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Fiscal Year Ending June 30, 2020 Results

Accompanying this article on the parish website (www.stjohnv.org) is a summary of the financial results for St.
John Vianney Parish for the fiscal year ended June 30, 2020. As experienced by everyone, such results show that
the past year was very challenging.
Most, if not all of us, were affected in significant fashion by the COVID-19 pandemic, as it turned the world
upside down, including your parish and school relationships. Our exemplary school pivoted and began teaching
virtually in 3 days. Based on the guidance of health authorities and the Archdiocese the church and chapel closed
in mid-March thru the end of May—probably the first and hopefully the only time in St. John Vianney’s history. As
we all navigated through the never-ending series of changes and challenges, staff, parishioners, and volunteers
stepped up to keep our connections as a parish. Some brought in equipment to livestream Masses: others helped
fellow parishioners in need of food and medicine deliveries, others helped teachers and students with technology
to facilitate virtual learning. We also had to develop new, expanded ways to get the word out; to parishioners, to
students and to parents, utilizing technology along with traditional methods as we could not communicate faceto-face.
With respect to the parish’s finances, we were already facing challenges prior to the pandemic. Offertory was
running behind budget and behind the previous year. We had plans for an aggressive spring push to increase
offertory—but then COVID hit. The Festival had to be canceled and we did not sell an investment that was
budgeted to be sold. In total, revenues were below budget by $442,600. Expenses were reduced to the greatest
extent possible, and when COVID hit we stopped purchases and services. Hours were reduced, the heat turned
down and the facilities were closed to the public. Over the course of the year we spent $121,400 on
unanticipated capital expenditure items, plus another $30,000 on unbudgeted items once the parish was
approved to receive a Paycheck Protection Program (PPP) loan in April. Although compared to the budget
expenses were under by $97,800 even after these two major unbudgeted costs, with the revenue shortfalls the
parish experienced a net loss of $339,028 for the fiscal year ending June 30th, 2020.
In late April we received a PPP loan in the amount of $426,408. The proceeds of this loan needed to be spent
within 8 weeks of receipt of it and for specific items. St. John Vianney needed to be aggressive in meeting the
criteria of the loan so it could receive principal forgiveness per the program terms. Hence, some staff were
brought back, and other qualifying expenditures were made. Originally the loan forgiveness (which would result
in income to the parish) was required by the Archdiocese to be recorded in the year ending June 30th, 2020. The
Archdiocese accounting guidelines were subsequently revised to require the loan forgiveness income to be
recorded in the fiscal year ending on June 30th, 2021. That change results in a 2020 fiscal year net loss vs. net
income, even though such net income would have been by extraordinary means via the loan forgiveness.
With all this background in mind it is important to pull back and look at the overall picture. For the last three
years the Parish has experienced consistent and growing deficits (due in part to many capital expenditures), Mass
attendance has been declining, as has school enrollment. The current fiscal year budget for the Parish shows a
projected loss of $329,131. That will be offset by the PPP loan forgiveness of $426,408, but after accounting for the
debt service from the Doors to Our Faith campaign totaling an additional $153,000, the bottom line is a potential
net loss of $55,723.
Given the circumstances, a group of leaders from the Finance Council, working with Father Ed Kornath, formed
a subcommittee to examine the budget position, and that group quickly concluded that our parish is facing both
a spiritual and a financial challenge. Over a short period of time in late summer and early fall the group
convened and developed a plan to lead SJV out of this situation. That plan has been presented to the full
Finance Council, the Pastoral Council, the leadership of all Standing Committees, the full Stewardship Committee,
and Parish staff leadership. Everyone in these groups was engaged to help as it will take everyone to move SJV
forward out of these spiritual and financial challenges. Facing our financial challenges will take a multi-pronged
approach which has already begun, including examining all parish expenses and reducing parish contributions to
the school. However, we realize that we cannot eliminate the problem solely by cost cutting—the parish needs to
increase offertory both now and over the long-term.
It has been said that the best way to raise money for church is by doing church better. Parish leadership is
committed to doing so. On the spiritual side, you have already seen Fr. Ed’s Pastor Series about Trusting God. Bold
and faithful ideas will be taken up by each standing committee. We will continue to be open to the call of the
Holy Spirit and step forward to keep our focus on the Church’s mission: to love God, love one another and grow
disciples.
Very Rev. Edwin Kornath Robb Lied Randy Freeman Robert Scott Brian Schloemer
Pastor Dir. Admin. Services Trustee-Treasurer Trustee-Secretary Finance Council Chair

FiscalYE2020Results