COUNCIL ON FINANCE & ADMINISTRATION (CF&A)

2015 PROPOSED BUDGETSHARED MINISTRY APPORTIONMENTS

JUNE 5, 2014GEOF FOWLER

CF&A VP FINANCEView or download presentation at www.nyac.com/conference-budgets

TOPICS 2015 Proposed Budget Highlights Shared Ministry Apportionments

Basics Calculation Adjustments Where does the money go?

2View or download presentation at www.nyac.com/conference-budgets

2015 BUDGET HIGHLIGHTSA. Shared Ministry Apportionments:

$7,994,407 (3.5% decrease vs. 2014B) Allocation of operating budget in seven key areas: 1. Clergy Support 2. Administration3. World Service & Conf Benevolences 4. Africa University

B. Shared Ministry Apportionments Budget consists of:IncomeI. Clergy SupportII. AdministrationIII. World Service & Conf. BenevolencesIV. Other Apportioned Causes

See Proposed 2015 Conference Budget Guide for details3

5. Ministerial Education

6. Missional Priority7. Black College

Fund

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2015 BUDGET HIGHLIGHTS A. SHARED MINISTRY APPORTIONMENTS COMPONENTSIncome:

Registration Fees, Trust Income, Donations

I. Clergy Support: District Superintendent expenses, Retiree Medical benefits net of CBOPHB Contribution, Episcopal Fund*, Clergy Support (vocational change assistance, salary adjustment, move costs, emergency aid), Equitable Compensation, BOOM, Conference share of Bishop’s Housing.

II. AdministrationFinance Office, Conference Sessions, Trustee expenses, Property Administration, CF&A Reserves, Camping, Conference Secretary & Journal, JFON.

III. World Service & Conf. BenevolencesWorld Service Fund*, Conference Benevolences, Parish Development Grants, Campus Ministries.

IV. Other Apportioned CausesMinisterial Education Fund*, Black College Fund*, Missional Priority, Africa

University Fund*

4* General Church Apportionment

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2015 BUDGET HIGHLIGHTS A. SHARED MINISTRY APPORTIONMENTS AMOUNTS

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Total Expenses Above = $8,527,715Less Total Income = 533,308Amount apportioned = $7,994,407

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2015 BUDGET HIGHLIGHTS A. SHARED MINISTRY APPORTIONMENTS INCOME

Proposed 2015 Budget is $533,308 Increase of $17,749 (3.4%) vs. 2014

budget Increase primarily driven by:

Parish Development: $12,950 (increased funding of Congregational Developer)

Archives and History: $10,000 (Fees to host NEJ Conference) All other: $799

Partially Offset by: Conference Sessions: $6,000 (decreased registration fees)

6View or download presentation at www.nyac.com/conference-budgets

2015 BUDGET HIGHLIGHTS A. SHARED MINISTRY APPORTIONMENTS I. CLERGY SUPPORT

Proposed 2015 Budget is $2,685,482 Decrease of $318,315 (10.6%) vs. 2014 budget Decrease primarily driven by:

Increased CBOPHB contribution: $215,700 (due to market performance) Decreased DS parsonage costs: $100,900 (capital now funded by Trustees) Decreased Reserve for Full Funding: $27,200 (relates to CBOPHB

contribution) Decreased DS employee benefit costs: $19,800 (decrease in Uniform Rate) All other: $3,715

Partially Offset by: Increased DS’s & Assistant salary costs: $31,000 (bring in line with market) Increased Technical Support costs: $18,000 (Add IT support for DS offices)

7View or download presentation at www.nyac.com/conference-budgets

2015 BUDGET HIGHLIGHTS A. SHARED MINISTRY APPORTIONMENTS II. ADMINISTRATION

Proposed 2015 Budget is $2,686,961 Decrease of $8,425 (0.3%) vs. 2014 budget Decrease primarily driven by:

Decreased need to fund CF&A Reserves: $50,000 (improved cash flow mgmt.)

