1 00:00:00,000 --> 00:00:05,764 2 00:00:05,764 --> 00:00:08,180 Moderator:We need to hear from the Reverend Sarah Stewart, 3 00:00:08,180 --> 00:00:11,130 trusty of our association, and chair of our finance committee. 4 00:00:11,130 --> 00:00:14,050 There she is. 5 00:00:14,050 --> 00:00:16,400 Rev. Sarah Stewart: This is the budget report 6 00:00:16,400 --> 00:00:20,490 from your UUA board of trustees. 7 00:00:20,490 --> 00:00:25,840 Budgets may seem dry, but when I look at a budget 8 00:00:25,840 --> 00:00:30,880 I see a plan for love put into action. 9 00:00:30,880 --> 00:00:33,840 In the UUA's budget, I see a plan 10 00:00:33,840 --> 00:00:38,200 for enacting our mission through national, regional, 11 00:00:38,200 --> 00:00:41,080 and district programs, and support 12 00:00:41,080 --> 00:00:44,380 of congregations and communities. 13 00:00:44,380 --> 00:00:48,330 If you have questions about the details of the budget, 14 00:00:48,330 --> 00:00:50,360 please come to the budget hearing 15 00:00:50,360 --> 00:00:57,980 today after this general session At 10:15 in room 551. 16 00:00:57,980 --> 00:01:00,890 I will be there, along with financial advisor 17 00:01:00,890 --> 00:01:06,130 Larry Ladd, treasurer and chief financial officer Tim Brennan, 18 00:01:06,130 --> 00:01:08,480 and other members of the finance committee 19 00:01:08,480 --> 00:01:12,510 to answer any questions you may have. 20 00:01:12,510 --> 00:01:16,040 I want to talk to you about two things this morning; 21 00:01:16,040 --> 00:01:20,260 generosity from congregations, and a deficit 22 00:01:20,260 --> 00:01:25,410 the UUA is facing in the current year's budget. 23 00:01:25,410 --> 00:01:27,790 This has implications for next year's budget, 24 00:01:27,790 --> 00:01:32,280 and I'm going to start with this budget information. 25 00:01:32,280 --> 00:01:35,790 In April the board approved a budget presented to us 26 00:01:35,790 --> 00:01:39,630 by President Morales, which set out a plan for achieving 27 00:01:39,630 --> 00:01:43,140 our ends in the coming fiscal year. 28 00:01:43,140 --> 00:01:47,200 Unfortunately, last week the administration and the board 29 00:01:47,200 --> 00:01:49,210 learned that the UUA way will not 30 00:01:49,210 --> 00:01:53,820 receive some hoped for large individual gifts 31 00:01:53,820 --> 00:01:56,530 within the current year. 32 00:01:56,530 --> 00:01:59,060 Although other revenue streams remain strong, 33 00:01:59,060 --> 00:02:04,240 we are projected to end this year with a $1.35 million 34 00:02:04,240 --> 00:02:11,030 deficit, which represents about 5.6% of the operating budget. 35 00:02:11,030 --> 00:02:15,210 These losses require the UUA to revise its financial planning 36 00:02:15,210 --> 00:02:18,360 for next year. 37 00:02:18,360 --> 00:02:20,500 President Morales will bring to the board 38 00:02:20,500 --> 00:02:25,780 a revised budget for fiscal year 2015 by August 1. 39 00:02:25,780 --> 00:02:28,740 In accordance with our policies, the administration 40 00:02:28,740 --> 00:02:32,340 will show how that budget materially supports the ends, 41 00:02:32,340 --> 00:02:36,340 and represents fiscal prudence and integrity. 42 00:02:36,340 --> 00:02:38,980 As always, the board will carefully 43 00:02:38,980 --> 00:02:41,800 consider that budget on your behalf, 44 00:02:41,800 --> 00:02:44,450 and approve it when we are confident that it 45 00:02:44,450 --> 00:02:49,530 supports achievement of our ends. 46 00:02:49,530 --> 00:02:52,780 Now I have faith that we will be able to do that, 47 00:02:52,780 --> 00:02:56,330 because the connection between the budget and the ends 48 00:02:56,330 --> 00:03:00,220 has been made very clear to us this year. 49 00:03:00,220 --> 00:03:03,200 While your board still debates and discusses 50 00:03:03,200 --> 00:03:06,240 the meaning of the ends among ourselves 51 00:03:06,240 --> 00:03:08,830 and with the administration, we have 52 00:03:08,830 --> 00:03:12,790 been very pleased to see the connection between the budget 53 00:03:12,790 --> 00:03:18,830 and achievement of the ends in the budget for fiscal year 15. 