|
May 17, 2019
PRESIDENT’S MESSAGE
Grace Hollett, CFUW National President
Greetings CFUW Members,
It has been a pleasure during the period since March 24th to meet with you at Regional and Provincial Councils and at Club events. I thank you for your welcome and your generous hospitality!
At those meetings we discussed current CFUW issues and I encouraged members to send the Board any additional questions and comments and the purpose of this correspondence is to provide response and commentary to those inquiries that were of a financial nature. The financial responses were written primarily by the VP Finance and her committee and received input from the Board.
I am asking Club Presidents to please forward this full correspondence to all their members.
Grace Hollett
National President-Presidénte Nationale
CFUW-FCFDU
Member Question #1. The Winnipeg Motion failed at the CFUW 2018 AGM. Why is it being presented again?
A failed motion can be renewed at any subsequent meeting session. See RONR 11th ed., p. 337, ll.22-27n
Member Question #2. Timing: The three motions were sent to members at the last possible moment under our by-laws and regulations. This allowed only 15 days for members to have discussions, research, evaluate and consider the motions and suggest possible amendments. This was totally inadequate.
Our national Parliamentarian advises the following:
All 3 motions are subject to amendment on the floor of the AGM.
- Amendments must be germane—that is related to the topic of the motion.
- Amendments must be within the scope of the notice.
-
Amendments that are in order include:
- A motion to amend Clause 1 of the Winnipeg motion to a number that is between $48 and $55.
- A motion to amend Clause 2 related to payment of GWI dues.
- A motion to amend Clause 3 related to collection of CFUW dues.
- A motion to amend Finance Motion number one to an amount that is between $0 and $6.
- A motion to amend Finance Motion number two to an amount that is between $0 and $10.
- A motion to Separate the Winnipeg Motion is in order on the floor of the AGM.
All clubs still have the means to call a special meeting prior to the August AGM.
Member Question #3. Many members are not clear on what we owe GWI. What is the amount?
At the end of each fiscal year, following an audit, and as part of our AGM documentation, CFUW provides full financial reporting in the Annual Finance book. In addition, following our Board meetings, monthly financial reports are posted on CFUW members website.This is part of our mandate for full financial transparency. Prior to the start of our negotiation discussion with GWI, the outstanding balance owed to GWI, (which represents the uncollected portion of dues). Balance for 2018 ~$50,544 CDN, Balance for 2019 $63,764 CDN , For a total of $114,208 CDN. All money collected for GWI, in dues, donations and voluntary dues have been forwarded to GWI.
Member Question #4. Article 4 in the CFUW Bylaws states we are members of GWI, and therefore obligated to pay the GWI dues. Why do we have this outstanding debt?
The unpaid balance represents the uncollected dues.The GWI Debt payable amount stated in the financial booklet is the amount the CFUW Membership owes. Payments for GWi dues are derived from a defined portion of the CFUW $70 fees we collect. The defined portion remains 15.5CHF and will remain so until the CFUW voting body agrees to increase it. The 2nd motion the finance committee submitted for approval at our 2019, ($10 for GWI) once again tries to bring parity to what GWI invoices us and what we can pay them. The CFUW Board is guided by the 2/3 majority vote when it comes to financial motions. Until such time as the voting body approves the parallel amount, we are bound to 15.5CHF.
Member Question #5. Why were the financial motions separated?
Full transparency and additional clarity was the goal in putting forth 2 motions.
CFUW cannot pay what we haven’t collected for GWI dues. We must bring parity to what our members pay for GWI dues and what GWI invoices us. ( 15.5 CHF vs 21.5CHF). The second financial motion tries to highlight that.
The Article and Bylaws Chair as well as our Parliamentarian confirmed both motions were in order.
Member Question #6. We understand that negotiations between CFUW and GWI are still ongoing after 10 months but members have had no reports on their progress. Why?
Negotiations are normally confidential until full agreement is reached and both parties agree to full disclosure.
Member Question #7. CFUW dues increases occurred regularly in the past with the most recent being in 2013. That year dues increased by $10 of which $3.00 was to cover an expected dues increase by IFUW (now GWI). The IFUW dues increase did not occur and instead of putting the IFUW funds into trust for future, did CFUW use the funds for other purposes?
The 2012 CFUW AGM minutes do not substantiate this claim.The rationale of the dues motion presented by then VP Carole Hare, also does not support this claim. We are attaching the 2012 CFUW AGM Minutes to this bulletin.
Member Question #8. Please provide a full accounting history of just what CFUW has collected to cover GWI payments.
The Annual Audited Financial reports have provided this information. The records are on our website.
Additional information:
When a CFUW dues increase is proposed it is based on 1)the cost of operating CFUW, 2) the IFUW/GWI per capita amount in Swiss francs and 3) the annual exchange rate at the time of the proposal.
History of CFUW dues increase:
- In 2005 CFUW adopted that dues be increased by $5 for each of the next 3 years. Included was an increase in IFUW dues to 15.5CHF (Swiss Francs). At time of adoption, the exchange rate was 0.96 CHF to $1 CAD (Canadian Dollar).Implemented in 2006. CFUW dues of $60 began in 2009.
- Adopted in 2012 and implemented in 2014, that CFUW increase dues by $10. At time of adoption the exchange rate was 1.11 CHF to $1 CAD. As stated earlier, the rational for increase did not include the expectation of an IFUW dues increase.Then CFUW VP Finance Carol Hare stated that the proposed increase was related to fluctuations in the Swiss Franc, the cost of relocating the CFUW national office and other unanticipated expenses.
