Working Policy101GCWP101

2012 Syllabus

Working Policy101

SYLLABUS

GCWP101 – Introduction to Working Policy

Class Time – October 15, 2012 from 9:00-11:00 am

Class Location – General Conference Auditorium

Instructors – G T Ng, PhD assisted by five Professors

Textbook – General Conference Working Policy 2011-12

Course descriptionGCWP101 is an introductory course providing an overview of the General Conference Working Policy. Guest experts will explain the organization and structure of Working Policy. The uses and place of Working Policy in the life of the Church will be demonstrated through skits and dialogue.

Course outlineIntroduction “It’s in the Book”

Overview of Working PolicyOrganization and Administration –

Professor Lowell Cooper, MDiv, MPH

Departments and Agencies – Professor David Trim, PhD

Ministry and Training – Professor Jonas Arrais, DMin

IDE Policies – Professor Rosa Banks, EdD

Financial Policies – Professor Daisy Orion, MHA

Course objectivesUpon successful completion of this

course the student will:1. Understand the organization and

structure of Working Policy.2. Be able to locate needed

information in Working Policy.3. Appreciate the value of Working

Policy for church life.

Course requirements4. Class attendance is essential for

this course – 50% of the grade.5. Learning will be tested by five

quizzes – 50% of the grade.A complete set of resources for this class can be downloaded from:

http://www.leadershipdevelopment.adventist.org/curriculums/presidential2

Working Policy101

IDE PoliciesIllustration – Missionary ConcernsOverview – Professor Rosa BanksQuiz – Professor G T Ng

Financial PoliciesIllustration – Creative InvestmentsOverview – Professor Daisy OrionQuiz – Professor G T Ng

Questions and Answers

Conclusion

Report Cards

PROGRAM

Introduction

Scene One – Who produces Working PolicyScene Two – Working Policy is not a BibleScene Three – Uses of Working Policy

Overview of GC Working Policy

Organization and AdministrationIllustration – Dividing UnionsOverview – Professor Lowell CooperQuiz – Professor G T Ng

Departments and AgenciesIllustration – Dual CredentialsOverview – Professor David TrimQuiz – Professor G T Ng

Ministry and TrainingIllustration – Pastoral EducationOverview – Professor Jonas ArraisQuiz – Professor G T Ng

Working Policy101

IT’S IN THE BOOK

Scene 1

An Adventist Book Center, Friday afternoon

Working Policy101

IT’S IN THE BOOK

Scene 2

Friday night, a small group opening Sabbath

Working Policy101

IT’S IN THE BOOK

Scene 3

A Saturday night party, ten days later

Working Policy101

ORGANIZATIONAND

ADMINISTRATION

Professor Lowell Cooper

Working Policy101

“WHAT’S IN THE POLICY?”

Understanding General ConferenceWorking Policy

Working Policy101

WHAT IS “WORKING POLICY?”

General Conference Working Policy is the collection of the Church’s global leadership decisions regarding how entities live and work together.

Working Policy101

POLICY’S PURPOSE?

To protect the organization from:

individuals (autocratic, Lone Ranger types)merely reactive decision-makingwidely differing patterns of action

Working Policy101

RULE OR GUIDELINE?

Presents “agreed-upon” practices.Dynamic—policies can be changed!

Working Policy101

Mission, Vision, Values

Organization and Administration

Division Administration

Model Constitutions &

Bylaws

Denominational Employees

Working Policy101

SECTION A:

Mission

Vision

Values

Working Policy101

SECTION B:

Organization and Administration

Foundation and StructureHow the Church is

designedHow it operates

Working Policy101

• Operating principles• Outline of organization• The role of policy• Administrative

relationships

Working Policy101

SECTION BA:

• Annual Council, Church

Manual, Adult Bible Study

Guides

• Trademark policies

• Institutions—composition of

constituencies and boards

• Human relations (treating

people with fairness and

equality—with an exception

clause)

• Interdivision travel

• Records management

Working Policy101

SECTION C:

• Division territories

• Division councils and policy

• Union and local conference

sessions

• Interdivision employees

• Training of employees

• Polygamy

• Aviation

Working Policy101

SECTION D:

• Model governance documents (constitutions and operating policies)

Working Policy101

SECTION E:

• Denominational employees—

credentials and licenses

• Employee identifiers: base

division, citizenship,

independent transfers

• Calls for interdivision service

• Employee service record

• Conflict of interest and/or

commitment

Working Policy101

ORGANIZATIONAND

ADMINISTRATION

Quiz

Professor G.T. Ng

Working Policy101

DEPARTMENTSAND

AGENCIES

Professor David Trim

Working Policy101

DEPARTMENTS, AGENCIES, MINISTRIES, ETC.

