THE BOTTOM LINE A message from Fr. Steve Lanza As good stewards we embrace the Sacred Heart of Jesus, make disciples, and serve others. Praise God from whom all blessings flow. That is a line from one of the hymns we sing. Even though we don t sing it every Sunday, we think it and pray it every time we gather. The very word Eucharist, which comes from the Greek, means thanksgiving. All the good that we have and experience in life comes from God. He blesses us abundantly. We are expected by God to do something with those blessings. Jesus tells us to be good stewards of God s blessings. Who is a Christian steward? One who receives God s gifts gratefully, cherishes and tends them in a responsible and accountable manner, shares them in justice and love with others, and returns them with increase to the Lord. Christ invites every baptized person to pursue discipleship and stewardship. This is an individual calling and a communal calling. Individuals are supported and strengthened by the Church community so that they can be the best disciples and stewards they are meant to be. FACTS AND FIGURES FY 2015 Children Adults Baptisms 36 0 Received into the Faith 0 0 First Communions 62 0 Confirmations 95 0 Marriages N/A 7 Funerals 0 24 FY 2015 FY 2014 School Enrollment 258 298 Religious Ed Enrollment 404 474 October Count 882 915 FINANCIAL HIGHLIGHTS Like each individual member, our parish strives to practice good stewardship. One aspect of good stewardship for parishes is accountability, an accounting to the Archdiocese and an accounting to its parishioners. Each year we file an annual report with the Archdiocese. Each year we publish this State of the Parish report to you, our parishioners. May God continue to bless us with many gifts! May we share those gifts with one another and those in need, that God s kingdom of justice, peace and love may come to fruition! Father Steve In April 2015, we projected an operating budget shortfall of $200,000. In answer to our appeal, you, our generous parishioners, contributed $167,000 to Sacred Heart. That, combined with lower-than-expected expenses, and better than expected Religious Education results enabled us to successfully eliminate our projected shortfall for the fiscal year. We are grateful. Thanks to the incredible generosity of a number of parishioners, the rectory kitchen and pastor s quarters were beautifully renovated at zero cost to the parish. Outreach ministries to St. Columbanus, Haiti, Tanzania and Sri Lanka continue to flourish.
Page 2 of 8 Page 2 of 8 NEW AND NOTABLE IN MINISTRY Fiscal Year 2014-2015 We bid farewell to retiring Sister Kathleen Donnelly, Sacred Heart School Principal, and Sister Luanne Wilhelm, Sacred Heart Religious Education Director. We thanked them for their many years of service to Sacred Heart and we wish them all the best. We congratulated Father Kisaka Nyache who received his new assignment as Associate Pastor of St. Ailbe in Chicago. We welcomed Father Dean Semmer as our new Associate Pastor. Religious Education (reported by Sue Lehocky, Director) Our religious education board approved a plan to expand and update the religious education curriculum in the coming year. I, along with Carol Nowatzke, our Youth/Religious Education minister will be working closely to craft an innovative and creative approach to religious formation that relies less on textbooks and curricula, and more on building a strong personal relationship with Jesus Christ in our Catholic tradition. Music (reported by Todd Gresick) On the First Sunday of Advent 2014, ioners had the new experience of using seasonal booklets which contain all music, prayers and responses in the liturgy. These booklets are published every four to six weeks, depending on the season. They have facilitated the worship experience, eliminating the need for worshippers to juggle between several different books or pamphlets. Liturgy (reported by Kathy Janega) We have instituted several procedural changes to the celebration of the Mass, including replacing the combined Missal and Music Issue (hymnal) with seasonal worship aid booklets containing the songs, psalm refrains, Gospel acclamations and prayer responses for the weekend liturgies. We relocated the servers seating, built a new cantor stand, and purchased a new processional cross and a taller Paschal candle and stand. We trained 13 new altar servers, and made a training video for altar servers and other liturgical ministers. Youth Ministry (reported by Carol Nowatzke) Several of our high school students are involved in liturgical ministries, serving as ushers, greeters, lectors, Eucharistic ministers, and musicians. Several students attended the Archdiocese s All-Night Ski Trip in January with 800 other teens from the Archdiocese of Chicago, We honored twelve students at the Vicariate II Youth Leadership Awards for their service in liturgical ministries, religious education, and outstanding service. Three gave reflections at the banquet, outlining their ministry and what it means to them. School (reported by Kristen Fink) We opened the 2015-2016 school year with an enhanced security system as well as a brand new library space and an adjacent learning lab. In an effort to update our library, the entire space was gutted, renovated and enlarged. The former religious education space is now being utilized as a learning lab, staffed by our reading and math specialists. Led by our learning specialist, these three members of our student services team support both our struggling students as well as those needing more challenge. We are also offering an after school homework club Monday through Thursday to give junior high students an opportunity to complete their homework at school with teacher support. Teachers are meeting weekly in grade level teams to look at student data, both test scores and classroom work, to inform curricular decisions. To further guide our instruction, we are developing curriculum maps to outline the scope and sequence of each subject and grade. 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 the Year of Sacraments, including Jeanne Bishop, Terry Nelson Johnson, and Father McGrath. We conducted several small group discussions on Pope Francis Joy of the Gospel and Bishop Robert Barron s series on the Eucharist. We held presentations on the Gospel of Mark and the enhancements to our liturgy. We initiated a reflection group during Lent, which evolved into a weekly scripture study session which examines the coming Sunday readings. Outreach (reported by Judy Pyke) Our relationships with St. Columbanus and A Just Harvest Community Kitchen continue to flourish. Over 35 parishioners participated in the Thanksgiving food distribution at St. Columbanus and welcomed Archbishop Cupich to Chicago. Participation in our Christmas Sharing program with St. Columbanus continues to rise. On the third Sunday of each month, a group of Sacred Heart parishioners prepare the meal to be served at A Just Harvest, while another group serves the meal. We continue our community-building efforts, by once again hosting the St. Patrick s Day and Oktoberfest events, both of which were successful in bringing together our parishioners and community members. We continue to host Advent by Candlelight, which draws together over 250 women from our parish to celebrate the season of Advent. Our weekly prayer group is going strong in its 41st year; and our Elizabeth Ministry continues to care for mothers during the child-bearing years and gathers for regular rosaries.
