Unitarian Universalist Association Annual Treasurer s Report June 2006 St. Louis, MO

Transcription

1 Unitarian Universalist Association Annual Treasurer s Report June 2006 St. Louis, MO Jerry Gabert, Treasurer and Vice President of Finance

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3 Unitarian Universalist Association Annual Treasurer s Report To the 2006 General Assembly in St. Louis, Missouri T h e UUA C u r r e n t O p e r a t i o n s Budget Summary c o n t a i n s r e s u l t s f o r t h e f i s c a l y e a r s e n d i n g J u n e 3 0, and 200 5, along with the budget for the current fiscal y e a r j u s t e n d i n g, t h e a p p r o v e d b u d g e t f o r t h e upcoming FY2007 budget year and the outlying P reliminary F Y b u d g e t. Y o u w i l l a l s o f i n d a n O p e r a t i n g B u d g e t S u p p l e m e n t a s a n a i d t o u n d e r s t a n d i n g t h e b u d g e t c a t e g o r i e s a n d O p e r a t i n g B u d ge t Graphs to satisfy your visual interest. Fidelity Investments Tax-Exempt Services Company, as the provider of trust investment, record -keeping and administration services for our Unitarian Universalist Organizations Retirement Plan h a s e n a b l e d o u r c o n ti n u e d e x p a n s i o n o f t h e n u m b e r o f c o n g r e g a t i o n s e l e c t i n g t o p a r t i c i p a t e i n t h e p l a n t o m o r e t h a n organizations and 2544 participants. T h e s trategic view and review of the Asset Allocation Policy of the UUA General Investment Fund (GIF) b y t h e I n v e s t m ent Committee is ongoing. I n c o n j u n c t i o n w i t h t h e s e r v i c e s o f N e w E n g l a n d P e n s i o n Consultants (NEPC) the committee considers a globally diversified investment program to achieve the 8.5% target return using a w i d e r a n g e o f a s s e t c l a s s e s t h a t a r e a p p r o p r i a t e f o r a n e n d o w m e n t s u c h a s t h e General Investment Fund, with its attendant goals, objectives and constraints w h i c h n o w i n c l u d e a s s e t c l a s s e s t h a t h a d n o t p r e v i o u s l y b e e n r e p r e s e n t e d i n t h e a s s e t a l l o c a t i o n p o l i c y o f t h e G I F. T h e p o l i c y o f the GIF has, for m a n y y e a r s, t a r g e t e d a 6 0 % i n v e s t m e n t i n e q u i t y s e c u r i t i e s a n d a 4 0 % a l l o c a t i o n t o f i x e d income securities. T h i s o v e r a l l p o l i c y h a d b e e n a c h i e v e d t h r o u g h t h e u s e o f b a l a n c e d m a n a g e r s e a c h o f w h o m m a n a g e d a b l e n d o f b o t h s t o c k s a n d b o n d s. R e b a l a n c i n g h a d b e e n t h e r e s p o n s i b i l i t y o f e a c h individual manager. T h e I n v e s t m e n t C o m m i t t e e unanimously voted to maintain the overall asset allocation, but to revise the UUA policy to include additional fixed income and equity asset classes in the GIF. The Committee a lso revised t h e target asset class allocations to accommodate new classes, to set permissible ranges for each a s s e t c l a s s a n d t o c r e a t e a r e v i s e d r e b a l a n c i n g p o l i c y d r i v e n b y t h e p o s i t i o n o f t h e a s s e t c l a s s w i t h i n t h e r a n g e e s t a b l i s h e d. T h e C o m m i t t e e r e c o gnized that the implementation of such changes warranted the review, search and selection of investment advisors that are specialist managers, with expertise in a particular asset class. It was determined that the funding of new asset classes would either o ccur through a c h a n g e i n m a n a g e m e n t o f a c o m p o n e n t ( e q u i t y o r f i x e d i n c o m e ) o r b y t h e e l i m i n a t i o n o f o n e o r m o r e managers. The Investment Committee voted to liquidate the global fixed income assets managed by Lazard Asset Management, due to significant u n d e r-p e r f o r m a n c e r e l a t i v e t o t h e a p p r o p r i a t e b e n c h m a r k. T h e p r o c e e d s w e r e c o m b i n e d w i t h o t h e r c o r e f i x e d i n c o m e f u n d s m a n a g e d b y P I M C O a n d k n o w n a s t h e S I T T o t a l Return Trust II, under the aegis of Oppenheimer Capital. The Committee also terminated the serv i c e s o f B e a c o n A s s e t M a n a g e m e n t f o r b o t h t h e e q u i t y a n d f i x e d i n c o m e p o r t i o n o f t h e p o r t f o l i o, a s w e l l a s t h e e q u i t y f u n d s m a n a g e d b y O p p e n h e i m e r C a p i t a l a n d R e g e n t I n v e s t m e n t A d v i s o r s f o r b o t h e q u i t y a n d f i x e d i n c o m e m a n a g e m e n t.

