MOSES KUMAR
Moses Kumar General Secretary and Treasurer The General Council on Finance and Administration
The story of Rex
01
The story of Rex
01
The story of Rex
01
The story of Rex
01
The Connection at Work
MINISTERIAL EDUCATION FUND
A 24-year old seminary student at Dubuque Theological Seminary, also under part time appointment shares the following:
“When I felt called to go to seminary right after college, I was nervous about the debt that I would continue to acquire from student loans. The Church has helped me to be less nervous by providing me with a scholarship. I can not express how appreciative I am for the generosity of their scholarships. Through their gift, I am able to better look forward to my life of ministry where I may serve God as best as I can.”
National Hispanic Plan New Faith Communities
30-months old Spanish-English bilingual second generational UM Church in Milwaukee area, called “Urban Poiema UMC:”
“This is the real deal people. People who are Jesus followers, taking time for one another, bearing each other’s burden, laughing, crying and working together as a family. We are not perfect…but Christ is. And we are here for you. Come and join us.”
National Korean Plan New Faith Communities
30-months old Madison: Korean Ministry, reaching out Korean students at UW- Madison. "As some of you may know, I was newly appointed to the new (Korean) church planter in Madison, WI since July 1st. no member, no building and no office (I am in a Starbucks now) at this moment... but there are somethings: the Vision of God, supportive friends including my DS and your prayers... yes, please pray for me and my family so that we could be a seed for God's church. One moreIf you have a friend who is looking for the Korean church in Madison, call me right now Peace. "
The Quadrennial Budget
Budget Basics – Who’s Involved General Conference GCFA
Connectional Table
Economic Advisory Committee The Book of Discipline Par. 806.1
Budget Basics – Guiding Principles
Reflect mission priorities and outcomes as determined by General Conference and “discerned and articulated” by the Connectional Table in consultation with the Council of Bishops.
Present the budget reports to General Conference in a narrative format.
Consider input from Economic Advisory Committee and Budget Leadership Team
Development of a long-term budget process for evaluating progress in the mission of The UMC via Connectional Table Evaluation
Budget Basics – Process and Timeline 2013
Jan - July 2014
Aug 2014
Mar-15
May 2015
Aug 2015
CT& GCFA approve the 20172020 Budget Planning process & Guiding Principles
Economic Advisory Committee meets three times to establish the key economic assumptions including a proposed Base Percentage and Bottom Line
CT & GCFA Approve Bottom Line of $611 million (Final EAC recommendation was $621 million)
General Agencies submit Budget Forms, including narrative, to CT & GCFA for review
EAC meets for final time and reviews Economic Assumptions. CT & GCFA approve Budget proposals with Bottom Line of $611 million
GCFA submits written reports for the Advance Daily Christian Advocate (Financial Commitment Book)
Budget Basics - Outcome •
Recommend to General Conference a “Base Percentage” •
Base Percentage = Percent of local church “Net Expenditures” that are apportioned for General Funds
•
Net Expenditures have been projected by the Economic Advisory Committee based upon economic assumptions
•
Dollars presented are estimates only and actual apportionments will be different
Budget Basics – How are funds spent? ✤
Funding plan for the seven apportioned funds of the general Church ✤
World Service
✤
Episcopal
✤
Ministerial Education
✤
Black College
✤
Africa University
✤
General Administration
✤
Interdenominational Cooperation
Proposed budget – Base Percentage trend 6.00% 5.41% 4.95%
5.00%
4.37% 3.97%
4.00%
3.56%
3.31%
3.19%
'13-'16
'17-'20
3.00% 2.00% 1.00% 0.00%
'93-'96
'97-'00
'01-'04
'05-'08
'09-'12
Base Percentage = Percent of local church “Net Expenditures” used to calculate apportionments
Proposed Budget – Summary
CT / GCFA 2017 – 2020 approved apportionments = $611 million vs. EAC recommendation of $621 million
1.3% Nominal increase from current quadrennium ($603 million)
7.2% Real spending decrease with average inflation of 2.15% from 2014 to 2020
71% of general agency revenues derived from general apportioned funds
Proposed Budget – Distribution by Fund Fund
2017-2020
World Service Fund
$311.8
Ministerial Education Fund
$107.0
Black College Fund Africa University Fund
$42.7 $9.6
Episcopal Fund
$93.9
General Administration Fund
$37.6
Interdenominational Cooperation Fund Total
$8.4 $611.0
Figures shown are in millions
2017-2020 Four Areas of Focus 8% 14%
25%
27%
26%
Principled Leaders (AU, MEF, BCF) Principled Leaders (World Service) New Places for New People Ministry with the Poor Abundant Health