Page 3 of 8 Page 3 of 8 Revenue and Expense Statement (figures rounded to nearest dollar) CHURCH OPERATING REVENUE 7/1/14 6/30/15 7/1/13 6/30/14 Variance Sunday Collections Online 1 $186,910 $187,419 ($509) Sunday Collections - In Pew 2 658,987 744,818 (85,831) Christmas Collection 220,520 220,021 499 Easter Collection 62,084 59,455 2,629 Founder s Day 8,060 8,835 (775) Other Revenues 3 204,232 28,971 175,261 Total Revenue $1,340,793 $1,249,519 $91,274 CHURCH OPERATING EXPENSE 7/1/14 6/30/15 7/1/13 6/30/14 Variance Salaries & Benefits 4 $600,626 $560,830 $39,796 School Subsidy 5 200,000 200,119 (119) Religious Education Subsidy 6 19,996 30,828 (10,832) Utilities 73,017 73,583 (566) Maintenance 7 58,066 41,548 16,518 Liturgical Supplies 8 52,771 36,491 16,280 Archdiocesan Assessment & Insurance 204,262 205,070 (808) Administrative 9 82,455 68,881 13,574 Miscellaneous 10 49,598 32,162 17,436 Total Expense $1,340,791 $1,249,512 $91,279 NET OPERATING SURPLUS $2 $ 7 ($5) See financial statement footnotes on page 6.
Page 4 of 8 Revenue and Expense Statement (figures rounded to nearest dollar) SCHOOL OPERATING REVENUE 7/1/14 6/30/15 7/1/13 6/30/14 Variance Tuition & Fees 11 $1,527,100 $1,598,990 ($71,890) Endowment Withdrawal 12 123,111 117,061 6,050 Nite Lites Net Income 13 200,000 217,270 ( 17,270) Other Income 18,805 25,819 (7,014) Total Revenue $1,869,016 $1,959,140 ($90,124) SCHOOL OPERATING EXPENSE 7/1/14 6/30/15 7/1/13 6/30/14 Variance Salaries & Benefits 14 $1,639,094 $1,778,046 ($138,952) Administrative 40,066 26,105 13,961 Books, Supplies, & Technology 94,729 85,612 9,117 Utilities 72,121 71,914 207 Maintenance 15 96,277 69,628 26,649 Insurance 42,782 49,167 (6,385) Miscellaneous 83,947 78,787 5,160 Total Expense $2,069,016 $2,159,259 ($90,243) OPERATING DEFICIT ($200,000) ($200,119) ($119) SUBSIDY FROM CHURCH $200,000 $200,119 ($119) FINAL OPERATING RESULTS $0 $0 $0 See financial statement footnotes on page 6.
