Moving

1. Moving Forward 2012 General Conference Briefing from GCFA

2. GCFA The General Council on Finance and Administration servesthe denomination through financial and administrative ministriesthat enablethe fulfillmentof the missionof The United Methodist Church.

3. GCFA The General Council on Finance and Administration is an agency that works on behalf of the General Conference. • General Conference • GCFA • Connectional Table

4. GCFA The General Council on Finance and Administration is an agency that works on behalf of the General Conference. We are accountable to the General Conference in all matters relating to the receiving, disbursing, and reporting of all general apportioned funds.

5. GCFA The General Council on Finance and Administration is an agency that is accountable to the General Conference. We are the only agency whose members are elected entirely by the General Conference.

6. GCFA • GCFA

7. GCFA GCFA Online Annual Conference Registration System

8. GCFA Shared Administrative Services Payroll and employee benefit administration Check writing Investment management Past Meeting planning and travel services Shared service contracts to increase purchasing power Shared IT leadership among GBHEM, GBOD, and GCFA Integrated business applications Wellness program Financial services for GCAH and GCORR Data exchange and business processes This Quadrennium

9. GCFA ¶806.1 It shall submit to each quadrennial session of the General Conference, for its action and determination, budgets of expense for each of the general funds of the Church, as listed or defined in ¶ 810.1, and such other general funds as the General Conference may establish. It shall also make recommendations regarding all other funding considerations to come before General Conference. Actual receipts for each fund for the quadrennium then ending shall be the basis for all budgeting procedures and comparisons for the coming quadrennium.

10. How would you describe your congregation's financial health today? Where we’ve been

11. How would you describe your congregation's financial health compared to 5 years ago? Where we’ve been

12. How would you assess the impact of the 2008-2009 economic crisis on your congregation in the following areas? (Moderate and Major Impact) Where we’ve been

13. Where we’ve been Cut staff and froze wages Realigned ministries Shared Administrative Services Agencies Cut staff and froze wages Realigned ministries Reduced Districts Conferences Bishops Rolled back salaries for one year

14. Where we are 13 million professing members worldwide!

15. Where we are

16. Where we are

17. Where we are

18. Budget • Economic Advisory Committee • Creates three economic scenarios • Recommends a bottom line • General Agencies • Submit three budgets with ministry impacts • Make presentations to CT/GCFA • GCFA & CT • Adopt a bottom line • Establish agency distributions of funds • GCFA establishes amounts for Episcopal and General Administration Fund • 2012 General Conference • Adopts or rejects legislation • Considers revised budget recommendation from GCFA • Approves quadrennial budget

19. Budget • Economic Advisory Committee • Economic Advisory Committee • Creates three economic scenarios • Recommends a bottom line Charged with predicting the amount of funds that will be available for the work of the General Church through apportionments for the next quadrennium Comprised of experts in economics, finance, and The United Methodist Church Use sophisticated econometrics models that have show a high level of accuracy in predicting payouts over the last 20 years

20. Budget Goal Establish an apportioned budget that encourages gently-rising payouts at all levels of the connection and provides adequate support of needed ministries.

21. Budget Apportionments Received

22. Budget Apportionments Received & Predicted

23. Budget Method • Professing Membership • Rate of Inflation • Per Capita Disposable Income • Giving Elasticity • Net Spending as a Percentage of Total Local Church Expenditures • Nominal Growth in Dow • Gross Domestic Product (adjusted for inflation) • Base Percentage • Apportionment Payout Rates

24. Optimistic Budget Total $ 630,970,000 Realistic $ 603,100,000 Pessimistic $ 567,790,000

25. Budget Compared $ -10,927,000 Optimistic Realistic $ -38,771,000 Pessimistic $ -74,109,000

26. Optimistic Budget Receipts $ + 33,800,000 Realistic $ + 4,100,000 Pessimistic $ - 31,842,000

27. Optimistic Budget $ 630,970,000 Realistic $ 603,100,000 Pessimistic $ 567,788,000

28. Plan for Pessimistic But Realistic Occurs • Budgeted Apportionments Decrease 11.6% • Program Agencies Decrease Budgets 13.5% (instead of 6.5%) • Collections Decrease 1.5% vs. 0.8% Increase Consequence: Unnecessary, severe budget cuts Budget What If?

29. Plan for Optimistic But Realistic Occurs • Budgeted Apportionments Decrease 1.7% • Program Agencies Decrease Budgets 1.1% (instead of 6.5%) • Collections Increase 3.0% vs. 0.8% Consequence: Increased financial pressures placed upon the annual conferences Budget What If?

30. Budget What If? Selected Church Spending = Total Apportioned Base Percentage X

31. Budget What If? 165.3 160.7 $ -17 Million 158.5 -11.4 Million 157.4 -4.3 Million -1.4 Million 157.1 156.4 153.9 149.9

32. Budget $ 603,100,000

33. Budget

34. Budget

35. Budget

36. Budget Fixed Costs $101,826,000 Variable Costs $501,274,000

37. Budget Fixed Costs 17% Variable Costs 83%

38. Budget Fixed Costs 17% General Conference $10,903,000 Judicial Council $587,000 Episcopacy $90,336,000

39. Budget Fixed Costs Jurisdictional Bishop $1.5 million for 4 years

40. Budget Fixed Costs Central Conference Bishop $750,000 for 4 years

41. Budget Fixed Costs Jurisdictional Delegate $1,825

42. Budget Fixed Costs Central Conference Delegate $5,275

43. Budget Fixed Costs 17% Variable Costs 83%

44. Budget Variable Costs 83%

45. Budget Variable Costs 83%

46. Budget Variable Costs 83%

47. Budget Variable Costs 83%

48. Budget Variable Costs 83%

49. Budget Variable Costs 83%

50. Budget Variable Costs 83%