General Agency & Episcopal Fund Reserves $160
$146
$140
$118
$120
$100
$78
$80 $60 $40 $20 $0 2012
2016
Figures shown are in millions
2020
Episcopal Fund – 2017-20 Budget 2009 - 2012
2013 - 2016 2017 - 2020
Total Income
$
86.8 $
89.3 $
89.5
Council of Bishops (1)
$
4.3 $
10.8 $
12.2
Jurisdictional Conferences
$
52.7 $
54.8 $
60.7
Central Conferences
$
15.8 $
17.3 $
18.6
Retired Bishops
$
4.8 $
3.8 $
4.3
Administrative & Other
$
2.4 $
3.0 $
3.0
Total Expenditures Surplus / (Deficit) Available Reserves
$
79.9 $
89.8 $
98.8
$
6.8 $
(0.5) $
(9.3)
$
17.7 $
17.2 $
7.9
(1) OCUIR & Committee on Faith & Order became part of the Episcopal Fund in 2013. Costs are $5.3 million in 2013-2016 and $6.1 in 2013-2020
Figures shown are in millions
The Episcopal Fund – Measures Taken • 2014 • Retiree Health – Reduced cost of $400,000 annually • Reduction of Full COB (with retirees) meetings – From two meetings to one per year • Concur Expense System – Improved auditing and tracking • 2015 • Monthly / Quarterly Financial Communication Between GCFA and COB Leadership – Cost overruns mitigated or eliminated • 2016 • Restructure of Active Healthcare – High deductible plan • 2017-2020 • Central Conference Apportionments – Increased giving
The Episcopal Fund – Other Considerations
✤
Potential reduction of one in Northeast Jurisdiction
✤
The projected impact - $1.3 million
Central Conference Apportionments
Historical Context
2012 actions by General Conference and Judicial Council
Current voluntarily contributions = $950,000 / year
Formula agreed upon in 2015
Central Conference Apportionments – Funds Supported
The Episcopal Fund – Directly supports Central Conferences
General Administration Fund – Directly supports:
General Conference (> 40% of attendees from Central Conferences)
Standing Committee on Central Conference Matters
Central Conference Apportionments – The Formula
Per member apportionments to each Central Conference = the U.S. per member apportionment adjusted by an Economic Modifier
Per member apportionments in the United States:
Episcopal Fund = $3.00 / Member
General Administration = $1.24 / Member
Economic modifier = GDP / Capita
U.S. GDP / Capita = 100%
Economic modifier is the GDP / Capita in relation to that of the U.S.
Central Conference Apportionments – Effect of Economic Modifier Region
Apportionment / Member
Percent of U.S.
United States
$4.23
100.0%
Europe
$3.33
78.7%
Philippines
$0.52
12.3%
Africa
$0.13
3.1%
Central Conference Apportionments – New Formula Effect
Region Philippines Europe Africa Quadrennial Amount
2013 – 2016 Projection
New Formula
$ Change
% Change
$159
$472
$313
197%
$2,867
$777
$(2,090)
-73%
$704
$2,838
$2,134
303%
$3,730
$4,087
$357
10%
Figures shown are in thousands
The story of Rex
01
The story of Rex
01
The story of Rex
01
The story of Rex
01
The Connection at Work
MINISTERIAL EDUCATION FUND
A 24-year old seminary student at Dubuque Theological Seminary, also under part time appointment shares the following:
“When I felt called to go to seminary right after college, I was nervous about the debt that I would continue to acquire from student loans. The Church has helped me to be less nervous by providing me with a scholarship. I can not express how appreciative I am for the generosity of their scholarships. Through their gift, I am able to better look forward to my life of ministry where I may serve God as best as I can.”
National Hispanic Plan New Faith Communities
30-months old Spanish-English bilingual second generational UM Church in Milwaukee area, called “Urban Poiema UMC:”
“This is the real deal people. People who are Jesus followers, taking time for one another, bearing each other’s burden, laughing, crying and working together as a family. We are not perfect…but Christ is. And we are here for you. Come and join us.”
National Korean Plan New Faith Communities
30-months old Madison: Korean Ministry, reaching out Korean students at UW- Madison. "As some of you may know, I was newly appointed to the new (Korean) church planter in Madison, WI since July 1st. no member, no building and no office (I am in a Starbucks now) at this moment... but there are somethings: the Vision of God, supportive friends including my DS and your prayers... yes, please pray for me and my family so that we could be a seed for God's church. One moreIf you have a friend who is looking for the Korean church in Madison, call me right now Peace. "
The Quadrennial Budget
Budget Basics – Who’s Involved General Conference GCFA
Connectional Table
Economic Advisory Committee The Book of Discipline Par. 806.1
Budget Basics – Guiding Principles
Reflect mission priorities and outcomes as determined by General Conference and “discerned and articulated” by the Connectional Table in consultation with the Council of Bishops.
Present the budget reports to General Conference in a narrative format.
