DIVISION FINANCIAL POLICIES

Transcription

1 T DIVISION FINANCIAL POLICIES T 05 Financial Support T Unity The Division Committee shall encourage the concept of the unity of the Church whereby members in all parts of the world participate in the maintenance and extension of the world work. T Self-Support The goal of total financial self-support shall be continually kept before all entities in the Division, emphasising the importance of steady growth and pointing out that they cannot expect to depend permanently on increasing appropriations from the Division and/or the General Conference, but that the organisations should be able to release to the Division in ever-increasing amounts the funds they themselves needed in the earlier stages of their development. Each union mission which has not yet attained self-support shall, in co-operation with its union/division committee, establish a plan and a specific date for achieving financial self-support. An annual review shall be made by the Division officers and a report submitted to the General Conference. T Determining Self-Support An organisation is considered to be self-supporting when it has sufficient earned operating income (not including donations and appropriations) to cover its operating expenses (including the difference between the appropriations paid to lower organisations and the appropriations received from the higher organisation if the amount paid to lower organisations is more than what is received from the higher organisation). The formula for calculating the self-support percentage is: Earned Operating Income (not including donations and appropriations) divided by Operating Expense (including operating appropriations paid in excess of appropriations received) multiplied by 100. T Tithes and Offerings 1. Tithe Frequent appeals shall be made by Division and union leaders, conference/mission/field presidents, church pastors and elders, and others on whom responsibility is placed, that all believers be faithful in returning God s tithe, which will provide sufficient tithe from the churches to cover the budget requirements of the various entities and to help in sustaining the Church s activities in all lands. 2. Offerings In addition to the tithe, free-will offerings are essential in order to provide equitable support for each organisational level of the Church s world work. Such offerings should be systematic in order to: a. Nurture the sense of responsibility each mature church member should feel for the Church s work as a whole. b. Enable the church member to receive the blessing that regular and planned giving brings. c. Ensure a steady flow of funds for all aspects of a balanced programme. 3. Giving Guide For systematic giving a second 10 per cent of income in addition to tithe is suggested as the goal for individual giving, in order to provide 641

2 642 / Division Financial Policies TED Working Policy for local church needs, conference/mission/field needs, and the world-wide needs of the Church. 4. Areas of Need The Church does not tell members how much to give or how to divide their free-will offerings among the various needs of the work. Under the guidance of the Holy Spirit it is the individual member s duty to prayerfully and intelligently make this decision. In order that each member be made aware of the realities of financing the Lord s cause, the following areas of need and giving are listed: Sabbath School Mission Offerings GC/Division/Union Offerings Conference/Mission/Field Development Funds Local Church Funds 5. Mission Offerings Sabbath School mission offerings include the regular weekly Sabbath School offering, Thirteenth Sabbath Offering and Birthday-Thank Offering. Besides these regular and systematic offerings, Investment is promoted to supply additional mission funds. 6. World Offerings General Conference offerings include the regular world-wide offerings, such as Disaster and Famine Relief, World Mission, Annual Sacrifice, Adventist World Radio, and such other offerings as are emphasised world-wide by the General Conference. 7. Conference/Mission/Field Development Conference/mission/ field development funds are given and used for such needs as youth camps, secondary school expansion, camp meeting facilities and other conference/mission/field endeavours which require additional funds of a non-tithe nature. 8. Church Funds Local church funds include offerings for church and Sabbath School expense, all other departmental expenses, church school subsidy, worthy student fund, gift witnessing literature, the building fund, local evangelistic outreach, and all other local church needs. The specific items included, the per cent of income needed, and the allocation of funds are decided by appropriate local church committees, the church board, and finally, the church in a business meeting. 9. General Conference Funds All Sabbath School and other world mission offerings belong to the General Conference for use in funding the worldwide mission programme and should not be retained to cover local operating expenses. T Institutions The goal of every managing board shall be to place publishing houses, hospitals, and other institutions on a self-supporting financial basis in order that more funds may be released for the extension of the message into unentered territories, so that an increasing proportion of the funds appropriated by the General Conference may be used for extending the work into new areas. T Tithe Percentage The Division Committee shall endeavour to arrange for an increased percentage of the tithe (see section V 10) in addition to the tithe of tithe and the Retirement Plan percentage, to come from the

