1 00:00:02,012 --> 00:00:09,174 >> And you thought board work was boring. That is not unlike 2 00:00:09,175 --> 00:00:11,739 some of the conversations we have had within the Board of 3 00:00:11,740 --> 00:00:14,820 trustees. We certainly do a lot of work, a lot of heavy lifting 4 00:00:15,576 --> 00:00:20,688 . We are really trying to learn from one another how to be in 5 00:00:20,689 --> 00:00:24,766 full relationship. So my deepest thanks to my colleagues. 6 00:00:24,767 --> 00:00:30,899 An amazing job. Now my pleasure to introduce another 7 00:00:30,900 --> 00:00:36,511 wonderful colleague who will present our financial advisor's 8 00:00:36,512 --> 00:00:41,579 report. Lucia? [Applause] 9 00:00:41,834 --> 00:00:43,834 >> 10 00:00:46,972 --> 00:00:51,251 Good Morning, everyone. Thank you, Denise. I have the 11 00:00:51,252 --> 00:00:52,792 privilege of reporting to you broadly on the financial health 12 00:00:52,793 --> 00:00:54,793 of the Association. 13 00:00:58,181 --> 00:01:00,739 I have observed the strong and steadfast leadership of both 14 00:01:00,740 --> 00:01:02,740 Larry Ladd and Dan Brody in this 15 00:01:04,813 --> 00:01:09,436 Position and their legacy is impressive. I'm very grateful 16 00:01:09,437 --> 00:01:10,191 for their guidance and support and for the patience and 17 00:01:10,192 --> 00:01:11,748 kindness of my colleagues on the Board, the staff and the many, 18 00:01:11,749 --> 00:01:15,310 talented and committed volunteers. The Financial 19 00:01:15,311 --> 00:01:17,311 Advisor serves as a member of the Board and the 20 00:01:19,905 --> 00:01:21,435 Executive Committee of the Board, as well as on the 21 00:01:21,436 --> 00:01:22,207 following Committees: Audit Committee, Employee Benefits 22 00:01:22,208 --> 00:01:25,246 Trust (Health Plan), Retirement Plan Committee, Investment 23 00:01:25,247 --> 00:01:27,320 Committee (for Common Endowment Fund) and Socially Responsible 24 00:01:30,592 --> 00:01:31,930 Investment Committee (SRI - advises the Investment Committee 25 00:01:31,931 --> 00:01:35,471 regarding the Common Endowment Fund). I will report briefly on 26 00:01:35,472 --> 00:01:40,082 the overall financial health of the Association, the financial 27 00:01:40,083 --> 00:01:43,920 Committees and Beacon Press. I note the relatively smooth, 28 00:01:43,921 --> 00:01:45,921 modest and well managed changes 29 00:01:47,004 --> 00:01:49,004 in most aspects of the Association's financial results. 30 00:01:51,077 --> 00:01:55,175 I also report to you, as I have reported to the Board and the 31 00:01:55,176 --> 00:01:57,176 Administration, that I believe the Board orientation and 32 00:01:59,503 --> 00:02:02,336 training program needs improvement with regard to 33 00:02:02,337 --> 00:02:05,644 fiduciary duty. This duty, broadly outlined as the duties 34 00:02:05,645 --> 00:02:07,424 of care and of loyalty, encompasses many key areas 35 00:02:07,425 --> 00:02:10,753 including stewardship and financial management. There is 36 00:02:10,754 --> 00:02:14,348 broad agreement to review and revise the training to include 37 00:02:14,349 --> 00:02:16,654 clear emphasis on these important topics and I am 38 00:02:16,655 --> 00:02:18,904 committed to working with those responsible to enhance future 39 00:02:18,905 --> 00:02:23,750 training in this area. As you will see in the Treasurer's 40 00:02:23,751 --> 00:02:26,832 Report submitted by Tim Brennan, Treasurer and Chief Financial 41 00:02:26,833 --> 00:02:29,640 Officer, the Association's financial position remains 42 00:02:29,641 --> 00:02:32,681 healthy. While is it still too early to report on fiscal 43 00:02:32,682 --> 00:02:35,494 results for 2017, it appears that the Association's income 44 00:02:35,495 --> 00:02:38,552 statement and balance sheet remain in good shape. 