Consider input from Economic Advisory Committee and Budget Leadership Team
Development of a long-term budget process for evaluating progress in the mission of The UMC via Connectional Table Evaluation
Budget Basics – Process and Timeline 2013
Jan - July 2014
Aug 2014
Mar-15
May 2015
Aug 2015
CT& GCFA approve the 20172020 Budget Planning process & Guiding Principles
Economic Advisory Committee meets three times to establish the key economic assumptions including a proposed Base Percentage and Bottom Line
CT & GCFA Approve Bottom Line of $611 million (Final EAC recommendation was $621 million)
General Agencies submit Budget Forms, including narrative, to CT & GCFA for review
EAC meets for final time and reviews Economic Assumptions. CT & GCFA approve Budget proposals with Bottom Line of $611 million
GCFA submits written reports for the Advance Daily Christian Advocate (Financial Commitment Book)
Budget Basics - Outcome •
Recommend to General Conference a “Base Percentage” •
Base Percentage = Percent of local church “Net Expenditures” that are apportioned for General Funds
•
Net Expenditures have been projected by the Economic Advisory Committee based upon economic assumptions
•
Dollars presented are estimates only and actual apportionments will be different
Budget Basics – How are funds spent? ✤
Funding plan for the seven apportioned funds of the general Church ✤
World Service
✤
Episcopal
✤
Ministerial Education
✤
Black College
✤
Africa University
✤
General Administration
✤
Interdenominational Cooperation
Proposed budget – Base Percentage trend 6.00% 5.41% 4.95%
5.00%
4.37% 3.97%
4.00%
3.56%
3.31%
3.19%
'13-'16
'17-'20
3.00% 2.00% 1.00% 0.00%
'93-'96
'97-'00
'01-'04
'05-'08
'09-'12
Base Percentage = Percent of local church “Net Expenditures” used to calculate apportionments
Proposed Budget – Summary
CT / GCFA 2017 – 2020 approved apportionments = $611 million vs. EAC recommendation of $621 million
1.3% Nominal increase from current quadrennium ($603 million)
7.2% Real spending decrease with average inflation of 2.15% from 2014 to 2020
71% of general agency revenues derived from general apportioned funds
Proposed Budget – Distribution by Fund Fund
2017-2020
World Service Fund
$311.8
Ministerial Education Fund
$107.0
Black College Fund Africa University Fund
$42.7 $9.6
Episcopal Fund
$93.9
General Administration Fund
$37.6
Interdenominational Cooperation Fund Total
$8.4 $611.0
Figures shown are in millions
2017-2020 Four Areas of Focus 8% 14%
25%
27%
26%
Principled Leaders (AU, MEF, BCF) Principled Leaders (World Service) New Places for New People Ministry with the Poor Abundant Health
General Agency & Episcopal Fund Reserves $160
$146
$140
$118
$120
$100
$78
$80 $60 $40 $20 $0 2012
2016
Figures shown are in millions
2020
Episcopal Fund – 2017-20 Budget 2009 - 2012
2013 - 2016 2017 - 2020
Total Income
$
86.8 $
89.3 $
89.5
Council of Bishops (1)
$
4.3 $
10.8 $
12.2
Jurisdictional Conferences
$
52.7 $
54.8 $
60.7
Central Conferences
$
15.8 $
17.3 $
18.6
Retired Bishops
$
4.8 $
3.8 $
4.3
Administrative & Other
$
2.4 $
3.0 $
3.0
Total Expenditures Surplus / (Deficit) Available Reserves
$
79.9 $
89.8 $
98.8
$
6.8 $
(0.5) $
(9.3)
$
17.7 $
17.2 $
7.9
(1) OCUIR & Committee on Faith & Order became part of the Episcopal Fund in 2013. Costs are $5.3 million in 2013-2016 and $6.1 in 2013-2020
Figures shown are in millions
The Episcopal Fund – Measures Taken • 2014 • Retiree Health – Reduced cost of $400,000 annually • Reduction of Full COB (with retirees) meetings – From two meetings to one per year • Concur Expense System – Improved auditing and tracking • 2015 • Monthly / Quarterly Financial Communication Between GCFA and COB Leadership – Cost overruns mitigated or eliminated • 2016 • Restructure of Active Healthcare – High deductible plan • 2017-2020 • Central Conference Apportionments – Increased giving
The Episcopal Fund – Other Considerations
✤
Potential reduction of one in Northeast Jurisdiction
✤
The projected impact - $1.3 million
Central Conference Apportionments
Historical Context
2012 actions by General Conference and Judicial Council
Current voluntarily contributions = $950,000 / year
Formula agreed upon in 2015
Central Conference Apportionments – Funds Supported
The Episcopal Fund – Directly supports Central Conferences
General Administration Fund – Directly supports:
General Conference (> 40% of attendees from Central Conferences)
Standing Committee on Central Conference Matters
Central Conference Apportionments – The Formula
Per member apportionments to each Central Conference = the U.S. per member apportionment adjusted by an Economic Modifier
Per member apportionments in the United States:
Episcopal Fund = $3.00 / Member
General Administration = $1.24 / Member
Economic modifier = GDP / Capita
U.S. GDP / Capita = 100%
Economic modifier is the GDP / Capita in relation to that of the U.S.
Central Conference Apportionments – Effect of Economic Modifier Region
Apportionment / Member
Percent of U.S.
United States
$4.23
100.0%
Europe
$3.33
78.7%
Philippines
$0.52
12.3%
Africa
$0.13
3.1%
Central Conference Apportionments – New Formula Effect
Region Philippines Europe Africa Quadrennial Amount
2013 – 2016 Projection
New Formula
$ Change
% Change
$159
$472
$313
197%
$2,867
$777
$(2,090)
-73%
$704
$2,838
$2,134
303%
$3,730
$4,087
$357
10%
Figures shown are in thousands
