PeninsulaDelaware Annual Conference United Methodist Church

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Peninsula-Delaware Annual Conference United
Methodist Church
Our Funding Plan for Gods work thru PDAC 2009
2010 Covenant Funding Plan
Rev. Dianne Henry John Halberstadt
Conference Council on Finance and Administration
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Funding Projection Process

• CCFA assesses anticipated income
• CCFA advises the Vision Team of funding available
• VISION TEAM and CCFA receive funding requests
  from .

Episcopacy Boards and Agencies Conference
Leadership Teams

• CCFA compiles a preliminary funding plan
• VISION Team and CCFA engage ALL teams, boards
  and agencies to strike a balance of
• Funding needs with financial resources
• CFA Makes a recommendation to annual conference

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Trends - Receipts
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Covenant Funding Related Activities Underway

• Develop and implement a revised Plan for 2009
• Develop for Annual Conference approval a Plan for
  2010 based on current economic realities.
• Develop and implement a new approach to the
  apportionment review process. (Apportionment
  Attainment Task Force)
• Select and implement actions to reduce long term
  conference cost position. (Strategic Financial
  Positioning Task Force)
• Improve effectiveness of new church starts and
  existing church revitalization to grow the
  ministry of Jesus Christ. (CDC et. al. led
  effort)
• Improve effectiveness of evangelism in support of
  existing churches. (Evangelism and Outreach team
  led effort)

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2009 2010 Budget Process Objective

• To develop 2010 and revised 2009 Covenant Funding
  Plans in a way that
• Updates 2009 2010 receipts based on 2008
• Identifies/considers all Conf. financial
  resources
• Involves all program teams and agencies in
  dialogue
• Is timely to allow agencies to adjust early in
  2009
• Identifies contingencies for even lower receipts
• So that
• Financial support of the Conference Mission is
  optimized.
• Lower receipts can be addressed without impacting
  ministries to the poor
• Time is made available for selecting and
  implementing longer term structural changes

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Trends - Receipts
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2009 Funding Plan
Note CCFA anticipates total expenditures by
Boards Agencies to be 5,100K utilizing
201,000 in carry-over funds available as of
12/31/2008
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2010 Funding Plan
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2010 Funding includes

• 100 of General Church apportionments
• 3 increase for salaries and benefits
• Potential adjustments of 772K

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TRENDS
Receipts Funding (annual change)
2005 4,904M 5,154M ( 3.5) 2006
4,993M 4,975M ( -3.3) 2007 5,040M 5,072M (
2.0) 2008 4,882M 4,840M ( -4.6)
2009 Rev. 4,882M 4,899M (
1.2) 2010 4,980M 5,078M ( 3.7)
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2009 Proposed RevisedCovenant Funding Plan

• Orig. Rev.
• 2009 2009
• Connectional Ministries 1,542K
  1,542K
• Healthy Churches Ministries 1,465K 1,147K
• Administrative Ministries 761K
  750K
• Clergy Support 1,474K 1,460K
• Total Funding Needs 5,242K
  4,899K
• 
  (-6.5)

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2010 Proposed Covenant Funding Plan

• Rev. Proposed
• 2009 2010
• Connectional Ministries 1,542K
  1,557K
• Healthy Churches Ministries 1,147K 1,386K
• Administrative Ministries 750K
  763K
• Clergy Support 1,460K 1,372K
• Total Funding Needs 4,899K
  5,078K
• 
  (3.7)

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Connectional Ministries

• Orig. Rev. Proposed
• 2009 2009 2010
• World Service 792K 792K
  802K
• Black College Fund 109K 109K
  110K
• Ministerial Education Fund 274K
  274K 275K
• Africa University 24K 24K
  24K
• GC Administration Funds 88K 88K
  87K
• Interdenominational Co-op Fund 21K
  21K 21K
• Episcopal Fund 215K 215K 221K
• Jurisdictional Apportionments 17K
  17K 17K
• Total Connectional Ministries 1,542K
  1,542K 1,557K
• 
  
  (1.0)

