Corps loan

We like to maintain transparency around the way that the Corps is managed, particularly in the area of finances. This information is provided in that spirit.

Most of you would be aware that our Corps carries quite a loan for our building. Over the last 5-6 years we have made significant repayments, and received some bequests, and this has reduced from nearly $1m in 2006 to now being around $575,000. This is great news.

Over the last year or two, our Corps income has decreased. This was mostly because of the whole retail sector being diminished and affecting our shop income, but we also have had a slight decrease in other income areas - receipts from chaplaincy and hall hire for example. This is coupled with rising costs - especially electricity and wages. We are countering this with our new solar panels!

What this means for our loan is that for the last year we have had an arrangement with THQ to only pay interest on our loan while we investigate the possibilities for grants or bequests to reduce the capital. This has worked well, giving us around an extra $1800 per month in retained earnings while still reducing the principle of the loan, albeit slightly.

THQ have asked to review this arrangement, and to be honest we would struggle if we had to pay the full repayment each month. To this end we have applied, alongside the Division, to continue the interest only repayments over the next two years. During this time our goal is to raise via legacies, bequests or capital donations sufficient to reduce the principle of the loan down to a level commensurate with the repayments that we are making. This would be in the vacinity of $300,000 (remaining on the loan).

If this is achieved it would mark a significant result for the Corps in that $700,000 would be paid off our loan within 7-8 years!

In the meantime we are retaining other securities for our corps finances, such as retaining a $40,000 offset account as a 'backup' plan for any unforseen issues - such as if we get to the end of the month and can't cover wages from our default account.

We thank Iris, Alma, Wendy, Bronwyn, Angela and all those that are involved in the management of our Corps finances. It is a complex task, split across a number of cost centres and accounts, and is done always with our mission in mind. The honourable management and diligent stewardship of our resources are the means by which we have structure in place to shine our light in Adelaide's south and have others join us as disciples of Jesus Christ.