the book of discipline and the local church talk to chinese annual conference 3 july 2010
TRANSCRIPT
THE BOOK OF DISCIPLINEAND THE LOCAL CHURCH
Talk to
CHINESE ANNUAL CONFERENCE
3 July 2010
SIGNIFICANT CHANGES IN BOD – LARGELY TO IMPROVE GOVERNANCE :
Why?
Charity Sector Scandals (NKF 2005) attracted public attention & greater Government scrutiny
Civil Servant made 1st full-time Commissioner of Charities (“COC”) with increased supervision
New Charity Council issued CODE OF GOVERNANCE For Charities & IPCs in Nov 2007 (“COG”) [being reviewed in 2010]
COG applicable to religious groups (though derived from corporate governance model)
EVALUATION CHECKLIST (“EC”) – annual submission to COC required
The BOD & Local Churches 2
FUNDAMENTAL PRINCIPLES:
Every Charity owes obligations to its stakeholders
Charity’s Governing Body [IN LOCAL CHURCH – THE LCEC] must discharge these obligations– #1 Duty to Act Honestly– #2 Transparency of Decision-Making– #3 Accountability for Decisions
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NOT ENOUGH JUST TO “FOLLOW THE RULES”
Everyone must always try to up-hold underlying principles Don’t act like the Pharisees! Always try to do the right thing, the proper way [principle:
ACT HONESTLY] When we make mistakes, own up
[principle: ACCOUNTABILITY] Never cover up! [principle: TRANSPARENCY] HONESTY & ACCOUNTABILITY often requires some
INDEPENDENCE
The BOD & Local Churches 4
LOCAL CHURCH STRUCTURE
Local Conference has general oversight over LCEC ¶147.1 [ akin to the “General Meeting” ]
Local Conference mbs (besides LCEC): ¶146.2– local preachers– diaconal ministers– honorary stewards (no vote unless elected to LCEC positions)– retired ordained ministers holding mbship– ministers under voluntary location– PPRSC chairperson
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Local Conference DIFFERENT FROM LCEC Chaired by: o District Superintendent or
o Elder designated by DS ¶146.4(principles: ACCOUNTABILITY, INDEPENDENCE)
DS has final authority to decide all questions of law submitted in writing, subject to appeal to President at next Annual Conference ¶552.15 & ¶707.4
(principle: ACCOUNTABILITY)
Notice of Local Conference: ¶146.7 14 days notice by pulpit announcement, weekly
bulletin, local church publication or mail (at least 2 of these modes)
(principle: TRANSPARENCY)
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Local Conference at least twice each year ¶146.3
Special Sessions ¶146.6
only if called – by DS (after consulting Pastor i/c)– by Pastor(s) with written consent from DS
(principles: ACCOUNTABILITY, INDEPENDENCE) Purpose must be stated in Call
(principle: TRANSPARENCY) Only business in harmony with Call to be transacted
(principles: TRANSPARENCY, ACCOUNTABILITY)
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Church Conference ¶148instead of Local Conference
Purpose: to encourage broader participation by church members
Called:Only when authorised by DS (maybe after written
request from Local Conference)
(principles: TRANSPARENCY, ACCOUNTABILITY, INDEPENDENCE)
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LOCAL CONFERENCE & MAJOR CHURCH BUILDING PROJECTS
Local Conference approval required for major projects (eg. church building, extensions, purchases) ¶411
unless ¶411.3 a) exception applies
(below 10% ave p.a.income over last 3 years)
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CHANGES TO DISCIPLINE AFFECTING LCECs #1 TERM LIMITS
TERM LIMITS (principle: ACCOUNTABILITY) : Local Conference has general authority to establish term limits
¶147.6 (read with COG 1.1.6 “Board Renewal”) Compulsory term limits for:
– Church treasurer ¶149.1 e) read with EC Q.3 (COG 1.1.6)– Finance Comm Chairperson ¶149.1 f) read with EC Q.3 (COG