4 T h e C o m m i t t e e h a d b e e n studying high yield and global bond managers and selected two specialty managers to assist with a broader diversification through the reinvestment of fixed income assets. The fixed income proceeds were invested in Seix Investment Advisors Hi - Yield Investm e n t S t r a t e g y a n d t h e G M O ( G r a n t h a m, M a y o, V a n O t t e r l o o & C o. ) G l o b a l B o n d F u n d. T h e c o m m i t t e e also took on t h e analysis of alternatives for placement and strategic investment of core equity assets. In its analysis, the history, structure and strategy of the investment firms was considered and also their investment philosophy and practice, professional staff, fee structure and their ability to assist the UUA with implementation of its socially responsible investment strategy. T h e Investors Bank & Trust Comp a n y (IBT), custodian for the General Investment Fund (GIF), has enabled more timely quarterly endowment fund reconciliation and calculation of the GIF market value thus permitting earlier distribution of the quarterly payments. The priority service goal is t o i m p r o v e t h e clarity and quality of the quarterly statements. The Association encourages member congregations, districts and affiliates to invest endowment funds along with the UUA s endowment portfolio. Investing with the UUA offers the advantage of i n v e s t m e n t a n d a d m i n i s t r a t i v e s t a b i l i t y w i t h o u t t h e n e e d f o r p e r i o d i c r e t r a i n i n g a n d w i t h t h e c o m f o r t o f h a v i n g t h e Association s Investment Committee oversight. Perhaps the time is right to consider investing your C o n g r e g a t i o n s e n d o w m e n t f u n d s w i t h t h e Association. T h e Unitarian Universalist Association comparative Financial Statements f o r t h e y e a r s e n d e d J u n e 3 0, and , o n w h i c h K P M G e x p r e s s e d a n u n q u a l i f i e d o p i n i o n, are separately included in these UUA Annual Reports. We recommend them for your understanding of our overall financial picture, and the more comprehensive knowledge that emerges from reading the footnotes. The one page comparison of the Statements of Financial Position, on Page 2, is especially of value for the overview it pro v i d e s o f t h e f i n a n c i a l s t r e n g t h o f o u r A s s o c i a t i o n. The total assets less liabilities and resultant total net assets, at June 30, was $147,899 thousand. There are su p p l e m e n t a l schedules of assets beginning o n S c h e d u l e I, page 1 6, a n d l i a b i l i t i e s a n d net assets o n S c h e d u l e I I, p a g e 1 7, t h a t i n c l u d e b u s i n e s s s e g m e n t i n f o r m a t i o n f o r C u r r e n t, B e a c o n P r e s s, C P L C a n d the GIF. Additional GIF reporting is on Schedule IV, p a g e s that include the investment portfolio i n d e t a i l. A t i t s O c t o b e r , m e e t i n g t h e U U A B o a r d o f T r u s t e e s a p p r o v e d a n e w p o l i c y f o r f u n d i n g f u t u r e UUA capital campaigns, voting as follows: To fund future capital campaigns by taking an additional draw up to 2% from the Associations accumulated appreciation from restricted endowments in an amount s u f f i c i e n t t o c o v e r c a p i t a l f u n d r a i s i n g e x p e n s e s. T h i s d r a w i s i n a d d i t i o n t o t h e 5 % d r a w f o r t h e operating b u d g e t, n o t t o e x c e e d a t o t a l o f 7 %. U n d e r t h e t e r m s o f t h e H o l d e e n a n d c e r t a i n o t h e r t r u s t s, t h e A s s o c i a t i o n h a s a n i r r e vo c a b l e r i g h t t o r e c e i v e a n d t o u s e t h e i n c o m e e a r n e d o n t h e t r u s t a s s e t s f o r d e s i g n a t e d p u r p o s e s, b u t t h e p r i n c i p a l i t s e l f w i l l n o t b e s p e n d a b l e. I n c o m p l i a n c e w i t h t h e p r a c t i c e r e c o m m e n d e d i n t h e A m e r i c a n I n s t i t u t e o f C e r t i f i e d P u b l i c A c c o u n t a n t s N o t f o r P r o f i t A u d i t a n d A c c o u n t i n g G u i d e, t h e f a i r v a l u e o f t h e t r u s t a s s e t s h a v e b e e n r e c o r d e d a s temporarily restricted net assets amounting to $ 4 0, t h o u s a n d, c o m p r i s e d o f t h e H o l d e e n a n d o t h e r o u t s i d e trusts. This reporting practice affects the reporting visibility of these trust assets, but should not be construed as increasing the amounts to be received in t h e f u t u r e o r c h a n g i n g t h e d e s i g n a t e d u s e o f t h e i n c o m e.

5 T h e Blackbaud Financial Edge f i n a n c i a l reporting system software h a s p e r m i t t e d t h e d e v e l o p m en t o f more useful monthly and quarterly reporting for our current operations. In addition to monthly reports, quarterly consolidating statements by business segment are prepared for reporting to the Finance C o m m i t t e e, t o our mortgage banker and t o t h e A d m inistration. Also, Committee chairs and each staff l i a i s o n r e c e i v e q u a r t e r l y f i n a n c i a l r e p o r t s c o m p a ring e x p e n d i t u r e a c t i v i t y w i t h b u d g e t a n d p r i o r y e a r. Continuing progress is expected to include improved operating cash flow reporting and electronic acc ess t o t h e f i n a n c i a l r e p o r t i n g s y s t e m f o r i n f o r m a t i o n a n d a n a l y s i s b y t h e p r o g r a m a n d s u p p o r t s e r v i c e s t a f f o f t h e A s s o c i a t i o n. T h e b u d g e t a r y p l a n n i n g i s a l s o m o r e r e f l e c t i v e o f o u r h i s t o r i c a l m o n t h l y a n d q u a r t e r l y experience, through tracking the income a s well as the program and staff group budgets for comparative purposes, with the budget reflecting seasonal variation. Working together, the Investment Committee and t he Committee on Socially Responsible Investing m a d e progress in the past year. T h e C o n gr e g a t i o n a l P r o p e r t i e s a n d L o a n C o m m i s s i o n n e w s i t e a c q u i s i t i o n program and Leeds certification practice was initiated and will b e available in workshops lead by Dr Wayne Clark. The following page includes the description of the special program event and w o r k s h o p s t h a t m a y b e o f i n t e r e s t t o y o u. Please c ome and join us! Respectfully submitted with sincere appreciation for the honor of having served as your Treasurer. Jerry Gabert, Treasurer and Vice President of Finance

6 UUA General Investment Fund Investing based on UU values for your congregation s heart, mind and pocketbook Congregational Finances: A Powerful Tool for Social Justice Community Investing, Shareholder Activism, Investment Screens. Each offers a powerful addition to congregational social justice strategies. But which one? How much money is needed? What committee structure is effective for launching each one? What s step one? You ll leave with an action plan to get your congregation s finances bending towards justice. Speakers: Jim Gunning, Stephanie Leighton, Vanessa Lowe & Rev. Sydney Morris Date: Friday, June 23 rd, 4:00 5:15 p.m. Room: St. Louis Convention Center Room 242 REPEAT: Sunday, June 25 th, 1:45 3:00 pm The Double Bottom Line: Investing Our Values If you have the Q s we ll do our best to have the A s at this open house workshop. Please join our smorgasbord of UU representative who have knowledge and interest in socially responsible investing, shareholder advocacy, the UUA General Investment Fund, and the UU Service Committee in a free-for-all dialogue. Speakers: Jim Gunning, Rev. Sydney Morris, Rev. Jim Sherblom & Jerry Gabert Date: Sunday, June 25 th, 12:00 1:15 pm Room: St. Louis Convention Center Room 220 Investing Responsibly A report on the UUA s General Investment Fund will be available and questions answered, including the Investment Committee s commitment to socially responsible investing and its on-going relationship with the Committee on Socially Responsible Investing. Speakers: Craig Scholl & Rev. Jose Ballaster Date: Thursday, June 22 nd, 1:00 2:15 pm Room: St. Louis Convention Center Room 280 Socially Responsible Investing

