Questions & Answers

to Donna Reed

Question 1

Where are the levy allotments from Sobor resolutions F1, F2 & F3? These funds were to be restricted outside of the operating fund and held solely for those positions when they were filled.

Answer from Jennifer Parks.

I based my numbers on 3900 members so it may vary a bit.

$16/levy for OME x 3900 = $62,400

$9/levy for Communications Officer x 3900 = $35,100

$3/levy for Youth Worker x 3900 = $11,700

Total - $109,200

Again, if we only received 3700 membership levies that number will decrease. I was ballparking it off the financials. You stated that you know the funds were being held restricted in the operating fund.

At year end the cash flow was approximately $134,000, and we traditionally do not receive a lot of income particularly in Q1 and most of Q2, removing the approximate $109,000 from that left only some $25,000 to run the Consistory until the next levies started coming in. This does not seem to make sense given our payroll, etc.

Question 2

Please provide the signed Sobor minutes and the funds will then be moved to the restricted accounts for the OME and Communications positions.

Answer from Jennifer Parks.

There is a total of $415k of levy revenue outstanding on Sep 30, 2023 (see excel book tab ‘Collections at Sep 30-23’ and PDF pie chart). This revenue owing has been verified over the past two and a half years (that I have been here) and is based on the information that we have received from the parishes in the process of building back the lost “Master Database of Parishes'' and their details by the previous Consistory boards and employee’s (prior Sep 2021).

This monstrous task was part of my mandate when I was hired for this position. We have currently verified 85% of our parishes and our members with their help and cooperation (i.e. Filling out and sending back the Parish Report Form, where they report the number of members they have as of Dec 31, 2023, of the previous year).

This number of members represents the amount of revenue we should project to budget for, and we use the Allowance of Doubtful accounts to account for the fact that some accounts receivable will be uncollectible as it ages as well as the fact that our revenue projection is 85% accurate.

From Oct 1, 2023, to Dec 31, 2023, we collected $131k in levy payments which reduced the accounts receivable by this amount (131K) and increased our cash balance.

Collections at Sep 30-23

AR Levy Payments Oct 1-Dec 31-23

Question 3

There was $45,323 taken from the Missions dedicated fund along with another $13,000+ expensed to missions during the year. I understand this primarily came from trips made to Newfoundland. My understanding is that the receipts for these trips totalled between $65,000 to $68,000. I see where $58,000 is accounted for but where was the remainder expensed? Who authorized these trips? Who authorized the expenses and what day, or which meeting were these expenses either pre approved or approved by the Consistory Board or the Presidium?

Answer from Jennifer Parks.

From comments during the meeting, it sounded like that never happened. With an amount this large that is not acceptable.

The remaining 13k was expensed on the Profit and Loss statement September 30, 2023, under account ‘72000 Mission and Education Expense’.

I reported directly to the Chancellor, and he approved all the expenses we paid out. I was not in attendance at the meetings.

Question 4

Salaries & Benefits show an increase of $113,026. What accounted for this? You stated that you did not receive a raise. Did anyone? I understand Jennifer received a bonus moved during the previous term which should be reflected in this reporting period. I understand she was also given a raise in November of 2022. If I am wrong, I stand corrected. That raise was in the next Q1 and wouldn’t be reflected on these statements. Where was the increase on these financials incurred? Who authorized it and at what meeting? The proposed budget indicates a further $29,000 for this year? Where is that going and where are those funds coming from? Who oversees the time sheets submitted to Ceridian? Those should be signed off by someone other than just the Finance Manager.

Answer from Jennifer Parks.

Payroll costs increased due to:

Bishop Ilarion increased pay for Metropolitan including back pay.
Fr. Taras final payout and vacation paid out thus double pay for Chancellor overlap.
Finance Manager raise Sep 22 and payout of vacation not taken Nov 22.
Financial Coordinator position for AR and group benefit administration.
Administrator for Finance Accounts Payable and Vital Statistics (originally hired to complete Master Parish Database so the website could be updated, and I believe this was a movement from the Consistory Board in August of 2022.

The Chancellor approves the payroll time sheets prepared by the Finance Manager prior to the submission of payroll to Ceridian.

Question 5

Expenses increased some $249,000. There needs to be a deeper explanation as to what those expenses were, why they were required and who authorized them? Where and when were they approved by either the Presidium or the Consistory Board? Or when was even the Treasurer consulted?

Answer from Jennifer Parks.

Expenses increased from FY 2022 to FY 2023 by approx. 200k. The majority of this is made up of increases to payroll as per above (112K),

Increases in Travel 20K (moving expense for the Chancellor), UOCC Consistory Board Expenses 30k.

There was no budget for Consistory Board Expenses (Enthronement, D&O Insurance, Canadian Council of Churches) or for the Chancellor’s moving expenses in the approved budget that was revised from the original budget provided by the Finance Manager.

Please also see the notes to the financial statements provided throughout FY 2022/2023 for comments on increased expenses in each account.

If there is something specific, I can provide back up.

The budget for total expenses for FY 2023 was 760k and actual expenses were 730k.

Question 6

D&O Insurance is absolutely very important. You stated that an increase to $2,000,000 in coverage came as an offer with the invoice and the impact was minimal. Was it approximately $7,000? Why was the Treasurer or the Presidium not asked for an opinion?

Answer from Jennifer Parks

The Treasurer was copied on the correspondence email regarding this with our insurance agent and broker.

We paid:

$9,900 for 1M coverage in 2022-23 and
$13,800 for 2M coverage in 2023-24.

An increase of $3,900.

The cost of the new 2M coverage will be reflected in the 2024 FY financial statements.

Question 7

When did the auditors receive the financial information to complete their work? Have additional expenses been incurred since relating to adjustments, etc.? The proposed budget earmarks $15,000 for next year but there is (52,000+) listed for the previous year? Was that an expense or what is that number?

Answer from Jennifer Parks

The auditors received the information they requested when they arrived on site for the audit in December. There may be additional expenses for the auditor attending meetings and fielding questions and phone calls from board members.

Completing adjustments is part of my duties. The 52K was an error and we have corrected it with the auditors. The corrected financial statements and final draft will reflect audit fee expenses of $10,026.

Question 8

The previous Consistory Board passed a motion that net proceeds from the 2022 Sobor would be held in a restricted account to be used as seed money for the 2025 Sobor. I think Dobr. Lesia Skyba referred to it at the Sobor. There is no indication that a restricted or designated fund was set up for this purpose. Where are those funds? I am ballparking that total to be $50,000?

Answer from Jennifer Parks

I was not aware of this, but I will move those funds to restricted once I receive direction from the Chancellor. ($111,555 Sobor revenue less $56,508 Sobor expenses leaves $55,047).

I have spoken with Larson Hogberg regarding moving funds we missed into reserved accounts, and he indicated that we will do this in FY 2024.

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