45 00:02:45,191 --> 00:02:47,470 the publishing industry has been buffeted by unrelenting 46 00:02:47,471 --> 00:02:49,471 changes in technology, distribution and 47 00:02:54,146 --> 00:02:54,905 consumption. The performance of Beacon Press through this 48 00:02:54,906 --> 00:02:56,691 chaotic and murky cycle of change has been impressive 49 00:02:56,692 --> 00:02:58,692 beyond rational expectation. I 50 00:03:00,553 --> 00:03:03,408 I [Applause] 51 00:03:06,485 --> 00:03:08,932 I encourage you to listen to Helene Atwan's presentation on 52 00:03:08,933 --> 00:03:13,525 Friday morning beginning at 9:15 or so. From Anita Hill to the 53 00:03:13,526 --> 00:03:18,132 Reverend Dr. William J. Barber II to Eboo Patel, Beacon Press 54 00:03:18,133 --> 00:03:20,133 publishes outstanding books by 55 00:03:21,189 --> 00:03:23,189 important thought leaders that affirm and promote the values of 56 00:03:24,236 --> 00:03:26,236 Unitarian Universalists and the liberal religious community. 57 00:03:29,554 --> 00:03:31,554 Beacon's books continue to garner much favorable press and 58 00:03:34,442 --> 00:03:40,584 It is a critical asset of Unitarian Universalism. And 59 00:03:40,585 --> 00:03:44,725 through astute leadership, beacon freeze has accumulated 60 00:03:44,726 --> 00:03:47,288 enough small surplus to his begin an endow men to be 61 00:03:47,289 --> 00:03:53,930 available in time of need, which is extraordinarily likely in 62 00:03:53,931 --> 00:03:58,212 the publishing field. Publishing is a low margin 63 00:03:58,213 --> 00:03:59,741 business plagued by cyclical pressures and the vagaries of 64 00:03:59,742 --> 00:04:04,349 changing consumer preference. I We must submit to supporting 65 00:04:04,350 --> 00:04:08,429 beacon press throughout these cycles, and I'm please that had 66 00:04:08,430 --> 00:04:10,430 my husband and I are among the first to contribute to Beacon's 67 00:04:12,760 --> 00:04:13,275 Endowment, to help support it in leaner times, which are not 68 00:04:13,276 --> 00:04:15,276 at all unlikely in this industry! 69 00:04:17,618 --> 00:04:22,005 my written report, which is available on the website, 70 00:04:22,006 --> 00:04:23,042 provides an overview of each of the financial Committees and 71 00:04:23,043 --> 00:04:25,318 their work. I am pleased to report that the Association is 72 00:04:25,319 --> 00:04:29,630 well served by experienced and knowledgeable staff and 73 00:04:29,631 --> 00:04:31,631 volunteers. There are risk management structures, including 74 00:04:32,418 --> 00:04:33,693 policies and procedures in place to ensure prudent 75 00:04:33,694 --> 00:04:41,892 financial management. These will continue I must note that 76 00:04:41,893 --> 00:04:46,204 policies and procedures are not always followed. The bore has 77 00:04:46,205 --> 00:04:48,776 recently begun a series of reviews and changes to policies 78 00:04:48,777 --> 00:04:54,398 to ensure that they are they are an bun Danly clear and well 79 00:04:54,399 --> 00:05:00,794 connected and as well as clear about consequences for potential 80 00:05:02,815 --> 00:05:04,850 noncompliance. A key responsibility of the Financial 81 00:05:04,851 --> 00:05:08,672 Advisor is to assess the needs of these Committees and to 82 00:05:08,673 --> 00:05:10,673 recruit highly qualified 83 00:05:18,663 --> 00:05:19,928 