7 Operating Budget Summary F Y a n d R e s u l t s F Y a n d B u d g e t FY2008 Preliminary

8 UUA Budget Summary FY04 FY05 FY06 FY07 FY08 Current Operations Results Results Budget Budget Preliminary 10/15/2005 1/21/2006 5/3/2006 INCOME Income for General Support Fundraising - APF Churches & Fellowships 5, 8 0 4, , 0 6 8, , 4 9 3, , 7 6 6, , 0 5 3, Fundraising - APF $1 for Growth Fund 1 2 9, , Fundraising - Friends of the UUA 9 2 9, , 1 8 8, , 6 0 0, , 1 5 0, , 3 0 0, Freedom to Marry Fund 6 6, Unrestricted Gifts and Bequests 4 5 0, , , , , Subtotal 7, 3 8 0, , 7 5 0, , 4 9 3, , 3 4 1, , 7 0 3, Administration Fees 7 5 4, , , , , General Investment Fund Income 2, 1 0 3, , 0 1 3, , 0 7 4, , 2 1 2, , 2 0 9, Other Current Fund Income 2, 5 6 0, , 6 4 9, , 7 8 2, , 8 0 8, , 6 4 2, Total Income for General Support 12,798,623 13,255,906 14,262,045 15,073,109 15,270,260 Income for Designated Purposes Handing on the Future Income 4 2 6, , , , , Campaign for Unitarian Universalism 9 0 1, , , , , Campaign , , , UUCSR Veatch Grants 2, 1 1 8, , 8 8 0, , 0 0 9, , 8 9 4, , 9 2 9, Grants and Scholarships 8 4 8, , , , , Ministerial Aid Funds 5 0 6, , , , , Holdeen and International Trusts and Grants 1, 3 3 0, , 3 5 3, , 3 7 3, , 4 2 5, , 4 2 5, Income for Other Purposes 1, 1 0 2, , 1 5 9, , 4 3 3, , 8 2 3, , 0 4 2, Total Income for Designated Purposes 7,233,923 6,961,599 7,265,449 7,499,065 7,684,120 General Assembly - net 0 ( 4 0, ) Total Income 20,032,547 20,177,465 21,527,494 22,572,174 22,954,380 EXPENDITURES Board & Volunteer Leadership Board of Trustees 1 8 0, , , , , Board Committees 8 8, , , , , Board Task Forces 3, , , , , Moderator 1 0, , , , , Nominating Committee 1 8, , , , , Commission on Appraisal 2 5, , , , , Ministerial Fellowship Committee 1 8 5, , , , , APF Continental Committee 2 9, , , , , U U Funding Program 1, 0 4 5, , , 0 1 9, , 0 1 9, , 0 1 9, Total Board & Volunteer Leadership 1,587,506 1,575,048 1,697,828 1,674,975 1,720,800 Program Advocacy and Witness Information and Public Witness 1 9 1, , , , Advocacy Programs 4 9 9, , , , , International Office 2 0 9, , , , , Holdeen Designation Trusts 4 5 6, , , , , Holdeen India Program 7 0 9, , , , , Total Advocacy and Witness 2, 0 6 5, , 1 1 6, , 1 8 7, , 2 4 7, , 0 1 8, Congregational Services Director's Office 3 4 1, , , , , Congregational Growth , , , Lay Leadership Development 1 8 3, New Congregation and Growth Resources 3 3 0, , , Congregational Justice Making Resources 2 6 5, , , , , Young Adult and Campus Ministry Director 4 0 0, , , , , Congregational Fundraising Services 3 6 4, , , , , Services to Large Congregations 4 6 9, , , , , Total Congregational Services 2, 3 5 5, , 1 0 1, , 9 3 0, , 7 2 5, , 6 2 9, 7 6 5

9 UUA Budget Summary FY04 FY05 FY06 FY07 FY08 Current Operations Results Results Budget Budget Preliminary 10/15/2005 1/21/2006 5/3/2006 (Program, continued) District Services District Services 1, 4 4 2, , 5 6 0, , 7 8 9, , 9 7 5, , 1 2 2, District APF Grants 6 0 1, , , , , Total District Services 2, 0 4 3, , 1 5 2, , 3 9 3, , 6 3 8, , 8 1 2, Identity Based Ministries Identity Based Ministries 5 1 2, , , , , Total Identity-Based Ministries 5 1 2, , , , , Lifespan Faith Development Director of Lifespan Faith Development 1 6 9, , , , , Curriculum Development 2 2 8, , , , , Youth Office 2 4 9, , , , , Youth Council 4 4, , , , , Youth Programs 2 7, , , , , Total Lifespan Faith Development 7 1 9, , , , , Ministry & Professional Leadership Dir. of Ministry and Professional Credentialing 2 4 5, , , , , RE Credentialing 1 0 6, , , , , Ministerial Credentialing 1 5 9, , , , , Settlement 2 0 0, , , , , Office of Church Staff Finances 2 1 9, , , , , Professional Development 2 0 7, , , , , Scholarships and Ministerial Ed Grants 3 6 3, , , , , Continuing Education 4 4, , , , , Aid Funds 5 3 2, , , , , Panel on Theological Education 6 3 6, , , , , Total Ministry & Prof. Development 2, 7 1 6, , 5 8 6, , 6 4 3, , 6 8 3, , 7 0 7, Publishing Communications Director of Communications 1 2 5, , , , , Periodicals 7 4 1, , , , , Publications Administration 4 2 1, , , , , UUA Bookstore 7 6 8, , , , , Total Communications 2, 0 5 6, , 1 3 5, , 2 0 8, , 2 2 9, , 4 3 2, Beacon Press Total Operating Income 4, 4 4 2, , 0 3 9, , 2 2 7, Total Operating Expenses 4, 6 1 7, , 7 8 3, , 4 4 6, Beacon Press (display only, not in totals) ( 1 8 9, ) 2 5 6, ( 2 1 8, ) Total Publishing 2, 0 5 6, , 1 3 5, , 2 0 8, , 2 2 9, , 4 3 2, Total Program 12,468,852 12,375,286 12,818,637 12,972,453 13,111,520

10 UUA Budget Summary FY04 FY05 FY06 FY07 FY08 Current Operations Results Results Budget Budget Preliminary 10/15/2005 1/21/2006 5/3/2006 Administration Office of the President 3 5 5, , , , , Office of the Executive Vice President 2 9 5, , , , , Contingency Expense 1 3 0, , , , , Human Resources 3 8 1, , , , , Total Administration 1,163,134 1,424,035 1,413,413 1,815,923 1,835,924 Infrastructure Stewardship and Development VP of Stewardship & Development 1 9 7, , , , , APF Campaign 1 8 8, , , , , Friends Campaign 3 0 4, , , , , Charitable Gift and Estate Planning 2 0 3, , , , , Campaign for UUism / Umbrella Giving 6 9 2, , , 1 7 6, , 5 2 5, , 7 5 7, Total Financial Development 1, 5 8 6, , 5 3 5, , 2 2 0, , 6 9 6, , 0 2 5, Information Technology Services Data and Technical Services 9 3 7, , , 0 2 6, , 0 4 3, , 0 9 8, Office of Electronic Communications 2 1 3, , , , , Total Information Technology Services 1, 1 5 0, , 1 9 6, , 2 5 7, , 2 8 8, , 3 1 2, Internal Services Finance Treasurer and Vice President of Finance 2 7 1, , , , , Financial Services 4 3 2, , , , , Miscellaneous Funds and Scholarships 5 1, , Total Finance 7 5 5, , , , , Facilities & Operations Services Facilities - General 8 1 1, , , , , Beacon Street 9 4, , , , , M t V e r n o n S t r e e t 1 5 9, , , , , Eliot and Pickett House 2 5 1, , , , , Total Facilities & Operations Services 1, 3 1 6, , 3 0 2, , 3 4 6, , 3 3 4, , 3 6 6, Total Internal Services 2, 0 7 2, , 0 6 2, , 1 2 0, , 1 2 3, , 1 6 6, Total Infrastructure 4,809,430 4,794,352 5,597,616 6,108,823 6,504,738 Total Expenditures 20,028,921 20,168,726 21,527,494 22,572,174 23,172,982 Expenditures Over (Under) Income 3,625 8, (218,602)

