THE UKRAINIAN NATIONAL ASSOCIATION FORUM (02/07/99)

THE UKRAINIAN NATIONAL ASSOCIATION FORUM

Statement and appeal of the UNA Auditing Committee

During the period of November 4-6, 1998, the Auditing Committee, in accordance with the By-Laws of the UNA, conducted a review of the business operations of the Ukrainian National Association from January 1, 1998, through September 30, 1998. The previous Auditing Committee had conducted its last review during the period of March 23-27, 1998.

The Auditing Committee's work encompassed reviewing the implementation of the decisions of the 34th Convention of the UNA, operations of the Financial and Recording departments, publication of The Ukrainian Weekly and Svoboda, and the management of the UNA's vacation resort, Soyuzivka. As a result of its review, the Auditing Committee hereby issues its report.

1. Implementation of resolutions of the 34th UNA Convention

The 34th Regular Convention of the UNA was held on May 15-19, 1998, in Toronto. Convention delegates adopted a series of important decisions in the form of resolutions that were conveyed for implementation to the General Assembly and Executive Committee of the UNA. As of September 30, 1998, the status of that implementation was as follows:

The transformation of the Ukrainian daily Svoboda into a weekly was realized as of July 1, 1998.
Soyuzivka's 1999 season will be shortened to eight months. A convention resolution had stipulated that the 1999 season last only from June 1 through September 15 - with the goal of decreasing expenses. The UNA Executive explained that, having a sufficient number of reservations for wedding receptions and other events in 1999 to cover the operating expenses of Soyuzivka, it was decided to extend the season beyond the period delineated in the convention resolution.
The UNA Executive signed a contract with Scott, Otten, Monroe and Werdann, L.L.C. to conduct a review of business operations of the UNA. In accordance with a convention resolution, this firm also will analyze UNA income and expenses and offer recommendations on possible ways to improve the financial state of the UNA.
The UNA Executive, in accordance with a convention resolution, has conducted negotiations with sculptor Leo Mol about his execution of a bust-monument of His Holiness Patriarch Mstyslav. This monument can be erected at Soyuzivka once the necessary funds, a sum of $15,000, are raised.
In accordance with a convention resolution, all delegates to the 34th Convention voluntarily donated $25 each to the Ukrainian National Foundation that exists under the aegis of the UNA.
As regards mergers of fraternals: delegates to the 34th Convention voted for merger of the UNA with the Ukrainian Fraternal Association. The subsequent convention of the Ukrainian Fraternal Association, which was held soon after the UNA's 34th Convention, decided to reject the proposed merger. The Ukrainian National Aid Association of America adopted a decision to merge with the UNA. Delegates to the 34th Convention voted for the proposed merger of the UNA and the UNAAA. The UNA Executive officially notified the insurance authorities of the state of New Jersey about its intentions to merge with the UNAAA and presented a petition for the appropriate approval. In order to satisfy the requirements of the insurance authorities needed to gain such approval, the UNA Executive prepared and presented financial projections for the next five years: separate projections for the UNA and the UNAAA, as well as a projection for the merged entity. The UNA is awaiting a final decision on the merger of the UNA with the UNAAA from New Jersey's insurance authorities.

2. Financial state of the UNA

For the first nine months of 1998, the report period, the financial deficit of the UNA totaled $876,000. It should be noted that, in comparison with the financial state for the first nine months of 1997, this deficit is lower by $560,000. This is quite positive evidence of the UNA Executive's realization of means aimed at decreasing the deficit and attempts to balance the budget. According to the financial projections prepared by UNA Treasurer Stefan Kaczaraj, the budget will be balanced in the year 2000 if the recommended means are put into effect and if budget forecasts coincide with reality.

The Auditing Committee unanimously supports attempts by the Executive aimed at increasing income and, principally and what is most attainable, decreasing expenses of the Home Office administration. The current financial state of the UNA dictates the necessity of balancing the budget and halting further dipping into the reserves in the next two years.

The UNA Executive reported that most of the space in the new building is already rented. The remainder of space will be rented as of the end of March 1999. In addition, in accordance with the UNA budget for 1999, the space utilized by the UNA Home Office will be decreased by 10,000 square feet and that space also will be rented in the next year.

