This page gives some information about how the temple is doing financially. It currently shows the financial position as of the end of July 2018.
First of all, there is a summary of the costs the temple has to cover each month in order to be able to keep going.
The temple's current financial position is presented visually in different ways:
- Net Core Incomings: the temple's monthly cashflow
This is a graph of "income minus expenditure" and shows whether the temple is covering its costs month by month.
For an explanation of what is meant by "core" income and expenditure, see below.
- Comparison of Core Incomings and Core Outgoings: looking at these two separately
These are plotted separately on the same graph in order to show what has caused the changes in the net income graph.
- Core Income: looking at this in more detail
This is just the income part of the above, and looking at this in detail is a good way to assess the ongoing health of the temple's finances.
- Net General Fund Income: overall income month by month
This includes all general income and expenditure (but not including the Building Fund), and shows the amount that the temple would have each month for other purposes, such as making mortgage repayments.
- General Fund Net Current Assets: the temple's cash resources
This is the value of the net resources that the temple has available for it's general purposes. It goes up or down each month depending on whether there is an overall income or loss for the general fund during that month.
- Net Worth: the overall value of all the temple's resources
This is the overall value of the resources that the temple owns, including both the the General Fund and the Building Fund.
- Building Fund (now closed)
This shows what the temple currently has in its Building Fund, which is a restricted fund for the purpose of buying a property to give the temple a long-term home.
Following this are the numbers, for each of the last twelve months, that the graphs are based on:
- the Income and Expenditure and the Balance Sheet
- the Core Income and Core Expenditure
What does it take to keep the temple going?
It costs about £850 per month to cover the basic bills, shown in the diagram (tapclick to enlarge).
At the moment we are receiving about £760 per month in regular donations by standing order.
This means that we would need an additional £90 per month from donations in the alms bowl to cover our costs.
Any help with covering these costs is greatly appreciated, either from donations in the alms bowl or from regular donations made by standing order. All donations are received with gratitude, and any surplus will help us in our goal to purchase a property to give a long-term home for the temple. Thank you for your support.
Net Core Incomings
Recent Cash Incomings and Outgoings
The Net Core Incomings for recent months can be seen on the following graph, which shows "net incomings", which is "cash incomings minus outgoings", for each month since April 2015 (tapclick to enlarge):
This graph has changed significantly since April, as we have now started repaying the mortgage on the property which we purchased in March. The interest payments are currently about £600 per month, which is slightly less than the rent we were paying previously. However, the capital repayment on the mortgage loan is approximately £500 per month in addition to this, so that the net cash incomings have reduced from a surplus of over £250 per month in March to a deficit of over £200 per month in April to July. The "trend lines" have been discontinued as the change in our circumstances means that the running averages are not currently useful.
In addition to our regular core income, however, the temple now has an additional source of income, as Rev. Aiden has recently started as a Buddhist Chaplain for an organisation in Leicester, and the temple receives an income from this. When this additional income is included, the graph is as shown below (tapclick to enlarge):
With this additional income, there was a significant net cash incoming in June, and a smaller one in July.
The "trend lines" show the running average over the previous 6 and 12 months, and help show the overall movement within the large month-to-month fluctuations. As in the previous graph, they have been suspended for now.
For an explanation of what is meant by "core" incomings and outgoings, see below.
NB The figures for incomings and outgoings are for cash incomings and outgoings, and don't include donations of food or other items.
Comparison of Core Incomings and Outgoings
Some of the temple's core expenses, particularly heating costs, vary quite considerably from month to month. Because of this it is not possible to tell from the previous graph whether, for example, a reduction in net incomings is due to a reduction in incomings or an increase in outgoings. To find this out we can plot Core Incomings and Core Outgoings separately on the same graph, as is done below (tapclick the graph to enlarge it).
You can see that Core Outgoings (the red line) vary seasonally; higher in winter and lower in summer. They also increased significantly in April as we started making mortgage repayments. Core Incomings (the dark green line) are much more variable. An additional light green line has been added for the combined Core+Chaplaincy Incomings. This graph really highlights the great variability that there is in the temple's cash incomings, as well as how narrow the margin can be in some months.
The graph shows that core incomings in June and July were just slightly lower than the previous two months, and were some way short of covering the increased outgoings. With the chaplaincy income as well, however, we are just covering the outgoings.
It is also helpful to look specifically at the Core Income, which is made up of standing orders and guest donations. This is shown in the following graph, which includes Core Income for each month since April 2015. The blue bars show regular income from standing order donations, the red bars represent donations placed in the temple alms bowl (guest donations), and the yellow bars are the sum of these two (tapclick the graph to enlarge it).
Standing orders rose quite a bit in June, but fell back a little in July. Guest donations fell significantly in June, as usually happens in the Summer months, but rose again slightly in July. Both months, however, were higher than July 2017, which was the lowest Summer month last year.
Thank you to all those who are so generously supporting the temple through your standing orders, donations in the alms bowl, food donations and other donations in kind, in addition to the support of your practice.
