THE UKRAINIAN NATIONAL ASSOCIATION FORUM
Report of the Auditing Committee of the Ukrainian National Association
The Auditing Committee of the Ukrainian National Association, composed of Stefan Hawrysz, William Pastuszek, Stefania Hewryk, Anatole Doroshenko and Iwan Wynnyk, in accordance with its duties as delineated in the UNA By-Laws, on March 23-27 conducted a review of UNA assets and operations for 1997.
As a result of the review, the Auditing Committee states the following: the report period was especially significant for the UNA as it was marked by serious changes, i.e., during this time the 15-story UNA headquarters building was sold for $21.2 million. During the same year the UNA purchased a two-story office building in Parsippany, N.J., for $4,931,250. To that sum one must add $1,200,000 to cover the build-out of office space for UNA employees as well as for the space being rented to various tenants.
Reporting on the sale of the UNA building in Jersey City, it is the responsibility of the Auditing Committee to inform UNA'ers that during the past several years the building had deficits, and that the greatest loss occurred in 1996 when the deficit rose to $1,142,923. The deficit was covered at the expense of the reserves, which as of January 1, 1997, totaled $6,530,660.
Speaking of the reserves, the sale of the building returned $5,262,970 to the reserves; thus, as of December 31, 1997, the UNA's reserves totaled $9,559,299.
Organizing Department
The work of this department is overseen by President Ulana Diachuk. Analyzing the work of this, one of the most important divisions of the UNA, we see that new members are the guarantee of the growth of our institution, since the more new members we enroll, the higher the amount of membership dues received - and these are the financial barometer of the UNA's income.
Statistics show that during the report period, the pre-convention year of 1997, 944 new members were enrolled in the United States and Canada, insured for a total of $26,652,936. It should also be noted that during the previous year 859 new members were enrolled for only $18,002,572 of insurance.
Speaking of new members, six professional salespersons in the United States enrolled 183 new members insured for $5,341,725 and collected $315,906 in premiums for annuities. At the same time, Canada's professional sales staff, 17 persons working under the supervision of Director of Insurance Sales Robert Cook, signed up 165 members insured for $16,518,771.
Summarizing organizing activity in Canada and the amount received in dues from new members, and taking into account the commissions paid on policies sold by professional salespersons, the costs of renting office space and the salaries of office workers and that of Mr. Cook, these expenses are frightening.
The Executive Committee had great hopes for Canada, having a professional director of insurance sales, Mr. Cook. However, during the report period only 208 new members were enrolled: 180 in Toronto, 20 in Montreal, seven in Niagara and one in the west.
Regardless of the fact that organizing activity during the report period did not meet expectations, we cannot fail to mention our hard-working branch secretaries, who once again significantly contributed to the number of new members enrolled. They and other branch officers, who always were the foundation of the UNA, continue in that role in keeping with their abilities.
Nor can we fail to note that during the pre-convention year the traditional campaign to enroll new members was neglected; evidence of that is the fact that 106 UNA branches did not enroll a single member.
Recording Department
All the work of this department is directed by Secretary Martha Lysko, whose duties include the review of membership applications and issuance of insurance certificates, as well as the safekeeping of important UNA documents and the minutes of UNA conventions, and preparation of the minutes of General Assembly and Executive Committee meetings.
Another important function of the secretary is to maintain contacts with branch secretaries, provide professional advice and at the same time encourage them to enroll new members. It is very important to prepare monthly mailings of individual letters to secretaries who have enrolled members, and to offer words encouraging them to continue their organizing activity and thus become members of the UNA Champions Club, established decades ago. This, however, was not done.
During the report period the program of merging branches continued when there was a need to do so, especially when there were vacancies due to death or illness. This was the proper thing to do. But, when there is a need to merge branches, information should have been obtained from the chairpersons of the appropriate UNA district committees or members of the General Assembly from the given area. Who knows better the situation on the ground? The local district chairperson, or the Home Office? Unfortunately, this was not done.
