TREASURER’S REPORT
2012
As 2012 ends, Northern Light is in excellent financial condition:
 The operational budget is sustainable
 Our debts are all but eliminated
 We have substantial reserves.
We are truly in the fortunate position of being fiscally ready to undertake new and
exciting programmatic endeavors that will bring greater love, peace and justice to the
world -- especially our immediate part of it. To all of you who have helped place us in
this position: THANK YOU!
I have attached to this report a Balance Sheet Report, as of December 16, 2012. Also
attached to this report is a spreadsheet showing
 the 2013 budget (as adopted by the Church Council on December 13),
 the actual revenue and expenses for the various budget categories in 2011 and
the budgeted, actual (as of December 16), and projected total amounts for 2012.
These two attachments document most of the narrative which follows.
During 2012, our operational
budget’s income exceeded the
amount it was budgeted to be.
$350,000
This was primarily due to the
$300,000
strong giving by congregational
members in support of our day$250,000
Building Use
to-day expenses. As the
$200,000
adjacent graph attempts to
Endowments
$150,000
illustrate, 2012’s strong
$100,000
Congregational
congregational support
Giving
continues the very encouraging
$50,000
trend of the last several years
$0
in which congregational giving
2009 2010 2011 2012
in support of the operational
budget is not only growing, but growing at an increasing rate. Considering the large
proportion of our income that is congregational giving and the relatively stable nature of
the other components, this is good news.
OPERATIONAL INCOME
All Sources (excluding Rental Income)
2012’s operational expenses (in contrast to our income) ended up being substantially
less than what they were budgeted to be. This was largely due to lower church building
NLUC Treasurer’s 2012 Annual Report
Page 2 of 3
costs and the vacant youth director position. The net result of 2012’s greater income
and lower expenses was a positive (projected) cash flow of roughly $60,000.
Recognizing this positive cash flow, the church Council adopted an operational budget
for 2013 that assumes about the same level of congregational giving in 2013 as in 2012,
but raises the expense level in 2013 to match the anticipated income amount.
2012 was also the culminating year in a several-year effort by church leaders to
eliminate Northern Light’s debt. For many years Northern Light carried several
mortgages on various parcels of
NORTHERN LIGHT DEBT
real property which it held. Also,
(As of December31)
in past times when Northern
$100,000.00
Light’s cash flow was very
$negative (rather than the positive
2009 2010 2011 2012
flow I have described above), the
$(100,000.00)
church “borrowed” money from
$(200,000.00)
Mortgages
various dedicated funds it
possessed in order to pay its
Unfunded Liabilities
$(300,000.00)
operational expenses. These
$(400,000.00)
borrowed funds were recorded as
$(500,000.00)
unfunded liabilities (“IOU’s” to
various dedicated funds). As of
$(600,000.00)
the end of 2012, virtually all of
Northern Light’s mortgages and liabilities had been repaid. The only unpaid liability of
Northern Light is a $14,850 grant-mortgage received from the Synod of AlaskaNorthwest to help pay for the original installation of the church’s elevator.
The fiscal impact of needed capital projects looms large for 2013. The Committee on
Property and Management hopes to make necessary repairs to the church’s roof this
summer. The extent and complexity of this repair job may well cost at least $400,000.
Raising funds of this magnitude will require much of all of us. Although the official
campaign for raising funds for the roof has not yet begun, some have already signaled
their support for this project during 2012. One memorable instance of this during 2012
was the generous gift from one of our deceased member’s estate totaling over $89,000.
The magnitude and spirit of confidence that such a gift signifies causes me to believe
we will be successful, during 2013, in raising the needed money to fully repair our roof -under which so many good things happen.
As Treasurer, I am thankful for the opportunity to regularly meet with the Finance
Committee and Investment Committee. The Finance Committee has advised me and
NLUC Treasurer’s 2012 Annual Report
Page 3 of 3
the Council on matters relating to the Church’s finances. Its members are Judy Knight,
John Pugh, Jenifer Shapland, Carol Barril, Ginny Palmer, Christian Veliz, and Phil
Campbell. Northern Light’s Investment Committee regularly meets with our financial
advisers and recommends investment strategies for Church funds to the Council.
Those members are Don Gotschall and Christian Veliz.
Although I will not be at the Annual Meeting in person, I hope to participate
telephonically. If there are questions or concerns about anything in (or not in) this report
that I might be able to answer, please contact me at once either by email at
jimjeanalter@hotmail.com or by phone at either 907-586-9798 or 808-269-4330.
Jim Alter, Treasurer