2018 STEWARDSHIP PRESENTATION 1/17/2019 8:39 PM 2018 STEWARDSHIP PRESENTATION MORAVIAN CHURCH SOUTHERN PROVINCE © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

2019 PROVINCIAL BUDGET At a Glance……

1/17/2019 8:39 PM 2019 Provincial Share SYNOD 2018 RESOLUTION 10

New Share Methodology Resolution 10… . (4) Tiers Percentage set for (4) years “Point System” Based on previous year’s Line 1 income

Average Worship Attendance Average Attendance Points >150 4 >125; <150 3 >80; <125 2 >50<80 1 <50

Line 1 Income Points > $250,000 4 > $180,000; < $250,000 3 > $140,000; < $180,000 2 > $75,000; < $140,000 1 < $75,000

Years Relief Granted Relief Points 4 years -4 3 years -3 2 years -2 1 year -1

Meets Share Obligation Points Always 3 Struggles 2 Does Not 1

Transfers From or To Investments Reserves Points To 3 From -1 Neither

Reserve Cushion How long can your church cover operating expenses if you have to live off of “Funds”?

Reserve Cushion % of Operating Expenses Example: Total Unrestricted Reserves = $550,000 Total Operating Expenses = $150,000 $550,000/$150,000 = 3.67 3.67 is added to your total points

Unrestricted Reserves Cash (Checking, Savings & Money Market Accounts) Funds that support operations Unrestricted funds and endowments Board designated funds and endowments

Percentage Points Ranges Target % Adjusted % 2019 > 10 pts 18 19.25 <10->7.5 pts 15 16.25 <7.5->2.25 pts 12 13.25 <2.25 pts 10 11.25

Advantages Percentage calculated for 4 years Points measure health of congregation and their ability to pay. Prior formula penalizes the smaller churches while benefiting the large. Churches are not penalized for using investments to stay viable

2019 Provincial Share 2019 Calculated Provincial Share $1,953,064 Reduction in Budgets) (221,821)

2019 PROVINCIAL SHARE STEP DOWN APPROACH

2019 Provincial Share Stepdown Approach 2019 Adjusted Share $2,135,604 Less 7 % Shortfall (149,492) 2019 Budgeted Share Dollars $1,986,112 Adjusted Share Reduction $(70,553)

Pre-Relief….. 6 churches Total $31,272 Balance of “Shortfall” $118,220

Where Your Share Dollars Go….

2019 Total Provincial Budget 2019 2018 Change % Missions/Outreach $ 418,061 $ 429,275 (11,214) -2.6% Church Support 1,856,346 1,926,649 (70,303) -3.6% Ministerial Support 810,918 873,019 (62,101) -7.1% Supporting Services 225,824 231,565 (5,742) -2.5% Total $3,311,149 $3,460,508 (149,360) -4.3%

2019 PROVINCIAL BUDGET 1/17/2019 8:39 PM © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

2019 Provincial Budget Monthly Pension Charge 96,600 Provincial Share $1,986,112 Other Revenue Items: Charitable Remainder Trust 17,860 Laurel Ridge 653,814 Investment Income & Transfers 236,657 Contributions 101,500 Financial Office/HR Charges 111,588 Salem Congregation 99,867 Monthly Pension Charge 96,600 Sale of Literature & Guest Services 7,150 Total Other $1,325,036 Total Revenue $3,311,148

2019 Budget Process Major Factors: 45% increase in Ministerial Student Aid Synod 2022 Budget -$100 charge per delegate Paycor 7% increase in fees 25% increase in property insurance 7% shortfall budgeted Retirement funding 15.5% decrease Agency employees salaries frozen Salem Congregation 10% rent decrease Cedarhyrst and Boys School

Reminders Budgets are due December 15th File for Sales Tax Refunds Review the values placed on your property in your insurance booklet. Keep the book for claim references. Distribute share graph to your congregation Health Insurance renewal January 1, 2019. Enrollment meetings in November Safety seminar October 27th, 10am – 2pm, Home Moravian We have a new website!

Audits Due date: April 15th “Resolved, If the data required by the Provincial Share Formula is not delivered by July 31 of any year, prior year data will be used to compute Provincial Share. Current data – if received – may be used at the discretion of the PSSB” Policy made and Approved September 16, 2018 by PSSB

Audits List all Investment and Endowment Be specific on Restrictions Is it Board or Donor Restricted? Separate Principle and Income on Endowments.

Provincial Share Payments are due monthly. Problems? Call me! 336-793-0093 Pay something…. Send a letter to the PEC if you need to request relief or an adjustment

1/17/2019 8:39 PM Questions??? ? © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

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