We have now been able to analyse the church’s income and expenditure for the first 8 months of 2020, and so, based on this information, we have forecast the likely financial position at the end of the year.
If you want a bit of detail: The full Treasurer’s report and forecast for 2020 can be found here, but just start with page 1 of the report, which is a summary of the position we’re forecasting ASM will be in at the end of 2020 versus the budget; using actual figures to the end of August 2020, then estimates for Sep to Dec (any figures in brackets are worse than budget, and those not in brackets are better than budget). Please note when reading page 1 that we budgeted for a £9k surplus overall for 2020; and now we are forecasting a £34k operating deficit for the year.
If you want more detail: See pages 2,3 and 4 of the Treasurer’s report, which show the forecasted income and expenditure positions at the end of December 2020, versus the 2020 budget; with some commentary to explain the reasoning behind the year-end forecasting.
If you like a lot of detail: See pages 5 to 10 of the Treasurer’s report, which show the net assets position at 31 August 2020 (page 5), the income and expenditure positions at the end of Q2 on 30th June 2020 (pages 6 & 7), and the quarter-by-quarter reforecasting figures versus budget for the full year (pages 8, 9 & 10). Considering the balance sheet at the start of 2020, the £29.9k net surplus in 2019 increased net assets to £195.7k at 1st January 2020 (comprising cash and deposits of £122.1k, investments of £77.2k, and working capital of -£3.6k). Therefore, if our forecasted end of 2020 operating deficit for the year is £34k, we will finish the year with unrestricted cash and deposits of £85k; i.e. still with the minimum level of reserves intact in accordance with our Reserves Policy, which will be a blessed position to have in the current circumstances.