Board Monitoring of Administrative & Finance

1. Board Monitoring of Administrative & Finance October 2012 Presented by : Bill Cherry

2. Standard Areas to be Presented: • Financial Management • Budget Development & Management • Financial Trends and Current Assessment • External Financial Review/Audit • Stewardship • Facilities Management • Accomplishments • Issues/Challenges • Personnel Management • Policies & Procedures • Staffing Overview • Review of Objectives

3. Additional Areas to be Presented: • Governance • Brief Overview • Organizational Structure/Responsibilities • Executive Team Function • Goals and SMART Objectives • Status of Governance Manual • On-going role of Director of Administration

4. Financial Management • From the DOA’s Job Description: • Develops and monitors financial controls to ensure the security of church funds, including the organization of the periodic financial review. • Working with Finance Committee, organizes and facilitates annual budget development process. Provides input for all line items within jurisdiction of the Director of Administration. • Monitors expenditure of church funds authorized by the congregational budget and provides monthly reports to Finance Committee • Works with Stewardship Campaign (SC) to establish annual pledge drive data and materials, inputs pledges into the contributions system updates SC weekly with appropriate metrics. • Responsible for maintenance of pledge records, the automatic transfer of pledge payments as authorized and for the distribution of pledge statements and annual contributions statements as needed. • Maintains property, liability, and worker’s compensation insurance plans.

5. Budget Management

6. Budget Management - Revenue • Total Revenues Annual Growth Rate = ~2.5%

7. Budget Management - Revenue • Pledge Revenue –Yearly Totals Annual Growth Rate = ~ 3.14%

8. Budget Management - Revenue • Pledge History –Pledge Units and Average Pledge

9. Budget Management - Revenue • Donations Annual Growth Rate = Neg. 13.8% (Maybe + 5% Without Outliers)

10. Budget Management - Revenue • Fund Raising and Building Rental – By Activity Auction Gift Card Rentals Rummage

11. Budget Management - Revenue • Fund Raising and Building Rental Combined Annual Growth Rate = ~4.35% Gift Card Growth Rate = ~35%

12. Budget Management - Revenue • Total Revenues Annual Growth Rate = ~2.5%

13. Budget Management

14. Budget Management - Expenses • Total Expenses Annual Growth Rate = ~4.4%

15. Budget Management - Expenses Annual Growth Rates: Total = ~7.08% Salaries & NHC Benefits = ~7.3% • Personnel Expenses are ~ 70% of Total Expenses In 2009 there were 6.5 FTEs (including a custodian) plus childcare. There are now 7 FTEs (no custodian) plus childcare & sextons.

16. Budget Management - Expenses • Personnel Expenses – Health Care (Employer Share) Annual Growth Rate = ~13.5%

17. Budget Management - Expenses • Buildings and Grounds Annual Growth Rate = ~3.8% Annual Growth Rate = ~3.8%

18. Budget Management - Expenses • Program Council (Including RE) Annual Growth Rate = neg. 7.25%

19. Budget Management - Expenses • Contingency & Church Maintenance Balances Annual Growth Rates: Contingency = 16.2% Church Maintenance = Neg. 24%

20. Budget Management - Reporting • Bank Accounts – Cash and Cash Equivalents Annual Growth Rate = Neg. 8.6%

21. Budget Management - Reporting • Restricted Accounts Annual Growth Rate = Neg. 6.5%

22. Budget Management - Reporting • Fund Principal - The resources of an organization (comparable to owner’s equity in a business). The Fund Principal is equal to the difference between the Assets and Liabilities. Annual Growth Rate = ~1.6%

23. Budget Management - Reporting • Annualized Growth Rate Summary –over 4 years • Revenue • Pledges + 3.14% • Donations - 13.8% ( adjusted to +5%) • Fund Raising & Rentals + 4.35% • Gift Card + 35.1% • Auction - 0.4% • Rummage - 6.8% • Rentals - 2.8% • Total Revenue + 2.5% • Expenses • Personnel + 7.08% • Building & Grounds + 3.08% • Program Council (incl. RE) - 7.25% • Total Expenses + 4.4%