1.1.6)– Governance Comm Chairperson* ¶149.1 i) read with EC Q.3
(COG 1.1.6) (new position)TERM LIMITS balanced by having understudies– LCEC must have Vice-Chair, can have more than one ¶153.4– Asst Treasurer, Finance Comm Vice-Chair (new positions) ¶149.1
e) & f)
CHANGES TO DISCIPLINE AFFECTING LCECs #2 MEMBERSHIP
COMPULSORY LCEC MEMBERSHIP FOR ALL PROGRAMME CHAIRS
(principles: ACCOUNTABILITY, TRANSPARENCY)Missions, Outreach & Social Concerns, Witness & Evangelism, Worship & Music, Disciple & Nuture Chairs must be LCEC members
¶149.1 j) & 153.1 k) read with EC Q.4 (COG 1.2.1) EMPLOYED PROFESSIONAL & MINISTRY STAFF MAY BE
LCEC MEMBERS WITHOUT VOTE BUT CANNOT SERVE AS LCEC CHAIR
¶153.3 read with EC Q.2 (COG 1.1.2)(principles: ACCOUNTABILITY, TRANSPARENCY, INDEPENDENCE)
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CHANGES TO DISCIPLINE AFFECTING LCECs #3 ACTING IN CONCERT
LCEC TO ACT IN CONCERT WITH FINANCE COM & OTHER COMMITTEES:
TO ENSURE OVERSIGHT OF KEY AREAS OF GOVERNANCE & OPERATIONS
UNDER DOCUMENTED TERMS OF REFERENCE (principles: HONESTY, ACCOUNTABILITY, TRANSPARENCY)
¶152 read with EC Q.4 (COG 1.2.1) :
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CHANGES TO DISCIPLINE AFFECTING LCECs #4 QUORUM
LCEC QUORUM: MINIMUM ONE-THIRD
¶152.3 read with COG 1.3.2
(principle: ACCOUNTABILITY)
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CHANGES TO DISCIPLINE AFFECTING LCECs #5 ATTENDANCE
REGULAR ATTENDANCE: THREE CONSECUTIVE ABSENCES W/O
ACCEPTABLE REASON CREATES VACANCY
¶307.5 read with COG 1.3.3)
(principle: ACCOUNTABILITY)
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CHANGES TO DISCIPLINE AFFECTING LCECs #6 MINUTES
LCEC MINUTES MUST BE KEPT & CIRCULATED TO ALL LCEC MEMBERS “AS SOON AS PRACTICABLE”
¶152.5 read with COG 1.3.1)
(principles : ACCOUNTABILITY, TRANSPARENCY)
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CHANGES TO DISCIPLINE AFFECTING LCECs #7 QUALIFICATIONS
CHURCH TREASURER QUALIFICATIONS:
PREFERRED (NOT MANDATORY) TO HAVE relevant accounting qualification OR appropriate financial literacy OR appropriate practical experience
(previous service as Asst Treasurer?)(principle: ACCOUNTABILITY)
¶153.1 g) read with COG 1.1.9The BOD & Local Churches 16
CHANGES TO DISCIPLINE AFFECTING LCECs #8 ANNUAL REPORT
LCEC MUST MAKE ANNUAL REPORT OF ITS DECISIONS TO LAST LOCAL CONFERENCE
(principles: TRANSPARENCY, ACCOUNTABILITY)
¶154.12 read with EC Q.14 (COG 8.1.1)
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CHANGES TO DISCIPLINE AFFECTING LCECs #9 GOVERNANCE COMMITTEE
CHURCH GOVERNANCE COMMITTEE CREATED ¶170.6 read with EC Q.4 (COG 1.2.1)
performs functions similar to an Audit Committee in corporate governance context
amenable to LC, not to LCEC
(principles: ACCOUNTABILITY, INDEPENDENCE) Gov Comm Chair a mb of LCEC
(principle: TRANSPARENCY) Gov Comm Chair & all mbs cannot be Church Treasurer or
Finance Comm Chair (principle: INDEPENDENCE) should majority of Gov Comm not sit in LCEC?
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CHURCH GOVERNANCE COMMITTEE
not “superior” to LCEC doesn’t “second-guess” LCEC monitors, reviews processes especially
– financial issues– interested person transactions
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SUMMARY
EVERYONE MUST PLAY A PART
TRY TO KNOW THE RULES …
BUT ALWAYS KEEP TO THE PRINCIPLES!
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ALWAYS KEEP THE PRINCIPLES!
Try to do the right thing, the proper way [principle: ACT HONESTLY]
When we make mistakes, own up
[principle: ACCOUNTABILITY] Never cover up!
[principle: TRANSPARENCY] Remember:HONESTY & ACCOUNTABILITY
often requires some INDEPENDENCE
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