Post on 11-Jan-2016
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ALLOCATION PROCESS
METROPOLIS OF ATLANTA
2013
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Purpose
Provide stable revenues to the Archdiocese to partially fund its ministries, while ensuring fair and equitable assessment across the country
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What the Allocation Revenue Funds 25% of the allocation revenue is returned to the Metropolises to
pay for their payroll expenses
The other 75% is used to partially offset the Archdiocese operating expenses and ministries such as:
Ecumenical Patriarchate Holy Cross School of Theology Orthodox Observer Archdiocese Web Site Religious Education Youth Programs, such as Ionian Village
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Allocation Budget
The Archdiocese Finance Committee determines the Archdiocese total annual budget for the ensuing year
Based on that, the Finance Committee determines the portion that needs to be funded by the annual allocation revenue – Allocation Budget
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Allocation Methodology
The Allocation Budget is divided among the Nine Metropolises (Eight plus the Direct Arch. District) according to the proportion of their Net Expenditures to the total Net Expenditures of all Metropolises
Therefore, for each Metropolis, the higher its Net Expenditures in comparison to the total Net Expenditures, the higher its allocation would be. For example:
Total Allocation Budget = $20 million Total Archdiocese Net Expenditures = $85 million Metropolis A Net Expenditures = $15 M (17.6 % of $85 M) Metropolis A Allocation = $3.52 Million (17.6% of $20 M)
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Parish Allocation Methodology
Similarly, the Metropolis Allocation is divided among its parishes as a proportion of the parish’s Net Expenditures to the total Net Expenditures of all parishes in the Metropolis
Therefore, for each parish, the higher its Net Expenditures in comparison to the total Metropolis Net Expenditures, the higher its allocation would be. For example:
Total Metropolis A Allocation Budget = $3.52 million Total Metropolis A Net Expenditures = $15 million Parish XYZ Net Expenditures = $200 K ( 1.33 % of $15 M) Parish XYZ Allocation = $46.8 K (1.33% of $3.52 M)
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What are Net Expenditures
Net Expenditures are calculated by subtracting certain parish expenditures—Excluded Expenditures-- from the parish total General Fund and Building Fund expenditures
Net Expenditures =
General Fund Expenditures + Building Fund Expenditures Minus
Excluded Expenditures
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What Are Excluded Expenditures
Excluded Expenditures consist of the following categories All first priest’s expenses (Salary, housing, FICA, auto, etc.) Capital improvements (Land purchase, new buildings, iconography,
renovations, etc.) Mortgage principal and interest Hazard insurance premiums (Casualty/ Liability insurance is not deductible) Parochial, Day Care, and Greek School Expenses Charities Donations (Patriarchate, Archdiocese, Metropolis, Holy Cross, etc.) Festival and other fundraising expenses Clergy-Laity conferences and Metropolis-sponsored parish council
meetings, e.g. Presidents meeting
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Catastrophic Insurance
Typical Catastrophic Insurance Coverage Earthquake Landslide and Mudflow Sinkholes Soil Erosion Water Damage whether or not caused by wind
Flood Surface water Waves Tidal water
Water below ground Water which bucks up through sewers and drains Nuclear hazard
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Allocation Process Schedule
Specific dates vary each year and are included in the “Ecclesiastical Forms/Finances & Expenditures” tab in the Metropolis web site
Generic dates Allocation Process
Forms available in December Allocation forms due to the Metropolis in April Archdiocese allocation review and decision in July-August Parish notification in September
Appeal Process Appeal request in February Appeal request support documentation in April Appeal request review in May Parish notification by May 30
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What Can Go Wrong
For the allocation process to function correctly, all parishes must submit their forms accurately, completely, and on time
Due to the proportional nature of the allocation, inaccurate and missing information from a parish adversely affects the allocation of all parishes in the Metropolis
The Metropolis gets penalized Consequently all parishes get penalized
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Late and Incomplete Form Submission