24. Budget Management - Reporting • Annualized Growth Rate Summary –over 4 years • Restricted Account Balances • Contingency +16.2% ( • Church Maintenance - 24% • Total Restricted - 6.5% • Balance Sheet Balances • Fund Principle + 1.6% • Cash & Cash Equivalents - 8.6% • Take Away Message – Our expenses have been growing • at a faster rate than our revenues and our cash reserves • are shrinking!

25. Budget Management - Reporting External Financial Review/Audit • From the Bylaws, Approved May 20, 2012: • Section 4: The financial records of the Church shall be subject to a financial review every other year with an audit conducted every fourth year by an accountant to be chosen by the Board. The financial review and audit reports shall be made available to any member of the Church requesting access. • A Financial Record Review was conducted in the Fall of 2011 by Cyndi Bailes, the Bookkeeper for ORUUC. • The Report dated November 23, 2011 was provided to the Treasurer and circulated for review by the Finance Committee and the Board. • The “most serious” concerns , employees versus contractors, have been corrected. The Interim Director of Admin was greatest concern. • The report has been reviewed with the new Administrator so as to foster improved practices as identified in the report. • The Board should confirm that the next review is due in 2013 and the more detailed audit by an accountant due in 2015.

26. Stewardship Campaign • Basic Steps for Providing Support to Campaign • Create Database of all Possible Pledge Units • Current Pledges - Members and Non-Members • Members with no Current Pledge • Non-Members who have Donated but not Pledged • Generate Canvas Comments List and Exclude Individuals as Appropriate. Converse with Chair as Needed • Generate Individualized Pledge Cards • Monitor and Extract Data from On-Line Pledges • Track Pledges as They Come in and Provide Weekly Status Report

27. 2012-2013 Pledge Card

28. Stewardship Campaign – Current Year • Data at Start of 2012-2013 Campaign (Based on 2011-2012 Pledge Year Data) • Members (Pledge Units) with Pledge – 237 • Members (Pledge Units) with No Pledge – 94 • Non- Members with Pledge – 31 • Non-Members with Non-Pledge Gift – 35 • Total Potential Pledge Units for 2012-2013 ---- 397 • Total Pledge Units Who Pledged for 2012-3013 ----288

29. Stewardship Campaign - History

30. Stewardship Campaign – This Year versus Last Year

31. Stewardship Campaign – This Year versus Last Year

32. Stewardship Campaign Question Is Attendance a Predictor of Giving?

33. Average Attendance: 2009 – 234 2010 – 230 2011 – 213 2012 – 212 Take Away Message – Attendance Trending is not that of a growing church

34. Facility Management • From the DOA’s Job Description: • Manages custodial and lawn care services and ensures that the buildings and grounds are properly maintained. • Contracts with tradespersons to handle repairs and maintenance as needed; monitors work done. • Works with Building and Grounds (B&G) Committee to develop routine maintenance schedule. Implements schedule as required. • Works with B&G committee to determine major maintenance and repair requirements and make recommendations to Finance Committee and Board as necessary. Implement decisions • Solicits bids and hires contractors for major improvements as approved by the Board of Directors. • Establishes procedures for use and care of the building and grounds and ensures they are effectively implemented. • Supervises facility rental agreements and ensures conformance.