11 Operating Budget Supplemental

12 BUDGET SUPPLEMENT =================================================================== T h e f o l l o w i n g s u p p l e m e n t a l i n f o r m a t i o n i s p r o v i d e d a s a n a i d t o h e l p y o u u n d e r s t a n d t h e m a j o r c a t e g o r i e s o f t h e A s s o c i a t i o n s b udget. INCOME FOR UUA GENERAL SUPPORT Fundraising APF Churches & Fellowships Annual Program Fund INCOME T h e A n n u a l P r o g r a m F u n d ( A P F ) p r o v i d e s f o r a b o u t 4 6 % o f t h e U U A s b u d g e t e d i n c o m e f o r g e n e r a l s u p p o r t. T h e A P F P r o g r a m c o n c e n t r a t e s i t s e f f o r t s on raising i n c o m e f r o m m e m b e r congregations: the suggested contribution for fiscal year 2004 wa s $ 4 8 p e r m e m b e r, a n d was $ 5 0 p e r m e m b e r f o r f i s c a l y e a r , w h i l e f i s c a l y e a r i s $ 5 1 p e r m e m b e r a n d f i s c a l y e a r w i l l b e $ 5 3 p e r m e m b e r. The UUA byl a w s r e s t r i c t b u d g e t a r y i n c r e a s e s i n A P F c o n t r i b u t i o n s t o n o m o r e t h a n 7 % o v e r t h e p r e v i o u s y e a r s a c t u a l i n c o m e. A P F i n c o m e i s p r o j e c t e d t o i n c r e a s e a n n u a l l y by 4.2 % t h r o u g h f i s c a l y e a r I n a n d , $ 1 o f t h e $ 2 i n c r e a s e was s p e c i f i c a l l y d e s i g n a ted to fund congregational growth. Fundraising - Friends of the UUA T h e F r i e n d s o f t h e U U A c a m p a i g n i s d i r e c t e d t o i n d i v i d u a l U n i t a r i a n U n i v e r s a l i s t s. T h r o u g h d i r e c t m a i l, p h o n e, a n d p e r s o n a l v i s i t s b y s t a f f a n d v o l u n t e e r s, t h e F r i e n d s c a m p a i g n r a i s e s a b o u t % o f t h e A s s o c i a t i o n s a n n u a l i n c o m e f o r g e n e r a l s u p p o r t. T h e gi v i n g f r o m c u r r e n t a n d n e w F r i e n d s d o n a t i o n s w a s $ 1, 1 8 8, i n F Y , i s b u d g e t e d t o b e $ 1,6 0 0,0 0 0 i n F Y a n d is e x p e c t e d t o b e $2,1 5 0, i n F Y a n d $ 2, 3 0 0, i n F Y Unrestricted Gifts and Bequests C h a r i t a b l e G i f t s a n d E s t a t e P l a n n i n g e n c o u r a g e s i n d i v i d u a l s t o i n c l u d e t h e U U A i n t h e i r f i n a n c i a l e s t a t e p l a n s a n d t o c r e a t e c h a r i t a b l e t r u s t s. T h e F Y r e s u l t s w e r e $ 4 5 0, a n d F Y w a s $ 3 6 9, w i t h F Y b u d g e t e d a t $ 4 0 0, 0 0 0, F Y b u d g e t e d a t $ 4 2 5, a n d F Y a t $ 3 5 0, Administration Fees T h e A s s o c i a t i o n c h a r g e s i t s g e n e r a l i n v e s t m e n t f u n d s, t h e U U A R e t i r e m e n t p l a n, a n d o t h e r f u n d s a n a n n u a l a d m i n i s t r a t i v e f e e e q u a l t o t h e a p p r o x i m a t e c o s t o f h a n d l i n g t h e f u n d s. General Investment Fund (GIF) Income R e p r e s e n t s i n c o m e o n i n v e s t m e n t s m a d e w i t h f u n d s d o n a t e d o r b e q u e a t h e d t o t h e A s s o c i a t i o n b y i n d i v i d u a l s a n d o r g a n i z a t i o n s. T h e u n i t i z e d c o m m o n t r u s t f u n d i s v a l u e d q u a r t e r l y b a s e d o n a t h i r t e e n q u a r t e r r o l l i n g a v e r a g e o f t h e m a r k e t v a l u e o f t h e f u n d. T h e p r o j e c t i o n f o r F Y through F Y i s b a s e d o n t h e a s s u m p t i o n t h e m a r k e t w i l l r e m a i n a t t h e D e c e m b e r 3 1,

