Financial Responsibility With Grandma and Grandpa Jones’ Money

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Financial Responsibility With Grandma and Grandpa Jones’ Money

Randy Robinson, North American Division treasurer, discusses finances during his 2019 YEM treasury report. Photo by Dan Weber

Randy Robinson, North American Division treasurer, introduced the 2019 treasury report with thanks to G. Thomas Evans, previous treasurer. He then shared 2 Chronicles 7:14 as he opened his report on Nov. 4.

Before getting into the numbers, Robinson shared how he keeps financial accountability by remembering two personas. “Grandma and Grandpa Jones look at their pension, maybe $1,500, and they decide to happily write a check to the Seventh-day Adventist Church for $150,” he said. “I’m exceedingly grateful for the individuals who have capacity to give large amounts of money, and some give millions. But the bread and butter of the Adventist Church is Grandma and Grandpa Jones. … We deal with millions of dollars … It is easy to forget Grandma and Grandpa Jones. But we dare not forget their generosity.” [CLICK HERE for interview with Robinson.]

Robinson shared highlights from the 2018 audited financial statement, including operating fund trends, working capital, and tithe. He reported that although the operating fund assets dipped for 2017 after the NAD purchased its headquarters building, the 2018 figures show an upward trend. Robinson reminded the executive committee that “we own this building outright. So you can see the important trend there: if we look at our whole operation, our assets are increasing modestly.”

Working capital, explained Robinson, has dipped — in 2017 it was 78 percent — but is also trending up with 2018 showing 85 percent. A working capital of 100 percent is optimal. 

“The most important metric that I use for financial health of the organization is the number of days of cash on hand,” explained Robinson. He shared that the NAD had 209 days of cash plus investments available in 2018. It was 220 in 2016, and 194 in 2017. “Recommended working capital as a North American Division policy says you should have a certain amount of assets available to you to do business. The number should be between 180 and 210 days of cash. Right now we are at 185 with the trend going up,” he said.

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