Connecticut Conference of the UCC

2014 Budget HearingsCharlie Kuchenbrod

Finance & Development Team Leader

Our Shared Vision“That they may all be one”

Community

Inter-dependence

Testimonies

Vision

Leadership

Vitality

Engaging Worship

The budget is the financial

representation of our

aspirations

Connecticut Conference

Missionary Society of Connecticut (MSC)Conference operations

Silver LakeConsolidated Trust Fund

Trustees of the Fund for Ministers (TFM)

Endowments supporting the general welfare of the

ministry

Asset ClassificationDetermined by Donors!

Restricted• Duration – Endowments• Purpose

Unrestricted• Board-Designated – Functioning as Endowment• Board-Designated – Reserve Funds• Equity in Property and Equipment• Undesignated

Conference Assets 12/31/13

MSC TFM Total$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

Restricted Quasi-Endowments Property Other

Conference Assets

2007 2008 2009 2010 2011 2012 2013$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

MSC TFM Total

Market Crash

Board-Designated Reserve Funds

2005 2013Pre-paid fees $6,677 $20,602Smoothing accounts $43,422 $67,878Savings accounts $40,000 $211,379Silver Lake - $61,946Other $14,113 $220,215Total $104,212 $582,020

Audited Financial Statements

•www.ctucc.org/reports/2013• Introduction with links•Other reports for 2013 also

found here!

Revenue Trends 2008 – 2013

OCWM

Basic S

upport

Per Cap

ita Contri

butions

Investm

ent Inco

me$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

20082013

Thank You!!!

CTUCC Mission & Ministry

Per Capita Contributions

OCWM Basic Support

Friends of the

Conference

Budget Balancing “Levers”

• Lever 1: Reduce expenses• Lever 2: Raise Per Capita Rate• Lever 3: Increase Retention Rate• Lever 4: Use assets to support spending

Lever 1: Reduce Expenses

• Most discretionary non-staffing expenses have been sharply cut or eliminated over past 12 years.

• Recent Staffing reductions:– 2013 Regional Minister– 2014 Generosity Ministries

Lever 2: Increase Per Capita Rate

19951996

19971998

19992000

20012002

20032004

20052006

20072008

20092010

20112012

20132014

2015$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

Lever 3: Increase Retention Rate(OCWM Basic Support retained in CT)

• 1980-86 = 25%• 1987-94 = 35% (Per Capita eliminated)• 1995-2012 = 37% (Per Capita restored)• 2013-15 = 50%

Lever 4: Use Assets to Support Spending

• Transition era – used “rainy day funds”• 2014 – Silver Lake supplemental capital

budget

MSC 2015 General Fund Revenue Change Forecast

• Basic Support down 5% ($36,284)• Endowment Income up 3% $24,317• Per Capita Contributions -• Friends of the Conference -• Reclassify New American Fund $33,876• Pastoral Excellence Program (fee) $20,000• Other Fee Income $3,371

• Total $45,280

MSC 2015 General Fund Expense Change Forecast

• Mission($1,849)

• Program$62,381

• Support$13,663

• Staffing($9,209)

• Total$46,202

Program Choices +$62,381

• Leadership & Cong’l Vitality $20,000• Pastoral Excellence (fee)

$20,000• SCRM increase

$18,784

• Total Sacred Conversation on Race Ministry (SCRM) funding $55,000

Support Choices +$13,663

• Leadership & Cong’l Vitality $7,550• Virtual Meeting Center

$2,400

Staffing Choices ($9,209)

• Trade Clergy Concerns for Leadership Transitions

• Trade Generosity Ministries for Leadership & Congregational Vitality

• Continue Youth & Young Adult Ministry Support

• Other adjustments for new responsibilities• COLA and benefit expense increases

Generic BudgetBudget Unrestricted Restricted

Revenue $X,XXX,XXX $R,RRR,RRR

Expense ($Y,YYY,YYY) ($R,RRR,RRR)

Preliminary Result $ZZ,ZZZ $0

Transfer to Reserve Funds ($ZZ,ZZZ) NA

Transfer From Reserve Funds - NA

General Fund Surplus/Deficit $0 $0

Board- Designated Funds Surplus/Deficit $0

Non-Operating Activity Surplus/Deficit NA

MSC (w/SLCC) 2013 Resultsincludes Now For The Future activity

Audited Results Unrestricted Restricted

Revenue $3,135,620 $1,528,495

Expense ($3,039,268) ($1,753,520)

Preliminary Result $96,351 ($225,025)

Transfer to Reserve Funds ($43,189) NA

Transfer From Reserve Funds - NA

General Fund Surplus/Deficit $53,162

Board-Designated Funds Surplus/Deficit ($118,305)

Non-Operating Activity Surplus/Deficit $2,271,222

MSC (w/o SLCC) 2015 Budgetexcludes Now For The Future activity

Budget Unrestricted Restricted

Revenue $2,196,367 $1,288,437

Expense ($2,187,290) ($1,288,437)

Preliminary Result $9,078 $0

Transfer to Reserve Funds ($43,874) NA

Transfer From Reserve Funds $34,784 NA

General Fund Surplus/Deficit $0

Board- Designated Funds Surplus/Deficit ($94,386)

Non-Operating Activity Surplus/Deficit $0

Transfer to Reserve Funds

• Reminder – Reserve Funds are unrestricted assets designated by the Board for specific purposes.

• 2015 Budget Allocations:– Interim Staffing

$5,000– Recruitment and Relocation $12,000– Synod Delegates

$8,000– SCRM

$18,784

Transfer from Reserve Funds

• Pulling the “Use assets to support spending lever”

• Utilizing $34,707 of Staffing Fund– This is a “savings account”– Balance will be reduced from $250,302 to

$215,595

Sacred Conversation on Race Ministry

• 2013 = $25,000• 2014 = $35,000• 2015 = $55,000• Total = $115,000

Support for Silver Lake

• Silver Lake generates revenue – user fees• Conference Support:– Operating support (unrestricted revenue) -

$129,807– Supplemental Capital Budget (unrestricted assets)

- $100,000

For the Trustees of the Fund for Ministers98% of revenue is due to investment income and markets are up.

Board Recommendations

MSC TFMUnrestricted – General Fund

$2,187,290 $297,825

Restricted $1,288,437 $220,042Total $3,475,727 $517,867

New Patterns of Giving

• Planned Giving/Bequests• Affectional Giving• Fundraising for specific projects• Grants