OFLC Fiscal Year Transition Timeline
Our Father Lutheran aims to transition its operation (accounting) cycle from a calendar year to fiscal. Transitioning to this cycle aligns with the ministry year (events, liturgical calendar) and the preschool season. In order to accomplish this transition, an interim budget in 2019 will be created that will take effect January 1 and conclude June 30, 2019. The first fiscal year to take effect would be July 1, 2019. Below is a timeline of events during this transitional period.
Fiscal Year Transition FAQs
Why is this transition occurring? Is there something occurring, not working or does not fit causing this transition?
Aligning the operating and accounting cycle is a better position in which to plan for ministry opportunities. This transition is being initiated not out of a position or sense that something needs fixed or because it’s broken, but rather out of a desire to make things better.
How will this transition be accomplished when all our operating and accounting history is based on a calendar year cycle?
The current process of creating a budget utilizing projections and historical data will still be utilized even for the interim 6 month period budget. Giving patterns, frequency, consistency and scope of expenditures are such that we can correlate these to a new budget even if that budget is shifted to a different time period.
What other areas will be affected by this transition and how will they be impacted?
There will certainly be areas where we cannot change or modify to mirror the fiscal year change. For example, payroll and its related reporting, employee benefits and
Does this fiscal year transition change how we plan for ministry opportunities?
There will be no change to how the ministry staff or volunteers function or plan the various areas of ministry responsibility. In fact, this transition is designed to align the planning process and timeline better so ministry dollars are allocated in proximity to the ministry year cycle. At present, a calendar year budget overlaps 2 ministry year cycles (January – June ministry cycle and July – December ministry cycle). These are independent cycles which often have different ministry goals.
Who was involved in originating this transition concept and who will be accomplishing this transition?
The origination of this concept was from the ministry staff and a desire to have alignment of ministry planning coincide with our budget. The concept was present to and approved by the Finance Committee and Parish Council of Our Father. The execution of this transition will be accomplished by the Director of Finance and Administration, OFLCs accountant, the Finance Committee and other staff.
Who can I contact if I have more questions about this transition?
You can contact Doug Ullmann, Director of Finance and Administration at firstname.lastname@example.org