A Review of PCC Governance at Crosby, St Faith s. October Canon Roger Driver

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1 A Review of PCC Governance at Crosby, St Faith s October 2013 Canon Roger Driver 1

2 Report Summary 1. The size of the PCC at St Faiths is large, and with reference to the Church Representation Rules does not fall in line with those Rules. Clergy and Readers with Permission to Officiate, Deputy Church Wardens, the Secretary to the PCC, and the Treasurer do not have automatic full membership of the PCC by right due to the positions they hold. To be a full member of the PCC they need to be elected as individuals in their own right or be one of the two possible co-opted places on the PCC. 2. Other than reference to co-options alongside particular names listed in the Annual Report, there is no record to formal co-options in the Minutes of the PCC. (The Treasurer was elected in his own right up until 2009, but on the basis that he has not been either elected or co-opted since, he is not a full member of the PCC). 3. There seems to be a lack of understanding and clarity about attendance at the PCC by non-members. There is also a misunderstanding around who is entitled to stand as a PCC member, with a inaccurate reference that a husband and wife cannot both be members of the PCC at the same time. 4. There are several active sub-committees whose membership is elected at the Annual Parochial Church Meeting. There is no evidence or mention in the PCC Minutes of any agreed Terms of Reference or delegated powers. 5. The Premises Committee is very thorough in recording its meetings with Minutes and regular detailed reporting to the PCC with costing s as seen in the PCC Minutes. 6. Only two copies of Minutes for the Finance Committee were provided for the whole period of time since There is regular reporting to the PCC either as a report of the Finance Committee or Treasurers Report, which includes a summarised budget position, but the reports do not contain details of depth in regard to more significant expenditure e.g. employment of staff and decisions around back payment of unpaid Diocesan Share etc. 8. Only two copies of the Minutes of the Standing Committee were provided, and there is only one other reference to a meeting for the whole period of time from The membership of the Standing Committee is recorded and listed in the Annual Report. 9. On average there have been 5 regular meetings of the PCC each year as well as the APCM and an annual PCC away day. Due to the issues and problems around the struggle to pay the Diocesan Share several Emergency meetings have been called to discuss and try to find solutions. 10. In the middle of the period under review there is a direct mention of the Finance Committee making decisions without reference to the PCC, and then just reporting their actions to the PCC. It was further stated that this needed to change due to the Parish gaining Charitable Status. This seems to convey the working practice of the committee up until that time, but due to the lack of reported details and formal decision making as recorded in the PCC Minutes, this mode of working did not stop. This position was challenged in 2013 with the example of the PCC being asked to agree a cap on expenditure of 500 by the Finance Committee, with higher amounts needing to be agreed by the formal agreement of the PCC. 2

3 A Review of PCC Governance at Crosby, St Faith s October Formation and make-up of the PCC 1.1 General Membership Over the period of time being reviewed ( ) the size of the PCC at St Faiths has varied slightly in size. With direct reference to the Annual Reports the membership of the PCC has been laid out as of the date of the Annual Parochial Meeting (APCM) each year. In all the Annual Reports under the heading Structure, Management and Governance, a clear understanding is laid out that the method of appointment of the PCC members is set out in the Church Representation Rules. Subsequent to the APCM and during the course of the year a number of Co-Options have been made and agreed by the PCC: Year ER Vicar Other Clergy Readers Wardens Others (Dep. CW & Sec) Deanery Synod Elected Members In year cooptions The size of a PCC is set out under Rule 14 1 of the Church Representation Rules, and St Faiths is just over the threshold of 100 members on the Electoral Roll to have 12 elected members. (If the Electoral Roll falls below 100 the elected lay members should go down to 9). 1.2 Clergy & Readers Present on the PCC are Clergy and Readers. The Church Representations Rules sets out clearly that Licensed Clergy and Readers in the Parish are entitled to attend. In practice at St Faiths in addition to the Incumbent, 2 other clergy have attended and 2 to 3 Readers. The fact that Father Denis Smith is recorded as being co-opted onto the PCC in the Annual Reports seems to indicate an understanding that retired clergy who come to the end of their license are usually then given Permission to Officiate (PTO) by the Bishop. PTO does not entitle someone to be a Total 1 Rule 14 Section (g) six representatives of the laity where there are not more than fifty names on the electoral roll, nine such representatives where there are not more than one hundred names on the roll and, where there are more than one hundred names on the roll, a further three such representatives for every one hundred (or part thereof) names on the roll up to a maximum of fifteen such members 3

