2019 TREASURER'S REPORT
It has been a pleasure serving as your Treasurer this year. I accepted this position with great sadness upon the tragic and unexpected death of my predecessor, Stuart Kensinger in May 2019.
Financial statements translate the story of an organization into numbers, and as such, fail to capture the emotion, purpose, and spirit of peacebuilding. I hope, as you read my report, you will remember the faces and sounds of the children and adults living amidst the conflict of war. I hope you will visualize each teacher, each youth, each brother and sister working for peace, because we share with them the great calling for service. JPB is financially healthy and well positioned for growth in 2020.
Balance Sheet:
As of 31 December 2019, JPB had a healthy balance sheet with $105,975 in the operating account, $85,444 in the Stuart and Angela Scholarship Fund and $5,161 in the Fidelity Brokerage Account.
JPB has the following notable liabilities and obligations:
$15,359 of refunds due JPB Pilgrimage guests for the cancelled 2019 pilgrimage.
$12,952 in obligations for the 2020 pilgrimage.[1]
A $25,000 donation for the development of the Ahli Arab Hospital in Gaza.[2]
The JPB balance sheet is strong and ready for the year to come.
Statement of Activities (P&L):
Gross Operating Receipts were $363,596 in 2019 and $423,091 in 2018, reflecting the $70,364 decrease in funding from the cancelation of the JPB Pilgrimage and a $19,066 increase in program funding provided by the newly established Stuart and Angela Scholarship Fund. As the 2019 Pilgrimage was canceled after the deaths of Stuart and Angela, we can feel very proud that despite this setback, net program funding increased by almost $11,000.
Gross Operating Expenses decreased from the prior year by $88,666. This can be attributed to the following:
Pilgrimage Travel decreased by $33,548 as the program was cancelled.
Camp site lease and occupancy costs decreased by $21,407.
Legal fees decreased by $28,697, as fewer services were required.
The Executive Director's salary decreased from $30,000 to $24,000.
Net Operating Income a net loss of ($9,883)
JPB Experienced a Net Loss in Operating Income of only ($9,883.43.) This is a huge milestone, as JPB experienced a net loss of ($39,055) in 2018. The trend is upward and hopeful, as JPB and our Executive Director, The Rev. Nicholas Porter, inspired considerable grants ($47,500) payable in 2020. Our organization is rapidly approaching maturity.
Other Receipts and Expenses
The Angela and Stuart Kensinger Scholarship Fund: $104,009, less scholarships Issued: ($19,066)
Al Ahli Arab Hospital Donations: $25,000.
This $25,000 gift from Ted Pinson and Paula Arnold will be used in 2020 to help underwrite the costs of Phase II (detailed architectural and engineering) plans needed for the construction of a radiotherapy treatment center at the Al Ahli Arab Hospital in Gaza as well as to help advance the effort to raise the remaining $625K needed.
Building upon the foundation set before me, with board approval, I have moved all donations to the Stuart and Angela Kensinger Scholarship Fund into a separate scholarship account. In consequence, our books do not show the sizable $104,009 of 2019 scholarship donations to the Scholarship Fund as part of JPB 2019 Operating Income, but apply as 2019 operating income only that portion of the Scholarship Fund donations specifically applied toward 2019 scholarships. The full amount of donations to the scholarship fund are now shown under "Other Income."
We will in like manner apply subsequent scholarships as Operating Income in the year of their award. This approach allows us to make meaningful prior year comparisons and properly plan for the strategic use and growth of the Scholarship Fund. In similar fashion, and in response to the cancellation of the 2019 Pilgrimage after Stuart and Angela's death, our books now reflect funds collected for the 2019 and 2020 pilgrimages on an accrual basis, allowing the board to better to see that a portion of our cash represents pre-payments and corresponding liabilities for these pilgrimages. The rest of our books continue operating on a cash basis.
Finally, I offer some accounting system thoughts. Our bookkeeper, Bonnie, and I have been gradually reorganizing the chart of accounts, account numbers, names, and class names. This is an ongoing process. We will continue this process throughout 2020.
Respectfully submitted,
Bruce A. Barrett
Treasurer, Jerusalem Peacebuilders
[1] Pilgrimage reservation deposits are received both in the year prior, and the year of, the intended Pilgrimage. We are recording all deposits for the 2020 Pilgrimage, whether received in 2019 or 2020, as a liability (and not as income) until the actual event. At the time of the Pilgrimage and the Pilgrimage expense, in 2020, we will record both the income and the expense concurrently.
[2] I did not list this as a liability on the balance sheet, but as income on the P&L. This $25,000 gift is for our creative leadership and oversight toward the design and construction of a radiotherapy treatment cancer center in Gaza. Toward achieving this goal, JBP will donate most of these funds to The American Friends of the Episcopal Diocese of Jerusalem, with whom we partner in the development of the cancer center.