3 TED Working Policy Division Financial Policies / 643 conferences/missions/fields within their territories to the Division for distribution as part of the Division budget. T 10 Division Funds T Division Funds 1. Principal Funds The principal funds of the Division are the appropriations received from the General Conference, that portion of the tithe belonging to the Division fields, and special donations. 2. Ingathering Funds Ingathering funds shall be reported annually to the General Conference Office of Archives, Statistics, and Research in order that these donations for missions will appear in the General Conference statistical records. 3. Special Funds All special funds for general purposes (aside from Ingathering) raised in the Division fields may be used by the Division, but such special funds shall be reported in the annual financial or statistical reports to the General Conference Treasury. 4. Disaster and Famine Relief Offering One hundred per cent of the Disaster and Famine Relief Offering shall be reported to the General Conference. Fifty per cent of this offering shall be reverted to the Division by the General Conference. 5. Appropriations Appropriations shall be made to the organisations in the Division for their requirements as the Division Committee may determine. T 20 Appropriation Requests from the Division T Appropriation Requests 1. The Division shall submit a list of requests for appropriations to the General Conference by August 1 each year. Requests are to be accompanied by such supporting reports and documentation as called for by the General Conference. 2. Categories of Requests Requests are to be categorised as follows: a. Operating Appropriations Regular recurring operating expenditures 1) Tithe 2) Non-tithe b. Special Non-tithe Appropriations Capital and other non-recurring expenditures c. Global Mission Appropriations T 25 Exchange Policy T Purpose The Seventh-day Adventist denomination is a world-wide church that uses almost all the currencies of the world in its financial transactions. Because the General Conference headquarters is located in the United States, the U.S. dollar is used as a common denominator, and as the currency unit of the General Conference budget.

4 644 / Division Financial Policies TED Working Policy T Rate of Exchange Currency values for transactions between different currencies are determined by the rate of exchange that is used. For denominational transactions, the following shall apply: 1. Fixed Rates A fixed rate of exchange is to be set that is close to the interbank, or the official rate of exchange. 2. Rate-Setting Frequency The fixed rate of exchange is to be set as often as necessary to maintain the close relationship to the official rate of exchange. This is to be done at least once each month, normally on the first of the month. 3. Division Rate The Division is to set fixed rates for all countries within its territory. 4. Unusual Situations In countries where it becomes necessary to establish a fixed rate that varies considerably from an official governmental rate which does not realistically reflect the value of the currency, the fixed rate shall be used for all transactions. T Exchange Rate Applications Exchange rate applications are to be as follows: 1. Application The fixed rate of exchange is applied to interorganisational transactions such as appropriations, the remittance of trust funds, and to statistical information and balance sheets. 2. Current Rates The current rate is the rate at which local currency can be purchased. The Division may provide for a second rate of exchange, called a current rate. The current rate as set by the Division would be applied to transactions such as purchases by individuals or organisations, and personal transfer of funds under M 45, Transfer of Personal Funds. T Currency Remittances Treasurers/Chief Financial Officers at all levels of the organisation shall work closely together in the matter of currency remittances. T Exchange Gains or Losses Exchange gains or losses are incurred due to exchange rate variations. The following provisions shall apply: 1. Responsibility Gains or losses due to exchange fluctuations are the responsibility of the Division. 2. Allocated Fund Gains or losses are to be entered by the Division on a monthly basis to an allocated currency fluctuation fund. 3. Unions or Conferences/Missions In unions or conferences/missions whose territory covers more than one country and who therefore, operate in more than one currency, gains or losses on exchange are to be carried by the organisation concerned. 4. Protection Treasurers/Chief Financial Officers at all levels are to handle currency and exchange transactions in such a way as to protect the Church from risk and loss. 5. Fund Due to the potential for loss from fluctuations in exchange rates, the Division may maintain an allocated currency fluctuation fund to be funded as follows: a. Exchange gains on appropriations and other transactions.