54 00:03:18,830 --> 00:03:21,280 This clear connection, as well as 55 00:03:21,280 --> 00:03:23,920 progress toward measurable implementation 56 00:03:23,920 --> 00:03:26,740 of the ends and collection of metrics, 57 00:03:26,740 --> 00:03:29,460 has been supported by the administration's work 58 00:03:29,460 --> 00:03:31,780 with a governance consultant, funded 59 00:03:31,780 --> 00:03:35,870 through the current year's budget. 60 00:03:35,870 --> 00:03:38,790 In addition to a revised budget, the board 61 00:03:38,790 --> 00:03:40,840 has requested from President Morales 62 00:03:40,840 --> 00:03:45,110 an action plan to address any systemic problems that 63 00:03:45,110 --> 00:03:49,330 led to this surprising budget shortfall. 64 00:03:49,330 --> 00:03:52,730 Peter has taken responsibility to the board 65 00:03:52,730 --> 00:03:55,100 for the communication challenges that 66 00:03:55,100 --> 00:03:58,920 allowed him and us to be surprised 67 00:03:58,920 --> 00:04:01,780 with such a large shortfall in the final weeks 68 00:04:01,780 --> 00:04:03,890 of the fiscal year. 69 00:04:03,890 --> 00:04:06,220 We will hear from Peter in the coming months 70 00:04:06,220 --> 00:04:10,690 about the ways in which he will mitigate the risks in the UUA's 71 00:04:10,690 --> 00:04:15,110 financial planning process. 72 00:04:15,110 --> 00:04:19,970 The board has its own fundamental responsibility 73 00:04:19,970 --> 00:04:23,930 for the financial health of the UUA. 74 00:04:23,930 --> 00:04:28,460 Another word for a trustee is fiduciary. 75 00:04:28,460 --> 00:04:31,990 We trustees are those people who ensure 76 00:04:31,990 --> 00:04:36,630 that the UUA uses its funds wisely, and will continue 77 00:04:36,630 --> 00:04:40,250 to have money to accomplish its mission for decades 78 00:04:40,250 --> 00:04:43,520 and centuries to come. 79 00:04:43,520 --> 00:04:46,900 To fulfill that fiduciary responsibility, 80 00:04:46,900 --> 00:04:50,720 we will be looking at our financial planning policies 81 00:04:50,720 --> 00:04:54,320 to ensure that they are adequate to the risks we face 82 00:04:54,320 --> 00:04:57,480 in our fundraising environment. 83 00:04:57,480 --> 00:05:00,520 And we will be asking for a deep dive 84 00:05:00,520 --> 00:05:04,720 into the revenue assumptions for the 2016 budget 85 00:05:04,720 --> 00:05:08,070 at our upcoming January meeting. 86 00:05:08,070 --> 00:05:12,390 We will ensure that the budget we approve and present 87 00:05:12,390 --> 00:05:20,910 to you for 2016 is one which we can stand by and meet. 88 00:05:20,910 --> 00:05:23,570 One piece of next year's operating budget 89 00:05:23,570 --> 00:05:27,760 that we do not expect to change, is a one time expense 90 00:05:27,760 --> 00:05:33,850 of $750,000 to complete the move to the UUA's new headquarters 91 00:05:33,850 --> 00:05:36,960 at 24 Farnsworth Street. 92 00:05:36,960 --> 00:05:39,760 These costs will be funded out of the proceeds 93 00:05:39,760 --> 00:05:42,160 of the sale of our Beacon Hill properties, 94 00:05:42,160 --> 00:05:46,080 which otherwise would have gone into the endowment. 