Triennial 2015 National Treasurer s Report

Transcription

1 Triennial 2015 Treasurer s Report Financial Position The finances of The Order of the Daughters of the King, Inc. are in good shape and we remain debt free. The Executive Board, Finance Chair, and Treasurer have worked closely with the Office Staff and Accountant to manage expenses while using our resources efficiently and effectively to operate the Order and further its mission. Statement of Financial Position (as of Audit August 31, 2014) (as of April 30, 2015 unaudited) TOTAL CURRENT ASSETS $ 910,421 $ 1,027,711 TOTAL NON-CURRENT ASSETS $ 1,761,112 $ 1,787,551 TOTAL ASSETS $ 2,671,533 $ 2,815,262 TOTAL CURRENT LIABILITIES $ 277,236 $ 91,846 TOTAL NET ASSETS $ 2,394,297 $ 2,723,416 TOTAL LIABILITIES AND NET ASSETS $ 2,671,533 $ 2,815,262 Annual Independent Audit Report The audits performed during this past triennial have all been very positive in the Audit Opinions issued. Fulton & Kozak, CPAs have performed an audit on our financial statements at the end of each fiscal year (August 31 st each year). I have included the opinion from the last report for your information here: Audit Opinion dated January 12, 2015: In our opinion, the financial statements [which comprise the statements of financial position as of August 31, 2014 and 2013, and the related statements of activities and cash flows for the years then ended] present fairly, in all material respects, the financial position of The Order of the Daughters of the King, Inc. as of August 31, 2014 and 2013, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Signed, Fulton & Kozak, CPAs Previous years audits can be found online at Operating Budget As reflected in the following Statement of Financial Activity, the operating budget is very tight. Although we have operated with deficits for the last few years, the Order is able to remain in sound financial condition in part due to the benefit of having an operating surplus from previous years. We have also been able to supplement the budget by using the various policies, such as the Endowment I Fund Spending Policy, that allow us to bring in funds from other sources. Since we are not currently creating any surplus, this drawing down of the surplus cannot go on forever. While as a non-profit organization we do need to spend down our surplus so that it does not accumulate, we also have to carefully balance the use of funds so that it will continue to support the Order s mission.

2 Income Statement of Financial Activities for FY12-13, FY13-14, and FY (as of April 30, 2015) FY Actual (Sep 2012-Aug 2013) FY Actual (Sep 2013-Aug 2014) FY Budgeted (Sep 2014-Aug 2015) FY Actual as of April 30, 2015 Contributions 2,306 4,268 2, Orders 189, , , ,576 & Fees 496, , , ,340 Operating Interest / Other 2,455 2,473 2,350 2,066 Lifetime Release 7,340 10,835 29,000 29,470 Designated Account Transfers 7,500 15,059 10,000 0 Total Income 705, , , ,962 Expenses Programs (Archives, Publications, DALs, International DOK, Outreach, Communications) Council (2 meetings in Triennial year) Office Operations (Employee, Office, and Professional Service Expenses) * Includes an additional full-time employee as of mid-nov Total of 6 full-time employees at the Office. 88,351 77,781 92,550 59,056 39,519 43,373 80,400 32, , , , ,868 Crosses & Literature 153, , ,000 71,186 Triennial & General Convention Savings Lifetime to Provinces & Dioceses 2,000 2,000 4,000 2,666 7,340 10,835 10,875 11,025 Total Expenses 722, , , ,230 NET SURPLUS (DEFICIT) (16,786) (25,112) (66,925) 137,732 As members of The Order of the Daughters of the King it is our duty and responsibility to pay our dues promptly. are the primary way the Order functions on a daily basis. Amount: At the 2012 Triennial the delegates of the Order approved a $5 increase in senior dues to be provided to Diocesan Assemblies, thus increasing the total dues amount to $40 per year. Since Article III, Section 6B of the Bylaws requires dues be established by the Convention, annual dues will

3 remain at the current rate through at least August Lifetime dues increased to $800 on June 1, 2013, commensurate with the dues increase approved the previous year. Split: Of the $40 in annual dues that each member pays, $25 goes toward operating expenses at the level. Of the remaining $15, $5 is forwarded to the Provincial and $10 to the Diocesan Assemblies to help support their operations and gatherings. Lifetime : The $800 payment for Lifetime hip is deposited upon receipt into the Endowment Fund II. Currently the fund does not earn enough income to support an annual distribution of the entire dues payment for Lifetime Daughters. While payments to the Provincial and Diocesan Assemblies continue for these Daughters on an annual basis, the payment to the level occurs only in a Triennial year to help with the additional expenses incurred during that year. As more Daughters pay for a Lifetime hip, it is anticipated that the fund will become self-sustaining. FY # of FY $ to FY # of FY $ to FY # of FY $ to Lifetime Daughters 734 $0 722 $0 736 $18,445 Chapter () Relief: At the 2012 Triennial the delegates voted in favor of establishing a Relief status for Daughters who are 85 years old or older. The Daughter must apply through her chapter or diocesan assembly president for relief of the obligation to pay dues. While Relief has certainly assisted the individual Daughter and Chapter, it has diminished the amount of funds available for operations of the Order. FY # of FY $ FY # of FY $ FY # of FY $ Relief No record available Unknown No record available Unknown 408 $10,200 Reinstatement: While most Daughters are diligent in paying their dues, a number of Daughters have lapsed in their payments. During this triennium the policy of when to drop Daughters from the records was changed. Daughters who are two years in arrears in payment of their dues are now dropped from the records or considered not in good standing (previously this occurred after three years). This policy was adjusted to provide clarification for and implementation of the Reinstatement Bylaw (Article III, Section 5) passed at Triennial The Council set the nominal fee of $5 to be paid along with the current year s dues for reinstating Daughters. FY12-13 (Sep 2012 Aug 2013) FY13-14 (Sep 2013 Aug 2014) FY14-15 (Sep 2014 Aug 2015) Reinstated Daughters 1 $5 115 $ $550 Payment Process: processing is one of the most time intensive tasks the Office staff performs. Until this year the process involved producing Packets for mailing to every chapter (approximately 1,800) followed by several months of processing dues as they were received at the Office. Then in the late Fall/early winter a dues reminder would be sent to all Daughters who had not paid through their chapter or other means. This process is very time consuming, expensive, and

