MESSAGE – A Special Announcement from the Los Angeles Episcopacy
of the California Pacific Conference – Thursday, 9 January 2013
Report of the California-Pacific Strategic Financial Planning
Task Force
Brothers and Sisters of the California-Pacific Conference,
Blessed New Year to all of you!
May 2014 be the year when we fully experience the reign of God among us!
At the 2013 Session of our Annual Conference, Bishop Minerva G.
Carcaño delivered a state of the conference report in which she shared with you
that she had invited our United Methodist General Council on Finance and
Administration to assist us in addressing our own financial
administration. While the findings of
the GCFA were difficult to receive, she reported to you that she would be
gathering a group of our conference leaders to help us address the concerns
raised by the work of the GCFA. She
further pledged to you that she and these conference leaders would develop a
strategic plan and report back to you about our work at the beginning of this
year. This is our report.
Our Strategic Financial Planning Team has been meeting and
working since last September. We have
addressed each of the GCFA findings. The
major strategic steps we have taken include the following by area of concern:
Financial Administration – Our Executive Director of Finance and
Facilities has worked with her staff and our Council on Financial Resources in
the development of clear fiscal policies and procedures. She has also led us in reorganizing our
conference financial accounts in a manner that better assists us in providing
transparent accounting of the conference’s funds. With others from our task force she is
helping us address the management of stagnant funds. In addition, she and her staff have worked
diligently to assure that all designated dollars are forwarded to the
appropriate accounts and offices in an efficient and timely way. In collaboration with our Executive Director
of Connectional Ministries, she has helped us develop a reporting process as
well as a new format for our conference budget that we hope will also
contribute to transparency and efficiency as we strive to be about our mission
and ministry through our Conference Essential Ministry Teams.
Pension and Health Benefits – Currently, there is a $30.2
million unfunded liability for retiree healthcare. GCFA noted in their audit findings that there
are no assets to fund the liability. They stated, “Although the conference has
been able to keep up with yearly requirements to date, since this liability
exists, future annual payments will start growing significantly as the
retirement age of the pastors the fund represents gets closer. This amount will
create a substantial financial stress upon the conference.”
In response to this concern, our Conference Board of Pensions
has directed a series of meetings and is doing considerable research in order
to make recommendations about future retiree healthcare that will provide care
to retirees and spouses with long term sustainability and the current financial
state of the annual conference in mind.
Recommendations will be made to our 2014 Annual Conference Session,
including recommendations pertaining to the Lynch Funds.
GCFA also noted concern about an apparent Pension Fund
Obligation to the annual conference due to the gap between the pension that
local churches are to pay and what they actually pay. While all obligations to the General Board of
Pensions and Health Benefits, including all clergy pension accounts, are up to
date, our Conference Board of Pensions is researching our pension local church
payout history in order to determine ways to address this gap and its impact on
our conference’s missional budget.
Camping, Outdoor and Retreat Ministries – Our Board of Camping,
Outdoor and Retreat Ministries prepared a Strategic Plan that is already being
implemented. The plan includes the sale
of Cisquito and Sturtevant camps, and the possibility of recommending the sale
of a third camp in order to better focus our resources on a more vital camping
and retreat ministry. A new marketing
plan is being prepared, and Hawaii leaders are being engaged in developing a
plan for summer camp programs on Oahu utilizing an ecumenical model and for
camping and retreat events that grow disciples of Jesus Christ at Mekokiko and
Koke’e. All conference camps are under
review with clearly established yearly goals focused on fiscal sustainability,
ministry-oriented staffing, and summer camp oversight and growth.
Apportionments and Local Church Payables – Cabinet is working
diligently to assist local churches with their apportionment commitments and in
addressing any delinquencies they may be facing in their local church payables
(pension, health and property insurance).
The Cabinet is also assessing churches that chronically struggle with
their apportionments and local church payables to determine the level of appointment
they are able to financially assume as well as reviewing the clergy record as
it pertains to local churches fulfilling their connectional fiscal
responsibilities. District
Superintendents with their District Lay Leaders are working together to acknowledge,
actively support and celebrate the good
work of congregations who fulfill their connectional responsibilities as well
as those who are demonstrating improvement.
They have also worked diligently with the leaders of District Unions to
clear all district debts owed to Camping, Outdoor and Retreat Ministries.
Benchmarking – Vital benchmarking for our annual conference to
inform us as to how we are doing in comparison to other annual conferences is
underway. The areas under study are
those whose strength has been shown to be key to growing vital
congregations: professions of faith,
worship attendance, small group participation, total offering and offering per
worship attendance, and the number of persons in mission. The results of this work will be shared
with all of you and used to plan for our future.
In Conclusion – We are privileged to serve you through this holy
work. We will continue to work through
the balance of this annual conference year with meetings scheduled for February
12th and April 4th and will render a full report at our upcoming 2014 Annual
Conference Session. We are encouraged
by what God’s grace has enabled us to do and by your prayers and support as we
have represented you at this table.
Strategic Financial Task Force
Chuck Tokuhama, Chair, Congregational Loan Committee; David
McGlocklin, Chair, Navigation EMT; Dan Griffin, Chair, Council on Financial
Resources; Riley McRae, Chair, Camping, Outdoor and Retreat Ministries Council;
Karen Tannheimer, Chair, Board of Trustees; Ken McMillan, Chair, Conference
Board of Pensions; Bishop Minerva G. Carcaño; Cedrick Bridgeforth, Dean of the
Cabinet; Archana Carey, Executive Director of Finance and Facilities; Steve
Hundley, Executive Director of Connectional Ministries; Kris Hodson, Director
of Congregational Loans; Jan Hanson, Director of Human Resources/Benefits
Officer; David Berkey, Director of Camping Ministry and Operations; Greg
Batson, CEO, California-Pacific UM Foundation
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California-Pacific Conference of the United Methodist Church
PO Box 6006
Pasadena CA 91102-6006 United States
110 South Euclid
Pasadena CA 91101 United States
(800)244-UMCC
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