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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