4 member of the PCC. The same applies to Readers on retirement when they move from Bishops License to PTO. This factor draws attention to the Readers and Clergy who now have PTO and there continued presence as full members of the PCC. 1.3 Treasurer & PCC Secretary In 2008 the Treasurer, and in 2008 and 2009 the Secretary had been elected in their own right onto the PCC as one of the 12 elected members of the Laity. It is noted that each year following, the two names that appear in those roles cease to be elected in the same way; instead they appear to be present on the PCC by virtue of co-option in the case of the treasurer and election by some means for the secretary (noted in brackets alongside the Secretaries name). 1.4 Deputy Wardens Each year the APCM Report indicates that Deputy Wardens are elected. Under Church Representation Rules, and after checking with the Diocesan DAC that there is no additional Scheme is in place, is an anomaly in regard to them holding a place on the PCC by virtue of that election. They are not inhibited from standing as an elected lay member in the normal way. In many Parishes Deputy Wardens are appointed to support the Wardens in their function and role, but that is different altogether from gaining an automatic position on the PCC. In addition misinformation can also be seen in the 2009 APCM Minutes siting the Diocese as a source of information to support the election of Deputy Wardens taking up membership on the PCC: The deputy wardens elected take-up PCC membership in line with diocesan policy. After checking this position there is no such Diocesan Policy, and there is no mention of the election of Deputy Wardens onto the PCC in the Church Representations other than by additional Scheme. There being no additional Scheme in place gives no credence to the claim spelt out in the Minutes. 1.5 Co-options In regard to Co-options there is again rules laid out that specify that there should be no more than one-fifth of the Elected Members. 2 A co-opted person only holds that position for the one year until the next APCM. In each year of those reviewed it is indicated in the Annual Report listing that the Fr. Dennis Smith and David Jones (Treasurer) have been coopted as members of the PCC. On a few occasions a date accompanies the entry in the listing. Following a review of all the PCC Minutes for the period under review, with one exception no record or entry can be found of any Co-options 2 Rule 14 Section (h), co-opted members, if the parochial church council so decides, not exceeding in number one-fifth of the representatives of the laity elected under the last preceding subparagraph of this paragraph, or two persons whichever shall be the greater, and being either clerks in Holy Orders or actual lay communicants of sixteen years of age or upwards. The term of office of a co-opted member shall be until the conclusion of the next annual meeting; 4

5 taking place by the full PCC. The exception being the PCC meeting on 29 th April that was Chaired by Father Simon Tibbs, where for the first time the Vice-Chair of the PCC, the Treasurer and PCC Secretary are formally appointed. Dave Jones is appointed as Treasurer, but there is no reference to co-option. The exception to this is this year where no co-options have been recorded in the minutes of the PCC either at the APCM or PCC meetings. With the previous years co-option ending at the APCM in April 2013, and not having been co-opted in the PCC meetings that have followed neither Dave Jones nor Fr. Dennis Smith are current members of the PCC.. Referencing the Minutes since April, and the recorded names of the attendees this has obviously not been understood and they are recorded down as being full PCC members. 1.6 Other Members From the Minutes of the 2009 APCM a wrongful impediment to election onto the PCC is recorded in the Minutes: The nomination from Val Broom was crossed off as married couples cannot serve on PCC at the same time, and Mike (Broom) still has a term to run. This was explained to Val who withdrew her nomination There is no such impediment in the Church Representation Rules. It is not clear from where such advice came from, or who conveyed this wrong information into the meeting as no name was recorded. In the APCM Minutes of each year, with the exception of 2010 & 2013, there was no need for elections onto the PCC by virtue of the same number of people being proposed, as were places on the PCC. In 2010 there were four lay vacancies, but with no nominations, thus during the year some co-options took place. In 2013 there was an election as eight people stood for the lay election going for 4 places. Two of the four, Chris Price and Rich Walker, were long standing members of the Finance Committee, but not full members of the PCC until the 2013 ACPM elections. 2. Sub-committees The Membership of the PCC Sub-Committees is clarified by election each year at the APCM. Between 2008 and 2012 there were the following Committees: Standing Committee Finance Committee Premises Committee Mission Group Catering Team 5