• Up to 1901: there were no departments

• Today we have departments, agencies, associations, services (By-Laws, art. X, § 3), all governed by a group of policies enumerated from F through K.• FA–FY = Departments• G = White Estate• HA–HC = important

agencies• K = “Self-supporting

ministries”

Working Policy1018) FP – Publishing Ministries

9) FR – Sabbath School & Personal Ministries

10) FS – Stewardship Ministries11) FT – Legal Association &

Trust Services12) FW – Women’s Ministries13) FY – Youth Ministries

“F” POLICIES: DEPARTMENTS

1) FA – Adventist Chaplaincy Ministries

2) FB – Children’s Ministries3) FC – Communication4) FE – Education5) FF – Family Ministries6) FH – Health Ministries7) FL – Public Affairs &

Religious Liberty

Working Policy101

THE “MINISTRIES

• Nothing to do with Ministerial!

• Nine departments have the title “Ministries”• FA, FB, FF, FH, FP, FR,

FS, FW and FY:• Chaplaincy, Children’s,

Family, Health, Publishing, Sabbath School & Personal, Stewardship, Women’s and Youth Ministries

• Communication, Education, PARL and Trust Services – they surely perform a ministry but are not grouped that way.

Working Policy101

DEPARTMENTAL POLICIES

• All relatively short: eighteen sets of policies taking up 155 pages

• Contrast: four sets of policies on administration (B–D) = 145 pages

• Six sets of policies on IDEs, Volunteers = 181 pages

• Focus today: Departments• Thirteen are authorized by

the By-Laws (art. X, § 1)• But as some of you know,

there are fourteen listed under GC Departments in the Yearbook

Working Policy101

THE MINISTERIAL ASSOCIATION

• The fourteenth is the Ministerial Association

• It functions like a department and therefore is listed with them in the Yearbook, but it is officially not a department

• So integrally associated with the pastorate that it is not dealt with under the F group of policies

• There is a discrete set of policies relating to pastors, “L”, which Jonas Arrais will speak about shortly.

Working Policy101

FROM ASSOCIATIONS TO DEPARTMENTS

• Ministerial is an exception• Once, there were no

departments and only associations and societies

• These were separate, independent bodies:• had their own

constitutions• their own legal boards • their own annual

constituency meetings, separate from the General Conference and Conference meetings

Working Policy101

FAILURE TO COORDINATE

• This was fine when the church was largely limited to North America and only a few countries in Europe

• But as it spread, this system proved a failure

• Because the associations were independent legal corporations, it was very difficult for church leaders to coordinate and plan strategically

Working Policy101

THE 1901 REFORM

• At the 1901 GC Session, the associations and societies mostly were wound up

• Instead they became Departments.

• Each branch of the work (Health, Education, Sabbath School, Missionary, Publishing) still continued of course

• But each now became a department, at each level (Conference, Union, GC, later Divisions)

Working Policy101

THE 1901 REFORM

• Because all of these were represented at each level, but were under the officers at each level it was much easier for conference and union officers to plan for work across their territory

• But also easier for the departments to plan for their specific work at different levels

• Instead of competing, there was much greater cooperation

Working Policy101

SOME ASSOCIATIONS SURVIVED!

• International Health and Temperance Assoc. (founded 1890) – IHTA

• International Religious Liberty Assoc. (founded 1893) – IRLA

• Review and Herald Publishing Association

• Pacific Press Publishing Association

Working Policy101

SOME ASSOCIATIONS SURVIVED!

• But these operated differently:

• IHTA and IRLA sought (and seek) to influence outside the church—they are vehicles for two departments rather than being independent

• Both work (and still work) under departments• International Health &

Temperance Association is regulated by Policies governing the Health Ministries Dept. (FH 20)

• International Religious Liberty Association operates under Policies governing the Public Affairs and Religious Liberty Dept. (FL 20)

Working Policy101

SOME ASSOCIATIONS SURVIVED!

• Review & Herald and Pacific Press: both are called Publishing Associations but effectively operate like corporations

• Like other denominational publishing houses, they operated under Policies governing the Publishing Ministries Dept.: especially FP 35 though they are also referenced in FP 15 05

• RHPA and PP = the only publishing houses specifically referenced in WP (FP 35 15, no. 6)

Working Policy101

AGENCIES, CORPORATIONS, SERVICES (G, H POLICIES)

• Ellen G. White Estate • Adventist Development

and Relief Agency• Adventist World Radio• All three are separate

corporate bodies, not departments

• They do operate throughout the world but have their own boards and their own distinct legal existence

Working Policy101

AGENCIES, CORPORATIONS, SERVICES (G, H POLICIES) [CONTINUED]

• Adventist Mission: “It is not a department, but works with all departments.” (HC 05)

• It oversees church planting initiatives but they then operate under local entities (HC 10 no. 1, 15 10)

• Provides resources rather than administering them (HC 15 10, 15 20)

• “The Mission Awareness function of Adventist Mission is a communication function, not an administrative one.” (HC 20)

Working Policy101

DEPARTMENTSAND

AGENCIES

Quiz

Professor G.T. Ng

Working Policy101

MINISTRY AND

TRAINING

Professor Jonas Arrais

Working Policy101

L05 MINISTERIAL TRAINING

• L 05 05 General Provision The education requirement for entrance into the ministry shall be completion of the Ministerial Training Course as prescribed by the division committee.