To encourage on-time and complete form submission, the following penalties are imposed:
Late form submission Up to 5% adder on the parish’s allocation amount
Incomplete forms – One year missing For missing year, net expenditures of following year increased by a 10%
penalty Failure to submit forms in last two years
Average net expenditures assigned to the parish in previous year increased by a 10% penalty
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Appeal Process
For various reasons, a parish’s financial situation may worsen during the current year making it difficult to meet its allocation
Furthermore, a parish may consider its allocation as wrong or excessive
In these cases, parishes may request a review of their allocation by submitting an appeal request to the Metropolis
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Appeal Review Requirements
The parish must be current with its allocation payments No outstanding balance for previous years Up to date with original allocation in current year
Must have submitted the appeal request and appeal documentation on schedule
Must have submitted an allocation form in the previous year (e.g., to appeal the 2014 allocation, the parish had submitted the 2014 allocation form in 2013)
Must submit financial records and a complete allocation form for the year just ended
Must submit the budget for the current year Other material to support the request for appeal
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Enforcement Process
The Archdiocese Allocation is mandatory – All parishes have to participate
The Metropolis has defined an enforcement process for parishes that fail to meet their allocation obligations, including
Holding off ratification of parish council elections Imposing of sanctions, including the removal of
the parish council
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Useful Contact Information
Where to find an allocation form Metropolis web site under Ecclesiastical Forms
www.atlanta.goarch.org/Ecclesiastical Forms/Finances & ExpendituresWhere to find the definitions of the
Chart of AccountsMetropolis web site under Ecclesiastical Forms
www.atlanta.goarch.org/Ecclesiastical Forms/Finances & ExpendituresFor questions on due dates Metropolis Office Phone: 404-634-9345Email: info@atlmetropolis.org
For questions on filling out the Allocation Form
Chairman of Metropolis Finance Committee
Phone: 256-694-4819Email: mmissios@aol.com
For questions about the overall allocation process
Chairman of Metropolis Finance Committee
Phone: 256-694-4819Email: mmissios@aol.com
Where to submit an appeal request Metropolis Chancellor’s Office Phone: 404-634-9345Email: chancellor@atlmetropolis.org
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Excluded ExpendituresGeneral Category Chart of Accounts Number Expenditure
First Priest Expenses 43025 First Priest Salary
43027 First Priest FICA
43050 First Priest Housing
43100 First Priest Auto
43150 First Priest Insurance
Other Priest Expenses 41225 Clergy Moving Expenses
43026 Honorarium/Visiting Priest (When serving in the absence of the first priest)
Insurance 41275 Hazard Insurance for Church Buildings and Contents
Capital Improvements, Renovations, and Major Repairs
90185 Building and Capital Expenses of more than $2500 per instance
90200 Other Building and capital expenses of less than $2500 per instance
90225 Construction Loan Interest
90250 Mortgage Principal and Interest
Educational 48275 Hellenic Education
48300 Parochial / Day School
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Excluded Expenditures
General Category Chart of Accounts Number ExpenditureConferences 42205 Clergy-Laity Congress Travel, Registration, hotel, etc.
42210 Clergy-Laity (Metropolis) Travel, registration, hotel, etc.
42215 Metropolis-sponsored Parish Council Leadership MeetingsAllocations and Donations
45000 Archdiocese Allocation49125 Donations to the Archdiocese49150 Donations to the Metropolis49075 Benevolent Donations (From Parish Funds)49100 Ecumenical Patriarchate Donations49025 National Ministries from General Fund (St. Basils, Holy Cross, etc.)
49050 SCOBA Ministries49200 Local and National Charities49250, Disaster relief Donations
Fundraising 47025 Dinner/Dance/Banquet s47050 Golf Tournaments47075 Greek Festival
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Allocation Trends
2012 2013 2014$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
Archdiocese
Total Net ExpendituresTotal Allocation
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Allocation Trends
2012 2013 2014$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
Metropolis of Atlanta
Total Net ExpendituresTotal Allocation
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Thank You