July 2014 Financial Update

Conference Budget – Schedules A&B

Please reference Schedule A and Schedule B for a summary of the conference budget through July 2014. As a result of the faithful giving of EPA local churches to the connectional ministries fund or CMF we ended 2013 with a very strong result of $3,279,179. While this was short of the budget goal of $3.4 million by $120,821 or 3%, it was a reasonable variance. Given the ongoing struggles of many churches we are pleased and grateful for the commitment made by many to support this vital ministry.

Through seven months of 2014 giving from local churches to CMF was $1,719,196. This was $264,137 less than budget and $97,619 less than the amount received from July 2013. An analysis after six months shows that 221 churches, 53% are on budget. However, there are 131 churches or 31% that are more than three months behind. Sixty-Five (65) churches have paid zero through six months toward CMF. The district offices and CCFA are kept abreast of this and will follow up.

The conference expense budget was managed very effectively in 2013 by all committee, boards, agencies and others. Total expenses were $2,749,881, $100,255 or 3.5% less than the 2013 budget of $2,850,136, and $156,994 or 5.4% less than 2012 expenses. In addition, the 2013 conference budget included a line item of $549,864 to be directed to the Pre-82 Unfunded Liability. The good news is that 2013 ended producing $529,298 to the Pre-82 Pension Liability only $20,566 or 3.7% short of the budget goal. Lower expenses helped to offset the shortfall in giving. In the first two years under resolution 2012-21, the conference budget directed a total of $731,381 to the Pre-82 Pension Liability.

Through seven months of 2014, conference expenses totalled $1,691,661, and were $102,079 or 5.7% less than budget. For cost center budgets, reference Schedule B.

Church Giving All Funds – Schedule C

Schedule C is a summary of all funds billed to the EPA local churches showing the amount billed, amount paid and balance remaining. This information is reported for the current year through July 2014 with comparative information for the previous year at the same period. In addition, the schedule shows the paid results for three previous full years, 2013, 2012 and 2011. Through July 2014 a total of $8.8 million or 48% of the total billed was paid by local churches for all funds. This result is 3% less than the amount paid by local churches for all funds at the end of July 2013 when churches paid a total of $9.6 million or 51% of the total billed.

A full report listing all funds for all churches is provided each month to CCFA and the Cabinet.

Update Resolution 2012-21

The 2013 conference budget included a line item of $549,864 to be directed to the Pre-82 Unfunded Liability according to Resolution 2012-21. The year ended producing $529,298 to the Pre-82 Pension Liability only $20,566 short of the budget goal. In the first two years under resolution 2012-21, the conference budget directed a total of $731,381 to the Pre-82 Pension Liability. The balance in this account as of June 30, 2014 is $777,023. As to the strategy in the resolution on church sales, since the resolution was passed there have been four church sales that generated net proceeds of $398,516. Fifty percent (50%) or $199,258 has been directed to the Pre-82 Pension Liability and the balance in the account as of June 30, 2014 is $216,089.

A total, from these two strategies directed to the Pre-82 unfunded liability after two years is $993,112. Fulfilling Our Covenant Stewardship Campaign is the third strategy included in Resolution 2012-21. The goal was to raise a minimum of $3 million. As of August 8, 2014, a total of $3,729,414 has been pledged from individuals and churches and $1,132,403 has been paid. From this total, $940,871 belongs to the campaign and $191,532 goes back to the churches that conducted a local campaign. To date, expenses are $352,465 and payments to churches totaled $149,021. Separate accounts for each fund are established at Fulton Bank and managed by the Mid Atlantic Foundation of the United Methodist Church.

2013 Audited Statements

The 2013 audited financial statements for the following nine organizations have been completed and are posted on the Conference web site. If you have any questions, please contact Peter T. DiNofia, EPA Conference Treasurer.