UNA publications: Svoboda, The Ukrainian Weekly
We should mention the role of UNA publications with respect and commendation; after all, they serve a vital informational role, maintaining contacts with Ukrainian communities in various countries, as well as with Ukraine, where these publications have now been read for seven years. When speaking of The Ukrainian Weekly, we should note that it is considered to be the best English-language ethnic newspaper in North America.
Unfortunately, a small percentage of Ukrainians in the U.S. and Canada value the UNA's publications. Proof of this is seen in the fact that during the report period Svoboda lost 576 subscribers, while The Weekly lost 353. At the same time, the publications' deficit rose to $488,162.
The Soyuzivka estate
As always, Soyuzivka played the role of a Ukrainian cultural center hosting the best performers - both from the Western diaspora and Ukraine. Lately Soyuzivka has become popular for weddings and that is why nearly all weekends are booked by young couples, most of whom, fortunately, are of Ukrainian descent. It is laudable that the number of our youngest campers - the 4- to 6-year-olds who participate in the Plast Pre-Schoolers' Day Camp known as "Tabir Ptashat" - has increased each year. They arrive at the resort with their parents and grandparents who take care of them.
When speaking about the financial management of the resort, however, we must state that the UNA continues to cover a serious deficit because the resort's annual income does not cover expenditures. Evidence of this is seen in the following figures: in 1997 income totaled $1,327,419, while disbursements were $1,874,004; thus, the deficit was $546,585.
Analyzing the work of the Soyuzivka administration, we must state that the manager, John A. Flis, is doing everything possible to avoid this serious deficit. Unfortunately, expenses to upkeep the resort, principally for necessary repairs and renovations, and higher taxes are the reason for this deficit.
Observations
The Auditing Committee is duty-bound to give its observations - both positive and negative - regarding the work of the Executive Committee.
1. The Auditing Committee is troubled by the fact that the Executive Committee did not consider the ramifications of the five-year contract signed in November 1996 with Director of Insurance Operations Robert Cook, whose annual salary is more than $100,000. The contract does not specify the requirements of his job.
2. The Auditing Committee is obligated to report on the deficit-laden financial management of Canadian operations during the past four years. The facts are seen in the figures below.
Income: 1994 - $5,578; 1995 - $50,541; 1996 - $59,259; 1997 - $129,245.
Disbursements: 1994 - $320,562; 1995 - $449,536; 1996 - $595,269; 1997 - $541,334.
Deficit: 1994 - $ 314,984; 1994 - $399,022, 1996 - $536,010; 1997 - $412,089.
3. The four-year financial statement of the Toronto Sales Office shows a deficit of $1,662,105 (Canadian).
4. It should be noted that the costs of maintaining the Toronto Sales Office are frightening. The following are the figures for rent alone: 1995 - $ 35,893; 1996 - $58,599.08; 1997 - $55,215.84; a total of $149,707.92. To this one must add the salaries of employees and other expenses, which add another $200,000 in disbursements.
Mergers with other fraternals
The Auditing Committee unanimously supports the mergers of three fraternal organizations, that is, the Ukrainian Fraternal Association and the Ukrainian National Aid Association of America with the Ukrainian National Association under the name "Ukrainian National Fraternal Association."
We are witnesses to mergers of banks, manufacturers and institutions reported on an almost daily basis by our press. No one in those cases asks what the new entity will be called after the merger; they focus on the future of the merged entity.
We must have vision, and we must ask what will be the fate of our fraternal organizations. Will we be able to continue our work with annual losses of 2,000 to 3,000 members and annual deficits of $2 million to $3 million from our reserves? No. We need one administration, not two; with rational financial management, this will save us more than $1 million annually.
The Auditing Committee calls on the patriotic Ukrainian communities of the United States and Canada to continue to support - morally and, even more importantly, financially - efforts to buttress the independence and sovereignty of the Ukrainian state.
Copyright © The Ukrainian Weekly, May 31, 1998, No. 22, Vol. LXVI
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