Treasurer’s Report 2010 GC Session

Atlanta, GA

Mission and Local Offerings as Compared to Tithe

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

1970 1980 1990 2000 2008

Mission Offerings Local Offerings Tithe

Mill

ion

s o

f D

olla

rs

Total Offerings as a Percentage of Tithe

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1930 1940 1950 1960 1970 1980 1990 2000 2007

Total Offerings Mission Offerings Local Offerings

Worldwide Tithe & Offerings (Annual Average for 2005-2009 in Millions)

Tithe $1,726

70%

Offerings $732 30%

Tithe & Mission Offerings 2009 Compared to 2008

-9.0%

-8.0%

-7.0%

-6.0%

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

Tithe $-2.6 M or -2.8% Offerings $-4.3 M or -6.3%

-1.8% -2.1%

-6.5%

-8.5%

NAD

Other

$-1.2 M

$-1.4 M

$-.5 M

$-3.8 M

Gross Tithe In Millions

-

500

1,000

1,500

2,000

2,500

2005 2006 2007 2008 2009

North America Other Divisions Extraordinary

Mill

ion

s o

f D

olla

rs

Tithe Offerings

Offerings to GC $60

2.4%

Tithe to GC $84

3.3%

Total Tithe & Mission Offerings (Annual Average for 2005-2009 in Millions)

Phase-In of New Tithe Sharing Formula 2001-2009

40

50

60

70

80

90

100

110

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Old Formula New Formula Phase-In

Mill

ion

s o

f D

olla

rs

Tithe Received Including Tithe Exchange

0

20

40

60

80

100

120

140

160

180

200

2005 2006 2007 2008 2009

Tithe Tithe Exchange Extraordinary Tithe

Mill

ion

s o

f D

olla

rs

Total Mission Offerings In Millions

-

10

20

30

40

50

60

70

80

2005 2006 2007 2008 2009

North America Other Divisions

Mill

ion

s o

f D

olla

rs

Tithe and Mission Offerings to GC 2005 to 2009 In Millions

0

20

40

60

80

100

120

140

160

180

20052006

20072008

2009

$89 $93 $96 $95

$94

$41 $47 $56 $66

$60

Non-NAD

NAD

Mill

ion

s o

f D

olla

rs

Global Mission Income 2005-2009

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2005 2006 2007 2008 2009

Mill

ion

s o

f D

olla

rs

Donations Annual Sacrifice Offering

GC Funds 16%

NAD Hospital

Retirement 42%

NAD General Retirement

12%

Other Entities 30%

2009 Investments Managed by the General Conference

$782.66

$499.56

$254.96

$195.64

$0

$200

$400

$600

$800

$1,000

$1,200

Mar

ket

Val

ue

($

)

Date

S&P 500 Composite Barley Capital Aggregate Bond 3-Mo US T-Bill (S) CPI-U All Items

Growth of $100 Invested In Various Indexes For the Period December 31, 1986 to December 31, 2009

Net Return on GC Owned Investments (Net Market Fluctuations Plus Earnings)

-10

-5

0

5

10

15

20

Mill

ion

s o

f D

olla

rs

GC Owned Investments December 2009

• Operating $128.7 million

• Extraordinary Tithe 88.6 million

• Donor Advised 18.3 million

• Plant Fund 24.5 million

• Endowment Fund 22.8 million

• Other Funds 12.7 million

Total 295.6 million

General Conference Revenue Exclusive of Extraordinary Tithe & Unrealized Gains or losses

(Annual Average for 2005-2009 in Millions)

Tithe $84 44%

Offerings $60 32%

Gifts & Donations $8 4%

Restricted Income $16 8%

Other Operating $23 12%

Ingathering Funds 1990-2008

0

2

4

6

8

10

12

14

16

90 92 94 96 98 00 02 04 06 08

Mill

ion

s o

f D

olla

rs

Funds to the Church Through Planned Giving and Trust Services

0

50

100

150

200

250

300

350

400

22.2

53.9

112.7

178.5

197.4 219.7

263.8

351.7

Mill

ion

s o

f D

olla

rs

General Conference Expenditures Exclusive of Extraordinary Tithe

(Annual Average for 2005-2009 in Millions)

Appropriations $78 44%

GC Headquarters $36 20%

GC Administrated $39 22%

IDE (Missionaries) $21 12%

Other $3 2%

GC Budget Expenditures Exclusive of Extraordinary Tithe

(5 Year Comparative)

0

10

20

30

40

50

60

70

80

90

2005 2006 2007 2008 2009

Mill

ion

s o

f D

olla

rs

Appropriations

GC Headquarters

GC Administered Funds

Interdivision Employees

Other

Appropriations

Appropriations $78 Million 44%

Appropriations to the World Field through Divisions 2009

(Exclusive of Extraordinary Tithe)

0

1

2

3

4

5

6

Mill

ion

s o

f D

olla

rs

Appropriations to the World Field as a Percentage of Gross Tithe by Division - 2009

0%

10%

20%

30%

40%

50%

60%

70%

80%78%

Appropriations to GC Institutions 2009 (Exclusive of Extraordinary Tithe)

0

2

4

6

8

10

12

Mill

ion

s o

f D

olla

rs

Appropriations to GC Institutions as a Percentage of Gross Revenue in 2009

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

General Conference Auditing Service GC Portion of GCAS Cost

0

1

2

3

4

5

6

7

8

9

10

Mill

ion

s o

f D

olla

rs

Interdivision Employee Expenses (Missionaries)