13 l e v e l. T h e G I F i n c l u d e s a $ 2 0 m i l l i o n e n d o w m e n t d o n a t e d t o t h e A s s o c i a t i o n b y t h e U n i t a r i a n Universalist Congregation at Shelter Rock (UUCSR) of Manhasset, New York. A t i t s O c t o b e r m e e t i n g t h e U U A B o a r d o f T r u s t e e s a p p r o v e d a n e w p o l i c y f o r f u n d i n g U U A c a p i t a l c a m p a i g n s, v o t i n g a s f o l l o w s : T o f u n d f u t u r e c a p i t a l c a m p a i g n s b y t a k i n g a n a d d i t i o n a l d r a w u p t o 2 % f r o m t h e A s s o c i a t i o n s a c c u m u l a t e d a p p r e c i a t i o n f r o m r e s t r i c t e d e n d o w m e n t s i n a n a m o u n t s u f f i c i e n t t o c o v e r c a p i t a l f u n d r a i s i n g e x p e n s e s T h e i n c o m e was d o w n 4 % i n F Y , i s e x p e c t e d t o b e u p 3 % i n F Y , 8 % i n F Y a n d level i n F Y Other Current Fund Income T h e O t h e r C u r r e n t F u n d I n c o m e i s i n c l u d e d o n a g r o s s b a s i s, b e f o r e t h e c o s t o f s e r v i c e s p r o v i d e d. It consists of UUA bookstore sales, t h e E l i o t & P i c k e t t lodging house for Unitarian Universalists r e n t a l i n c o m e, p e r i o d i c a l s s u b s c r i p t i o n s a n d a d v e r t i s i n g i n c o m e, o f f i c e f a c i l i t i e s r e n t a l i n c o m e f r o m a f f i l i a t e s, i n c o m e r e c e i v e d f r o m o u t s i d e t r u s t s, i n v e s t m e n t i n c o m e f r o m c o m m u n i t y a n d m i n o r i t y b a n k s, f u n d r a i s i n g c o n s u l t a t i o n f e e s r e l a t e d t o c o n g r e g a t i o n a l a n n u a l f u n d a n d c a p i t a l c a m p a i g n s a n d o t h e r m i s c e l l a n e o u s i n c o m e. INCOME FOR UUA DESIGNATED PURPOSES Handing on the Future Income I n c o m e f r o m t h e c o m p l e t e d H a n d i n g o n t h e F u t u r e c a p i t a l c a m p a i g n i s r e f l e c t e d a s t h e p l a n n e d p r o g r a m e x p e n d i t u r e s a r e p r o v i d e d. T h i s i n c l u d e s t h e a n n u a l e a r n i n g s o n m i n i s t r y -r e l a t e d e n d o w m e n t s ( i d e n t i f y i n g a n d r e c r u i t i n g p r o m i s i n g c a n d i d a t e s, s c h o l a r s h i p a i d t o s t u d e n t s a n d c o n t i n u i n g e d u c a t i o n g r a n t s ) p l u s t h e c o m m i t m e n t s m a d e a g a i n s t f o u r s p e n d d o w n f u n d s f o r r e c r u i t m e n t o f m i n i s t e r i a l c a n d i d a t e s, y o u t h a n d y o u n g a d u l t m i n i s t r y, p u b l i c r e l a t i o n s, a n d n u r t u r i n g c o n g r e g a t i o n a l g r o w t h. T h e o v e r a l l i n c o m e f r o m t h e c a p i t a l c a m p a i g n w i l l d e c r e a s e a s t h e s e f u n d s a r e f u l l y u t i l i z e d. Campaign for Unitarian Universalism I n c o m e f r o m t h e C a p i t a l C a m p a i g n f o r U n i t a r i a n U n i v e r s a l i s m i n c l u d e s t h e M e t r o p o l i t a n Strategy, Growth Team a n d t h e m a r k e t i n g c a m p a i g n, r e l i g i o u s e d u c a t i o n c u r r i c u l u m p r o j e c t v i s i o n i n g, a n d t h e i m p l e m e n t a t i o n o f t h e Y o u n g A d u l t C a m p u s M i n i s t r y l o n g r a n g e p l a n Searching for the Future. UUCSR Veatch Grants Grants from the Veatch Program of the Unitarian Universalist Congregation a t Shelter Rock allow the UUA program staff groups, including Congregational and District Services extension programs, Lifespan Faith Development and Lay Leade r s h i p d e v e l o p m e n t t o s u p p o r t t h e g r o w t h o f m i s s i o n -b a s e d, f a i t h -f i l l e d U n i t a r i a n U n i v e r s a l i s t c o n g r e g a t i o n s. A l s o i n c l u d e d a r e t h e U n i t a r i a n Universalist Funding Program grants. Veatch Grants o f $ 8 2 5, i n F Y w i l l b e d e d i c a t e d t o Growth, RE Credentialing, Lay Leadership, Ethics in Congregational Life, and to Identity Based M i n i s t r i e s, A d v o c a c y a n d W i t n e s s, Y o u n g A d u l t a n d C a m p u s M i n i s t r y, Young Adults, and

14 U U & M e. T h e U n i t a r i a n U n i v e r s a l i s t F u n d i n g P r o g r a m p a n e l s c o n t i n u e a t $ 1 m i l l i o n a v a i l a b l e f o r grant making. Educational Grants and Scholarships R e f l e c t s i n c o m e f r o m $ 9 m i l l i o n e n d o w m e n t f r o m the Unitarian Universalist Congregation at S h e l t e r R o c k f o r t h e o l o g i c a l e d u c a t i o n, f r o m t w o -t h i r d s o f t h e S t L a w r e n c e E d u c a t i o n a l t r u s t i n c o m e, U U A e n d o w e d s c h o l a r s h i p f u n d s a n d t h e L i v i n g T r a d i t i o n f u n d. Ministerial Aid Funds R e p r e s e n t s i n c o m e f r o m M i n i s t e r i a l A i d e n d o w m e n t f u n d s a n d t h e L i v i n g T r a d i t i o n f u n d. Holdeen and International Trusts I n c l u d e s i n c o m e f r o m t h e H o l d e e n T r u s t f u n d s f o r H o l d e e n I n d i a Program grants, for the d e s i g n a t i o n t r u s t r e c i p i e n t s a n d o t h e r i n t e r n a t i o n a l p r o g r a m c h a r i t a b l e s e r v i c e a c t i v i t y. Other Purposes C a p i t a l G a i n s f o r F u n d r a i s i n g i n c o m e r e p r e s e n t s a c c u m u l a t e d g a i n s o n e n d o w m e n t f u n d s t h a t a r e u s e d f o r f u n d i n g e x p e n s e s o f t h e C a p i t a l C a m p a i g n f o r U n i t a r i a n U n i v e r s a l i s m a n d f o r C a m p a i g n T h e s e f u n d s w i l l b e r e t u r n e d t o t h e e n d o w m e n t a s t h e p r o c e e d s o f t h e c a m p a i g n s are r e c e i v e d. O t h e r i n c o m e i s f r o m a v a r i e t y o f s o u r c e s i n c l u d i n g t h e L i b e r a l R e l i g i o u s C h a r i t a b l e S o c i e t y ( L R C S ), w i t h p r o g r a m s u p p o r t a n d o t h e r s u b s i d y i n c o m e. In c o m e i s a l s o p r o v i d e d b y t h e C o u n c i l o n C h u r c h S t a f f F i n a n c e s, t h e U U M A a n d L R E D A i n s u p p o r t o f a d m i n i s t r a t i v e s t a f f i n g e x p e n s e s i n c u r r e d b y t h e O f f i c e o f C h u r c h S t a f f F i n a n c e s. General Assembly W h e n t h e G e n e r a l A s s e m b l y e a r n s a n e x c e s s o f i n c o m e o v e r e x p e n s e s, t h i s e x c e s s i s a d d e d t o t h e g e n e r a l i n c o m e o f t h e A s s o c i a t i o n. W h e n t h e r e i s a n e x c e s s o f e x p e n s e o v e r i n c o m e, t h e r e s u l t i n g l o s s i s r e c o r d e d a s a n e x p e n s e a n d m a d e u p f r o m t h e A s s o c i a t i o n u n r e s t r i c t e d e n d o w m e n t f u n d s. T h e f i n a n c i a l o b j e c t i v e o f t h e G e n e r a l A s s e m b l y i s t o b r e a k e v e n. Board and Volunteer Leadership EXPENDITURES T h e B o a r d o f T r u s t e e s s e r v e s a s t h e c h i e f m a n a g e m e n t b o d y o f t h e A s s o c i a t i o n w h e n t h e G e n e r a l Assembly i s n o t i n s e s s i o n. T h e b u d g e t p r o v i d e s f o r t r a v e l a c c o m m o d a t i o n s a n d m e a l s f o r t h e B o a r d o f T r u s t e e s a n d a l l B o a r d l e v e l a n d e l e c t e d c o m m i t t e e s a n d t a s k f o r c e s t o c o n d u c t t h e a f f a i r s o f t h e A s s o c i a t i o n a s s e t f o r t h i n t h e b y l a w s. E x p e n s e s f o r t h e M o d e r a t o r a n d F i n a n c i a l A d v i s o r s t r a v e l a n d a c t i v i t i e s a r e a l s o c o v e r e d. R e g i o n a l s u b c o m m i t t e e s o f t h e M i n i s t e r i a l F e l l o w s h i p C o m m i t t e e a r e i n c l u d e d i n t h e b u d g e t a t t h e i r a n t i c i p a t e d c o s t s.

