THE UKRAINIAN NATIONAL ASSOCIATION FORUM (11/17/96)

THE UKRAINIAN NATIONAL ASSOCIATION FORUM

UNA executives hold third quarter meeting

by Roma Hadzewycz

JERSEY CITY, N.J. - The Executive Committee of the Ukrainian National Association held its regular quarterly meeting here at the UNA Home Office on Wednesday, November 6, a day prior to the start of the annual meeting of the organization's General Assembly (see story beginning on page 1).

The meeting was chaired by UNA President Ulana Diachuk and attended by Vice-President Nestor Olesnycky, Director for Canada Peter Savaryn, Secretary Martha Lysko, Treasurer Alexander Blahitka and Auditor Stefan Hawrysz. Vice-Presidentess Anya Dydyk-Petrenko was unable to attend due to illness. (Also present to report on the meeting were the editors-in-chief of Svoboda and The Ukrainian Weekly.)

As is customary, the first report delivered was the treasurer's.

Treasurer's report

Mr. Blahitka reported that the UNA's ledger assets had increased by almost $900,000 during the first nine months of 1996 to $75,684,730, as compared to the first nine months of 1995. The increase from year-end ledger assets was only $149,505.

Annuity sales were down by almost 70 percent, amounting to $417,042; there was a decrease also in Universal Life premiums of 42.57 percent, or $34,000. Dues received decreased by approximately 4 percent to a level of $1,574,295. The good news regarding dues is that the Additional Insurance Program (AIP) brought in an additional $431,600 in premiums during the first nine months of 1996.

Another disturbing trend, the treasurer pointed out, is the increase in cash surrenders every year. There was an increase of over 64 percent during the nine-month period ending September 30 of this year, as compared to 1995. This, even though the UNA now has a policy of attempting to contact individuals who are pulling money out via cash surrenders and matured endowments and encouraging members to convert these into new certificates. Mr. Blahitka also said the UNA paid 20 percent less death benefits this year.

A refund to members of $300,000 was paid out in 1996. The UNA's actuary has recommended that this refund, more commonly referred to as a dividend, be abolished. Mr. Blahitka, however, recommended that this $300,000 level be maintained for one more year.

The UNA's matured endowments continue to decrease from year to year, Mr. Blahitka continued. The one expense he does like to see increase did not, said Mr. Blahitka. In fact, the reward to organizers went down by 62 percent. This is yet another indicator of a decline in membership.

The Canadian government imposed an increased tax on investments: 355 percent or $58,000. Thus, the UNA was forced to pay $74,722 for a tax that did not even exist four years ago.

Soyuzivka receipts for the first nine months of 1996 were 25 percent higher than in the first nine months of 1995; expenses also were higher, by 27 percent. UNA publications showed better results during the first three quarters of this year. Receipts for Svoboda and The Ukrainian Weekly increased by 20 percent, and operating expenses decreased by 5 percent. This still resulted in a subsidy of $182,000, but this subsidy was $250,000 less than a year earlier.

Regarding the Ukrainian National Urban Renewal Corp., Mr. Blahitka started with what he called the "good news." The building now has less than 5,000 square feet vacant. However, another 9,000 square feet will become vacant in February or March 1997, when the existing tenant moves into his full floor of newly leased space. More good news: rent rates have stabilized and even increased slightly. The UNURC is now doing deals in the $20 per square foot range. However that's still 15 percent less than five years ago. Rentals were down slightly during 1995, since the building did a lot of leasing during the year and had free time during build-out of tenant space.

Disbursements remained relatively steady from 1994-1995, the treasurer reported. An increase in commissions paid is a further indicator of increased rental leasing activity. Expenses for utilities increased due to more tenants coming in and not paying immediately for their premises' electrical usage and the lengthening of service periods for air-conditioning and heating. Interest paid on the UNA's loan to the UNURC and on members' promissory notes is less than a year ago, due to the lowering of interest rates by management to reflect current market conditions.

Rental income for the first nine months of 1996 is approximately 10 percent higher. Expenses also were higher, however by only approximately 3 percent. The results of operations for the first nine months of 1996 show a cash surplus of $350,435. However, Mr. Blahitka added, if the UNURC continues its current policy of building depreciation and UNA loan interest capitalization, a net loss from the operation of approximately $400,000, the same sum as last year, should be expected.

Vice-president's report

During this quarter, Mr. Olesnycky reported that he was active in the UNA Investment Committee, represented the UNA at the Philadelphia District Committee meeting on November 3, and attended the National Fraternal Congress of America convention in Nashville in September.

He also attended the Labor Day festivities at Soyuzivka. This was in addition to the attention Mr. Olesnycky gives to all legal matters of the UNA, such as litigation, mortgages, regulatory matters, employee contracts, mergers and acquisitions, and the sale and purchase of the UNA's headquarters building.

Mr. Olesnycky said he had entered into a dialogue with the UNA's Internet experts, Stefko Kuropas, who heads the General Assembly's Internet Committee, and Bohdan Peter Rekshynskyj, who has already begun work on the UNA homepage. The vice-president reported that he is in the process of obtaining help from larger fraternals in observing their videotapes and homepages to see what works for fraternals and what doesn't.

Mr. Olesnycky also reported that he has obtained information about bringing the concept of Habitat for Humanity to Ukraine. At the NFCA convention the founder of HFH, Millard Fuller, explained the concept and praised HFH's partnership with fraternals both here and in the motherlands of most ethnic fraternals. "Ukraine is not yet included, and I can't think of a more worthwhile fraternal activity for our members and potential members to get back to the volunteerism that galvanized our organization in years past," concluded Mr. Olesnycky.

