December 2013 Financial Update

Monthly Financial Update

Conference Budget – Schedules A & B:
Please reference SCHEDULE A and SCHEDULE B for a summary of the conference budget for December 2013.

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 economic struggles of many churches we are pleased and grateful for the commitment made by many to support this vital ministry.

The conference expense budget was managed very effectively in 2013 by all committees, 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 Pension Liability according to Resolution 2012-21. There is good news to report as the year 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 surplus directed to the Pre 82 Pension Liability, has produced a total of $731,381, ($529,298 in 2013 and $202,083 in 2012).

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 December 2013 with comparative information for the two previous years, 2012 and 2011. Churches paid a total of $17.1 million in 2013 or 90% of the amount billed. In 2012, churches paid a total of $17.9 million or 90% of the amount billed. In 2011 the percentage paid was also 90%. A full report listing all funds for all churches is provided each month to CCFA and the Cabinet.

Resolution 2012-21 Update:
Please reference SCHEDULE D and SCHEDULE D-1 for an update of proceeds generated from two of the strategies identified in Resolution 2012-21. Schedule D summarizes the conference budget results for years 2012 and 2013. In 2012, the budget produced a surplus of $494,744 and a total of $202,083 was directed to the Pre-82 Pension and $292,661 to the Conference Reserves. An account for the Pre-82 Pension was established at Fulton Bank, managed by the Mid Atlantic Foundation of the United Methodist Church. The amount at year end 2012 of $202,083 had grown to $226,721.05 at December 31, 2013.

Beginning in 2013 any surplus generated from the conference budget, was to be directed only to the Pre-82 Pension Liability because the conference reserve requirement of $650,000 has been met. The good news to report is that at December 31, 2013 the conference budget produced a total of $529,298 to be directed to the Pre-82 Pension Liability. The total after two years for the First Tier of the Strategy in Resolution 2012-21 is $756,019.

As to the strategy in the resolution on church sales, Schedule D-1 shows that 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, twenty five percent (25%), or $99,629 to the EPA Board of Trustees and twenty five percent (25%) or $99,629 to New Church development and Re-Development of older churches. Separate accounts for each of the three funds are established at Fulton Bank and managed by the Mid Atlantic Foundation of the United Methodist Church.

A total from these two strategies directed to the Pre-82 unfunded liability after two years is $962,435. Fulfilling Our Covenant Stewardship Campaign is the third strategy included in Resolution 2012-21. The goal was to raise a minimum of $3 million. To date, a total of $3.4 million has been pledged from individuals and churches and $696 thousand has been paid.