4 limits the staff s availability to work on other projects to enrich the Order and support our mission. With the implementation of the new membership software we have eliminated Packets in favor of individual dues invoices. These invoices will be produced in mid-july for all Daughters who owe dues for the next fiscal year and electronically mailed to all members with an address on file. In August those invoices that remain unpaid will be printed and mailed to individuals through the U.S. Postal Service. The primary way for members to pay their annual dues is to then sign into the member portal on our new website and pay online. will be given an opportunity to update their personal contact information when making their payment. This is the most efficient and cost effective method for the Order to receive and process payments. However, we understand that not everyone has internet access; therefore, members may still pay their dues by mail with a check or credit card. While no longer our preferred payment method, we will still accept a consolidated check payment as in the past; however, please make sure a complete listing of members, with name and member number of those whose dues are included in the consolidated payment, is provided with the payment! Unpaid : The information below reflects the percentage of Daughters who did not pay dues relative to the total number of Daughters who should pay dues on an annual basis (does not include Lifetime, Relief, or New ). It also presents the amount of support that the Order is not receiving as a result of these unpaid dues. On average, the operating budget does not receive $127,637 in annual income while the Provincial and Diocesan Assemblies do not receive $72,850 in annual income. FY12-13 (Sep 2012 Aug 2013) FY13-14 (Sep 2013 Aug 2014) FY14-15 (Sep 2014 Aug 2015) Annual Average Senior Junior Senior Junior Senior Junior -- Percentage Not Paid 20% 44% 20% 49% 21% 48% -- not Received Provincial & Diocesan not Received $121,575 $6,195 $118,725 $6,240 $123,950 $6,225 $127,637 $72,945 N/A $71,235 N/A $74,370 N/A $72,850 Just think how much more great work the Order could accomplish for the furtherance of God s kingdom if these funds were available! Funds of the Order The four funds of the Order are doing well although donations to the Self Denial Fund and the Master s Fund have decreased resulting in less sizable grants than previously distributed. All donations to the Funds are distributed as grants. Donations have also been made to support Assistance for those in need of a dues scholarship, International Development and International Crosses to grow and support Daughters of the King in other countries, Triennial Retreat to assist with speaker and other expenses, and General Support of the Order to assist with other expenses of the Order. We are extremely grateful for all donations and thank you for your generosity. Fund balances as of April 30, 2015 are: Endowment Fund $ 1,637,526 Master s Fund $ 42,457 Self Denial Fund $ 32,908 Alpha Fund $ 52,404

5 Surplus Distributions The Council approved two spending policies. The Operating Fund Surplus Spending Policy allows for the distribution of a percentage of the operating surplus from previous years while retaining a reserve equal to a minimum of six months of the previous year s audited expenses. The Endowment Fund Spending Policy allows for the distribution of a percentage of the available earnings based on the current financial solvency of the Order. Both policies have very specific formulas used to calculate the amounts that may be distributed for specific uses. The entire Council must vote to approve any distributions under these policies. Distributions approved this triennium: FY Operating Fund Surplus Distribution = $94,600 Master s Fund $15,000 Alpha Fund $15,000 Self Denial Fund $15,000 International Development $27,300 Triennial Reserve $10,000 Special Projects $12,300 FY Endowment Fund Spending Policy = $41,166 International Development $20,000 Enrichment $21,166 FY Operating Fund Surplus Distribution = $65,566 Master s Fund $5,000 Alpha Fund $5,000 Self Denial Fund $5,000 International Development $22,226 Triennial Reserve $10,000 Special Projects $18,340 It is through these distributions that the Council has been able to fund the significant work of upgrading the Office with new computer hardware, information technology, and membership software. Furthermore, the impact of the distributions has been far reaching through grants from the three funds and assistance to the growth of the Order internationally. Some of the distribution for Enrichment was used to create a new DVD to help spread the Order. Further, a Enrichment Chair position has been created to develop a strategy for the efficient and effective use of the designated money; to coordinate with leaders at all levels to identify dioceses that need assistance or guidance to grow; and to assemble a speakers' bureau or team of Daughters, who are passionate about the Order and good speakers, to assist them. Dear Heavenly Father We have huge potential for the Order, using its resources wisely, to do amazing good in the world. Grant to your Daughters grace to fulfill their obligations and wisdom and energy to the work you have called us to do. We ask this For His Sake, our King and Savior, Jesus Christ. Amen. Annemarie E. Delgado Treasurer,