GOOD MORNING!

This will be my fourth and final Finance Committee report to the General Assembly. Having served six years on the Finance Committee and as chair for four years. I have spent some time lately reflecting on changes in financial management that have taken place during the time I served on the committee, which happened to be the beginning of the current administration. The most significant changes fall in the following categories:

1. Finance Department Infrastructure
2. Expansion of Operating Budget to include restricted fund activity.
3. How we spend or limited resources.

Departmental Infrastructure

During my first year on the Finance Committee, I became aware that there was much work to needed to strengthen the basic financial management infrastructure. Changing Financial Accounting Standards for non profit corporations underscored the necessity to develop a larger staff with broader background and experience in non-profit accounting and audit procedures. Now, under the leadership of Jerry Gabert, we UUA have a Finance Department of an adequate size and with the qualifications needed to oversee and manage a very complex financial operation.

At the present time our Finance Department is converting the entire accounting operation to an enhanced tracking and reporting system which will permit more timely quarterly distributions, improved reporting and greater internal controls. In conjunction with the Information Services Department they are addressing Y2K and resolving problems on a system wide basis. The staff is also is also redoing our chart of accounts and converting the General Ledger to a windows based accumulation and reporting system, making it more accessible to managers for their continued monitoring and operational control of income and expenditures.

When John Buehrens began his first term, he found his stewardship responsibilities included more funds off budget than visible in the operating budget. In meeting both the goals of the current Administration and Board and in compliance with new financial accounting standards for non-profit organizations, the Finance Department has brought greater visibility to the operating budget of restricted fund activity. Restricted funds which were not a part of our operating budget in the past but which are now included in both our operating budget and balance sheet include the following:

1. Beneficial interests in perpetual trusts, such as the Holdeen India fund.
2. Income from for designated purposes as distinguished from income for general support.
3. Veatch funded support
4. Scholarships and educational grants
5. Ministerial aid fund expenditures
6. Handing on the future capital campaign income and expenditures.

We are not only proud of the development of a stronger financial infrastructure and the inclusivity of our budgeting process, but I think you will be as pleased as we are with the shift in the way in which we use our financial resources. John Buehrens campaigned for office on a theme of "Watering the Grass Roots". A review of expenditures from 1993 to the present reveals much progress toward this goal. In FY our operating income was $7,853,000 and our expenditures for "services to congregations" was $4,095,000. "Services to Congregations represented 52% of our operating budget. FY99 is a bit more complicated because of changes in accounting procedures, however, our "income for general services" was $12,195,000 and expenditures for services to congregations were $9,433,000. Folks, that is 77% of a much larger current budget allocated for services to congregations.

In this move to "water the grassroots", priorities have included the following: 1. An emphasis on decentralization by providing districts with additional program services funds to provide Religious Education, Youth, and program consultants. 2. An emphasis upon antiracism and social justice. -- Our per cent of budget has doubled in the past six years from 5% of a smaller budget to 10% of a much larger budget in this area. 3. An emphasis on communications though our new department of Communications under the leadership of Tom Stites. The latest addition is an office of electronic communications to help institutionalize and carryon the marvelous work of so many volunteers who created our web site and 130 different list serves available for your use. Most of you are also aware of our latest publications "Interconnections" and "UU Leaders" 4. A greater emphasis on training and material for lay leadership in practical skills.

Many changes have taken place during the past six years. We have much to be proud of.

Now Gini Courter, my successor as chair of the Finance Committee, will present to you the proposed budget for FY2000.

GA Office  UUA Main Page  Search Our Site  Contact Us

Unitarian Universalist Association
25 Beacon Street, Boston, MA 02108 · Telephone (617) 742-2100 · Fax (617) 725-4979

Information Feedback