Wednesday, January 22, 2020

First Draft of a News Article for Next Week: A 2019 Budget Report from the Mountain Sky Council on Finance and Administration




The Conference Council on Finance and Administration is providing you this initial[i] report on how we finished Fiscal Year 2019 in terms of income and expenses.


There is good news with a positive message: we finished 2019 with income exceeding expenses by a over $60,000.

As part of our responsible stewardship, we forecast expected income over the course of the year.  Our 2019 income forecast hovered in the $5.6M range. This forecast started early and continued through the end of November. Very positive church giving in October and December saw us nearly $300,000 better than that forecast of $5.6M.

Our initial estimate for 2019 total income is $5,893,082. Our expense estimate is $5,829,372.

To return to the mixed message:  the conference accomplished this good news despite income under budget by over $766,000. Further, 2019 income was under 2018 income by a little under $222,000. This is part of the mixed message statement I offered in September and continued to address with two more reports in the fall (November 4 and November 18).

In order to finish in the black (a positive position for the year) we had to delay and slow down hiring actions and under pay our General and Jurisdictional Apportionment. Chart 1 shows how we spread the shortfall from what was budgeted to our income. Over half of what was budgeted, that was not spent was General and Jurisdictional Apportionment. Intentionally slowing staff fills accounted for a savings of a little over $300,000.
We will say a positive message is that we were paying our General and Jurisdictional Apportionment for most of the year at a 65% rate until the very positive end of year results.  The combined positive impact of October and December highs allowed us to finish the year at 80%.

We focused our decrements and supported Africa University, Black College Fund, Methodist Education Fund, Episcopal Fund, Western Jurisdiction and Interdenominational Funds at 100%.

On behalf of the Conference Council on Finance and Administration, we wish to say “thank you” to everyone who contributed this year. 

The local church apportionment year ends on January 31st.  Payments made on your Mission Shares through that date will be credited at the individual church level for 2019.
 
We move from one apportionment process to two on February 1st, 2020. 

The conference will be supported by our income model moving from 13% to 10% on Adjusted Gross Income.  An article on that is here.
 
We will support the General and Jurisdictional Church with a direct assessment that is explained here and shown for each church here.  We know this change will require adjustment and education.  Our webinar of January 14th (here) focused on that change. 

Your financial leadership continues focus on our mission: “The Mountain Sky Conference of the UMC will live in God’s grace and abundance as we lead a re-energized peaceful and compassionate movement to claim the life-changing love of Jesus Christ for ALL people.”

Again, our gratitude and thanks for those who have supported from their own abundance, in Grace, this new thing:  the Mountain Sky Conference. 



[i] We call this report “initial” because the numbers in many cases are still preliminary and subject to minor adjustments.

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