Working Policy101

L10 MINISTERIAL INTERNSHIP

• L 10 05 Purpose of Plan

• L 10 10 Definition of term

“Ministerial Internship”

Working Policy101

L15 MINISTERIAL INTERNSHIP– PROCEDURES

• L 15 05 Length of Internship

• L 15 10 Number of Internships

• L 15 15 Wages of Interns

Working Policy101

L15 MINISTERIAL INTERNSHIP – PROCEDURES

• L 15 20 Rent Subsidies

• L 15 25 Financial Plan

• L 15 30 Licensure

Working Policy101

L15 MINISTERIAL INTERNSHIP– PROCEDURES

• L 15 35 Service Record

• L 15 40

Conference/Mission/Field

Responsibility

• L 15 45 Qualifications of

Candidates

Working Policy101

L15 MINISTERIAL INTERNSHIP – PROCEDURES

• L 15 50 Appointment of Interns

• L 15 55 Calling of Ministerial

interns

Working Policy101

L20 SEVENTH-DAY ADVENTIST THEOLOGICAL SEMINARY

Working Policy101

L25 LICENSED MINISTER– ROLE AND STATUS

• L 25 05 Responsibility and

Authority

• L 25 10 Delegating Ministerial

Functions

• L 25 15 Authorizing Ministerial

Functions

Working Policy101

L25 LICENSED MINISTER– ROLE AND STATUS

• L 25 20 Review of

Development

• L 25 25 Withdrawing

Authorization

• L 25 30 Ordination

Working Policy101

L30 MINISTERS FROM OTHER DENOMINATIONS

Working Policy101

L35 QUALIFICATIONS FOR ORDINATION TO THE MINISTRY

• L 35 05 Vital Concern of

Church

• L 35 10 Scriptural Counsel

• L 35 15 Spirit of Prophecy

Counsel

Working Policy101

L35 QUALIFICATIONS FOR ORDINATION TO THE MINISTRY

• L 35 20 Examination of

Candidates

• L 35 25 Service Before

Ordination

• L 35 30 Fostering Growth

Working Policy101

L35 QUALIFICATIONS FOR ORDINATION TO THE MINISTRY

• L 35 35 Licentiate

• L 35 40 Soul Winning as Proof

of Calling

• L 35 45 Nonministerial

Employees

• L 35 50 Not a Reward

• L 35 55 Ministry a Calling

Working Policy101

L40 ORDAINED TO WORLD CHURCH

Working Policy101

L45 PROCEDURE IN AUTHORIZING ORDINATION

• L 45 05 Authorization

• L 45 10 Ordination Ceremony –

Time/Place

• L 45 15 Ordination in Local

Missions/Field

Working Policy101

L50 EXAMINATION OF CANDIDATES FOR ORDINATION

Working Policy101

L55 ORDINATION SERVICE

Working Policy101

L60 SAFEGUARDING CREDENTIALS – THE INTEGRITYOF THE MINISTRY

• L 60 05 Union Responsibility

• L 60 10 Integrity of the

Ministry

• L 60 15 Integrity of

Organizational Officers

• L 60 20 Reasons for

Disciplining of Ministers

Working Policy101

L60 SAFEGUARDING CREDENTIALS – THE INTEGRITY OF THE MINISTRY

• L 60 25 Steps in Disciplining of

Ministers

• L 60 30 Counseling and Career

Guidance

• L 60 35 Rebaptism

Working Policy101

MINISTRY AND

TRAINING

Quiz

Professor G.T. Ng

Working Policy101

IDE POLICIES

Professor Rosa Banks

Working Policy101

FROM EVERYWHERETO EVERYWHERE

Working Policy101

When we send IDEs around the world, we need policies to guide

us.

Working Policy101

We are dealing

with…

They serve people with different needs

Different

people

Who serve in different fields – nursing, technology, ADRA, accounting, education, hospital administration, construction….