15 The UU Funding Program receives grants f r o m t h e V e a t c h P r o g r a m o f t h e U n i t a r i a n U n i v e r s a l i s t C o n g r e g a t i o n o f S h e l t e r R o c k a n d a d m i n i s t e r s f o u r l a y l e a d e r s h i p l e d g r a n t m a k i n g p a n e l s. Programs Advocacy Programs including the Office of Information and Public Witness T h i s s t a f f g r o u p i n c l u d e s t h e U U W a s h i n g t o n C e n t e r a d v o c acy and witness programs; the O f f i c e o f I n f o r m a t i o n a n d P u b l i c W i t n e s s, t h e I n t e r n a t i o n a l O f f i c e a n d w o r k w i t h t h e H o l d e e n I n d i a P r o g r a m a n d H o l d e e n I n t e r n a t i o n a l P a r t n e r s. T h e U U A H o l d e e n I n d i a P r o g r a m d i s t r i b u t e s t r u s t i n c o m e d e s i g n a t e d f o r u s e i n I n d i a f o r m a t e r n i t y, c h i l d w e l f a r e, e d u c a t i o n a n d m i g r a t i o n e x p e n s e s, a n d o t h e r c h a r i t a b l e s e r v i c e s. T h e f u n d e n a b l e s s o m e o f t h e p o o r e s t a n d w e a k e s t g r o u p s i n I n d i a t o i m p r o v e t h e i r l i v e s a n d c h a n g e t h e i r s o c i a l a n d e c o n o m i c c o n d i t i o n s i n d i r e c t i o n s o f t h e i r o w n c h o o s i n g. P a r t i c u l a r a t t e n t i o n i s p a i d t o t h e n e e d s o f l o w-i n c o m e w o m e n. T h e H o l d e e n I n d i a P r o g r a m F Y grants budget is $ 5 0 0,0 0 0 a n d t h e g r a n t s f o r F Y a re F Y a r e e x p e c t e d t o b e $ 5 2 6, b e c a u s e o f t h e d e c l i n e i n t h e m a r k e t v a l u e o f t h e H o l d e e n i n v e s t m e n t p o r t f o l i o. Congregational Services T h i s s t a f f g r o u p p r o v i d e s s e r v i c e s t o s u p p o r t t h e g r o w t h, h e a l t h, v i t a l i t y a n d d i v e r s i t y o f U n i t a r i a n Universalist congregations around the continent, including: New Congregation and Growth R e s o u r c e s, C o n gregational Justice Making Resources, Young Adult Campus Ministry, Congregational Fundraising Services, Lay Leadership Development, and Services to Large C o n g r e g a t i o n s. T h e m i s s i o n o f C o n g r e g a t i o n a l S e r v i c e s i s t o i n s p i r e a n d s u p p o r t U n i t a r i a n Universalist c o n g r e g a t i o n s a n d c o m m u n i t i e s t o m o r e f u l l y e m b o d y o u r P r i n c i p l e s a n d t o c o n t i n u e t h e i r t r a n s f o r m a t i o n i n t o v i t a l, g r o w i n g, a n t i -r a c i s t a n d a n t i -o p p r e s s i v e i n s t i t u t i o n s o f f e r i n g w i t n e s s a n d m i n i s t r y t o t h e i r c o m m u n i t i e s. T h e s e o f f i c e s p r o v i d e t r a i n i n g f o r m i n i s t e r s a n d l a y p e o p l e c o m m i t t e d t o g r o w t h, s u p p o r t f o r m i n i s t r i e s t o y o u n g a d u l t s, f u n d r a i s i n g s e r v i c e s ( a n n u a l c a n v a s s, c a p i t a l c a m p a i g n a n d m o r e ) a n d a d m i n i s t r a t i o n f o r t h e b u i l d i n g l o a n, l o a n guarantee and first home grant programs. With generous su p p o r t f r o m t h e V e a t c h P r o g r a m o f t h e Unitarian Universalist Congregation at Shelter Rock, grants have been made for support of e x t e n s i o n m i n i s t r y a n d n e w c o n g r e g a t i o n m i n i s t r y, a s w e l l a s h i s t o r i c u r b a n c h u r c h e s. District Services District Services p r o v i d e d o r m a n a g e d b y d i s t r i c t s t a f f a r e a v a i l a b l e t o c o n g r e g a t i o n s u n d e r t h e a u s p i c e s o f t h e d i s t r i c t i n w h i c h t h e y a r e l o c a t e d. T h e m i s s i o n o f t h e d i s t r i c t s t a f f i s t o f o s t e r t h e s p i r i t u a l a n d i n s t i t u t i o n a l h e a l t h o f U n i t a r i a n U n i v e r s a l i s m b y s e r v i n g a s l e a d e r s, c o n s u l t a n t s, a d v o c a t e s a n d e d u c a t o r s i n o u r c o m m u n i t y o f c o n g r e g a t i o n s. T h r o u g h t h e A P F G r a n t s p r o g r a m, d i s t r i c t s b e n e f i t d i r e c t l y f r o m t h e s u c c e s s o f t h e A n n u a l P r o g r a m F u n d. T h e A s s o c i a t i o n r e d i s t r i b u t e s a p o r t i o n o f t h e t o t a l A P F c o n t r i b u t i o n s t o a l l 2 0 d i s t r i c t s i n t h e f o r m o f G r a n t s. C o m m e n c i n g l a s t y e a r, t h e B a s i c G r a n t i s 1 1 % o f t h e D i s t r i c t s p e r c e n t a g e o f F a i r S h a r e a t t a i n e d, u p t o %, t i m e s t h e t o t a l a m o u n t t h e d i s t r i c t c o n t r i b u t e d t o t h e A s s o c i a t i o n i n t h e p r i o r y e a r. I n a d d i t i o n t o t he Basic Grant, a Fair Share Congregations' G r a n t o f $ 1, i s g i v e n w h e n 7 5 % o r m o r e o f a d i s t r i c t s m e m b e r c o n g r e g a t i o n s a r e f u l l F a i r

