April 26, 2019
On a quarterly basis, I have been sending a Summary Budget Report to the members of our Annual Conference. This is an effort to report back to those who voted and approved this budget and update you on our Conference Finances. The final quarterly report for each year usually takes a little longer to compile. So here it is!
As previously reported, mid-year 2018 the Council on Finance & Administration (CF&A) reviewed projections for apportionment receipts and determined that the receipts would be inadequate to cover the budgeted expenses. The Conference budget was reduced by 10% for each board and agency.
For 2018, apportionment receipts totaled $6,611,580 or 79.9% of the gross amount apportioned to local churches. This is a decrease of $18,045 or 0.2% from the 2017 receipts ($6,629,625). The percentage paid for the past five years has ranged between a low of 79.9% and a high of 82% (2015). We had 273 churches give 100% of the amount apportioned to them.
Total expenses were $6,466,658 and the addition to the cash reserve was $144,922. Expenses decreased by $376,464 compared to 2017. This decline was a direct result of the mid-year budget revision which led to staff reductions, the cancellation of some ministry events/activities, and the withholding of financial support from some churches and organizations. Difficult decisions were made by our Conference boards and agencies so that we could reach some financial stability. It is important to note that in 2018, we continued to pay our apportionments to the General Church in full in compliance with Conference Policy 10.3.0 General Conference Apportionments.
The cash reserve balance at the end of 2017 was $298,155. We were able to add $144,922 to the cash reserve for a 2018 balance of $443,077. Per Conference Policy 10.6.0 “The Council shall establish a goal of 10% of the Conference budget as the cash reserve”. The 2018 cash reserve goal was $662,963.
Fourth Quarter Ministry Highlights