From the time of the sale of the UNA headquarters building in Jersey City, a sum of $400,000 from the price of the building was placed into an escrow fund to be held by an escrow agent. The escrow fund was set up because of the purchaser's requirement. Determination has to be made on whether the UNA print shop had polluted the environment through the various chemicals used in the printing process. A detailed analysis of the ground beneath the building and surrounding it was conducted by a firm licensed by the state of New Jersey and the results of the analysis will show whether the norms established by the state's Department of Environmental Protection have been maintained. The costs of conducting the analysis will be covered from the aforementioned escrow fund and the remainder of the funds will be returned to the UNA once the analysis is completed and the conditions it stipulates are carried out. These funds are now frozen in the escrow fund; nonetheless they are earning bank interest.

As reported at the 34th Convention, the UNA at the time was enmeshed in two lawsuits. Since the time of the Convention both matters have been resolved. No other lawsuits are pending.

3. Svoboda and The Ukrainian Weekly

As of the end of September 1998 the number of Svoboda subscribers was 7,441, while The Ukrainian Weekly subscribers numbered 7,037. In comparison with the end of 1997, the number of subscribers to Svoboda decreased by 246 and The Weekly by 161. It should be noted that during the third quarter of 1998, that is, from the time Svoboda became a weekly, the number of subscribers has begun to increase.

The editorial staffs of both newspapers and the administration have put into effect a plan to stem the drop in subscribers, to improve the contents of the newspapers and to attract new subscribers. As a result of these actions, as well as the transformation of Svoboda from a daily to a weekly, the deficit of both publications for 1998 was decreased to $300,000 in 1998 and $100,000 in 1999. It is foreseen that during the next two to three years the bottom line of both publications will be transformed from deficient to profitable.

As of the end of June 1998 the editor-in-chief of Svoboda, Zenon Snylyk, retired. As of the beginning of September 1998 Raissa Galechko was hired as the editor-in-chief of Svoboda. The UNA print shop was sold in April 1998.

4. Organizing Department

During the report period of January 1 through September 30, 1998, 574 new members insured for $8,649,533 were enrolled. During the same period in 1997 644 new members insured for $18,853,737 were enrolled.

Reviewing the work of the UNA's professional organizers, statistics show that nine professional organizers in the U.S. enrolled 74 new members insured for $1,677,446 during the report period, and nine Canadian organizers during the same period enrolled 53 new members insured for $3,274,987.

During the report period 13 branches of the UNA changed secretaries; four branches of the UNA were merged with other branches due to a lack of new secretaries.

In order to improve the level of service and to meet technical requirements associated with the approaching year 2000, the UNA acquired a new computer system that will be introduced on January 1, 1999.

Reporting about the work of professional organizers in Canada, it should be noted that the director of insurance sales training, Robert Cook, continues to work in accordance with his contract. The Auditing Committee once again recommends that the UNA office in Toronto be closed and that the contract with Mr. Cook be terminated.

The Auditing Committee appeals not only to members of the UNA, but also to the entire patriotic Ukrainian community to become readers of Svoboda for the price of 77 cents per week. The Auditing Committee also appeals to the young generation, young married couples and professionals to become subscribers to The Ukrainian Weekly - considered to be the best English-language ethnic newspaper in North America.

The Auditing Committee calls on the officers of districts and branches to see to it that all UNA branches enroll new members by the end of the year. The Auditing Committee reminds delegates to the 34th Convention about the appeal by UNA President Ulana Diachuk that they pledge to enroll 10 new members by the end of the year. Let us realize this goal.

For the Auditing Committee:

William Pastuszek, chairman
Stefan Hawrysz, vice-chairman
Dr. Alexander Serafyn, secretary
Yaroslav Zaviysky, member
Myron Groch, member

Young UNA'ers

Nicholas Andrew Topolnycky, 2 1/2, and Alicia Christine Topolnycky, 4 months, children of Dr. Andrew E. Topolnycky and June Prosser-Topolnycky of Grand Isle, Vt., are new members of UNA Branch 360. They were enrolled by their parents.
Irene and Andrey Mikhalyuk, children of Igor and Oksana Mikhalyuk, are new members of UNA Branch 277 in Hartford, Conn. They were enrolled by their parents.

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