Prosynergy Bookkeeping

May 2026 Insights for Hearkeneth Group

Prepared by Titus Kuepfer · Accrual Basis · Confidential

Total Revenue

$10,690

↓ $4,262 from April

Net Revenue

($314)

↓ from $2,897 in April

Cash in Bank

$10,638

+ $9,130 undeposited funds

Operating Reserve

1.6 mo

~6–7 weeks of expenses on hand

Three Things That Matter This Month

May Revenue Dipped — But Costs Followed, Keeping the Loss Small

Revenue came in at $10,690 — $4,300 less than April — but expenditures also hit their lowest point of the quarter at $10,721. Net loss was just $314. April showed what's possible at $2,897 net positive. The gap between those two months is mostly in donations ($8,222 vs. $6,040).

→ What drove strong donations in April? Understanding that is the key to a better June.

$6,550 in Resident Balances Is 90+ Days Past Due

David Greenawalt ($3,450), Joseph Starnes ($2,100), and Alfred Ashford ($650) are each more than three months behind. At this stage, reminders aren't enough — direct conversations about payment plans are needed this month.

→ Contact Greenawalt and Starnes directly by June 20 with a payment plan proposal.

Spending Has Trended Down Every Month This Quarter

Total expenditures fell from $13,622 in March to $10,929 in April to $10,721 in May. Payroll and contractors in particular have come down significantly. May's internet/tech line included a $405 charge to T-Mobile on top of the normal monthly cost — worth confirming whether that's a one-time setup or equipment fee, or something that will recur.

→ Confirm whether the $405 T-Mobile charge is a one-time expense or a new recurring line item.

Statement of Activity — March through May 2026

	Mar 2026	Apr 2026	May 2026	3-Mo Avg
Revenue
Donations	$7,376	$8,222	$6,040	$7,213
Rent Income	$5,450	$6,730	$4,650	$5,610
Total Revenue	$12,826	$14,952	$10,690	$12,823
Expenditures
Occupancy	$5,777	$4,419	$4,103	$4,766
Payroll & Contractors	$4,025	$3,401	$2,638	$3,355
Office & Admin	$1,177	$1,255	$1,391	$1,274
Vehicle	$1,094	$232	$522	$616
Taxes & Other	$1,548	$1,622	$2,067	$1,746
Total Expenditures	$13,622	$10,929	$10,721	$11,757
Depreciation	—	($1,127)	($283)	($470)
Net Revenue	($795)	$2,897	($314)	$596

Cash Flow — May 2026

What This Means

A/R Built Up

$2,195 in revenue was earned but not yet collected — the biggest single cash drain this month.

Loan Steady

~$583/month going to the Railside Installment (interest + principal). On track and expected.

CC Paydown

Credit card balance decreased by $169 — small but moving the right direction.

Net Cash Drop

Cash ended the month at $19,768 — down $2,806 from the start of May. This includes $9,130 in funds awaiting deposit.

Key Accounts Snapshot — May 31, 2026

Cash in Bank

$10,638

Checking + savings

Undeposited Funds

$9,130

Awaiting bank deposit

Accounts Receivable

$10,695

41% is 90+ days overdue

F&M Credit Card

$1,011

↓ Paid down $169 in May

Railside Installment

$40,862

Long-term debt · ~8 yrs remaining

Fixed Assets (net)

$102,042

Two properties + vehicle

Profit Quality Score

Cash outflows exceeded reported loss by 9× — driven by uncollected A/R

⚠ WATCH

Financial Health Ratios

Expense Coverage

99.7%

Revenue barely covered expenses in May — the organization is running lean

Operating Reserve

1.6 mo

About 6–7 weeks of expenses on hand; 3 months is the nonprofit benchmark

A/R Quality

30%

Only 3 in 10 dollars owed are current or recent — 41% are 90+ days overdue

Debt-to-Assets

30.5%

Long-term obligations are manageable at $40,862 against $136,817 in total assets

📋 Before Next Month

The Event

Three residents — David Greenawalt, Joseph Starnes, and Alfred Ashford — have a combined $6,550 that is 90+ days overdue. June is the month for direct payment conversations, not just reminders.

Estimated Impact

Collecting 50% of the overdue balances would bring in approximately $3,275 — more than offsetting this month's cash decline and covering several months of Railside loan payments.

One Action Item

By June 20: Contact David Greenawalt ($3,450 outstanding) and Joseph Starnes ($2,100 outstanding) to arrange a payment plan or make a collectability decision.

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This report is prepared for internal management purposes only. Financial data is sourced from QuickBooks Online on an accrual basis as of May 31, 2026. Figures may be subject to year-end adjustments and do not constitute tax, legal, or investment advice. For questions contact your bookkeeper at Prosynergy Bookkeeping.