individuals to serve the Association through their 84 00:05:19,929 --> 00:05:21,198 volunteer service on these Committees. Each of these 85 00:05:21,199 --> 00:05:22,229 Committees has significant oversight responsibility for 86 00:05:22,230 --> 00:05:25,009 important assets of the Association and services to 87 00:05:25,010 --> 00:05:28,842 Congregations, ministers, religious educators, and 88 00:05:28,843 --> 00:05:32,685 administrative staff. We seek to create a database of UUs with 89 00:05:32,686 --> 00:05:36,763 professional experience in these areas who may be willing to 90 00:05:36,764 --> 00:05:38,764 serve. We also seek to increase the diversity of perspective and 91 00:05:43,417 --> 00:05:46,742 Experience on these committees. Please contact me through the 92 00:05:46,743 --> 00:05:49,537 UUA's website or at lsantinifield@uua.org if you 93 00:05:49,538 --> 00:05:52,113 would like more information or have suggestions or interest in 94 00:05:52,114 --> 00:05:55,193 this regard. regard.we need you. Of all the sources of income 95 00:05:55,194 --> 00:05:59,802 for our UUA, the APF or Annual Program Fund contributions from 96 00:05:59,803 --> 00:06:02,595 congregations is by far the most important, in amount and in 97 00:06:05,928 --> 00:06:07,928 representation of commitment to each other and the promotion of 98 00:06:09,698 --> 00:06:12,516 our values in the world. Our Our 99 00:06:13,032 --> 00:06:15,593 [Applause] >> Thank you. Our Association 100 00:06:15,594 --> 00:06:17,594 has long sought to improve the formula based upon 101 00:06:20,200 --> 00:06:22,200 number of members to a more 102 00:06:24,029 --> 00:06:26,029 equitable and sustainable 103 00:06:28,133 --> 00:06:30,907 formula. We are most grateful for the leadership and 104 00:06:30,908 --> 00:06:32,908 flexibility of the Southern 105 00:06:34,710 --> 00:06:40,541 region. Thank them very very much. We thank you. for 106 00:06:40,542 --> 00:06:42,542 piloting a formula based upon operating expenses rather 107 00:06:46,245 --> 00:06:52,344 Than head count. The taskforce learned a great deal about the 108 00:06:52,345 --> 00:06:54,131 wide variety of challenges and blessings of our congregations 109 00:06:54,132 --> 00:06:58,496 through this process. You will be hearing more about this, 110 00:06:58,497 --> 00:07:01,780 Honor Congregations and the Generosity Network from Mary 111 00:07:01,781 --> 00:07:03,781 Katherine Morn on Friday morning beginning at 9:30 or so. Please 112 00:07:07,685 --> 00:07:12,564 help us to ensure the strong support of our faith in this 113 00:07:12,565 --> 00:07:19,683 important time for our faith and the world. This a critical 114 00:07:19,684 --> 00:07:22,991 time for UU leadership and UU values in this country and 115 00:07:22,992 --> 00:07:26,339 around the world. We must remain committed to each other. And 116 00:07:26,340 --> 00:07:28,151 our values, and demonstrate that commitment in our words, our 117 00:07:28,152 --> 00:07:30,152 actions and with our 118 00:07:32,200 --> 00:07:34,200 resources, spiritual, physical, 119 00:07:37,047 --> 00:07:39,047 emotional and financial, despite 120 00:07:40,556 --> 00:07:42,556 our differences, challenges and 121 00:07:45,747 --> 00:07:48,301 disappointments. We are called on to summon our strength, our 122 00:07:48,302 --> 00:07:52,630 love, our compassion, and our forgiveness. We must remain 123 00:07:52,631 --> 00:07:54,930 steadfast in our pursuit of Beloved community and we must 124 00:07:54,931 --> 00:08:02,816 learn to grow and lead in in these turbulent times. Thank