(846 IDEs at the end of 2011)

Working Policy101

SEVENTH-DAY ADVENTISTS– Working Policies M - Q

05 - General Provisions10 - Terms of Service15 - Special Appointments25 – Furloughs & OALs30 – Furlough Arrangements35 – OAL Arrangements40 – Schedule Service Cycles 45 – Eligibility for ALs50 – AL – Financial Arrangements55 – Freight Allowance60 – Bag. Allow. Furloughs65 – Baggage Allow. OAL70 – Ticket Purchase75 – Health Evaluations80 – Plans for Service/Study85 – Responsibility to the BD90 – AL-Gen. Prov. Rationale95 – Length of Service100 – Annual Leave Arrangements 105 – Length of Service & AL110 – AL – Fin. Arrangements115 – AL Ticket Purchase & Travel Arrangements

PTERMS OF

INTERDIVISION SERVICE AND

ANNUAL LEAVES

O5 – PR Arrangements10 – PR General Provisions15 – Ticket Purchase and Travel Arrangements20 – Rehabilitation Allowance25 – Freight Allowance30 – Baggage Allowance35 – Health Evaluations/ Healthcare Assistance40 - Extended Interdivision Service Allowance45 – Financial Settlement With IDEs and Children Who Elect Not to Return To the BD or Family Adopted Division, Where Applicable50 – Placing Permanently Returned IDEs55 – Discontinuance of Interdivision Employment

QINTERDIVISION

PERMANENT RETURNS

05 - Interdivision Service10 – Interdivision Policies15 – Definition of Terms20 – IDE Budget Code Plan25 – The IDE Family30 – IDE Spouse Employment35 – Interdivision Calls40 – Deferred Missionary Appointment (DMA)45 – Transfer Personal Funds50 - Medical Employees – Calling & Supplying55 – Self-Supporting Physicians and Dentists60 – Special Interdivision Transfers65 – Expenses of IDEs Transferred Between Divisions70 – Health Evaluations & Clearance75 – Return of Deceased IDE or Family Member80 – Taxation for IDEs

MINTERDIVISION

SERVICE POLICIES – GENERAL

05 – Arrangement with Inter- Division Appointees10 – Children Accompanying Parents15 – SDA Institute World Mission20 – Amortization General/ Professional Educational Indebtedness25 – Financial Assistance on Indebtedness30 - Fin. Asst. DMAs, LLU35 – DMA Approved Res., NA40 - Residency, Other Divisions45 – Financial Asst. to Nurses50 – Freight Allowance55 – Baggage Allowance60 – Personal Accident Ins.65 - Ticket Purchase/Travel Arrangements70 – Outfitting Allowance75 – Miscellaneous Financial Provisions

NINTERDIVISION

APPOINTEES

05 – Provision for Housing10 – Language Study15 – IDE Remuneration20 – HDC Allowances25 – NI/Social Security30 – Intra-division Move35 – Nondenominational Employment40 – Definitions: Elementary, Secondary, College/Univ.45 – Students Eligible for Financial Assistance50 – Educ. Allow. Elementary55 – Educ. Allow. Secondary60 – Educ. Allowance-College/ University65 – Visits of Older Children70 – Tuition Discounts75 – Medical Expense80 – Temporary Evacuation85 – Vacations Within HDC90 – Child Adoption95 – IDE Living Apart/Spouse100 – Single IDE Who Marries105 – Professional Fees

OINTERDIVISIONEMPLOYEES IN

THE FIELD

GENERAL CONFERENCE OFInterdivision Employee Policies

Working Policy10165 – Expenses of IDEs

Transferred Between Divisions70 – Health Evaluations & Clearance75 – Return of Deceased IDE or Family Member80 – Taxation for IDEs

MINTERDIVISION

SERVICE POLICIES –GENERAL

05 - Interdivision Service10 – Interdivision Policies15 – Definition of Terms20 – IDE Budget Code Plan25 – The IDE Family30 – IDE Spouse Employment35 – Interdivision Calls40 – Deferred Missionary Appointment (DMA)45 – Transfer Personal Funds50 - Medical Employees – Calling & Supplying55 – Self-Supporting Physicians and Dentists60 – Special Interdivision Transfers

Working Policy101

NINTERDIVISIONAPPOINTEES

05 – Arrangement with Inter- Division Appointees10 – Children Accompanying Parents15 – SDA Institute World Mission20 – Amortization General/ Professional Educational Indebtedness25 – Financial Assistance on Indebtedness30 - Fin. Asst. DMAs, LLU

35 – DMA Approved Res., NA40 - Residency, Other Divisions45 – Financial Asst. to Nurses50 – Freight Allowance55 – Baggage Allowance60 – Personal Accident Ins.65 - Ticket Purchase/Travel Arrangements70 – Outfitting Allowance75 – Miscellaneous Financial Provisions

Working Policy101

50 – Educational Allowance Elementary55 – Educational Allowance Secondary60 – Educational Allowance