Decreased costs for Conference Sessions: $24,800 (tighter cost controls) Decreased Trustee costs: $24,700 (reduced estimates for clergy trials)

Partially Offset by: Increased Assistant to Bishop costs: $37,400 (from ½ time to ¾ time) Increased Finance salary costs: $24,700 (upgrade of Controller, COLA) Increased Archives & History costs: $26,600 (from 3 days to 4 days per

week) All other: $2,375

8View or download presentation at www.nyac.com/conference-budgets

2015 BUDGET HIGHLIGHTS A. SHARED MINISTRY APPORTIONMENTS III. WORLD SERVICE & CONFERENCE BENEVOLENCES

Proposed 2015 Budget is $2,629,597 Increase of $65,663 (2.6%) vs. 2014 budget Increase primarily driven by:

Increased Connectional Ministries: $61,000 (new Admin. Asst, COLA)

Increased Parish Development Costs: $12,800 (Cong. Develop.)

Increased Mission & Outreach costs: $9,300 (additional chaperones)

All other: $5,768

Partially Offset by: Decreased World Service apportionments: $23,205

9View or download presentation at www.nyac.com/conference-budgets

2015 BUDGET HIGHLIGHTS SHARED MINISTRY APPORTIONMENTS SUMMARY

2014 Budget: $8,285,082 2015 Income: Increase of $17,749 (3.4%) 2015 Expense:

I. Clergy Support: Decrease of $318,315 (10.5% )II. Administration: Decrease of $8,425 (0.3% )III. World Service & Conf. Benev. Increase of $65,663 (2.6%) IV. Other: Decrease of $11,849 (2.2% )

2015 Proposed Budget: $7,994,407, -3.5% decrease

10View or download presentation at www.nyac.com/conference-budgets

SHARED MINISTRY APPORTIONMENTS BASICS

Built on desire & commitment to meet needs of God’s family

Smaller gifts combined into larger ones effect transformative change throughout the world

Reflect priorities established by the Annual Conference

Represents requests from Boards, Committees and staff presented to and reviewed annually by CF&A

Once operating budget approved at Annual Conference – Finance office apportions to each church based upon Conference formula

Apportionments based upon certain church expenses reported on a two year lag – not membership rolls.

Example: Church expenses incurred in 2013, reported in 2014 are used to calculate apportionments charged during 2015.

11View or download presentation at www.nyac.com/conference-budgets

SHARED MINISTRY APPORTIONMENTS CALCULATION

Apportionment Base of Church Apportionment Base of Conference (sum of apportionment bases of all churches)

= Apportionment factor: xx.x% x Conference Budget = Apportionment ($)

Example:

Apportionment Base (Table II): • Amount paid to Pastor• Amount paid to Assoc.

Pastor• Accountable

Reimbursements• Salary & Benefits for staff• Program expenses• Office expenses

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$125,000 $33,000,000 = 0.0037878% x $8,000,000 = $30,303

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SHARED MINISTRY APPORTIONMENTS ADJUSTMENTS

Apportionment formula set by Annual Conference Some churches surprised by their apportionments Effort undertaken to scrub submissions for obvious

errors Conference has no significant reserve for “mistakes” Once numbers are communicated and final it is

impossible to make adjustments since they would impact all other churches in the conference (approx. 460).

Review of data prior to submission is therefore critical. Preliminary apportionments are already online at

www.nyac.com “Finance”, “Apportionments” Final apportionments posted in late September/early

October

13View or download presentation at www.nyac.com/conference-budgets

SHARED MINISTRY APPORTIONMENTSWHERE DOES THE MONEY GO?

• 25.5% or $2,038,438 – General Church & NEJ Apportionments: funds the World Service Fund, Ministerial Education Fund, Episcopal Fund, Black College Fund, General Administration Fund, Africa University Fund, Interdenominational Cooperation Fund and NEJ apportionments. See “back-up slides” for details.

