Cal-Pac runs $3.6 million deficit

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.


10 thoughts on “Cal-Pac runs $3.6 million deficit

  1. Hey, don’t be too hard on the dears. Old habits are hard to break. I was a layperson in the Conference before moving to Texas and was very much involved watching my family’s giving going to the Pacific Homes debaucle! If not for Bishop Tuell our bacon would have been fried good! He gets a lot of bad press but he fought to keep the place afloat in economic matters. Don’t get me started, though, on his “progressive” attitudes. So when do we seriously deal with the Elephants in the room?

  2. I always find these addresses rather interesting. So much power! So much positive energy! So much left unsaid! Other Mainlines give the same sort of reports. One tiny, incidental question: with all this Disciple making stuff going on and all the rest why is our Country/World in such sad shape? Oops, there’s another one of those Elephants!

    1. Of course I am willing to accept my responsibility. That’s why it’s happy trails to me!

  3. Any budget is a moral statement and changes to the budget are also moral statements. I applaud Cal-Pac for making pensions and camps (our retired servants and children) a priority.

      1. Anyone that has ever made a budget should understand that the budget is an idea. An annual budget (a laughable idea if there ever was one) is only an idea of what the organization wants to accomplish over the following 12 months. But, since it is only an idea, the treasurer is put in place to make sure that things go according to plan.

        What is the treasurer to do when reality does not match the idea? As a UM Pastor of a small country church, I could decide to have a multimillion dollar budget for my church, my ideas can be as big as my heart. However, that will probably not be a reality. When reality hits, then choices have to be made. Those choices are going to be hard. But those choices are going to reveal what I really value.

        I don’t know what happened with Cal-Pac. Maybe there were communication issues, maybe there was something else. But, what is clearly stated is that when choices had to be made, they were. They decided to respect the past and invest in the future. Whatever else I disagree with, I have to respect that.

        As someone with a somewhat right of center theological point of view, it would be really easy to try to play the “my-theology-is-better-than-yours” card and claim that Cal-Pacs problems can be traced back to their liberal positions. However, that’s way to simplistic. They obviously have some work to do and hopefully their budget for the next trip around the sun will be closer to reality. I pray that GBCS will be a blessing to them and show them better practices so that they won’t run a deficit again.

        So, do there choices make everything ok? No. It doesn’t make creative bookkeeping ok. It does show what Cal-Pac values though and I appreciate what they did. Hopefully choices like that won’t be required in the future.

  4. Cal-Pac suffers from creative bookkeeping and social activism that obscures actual finances and the real gospel. The louder the leaders proclaim open hearts, ignoring need for repentance for sins, the quieter people are to support the church and open their pocket books.

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