The focus of this report is to provide an update on the following:
- Financial Health and Projections
- Appointments to the Governing Board
- Governance Committees Named
FINANCIAL HEALTH AND PROJECTIONS
MCC leadership has been monitoring a steady decline in revenue and exploring strategies to ensure overall financial health for the denomination.
First Quarter 2018 financial reports submitted to the Governing Board in April 2018 demonstrated a deficit of over $110,000 USD (http://bit.ly/2P3JkG5). At the April 2018 Governing Board meeting, members recognized cuts were needed and began to consider options to reduce expenses and increase revenue. Current members on the Governing Board acknowledge that revenue expectations were overestimated, and Governors waited too long to address these issues.
A series of course corrections began in July 2018 when the Governing Board announced spending adjustments. Those are now in place, including changes in MCC staffing. The Governing Board approved a reduction in MCC’s current budget by $400,000 USD at its regular monthly meeting in July (http://bit.ly/2O0egdT). This amount was based on the reality that MCC’s current monthly income, which on average year-to-date is $100,000.00 USD, was only meeting payroll.
Key Governing Board Decisions and Outcomes to Date
Cash Flow Trends Upward
Preliminary financial reports are starting to show the Income Statement moving in a positive direction. Based on expenses and projected income, it is reasonable to expect a positive cash flow in October through the end of the year.
Debts and Investments
Improved cash flow in the last 45 days has allowed small increments of funds to be used to reconcile MCC asset accounts and ensure sustainability of programs and projects. As cash flow continues to improve, additional payments will be made to nullify all deficits.
The Finance Committee, in collaboration with the Governing Board, is creating a plan to reconcile debts. This plan will also include a strategic financial plan for fiscal growth. Updates about this vital work will be shared when it becomes available.
UFMCC finances are audited by an independent auditor in a two-year cycle. Each audit costs between $12,000.00 – $15,000.00 USD. For the current cycle, the 2014 audit was completed in 2017, and the 2015 audit has begun. Audits for the 2016 and 2017 cycle will begin in early 2019.
Audit reports from 2010-2014 are available on the Governing Board finance webpage: https://www.mccchurch.org/how-we-work/finances/
Moving towards a balanced budget
The initial 2018 budget was based on two premises: 2017 assessments and a robust donation effort for MCC’s 50th anniversary year. The assessments were close to what was projected, however, donations did not meet expectations.
Through reductions in staffing and associated costs (i.e. payroll taxes) outlined earlier, in addition to adjustments to 2018 travel expenses including the elimination of face-to-face leadership meetings and specific operational expenses, it is projected these changes will be sufficient through the 2019 calendar year.
To ensure appropriate oversight and reporting, the Governing Board receives monthly financial reports generated by Operations Departmental staff. These reports are then reviewed by MCC’s Finance Committee, which is comprised of the Governing Board Treasurer and three qualified laity volunteers, including a CPA, from MCC churches. Following the Finance Committee’s review, and the addition of any recommendations, financial reports are presented to the Governing Board at its monthly meeting for approval. Additionally, the Governing Board is apprised of monthly and year-to-date data on revenue and expenses. The Governing Board also considers revenue and expense trends and how these, along with current realities, impact cash flow and how to best forecast and plan for financial stability.
Monthly and annual reports, including the annual budget, are posted on the website after approval by the Governing Board. Lay Delegates are especially encouraged to locate this information and provide reports to their churches. Reports can be located on the Governing Board finance page: https://www.mccchurch.org/how-we-work/finances/
2018 Financial Reporting
The Governing Board hosted a webinar in August, which was attended by over 150 people. Due to unexpected connectivity issues, the financial report was not presented. The Governors apologize that they were not able to provide the report as planned, and will strive to minimize technical difficulties in the future. In the interim, this update addresses some of the questions asked during the webinar. If a question has not been answered, please contact the Governing Board at [email protected].
APPOINTMENTS TO THE GOVERNING BOARD
As of 3 October 2018, the Governing Board continues to work through its timeline to appoint new members in October to fill vacant seats (UFMCC Bylaws V.E.4.e, http://bit.ly/2NiYaXH).
