MOSES KUMAR
General Agency Reserves
What is GCFA Doing On Reserves ✤
Christine Dodson is heading a committee to review General Agency reserves and develop a method to better measure “what is appropriate” ✤
The Committee has developed a revised reserve reporting tool
✤
Meeting with the General Secretaries and Agency Treasurers on August 17, 2017 to discuss the new reporting tool as well as how we prepare together for any questions that are likely to be raised
Types and Definitions of Reserves ✤
✤
Permanently Restricted Net Assets ✤
Principal balance remains in tact
✤
Income can be used for a purpose as specified the donor
Temporarily Restricted Net Assets ✤
Principal & Income to be used for specific purpose as directed by the donor
Types and Definitions of Reserves ✤
✤
Unrestricted Net Assets – Board Designated ✤
Funds are not restricted by the donor
✤
The Board designates the funds for a particular purpose
✤
The Board can move these funds back to undesignated at any time if circumstances change or warrant
Unrestricted Net Assets – Undesignated ✤
Funds can be used for any purpose deemed necessary
Types and Definitions of Reserves ✤
✤
Liquid Net Assets ✤
Cash
✤
Securities
✤
Receivables
Net Assets not easily convertible to cash ✤
Fixed assets
✤
Certain investments or holding that are not marketable
2016 Reserve Analysis In Thousands
Agency UM Communications Global Ministries Higher Education Church & Society Discipleship Ministries GCFA Religion & Race United Methodist Men Archives & History Status & Role of Women Connectional Table
2016 Total Reserves $ 39,008 $ 173,776 $ 137,579 $ 24,565 $ 12,033 $ 7,282 $ 4,652 $ 1,534 $ 1,056 $ 819 $ 416
Totals
$
Permanently Restricted $ 23 $ 107,284 $ 19,493 $ 2,603 $ 1,121 $ 0 $ 109 $ $ 183 $ 93 $ -
402,720 $
Temporarily Restricted $ 1,580 $ 31,479 $ 97,403 $ 2,684 $ 3,845 $ 10 $ 796 $ 24 $ 24 $ 164 $ -
Unrestricted $ 37,405 $ 35,012 $ 20,684 $ 19,277 $ 7,067 $ 7,272 $ 3,747 $ 1,510 $ 848 $ 562 $ 416
130,909 $ 138,010
$ 133,801
2016 Reserve Analysis In Thousands
Agency UM Communications Global Ministries Church & Society Higher Education Religion & Race Discipleship Ministries Archives & History Status & Role of Women United Methodist Men Connectional Table GCFA Totals
Unrestricted Fixed Assets @ After Fixed Assets NBV Unrestricted $ 37,405 $ 2,238 $ 35,167 $ 35,012 $ 14,635 $ 20,378 $ 19,277 $ 8,361 $ 10,916 $ 20,684 $ 673 $ 20,011 $ 3,747 $ 90 $ 3,657 $ 7,067 $ 2,114 $ 4,953 $ 848 $ 6 $ 843 $ 562 $ 8 $ 553 $ 1,510 $ 935 $ 575 $ 416 $ $ 416 $ 7,272 $ 6,510 $ 761 $ 133,801
$ 35,571
$
Investments Not Readily Convertible to Cash $ $ $ $ 7,561 $ $ 260 $ $ $ $ $ -
98,230 $
Proceeds from Foreign Property Sale $ $ 1,402 $ $ $ $ $ $ $ $ $ -
7,822 $
Working Readily Capital / Available Cashflow Unrestricted Require. Net Assets $ 2,603 $ 32,564 $ 5,347 $ 13,629 $ 1,116 $ 9,799 $ 3,442 $ 9,008 $ 186 $ 3,471 $ 3,829 $ 864 $ 195 $ 648 $ 110 $ 443 $ 161 $ 415 $ 164 $ 253 $ 750 $ 11
1,402 $ 17,901
$
71,105
2016 Reserve Analysis In Thousands
Agency UM Communications Church & Society Higher Education Religion & Race GCFA United Methodist Men Archives & History Status & Role of Women Connectional Table Global Ministries Discipleship Ministries
Readily Available Unrestricted Net Assets $ 32,564 $ 9,799 $ 9,008 $ 3,471 $ 11 $ 415 $ 648 $ 443 $ 253 $ 13,629 $ 864
Projected Change During 20172020 (1) $ (13,600) $ (2,318) $ (5,001) $ (1,225) $ 500 $ 5 $ (335) $ (237) $ (186) $ (4,000) $ (5,864)
Projected Readily Available in 2020 $ 18,964 $ 7,481 $ 4,007 $ 2,246 $ 511 $ 420 $ 313 $ 206 $ 67 $ 9,629 $ (5,000)
Totals $ 71,105 $ (32,261) $ (1) Per Agency 2017 spending plan submission
38,844
Other Contingnecies (1) $ 11,320 $ 1,732 $ 200 $ $ $ 45 $ $ $ $ 13,853 $ 173 $
27,323
2020 Available After Contingencies $ 7,644 $ 5,749 $ 3,807 $ 2,246 $ 511 $ 375 $ 313 $ 206 $ 67 $ (4,224) $ (5,173) $
11,521
Further Questions, Discussion and Information Requests