6 In 2010 and 2011 there was in addition to this list a Hall Committee. The Vicar is listed as being ex-offico on all the Committees. After reviewing the PCC Minutes the only two Committees that regularly report to the PCC are the Finance and Premises Committees. Minutes for the meeting of the Standing Committee are only evident on three occasions, which seems to indicate that it did not meet regularly. Only following the September and October 2013 PCC s when the temporary Chair of the PCC, the Archdeacon of Liverpool, spoke of the need for the Standing Committee to meet to help set the parish agenda. In a search of the paperwork given for this Review, no Terms of Reference for any of the committees was found, and no reference was given for them being in existence in any of the Minutes. An attempted clarification of the powers and functions of the Finance Committee were discussed in the 29th April 2013 meeting of the PCC. This clarification was raised by Father Simon Tibbs, who also asked the PCC to set financial limits on expenditure with out reference to the PCC. This was set at 500 which was an adjustment from Standing Committee The membership of this Committee is the usual Vicar, Churchwardens, PCC Treasurer and PCC Secretary, accept for 2008 when an additional 2 places were allocated to PCC s members although no names were attached. Only four sets of Minutes were handed over for the Review, and with reference to the PCC Minutes only on two occasions is there a reference to the Standing Committee meeting and a noting of their decisions, (8 th November 2010 & 22 nd May On the 29 th April 2013 the membership of the Standing Committee is discussed at the PCC meeting. Following a request and encouragement by the Archdeacon, who Chaired the PCC meetings on the 2 nd September and 3 rd October, there is a direct reference for need for the Standing Committee to meet to discuss and agree the Agenda for the following PCC meeting. 2.2 Finance Committee For the period from the membership of this group is set out as having the Treasurer as Chair, the Vicar and Churchwardens as ex-officio members, and between 4 or 5 additional members. For this period of time the additional members of the Finance Committee have been Leo Appleton, Gareth Griffiths, Peter Garner who have also been PCC Members and Chris Price and Rick Walker who from were not members of the PCC. In the 2013 APCM both Chris Price and Rick Walker were elected as full members of the PCC. In a note from the Treasurer Dave Jones that accompanied the PCC Papers under review he stated: During much of , the work of the Finance Committee was taken over by, first, the Sustainability Group and then that developed into the Financial Well-being Group. Both groups arose out of discussions at the joint PCC s Away Days and comprised 6

7 members of both SF and SM. The Stewardship Committee in late 2011 into 2012 discussed general financial matters. Since May 2013, the Finance Committee has been renamed Finance and Stewardship Committee 2.3 Premises Committee The designated Chair of this Committee has been one of the Church Wardens with a majority membership drawn from the Members of the PCC. In addition to the Vicar, the Churchwardens are also ex-offico members. 2.4 Hall Committee This Committee is listed only in the 2010 and 2011 Annual Reports. The Committee was chaired by a non-pcc member, but the majority membership was drawn from members of the PCC. 2.5 Mission Group Chaired by one of the Readers in 2008 the Group consisted of 14 members of which 5 were not on the PCC. Since that year the number on the Group has reduced down to 10 of which 6 are non-pcc members and the other 4, the Vicar, 2 Readers and NSM. 2.6 Catering Team The Team has had a membership of about 14 members, 2 or 3 of which have been PCC members (one being the Vicar), but the majority of this group have not been on the PCC. 3. Meetings of the PCC In addition to the APCM the recorded meetings of the PCC are laid out in the chart below. In most years there have been 4 or 5 meetings. As clarified by the Treasurer, the Annual Report and Accounts is voted on by the PCC in a meeting just before the ACPM. There are no Minutes and no written confirmation of these meetings taking place, and no record of acceptance of the accounts by the PCC prior to the APCM. Despite the size of the PCC as laid out in the Table above, the actual number of people attending has been far less. Between 25 th November 2009 and 20 th September 2011 the average attendance was just over 14 people. From that time on the average attendance grew to 21. Numbers of observers have been present in meetings, and it is not always clear why they are in attendance. Despite being observers on a few occasions their questions or comments are recorded in the Minutes. There have been a few emergency meetings of the PCC called. These have been mostly due to issues around finances and in particular the struggle to pay the Diocesan Share. This has been a focussed concern through many of the PCC Minutes. The PCC s meetings that have taken place within the period of review are presented in the chart below. The chart also shows the attendance figures, apologies for absence and others who have attended the meetings. 7

8 Date of PCC Type of PCC Meeting Attendance Apologies Observers to the PCC Total /11/09 Normal /1/10 Normal /2/10 Emergency /7/10 Normal /9/10 Normal /11/10 Normal /2/11 Normal /2/11 Extra /6/11 Emergency /7/11 Normal /9/11 Normal /11/11 Normal /2/12 Normal /7/12 Normal /7/12 Joint Benefice 10/9/12 Section 12 18/9/12 Normal /11/12 Normal /2/13 Normal /4/13 Normal /7/13 Normal /9/13 Normal /10/13 Normal Building Issues and the Premises Committee The Committee reports regularly and in detail to the PCC. Minutes are evident, and report on issues to do with the buildings and church plant. Financial costing s of work that needs to be done are clearly written up and presented to the PCC. The membership of the Committee is presented here in the table (shaded boxes designate PCC Members). 8