College/University65 – Visits of Older Children70 - Tuition Discounts75 – Medical Expense80 – Temporary Evacuation85 – Vacations Within HDC90 – Child Adoption95 – IDE Living Apart/Spouse100 – Single IDE Who Marries105 – Professional Fees

OINTERDIVISION

EMPLOYEES IN THE FIELD

05 – Provision for Housing10 – Language Study15 – IDE Remuneration20 – HDC Allowances25 – NI/Social Security30 – Intra-division Move35 – Nondemominational Employment40 – Definitions: Elementary, Secondary,

College/University45 – Students Eligible for Financial

Assistance

Working Policy101

PTERMS OF INTERDIVISION

SERVICE AND ANNUAL LEAVES

05 - General Provisions10 - Terms of Service15 - Special Appointments25 – Furloughs & OALs30 – Furlough Arrangements35 – OAL Arrangements40 – Schedule Service Cycles 45 – Eligibility for ALs50 – AL – Financial Arrangements55 – Freight Allowance60 – Bag. Allow. Furloughs65 – Baggage Allow. OAL70 – Ticket Purchase

 75 – Health Evaluations80 – Plans for Service/Study85 – Responsibility to the BD90 – AL-Gen. Prov. Rationale95 – Length of Service100 – Annual Leave Arrangements 105 – Length of Service & AL110 – AL – Fin. Arrangements115 – AL Ticket Purchase & Travel Arrangements

Working Policy101

QINTERDIVISION PERMANENT

RETURNS

 O5 – PR Arrangements10 – PR General Provisions15 – Ticket Purchase and Travel Arrangements20 – Rehabilitation Allowance25 – Freight Allowance30 – Baggage Allowance35 – Health Evaluations/ Healthcare Assistance40 - Extended Interdivision Service Allowance

45 – Financial Settlement With IDEs and Children Who Elect Not to Return To the BD or Family Adopted Division, Where Applicable50 – Placing Permanently Returned IDEs55 – Discontinuance of Interdivision Employment

Working Policy101

*For NAD-based candidates: The IPRS communicates with the candidate in the For candidates not based in NAD: The base division communicates with the

STEPS IN CALLING EMPLOYEESWith Emphasis On The Major

Responsibilities of Resources &

(Revised on AugustSELECTED WORKING POLICI3S DIRECTLY RELATED TO THE IDE PROCESS

WHO CAN PLACE A CALL FOR AN IDE? Any organization with an IDE budget may place a call; however, the organization must work through its Division, following the established procedures (WP E 25)

HOW MUST THE CALL BE PLACED? Calls for employees from one division to another whether employed denominationally or not should be sentthrough the Division to GC Secretariat (WP E 25-15)

DO GC POLICIESDISCOURAGE APPROACHES BY INDIVIDUALS OR INSTITUTIONS FOR IDES? Yes. WP E 25 20 says individuals for mission service must not be approached directly by persons or institutions

MAJOR RESPONSIBILITIES OF THE ASSOCIATE SECRETARY

(Step 1) Recruit candidates for open & closed calls & receive fully completed Call Sheet (#421) & voted action from the Division

(Step 2) For NAD-based candidates  Communicate with Base Division (BD) for permission to make contact with candidate about the mission opportunity

(Step 3) For candidates not based in the NAD Communicate with denominational employer for permission or directly with candidate if not employed by the denomination

(Step 4) Send Call Sheet to candidate & request completion of PI Form (#312) online

MAJOR RESPONSIBILITIES OF THE INTERNATIONAL PERSONNEL RESOURCES AND SERVICES

(Step 8) Receive a copy of the IDE acceptance letter from GC Secretariat

(Step 9) Send Call Packet to IDE Receive, evaluate & record health & financial evaluations.

(Step 10) If candidate is unable to clear for any reason, notify the Associate Secretary who informs the candidate on behalf of MPPC

(Step 11) Obtain visas & work permits for IDEs, request employmenttermination, &begin shipping arrangements

TO INTERDIVISION SERVICEGC Secretariat and the International Personnel Services30, 2012)

ARE THERE OTHER POLICY PROHIBITIONS? Certainly. WP E 25 20 says conferences, missions, or institutions within the Division should not be asked by individuals to process calls

WHEN, THEN, IS A CALL OFFICIAL? Only after the Division sends the call to GC Secretariat, the Associate Secretary processes the call through the MPPC, & the MPPC votes the call is the call considered to be official (WP E 25 25)

(Step 6) For candidates not based in the NAD The Base Division conducts evaluations on candidate & sends letter of recommendation to GC Secretariat

(Step 5) For NAD-based candidates  Conduct evaluations & reference checks on candidate using Form #333 & do home visit to interview family

(Step 7) Place candidate’s name on MPPC agenda, & if voted, send Call Letter to the candidate through the Base Division Secretariat requesting response from candidate

(Step 13) Set pre-embarkation date & arrange for packing & IDE visits to approved family members

(Step 12) Arrange for Mission Institute for IDE & family members approved for mission experience

(Step 14) Arrange for language study, if required by Host Division

(Step 15) Approve departure date from Base Division & arrival date to Host Division & purchase tickets for travel

completion of all Steps, copying the Associate Secretary.candidate in the completion of Steps 8-15, copying the Associate Secretary.