95 00:05:46,080 --> 00:05:48,470 Over time these costs will be recouped 96 00:05:48,470 --> 00:05:52,690 as the UUA takes on full ownership of the building at 24 97 00:05:52,690 --> 00:05:56,380 Farnsworth Street, and completes the sale of its Beacon Hill 98 00:05:56,380 --> 00:05:59,720 properties. 99 00:05:59,720 --> 00:06:03,370 Individual donors are important to the UUA, 100 00:06:03,370 --> 00:06:06,850 even as the landscape of individual charitable giving 101 00:06:06,850 --> 00:06:10,720 remains volatile after the recession. 102 00:06:10,720 --> 00:06:16,350 We are grateful to every person who gives to the UUA. 103 00:06:16,350 --> 00:06:20,960 Even more fundamental to the work and being of the Unitarian 104 00:06:20,960 --> 00:06:24,470 Universalist Association is the generosity 105 00:06:24,470 --> 00:06:28,390 of your congregations through the Annual Program Fund, 106 00:06:28,390 --> 00:06:33,640 and the Generously Investing for Tomorrow GIFT program. 107 00:06:33,640 --> 00:06:38,210 Congregational giving provides fully 50% 108 00:06:38,210 --> 00:06:43,510 of the UUA's unrestricted operating income each year. 109 00:06:43,510 --> 00:06:46,510 It forms the single largest source 110 00:06:46,510 --> 00:06:50,230 of the UUA's annual operating income. 111 00:06:50,230 --> 00:06:53,800 I want to thank every congregation that 112 00:06:53,800 --> 00:06:56,022 gives to the UUA. 113 00:06:56,022 --> 00:07:00,970 I especially want to lift up the more than 700 fair share 114 00:07:00,970 --> 00:07:04,080 congregations, and the many congregations 115 00:07:04,080 --> 00:07:07,540 that are working to become fair share. 116 00:07:07,540 --> 00:07:13,510 [APPLAUSE] 117 00:07:13,510 --> 00:07:17,300 Our congregations' generosity through the Annual Program 118 00:07:17,300 --> 00:07:20,910 Fund or the GIFT program makes possible work 119 00:07:20,910 --> 00:07:25,780 that in turn supports our congregations and communities. 120 00:07:25,780 --> 00:07:29,970 Our giving strengthens Unitarian Universalism's voice 121 00:07:29,970 --> 00:07:33,120 at a regional and national level. 122 00:07:33,120 --> 00:07:36,950 It makes possible work that no one congregation 123 00:07:36,950 --> 00:07:39,440 could do alone. 124 00:07:39,440 --> 00:07:42,225 The next time you get an email from staff 125 00:07:42,225 --> 00:07:45,360 at your district or regional office; 126 00:07:45,360 --> 00:07:50,400 or find religious education curricula online; or get help 127 00:07:50,400 --> 00:07:53,830 with a staff transition from the UUA; 128 00:07:53,830 --> 00:07:57,170 or feel proud of the work of racial justice 129 00:07:57,170 --> 00:08:00,670 and multicultural ministry at the UUA; 130 00:08:00,670 --> 00:08:04,030 remember that you are enabling all of this 131 00:08:04,030 --> 00:08:08,820 through your congregation's generous giving. 132 00:08:08,820 --> 00:08:12,700 Love reaches out as the UUA staff achieves 133 00:08:12,700 --> 00:08:15,970 the global end of moving our communities 134 00:08:15,970 --> 00:08:22,030 and the world toward more love, justice, and peace. 135 00:08:22,030 --> 00:08:25,520 Love reaches out through the careful planning 136 00:08:25,520 --> 00:08:29,700 and accountability that goes into the UUA's budgeting 137 00:08:29,700 --> 00:08:31,370 process. 138 00:08:31,370 --> 00:08:35,539 Through individual generosity, the invested gifts 139 00:08:35,539 --> 00:08:40,820 of Unitarians and Universalists past, and your congregation's 140 00:08:40,820 --> 00:08:46,290 giving, you make it possible to enact more love, 141 00:08:46,290 --> 00:08:51,010 and reach out to all who need the saving message of Unitarian 142 00:08:51,010 --> 00:08:52,740 Universalism. 143 00:08:52,740 --> 00:08:53,890 Thank you. 144 00:08:53,890 --> 00:08:57,240 [APPLAUSE] 145 00:08:57,240 --> 00:09:01,418