IDE (Missionaries) $21 Million 11%

Interdivision Employee (Missionaries)Funding Actual Compared to Budget

12

14

16

18

20

22

24

26

Mill

ion

s o

f D

olla

rs

Actual Expense Budget

0

0.5

1

1.5

2

2.5

AIIAS AUA ECD ESD EUD IAD NSD SAD SID SSD SUD TED WAD

Div/Inst ADRA GCAS

Mill

ion

s o

f D

olla

rs

Cost to GC for Interdivision Employees By Division or GC Educational Institution-2009

Cost to GC for Interdivision Employees

by GC Division or GC Institution - 2009

0

0.5

1

1.5

2

2.5Appropriations

Mill

ion

s o

f D

olla

rs

GC Administered Funds

GC Administered $39 Million 21%

GC Administered Funds Average Annual Expense 2005-2009

• Adventist Missions (Global Missions) $7.8 million

• Hope Channel 4.7 million

• Adventist World 4.4 million

• Charitable Gift Fund Appropriations 4.0 million

• Disaster and Famine Relief 2.5 million

• 13th Sabbath School Projects 2.2 million

• GC Session Costs 1.2 million

GC Administered Funds

0

10

20

30

40

50

60

2005 2006 2007 2008 2009

Funds

Mill

ion

s o

f D

olla

rs

Largest GC Administered Funds

0

5

10

15

20

25

2005 2006 2007 2008 2009

Hope Channel Adventist Mission Adventist World

Mill

ion

s o

f D

olla

rs

GC Headquarters Operations

GC Headquarters $36 Million 19%

GC Headquarters Operating Compared to Spending Limit Set by GC Executive Committee

10

15

20

25

30

35

40

45

Mill

ion

s o

f D

olla

rs

Actual Expenses Spending Limit (Cap)

GC Headquarters Operating Compared to

Total World Tithe and Offerings -2008

Total World Tithe and Offerings

GC Operations 1.6%

Balance Sheet – Total Assets December 31,2009

Cash & Equivalents $75 Million

Total Assets $399 Million

Accounts Receivable $39 Million

Notes and Loans Rec

$.4 Million

Inv\Prepaids $2.2 Million Plant Assets

$35 Million

Other Assets $71 Million

Extraordinary Tithe Extraordinary Tithe

Investments $176 Million

Cash Equivalents Plus Short Term Investments

0

50

100

150

200

250

300

2005 2006 2007 2008 2009

Regular Funds Extraordinary Tithe

Mill

ion

s o

f D

olla

rs

Balance Sheet–Liabilities and Net Worth December 31, 2009 Millions of Dollars

Net Assets, $305

Accounts Payable, $80.2

Agency Funds, $0.8

Deferred Income, $0.3

Other Liabilities, $13.5

Extraordinary Tithe

Total Operating Fund Net Assets (Net Worth in Millions)

Mill

ion

s o

f D

olla

rs

0

50

100

150

200

250

2005 2006 2007 2008 2009

$114 $137 $141 $143

$162

$81

$35

$37

Net Assets Extraordinary Tithe

Plant Fund - Fixed Assets and Unexpended Funds

0

10

20

30

40

50

60

2005 2006 2007 2008 2009

Mill

ion

s o

f D

olla

rs

Net Invested in Land, Buildings & Equipment Unexpended Plant Funds

Hope Channel Studio

Endowment Fund-Net Assets

0

5

10

15

20

25

30

2005 2006 2007 2008 2009

Mill

ion

s o

f D

olla

rs

Quasi Endowments Permanently Restricted Endowments

Endowments Comparing 2004 and 2009

0

2

4

6

8

10

12

14

16

18

AWR Other Adventist

Mission

Mill

ion

s o

f D

olla

rs

2005 2009

Working Capital 2005-2009

Exclusive of Extraordinary Tithe

0

20

40

60

80

100

120

140

160

180

2005 2006 2007 2008 2009

Actual Working Capital

Recommended Working Capital

101% 106% 107% 105% 109%

Mill

ion

s o

f D

olla

rs

Supplemental Budgets 2000-2009

0

1

2

3

4

5

6

7

8

9

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Phase in of Tithe Sharing & Cap

Mill

ion

s o

f D

olla

rs

Liquidity Calculation Exclusive of Extraordinary Tithe

0

20

40

60

80

100

120

140

160

2005 2006 2007 2008 2009

Mill

ion

s o

f D

olla

rs

Current Liquid Assets Commitments

128%

158%

133% 161%

148%

General Conference Budget as a Percentage of Total Tithe and Mission Offerings

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1930 1940 1950 1960 1970 1980 1990 2000 2009

Healthcare, Education,

Publishing, etc

Church, Conf, Union, Div GC

Headquarters

GC Appropriations,

IDEs, etc

2009 Revenue by Line of Work Compared to GC Budget

2009 Figures are Best Estimates

23%

1.2%

.3%

We can see only a little way before us; “but all things are naked

and opened unto the eyes of Him with whom we have to do.”

He never becomes confused. He sits above the confusion and

distractions of the earth, and all things are opened to His divine

survey; and from His great and calm eternity He can order that

which his providence sees is best.

If we were left to ourselves to plan, we should make mistakes.

Our prejudices, our weaknesses, our self-deceptions, and our

ignorances would be manifest in many ways. But the work is

the Lord’s, the Cause is His; He never leaves His workmen

without divine directions.

The servant of the Lord, Ellen White, wrote in

My Life Today, Page 10

Thank you.