Working Policy101

WHEN WE SEND VOLUNTEERS AROUND THE

WORLD

• We also need policies to guide us.

Working Policy101

R 05 Adventist Volunteer Service

 R 10 10 05

 Intradivision Adventist Volunteer Service Intradivision Adventist Volunteer Plan

 R 15 15 05 15 10 15 15 15 20 15 25 15 30 15 35 15 40 15 45 15 50

 Interdivision Adventist Volunteer Service Interdivision Adventist Volunteer Service Plan Selection and Assignment Procedures Interdivision Adventist Volunteer Service Procedures Basis of Division Volunteer Requests Financial Responsibility—Division Relationship to Other Organizations College/University Volunteers Service by Secondary/Academy Student Volunteers Responsibility of Volunteers Adventist Volunteer Service Release of Liability

GENERAL CONFERENCE ADVENTIST

WORKING

OF SEVENTH-DAY ADVENTISTSVOLUNTEER SERVICE

POLICY R

 R 20 20 05 20 10 20 15 20 20 20 25 20 30 20 35 20 40

 Mediation and Conciliation Procedures Rationale Basic Assumptions Grievance Exemptions Mediation Conciliation Procedure The Review Committee Function, Authority, and Guidelines General Provisions

Working Policy101

• Volunteers serve up to two years with ability to extend. Volunteers usually pay their own travel expenses. Some receive small stipends. Variety of positions available.

ADVENTIST VOLUNTEER SERVICE

• AVS processed 590 volunteers in 2011; 1,330 volunteers served at any given time in 2011.

Working Policy101

IDE POLICIES

Quiz

Professor G.T. Ng

Working Policy101

FINANCIAL POLICIES

Professor Daisy Orion

Working Policy101

“S” POLICIES ARE GENERAL FINANCIAL POLICIES

Working Policy101• 24 – Financial Ratios

• 34 – Oversight Committees

• 37 – General Conference Funds

• 38 – General Conference

Budget Preparation and

Implementation

OVERVIEW OF “S” POLICIES

• 04 – Financial Operations &

Environment

• 09 – Financial Planning & Budgeting

• 14 – Financial Borrowing

• 19 – Financial Reports

Working Policy101• 65 – Contingent Liabilities –

Recording

• 70 – Depreciation

• 75 – Sponsorship

• 80 – GC Graduate Scholarship

Fund

• 85 – Investment of Church

Funds

• 90 – Core Policies for Policy

Compliance

Testing

OVERVIEW OF “S” POLICIES

• 39 – General Conference Appropriations

• 40 – Trust Services

• 45 – Borrowing from Church Members

• 50 – Solicitation of Funds

• 55 – Holding Properties

• 60 – Insurance Policies

Working Policy101

S 04 – FINANCIAL OPERATIONS & MANAGEMENT

• Organizational leadership is

responsible for financial

matters.

• Officers at ALL levels should

set example in economy.

• Controlling boards should

ensure internal controls are

adequate.

• Budgets need to be

approved by the controlling

committee.

Working Policy101

S 09 – FINANCIAL PLANNING & BUDGETING PROCESS

• Mission Based

• Budget Approval Process

– Needs to be approved

by controlling

committee

• Funding

• Operating Deficits ??? –

Provide in following

year’s budget (recovery

plan)

• Obligations

• Inter-Organization

Accounts

• Authorization for

Appropriation

Working Policy101

S 14 – BORROWING GUIDELINES

• Borrowing to reinvest? No

• Borrowing to relend? No,

except revolving funds

• Borrowing for financing

current operations? No,

except EXTREMELY unusual

circumstances

• Pledging, encumbering

assets of other

organizations? No!

Working Policy101

S 19 – FINANCIAL REPORTS

• Distribution:

– Administration – at least

9

– Board/Exec Comm – at

least 4

– Inactive organizations –

quarterly

• Analysis

• Presentation to Committees

& Constituency Sessions

• Statistical Reports

• Accounting Manuals

Authority

Working Policy101

S 24 – FINANCIAL RATIOS

• Use of ratios - basic

measure of financial health:

– Liquidity

– Asset Turnover Ratios

– Financial Leverage

Ratios

– Profitability

– Working Capital

Working Policy101

S 29 – FINANCIAL AUDITS

• Importance of Financial

Audits

• Principal Officers required to

furnish IN WRITING to the

auditor a set of assertions

regarding the organization’s

compliance with

denominational core

policies.

