1. Working Policy 101 GCWP101 2012 Syllabus

2. Working Policy 101 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 description GCWP101 is an introductory course providing an overview of the General Conference Working Policy. Guest experts will explain the organization and structure of W orking Policy. The uses and place of W orking Policy in the life of the Church will be demonstrated through skits and dialogue. Course outline Introduction “It’s in the Book” Overview of Working Policy Organization 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 objectives Upon successful completion of this course the student will: 1.Understand the organization and structure of W orking Policy. 2.Be able to locate needed information in W orking Policy. 3.Appreciate the value of W orking Policy for church life. Course requirements 1.Class attendance is essential for this course – 50% of the grade. 2.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

3. Working Policy 101 IDE Policies Illustration – Missionary Concerns Overview – Professor Rosa Banks Quiz – Professor G T Ng Financial Policies Illustration – Creative Investments Overview – Professor Daisy Orion Quiz – Professor G T Ng Questions and Answers Conclusion Report Cards PROGRAM Introduction Scene One – Who produces W orking Policy Scene Two – Working Policy is not a Bible Scene Three – Uses of W orking Policy Overview of GC Working Policy Organization and Administration Illustration – Dividing Unions Overview – Professor Lowell Cooper Quiz – Professor G T Ng Departments and Agencies Illustration – Dual Credentials Overview – Professor David Trim Quiz – Professor G T Ng Ministry and Training Illustration – Pastoral Education Overview – Professor Jonas Arrais Quiz – Professor G T Ng

4. Working Policy 101 IT’S IN THE BOOK Scene 1 An Adventist Book Center, Friday afternoon

5. Working Policy 101 IT’S IN THE BOOK Scene 2 Friday night, a small group opening Sabbath

6. Working Policy 101 IT’S IN THE BOOK Scene 3 A Saturday night party, ten days later

7. Working Policy 101 ORGANIZATION AND ADMINISTRATION Professor Lowell Cooper

8. Working Policy 101 “WHAT’S IN THE POLICY?” Understanding General Conference Working Policy

9. 101 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.

10. Working Policy 101 POLICY’S PURPOSE? To protect the organization from: individuals (autocratic, Lone Ranger types) merely reactive decision-making widely differing patterns of action

11. Working Policy 101 RULE OR GUIDELINE? Presents “agreed-upon” practices. Dynamic—policies can be changed!

12. Working Policy 101 Mission, Vision, Values Organization and Administration Division Administration Model Constitutions & Bylaws Denominational Employees

13. Working Policy 101 SECTION A: Mission Vision Values

14. Working Policy 101 SECTION B: Organization and Administration Foundation and Structure How the Church is designed How it operates

15. Working Policy 101 Operating principles Outline of organization The role of policy Administrative relationships

16. Working Policy 101 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

17. Working Policy 101 SECTION C: Division territories Division councils and policy Union and local conference sessions Interdivision employees Training of employees Polygamy Aviation

18. Working Policy 101 SECTION D: Model governance documents (constitutions and operating policies)

19. Working Policy 101 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

20. Working Policy 101 ORGANIZATION AND ADMINISTRATION Quiz Professor G.T. Ng

21. Working Policy 101 DEPARTMENTS AND AGENCIES Professor David Trim

22. Working Policy 101 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”

23. Working Policy 101 8)FP – Publishing Ministries 9)FR – Sabbath School & Personal Ministries 10)FS – Stewardship Ministries 11)FT – Legal Association & Trust Services 12)FW – Women’s Ministries 13)FY – Youth Ministries “F” POLICIES: DEPARTMENTS 1)FA – Adventist Chaplaincy Ministries 2)FB – Children’s Ministries 3)FC – Communication 4)FE – Education 5)FF – Family Ministries 6)FH – Health Ministries 7)FL – Public Affairs & Religious Liberty

24. Working Policy 101 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.

25. Working Policy 101 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

26. Working Policy 101 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.

27. Working Policy 101 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

28. Working Policy 101 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

29. Working Policy 101 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)

30. Working Policy 101 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

31. Working Policy 101 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

32. Working Policy 101 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 )

33. Working Policy 101 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 )

34. Working Policy 101 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

35. Working Policy 101 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 )

36. Working Policy 101 DEPARTMENTS AND AGENCIES Quiz Professor G.T. Ng

37. Working Policy 101 MINISTRY AND TRAINING Professor Jonas Arrais

38. Working Policy 101 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.

39. Working Policy 101 L10 MINISTERIAL INTERNSHIP L 10 05 Purpose of Plan L 10 10 Definition of term “Ministerial Internship”