5 TED Working Policy Division Financial Policies / 645 b. Allocations through the annual budget with monthly credits posted to the fund. c. Special appropriations. d. Exchange losses are charged as expenses to the fund. 6. Special Appropriations The Division may use the currency fluctuation fund as a source of funding for special appropriations, but caution must be exercised to always maintain an adequate fund balance to meet potential losses due to fluctuating exchange rates. 7. Appropriation Adjustments In cases where the Division incurs substantial exchange losses on operating appropriations over an extended period, the General Conference will endeavour to partially compensate by providing additional operating appropriations. T 35 Assistance to Employees Sponsored for Study Outside Their Base Division T Study Programmes 1. Assistance The following policy for assistance to all employees who are sponsored by the Division for study in a division other than their base division has been adopted. This policy will not apply to physicians/dentists taking residencies, nor will it supersede the provisions of the Theological Seminary study plan. 2. Selection The responsibility for selection shall be with the Division Sponsorship Committee on recommendation from the employing organisation. 3. Duration of Sponsorship a. When voting a candidate, the sponsoring organisation should clearly state the number of years (and months) that the sponsorship will be in effect. Candidates with pending prerequisites (course work, language, etc.) will need from one to three quarters more than other candidates. b. Before the duration of sponsorship is voted, the sponsoring organisation should receive from the programme director at the educational institution an academic evaluation that would include a tentative timetable. 4. Transportation The Division shall provide round-trip transportation for the employee and spouse and unmarried dependent children under 21 years of age. Travel shall be by the most direct route and by the approved class of travel. 5. Salary The Division shall provide 60 per cent of the salary of the area in which the study programme is undertaken, plus 5 per cent for each child, up to a total of 80 per cent; plus an additional 5 per cent for each child attending a Seventh-day Adventist church school, up to a maximum total of 100 per cent. 6. Rent Subsidy a. No rent will be charged in the employee s base division. b. Rent subsidy shall be allowed on the basis of the rent policy in effect in the area where the study programme is undertaken. 7. Utility Allowance Utility allowance, when needed, shall be granted on the basis of the utility-allowance policy in effect in the area where the study programme is undertaken.

6 646 / Division Financial Policies TED Working Policy Health Care Expense a. The Division shall pay the cost of any required college or university student medical insurance plan. b. Health care expenses not covered by the college or university student medical insurance plan, nor by any medical expense insurance of the employee s division, shall be processed under the regular health care expense policy at the expense of the sending division. 9. Education Expenses For the employee: a. The sending division shall pay 100 per cent of the following expenses: 1) Tuition 2) Registration fees 3) Local transportation 4) Graduation fee b. Textbook allowance shall be granted at the rate of up to US$100 per semester. c. The following allowances shall be given for thesis/dissertation/ project preparation: 1) Master s degrees Actual cost up to US$400 2) PhD, ThD, EdD degrees Actual cost up to US$1,000 3) DMin degree Actual cost up to US$500 d. Full financial assistance under the above policies shall be made available for make-up/equivalency studies as required, provided the employee is enrolled for full-time study and when certified by the dean. The dean shall notify the employee s division regarding the projected normal time required to complete the degree for which the employee is being sponsored, including any make-up of deficiencies required for entering the degree programme. e. In cases where a study programme is approved for an employee s spouse, the above provisions shall apply. 10. Tuition Assistance Dependent Children When the Division sends personnel with their families on some type of bursary plan that provides less support than employees receive in the division where the employee is studying, unmarried dependent children attending denominational elementary, secondary, or liberal arts schools may be granted up to 60 per cent of their tuition by the Division. 11. Auto Depreciation No auto depreciation is allowed on any automobile that may be operated by the employee in the area where he/she is studying. 12. Auto Insurance If the employee operates a car in the area where he/she is studying he/she should arrange such insurance coverage as is appropriate, including personal and denominational protection. The Division meets 100 per cent of the expense. 13. Freight and Customs Duty Allowance for Return to Base Division Such freight and/or customs duty allowance as may be determined by the Division will be allowed.