Working Policy101

S 34 – OVERSIGHT COMMITTEES

• Must have:

• Audit Review Committee (no

employees)

• Compensation Review

Committee

• Financial Statement Review

Committee

• Financial Survey Commission

Working Policy101

S 37 – GENERAL CONFERENCE FUNDS

• Sources of funds

• Remittances to the General

Conference

• Funds that may be held by

the GC

Working Policy101

S 38 – GC BUDGET PREPARATION and IMPLEMENTATION

• 05 – Treasury

• 10 – Budget Preparation

– Based on cap

• 15 – Approval

• 20 – Implementation

Working Policy101

S 39 – GC APPROPRIATIONS

• Requests from Divisions

should be in by August 1

each year.

• Appropriations are made at

Annual Councils

Working Policy101

S 40 TRUST SERVICES

• Annuities > $100,000

– Counsel with Union

– Annuity Rate

– In Accordance with

Policy

• All Trust Agreements

– Authorized by Board or

Appropriate Committee

• Maturity of all Deferred Gifts

– Record in Legal

Corporation’s Minutes

Working Policy101

S 40 TRUST SERVICES

• 05 – Deferred Gifts

• 10 – Gift Annuity Agreements

• 15 – Trust Agreements

• 20 – Wills

• 25 – Recording Maturity of

Deferred Giving Instruments

• 30 – Administrator, Trustee,

and Executor of Wills – Fees

• 35 – Inter-organizational

Trust Services Guidelines

Working Policy101

S 45 BORROWING FROM CHURCH MEMBERS

• Can you borrow from church

members?

• NO-- except through

denominationally recognized

channels such as Trust

Services and revolving

funds.

Working Policy101

S 50 – SOLICITATION OF FUNDS

• 05 – Denominational Funding

• 10 - Solicitation by

Organizations

• 15 – Solicitation by

Individuals

• 20 – Contributed funds

• 25 – Unauthorized

Presentations and

Solicitations

• 30 – Ingathering Methods

Working Policy101

S 55 – HOLDING PROPERTIES

• O5 – Property Ownership

– Should be in the name of

appropriate

denominational

corporate entity, not by

individuals, trustees, or

local congregations

• 10 – Property Valuations

• 15 – Special Provision

– Continues to be in the

name of the General

Conference Corporation

only if it is not feasible

to register a property-

holding company or

transferring the property

is prohibitive

Working Policy101

S 60 – INSURANCE POLICIES

• Coverage should be in

Harmony with working Policy

S 60 05

Property

Liability

Other Applicable

Insurance

Working Policy101

S 60 – INSURANCE POLICIES

• 10 – Minimum Limits of Liability Insurance

• 15 – Property Insurance• 20 – Crime Insurance• 25 – Boiler Insurance• 30 – Public Liability Insurance• 35 – Aircraft Insurance• 40 – Airport Insurance• 45 – Workers’ Compensation

Insurance• 50 – Fire Protection in

Denominational Buildings• 55 – Hospital Professional

practice and Safety Committee

• 60 – Death Benefit Plans

Working Policy101

S 65 – RECORDING OF CONTINGENT LIABILITIES

• 05 – Contingent Liabilities

• 10 – Errors and Omissions

Liability

Working Policy101

S 70 - DEPRECIATION

• 05 – Depreciation Expense

– Operating Expenses

– Use of Depreciation

Working Policy101

S 75 – ALIEN SPONSORSHIPS TO THE UNITED STATES OF AMERICA

• GC ADCOM – tasked to act in granting sponsorships on behalf of the General Conference

Working Policy101

S 80 – GC GRADUATE SCHOLARSHIP FUND (PhD/ThD)

• Purpose - to increase

number of college and

seminary teachers with PhD

and ThD earned at AU or

AIIAS

• 4 year scholarship

• 1 doctoral at AU or up to 3

at AIIAS per Division

Working Policy101

S 85 – INVESTMENT POLICIES

• Divisions should adopt their own investment policies

• If Division or GC Institution does not have its own investment policy and would like to adopt the GC investment policy – controlling board needs to approve it.

• Classify Funds

Working Policy101

S 85 – INVESTMENT POLICIES

• 05 – Safeguarding Denominational Funds

• 10 – Philosophy• 15 – Principles• 20 – Policies• 25 – GC Unitized Funds• 30 – Classes of Funds• 35 – Investment of Short

Term Funds• 40 – Investment of

Intermediate-Term Funds• 45 – Investment of Long-Term

Funds• 50 – Special Consideration

Securities

Working Policy101

S 90 – GC CORE POLICIES for POLICY COMPLIANCE TESTING

• Very Important.• This is your basic check list

when preparing for an audit. • Refer to this section often!