Net General Fund Income
In addition to looking at the Net Core Cash Incomings, it is also important to look at the Net Total Cash Incomings to the General Fund, which includes all incomings and outgoings. Any surplus on this is the amount which would be available to spend on maintaining and improving the property, for example. The following graph shows the overall net cash incomings for each month since April 2015 (tapclick to enlarge):
Again, the "trend lines" show the running average over the previous 6 and 12 months, and help show the overall movement within the large month-to-month fluctuations.
As well as the increased outgoings of the mortgage repayments, the lower figures for June and July are due to expenditure on improvements to the property. The dry Summer months have been an opportunity to repair and stain the fences and the garden shed. Nevertheless, there was a surplus of about £100 in June, and a deficit of only about the same amount in July.
NB These figures include the value of food or other items donated as "Gifts in Kind". They do not include individual large donations, as these would skew the graph significantly, and the running averages would no longer be useful.
General Fund Net Assets: The Temple's financial resources
Another way of looking at the temple's financial position is to look at the resources that the temple has. Firstly, we can look at the cash that the temple has for its general purposes, which is called the General Fund's Net Current Assets. Net Current Assets are broadly equal to the charity's savings minus what it owes on utility bills, for example (its Current Liabilities).
The value of these resources is shown in the following graph (tapclick to enlarge). Each bar represents the position at the end of a month. When there is an overall net income in a month the bar goes up, compared with the previous month, and when we have a deficit it goes down.
The red bars show the actual position in past months, and the yellow bars show a projection for future months. The sudden increase in March 2018 is connected with our property purchase, which completed that month. As part of this purchase, the funds that we had accumulated in the Building Fund were transferred to the General Fund in order to make the purchase. We kept some funds back in order to make improvements to the property, and these funds show as a large increase in General Fund Net Current Assets.
The temple's resources have remained fairly steady in June and July, due to the small surplus/deficit on our overall incomings and outgoings.
Over the coming year the cash balance is projected to stay fairly steady, as we hope to cover our monthly outgoings, but probably with not much left over. We may not quite cover these over the winter months, when our heating costs are higher. If we spend money on improvements, then this will also reduce the level.
We aim to maintain a reasonable cash balance, as this gives us a buffer to help weather any unforeseen expenses that the temple may have.
Some of the numbers that are used for these projections are fairly certain, as we know what a lot of our bills will be in the coming months, and standing orders give some stability to our income. Other income and expenditure is more variable, and an estimate is used for these (more details below). The forecasts become less reliable the further into the future we try to project.
Net Worth: The Temple's financial resources
The temple's Net Worth (the overall financial resources of the temple) is equal to all of the temple's assets (the value of everything that it owns) minus all its liabilities (what it owes to others). The temple's main assets are the funds it has in the bank and the temple property. The main liabilities are the long-term loans used to buy the property.
In the following graph, each bar represents the Net Worth at the end of a month (tapclick to enlarge). The meaning of the red and yellow bars is as described for the previous graph, and the green and blue bars are described below.
As of the end of February 2018, the temple's assets mainly consisted of the Building Fund (green bars), plus funds in our bank account. It's main liabilities were the long-term loans we had received towards a property purchase.
In March 2018 the situation changed with the purchase of the new property. The Building Fund has now been closed, and all savings are now held in the General Fund. The significant reduction in Net Worth in March 2018 was due to the costs of making the property purchase (mortgage arrangement fee, solicitor's fees etc.).
To help interpret this overall figure, the dark blue bar for March 2018 shows an amount equal to the purchase price of the property (£295,000) less all of the loans we received towards the purchase (£180,000 mortgage and £103,000 of interest-free loans). This is described as Net Fixed Assets, and at the end of March 2018 was £12,000. Although strictly speaking it is not possible to allocate liabilities against assets in this way, this helps give an indication of how much of the property the charity "owns".
The value of the Net Fixed Assets increases each month, as we gradually pay off the loans, although this increase is also reduced due to depreciation of the property. At the end of July the Net Fixed Assets had increased to just over £13,000.
The light blue bars show a projection of how the Net Fixed Assets are expected to grow, as we gradually repay the outstanding loans. As long as we are able to keep up the mortgage repayments, this amount will continue to grow steadily. What we need to keep an eye on is the amount of savings we have (the Net Current Assets, see above), to make sure that we have the funds available to make repayments and meet other expenditures.
Net Worth taking into account house price rises
In our accounts we follow the standard accounting practice of depreciating the value of a building over a number of years. We use a commonly used period of 100 years, so that the value reduces by 1% per year. However, in practice the value of houses is increasing year-on-year, and including the price rise of our property would give a more realistic idea of the temple's Net Worth.
This is included in the following graph by increasing the value of the house each month by the percentage increase in the price of detached properties in Leicester, as given by the Land Registry UK House Price Index. In the year to June 2018 this would have given an increase of 8.4%, rather than a decrease of 1%. As before, each bar represents the Net Worth at the end of a month (tapclick to enlarge). The meaning of the coloured bars is as described for the previous graph.