• 17.6% or $1,409,584 - Conference Administration: funds the Finance office, Conference Center in White Plains, a portion of Bishop’s office/housing, Bishop’s Assistant & Administrative Assistant, publications of journals & directories, Conference Secretary and contingency funds.

• 14.5% or $1,155,222 - District Superintendents: funds the salaries, benefits, professional expenses and office expenses for our six Superintendents and assistants. Also funds DS parsonage utilities & maintenance.

• 12.6% or $1,010,928 - Conference Programs: Funds Conference Benevolences, Connectional Ministries, Missions & Outreach, website (www.nyac.com), Learning Center, church training programs, district programs (campus, youth, ecumenical, and justice ministries) and grants for local programs.

• 8.6% or $684,777 - Conference Boards & Committees: funds Board of Trustees, Conference Sessions, Camping & Retreat Ministries, Board of Ordained Ministry, Commissions on Archives & History, JFON, CORR, Personnel, Board of Church & Society, Immigration Taskforce and Commission on Sexual Ethics.

14View or download presentation at www.nyac.com/conference-budgets

SHARED MINISTRY APPORTIONMENTSWHERE DOES THE MONEY GO? (CONTINUED)

• 5.8% $462,220 - Clergy Health Benefits: funds the costs of Healthcare Reimbursement Accounts for retirees and health coverage for those on incapacity leave.

• 5.7% or $460,000 - Other Clergy Support: Funds the cost of salary supplements for struggling churches, clergy recruitment & vocational change assistance, emergency aid and move costs for active & retired clergy.

• 4.9% or $393,238 – Reserve for Full Funding: Recognizes that full budget is not collected via apportionments. Reserve to ensure that certain required payments can be funded (e.g. payroll, benefits, taxes for Conference Staff and the costs of retiree healthcare).

• 3.5% or $280,000 – Parish Development: Funds grants to local churches for new missional projects and community programs. About 60% is prioritized for ethnic ministry projects and programs.

• 1.3% or $100,000 – Conference Reserve: used for unforeseen expenses, emergencies and cash flow management.

Total: $7,994,407

15View or download presentation at www.nyac.com/conference-budgets

SHARED MINISTRY APPORTIONMENTSCONFERENCE-PAID APPORTIONMENTS

2015 Budget• World Service Fund $1,028,909• Ministerial Education Fund 353,236• Episcopal Fund 308,592• Black College Fund 140,909• General Administration Fund 124,195• Africa University Fund 31,530• Interdenominational Cooperation Fund 27,639

Sub-total $2,015,010 • Northeast Jurisdiction 23,428

Total $2,038,438 (25.5% of budget)

For more information go to:http://www.gcfa.org/sites/default/files/u3/FinancialCommitment2013-2016.pdf

16View or download presentation at www.nyac.com/conference-budgets

FINANCE CONTACT INFORMATIONFran Collins Accounts Receivable Coordinator

(Apportionments Integrity in Pensions Parish Development loans)

914-615-2223 fcollins@nyac.com

Gail Kamerman Accounts Payable Coordinator (Disbursements)

914-615-2215 gkamerman@nyac.com

Heman Persaud Billing Coordinator(Health Insurance, Pension, CPP, Workers Compensation)

914-615-2232 hpersaud@nyac.com

Sam Rosenfeld Disaster Recovery Finance Manager (Hurricane Sandy grant administration)

914-615-2214 srosenfeld@nyac.com

MaryLynn Salerno Staff Accountant(Statistical Tables, Conference Budget, financial Reporting & Analysis)

914-615-2236 mlsalerno@nyac.com

Susan Tedesco Controller(Accounts Payable, Accounts Receivable, Billing, Audit, Payroll)

914-615-2235 stedesco@nyac.com

Sally Truglia HR and Benefits Administrator(Health Insurance, Pension, CPP, Wellness programs)

914-615-2220 struglia@nyac.com

Ross Williams CFO & Director of Admin. Services 914-615-2212 rwilliams@nyac.com

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