Thursday’s Presbyterian Church (U.S.A.), A Corporation Board meeting includes a sunny financial report

For the first six months of 2023, income was $25.5 million more than expenses

by Mike Ferguson | Presbyterian News Service

Photo by Jack Niles via Unsplash

LOUISVILLE — Meeting via Zoom on Thursday, the Presbyterian Church, A Corporation Board of Directors made short work of its agenda, taking a few actions and providing a handful of updates before voting to enter into closed session to discuss personnel, property, litigation and security matters.

After the board emerged from closed session, A Corp President Kathy Lueckert announced the board had taken no further action following its 40-minute closed session.

Financials

Ian Hall, the PC(USA)’s chief financial officer and chief operating officer, took the board through a financial report for the six months ending June 30. Income for the period was $20.5 million more than budget and $40.8 million more than the same period during the prior year, primarily due to year-to-date unrealized market gains, Hall said. Contributions were $4 million over budget, in part due to Presbyterians’ continued giving to Presbyterian Disaster Assistance to aid Ukraine and those affected by earthquakes in Turkey and Syria. However, contributions were down $6.4 from 2022 levels, again owing to a decrease in PDA receipts from the previous year.

Investment return was $17.1 million greater than budget because of realized and unrealized gains on investment, Hall said. Compared to the same period last year, the investment return was almost $47 million greater.

Expenses for the first half of 2023 were $8.8 million less than budget and $2.4 million more than last year’s expenses. Salaries and benefits were $1.6 million less than budget due to position vacancies, but $1.2 million greater than the first six months of 2022 because there was one additional pay cycle through June 2023 compared to the same period in 2022. Travel expenses were up $0.3 million from the previous year.

Administration expenses are $2.9 million less than budgeted. That includes underspending by the Presbyterian Mission Agency of $0.9 million, the Office of the General Assembly of $0.5 million, and the Administrative Services Group of $1.5 million.

“When you look at income versus expenses, it’s not a bad position to be in,” Hall said, noting that income over the six-month period was $57.7 million and expenses were $32.2 million. Net assets increased by nearly $25.6 million through June 30.

Committee reports

The board approved a resolution from its Audit, Legal and Risk Management Committee to engage MCM CPAs and Advisors to provide independent audit services to the A Corporation and its constituent corporations through 2025.

The Nominating, Governance and Personnel Committee had four action items, all of which received board approval. Those action items were to approve the 2023 manse allowance resolution, a slate of corporate officers for one-year terms, a review of Lueckert to occur during the first quarter of 2024, and the receipt of the resignation of Board Member Samuel Bonner. Board members expressed appreciation for Bonner’s years of service on the board.

The board approved the sole item for action from the Finance, Operations and Budget Committee. That item provides for the distribution of unrestricted funds received by the A Corporation at 70% to the Presbyterian Mission Agency and 30% to the Office of the General Assembly.

President’s report

Lueckert provided an update of progress on her goals for 2023. Those goals are divided into four categories: leadership, organizational management, strategic operational management, and organizational culture. Three ongoing items of focus are relationships with other agencies/entities, client-partner support, and “safely steering [the Administrative Services Group] through the political waters at 100 Witherspoon.”

Of the 13 goals in the four main categories, Lueckert reported completing five to date, with more than four months remaining during 2023.

The next scheduled meeting of the A Corp Board is in Louisville, Kentucky, Nov. 16-17. More information about the Presbyterian Church (U.S.A.), A Corporation, can be found here.