What is GCFA Doing On Reserves ✤
Christine Dodson is heading a committee to review General Agency reserves and develop a method to better measure “what is appropriate” ✤
The Committee has developed a revised reserve reporting tool
✤
Meeting with the General Secretaries and Agency Treasurers on August 17, 2017 to discuss the new reporting tool as well as how we prepare together for any questions that are likely to be raised
Types and Definitions of Reserves ✤
✤
Permanently Restricted Net Assets ✤
Principal balance remains in tact
✤
Income can be used for a purpose as specified the donor
Temporarily Restricted Net Assets ✤
Principal & Income to be used for specific purpose as directed by the donor
Types and Definitions of Reserves ✤
✤
Unrestricted Net Assets – Board Designated ✤
Funds are not restricted by the donor
✤
The Board designates the funds for a particular purpose
✤
The Board can move these funds back to undesignated at any time if circumstances change or warrant
Unrestricted Net Assets – Undesignated ✤
Funds can be used for any purpose deemed necessary
Types and Definitions of Reserves ✤
✤
Liquid Net Assets ✤
Cash
✤
Securities
✤
Receivables
Net Assets not easily convertible to cash ✤
Fixed assets
✤
Certain investments or holding that are not marketable
2016 Reserve Analysis In Thousands
Agency UM Communications Global Ministries Higher Education Church & Society Discipleship Ministries GCFA Religion & Race United Methodist Men Archives & History Status & Role of Women Connectional Table
2016 Total Reserves $ 39,008 $ 173,776 $ 137,579 $ 24,565 $ 12,033 $ 7,282 $ 4,652 $ 1,534 $ 1,056 $ 819 $ 416
Totals
$
Permanently Restricted $ 23 $ 107,284 $ 19,493 $ 2,603 $ 1,121 $ 0 $ 109 $ $ 183 $ 93 $ -
402,720 $
Temporarily Restricted $ 1,580 $ 31,479 $ 97,403 $ 2,684 $ 3,845 $ 10 $ 796 $ 24 $ 24 $ 164 $ -
Unrestricted $ 37,405 $ 35,012 $ 20,684 $ 19,277 $ 7,067 $ 7,272 $ 3,747 $ 1,510 $ 848 $ 562 $ 416
130,909 $ 138,010
$ 133,801
2016 Reserve Analysis In Thousands
Agency UM Communications Global Ministries Church & Society Higher Education Religion & Race Discipleship Ministries Archives & History Status & Role of Women United Methodist Men Connectional Table GCFA Totals
Unrestricted Fixed Assets @ After Fixed Assets NBV Unrestricted $ 37,405 $ 2,238 $ 35,167 $ 35,012 $ 14,635 $ 20,378 $ 19,277 $ 8,361 $ 10,916 $ 20,684 $ 673 $ 20,011 $ 3,747 $ 90 $ 3,657 $ 7,067 $ 2,114 $ 4,953 $ 848 $ 6 $ 843 $ 562 $ 8 $ 553 $ 1,510 $ 935 $ 575 $ 416 $ $ 416 $ 7,272 $ 6,510 $ 761 $ 133,801
$ 35,571
$
Investments Not Readily Convertible to Cash $ $ $ $ 7,561 $ $ 260 $ $ $ $ $ -
98,230 $
Proceeds from Foreign Property Sale $ $ 1,402 $ $ $ $ $ $ $ $ $ -
7,822 $
Working Readily Capital / Available Cashflow Unrestricted Require. Net Assets $ 2,603 $ 32,564 $ 5,347 $ 13,629 $ 1,116 $ 9,799 $ 3,442 $ 9,008 $ 186 $ 3,471 $ 3,829 $ 864 $ 195 $ 648 $ 110 $ 443 $ 161 $ 415 $ 164 $ 253 $ 750 $ 11
1,402 $ 17,901
$
71,105
2016 Reserve Analysis In Thousands
Agency UM Communications Church & Society Higher Education Religion & Race GCFA United Methodist Men Archives & History Status & Role of Women Connectional Table Global Ministries Discipleship Ministries
Readily Available Unrestricted Net Assets $ 32,564 $ 9,799 $ 9,008 $ 3,471 $ 11 $ 415 $ 648 $ 443 $ 253 $ 13,629 $ 864
Projected Change During 20172020 (1) $ (13,600) $ (2,318) $ (5,001) $ (1,225) $ 500 $ 5 $ (335) $ (237) $ (186) $ (4,000) $ (5,864)
Projected Readily Available in 2020 $ 18,964 $ 7,481 $ 4,007 $ 2,246 $ 511 $ 420 $ 313 $ 206 $ 67 $ 9,629 $ (5,000)
Totals $ 71,105 $ (32,261) $ (1) Per Agency 2017 spending plan submission
38,844
Other Contingnecies (1) $ 11,320 $ 1,732 $ 200 $ $ $ 45 $ $ $ $ 13,853 $ 173 $
27,323
2020 Available After Contingencies $ 7,644 $ 5,749 $ 3,807 $ 2,246 $ 511 $ 375 $ 313 $ 206 $ 67 $ (4,224) $ (5,173) $
11,521
Further Questions, Discussion and Information Requests