9 Premises Committee Denotes PCC Member Leo Appleton Christine Spence Michael Broom Ken Bramwell Ruth Winder Michael Holland Kari Dobson Christine Spence Michael Broom Ken Bramwell Mike Taylor Michael Holland Ruth Winder Christine Christine Christine Spence Spence Spence Michael Mike Michael Broom Carr Broom Ken Maureen Maureen Bramwell Madden Madden Mike Michael Mike Carr Holland Carr Maureen Michael Ken Madden Broom Bramwell Michael Ken Helen Kibby Holland Bramwell Ruth Winder Ruth Winder Ruth Winder Simon Tibbs Ruth Winder Christine Spence Michael Broom Mike Carr Maureen Madden Ken Bramwell 5. Financial Reporting and the Finance Committee 3 As clearly evidenced in the Minutes of the PCC Meetings, regular reporting on the finances has occurred in different level of depth. An Independent Examiner, Mr Ray Bissex 4, has properly examined all the accounts each year, and the accounts are ordered well. From the additional financial paperwork given for review, they also demonstrate good order and in particular when the Financial Wellbeing Group was meeting, some helpful and good spread sheets were produced to help give the reader useful information. 5.1 Membership of the Committee. The membership of the Finance Committee has been relatively stable, with Gareth Griffiths, Chris Price and Rick Walker being non-members of the PCC, until this year when the latter two were elected onto the PCC. The full membership is outlined in the following table (the shaded area indicating membership of the PCC). 3 As already pointed out the Finance Committee has gone through various different Title changes 4 Ray Bissex has recently been Licensed as a Reader in St Mary s Waterloo. 9

10 Denotes PCC Finance Committee Member Dave Jones Dave Jones Dave Jones Dave Jones Dave Jones Dave Jones Simon Tibbs Kari Dobson Maureen Madden Maureen Madden Maureen Madden Maureen Madden Maureen Madden Gareth Griffiths Peter Garner Peter Garner Peter Garner Peter Garner Peter Garner Leo Appleton Gareth Griffiths Gareth Griffiths Leo Appleton Leo Appleton Rick Walker Chris Leo Leo Chris Chris Chris Price Rick Walker Appleton Chris Price Rick Walker Appleton Chris Price Rick Walker Price Rick Walker Price Rick Walker Gareth Griffiths Price Gareth Griffiths 5.2 Reports The written reports contained with the PCC Minutes between where copies of the Reports of the Finance Committee, and then latterly under the heading, Treasurers Report. Accompanying the Minutes under review was also a smaller collection of 8 Treasurers Reports. When referencing both it can be seen that 7 of the Reports are included mostly verbatim straight into the PCC Minutes, and also that the Treasurer had given his apologies and had not been present at the meetings in person to present. The final written Report was for the meeting on 26 th April 2013, where the Treasurer was present. Referencing the other PCC Minutes the reports have not always had the same depth, although the Bank Balance at that time is mostly included in the Report as well as statements regarding financial monitoring. In regard to the Finance Committee only 2 sets of Minutes were made available for the whole of period since They were the 14 th November 2011 & 24 th June 2013 and both indicate greater depth of discussion. There is no reference and no recognition of the Minutes of the 14 th November 2011 Committee appearing in the Minutes of the PCC. By contrast the June 2013 Minutes of the Finance Committee are indicated as being distributed to all the Members of the PCC. This is a meeting when Father Simon Tibbs is not recorded as being present, and no apologies are noted. Summaries of the main details of the meeting are included in the PCC Minutes. 5.3 How are finance decisions made? 10

