The episcopal address for the California-Pacific Annual Conference goes into great length about the financial problems facing the conference. Here is one of several paragraphs on the topic.
A primary request of the GCFA was that they would assist us in developing an opening balance sheet for 2012. From this financial analysis we learned that our annual conference ended calendar year 2011 with a $3,549,137.39 deficit. How did we stay afloat through this deficit? Funds were transferred from one fund into another fund without the knowledge or authorization of the fund stakeholders. The GCFA team was able to determine that over 500 transactions moving funds from one to another occurred in 2011 leaving some accounts without actual cash balances in the bank. Specifically, expenditures related to our general fund, pension obligations, and camps depended on funds being transferred to cover them from our Trustee funds, Congregational Loan funds, other designated funds, and our temporarily restricted funds. GCFA rightfully recommends that we prepare a thorough financial and strategic plan to lead us out of a deficit funding position as well as provide for the future of the conference.
The conference has 75,202 members, which is a 3.2% decrease from the previous year.