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Peninsula-Delaware Annual Conference United Methodist Church

Peninsula-Delaware Annual Conference United Methodist Church. Our Funding Plan for God’s work thru PDAC 2011 Covenant Funding Plan. Rev. Dianne Henry John Halberstadt. Conference Council on Finance and Administration. 2008 – 2011 A Time of Change.

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Peninsula-Delaware Annual Conference United Methodist Church

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  1. Peninsula-Delaware Annual Conference United Methodist Church OurFunding Plan for God’s work thru PDAC 2011 Covenant Funding Plan Rev. Dianne Henry John Halberstadt Conference Council on Finance and Administration CCF&A

  2. 2008 – 2011 A Time of Change “To everything there is a season, and a time to every purpose under the heaven: A time to get, and a time to lose; a time to keep, and a time to cast away;” • Ecclesiastes 3:1,6 CCF&A

  3. 2008 – 2011 A Time of Change • 2008: • Energy costs spike; Global financial crisis; • PDC receipts fall $257k below expectations; Agency distributions cut. • 2009: • PDC receipts forecast reduced $360k; • Spending plan reduced $142k; Difference to be funded from reserves. • Actual receipts $126k above reduced spending plan. CCF&A

  4. 2008 – 2011 A Time of Change • 2010: • PDC receipts forecast $98k higher than (the reduced) 2009; Amount apportioned held constant • Spending plan reduced another $22k; • Spending Plan still $98k above forecast receipts; Difference again to be funded from reserves CCF&A

  5. 2011 Covenant Funding Planchallenge: • Close the gap between spending and receipts, (minimize use of reserves) at the same time • Costs are rising, and • Health Care costs paid by local churches are rising significantly. CCF&A

  6. 2008 – 2011 A Time of Change • 2010: Strategic Financial Task Force (SFTF) chartered. Four areas recommended for action: • Reduce number of clergy / consolidate charges. • Reduce program ministry and other general expenses. • Reduce / consolidate Conference / District support staff. • Reduce number of Districts (if necessary) from 4 to 3 by 2014. CCF&A

  7. 2011 Covenant Funding Plan Impacts of SFTF Recommendations 1. Reduce number of clergy / consolidate charges. - No Impact for 2011 • Reduce number of Districts (if necessary) from 4 to 3 by 2014. - No Impact for 2011 CCF&A

  8. 2011 Covenant Funding Plan Impacts of SFTF Recommendations • Accept the reduction of funding requested by Camp Pecometh ($ -70k) • Reduce planned contributions to the Unfunded Health Care Liability for future retirees. ($ -100k) • Vision Team & CF&A to identify $95,000 of additional reductions. ($ -93k) 2. Reduce program ministry and other general expenses. CCF&A

  9. 2011 Covenant Funding Plan Impacts of SFTF Recommendations • Upgrade information systems to improve efficiency ($+0 in 2011; $126k set aside) • Consolidate 8 support staff positions to 5 (the 4 conference center support staff and the 4 District AA’s will be reduced to 5 positions, all ) ($ -109k) 3. Reduce / consolidate Conference & District support staff. CCF&A

  10. Restructuring OverviewDistrict Options • Proposed budget • Eliminates Conference funding for District offices. • Does not by itself close District Offices • Districts then have options: • Accept SFTF recommended office support / staffing and reduce District Apportionments; • Increase District Apportionments to replace the loss in Conference support for the offices; • Something between (e.g. part time A.A.) CCF&A

  11. Restructuring Overview Local Church Cost Impact • Conference cost eliminated: $109k Effective: 2011 • District cost eliminated if Districts accept recommendation: $109k Effective: 2012 • Districts will need to hold District Conferences 2nd half of 2010 CCF&A

  12. Trends – Actual Receipts CCF&A

  13. 2010 Covenant Funding Plan CCF&A

  14. Covenant Funding Plan CCF&A

  15. TRENDS Annual changes ReceiptsFundingReceipts / Funding 2005 $4,904k $5,154k 2006 $4,993k $4,975k 1.8% / (3.5%) 2007 $5,040k $5,072k 1.0% / 2.0% 2008 $4,882k $4,840k (3.1%) / (4.6%) 2009 $5,025k $4,899k 2.9% / 1.2% 2010 $4,980k(e) $5,078k (0.9%) / 3.7% 2011 $5,078k(e) $5,109k 2.0% / 0.6% CCF&A

  16. 2011 Proposed Covenant Funding Plan Proposed 20102011 • Connectional Ministries $1,557k $1,568k • Healthy Churches Ministries $1,386k $1,377k • Administrative Ministries $ 763k $ 682k • Clergy Support $1,372k $1,482k Total Funding Needs $5,078k $5,109k (+0.6%) CCF&A

  17. Connectional Ministries Approved Proposed 20102011 • World Service $802k $808k • Black College Fund $110k $109k • Ministerial Education Fund $275k $273k • Africa University $ 24k $ 24k • GC Administration Funds $ 87k $ 88k • Interdenominational Co-op Fund $ 21k $ 21k • Episcopal Fund $221k $227k • Jurisdictional Apportionments $ 17k $ 18k Total Connectional Ministries $1,557k $1,568k (+0.7%) CCF&A

  18. Healthy Church Ministries Approved Proposed 20102011 • Vision Team Ministries $ 92k $ 82k • Vital Congregation Ministries $200k $220k • Connectional & Prog. Ministries $733k $739k • Community Transformation $137k $131k • Disciple Making Ministries $ 46k $ 50k • Leadership Dev. Ministries $178k $155k Total Healthy Church Ministries $1,386k $1,377k (-0.6%) CCF&A

  19. Administrative Ministries Approved Proposed 20102011 • Resource Development Mgmt. $592k $617k • District Office Support $109k $ 0k • Episcopal Office Support $ 45k $ 48k • Area Episcopal Committee $ 5k $ 5k • Archives & History $ 12k $ 12k Total Administrative Ministries $763k $682k (-10.6%) CCF&A

  20. Clergy Support Approved Proposed 20102011 • Equitable Compensation $138k $138k • District Superintendent Support $497k $500k • Life Insurance $ 34k $ 34k • Cabinet Relief Fund $ 0k $ 2k • Retired. Clergy Health & Dental $704k$808k Total Clergy Support$1,373k $1,482k (+7.9%) CCF&A

  21. 2011 Apportionment Process Expected Receipts $5,078,033 Adjustments $ 642,737 Additional Est. Shortfall $ 31,520 Total to be apportioned $5,752,290 (Assumes improved 92% payment of apportionments) CCF&A

  22. 2011 Apportionment Calculation CCFA’s recommendation + Average each local church’s net operating expenses for 2006, 2007 and 2008 + Apportion cap of 19% of local church’s 2008 Total Operating Expenses + Apportion proportionally towards 2011 apportionment total $5,752,290 CCF&A

  23. 2011 Covenant Funding Plan Resolution WHEREAS the projected 2011 financial needs of the Peninsula-Delaware Annual Conference total $5,109,553, and …..WHEREAS the Conference Council on Finance and Administration (CCFA) has prepared a proposed covenant funding plan as presented to the Annual Conference …..NOW THEREFORE BE IT RESOLVED that the Peninsula-Delaware Annual Conference adopt the 2011 covenant funding plan as proposed including an apportionment total of $5,752,290 to support our ministry needs for 2011.BE IT FURTHER RESOLVED that the apportionment formula for 2011 be based on the three-year average of 2006, 2007 & 2008 Net Operating Expenses and an apportionment cap of 19% of 2008 Total Operating Expenses. CCF&A

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