16 S h a r e. I f a t l e a s t 9 0 % o f t h e c o n g r e g a t i o n s i n a d i s t r i c t a r e f u l l F a i r S h a r e, t h e d i s t r i c t w i l l r e c e i v e $ 5, Identity-Based Ministries (IdBM) T h i s s t a f f g r o u p p r o v i d e s l e a d e r s h i p t o w a r d o u r b e c o m i n g a n a n t i -r a c i s t, a n t i -oppressive, m u l t i c u l t u r a l r e l i g i o u s c o m m u n i t y. T h e p l a n g o i n g f o r w a r d i s t o c o n t i n u e e s t a b l i s h i n g t h e J o u r n e y T o w a r d W h o l e n e s s c o l l a b o r a t i v e l y w i t h Unitarian Universalists in congregations, d i s t r i c t s, s e m i n a r i e s, a l l b o a r d l e v e l c o m m i t t e e s a n d t a s k f o r c e s a n d a s s o c i a t e a n d a f f i l i a t e g r o u p s, through assistance to congregations in developing social justice programs, oversight and support of the UUA s a n t i -r a c i s m i n i t i a t i v e. I n a d d i t i o n, I d e n t i t y-b a s e d M i n i s t r i e s p r o v i d e s s u p p o r t t o a l l U U A s t a f f g r o u p s t o d e v e l o p t h e i r a n t i -o p p r e s s i o n k n o w l e d g e, s k i l l s, a n d c o m p e t e n c i e s, a n d c o n s u l t s w i t h t h e A s s o c i a t i o n a n d f a m i l i e s o f c o l o r. F i n a l l y, I d e n t i t y-b a s e d M i n i s t r i e s w o r k s w i t h v o l u n t e e r c o m m i t t e e s, a n d a f f i l i a t e o r g a n i z a t i o n s t o d e v e l o p r e s o u r c e s f o r c o n g r e g a t i o n s d o i n g a n t i -r a c i s m a n d a n t i - o p p r e s s i o n t r a n s f o r m a t i o n w o r k. Lifespan Faith Development T h e L i f e s p a n F a i t h D e v e l o p m e n t s t a f f g r o u p o f f e r s c u rr i c u l a, r e s o u r c e s, l e a d e r s h i p t r a i n i n g a n d a v i s i o n f o r l i f e s p a n r e l i g i o u s e d u c a t i o n p r o g r a m s f o r m e m b e r c o n g r e g a t i o n s. C u r r i c u l u m D e v e l o p m e n t p r o m o t e s l i f e l o n g l e a r n i n g w i t h r e s o u r c e d e v e l o p m e n t ; i n c l u d i n g m a j o r n e w i n i t i a t i v e s i n S e x u a l i t y E d u c a t i o n ( Our Whole Lives) and a comprehensive core c u r r i c u l u m t h a t i s c u r r e n t l y b e i n g d e v e l o p e d. A l s o p r o v i d e d a r e f a m i l y m i n i s t r y p a c k e t s, c o n s u l t a t i o n s, l a y r e l i g i o u s e d u c a t i o n t r a i n i n g a n d s u p p o r t f o r l a y r e l i g i o u s e d u c a t o r s. T h e Y o u t h O f f i c e p r o v i d e s s e r v i c e s i n : c o m m u n i c a t i o n, p u b l i c a t i o n / r e s o u r c e s, c o n s u l t a t i o n, t r a i n i n g, a n d e v e n t p l a n n i n g, i n c l u d i n g Y R U U Y o u t h C o u n c i l a n d Y o u t h P r o g r a m s. Ministry and Professional Leadership T h e M i n i s t r y a n d P r o f e s s i o n a l s t a f f g r o u p s e r v e s t h e n e e d s o f c o n g r e g a t i o n s, m i n i sters, and religious educators by providing counsel, leadership, and resources. It develops and delivers p r o g r a m s r a n g i n g f r o m c r e d e n t i a l i n g a n d s e t t l e m e n t, c o u n s e l i n c a r e e r d e v e l o p m e n t, s c h o l a r s h i p s a n d g r a n t s, m i n i s t e r i a l / c o n g r e g a t i o n a l r e l a t i o n s, c h u rc h s t a f f f i n a n c e s a n d r e t i r e m e n t f i n a n c i a l p l a n n i n g a n d c o u n s e l i n g. T h e d e p a r t m e n t a d m i n i s t e r s t h e i n c o m e f r o m s u b s t a n t i a l e n d o w m e n t f u n d s f o r d e s i g n a t e d p u r p o s e s, t h e L i v i n g T r a d i t i o n F u n d, m o n i e s c o n t r i b u t e d a t t h e S e r v i c e o f the Living Tradition and fro m s e r v i c e s h o n o r i n g m i n i s t r y s u c h a s I n s t a l l a t i o n s a n d O r d i n a t i o n s. T h e M i n i s t e r i a l F e l l o w s h i p C o m m i t t e e, a s t a n d i n g c o m m i t t e e o f t h e U U A B o a r d o f T r u s t e e s, n o w h a s s i x r e g i o n a l s u b c o m m i t t e e s o n c a n d i d a c y ( R S C C s ) t o p r o v i d e e a r l i e r g u i d a n c e t o aspiring ministers. Publishing T h e C o m m u n i c a t i o n s s t a f f g r o u p p u b l i s h e s i n f o r m a t i o n t h a t e n r i c h e s t h e l i v e s o f i n d i v i d u a l U U s, supports the work of their congregations, promotes UUA programs and articulates UU values. UU World M a g a z i n e r e a c h e s a p p r o x i m a t e l y 1 2 0, h o u s e h o l d s ; S k i n n e r H o u s e, t h e U U A