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Healthy Church Ministries

• Orig. Rev. Proposed
• 2009 2009
  2010
• Vision Team Ministries 100K 0K
  92K
• Vital Congregation Ministries 293K
  217K 200K
• Connectional Prog. Ministries 721K
  646K 733K
• Community Transformation 137K 113K
  137K
• Disciple Making Ministries 39K
  39K 46K
• Leadership Dev. Ministries 175K 131K
  178K
• Total Healthy Church Ministries 1,465K
  1,147K 1,386K
• 
  (-21.7) (-5.4)

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Administrative Ministries

• Orig. Rev. Proposed
• 2009 2009
  2010
• Resource Development Mgmt. 590K
  579K 592K
• District Office Support 109K 190K
  109K
• Episcopal Office Support 45K 45K
  45K
• Area Episcopal Committee 5K
  5K 5K
• Archives History 12K 12K
  12K
• Total Administrative Ministries 761K
  750K 763K
• 
  (-1.3) (0.3)

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Clergy Support

• Orig. Rev. Proposed
• 2009 2009 2010
• Equitable Compensation 138K 138K
  138K
• District Office Support 494K 485K
  497K
• Life Insurance 34K 34K 34K
• Cabinet Relief Fund 5K 0K
  0K
• Retd. Clergy Health Dental 804K 804K
  704K
• Total Clergy Support 1,474K
  1,460K 1,373K
• 
  (-0.9) (-6.9)

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2009 Apportionment Process

• Expected Receipts 4,882,000
• Original Adjustments 510,000
• Additional Est. Shortfall 360,290
• Total apportioned 5,752,290
• (No change from already apportioned amounts)

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2010 Apportionment Process

• Expected Receipts 4,980,000
• Adjustments 772,290
• Additional Est. Shortfall
  0
• Total to be apportioned 5,752,290
• (Assumes improved payment of apportionments)

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2010 Apportionment Calculation
CCFAs recommendation
Average each local churchs net operating
expenses for 2005, 2006 and 2007
Apportion cap of 19 of local churchs 2007
Total Operating Expenses
Apportion proportionally towards 2010
apportionment total (5,752,290)
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2009 Covenant Funding Plan Resolution

• WHEREAS the projected 2009 financial resources
  of the Peninsula-Delaware Annual Conference now
  total 4,899,286, vs. earlier, higher
  projections, and ..WHEREAS the Conference
  Council on Finance and Administration (CCFA) has
  prepared a proposed revised covenant funding plan
  as presented to the Annual Conference ..NOW
  THEREFORE BE IT RESOLVED that the
  Peninsula-Delaware Annual Conference adopt the
  Revised 2009 covenant funding plan as proposed.
  BE IT FURTHER RESOLVED that there be no change
  to the apportionments as previously adopted for
  2009.

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2010 Covenant Funding Plan Resolution

• WHEREAS the projected 2010 financial needs of
  the Peninsula-Delaware Annual Conference total
  5,078,371, 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
  2010 covenant funding plan as proposed including
  an apportionment total of 5,752,290 to support
  our ministry needs for 2010. BE IT FURTHER
  RESOLVED that the apportionment formula for 2010
  be based on the three-year average of 2005, 2006
  2007 Net Operating Expenses and an
  apportionment cap of 19 of 2007 Total Operating
  Expenses.

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Reserve Fund Resolution

• WHEREAS the existing Reserve Fund Policy
  requires the year end general reserve be held to
  exactly 10 of the annual budget, and
• WHEREAS balancing Conference needs with receipts
  on an ongoing basis requires some flexibility in
  year end general reserve balances NOW
  THEREFORE BE IT RESOLVED that the Conference
  Council on Finance and Administration will
  maintain and administer the year end general
  cash reserve fund between 8 and 12 of the
  previous years annual expenditures. Funds in
  excess of the 12 upper limit will be available
  for exceptional missional opportunities on a
  one-time basis only. Any budgetary request that
  would bring the reserve fund below the 8 minimum
  will require Annual Conference approval.
• Reserve funds available for missional
  opportunities consist of funds in excess of the
  12 of budgeted expenditures upper limit minus
  any anticipated budget deficit and/or short term
  financial obligations due.
• BE IT FURTHER RESOLVED that the Conference
  Council on Finance and Administration will
  continue its policy of annual review of year end
  balances of individual boards and agencies for
  appropriateness in view of subsequent year needs
  and anticipated carry-over expenses coming due.