COUNCIL ON FINANCE AND ADMINISTRATION Part I The Council on Finance and Administration recommends: 1.

That the base compensation of the District Superintendents in 2009 will represent a 3% increase from 2008. 2. That the approved travel expense for staff and members of councils, boards, committees and other entities of the Conference be reimbursed at the maximum amount allowed by the Internal Revenue Service. 3. That the amount of the budget apportioned to the churches be 100% of the budget adopted by Annual Conference. 4. That the expenses for at-large members of Annual Conference be reimbursed at a rate of $100 per day, plus mileage, as outlined in the Conference policy #44. 5. That the housing allowance designations for conference staff pursuant to Internal Revenue Code Section 107 be ratified for 2008 and approved for 2009 as provided in Part III. Part II One of the chief responsibilities of the Council on Finance and Administration is to recommend a budget to fund the various programs and ministries of the Tennessee Conference for the coming year. It is a privilege for the members of the Council to work hand-in-hand with these Conference entities to find ways to serve Christ in the world. This year the Council on Finance and Administration recommends that the 2009 budget be set at $14,236,030, which represents a 2.99% increase over the 2008 budget. The churches of the Tennessee Conference contributed $11,962,697 in 2007 in connectional ministry funds. This amount represented 89.16% of the Conference budget. We are especially grateful for those churches that gave 100% of their fair share of this budget. We strongly encourage pastors and lay members to share the stories of the ministries and programs of our Conference with their local congregations and help create a culture of support for these ministries within their settings. One of the goals set by the Council four years ago was to increase the contingency fund to help ensure the financial viability of the Conference. Due to circumstances beyond our control this fund had all but disappeared. The General Council on Finance and Administration recommends that Conferences maintain a reserve amount between 5% and 10% of the budget. At the writing of this report, our reserve has grown to approximately $450,000. We are grateful for the progress that we have made in this regard. This past year has been a difficult one for the members of the Conference and the Council on Finance and Administration. Together we continue to grieve over the untimely death of our friend and colleague, Reverend David Hawkins, the Director of Administrative Services. David brought many gifts and graces to this leadership position in our Conference; he served with integrity, a heart dedicated to Christ, a love for the church, and a compassion for others in need.

We are grateful for the support of the Administrative Services staff during this time of loss and transition. Melinda Parker and Nancy Pearson went beyond the call of duty to keep the office running smoothly and to ensure that the fiscal needs of our Conference were being served during this difficult time. We are thankful for all they do for the members of the Tennessee Conference. At the beginning of 2008 the members of CCF&A welcomed Jim Allen as the new Director of Administrative Services. Jim, an active lay member of Blakemore United Methodist Church, comes to us with a wealth of knowledge having served as chief legal counsel with GCFA. We feel confident that his leadership in our Conference will be an asset to our many future endeavors. We are grateful for our partnership with the leaders and members of the Board of Pensions during this transition of leadership. As we come to the end of a quadrennium, we welcome new members and leaders to the Council on Finance and Administration. We will keep them in our prayers as they lead us over the next four years. And we will remember that the work of CCFA is the work of every church, every lay and clergy Conference member, every program, every ministry, every board, council and agency. We work together to fulfill the purposes of God in this world. Respectfully submitted, Ken Edwards, President

Part III Internal Revenue Code §107 Housing Allowance Designations for 2008-2009 (Note: table does not include value of parsonage)
Utilities Clarksville DS Columbia DS Cookeville DS Cumberland DS Murfreesboro DS Nashville DS Pulaski DS Assistant to the Bishop Director, Nashville Area UM Foundation Director of Connectional Ministries Director of Ministerial Services Associate Director of Connectional Ministries Director of Nurture Ministries Director of Love and Justice Ministries Director of Hispanic/Latino Academia Coordinator of Information Technology 3,600 10,000 5,000 7,500 1,000 10,000 10,000 10,000 10,000 6,000 10,000 3,000 0 9,000 6,500 10,000 Residence 13,681 Parsonage 18,000 Parsonage 15,000 18,000 Parsonage 20,305 20,305 18,600 18,201 13,000 11,000 11,000 15,000 28,330 Total Designation 17,281 10,000 23,000 7,500 16,000 28,000 10,000 30,305 30,305 24,600 28,201 16,000 11,000 20,000 21,500 38,330

Part IV 2009 CF&A Budget Proposal
11 12 13 14 15 21 22 23 24 Clergy Pensions Clergy Health Plan District Superintendents Fund * Episcopal Fund Equitable Compensation Interdenominational Co-operation General Administration Jurisdictional Administration Conference Administration Conference Session Conference Secretary Journal Committee Assistant to the Bishop Administrative Services Episcopal Residence Liability Insurance Episcopal Office General Conf Delegate Expense Contingency Fund Connectional Ministries World Service Ministerial Education Black College Africa University Miriam's Promise Archives and History Board of Ordained Ministry Higher Ed/Campus Ministry Congregational Development Conference HQ Building Martin Methodist College McKendree Village Religion and Race Status and Role of Women Lake Junaluska Clergy Effectiveness Camping and Outdoor Ministries Board of Laity 2,652,000 3,972,232 798,250 316,134 300,000 31,030 106,414 84,216 657,340 (79,675) (2,500) (26,500) (62,728) (193,137) (6,000) (60,000) (46,800) (5,000) (175,000) 1,102,282 1,208,832 392,874 156,441 34,547 110,750 65,100 178,112 675,460 330,000 56,600 625,000 223,431 9,400 4,335 26,250 5,000 90,000 24,000 14,236,030

30 31 32 33 34 51 52 53 54 55 56 58 59 60 61 62 63 64 65