40. Working Policy 101 L15 MINISTERIAL INTERNSHIP – PROCEDURES L 15 05 Length of Internship L 15 10 Number of Internships L 15 15 Wages of Interns

41. Working Policy 101 L15 MINISTERIAL INTERNSHIP – PROCEDURES L 15 20 Rent Subsidies L 15 25 Financial Plan L 15 30 Licensure

42. Working Policy 101 L15 MINISTERIAL INTERNSHIP – PROCEDURES L 15 35 Service Record L 15 40 Conference/Mission/Field Responsibility L 15 45 Qualifications of Candidates

43. Working Policy 101 L15 MINISTERIAL INTERNSHIP – PROCEDURES L 15 50 Appointment of Interns L 15 55 Calling of Ministerial interns

44. Working Policy 101 L20 SEVENTH-DAY ADVENTIST THEOLOGICAL SEMINARY

45. Working Policy 101 L25 LICENSED MINISTER – ROLE AND STATUS L 25 05 Responsibility and Authority L 25 10 Delegating Ministerial Functions L 25 15 Authorizing Ministerial Functions

46. Working Policy 101 L25 LICENSED MINISTER – ROLE AND STATUS L 25 20 Review of Development L 25 25 Withdrawing Authorization L 25 30 Ordination

47. Working Policy 101 L30 MINISTERS FROM OTHER DENOMINATIONS

48. Working Policy 101 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

49. Working Policy 101 L35 QUALIFICATIONS FOR ORDINATION TO THE MINISTRY L 35 20 Examination of Candidates L 35 25 Service Before Ordination L 35 30 Fostering Growth

50. Working Policy 101 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

51. Working Policy 101 L40 ORDAINED TO WORLD CHURCH

52. Working Policy 101 L45 PROCEDURE IN AUTHORIZING ORDINATION L 45 05 Authorization L 45 10 Ordination Ceremony – Time/Place L 45 15 Ordination in Local Missions/Field

53. Working Policy 101 L50 EXAMINATION OF CANDIDATES FOR ORDINATION

54. Working Policy 101 L55 ORDINATION SERVICE

55. Working Policy 101 L60 SAFEGUARDING CREDENTIALS – THE INTEGRITY OF 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

