OCA Treasurer issues financial report for first three quarters of 2008
On December 22, 2008, OCA Treasurer, Priest Michael Tassos, issued a financial report for the first three quarters of 2008 to the Church’s Holy Synod of Bishops and Metropolitan Council.
The financial data may be read in PDF format here. Fr. Michael’s introduction to the report is as follows.
Orthodox Church in America
Treasurer’s Report
For the period January 1, 2008 through September 30, 2008
Your Beatitude, Your Eminences, Your Graces, Reverend Fathers, and members of the Metropolitan Council:
I would like to provide you with an update on various financial matters through September 30, 2008. As with my prior reports, attached are copies of the Comparative Balance Sheet, Statement of Activities, Statement of Cash Flows, Statement of Unrestricted Activities—Actual vs. Budget, Report on the Central Administration Actual vs. Budget, and a Schedule of Temporarily Restricted Funds as of September 30, 2008.
Through September 30, 2008 we had a surplus from operations of $18,640 however we have had a substantial decline in the value of the restricted investment portfolio. Including the realized and unrealized losses in our portfolio, we have a combined loss of $409,192. From a cash flow perspective, several of the dioceses were a little behind as of September 30th; however Fr. Dennis Swencki has spoken with the diocesan treasurers and we don’t anticipate any problems by year end. I would also like to highlight just a few additional items:
Weiser, LLP audit of the year 2007
The accounting firm of Weiser, LLP has completed its work for the year 2007 and I am in the process of going over all of the bills for the audit. Because this was an initial year with them and because neither of us had any prior history, the audit fees will unfortunately most likely exceed our original estimates. The audit partner and I have an appointment the first week of January to discuss their bills.
Department Expenses
I am pleased to report that almost all of the departments were under budget through September 30th and the Preconciliar Commission, in particular, came in under budget by $6,355.
Staff changes at the chancery
I am pleased to say that the personal issues which caused me to return to Los Angeles in April have been resolved and I will be returning to New York in January. Additionally, it is with great sadness that we have to say goodbye to Mr. Peter Ilchuk. Peter has decided to take a position in Pittsburgh and will be leaving at the end of December. Taking his place is Brother Gregory (Stevens). Brother Gregory is from St. John of San Francisco Monastery in Manton, CA.
9/11 Funds
At the last meeting of the of the Metropolitan Council in Pittsburgh, the council voted to send an additional $151,500 to NYDIS in fulfillment of the OCA’s obligation to remit the funds that it had received for 9/11. A check was sent to NYDIS on December 9, 2008.
Bibles For Russia
With the assistance for Archimandrite Zacchaeus Wood in Moscow, we were able to transfer the sum of $40,172 to the Russian Bible Society on September 24, 2008. At the request of the Russian Bible Society, we were asked to help fund a project for bibles translated into the Chuvash language. The sum of the project was determined by the Russian Bible Society, which is why it is different from the amount actually raised. I must point out that there is a difference in our accounting records. According to some prior year’s reports, the amount raised was $65,000. However, according to my records the amount is $62,838.58. I will continue to try to investigate the difference. In any event, there is still approximately $22,000 that needs to be allocated to this project. In consultation with His Beatitude, Metropolitan Jonah, and Archimandrite Zacchaeus, we have decided to send copies of the Orthodox Study Bible to Russia to be distributed throughout Russia’s seminaries. His Beatitude is currently in the process of signing 300 copies. We anticipate this will still leave some money left over. After we have the exact figures I will report back to you as to the use of the remaining balance.
Other Temporarily Restricted Obligations
At the meeting of the Metropolitan Council in September, several requests were made that we expedite the distribution of as many of the temporarily restricted obligations as possible. Because of the All American Council, it simply was not possible to get all of the distributions made as we would have liked. However, we have been working on them since the council and we have distributed all of the seminary appeals, the Alaskan Childrens Medical and Clergy assistance. We are planning to deliver a check to Archimandrite Zacchaeus for the remainder of the St. Catherine’s fund next week.
15th All American Council
We are just about done with compiling all of the revenues and expenses for the 15th All American Council. Thus far it appears that we were a little over budget. I estimate that we will be approximately $7,000 over budget. While I was hoping to be at budget or slightly under, considering the number of unknowns with this particular council, I am pleased that the overage is not greater. I will provide you with a detailed profit and loss statement on the council in approximately two weeks.
Movement of the Restricted Endowment accounts to Honesdale National Bank
It has taken surprisingly longer than anticipated but we have just begun to receive the funds from Wachovia securities and will be transferring the funds to Honesdale National Bank this week. We hope to call a meeting of the investment committee in the next couple of weeks to complete a formal investment policy.
Blackbaud Software project
We are moving forward with the Blackbaud implementation. We have held several meetings with Blackbaud to nail down an implementation plan. Because the implementation and training is quite extensive, we anticipate that we will be up and running on the software at the beginning of the second quarter in 2009.
Update on notification to the IRS about Excess Benefits
Approximately one week after the All American Council, I contacted a special agent from the U.S. Department of the Treasury, Criminal Investigation Department. I explained what I knew about the situation and he requested that I put forth my concerns in writing. Due to the fact that I was not involved with all of the investigation and various allegations, I made a request to the OCA’s legal committee to prepare the letter. I am still waiting for a response from the legal committee.
Respectfully submitted in Christ,
Priest Michael Tassos
Treasurer