Explanation of the the actual cost to CFUW. GWI dues collected vs. GWI dues paid
Fluctuations in the exchange rat, mean that the amount paid for GWI per Capita Dues generally exceeds the amount collected. From 2012-2018, the total combined shortfall between dues collected and dues paid, totaled more than $200,000 CAD. CFUW Dues are established based on the amount required to cover CFUW expenses and GWI dues, based on the cost of living and the exchange rate for the year the dues amount are adopted. The collection basis for the GWI dues remains the same until the next dues increase regardless of the exchange rate at the time the dues are paid. Annual shortfalls between the amount of GWI dues collected and those paid out have been absorbed in the CFUW operating budget.
In other words, the CFUW operating budget has been subsidizing the unfavorable currency fluctuations. These shortfalls are over and above the shortfalls caused by the implementation of a 6CHF increase to GWI dues that took effect on January 1, 2018.
|
Year
|
Exchange rate basis of collection
|
Exchange rate paid
|
Collected
|
Paid Out
|
Due to GWI
|
Annual shortfall subsidized by CFUW
|
|
2012-13
|
.96
|
1.1
|
$126,584
|
$142,257
|
142,257
|
$15,673
|
|
2013-14
|
.96
|
1.24
|
$127,536
|
$152,836
|
152,836
|
$25,300
|
|
2014-15
|
1.1
|
1.29
|
145,266
|
$159,446
|
159,446
|
$14180
|
|
2015-16
|
1.1
|
1.34
|
143,885
|
$172,697
|
172,697
|
$28,812
|
|
2016-17
|
1.1
|
1.34
|
142,674
|
$176,143
|
176,143
|
$33,469
|
|
2017-18
|
1.1
|
1.36
|
138,002
|
$170,380
|
236669
|
$98666*
|
*$10435 of the 2017-18 shortfall was funded by voluntary donations to CFUW. All donations were forwarded to GWI in payment of per capita dues.
Member Question #9. How is the GWI fee portion handled by National when collected?
Each fiscal year 100% of what CFUW collects from CFUW members for GWI is sent to GWI. This includes voluntary dues sent to us by a few clubs, as well as donations by individual members. Again, all financial information is provided in the annual audited financial booklets.The annual finance reports can be found on our website. Each club also receives a copy each year as part of the AGM package. This provides full transparency. We post our monthly financial reports on our website as well.
Member Question #10. Why do we have an outstanding debt?
Payments for GWI dues are derived from a defined portion of the Cfuw $70 fees we collect. The defined portion remains 15.5CHF and will remain so until the voting body agrees to increase it. The problem has been that since GWI increased their dues by 6CHF for a total of 21.5CHF, CFUW has not received the mandate from its members to collect the difference. The CFUW board is guided by the 2/3 majority vote when it comes to financial motions. Until such time the voting body approves the parallel amount, we are bound to pay 15.5CHF per capita, even though GWI has invoiced us 21.5CHF per capita for 2018 and 2019.
Member Question #11. Why did CFUW set up a Revenue Generating Committee
The overall financial outlook of CFUW has weakened over the years. The main reasons are:
1.decreased membership
2.our investments do not bring in the type of interests we enjoyed during boom market years
3. the shortfall caused by currency fluctuations demonstrated in the graph
in #8)
4. we have failed to keep up with inflation
New sources of income are needed if CFUW is to maintain its
current national programs, services and advocacy role. In
addition, we are taking into consideration that even if the motion
to increase the GWI dues passes, this will only bring parity for
GWI dues moving forward. Additional income is needed to clear the
past debt.
Member Question #12. Last year CFUW asked clubs to send in voluntary dues for GWI. Was that successful?
CFUW did not ask Clubs to do that. CFUW responded to a request from a member that the office be authorized to forward to GWI any voluntary funds from members. 10 clubs participated and CFUW was able to collect 15% of the outstanding debt. All was sent to GWI.
Member Question #13. Why are we not using our restricted reserve to clear the debt?
The CFUW board members take our fiduciary responsibility very seriously and we will continue to adhere to the financial standards, rules, and recommendations regarding restricted reserves.
The restricted reserve is $237,000 which reflects the minimum amount that “net assets” should not go below to ensure the organization can meet future obligations and cover expenses should the organization have to shut down or in case it has an emergency, such as a catastrophic fire.
Member Question #14. What about using our unrestricted amount?
CFUW presented a deficit budget last year, and will again for the 2019-2020 fiscal year. In addition The centennial AGM is proving to be more expensive than originally budgeted. This will greatly affect our unrestricted reserve.
Member Question #15. What order will the motions be presented in Winnipeg?
The order of the motions will be
1. The Winnipeg motion
2. The 6$ increase for CFUW motion
3. The $10 increase for GWI
Should the Winnipeg motion fail, we proceed to vote on the 2 Finance motions:
Should the Winnipeg motion pass, there will be no need to vote on the 2 finance motions because the Winnipeg motion incorporates the $6 increase by stating the CFUW fee will be $55, which is $6 over what you are paying now for CFUW. In addition, it says those who wish to pay the GWI fee will do so at the current GWI due, which is 21.5CHF.
Presently of the $70 CFUW dues only 15.5 CHF is defined for GWI. So again, the Winnipeg motions incorporate an increase.
|
