THE UKRAINIAN NATIONAL ASSOCIATION FORUM (10/16/05)

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 September 20-22, 2005, conducted a review of the operations of the Ukrainian National Association for 2004 and the first six months of 2005. The previous audit was conducted on November 16-18, 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

The convention decided to hold the 36th Convention at Soyuzivka. In accordance with this decision, a Convention Committee was established; it has already held two meetings. The committee is planning the next convention of the UNA for May 26-29, 2006.

2. Financial Department

For the 12 months of 2004, the UNA's operating losses were $1,926,000, or $107,000 less than the previous year. For the first six months of 2005 the UNA had operating losses of $504,874, or $487,000 less than in the first six months of 2004.

The UNA Corporate Headquarters building was profitable in 2004 by the sum of $259,000, or $63,000 more than in the previous year. For the first six months of 2005 the profit was $98,000.

The UNA's reserves as of the end of 2004 were $1,036,000 less than in the previous year. They further decreased by $407,000 during the first six months of 2005 and now stand at $4,854,000. The deficit of Soyuzivka and UNA publications contributed to the decrease in the UNA's reserves.

The finances of the UNA were reviewed for 2003 and 2004 by an independent public 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 $56,000 of these unclaimed assets to the appropriate states. Debts are being further analyzed.

3. Organizing Department

In 2004 385 new policies for $8,541,000 of insurance were sold. This number includes 58 policies for the sum of $1,183,000 sold by the Western Catholic Union, which works for us only in the states of Pennsylvania, Ohio and Florida. In view of the favorable percentage rate, the UNA gained 86 annuities accounts totaling $1,850,000.

Evaluating the work of individuals, the following five persons deserve commendations for their work in 2004: Lubov Striletsky who enrolled 20 members insured for $1,881,000; Christine Brodyn, who enrolled 19 members insured for $170,000; Myron Pylypiak, who enrolled 17 members insured for $151,000; Steve Woch, who enrolled 16 members insured for $231,000; and Nina Bilchuk who enrolled 11 members insured for $85,000.

The UNA now has 19 districts in the United States, four districts in Canada, and 200 branches in both countries.

4. UNA Publications, Svoboda and The Ukrainian Weekly

As of the end of 2004, the number of Svoboda subscribers was 6,162; The Ukrainian Weekly subscribers totaled 6,061. In comparison with the end of 2003, the number of Svoboda subscribers decreased by 313, while the number of Weekly subscribers declined by 131. As of the end of June 2005, the number of Svoboda subscribers declined by 154, while the number of Weekly subscribers grew by 31.

The deficit of both publications for the 12 months of 2004 was $244,000, or $83,000 more than in 2003. The deficit of both publications for the first six months of 2005 was $107,000. The increase in the deficit was the result of unusual medical expenses. For purposes of comparison, let us recall that the deficit for the six months of 2004 was $53,000. In accordance with the budget for 2005, the deficit of both publications should not exceed $150,000.

5. Soyuzivka

For the 12 months of 2004, Soyuzivka's losses totaled $620,000. For the first six months of 2004 the deficit was $330,000, after donations totaling $105,000, which lowered the deficit. For the first six months of 2005 Soyuzivka's losses were $227,000 and included only $1,000 in donations.

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 made certain improvements at Soyuzivka and continues to work with a group of experts for the benefit of the guests and Soyuzivka. One of the projects now being studied is the expansion of current hotel facilities and the creation of a conference center in the Main House.

A review of the bookkeeping at Soyuzivka revealed that funds were deposited in the bank an average of two to three weeks after their receipt. Appropriate personnel were notified to deposit funds in a timely fashion.

6. Miscellaneous

For the 12 months of 2004 members of the UNA availed themselves of the ScriptSave program of discounts on medicines, saving an average of 20 percent on 538 prescriptions.

Approximately 9,651 square feet of space is available for rent to outside clients in the UNA headquarters building. The Executive is working on this with a real estate agent.

The UNA faces four lawsuits. The gravity of these suits is difficult to foresee at the present time. It is worth nothing, however, that the UNA is insured in such cases.

For the Auditing Committee:

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

(Translated by The Ukrainian Weekly.)

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