Seven (7) individuals applied for four (4) available positions. Two (2) clergy applied for one (1) vacant seat. Five (5) lay people applied for three (3) vacant seats.
The key skill sets needed at this time include experience in governance, polity, bylaws, financial management, and fund development.
Due to the number of applicants, the timeline for interviews, notification, and announcements have necessitated an extension of the appointment process by a few days. Below are the key dates to identify, qualify, and appoint members to the Governing Board.
20-28 September 2018
MCC Governing Board interviews select applicants.
29 September – 4 October 2018
Governing Board reviews interviews and selects appointees.
5 October 2018
Governing Board notifies applicants on the status of appointment.
8 October 2018
Governing Board announces appointments.
Appointments to these positions will continue until General Conference 2019. Those who are appointed will have the opportunity to apply for the 2019 Governing Board slate.
Prayers are requested for the applicants and Governors as they discern together.
GENERAL CONFERENCE GOVERNANCE COMMITTEES NAMED
Moderator Nominating Committee
The Moderator Nominating Committee is responsible to recruit, qualify, and nominate a slate of candidates for the role of Moderator.
Co-Chairs: Rev. Gavin Ward, Sydney, Australia; and Velma Garcia, Austin, Texas, USA
Vice-Chair: Rev. Brendan Boone, St. Augustine, Florida, USA
Communications Lead: Kellie Taylor-White, Baton Rouge, Louisiana, USA
Project Coordinator: Stan Kimer, Raleigh, North Carolina, USA
To learn more about the members of this committee, watch their video:
Complete the Moderator Nominating Committee Survey
To provide input on what you are looking for in the skills and attributes of a Moderator, please complete the Moderator Nominating Committee survey, open through 6 October 2018. EVERYONE is invited to participate: https://www.surveymonkey.com/r/PVZ3QNN
Moderator Nominating Committee Recorded Webinar (1 October 2018)
(with optional subtitles):
The webinar included the following topics:
- Meet the Committee
- Process and Timeline Explained
- Tasks Completed
- Next Steps
- Questions and Answers
Responses to unanswered questions will be sent via email. The timeline and other information about the committee’s work can be found on MCC’s website: http://bit.ly/2y4H1eA
Governing Board Nominating Committee
The Governing Board Nominating Committee is responsible to recruit, qualify and nominate a slate of candidates to fill vacant Governing Board seats.
Rev. Tijuana Gray, Reconciliation MCC, Grand Rapids, Michigan, USA
Leo Rosetti, MCC Rio de Janeiro, Rio de Janeiro, Brazil
Teresa “Terry” White, Imago Dei MCC, Glen Mills, Pennsylvania, USA
BYLAW AMENDMENT PROPOSAL PROCESS
The Bylaws Team is responsible to the Governing Board and seeks to ensure local churches are aware of the process for submitting Bylaw Amendment Proposals for consideration by the General Conference 2019 in Orlando, Florida, USA.
Instructions on how to submit a Bylaw Amendment Proposal:
UFMCC BYLAW AMENDMENT PROPOSAL Instructions – Governing Board & Council of Elders (http://bit.ly/2pwSqzZ) (Updated: 17 September 2018)
UFMCC BYLAW AMENDMENT PROPOSAL Instructions – Lay House & Clergy House (http://bit.ly/2N0nD86) (Updated: 17 September 2018)
Deadlines for submitting a Bylaw Amendment Proposal:
For members of the Lay House and Clergy House, the deadline for submission is 2 January 2019.
For the Governing Board and Council of Elders, the deadline for submission is 1 May 2019.
Additional information about MCC Bylaws can be found on the website: https://www.mccchurch.org/governing-board/about/bylaws/
If you have questions, please contact the Bylaws Team: [email protected]
Questions about information in this report can be sent to [email protected]
MCC Governing Board
Rev. Miak Siew, Vice-Chair
Dr. David Williams, Treasurer
Rev. Joe Cobb, Clerk
Rev. Victoria Burson, Governance Chair
Rev. Elder Rachelle Brown, Interim Moderator