THE UKRAINIAN NATIONAL ASSOCIATION FORUM (12/12/04)

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 16-18, 2004, conducted a review of the operations of the Ukrainian National Association for the first nine months of 2004. The previous audit was conducted on May 24-27, 2004. 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 authorized the Executive of the UNA to create a standing committee whose task it would be to resolve the issue of the future of Canadian membership. This committee was to present its recommendations to the Executive within two years. To date, nearly nothing has been done in this regard.

2. Financial Department

For the first nine months of 2004, the UNA's operating losses were $135,000. For the nine months of 2004 operating income was $867,000.

The UNA Corporate Headquarters was profitable by the sum of $177,000 - $3,000 more than in the previous year.

Despite the increase in the value of the Canadian dollar and the value of market investments, the deficit of Soyuzivka and UNA publications contributed to the decrease in the UNA's reserves (surplus) by $437,000.

As of the end of September 2004, the UNA's reserves totaled $5,860,000, while all assets totaled more than $68 million.

The finances of the UNA were reviewed for 2003 by an independent auditing firm. The report of their audit did not contain any comments.

The state auditors of New Jersey focused attention on the matter of escheats, that is, unclaimed assets, which in accordance with the law must be transferred for safekeeping to the state government. The UNA transferred an additional $5,029 to the state of New Jersey and $2,890 to Pennsylvania, as well as $1,139 to Texas. The amounts owed to other states are being analyzed.

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 $7,660 to $5,720. The collection of payments due continues.

3. Organizing Department

For the nine months of 2004, 255 new policies for $5,250,000 of insurance were sold. This number includes 36 policies sold by Western Catholic Union, which works for us only in the states of Pennsylvania, Ohio and Florida, for the sum of $500,000. In view of the favorable interest rate, the UNA gained 76 annuities accounts totaling $1,429,000.

Evaluating the work of individuals, the following three persons deserve commendations: Steve Woch, who enrolled 13 new members insured for $211,000 and sold nine annuity certificates for a sum of $167,000; Myron Pylypiak, who enrolled 12 new members insured for $121,000; and Christine Brodyn, who enrolled 11 new members insured for $115,000 and sold five annuity certificates for a sum of $108,000.

At this time we have 51 branches out of 220 that enrolled one member or none, unfortunately, during the past seven years.

4. UNA Publications, Svoboda and The Ukrainian Weekly

As of the end of September 2004, the number of Svoboda subscribers was 6,239; The Ukrainian Weekly subscribers totaled 6,079. In comparison with the end of 2003, the number of Svoboda subscribers decreased by 236, while the number of Weekly subscribers declined by 113.

The deficit of both publications for the nine months of 2004 was $140,000. For purposes of comparison, let us recall for the nine months of 2003 it was $137,000 higher. In accordance with the budget for 2004, the deficit of both publications should not exceed $150,000.

5. Soyuzivka

For the nine months of 2004, Soyuzivka's deficit totaled $353,000. For nine months of 2003 Soyuzivka lost $227,000. Despite an increase in income of $62,000, the increase in the deficit was caused mainly by decreased donations during 2004. In 2003 donations totaled $175,000, and in 2004 they amounted to only $105,000.

The 35th Convention established a committee 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 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, who are observing the UNA's moves, principally as regards Soyuzivka.

The Executive has made several improvements at Soyuzivka and continues to work with a group of experts for the benefit of guests and Soyuzivka.

One of the projects that is now being reviewed is the expansion of existing hotel accommodations and the creation of a conference center in the Main House. The Executive plans to use the land behind Kyiv for the construction of six buildings, each of which will be composed of six to eight town homes. The second stage of construction includes the use of 30 acres of lands adjacent to the church property.

6. Miscellaneous

For the nine months of 2004 261 members of the UNA availed themselves of the ScriptSave program of discounts on medicines, saving an average of 22 percent.

Approximately 7,730 square feet are available for rent to outside clients in the UNA headquarters building. In December, the available space in the building will increase to 10,993 square feet. The Executive is working on this with a real estate agent.

For the Auditing Committee:
Dr. Zenon Holubec, chairman
Yaroslav Zaviysky, vice-chairman
Dr. Alexander Serafyn, secretary

(Translated by The Ukrainian Weekly.)

Young UNA'ers

Alexander V. Kolody, son of Andrew and Lucia Kolody of Highlands Ranch, Colo., (seen above at the age of two months) is a new member of UNA Branch 171. He was enrolled by his grandmother Areta O. Kolody.
Michael Anthony Inzana, 2, son of Anthony and Debra Inzana of Rochester, N.Y., is a new member of UNA Branch 367. He was enrolled by his great grandmother Kateryna Szczur.
Peter George Stromeckyj, son of George Z. and Halina A. Stromeckyj of Des Plaines, Ill., is a new member of UNA Branch 452. He was enrolled by his parents.
Dylan Leo Marfey, son of Lynn and Johan Marfey of New York, is a new member of UNA Branch 13. He was enrolled by his grandmother Dr. Anne Marfey.
Anthony Volodymyr Dmytrijuk, 2, son of Natalia Myroslava Derzko-Dmytrijuk and Dr. Andrew Dmytrijuk of Alexandria, Va., is a new member of UNA Branch 127. He was enrolled by his parents.

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