11 In reference to financial decision making the picture is not all together clear, as it is patchy and lacks recorded detail in the PCC Minutes. There are omissions in detail in regard to some very important matters concerning the employment of staff, and the details surrounding the repayment and payment of the Parish to the Diocese. In the absence of any Terms of Reference or clear delegations either in the Minutes of the PCC or Finance Committee, it is not obvious who has made decisions although a reference in the Minutes of the PCC Meeting that took place on 21 st June 2011 may give an indication: Father welcomed new members and thanked all present in view of such short notice. He then went on to explain that normally the issues to be discussed and decided upon would have been dealt with by the Finance Committee and the results forwarded to the PCC but because of St Faiths charity status the situation was now reversed: decision-making was now with PCC, who would forward the results of their discussions to the Finance Committee. This gives an indication of the way that the Finance Committee were making decisions up until that moment, but due to the lack of detail in subsequent PCC Minutes it gives an indication that it did not stop. In addition, the comment that because of St Faiths Charity Status the situation was now to be reversed, is incorrect because the PCC has always been in the position of holding authority and accountability in the management and control of PCC funds and resources. Only in one place is it recorded that a standing order was being put in place and that appears in the Minutes of the PCC meeting of 29 th April 2013 when Father Simon Tibbs raised the following issue. to upgrade a cap on expenditure of 250 to that of 500 for a single item or service: anything beyond 500 will need the approval of the PCC or Standing Committee. 5.4 Omissions As already indicated certain key items of expenditure, although they find reference in name, are not expanded upon or explained in the PCC Minutes in detail. Because the PCC is the Legal Body with authority it would be expected for all major decisions on financial matters to be set before the PCC and formally agreed. It is also important that the PCC as the employer should take full responsibility for all the details and contracts of employment. I found no record of details put before the PCC e.g. Contracts of employment, salaries, etc. An example of the lack of detail includes a comment made in the Minutes of 18 th September The statement indicated that the Parish share had now been paid in full each month and that there was no outstanding debt to the diocese (The sum of money as indicated in the Annual Accounts is around 30,000). I could find no formal decision by the PCC to explain how that had been achieved. Does that mean the Finance Committee had made the decision alone? There are references in the annual report to Legacies being left to the church, and again the assumption seems to be there that the Finance Committee took the 11

12 decision as to how the money would be spent, as there is no formal proposal and decision made to the PCC that is recorded in the Minutes. From the reference quoted above - normally the issues to be discussed and decided upon would have been dealt with by the Finance Committee and the results forwarded to the PCC, and noting the lack of detail in the PCC Minutes, these are examples where it would seem the practice has continued. The Finance Committee has made decisions and reported them to the PCC, as distinct from the Committee making recommendations to the PCC, which the PCC has to formally propose and vote on. The above quote is recorded under the Vicars report, but repeated in the Treasurers report with the word recommended being emphasised. In the Report on 29 th April 2013, David Jones writes the following (the underlining is his): Some years ago, a cap on expenditure of 250 was approved by the PCC for the purchase of a single item or service. Beyond that, PCC (or Standing Committee) approval would be required. It is recommended that the figure be updated to 500. Decisions around the employment, retention and ending of employment are referenced, but the brevity causes more questions to be asked, and actually possibly exposes a level of risk to the PCC as an employer as to whether or not they have acted properly, irrespective of whether the Finance Committee have discussed the detail and made the decisions. Here are some examples drawn from the Minutes and Annual Reports: PCC Minute 20 th July 2010 Item 8: Parish office manager: this new post has been created with a view to reducing expenditure in the United benefice. A Standing committee from both churches drew up a job description and 24 applications were received from the subsequent advert. The successful applicant, Mr Geoff Dunn, is now in post. The diocese has agreed to contribute towards his salary the sum of 2000 originally earmarked for the salary of Mrs Liz Mooney, whose post is now closed. APCM Chairman s Report 2011 Item 6: Since the last APCM we terminated the contract of our Parish Administrator, Liz Mooney, on financial grounds. The PCC s then created a new post, that of Parish Office Manager, and appointed Geoff Dunn to it. I think it is fair to say that we are all very happy indeed with his work although the subsidy given from the Diocese has now finished. In the Minutes of an Emergency PCC Meeting on 21 st June 2011, the resignation of the Director of Music and Assistant organist were noted, and that they had a discussion around possible replacements for Sam Austin, the Director of Music and the assistant organist, Stephen Hargreaves. The Treasurer is recorded as giving his apologies for the meeting. There is no noted record of any monetary values, no reference to questioning around what the PCC could afford, and no reference to terms and conditions and contract. Yet it is noted that agreement was made to replace Sam Austin but not Stephen Hargreaves 12

13 due to financial position. Also in the meeting it is reported that the Parish office Manager s current contract would expire at the end of June, with the decision that he be re-employed for 12 months. It is clear that the Parish has been under severe financial pressure for a number of years, most significantly due to issues regarding the buildings and the Diocesan Parish Share. It is noted that the Accounts have all been Independently Examined, but within the accounts themselves there is expenditure, which could have been brought under more scrutiny by the PCC, in the context of them trying to cut expenditure. The lack of detail recorded in the Minutes of the PCC and the blurred lines of authority between the PCC and Finance Committee makes it difficult to come to a view as to whether or not the Members of the PCC (Trustees of the Charity) have confidence and an appropriate level of understanding in the exercise of decisions made in their name regarding the employment of staff and the expenditure of the income of the Church. Canon Roger Driver Area Dean of Bootle Deanery 23 rd October