Working Policy101

S A - AUDITING POLICIES

• SA 05 - AUDITORS & AUDITING

– SA 05 05 – G C A S

– SA 05 10 – G A A S

– SA 05 15 – Definition of

Audit, Financial Review &

Compilation

– SA 05 16 – Audit of Trust

Operations

– SA 05 17 – Compliance

Testing

– SA 05 25 – Assignment

– SA 05 27 - Responsibility for

Local Conf & Local Church

Audits

Working Policy101

S A – AUDITING POLICIES…

• SA 20 - Authorization for

Financial Engagements

• Under Special Circumstances

• Consultation with 3 GC

Officers ----- who may

recommend to GC ADCOM to

authorize such

Working Policy101

T – DIVISION FINANCIAL POLICIES

• T 05 – Financial Support

• T 05 05 – Unity

• T 05 10 – Self-Support

• T 05 15 – Determining Self-

Support

• T 05 20 – Tithes and

Offerings

• T 05 25 – Institutions

• T 05 30 – Tithe Percentage

Working Policy101

T – DIVISION FINANCIAL POLICIES ----

• T 10 – Division Funds – Divisions other than North America

• T 20 – Appropriation Requests from Divisions

• T 25 – Exchange Policy– T 25 05 – Purpose– T 25 10 – Rate of

Exchange– T 25 15 – Exchange Rate

Application– T 25 20 – Currency

Remittance– T 25 25 – Exchange

Gains or Losses

Working Policy101

T – DIVISION FINANCIAL POLICIES

• T 30 -

Postgraduate/Continuing

Education—

Locally Employed Health Care

Professionals

• T 35 Assistance to

Employees Sponsored for

Study Outside Their Base

Division

Working Policy101

V – TITHES AND OFFERINGS

• V 04 The Tithe

• V 09 Sharing Financial

Resources

• V 14 Use of Tithe

• V 20 Accountability for the

Use of Tithe

• V 25 Offerings

• V 30 Offering Plans

• V 35 Combined Offering

Plan

• V 40 Personal Giving Plan

Working Policy101

V – TITHES & OFFERINGS, CONT

• V 45 Calendar of Offerings

Weekly Appeal

– Local Church Budget

– Mission Offerings

– Sabbath School

Offerings

– Sabbath School

Investment

– Birthday Thank Offering

– Annual Sacrifice Offering

– Disaster and Famine

Relief

– Adventist World Radio

Offering

Working Policy101

V – Tithes & Offerings, con’t

• V 50 Camp Meeting

Mission Offering

• V 55 Special Donations

and Bequests

Working Policy101

W – NOW DELETED

• Incorporated in section “V”

of the policy book.

Working Policy101

Y - REMUNERATION

• Should Comply with Policy:

• Salary Rate

• Reimbursements for auto

use, per diem & other travel

related expense

• Health Care Assistance

• Scholarship grants to

dependent children

Working Policy101

Z – RETIREMENT PLANS

• Contributions comply with

applicable division policy

Working Policy101

Can’t remember where all these

policies are??

Working Policy101

Thinking of Finances??

Think of $$$$$$$,

Think of “S”

Working Policy101

Thinking of division financial

policies??

Think that divisions are

extension of GC.

Think of the TOP LINE as GC, and

the PERPENDICULAR LINE as

Line flowing to the division…

Think of the letter “T”

Working Policy101

What about institutional financial

policies in “U” policies?

Many institutional buildings are

“U” shape.

You may want to try the word

itself –

INSTIT-U-TION

Working Policy101

HOW WOULD YOU REMEMBER WHAT THE “V” POLICY IS ALL ABOUT??

• V – is for VICTORY!

• V – has two stems pointing

upward:

• One stem is for

TITHES

• Another stem is for

OFFERINGS!

Working Policy101

X POLICY

• Ingathering Policy should

probably be in the “I”

section.

• No longer managed by GC,

Ingathering is a “former”

fund, thus remember it as an

X-GC fund.

Working Policy101

“Y”

• What is in the “Y” Policy??

• Remuneration of and

assistance to employees.

• Y= YES! …..YEES!

Working Policy101

LAST BUT NOT THE LEAST

• Z policy ---- zzzzzzzzzzz

you are ready to sleep, to

retire -- These are your

retirement policies!

(DIVISION RETIREMENT

POLICIES)

Working Policy101

FINANCIAL POLICIES

Quiz

Professor G.T. Ng

Working Policy101

CONCLUDING REMARKS

Working Policy101

REPORT CARDS