THE UKRAINIAN NATIONAL ASSOCIATION FORUM (12/21/03)

THE UKRAINIAN NATIONAL ASSOCIATION FORUM

Report of the Auditing Committee of the Ukrainian National Association

The Auditing Committee, in accordance with the UNA By-Laws, on November 18-20, 2003, conducted a review of the operations of the Ukrainian National Association for the first nine months of 2003. The previous audit was conducted on May 28-30, 2003. The Auditing Committee's plan of action consisted of reviewing the implementation of resolutions of the 35th Convention of the UNA, the activity of the financial and organizing departments, UNA publications, and the administrative and financial state of the UNA resort Soyuzivka, and other matters. As a result of its review, the Auditing Committee reports the following.

1. Resolutions of the 35th Convention of the UNA

Since the last audit, the following changes occurred regarding implementation of the resolutions of the 35th Convention.

The convention approved the decision to build, within one year, a monument to Patriarch Mstyslav at Soyuzivka. The building of this monument depends in large measure upon raising the necessary funds and the future of Soyuzivka.

The Executive Committee has prepared a three-year business plan for the UNA for the insurance authorities of the state of New Jersey. This plan includes provisions for enrolling new members and keeping existing members of the UNA, as well as a marketing plan. Thus, the relevant resolution of the 35th Convention was implemented.

2. Financial Department

For the nine months of 2003, the UNA's operating income was $503,000, as compared with $355,000 of income during the same nine-month period in 2002.

The UNA Corporate Headquarters was profitable by the sum of $133,000, a sum less by $38,000 than in the previous year.

The growth in the value of the Canadian dollar and the value of market investments, together with the operating income, resulted in an increase in the UNA's reserves (surplus) of $1,289,000. As of the end of September 2003, the UNA's reserves totaled $7,124,000, while all assets totaled more than $67 million.

The finances of the UNA were reviewed for 2001 and 2002 by independent public auditors. The report from their audit shows that internal controls at Soyuzivka must be strengthened.

Also, the state auditors of New Jersey reviewed the activity of the UNA for the past several years regarding escheats, that is, assets unclaimed due to lack of proper addresses, which in accordance with the law must be transferred for safekeeping to the state government. The UNA transferred $31,555 to the state as a result of this audit. The amounts owed to other states are being analyzed.

The Auditing Committee received a letter from the chairman of the UNA Convention Committee in Chicago in which he satisfactorily explained his report on the finances of the 35th Convention.

As a result of recommendations by the Auditing Committee that efforts be increased to collect debts for advertisements, these debts decreased within a one-year-period from $35,000 to $8,600. The collection of payments due continues.

3. Organizing Department

For the nine months of 2003, 201 new policies for $3,869,000 of insurance were sold. This number includes six policies sold in Canada for the sum of $75,000. At the same time, however, the total number of active policies decreased by 1,379. In view of the favorable interest rate, the UNA gained 104 annuities accounts totaling $1,766,000. As of the end of September 2003 the UNA had 39,578 members in the United States and 2,842 members in Canada. The UNA has 26 districts, of which four did not enroll a single new member during the nine months of 2003.

Evaluating the work of individual districts, we note that the Pittsburgh District enrolled the most new members, 35, insured for a total of $639,571. The chairman of the district is Nick Diakiwsky.

In second place is the Northern New Jersey District, which signed up 29 new members insured for $548,999. The district chairman is Eugene Oscislawski.

Third place was taken by the Philadelphia District, which enrolled 24 new members insured for $496,000. The district chairman is Stefan Hawrysz.

Among secretaries, commendations and thanks are due to Myron Pylypiak for enrolling 10 new members insured for $134,000; and to Lubov Streletsky and Christine Brodyn, for enrolling nine new members each, insured for $347,000 and $172,000, respectively.

In November of 2002 the UNA signed a one-year contract with Western Catholic Union, which sold 39 new policies for the sum of $842,665. This contract was renewed for another year.

4. UNA Publications, Svoboda and The Ukrainian Weekly

As of the end of September 2003, the number of Svoboda subscribers was 6,539; The Ukrainian Weekly subscribers totaled 6,240. In comparison with the end of 2002, the number of Svoboda subscribers decreased by 227, while the number of Weekly subscribers declined by 66.

The deficit of both publications for the nine months of 2003 was $137,000. For purposes of comparison, let us recall for the nine months of 2002 it was $39,000 higher. It is worth noting that the decrease in subscribers to both newspapers has slowed down in comparison with the previous year. In accordance with the budget for 2003, the deficit of both publications should not exceed $150,000.

5. Soyuzivka

For the nine months of 2003, Soyuzivka's deficit totaled $227,000. During the three quarters of 2002 Soyuzivka lost $480,000. This decrease was the result mainly of donations totaling $174,000 and an increase in activity during the season.

The 35th Convention established a committee to improve Soyuzivka whose goal is to halt the need for cash allocations to the UNA resort and at the same time keep the resort in Ukrainian hands, if possible. The Executive Committee was directed to support the Soyuzivka committee's activity for one year with appropriate funding.

The Executive Committee constantly informs the Soyuzivka committee about its work relating to Soyuzivka; nonetheless, to date it has not received any directives from the Soyuzivka committee.

The Executive Committee has implemented certain improvements at Soyuzivka, mainly in the dining room, and continues to work with a group of experts for the benefit of guests and Soyuzivka.

The Executive Committee sent a strategic business plan for the 2003-2005 period to the insurance authorities of the State of New Jersey. This plan details the work not only of the UNA as a whole, but of its various operations, including Soyuzivka. The plan was discussed at a meeting with state officials in June. State authorities are observing the UNA's moves, principally as regards Soyuzivka.

6. Miscellaneous

The UNA became the owner of a home due to default on a mortgage loan. This home already has a buyer and the contract of sale is to be signed in December of this year.

There is an opportunity to rent about 5,250 square feet of office space in the UNA Corporate Headquarters building to outside clients. The Executive Committee is working on this.

For the Auditing Committee:

Dr. Zenon Holubec, chairman
Yaroslav Zaviysky, vice-chairman
Dr. Alexander Serafyn, secretary

(Translated by The Ukrainian Weekly.)

Northern New Jersey District sponsors seminar on home buying

PARSIPPANY, N.J. - The Northern New Jersey District Committee of the Ukrainian National Association sponsored a seminar on home-buying geared toward Ukrainians who have recently arrived in the United States. The seminar covered both the financial and legal questions associated with buying a home and was attended by some 40 persons. The presenters included experts in their respective fields: (seen above, from left) Jerry Kuzemczak, attorney with Welt and David, P.C.; Michael Koziupa, manager of the Selfreliance Ukrainian American Federal Credit Union's Parsippany branch office; Stephan Welhasch, investments manager for the UNA; and Vasyl Kavatsiuk, real estate broker with Exit Realty. At the conclusion of the event, which was held at the UNA Corporate Headquarters on Sunday, October 19, UNA National Secretary Christine Kozak thanked the Northern New Jersey District Committee, which is chaired by UNA Advisor Eugene Oscislawski, for organizing such a useful program.

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