conducted small group discussions using Fr. Barron s Catholicism Series on the New Evangelization. Our Respect Life ministry hosted their first Mass for Life and welcomed Alveda King, niece of Dr. Martin Luther King, who spoke about the value of human life from a civil rights point of view. Outreach (reported by Judy Pyke) In an effort to establish more interaction between Sacred Heart and St. Columbanus parishioners, we held the first annual Sacred Heart/St. Columbanus 8th grade Basketball Tournament. After our teams played each other, we gathered together for Mass and dinner. After dinner, each 8th-grader was recognized, announced the high school they would attend, and presented their parents with a rose. It was a great event, which we plan to celebrate annually. ADDITIONAL HIGHLIGHTS In the spirit of Msgr. Reynold Hillenbrand, Sacred Heart reaffirms our commitment to Social Outreach, as evidenced by our strong sharing parish relationships with St. Columbanus and St. Jean Baptiste in Haiti, as well as support of Fr. Paul s ministries in Sri Lanka and Fr. Kiguta s school in Tanzania. Our parishioners prepare and serve meals at A Just Harvest community kitchen on a regular basis. We continue our community-building efforts, by once again hosting St. Patrick s Day and Oktoberfest events, both of which were very successful in bringing together not only our Sacred Heart parishioners, but the broader community as well. The revitalized Men s Club coordinated a number of events, including a speaker series, a St. Columbanus Christmas food drive, a pancake breakfast for nearly 700 families, a clean-up and repair day at A Just Harvest food pantry, a 2-day silent retreat, a March Madness pub crawl and a bourbon tasting with Fr. Steve. We hosted a number of other events for parishioners, including Advent by Candlelight, the Busy Person s Retreat for Advent, our weekly prayer group (which has been meeting for 40 years!), Elizabeth Ministry rosaries and meals for moms in need of help from the parish. We hosted our second annual Ministry Fair to encourage parishioners to participate in various ministries. We are able to offer financial assistance to our own parishioners via the Sarto Fund, which we periodically replenish by requesting donations for this specific fund.

3 Page 3 of 8 Page 3 of 8 Profit and Loss Statement (figures rounded to nearest dollar) CHURCH OPERATING REVENUE 7/1/13 6/30/14 7/1/12 6/30/13 Variance Sunday Collections Online 1 $187,419 $193,214 ($5,795) Sunday Collections - In Pew 2 744, ,107 64,711 Christmas Collection 220, , Easter Collection 59,455 57,244 2,211 Founder s Day 8,835 8, Other Revenues 3 28,971 36,461 (7,490) Total Revenue $1,249,519 $1,194,707 $54,812 CHURCH OPERATING EXPENSE 7/1/13 6/30/14 7/1/12 6/30/13 Variance Salaries & Benefits 4 $560,830 $534,673 $26,157 School Subsidy 5 200, , Religious Education Subsidy 6 30,828 23,385 7,443 Utilities 7 73,583 63,407 10,176 Maintenance 8 41,548 33,667 7,881 Liturgical Supplies 36,491 33,186 3,305 Archdiocesan Assessment & Insurance 205, , Administrative 68,881 64,602 4,279 Miscellaneous 32,162 37,509 (5,347) Total Expense $1,249,512 $1,194,601 $54,911 NET OPERATING SURPLUS $7 $106 $99 See financial statement footnotes on page 6.

4 Page 4 of 8 Profit and Loss Statement (figures rounded to nearest dollar) SCHOOL OPERATING REVENUE 7/1/13 6/30/14 7/1/12 6/30/13 Variance Tuition & Fees 9 $1,598,990 $1,666,595 ($67,605) Endowment Withdrawal ,061 54,385 62,676 Nite Lites Net Income , ,875 ( 46,605) Other Income 25,819 41,160 (15,341) Total Revenue $1,959,140 $2,026,015 ($66,875) SCHOOL OPERATING EXPENSE 7/1/13 6/30/14 7/1/12 6/30/13 Variance Salaries & Benefits 12 $1,778,046 $1,812,805 ($34,759) Administrative 13 26,105 45,581 (19,476) Books, Supplies, & Technology 14 85, ,677 (49,065) Utilities 15 71,914 48,495 23,419 Maintenance 69,628 63,681 5,947 Insurance 49,167 50,334 (1,167) Miscellaneous 78,787 70,442 8,345 Total Expense $2,159,259 $2,226,015 ($66,756) OPERATING DEFICIT ($200,119) ($200,000) ($119) SUBSIDY FROM CHURCH $200,119 $200,000 $119 FINAL OPERATING RESULTS $0 $0 $0 See financial statement footnotes on page 6.

5 Page 5 of 8 Profit and Loss Statement (figures rounded to nearest dollar) RELIGIOUS EDUCATION OPERATING REVENUE 7/1/13 6/30/14 7/1/12 6/30/13 Variance Tuition & Fees $134,149 $132,883 $1,266 Total Revenue $134,149 $132,883 $1,266 RELIGIOUS EDUCATION OPERATING EXPENSE 7/1/13 6/30/14 7/1/12 6/30/13 Variance Salaries & Benefits $118,824 $114,334 $4,490 Administrative 5,939 5, Books & Supplies 14,856 14, Utilities 4,866 1,365 3,501 Maintenance 9,555 8, Insurance 4,476 3, Miscellaneous 6,461 8,399 (1,938) Total Expense $164,977 $156,268 $8,709 OPERATING DEFICIT ($30,828) ($23,385) ($7,443) SUBSIDY FROM CHURCH $30,828 $23,385 $7,443 FINAL OPERATING RESULTS $0 $0 $0 See financial statement footnotes on page 6.

