Page 46 - 2019 Annual Report - Final (with cover)_Neat

2019 Annual Report

change in the unit value is not recognized as income until granted to the General
Fund.

c. Land, Buildings and Equipment

i. Land – the landsite was purchased in 1952 by PCC through the Home Mission Board and

granted to Trinity.
ii. Buildings and Equipment – includes only the capital cost of the current sanctuary

completed in 1992; since 1992, all costs relating to property acquisitions have been

regarded as a current year expense and not capitalized.

3. Expenses relating to rental income – when filing the annual statistical report with PCC for 2018 for
purposes of calculating the $ base, the amount that determines the assessments for Presbyterian

Sharing and congregational pension contribution, the decision was taken to reduce gross rental income

in the amount of $71,000 for expenses deemed applicable to the earning of the rental income. Due to

PCC policy, the claim has been denied. However, it is intended by Trinity to continue to provide
argument that the policy is unfair to Trinity as it continues work to increase rental income to higher

levels.

4. Allocation to major repairs – in accordance with a policy established by Session in 2018, 5% of rental

income is allocated to the Major Repair Fund.
5. Grants – as stated in Note 2(b), grants from the Growth Fund to the General Fund for church operations

are included as operating income in the year of grant.

a. In 2018, part of the approved grant was repaid in the amount of the operating surplus for the

year [$21,923].
b. For 2019, Session also approved a grant from the Ross Fund to the General Fund in the amount

of $4,429 to close out the Fund.

6. Buildings and Equipment – the accounting policy is described in Note 2(c) above. The capital cost of

$2,731,345 is being amortized at the rate of $58,462 annually and will be fully amortized by 2031. The
annual amortization is deducted from net assets.

7. Net Assets – under the current policy of PCC, when a congregation dissolves, its net assets vest in the

Trustee Board of PCC rather than the congregation. Accordingly, the net asset balance in terms of value

to Trinity is indeterminate at any point in time.

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