1. COUNCIL ON FINANCE & ADMINISTRATION (CF&A) 2017 PROPOSED BUDGET SHARED MINISTRY APPORTIONMENTS June 9, 2016 Geof Fowler CF&A President 1 View or download presentation at http://www.nyac.com/cfa

2. 2017 BUDGET HIGHLIGHTS 2 View or download presentation at http://www.nyac.com/cfa Total = $8,254,282 An increase of 1.4% over 2016

3. Ten Year Budget History 3 View or download presentation at http://www.nyac.com/cfa Ten year Compound Annual Growth Rate = -0.4%

4. 2016 BUDGET HIGHLIGHTS SHARED MINISTRY APPORTIONMENTS I. CLERGY SUPPORT 4 View or download presentation at http://www.nyac.com/cfa Proposed 2017 Budget is $2,931,382 Increase of $130,440 (+4.7%) vs. 2016 budget Increase primarily driven by: Decrease in BOPHB contribution to retiree health benefits due to market losses New part-time administrator position for BOOM Partially Offset by: Reduction in expected retiree health benefit costs (HRAs) Reduction in expected HealthFlex costs for those on incapacity

5. 2016 BUDGET HIGHLIGHTS SHARED MINISTRY APPORTIONMENTS II. ADMINISTRATION 5 View or download presentation at http://www.nyac.com/cfa Proposed 2017 Budget is $2,341,324 Decrease of $80,603 (-3.3%) vs. 2016 budget Decrease primarily driven by: Reduced funding for Clergy Trials Reduced need for funding of Episcopal Office Reduced funding for Conference Center IT projects Elimination of funding for General & Jurisdictional Conference (no gatherings in 2017) Higher anticipated Annual Conference registration fee income Partially Offset by: Greater number of conference staff participating in HealthFlex

6. 2016 BUDGET HIGHLIGHTS SHARED MINISTRY APPORTIONMENTS III. WORLD SERVICE & CONF. BENEVOLENCES 6 View or download presentation at http://www.nyac.com/cfa Proposed 2017 Budget is $2,464,374 Increase of $61,572 (+2.6%) vs. 2016 budget Increase primarily driven by: Addition of a full-time Disaster Recovery staff position to capitalize on structure built for Sandy recovery efforts For 2017 UMCOR funding one half of costs - if funding does not continue beyond 2017, Conference will have opportunity to decide if position should be continued at full-time, reduced or eliminated Partially offset by: Reduced funding of the Quadrennial Mission Focus Fund Reduced funding needed for the Mission & Outreach office

7. 7 View or download presentation at http://www.nyac.com/cfa IV. OTHER APPORTIONED CAUSES Proposed 2017 Budget is $ 517,203 Decrease of $435 (+0.1%) vs. 2016 budget Budget is essentially flat from 2016 to 2017

8. 2017 BUDGET HIGHLIGHTS SHARED MINISTRY APPORTIONMENTS COMPONENTS I.Clergy Support District Superintendent expenses, Retiree Medical benefits net of BOPHB Contribution, Episcopal Fund*, Equitable Compensation, Clergy Support (vocational change assistance, salary adjustment, move costs, emergency aid), BOOM, Conference share of Bishop’s housing. II.Administration Finance & Administration, Conference Center costs, Trustee expenses, Conference Sessions, Camping support, Episcopal Office, General Administration Fund*, Archives and History, JFON, CORR, CF&A Reserves, Conference Secretary & Journal, CORR. III.World Service & Conference Benevolences World Service Fund*, Conference Benevolences (programs & outreach), Connectional Ministries, Parish Development, Mission & Outreach, Disaster response. IV.Other Apportioned Causes Ministerial Education Fund*, Black College Fund*, Africa University Fund*. * Apportionments from the General Church 8

9. 2017 BUDGET HIGHLIGHTS SHARED MINISTRY APPORTIONMENTS SUMMARY 9 View or download presentation at http://www.nyac.com/cfa 2017 Proposed Budget: $8,254,282, +1.4% increase I.Clergy SupportIncrease of $130,440 (+4.7%) II.AdministrationDecrease of $80,603 (-3.3) III.World Serv. & Conf. BenevolencesIncrease of $61,572 (+2.6%) IV.OtherDecrease of $435 (-0.1%) 2016 Budget: $8,143,308

10. STEWARDSHIP 10 View or download presentation at http://www.nyac.com/cfa 90%! 2014 apportionment collection rate was 86% 2015 apportionment collection rate was 88% 2017 budget presumes a further increase in giving to 90%

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12. 12 SHARED MINISTRY APPORTIONMENTS BASICS Built on a desire & commitment to meet needs of God’s family. Concept of smaller gifts combined into larger ones effect transformative change throughout the world. Reflect priorities established by the Annual Conference. Represent requests from Boards, Committees and Staff presented to, and reviewed annually by CF&A. Once budget is approved at Annual Conference, Finance office apportions each church their share based upon Conference formula. Apportionments are based upon certain church expenses reported on a two year lag – not membership rolls. Example: Church expenses incurred in 2015, reported in 2016, are used to calculate apportionments for 2017. View or download presentation at http://www.nyac.com/cfa

13. 13 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 Review of data prior to submission is therefore critical. Preliminary apportionments are already online at www.nyac.com “Finance”, “Apportionments”www.nyac.com Finance staff available to meet with churches on Apportionments Final apportionments will be posted in late June. View or download presentation at http://www.nyac.com/cfa

14. 14 SHARED MINISTRY APPORTIONMENTS WHERE DOES THE MONEY GO? 24.3% or $2,011,658 – 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. 16.5% or $1,357,792 - 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. 15.9% or $1,313,880 - District Superintendents: funds the salaries, benefits, professional expenses and office expenses for our six Superintendents and assistants. Also funds DS parsonage utilities & maintenance. 13.0% or $1,076,806 - Conference Programs: Funds Conference Benevolences, Connectional Ministries, Missions & Outreach, Disaster Recovery, website (www.nyac.com), Learning Center, church training programs, district programs (campus, youth, ecumenical, and justice ministries) and grants for local programs. 9.4% or $773,064 - 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.

15. 15 SHARED MINISTRY APPORTIONMENTS WHERE DOES THE MONEY GO? (continued) 7.1% or $583,722 - Clergy Health Benefits: funds the costs of Healthcare Reimbursement Accounts for retirees and health coverage for those on incapacity leave. 5.1% or $420,000 - 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. 4.7% or $387,360 – 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). 3.4% 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. 0.6% or $50,000 – Conference Reserve: used for unforeseen expenses, emergencies and cash flow management. Total: $8,254,282 View or download presentation at http://www.nyac.com/cfa

16. 16 SHARED MINISTRY APPORTIONMENTS 2017 Budget World Service Fund $1,012,320 Ministerial Education Fund 347,545 Episcopal Fund 304,726 Black College Fund 138,633 General Administration Fund 122,184 Africa University Fund 31,025 Interdenominational Cooperation Fund 27,181 Sub-total $1,983,614 Northeast Jurisdiction 28,044 Total $2,011,658 (24.3% of budget) View or download presentation at http://www.nyac.com/cfa

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