6 Page 6 of 8 CHURCH FINANCIALS Financial Statement Footnotes 1) Sunday Collections On-line On-line Sunday collections, as a percentage of total collections, were 20% and 22%, respectively, for FY2014 and FY2013. Financial experts suggest that a level of 30% creates a healthy financial environment. 2) Sunday Collections In Pew Increase from FY 2013 to FY2014, represents $77K of income recognition from significant anonymous donations. The remainder of these anonymous donations have been reserved on the balance sheet for deferred maintenance needs. 3) Other Revenues Includes stole fees, mass stipends, bulletin advertisement revenues, interest income, and facility rental income. Although these revenues declined from FY2013 to FY 2014, there were no specific revenue source(s) contributing to the decline. 4) Salaries and Benefits The increase of $26K from FY 2013 to FY2014 is attributable to the annual 2.5% increase in salaries that is suggested by the Archdiocese, combined with costs associated with having frequent guest presiders ($14,365 in FY 2014). 5) School Subsidy The $200K subsidy is an amount agreed to by the Finance Council and the School Board. In recent years, the school subsidy amount has not changed. 6) Religious Ed Subsidy Although the subsidy increased from FY2013 to FY2014, the actual subsidy was less than the budgeted amount of $33K. The subsidy amount is an amount agreed to by the Finance Council and the Religious Education Board. 7) Utilities The increase of $10K is due to excess heating costs associated with the extremely cold winter of ) Maintenance The increase in maintenance costs is due to unanticipated snowplowing costs, unplanned tree removal, as well as insurance deductibles associated with two floods in the parish center that resulted from frozen pipes. SCHOOL FINANCIALS 9) Tuition and Fees The variance reflects a decline in enrollment from 314 students in FY 2013 to 298 students in FY ) Endowment Withdrawal The withdrawal each year is capped at an amount set forth by the terms of the Endowment Agreement (approximately $150,000). In FY 2013, we were fortunate to only require a fraction of the allowable withdrawal. In FY 2014, with the reduction in enrollment, we were forced to withdraw $117K, still less that the maximum allowed. 11) Nite Lites Income FY 2013 was an anomaly in terms of this fundraiser, with the net income of $264K. FY 2014 net income of $217K is more consistent with prior years. 12) Salaries & Benefits The decline from FY 2013 to FY2014 is primarily due to the elimination of the assistant principal position. 13) Administrative The decline in this expense between fiscal years is primarily attributable to reduced software costs. FY 2013 costs are higher as they included a three year security software package. 14) Books, Supplies & Technology The larger expenditure for computer purchases in FY 2013 compared to FY 2014 is due primarily to the class size of incoming 6th grade class in FY 2013 and the one-to-one lap top program. This is the largest class at SHS and had approximately 43 students. The following year s incoming 6th grade class had approximately 27 students, requiring fewer laptops to be purchased for the one-toone lap top program. 15) Utilities The increase is due to excess heating costs associated with the extremely cold winter of , as well as higher-than-expected internet costs. RELIGIOUS EDUCATION FINANCIALS No significant year-to year changes.

7 Page 7 of 8 Sacred Heart parishioners generously support the ministries of the Catholic Church around the world! ARCHDIOCESAN REQUIRED COLLECTIONS 7/1/13-6/30/14 7/1/12-6/30/13 Priests Retirement $3,090 $4,351 Campaign for Human Development 1,960 2,683 Catholic Charities 4,582 3,073 Peter s Pence 1, Propagation of the Faith Retired Religious 2,206 3,085 Seminary Collection 969 1,175 Summer Mission Appeal 5,341 2,316 Churches in Central Europe Annual Catholic Appeal 56,168 58,780 Total Archdiocesan Required Collections $77,529 $77,557 OTHER CHARITABLE COLLECTIONS 7/1/13-6/30/14 7/1/12-6/30/13 COCE-Tanzania $3,235 $5,975 Fr. Paul Foundation * St. John Baptiste Haiti 135,683 79,825 St. Columbanus Parish 30,080 34,746 Word on Fire ** Typhoon Haiyan Phillippines ** Kenwood Soup Kitchen 2,770 2,742 Jordan Backpack 2,160 2,180 Total Other Charitable Collections $176,508 $125,668 * No separate collections in Fiscal 2014 ** No Separate collection in Fiscal 2013

8 Page 8 of 8 ADDITIONAL FINANCIAL INFORMATION June 30, 2014 June 30, 2013 Cash-Checking $1,200,438 $1,182,080 School Endowment Fund Market Value 3,263,256 3,024,084 School Endowment Fund Cost Basis 2,626,201 2,551,333 Operating Reserves 1 421, ,734 1) Represents significant donations set aside to provide for deferred maintenance needs. FISCAL 2014 CAPITAL PROJECTS School Roof Drain System $29,370 School Door Security System 29,441 Church Entrance Doors 56,990 Church Entrance Pavers 8,320