Secretary's report

Mrs. Lysko reported on the Additional Insurance Program, noting that over 28,000 UNA members were contacted directly about this offer. A total of 2,078 members applied for $5,857,791 of new insurance during the period from September 1995 to September 1996. The program required much additional work for the Recording Department, she noted, but she added that this also provided an opportunity for the UNA Home Office to update its membership files.

She also focused much attention on UNA branch secretaries, pointing out that many longtime secretaries had retired and that the UNA is actively searching for new secretaries to take over the responsibilities of activists who are of advanced age.

In an attempt to keep in better contact with UNA branch secretaries, the UNA's national secretary reported that a newsletter has been published to give updates on new products or forms. Five newsletters were sent to secretaries in 1995 and four thus far in 1996.

Mrs. Lysko reported that somehow the Home Office had separated itself from branch secretaries and she emphasized, "we have to increase contacts and all work together." She added that she would like to invite new secretaries to the Home Office, to establish contact with them and give them impetus for their work. "We have to support them and make them feel like a part of our organization," she said.

Canadian director's report

Dr. Savaryn, the UNA's director for Canada, spoke of his role as the UNA's chief representative in that country. In that capacity he kept in contact with the UNA sales office in Etobicoke, just outside of Toronto, visited the UNA branch in Montreal and wrote about UNA matters to various Canadian newspapers. As well, Dr. Savaryn attended funeral services held in Winnipeg for Archbishop Maxim Hermaniuk, former metropolitan for Ukrainian Catholics in Canada.

President's report

The president began her report by focusing on organizing matters. During the first nine months of this year, 643 members insured for $13,823,759 had been enrolled by organizers active in the UNA's 30 districts located throughout the United States and Canada. As compared to the same nine-month period in 1995 the number of new members was down (from 804). However, the average face value of policies sold was up to nearly $21,500 in 1996, while it was just over $18,000 in 1995. The organizing quota for 1996 has thus far been met only by 29 percent, whereas last year at the same time the quota had been attained by 40 percent.

Mrs. Diachuk also recognized the work of the UNA's top organizers, both professionals and local activists. Those enrolling 10 or more members as of the third quarter of 1996 are: Maria Chomyn, 45; Lon Staruch, 32; Miron Pilipiak, 26; Joe Binczak, 21; Andre Worobec, 20; Eugene Oscislawski, 19; Bob Cook, 14; Irina Danilovitch, 13; John Danilack and Atanas Slusarczuk, 12 each; Stefan Hawrysz and Paul Shewchuk, 11 each; and Stefko Kuropas, 10.

During the first nine months of 1996, the UNA's professional salespersons in the United States had enrolled 119 new members insured for $5,512,541; in Canada they enrolled 96 members insured for $5,543,218.

Mrs. Diachuk continued her report by providing a preview of her report to the General Assembly. (See story beginning on page 1.)

As regards the UNA's upstate New York resort, she said that the UNA had succeeded in having the valuation of part of the property reduced and therefore the tax will be lower. She also pointed out that prices at Soyuzivka are 30 to 40 percent lower than others in the area and that the UNA's membership discount adds up to losses of between $45,000 and $48,000 per year for the resort. Mrs. Diachuk noted that perhaps the UNA membership discount policy needs to be reviewed.

Speaking of the declining readership of Svoboda, the president noted that in the one-and-a-half-year period since subscription fees were raised, the paper had lost about 2,000 subscribers. Now, however, the drop in subscribers of Svoboda and The Ukrainian Weekly, which also experienced a decline in readers, has stabilized, which may be a good sign.

Mrs. Diachuk then went on to report on the history of the UNA that was written by Dr. Myron B. Kuropas. The book is now ready to be printed; it is a large-format book of 704 pages with an extensive photo section. On her proposal the Executive Committee voted to publish an edition of 1,000 copies of this book.

The UNA recently expanded the scope of its investment committee by creating an advisory financial committee, Mrs. Diachuk said. Its members, who are experts in the field, have met six times in the past year. They have counseled, the UNA to balance its investment portfolio and to include equities in that portfolio.

Finally, Mrs. Diachuk focused on the proposed mergers with the Ukrainian Fraternal Association and the Ukrainian National Aid Association of America. Both have encountered problems that need to be resolved before a merger with the UNA can take place (in the case of the UFA, the sale of the Verkhovyna resort must be accomplished by the owner; in the case of the UNAAA, the UNA is trying to satisfy requirements of regulatory authorities in New Jersey, Pennsylvania and Ontario), however, the president emphasized, both are still on track.

Mrs. Diachuk also pointed out that a most recent letter from the state of New Jersey Department of Banking and Insurance notes that the size of the UNA's loan to the UNURC (the UNA headquarters building) also may jeopardize the proposed mergers. Thus, the president concluded, the UNA must sell its headquarters building.

Auditors conduct semiannual review

The Auditing Committee of the Ukrainian National Association conducted its regular semiannual review of UNA operations on November 4-6 at the UNA Home Office in Jersey City, N.J. The audit was conducted by (from left): Iwan Wynnyk, Anatole Doroshenko, Stefania Hewryk, Stefan Hawrysz (chairman) and William Pastuszek (vice-chairman). The auditors reported their findings at the annual meeting of the UNA General Assembly held at Soyuzivka on November 7-10.

Correction

In the write-up on the UNA New York District Committee meeting (November 3), it was inadvertantly omitted that Olga Liteplo organized two members in 1995. Also, Sam Liteplo was elected program chairman of the committee.