2022/23 finances

Summary

2022 – key events:

As all reading this will be aware, 2022 held some significant events for the life of the Billabong.  In terms of finances, my ‘top three’ are the these: 

• Church plant: committing to move ahead, God-willing, with the church plant in Harrisdale/Piara Waters has impacts for some of our existing savings (using the ‘expanding ministry fund’ together with grants to fund the church plant).  It will also impact staffing arrangements, and modify how we structure the balance sheet.  

• Establishment of the property sub-committee: in the latter part of 2022 the property sub-committee was (re)-established.  The intent of this subcommittee is to: support and guide Kimberly in her role, provide additional focus on some ‘major maintenance’ type work, and to work on a long term maintenance plan for the Billabong, which in time will help to better define our future maintenance fund.  

• Continuation of issues with the Rammed Earth Walls on either side of the cafe area: after initially seeing cracks in these rammed earth walls in 2021, continued investigation last year (with thanks again to Murray, the uniting church head office staff and others), are leading towards an understanding of the options we have to resolve the issue, which may be very costly.  
  
  

The Billabong budget structure:

As a quick recap, the Billabong has 4 separate accounts/funds, each governed by different guiding principles:

• General Funds / Operating Expenses, which supports the yearly cost of our existing ministries and facilities (and is the focus of the budget).

• Capital Projects Fund (CPF), which is used to store funds for one-off projects that may run over more than one year.  

• Future maintenance fund (FMF), which holds funds to account for the depreciation of our facilities (in preparation for significant maintenance)

• Expanding ministry fund (EMF), which exists to store/use excess funds to grow the church’s ministry. 
  
  

This year the establishment of the church plant will lead to some modifications to this budget, without needing a complete revamp.  From 2023 onwards (for at least 3 years, and until the church plant becomes financially independent from The Billabong Canning Vale), the budget for The Billabong HPW will be added inside of the Operating Expenses fund. Both The Billabong HPW and The Billabong CV will have their own Income/Expenses/Transfers lines, which will ultimately group together into one collected total.  See the slides for a better illustration of this.  

2022 Actuals:

In 2022 we forecast a deficit of ~$10,000, but at year-end, finished with a deficit of ~$23,000.  Overall, expenses were slightly lower than budgeted, but income was also lower than expected, from both congregational giving and rental income.  The decrease in rental income was predominantly due to Kids Active pausing one of their programs (decreasing their use of the building).  By the end of the year, this had reverted back to the normal planned rates. 

We are able to occasionally have deficits as we have cash that we hold available in our operating expenses fund, however we do need to return the budget to surplus, so are discussing this as a leadership team, and hope to continue in the finance round table sessions.  

Capital Projects and other funds:

In terms of significant updates/changes to the capital projects fund, a few items were fully complete in 2022 (cabinets for the café space, AV equipment purchases).  The nature play allocation has not yet been materially spent, but significant progress has been made with planning & approvals, so we intend to fully fund the remainder of nature play in 2023, to allow it to be fully built this year. 

Minimal funds were spent from the Future Maintenance fund in 2022 and no funds were drawn from the Expanding Ministry Fund.  A break down of spending from all three special funds will be presented at the AGM (if not prior).

2023 budget:  

Significant changes to the 2023 budget are an increase in the amount planned to transfer to the future maintenance fund (from $12,000 to $30,000), and the inclusion of the HPW budget.
Also included below is a 3 year budget for the Harrisdale/Piara Waters church plant. Note that any differences between this document and The Billabong's 2023 draft budget are due to the commencement of the church plant being in March. 

Finance Information Slides
(you can click the arrow box in the top right corner of the document to open this PDF in a new window)

2022 Actuals and 2023 budget PDF (approved by church council 2nd Apr 2023)
(you can click the arrow box in the top right corner of the document to open this PDF in a new window)

3 year budget (March 2023 - February 2026) for Harrisdale/Piara Waters Church Plant PDF
(you can click the arrow box in the top right corner of the document to open this PDF in a new window)