35. Facility Management • Recent Accomplishments • Solar Installation - $7,200 out-of-pocket investment • Roofing Upgrade - $20,804 and $43,369 • Parking Lot Lighting Upgrade - $12,700 • Kitchen Upgrade - $7,500 (funded by Alliance) • Some Room & Flooring Upgrades - $4,825 for Carpet • Flat Screen Monitors - $1,700 • HVAC Repairs & Maintenance Agreement - $26,745 • Custodial Contract -$1,021 per month • Placed Benches in Lobby -$150 ? • Grounds Upkeep - $977

36. Facility Management • On-going Needs/Challenges • HVAC - Current Situation with Unit # 9, Maintenance Contract, Thermostats • Remainder of Roof • Floors – Hard Surface and Carpeted • Custodial – Contract and Additional Needs • Grounds – Jungle, Beds, Slopes, Curb Appeal, etc. • Furnishings - GMFH Chairs, Pews • Other? • Financial Commitment – How to Achieve?

37. Personnel Management • From the DOA’s Job Description: • Ensures completion of new employee paperwork and maintains individual employee files • Coordinates employee benefit programs. Ensures that payroll deductions are appropriately established and maintained as changes are implemented. • Submits payroll data to payroll service provider. Ensures accuracy of input and resolves any discrepancies with payroll service. Ensures payroll service submits payroll tax payments and quarterly tax filings on our behalf. • Maintains individual employee vacation and sick-leave data and reports as necessary to ensure conformance with days allowed • Works with Personnel Committee as necessary to develop and maintain Personnel Manual, employee Job Descriptions and other personnel related documents as required.

38. Personnel Management • Personnel Policies & Procedures Manual • Current Version Approved in June 2012 • Major undertaking by the Personnel Committee • Some controversy but managed effectively. Discussions led to meaningful revisions • Led to increased structure and responsibilities by DOA • Management of pre-employment paperwork • Creation and maintenance of personnel files • Distribution of the “Hand Book” and acknowledgement by employees • Execution of Confidentiality Agreement by employees and certain volunteers • Personnel Committee is working to finalize a Performance Review procedure

39. Personnel Management - Staff For Future Consideration: A Church of this size should have, in my opinion, a full-time Custodian/Handy Person

40. Review of Objectives

41. Review of Objectives

42. Review of Objectives

43. Review of Objectives

45. Review of Objectives

46. Governance • Brief Overview • 4 Board Presidents • A Book • A Consultant • A Task Force • Organizational Structure/Responsibilities • Next Slide

47. Vision, Mission, Values & Beliefs Congregation Nominating Com. Executive Team Board of Directors Senior Minister Director of Admin. Program Council Chair Board Committees Operations Staff Program Council Ministerial Staff TVUUC OrganizationChart Rev. 22Mar2012 Operations Committees Program Cluster Chairs Ministerial Committees Program Committees Discernment & Oversight Ministry, Programs & Operations

48. Governance • Executive Team Function – From the ET Charter • General – The Executive Team shall: • Demonstrate leadership that is caring, nurturing, open, responsive, visionary, and empowering. • Not cause or allow any practice, activity, decision, or organizational circumstance that is unlawful or imprudent, or that is in violation of Unitarian Universalist Principles, Congregation Bylaws, church policies or commonly accepted business, accounting, and professional ethics and practices. • Operate within the Executive Team Limitations as required by the TVUUC bylaws and to make decisions consistent with those limitations. • Ensure that all MPO elements are fully optimized so as to exceed the expectations of the community • Comply with all policies as approved by the BOD and to advise the BOD on the need for new policies or the revision of existing policies • Have approval authority over all procedures that are associated with the MPO functions of the church and to operate within those procedures wherever possible. • Provide executive leadership and oversight to all programmatic elements of the church including Religious Education (all ages), Music, Membership and other programs within the various cluster groups that may be both internal and external to the church community.

49. Governance • Goals and SMART Objectives • Essential to How we get things done! • Status of Governance Manual • I will begin some serious writing after the Pub-Night with the expectation that I will deliver a substantially completed Manual to the November Board meeting! • On-going role of Director of Administration • Maintains the Governance Manual and insure its availability to ALL Stake-Holders • Be the Executive Team “Whip” for all things related to Goals and Objectives!