This clearly makes a big difference to the temple's Net Worth, as the Net Fixed Asset at the end of June 2018 is over £5,500 higher than in the previous graph. Caution needs to be taken with these figures, as an average increase across a type of property may not apply exactly to the temple property, but it gives an indication of how prices may stand currently. (The percentage rises from July onwards are estimates, and values for recent months may be revised as the Land Registry receive more details of recent sales).
The numbers that the graphs are based on
Overall Income and Expenditure and Balance Sheet
(tapclick to enlarge)
Core Income and Expenditure
(tapclick to enlarge)
The Building Fund
We launched the temple's Building Fund in late May 2017, and at the end of February 2018 the fund stood at just under £35,000. When we purchased the new temple property in March 2018, the costs of doing this were paid from the Building Fund, and the remaining balance was then transferred to the General Fund in order to complete the purchase. As a result, the balance on the fund reduced to zero, and the Building Fund has now been closed.
The history of the Building Fund is shown in the following graph (tapclick to enlarge). Each bar represents the position at the end of a month.
How the figures are calculated
Accruing outgoings on a monthly basis
The main reason for comparing incomings and outgoings month by month is to see whether the temple is covering its essential outgoings from the donations it receives. In order to do this we need to know what the incomings and outgoings are in each month. However, many of the temple's bills arrive at longer intervals than this - for example gas and electricity are invoiced quarterly and water twice a year. If these are only included in the month-to-month comparison when they are paid, then there will be some months with very high outgoings and others with very low outgoings, so that it won't be possible to see the underlying picture.
In order to compare months properly, we need to include in each month's outgoings the portion of those bills that relate to that month. This is called accruing the charges to each month. It can be done for gas, electricity and water by reading the meters at the beginning of each month, and calculating the usage charge and standing charge for the previous month using the rates that the utility companies charge. For other expenses such as insurance and council tax, the monthly amount is simply the yearly total divided by twelve.
Core Incomings and Outgoings
Even when we accrue outgoings to each month, there can still be significant differences between months. This is because in some months there are additional costs; for example buying items of equipment for the temple such as a cordless phone or a water heater, or hiring a van. These are one-off costs, and if they are included in the comparisons it will be very hard to see whether the temple is covering its basic ongoing costs. Similarly, the temple has received some very kind one-off donations, and including these in comparisons will also obscure the underlying picture. So to make the comparison easier it is helpful to consider each item of incomings and outgoings to be either "core" incomings and outgoings or "additional" incomings and outgoings.
"Core" Incomings and "Additional" Incomings
Core incomings include regular donations by standing order, and donations placed in the temple alms bowl (guest donations). Any other incomings are considered to be "additional" incomings, including large one-off donations, donations received in the post, and single online donations. It should be emphasised that these categories are simply to help the month-to-month comparisons give us useful information; all donations are very much appreciated, in whatever form they are received, and all help to support and sustain the temple and the resident monk.
"Core" Outgoings and "Additional" Outgoings
Core outgoings include mortgage interest payments and capital repayments, council tax and insurance, as well as utilies - gas, electricity, water, phone and internet. They also include food, household and other similar outgoings which are essential to the running of the temple. Additional outgoings are anything other than these, and can be regarded as "discretionary" in the sense that we will buy them if we can afford them, but if we can't, the temple can still function without them. Additional outgoings include purchasing items that would upgrade or improve the facilities that we can offer.
Gifts in KindThe graphs of core incomings and outgoings that are presented are for cash incomings and outgoings only, and don't include donations of food or other items. "Gifts in Kind" are actually an important aspect of the support which the temple receives; food donations are often more than £100 worth per month, and donations of household items (such as cleaning products, toilet paper and soap) and items of equipment are also gratefully received. These donations are not included in the core incomings graphs, as it is the cash incomings and outgoings that we are focussing on there. However, they are included in the Overall Income and Expenditure and Balance Sheet numbers. Although they are included in the Net General Fund Income and Net Worth graphs, Gifts in Kind are accounted for as both an income and an expenditure (because, for example, food is donated, and then eaten), and so the values in these graphs are unchanged by their inclusion.
- incomings are from standing orders and guest donations
- outgoings are the minimum necessary to run the temple
- incomings are any income other than from standing orders and guest donations
- outgoings are "discretionary" items
Estimates used in the Net Worth graph
The temple's financial resources increase or decrease each month according to the total income and expenditure. This is shown by the red bars in the Net Worth graph, which includes all income and expenditure during each month. This is the same value as shown on the Balance Sheet at the end of each month.
To give an idea of how the temple's resources are likely to change over coming months, the Net Worth graph also includes projections for future months (the yellow bars). The values that are used for the projections are as follows:
- Standing Orders: the value for the current month is used
- Guest donations: an average of guest donations for the same month of previous years (since April 2015) is used
- Other "additional" income is assumed to be zero
- Mortgage interest payments, council tax, insurance, phone and internet are known in advance: the actual figures are used
- Gas, electricity and water are estimated based on past usage, which varies seasonally
- Food, household etc.: an average of the previous six months is used
- Additional expenditure: an average of the previous six months is used