FINANCE, AUDIT & RISK COMMITTEE
David Slinn, Chair
The Association’s surplus of $9.7m is made up of an operating surplus of $538k and a surplus from Designated Funds of $8.3m. The surplus from operations is due to a grant received of $500k and JobKeeper payments from the government of $285k and a reduction in planned programs and expenses caused by COVID-19.
During 2021, we have continued to focus on building up resources for the Gen1K vision by further consolidating funds with the aim of efficiency and mobilising resources for strategic initiatives. Some further funds have become available from closed churches. We have consolidated these funds and have $13m invested in the Baptist Impact Fund to support investment into ministry related activities.
Below is a summary of our 2021 financial results: –
| Actual | Budget | Diff $ | Diff % | ||
| Operations | |||||
| Income | 3,790 | 3,335 | 241 | -6.9% | |
| Expenses | -3,252 | -3,493 | 455 | 13.6% | |
| Surplus/ (deficit) from operations | 538 | -158 | 696 | -440.5% | |
| Other Ministries | 372 | 44 | 328 | 745.5% | |
| Surplus/ (deficit) from operations including other ministries | 910 | -114 | 1,024 | -898.2% | |
| Designated funds | 8,335 | 654 | 7,681 | 1174.5% | |
| Other comprehensive income | 445 | – | 445 | – | |
| Total surplus for the year | 9,690 | 540 | 9,150 | 1694.4% | |
The figures for other ministries include Kiah Ridge and our Regional Ministries (Greater West for Christ, Riverina District Baptist Association, H100 and TSS). Other ministries is above budget due to proceeds from the sale of closed churches in the Riverina Region and also due to insurance recoveries from Kiah Ridge operations.
The surplus from Designated Funds is above budget due to the writeback of bad debts of $2.9m and proceeds from the sale of properties of closed churches which are used to support the GEN1K vision.
Looking ahead
The Operating budget for 2022 is a net deficit of $90k. The Church Partnership Support budgeted only covers $1.5m of our annual operating costs of $2.8M. We continue to work diligently so that the operating budget can be balanced over the long term and as the Association requires increasing resources to support churches in an ever-increasing complex environment.
