2008 Journal Cover Pages.pub - Wisconsin Conference United ...

2008 Wisconsin Conference JournalWISCONSIN ANNUAL CONFERENCETHE UNITED METHODIST CHURCHSun Prairie, WisconsinNOTES TO FINANCIAL STATEMENTSNOTE 1:INFORMATION ABOUT THE ORGANIZATION AND SUMMARY OFSIGNIFICANT ACCOUNTING POLICIESA. NATURE OF ACTIVITIESThe Wisconsin Annual Conference of The United Methodist Church accepts apportionmentsfrom United Methodist churches in Wisconsin and distributes monies to General Conferenceagencies for national and international programs, Wisconsin Annual Conference agenciesfor local programs, and to other charitable organizations.To ensure observance of limitations and restrictions placed on the use of resources availableto the Conference, its accounts are maintained in accordance with the principles of fundaccounting. Resources of various purposes are classified for accounting and reportingpurposes into funds established according to their nature and purposes. Separate accountsare maintained for each fund.The Undesignated Fund represents amounts received primarily from apportionments andpass-through donations and is expended for purposes set forth in the annual budget adoptedby the Conference or by the donor.The Designated Fund includes amounts to be used for specified purposes as determinedby donors or conference agencies.The Group Health Benefit Fund records the receipt from local churches and individualsand the Wisconsin Annual Conference payment to the General Board of Pension andHealth Benefits (for the active plan) and a third-party administrator (for the retiree plan) ofpremiums for the Wisconsin Annual Conference Group Health Plan. This plan provideshealth insurance benefits to eligible active lay employees and clergy of the WisconsinAnnual Conference, participating local churches, certain agencies or institutions of theUnited Methodist Church, and to eligible retired individuals and surviving spouses of theparticipating individuals.The Pension and Benefits Fund records the receipt from local churches and the WisconsinAnnual Conference payment to the General Board of Pension and Health Benefits ofcontributions to the Clergy Retirement Security Program (CRSP) and the ComprehensiveProtection Plan (CPP), the denominational pension plan and death and disability plan forclergy.B. INTERFUND ACTIVITYFor financial reporting purposes, interfund receivables and payables, as well as interfundrevenues and expenses, have been eliminated.C. CASH AND CASH EQUIVALENTSFor the statements of cash flows, the Conference considers cash accounts which are notsubject to withdrawal restrictions or penalties and highly liquid debt instruments purchasedwith an initial maturity of three months or less to be cash equivalents.182 Audited Financial Statements