Treasurer Reports Continued Diocesan Support for Program
Episcopal News Service. February 16, 1978 [78046]
NEW ORLEANS, La. -- The Executive Council of the Episcopal Church heard its treasurer report that the actual payments on 1977 pledges by its 93 U.S. dioceses was approximately the same as that for 1976. The pledged amount of $11,570,000 fell short by only $46,000 while the budget amount of $11,700,000 was short by $176,000.
Matthew Costigan, treasurer, told the 41-member Executive Council at its annual meeting here Feb. 15-16, that the unexpended balance for 1977 was $18,413, "a dangerously low margin for the General Church Program to operate upder." He praised the Episcopal Church Center staff for limiting budgetary expenditures in order to prevent a budget deficit.
The total income shortfall from all sources was $303,000, with returns from trust funds and short term investments accounting for most of the deficit. Trust fund income was $141,073.92 less than estimated and short term investments brought in $1,245.15 less than budgeted. The voluntary offering of the Church's 19 overseas dioceses was $8,439.51 less than estimated.
Mr. Costigan reported that the unaudited balance sheet for 1977 shows a decrease in total assets by $5,200,000 over the previous year. He said this can be accounted for by large appropriations from accumulated and current receipts of several of the special offering funds.
He said the market value of the trust fund securities decreased by $3,600,000 which was an 8.8 percent decline. When compared with the Dow Jones Industrial Average decline of 17.3 percent and the Standard and Poor's Five Hundred loss of 11.5 percent, he said "our Committee on Trust Funds managed our portfolio very well. "
He reported that the Council's portfolio at the end of 1977 was diversified as follows: common stocks, 59.69%; convertible preferred, 3.22%; non-convertible bonds, 31.16%; and temporary investments (U.S. Treasuries), 5.93%. He estimated the annual income for investments for 1978 to be approximately 5.6 percent.
At the end of 1977, he said, the assets of the employes retirement fund totaled $2,409,000 and real estate funds decreased by $1,900,000, primarily because of the sale of the Seminary of the Caribbean in Puerto Rico, with the proceeds added to trust funds.
Mr. Costigan said that 15 dioceses had overpaid their assigned apportionments by at least $100. They are: Ohio, $30,000; Nebraska, $4,998; Alabama, $4,308; Western Massachusetts, $2,373; New Jersey, $1,710; Newark, $1,500; Oregon, $1,500; Maine, $1,146; Milwaukee, $900; Rio Grande, $600; Atlanta, $329; Kentucky, $277; Minnesota, $273; Michigan, $118; and Iowa, $109.
Seven dioceses overpaid their 1977 pledge by at least $100, he reported: New Jersey, Newark, Kentucky, Minnesota, Pittsburgh, New York, and Maryland.
Mr. Costigan pointed out that in addition to these dioceses which overpaid their apportionment or pledge, there were many other jurisdictions which met their assigned apportionment exactly or who gave sacrificially even though the quota was not met.
He reminded the Council that in addition to less income than expected, there was also the rising fixed cost expenses which accounted for the small unexpended balance at the end of the year. These included increased medical costs, additional pension allowance for retired missionaries, the operation of the Episcopal Church Center -- especially escalating utilities expenses -- and the employment of an internal auditor as authorized by General Convention.
He pointed out that the contributions to the Presiding Bishop's Fund for World Relief in 1977 amounted to $1.4 million as compared with $2.1 million for 1976. The Church School Missionary Offering, however, increased from $83,000 in 1976 to $118,000 in 1977. The Good Friday Offering was about $10,000 less in 1977 than the previous year, while the United Thank Offering was up by approximately $34,000.
The assigned apportionments for 1978, as authorized by the General Convention in 1976, was $12,431,000. To date 81 dioceses have reported their firm or estimated pledges, with seven overpledging and nine underpledging their apportionments. He said he anticipates the diocesan pledges "will come very close to the $11.9 million budgeted. "
Mr. Costigan said that there had been a good response to the appeal of the Council last December to the dioceses to provide additional funds for 33 overseas and domestic dioceses which were faced with a reduction of $137,000 because of a shortfall in income. Seven dioceses contributed a total of $37,077: Central Gulf Coast, Indianapolis, Oklahoma, West Missouri, New Hampshire, Washington, and Springfield.