17 i m p r i n t, p u b l i s h e s b o o k s e s p e c i a l l y f o r U n i t a r i a n U n i v e r s a l i s t s ; t h e P u b l i c a t i o n s o f f i c e e d i t s, d e s i g n s, a n d p r o d u c e s m a n y o t h e r U U A p u b l i c a t i o n s. T h e U U A B o o k s t o r e d i s t r i b u t e s b o o k s o f interest to religious liberals. Beacon Press B e a c o n P r e s s p u b l i s h e s g e n e r a l i n t e r e s t b o o k s t h a t p r o m o t e U U v a l u e s t o a b r o a d c o n s t i t u e n c y. B e a c o n c o n t i n u e s t o b e t h e m o s t h i g h l y r e g a r d e d a n d d i s t i n g u i s h e d d e n o m i n a t i o n a l l y o w n e d p u b l i s h i n g h o u s e i n A m e r i c a. T h e q u a l i t y o f B e a c o n b o o ks a n d t h e i r c o m m i t m e n t t o d i v e r s i t y i s o f t e n r e c o g n i z e d a n d f r e q u e n t l y c e l e b r a t e d. Administration T h i s a r e a i n c l u d e s e x p e n s e s f o r t h e U U A P r e s i d e n t a n d t h e E x e c u t i v e V i c e P r e s i d e n t, i n c l u d i n g l e g a l e x p e n s e s a n d H u m a n R e s o u r c e s. A p r o v i s i o n f o r c o n t i n g e n c i e s i s m a d e i n a c c o r d a n c e w i t h t h e B y l a w s, w h i c h p r o v i d e f o r t h r e e p e r c e n t o f t h e A s s o c i a t i o n u n r e s t r i c t e d i n c o m e t o b e a v a i l a b l e t o m e e t t h e c o s t o f u n f o r e s e e n e x p e n d i t u r e s. Stewardship and Development T h i s s t a f f g r o u p p l a n s a n d i m p l e m e n t s f u n d -r a i s i n g strategies for the long-term growth and f i n a n c i a l h e a l t h o f U n i t a r i a n U n i v e r s a l i s m. D i f f e r e n t p r o g r a m s t a r g e t t h e n e e d s o f c o n g r e g a t i o n s, d i s t r i c t s, m i n i s t e r s a n d o u t r e a c h p r o g r a m s. F u n d i n g f o r t h e c a p i t a l c a m p a i g n d e v e l o p m e n t expenses through the use o f a c c u m u l a t e d g a i n s o n u n r e s t r i c t e d a n d t e m p o r a r i l y r e s t r i c t e d e n d o w m e n t f u n d s h a s b e e n a u t h o r i z e d b y t h e F i n a n c e C o m m i t t e e a n d t h e B o a r d, w i t h a p l a n f o r t h e r e t u r n o f t h e s e f u n d s f r o m t h e f u n d s t o b e r a i s e d d u r i n g t h e C a m p a i g n f o r U n i t a r i a n Universalism a n d C a m p a i g n T h e B o a r d a u t h o r i z e d t h e t r a n s f e r o f $ 2 m i l l i o n f r o m t h e s a l e o f t h e 8 M t V e r n o n P l a c e b u i l d i n g i n t o t h e e n d o w m e n t t o b e u s e d t o w a r d p a y i n g t h e a c c u m u l a t e d g a i n s t h a t w o u l d o t h e r w i s e b e d r a w n t o f u n d t h e c a m p a i g n e x p e n s e s. Information Technology Services T h i s s t a f f g r o u p m a n a g e s t h e c o m p u t e r-r e l a t e d h a r d w a r e a n d s o f t w a r e s u p p o r t n e e d s i n t h e B o s t o n a r e a a n d e l e c t r o n i c m a i l c o n n e c t i o n s a m o n g f i e l d s t a f f a n d v o l u n t e e r B o a r d a n d c o m m i t t e e m e m b e r s. T h e O f f i c e o f E l e c t r o n i c C o m m u n i c a t i o n s i s a c o m p o n e n t o f t h i s g r o u p. Internal Services Finance T h i s s t a f f g r o u p, i n c l u d i n g t h e T r e a s u r e r a n d V i c e P r e s i d e n t o f F i n a n c e a n d F i n a n c i a l S e r v i c e s, p r o v i d e s a d m i n i s t r a t i o n o f t h e f i n a n c i a l, a u d i t, a n d b a n k i n g r e l a t i o n s h i p s, p l u s b u i l d i n g l o a n, l o a n gu a r a n t e e, a n d f i r s t h o m e g r a n t a p p l i c a t i o n s f r o m c o n g r e g a t i o n s a n d r e l a t e d e x p e n s e s. F i n a n c i a l s e r v i c e s i s r e s p o n s i b l e f o r : m a i n t a i n i n g t h e A s s o c i a t i o n s f i n a n c i a l a c c o u n t i n g and reporting s y s t e m s a n d r e c o r d s ; i s s u i n g t i m e l y p a y m e n t s t o s t a f f, v o l u n t e e r s a n d v e n d o r s ; i s s u i n g p e r i o d i c f i n a n c i a l s t a t e m e n t s o n t h e a c t i v i t y o f t h e C u r r e n t O p e r a t i o n s S e c t i o n, t h e C o n g r e g a t i o n a l P r o p e r t i e s a n d L o a n C o m m i s s i o n a n d b u i l d i n g l o a n a n d l o a n g u a r a n t e e program; accounting a d m i n i s t r a t i o n a n d r e p o r t i n g f o r t h e U U A s G e n e r a l I n v e s t m e n t F u n d, p l u s B e a c o n P r e s s, w i t h

18 c o n s o l i d a t i n g q u a r t e r l y f i n a n c i a l s t a t e m e n t s a n d t h e A s s o c i a t i o n s a n n u a l f i n a n c i a l s t a t e m e n t s ; a n d a d m i n i s t e r i n g t h e f i n a n c i a l a s p e c t s o f t h e U U O r g a n i z a t i o n s R e t i r e m e n t P l a n. Facilities / Operations Services T h e O p e r a t i o n s s t a f f g r o u p p r o v i d e s s u p p o r t s e r v i c e s a n d m a i n t a i n s t h e A s s o c i a t i o n s p h y s i c a l f a c i l i t i e s a t s t a f f o f f i c e l o c a t i o n s. T h i s s t a f f g r o u p a l s o m a i n t a i n s t h e E l i o t & P i c k e t t l o d g i n g h o u s e a n d m e e t i n g f a c i l i t y f o r t h e e c o n o m i c a l h o u s i n g o f t h e U U A s t a f f, t h e b o a r d, c o m m i t t e e s a n d U n i t a r i a n U n i v e r s a l i s t s m e e t i n g a n d d o i n g b u s i n e s s i n B o s t o n. T h e h a n d i c a p a c c e s s i b l e r a m p e d e n t r a n c e i n t o t h e l o d g i n g h o u s e, c o m p l e t e d a n d a p p r o v e d b y t h e M a s s a c h u s e t t s B u r e a u o f S t a t e O f f i c e B u i l d i n g s, w i t h t h e s u p p o r t o f t h e B e a c o n H i l l A r c h i t e c t u r a l C o m m i s s i o n a n d t h e C i v i c A s s o c i a t i o n, p r o v i d e s h a n d i c a p p e d a c c e s s i b i l i t y t o t h e l o d g i n g f a c i l i t y a n d t o t w o h a n d i c a p a c c e s s i b l e b e d r o o m s o n t h e f i r s t f l o o r. Depreciation Expense P r o p e r t y a n d e q u i p m e n t a r e r e c o r d e d a t c o s t. D e p r e c i a t i o n i s c o m p u t e d o n a s t r a i g h t -l i n e m e t h o d o v e r t h e e s t i m a t e d u s e f u l l i v e s o f t h e a s s e t s. M a i n t e n a n c e r e n e w a l s a n d r e p a i r s u n d e r $ a r e e x p e n s e d a s i n c u r r e d a n d r e n o v a t i o n s, r e n e w a l s a n d b e t t e r m e n t s a r e c a p i t a l i z e d. T h e d e p r e c i a t i o n e x p e n s e s h a v e b e e n r e c l a s s i f i e d i n t o t h e I n f o r m a t i o n T e c h n o l o g y S e r v i c e s, 4 1 M o u n t V e r n o n S t r e e t a n d O p e r a t i o n s s t a f f g r o u p s.