Page 5 of 8 Revenue and Expense Statement (figures rounded to nearest dollar) RELIGIOUS EDUCATION OPERATING REVENUE 7/1/14 6/30/15 7/1/13 6/30/14 Variance Tuition & Fees $128,312 $134,149 ($5,837) Total Revenue $128,312 $134,149 ($5,837) RELIGIOUS EDUCATION OPERATING EXPENSE 7/1/14 6/30/15 7/1/13 6/30/14 Variance Salaries & Benefits $102,656 $118,824 ($16,168) Administrative 6,594 5,939 655 Books & Supplies 16,299 14,856 1,443 Utilities 2,020 4,866 (2,846) Maintenance 10,338 9,555 783 Insurance 5,493 4,476 1,017 Miscellaneous 4,908 6,461 (1,553) Total Expense $148,308 $164,977 ($16,669) OPERATING DEFICIT ($19,996) ($30,828) ($10,832) SUBSIDY FROM CHURCH $19,996 $30,828 ($10,832) FINAL OPERATING RESULTS $0 $0 $0 See financial statement footnotes on page 6. Volunteers for St. Columbanus Christmas Sharing Parishioners volunteering at St. Columbanus Thanksgiving food distribution
Page 6 of 8 Financial Statement Footnotes CHURCH FINANCIALS 1) Sunday Collections On-line On-line Sunday collections, as a percentage of total collections, were 22% and 20%, respectively, for FY2015 and FY2014. Financial experts suggest that a level of 30% creates a healthy financial environment. 2) Sunday Collections In Pew In pew donations declined significantly from FY 2014 to FY2015. We launched a special offertory appeal in May of 2015 to address a projected year-end shortfall of $200,000. See footnote 3 below. 3) Other Revenues Includes stole fees, mass stipends, bulletin advertisement revenues, interest income, and facility rental income. Also includes $167,303 from the special offertory appeal. 4) Salaries and Benefits Salary expenses are attributable to purposeful scheduling of additional maintenance personnel time. (We have one full-time maintenance person and supplement that with several part-time personnel to cover the campus.) 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 The subsidy decreased from FY2014 to FY2015 by $10K. The subsidy amount is an amount agreed to by the Finance Council and the Religious Education Board. The decreased subsidy amount was primarily attributable to the elimination of the assistant director of religious education position. 7) Maintenance The increase is due to an unplanned boiler repair, the installation of a fence between the back of the rectory and church for security purposes and higher-than-expected landscaping and snow removal costs. We also spent money to deep-clean the church. 8) Liturgical Supplies - The increase is attributable to a number of factors, most notably the use of additional liturgical printed materials and higher printing costs associated with a larger number of funerals. 9) Administrative - The increase is attributable to a number of factors, particularly outside printing costs for new worship aids, as well as postage for several parish-wide mailings. 10) Miscellaneous Expenses The increase is due to costs to replace rectory furnishings due to pastor and asso ciate pastor transitions as well as the farewell receptions for Father Kisaka, Sr. Kathleen and Sr. Luanne. SCHOOL FINANCIALS 11) Tuition and Fees The variance reflects a decline in enrollment from 298 students in FY 2014 to 258 students in FY2015, offset to some degree by an increase in tuition from year to year and improved tuition collection efforts. 12) 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 2015, even with the reduction in enrollment, we were forced to withdraw $123K, still less that the maximum allowed. 13) Nite Lites Net Income Net income from Nite Lites in a given year is recognized as income in the subsequent fiscal year. Record-breaking net income of $295,000 from the event in April 2015 will be recognized in fiscal 2016. 14) Salaries & Benefits The decline from FY 2014 to FY2015 is primarily due to fewer number of faculty. 15) Maintenance The increase is due to the installation of a playground for our new preschool program, and installation of metal window well grates.
Page 7 of 8 Sacred Heart parishioners generously support the ministries of the Catholic Church around the world! ARCHDIOCESAN COLLECTIONS 7/1/14-6/30/15 7/1/13-6/30/14 Priests Retirement $3,860 $3,090 Campaign for Human Development 850 1,960 Catholic Charities 2,010 4,582 Peter s Pence 1,283 1,893 Propagation of the Faith 566 985 Retired Religious 2,578 2,206 Seminary Collection 790 969 Summer Mission Appeal 6,063 5,341 Churches in Central Europe 283 335 Annual Catholic Appeal 75,654 76,118 Total Archdiocesan Required Collections $93,937 $97,479 OTHER CHARITABLE COLLECTIONS 7/1/14-6/30/15 7/1/13-6/30/14 COCE-Tanzania $1,350 $3,235 Latin America/Holy Land 836 0 St. John Baptiste Haiti 63,569 135,683 St. Columbanus Parish 27,762 30,080 Typhoon Haiyan Phillippines 0 2,480 Kenwood Soup Kitchen 1,714 2,770 Jordan Backpack 1015 2,160 Total Other Charitable Collections $96,246 $176,408 Jesus says something remarkable to us: Greater love has no man than this, that a man lay down his life for his friends. Love always takes this path: to give one s life. To live life as a gift, a gift to be given-not a treasure to be stored away. And Jesus lived it in this manner, as a gift. And if we live life as a gift, we do what Jesus wanted: I appointed you that you should go and bear fruit. Pope Francis, May 14, 2013
Page 8 of 8 ADDITIONAL FINANCIAL INFORMATION June 30, 2015 June 30, 2014 Cash on Hand $1,282,842 $1,200,438 School Endowment Fund Market Value 3,157,670 3,263,256 School Endowment Fund Cost Basis 2,584,563 2,626,201 Operating Reserves 1 388,684 421,698 1) Represents significant donations set aside to provide for deferred maintenance needs. FISCAL 2015: NUMBER OF FAMILIES BY GIVING LEVEL Giving Level # of Families Total Donations $0 457 0 $1-$499 268 52,986 $500-$999 134 90,869 $1,000-$2,499 139 208,731 $2,500-$4,999 56 188,000 $5,000-$9,999 27 180,037 $10,000-$14,999 2 25,250 $15,000-$19,999 2 31,000 $20,000-$24,999 1 23,875 $25,000-$49,999 3 97,150 $50,000-$100000 1 50,000 > $100,000 0 0 Total 1090 947,898