7 TED Working Policy Division Financial Policies / Personal Effects Baggage Insurance Personal Effects Baggage Insurance shall be provided by the Division at its expense for both forward and return journeys. 15. Contract With the Employee a. All travel costs, allowances, expense reimbursements, and salary referred to in this policy shall be regarded as advances under a contract. b. The employee shall agree to serve at least four years for the first full year of study and two months for each additional one month of study leave. The total advance shall be amortised accordingly. c. In case an employee under such contract is called by another organisation prior to the complete amortisation of study advances, any balance remaining shall be assumed by the calling organisation. 16. Work by Sponsored Student In order to help ensure he/she completes the needed studies on time, a sponsored student should not work more than 10 hours per week. 17. Authorisation for Additional Classwork, etc. The sponsoring organisation will be responsible to authorise any additional classwork, study tours, workshops, etc., beyond what is needed for the degree sought. The programme director should be advised in writing of such authorisation by the sponsoring organisation. The approved time may be extended a maximum of two quarters. 18. Progress Report A progress report shall be sent twice annually by the educational institution to the sponsoring organisation and the Division. Before the candidate arrives on the campus, he/she shall sign an agreement authorising such a report to be sent to the sponsoring organisation. 19. Vacation Time Additional vacation time beyond what is included in the study programme for which the student is enrolled shall not be added to the sponsorship period. T 45 National Employees Returning T Returning to Home Division 1. Procedure Calls for nationals who have been employed in their home divisions and who have gone at their own expense to another division, but do not qualify for adopted division status, and are returning to their home division for denominational service, shall be processed by the calling division directly to the individual. Physical examinations are not required unless requested by the calling division. The calling division shall contact the division where the returning national has been living to discuss and document issues including independent transfers, unamortised loans or advances, service credit, retirement contributions, and relationship to the Church. 2. Salary Salary for such employees shall begin as of such time as is arranged by the division in each case, but no later than the authorised date of departure for the new employment.

8 648 / Division Financial Policies TED Working Policy Transportation The cost of fares by the direct route of travel as approved by the division concerned shall be paid by the division and/or the subsidiary organisation concerned on behalf of the employee and all members of the immediate family. 4. Outfitting and Freight Allowances An outfitting allowance and a freight allowance shall be granted to each employee as recommended by the division concerned. 5. Other Obligations Any further consideration, such as may relate to indebtedness due to heavy educational costs, may be determined by the division according to the individual circumstances. 6. Amortisation All allowances and costs except salary as outlined in this policy shall be considered as a prepaid expense and amortised on the basis of 20 per cent for each year of the employee s service after returning to the homeland. In the event the employee leaves denominational employment before the entire amount has been amortised, the unamortised portion shall be repaid by the individual to the employing organisation. If the employee is called to another organisation before the amortisation is complete, the calling organisation shall assume the unamortised portion of the above allowances and costs except salary and shall continue the process of amortisation on the original basis. T 50 Unsponsored Students T Financial Plan 1. No Division Responsibility Educational institutions are advised that the Division will contribute financial assistance only for those students selected by the Division Committee and whose study and financial plans have been approved by that Committee and outlined in a letter addressed to the institution by a Division officer. 2. Student Responsibility Students not approved by the Division Committee are understood to be undertaking their study programme on their own financial responsibility. Educational institutions shall therefore assure themselves before accepting such students from overseas divisions, that they have a satisfactory financial plan for meeting school and living expenses. T 55 Cross-Cultural Training for Intra-division Employees and Volunteers When the Division has a large number of intra-division employees and volunteers serving in different cultural settings than their own, the Division should provide cross-cultural training for these employees and volunteers. (See N 15.) Counsel should be requested from the Institute of World Mission to ensure that the teaching staff is qualified to conduct the training programmes. The Division Committee shall determine the location, length, and curriculum of such training programmes.