BIC U.S. finance team releases midyear financial summary
mechanicsburg, Pa. (august 29, 2013)—The BIC U.S. finance team has prepared a midyear summary to capture a snapshot of the income and expenses of BIC U.S. from January 1, 2013 through June 30, 2013.
“We trust that this periodic reporting will provide pastors and others with a good sense of how BIC U.S. is doing financially,” states Andrew Steckbeck, acting executive director of finance for BIC U.S. “We also hope that this will facilitate further transparency and communication.”
The categories and graphics of the summary are similar to those included in the 2012 Year-in-Review, so that comparisons can be made.
In addition, Steckbeck offers these notes of explanation:
- Congregational receipts and undesignated gifts from individuals are approximately $70,000 below the income expected for January thru June 2013.
- Designated giving to BIC World Missions has exceeded budgeted expectations for the first six months of 2013.
- Investment income during the first six months of 2013 was strong and helped the Church’s bottom line. This was due primarily to the performance of market investments over that time.
- Expenses are, as a whole, well within budgeted expectations. Certain specific expense categories have variances, which are often are due to issues of timing throughout the year. All the variances fall within the realm of acceptable fluctuation in light of budgeted amounts being a best estimate of actual operations.
- Expense for the BIC Ministers’ Pension Fund is an estimate that can have a large impact on the organization’s financial picture. Actual expense through June 30, 2013 is $9,294.The budget plans calls for a total of $40,000 to be paid to the pension fund during the 2013 calendar year out of general operating funds, in addition to funds put into the plan directly from Regional Conferences and bequests made to the organization, which the General Conference Board has mandated be deposited directly into the Pension Fund. The ultimate impact to the organization’s bottom line is a combination of the investment performance of the plan assets, discount rates and other actuarial assumptions, and cash put into the plan. As these amounts are subject to change throughout the year, the amount of pension expense is, by necessity, an estimate.
- The total for expenses related to the organization’s self-insured BIC Health Plan claims is another amount that is required to be an estimate for interim reporting that, as claims are reported and realized, can have a meaningful impact on the organization’s financial picture. Because the Health Plan is a self-funded plan through December 2013, an estimate of the organization’s health claims through the end of 2013 is necessary to adequately represent the organization’s health costs. The estimate used for this report for healthcare claims that will be paid by the organization’s self-funded Health Plan over and above premiums collected is approximately $100,000.
- Summary—Overall, the organization’s financial outlook appears to be reasonably on track with budgeted expectations for the 2013 calendar year. Key challenges for the remaining six months include the winding down of the self-funded BIC Health Plan, management of expenses according to budgeted expectations, monitoring of income streams, and continued development and implementation of a strategy to successfully complete Pension Plan commitments.
Further questions about BIC U.S. finances or this midyear summary can be directed to Andrew Steckbeck at firstname.lastname@example.org.