56. Working Policy 101 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

57. Working Policy 101 MINISTRY AND TRAINING Quiz Professor G.T. Ng

58. Working Policy 101 IDE POLICIES Professor Rosa Banks

59. Working Policy 101 FROM EVERYWHERE TO EVERYWHERE

60. Working Policy 101 When we send IDEs around the world, we need policies to guide us.

61. Working Policy 101 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)

62. Working Policy 101 SEVENTH-DAY ADVENTISTS – Working Policies M - Q 05 - General Provisions 10 - Terms of Service 15 - Special Appointments 25 – Furloughs & OALs 30 – Furlough Arrangements 35 – OAL Arrangements 40 – Schedule Service Cycles 45 – Eligibility for ALs 50 – AL – Financial Arrangements 55 – Freight Allowance 60 – Bag. Allow. Furloughs 65 – Baggage Allow. OAL 70 – Ticket Purchase 75 – Health Evaluations 80 – Plans for Service/Study 85 – Responsibility to the BD 90 – AL-Gen. Prov. Rationale 95 – Length of Service 100 – Annual Leave Arrangements 105 – Length of Service & AL 110 – AL – Fin. Arrangements 115 – AL Ticket Purchase & Travel Arrangements P TERMS OF INTERDIVISION SERVICE AND ANNUAL LEAVES O5 – PR Arrangements 10 – PR General Provisions 15 – Ticket Purchase and Travel Arrangements 20 – Rehabilitation Allowance 25 – Freight Allowance 30 – Baggage Allowance 35 – Health Evaluations/ Healthcare Assistance 40 - Extended Interdivision Service Allowance 45 – Financial Settlement With IDEs and Children Who Elect Not to Return To the BD or Family Adopted Division, Where Applicable 50 – Placing Permanently Returned IDEs 55 – Discontinuance of Interdivision Employment Q INTERDIVISION PERMANENT RETURNS 05 - Interdivision Service 10 – Interdivision Policies 15 – Definition of Terms 20 – IDE Budget Code Plan 25 – The IDE Family 30 – IDE Spouse Employment 35 – Interdivision Calls 40 – Deferred Missionary Appointment (DMA) 45 – Transfer Personal Funds 50 - Medical Employees – Calling & Supplying 55 – Self-Supporting Physicians and Dentists 60 – Special Interdivision Transfers 65 – Expenses of IDEs Transferred Between Divisions 70 – Health Evaluations & Clearance 75 – Return of Deceased IDE or Family Member 80 – Taxation for IDEs M INTERDIVISION SERVICE POLICIES – GENERAL 05 – Arrangement with Inter- Division Appointees 10 – Children Accompanying Parents 15 – SDA Institute World Mission 20 – Amortization General/ Professional Educational Indebtedness 25 – Financial Assistance on Indebtedness 30 - Fin. Asst. DMAs, LLU 35 – DMA Approved Res., NA 40 - Residency, Other Divisions 45 – Financial Asst. to Nurses 50 – Freight Allowance 55 – Baggage Allowance 60 – Personal Accident Ins. 65 - Ticket Purchase/Travel Arrangements 70 – Outfitting Allowance 75 – Miscellaneous Financial Provisions N INTERDIVISION APPOINTEES 05 – Provision for Housing 10 – Language Study 15 – IDE Remuneration 20 – HDC Allowances 25 – NI/Social Security 30 – Intra-division Move 35 – Nondenominational Employment 40 – Definitions: Elementary, Secondary, College/Univ. 45 – Students Eligible for Financial Assistance 50 – Educ. Allow. Elementary 55 – Educ. Allow. Secondary 60 – Educ. Allowance-College/ University 65 – Visits of Older Children 70 – Tuition Discounts 75 – Medical Expense 80 – Temporary Evacuation 85 – Vacations Within HDC 90 – Child Adoption 95 – IDE Living Apart/Spouse 100 – Single IDE Who Marries 105 – Professional Fees O INTERDIVISION EMPLOYEES IN THE FIELD GENERAL CONFERENCE OF Interdivision Employee Policies

63. Working Policy 101 65 – Expenses of IDEs Transferred Between Divisions 70 – Health Evaluations & Clearance 75 – Return of Deceased IDE or Family Member 80 – Taxation for IDEs M INTERDIVISION SERVICE POLICIES – GENERAL 05 - Interdivision Service 10 – Interdivision Policies 15 – Definition of Terms 20 – IDE Budget Code Plan 25 – The IDE Family 30 – IDE Spouse Employment 35 – Interdivision Calls 40 – Deferred Missionary Appointment (DMA) 45 – Transfer Personal Funds 50 - Medical Employees – Calling & Supplying 55 – Self-Supporting Physicians and Dentists 60 – Special Interdivision Transfers

64. Working Policy 101 N INTERDIVISION APPOINTEES 05 – Arrangement with Inter- Division Appointees 10 – Children Accompanying Parents 15 – SDA Institute World Mission 20 – Amortization General/ Professional Educational Indebtedness 25 – Financial Assistance on Indebtedness 30 - Fin. Asst. DMAs, LLU 35 – DMA Approved Res., NA 40 - Residency, Other Divisions 45 – Financial Asst. to Nurses 50 – Freight Allowance 55 – Baggage Allowance 60 – Personal Accident Ins. 65 - Ticket Purchase/Travel Arrangements 70 – Outfitting Allowance 75 – Miscellaneous Financial Provisions

65. Working Policy 101 50 – Educational Allowance Elementary 55 – Educational Allowance Secondary 60 – Educational Allowance College/University 65 – Visits of Older Children 70 - Tuition Discounts 75 – Medical Expense 80 – Temporary Evacuation 85 – Vacations Within HDC 90 – Child Adoption 95 – IDE Living Apart/Spouse 100 – Single IDE Who Marries 105 – Professional Fees O INTERDIVISION EMPLOYEES IN THE FIELD 05 – Provision for Housing 10 – Language Study 15 – IDE Remuneration 20 – HDC Allowances 25 – NI/Social Security 30 – Intra-division Move 35 – Nondemominational Employment 40 – Definitions: Elementary, Secondary, College/University 45 – Students Eligible for Financial Assistance

66. Working Policy 101 P TERMS OF INTERDIVISION SERVICE AND ANNUAL LEAVES 05 - General Provisions 10 - Terms of Service 15 - Special Appointments 25 – Furloughs & OALs 30 – Furlough Arrangements 35 – OAL Arrangements 40 – Schedule Service Cycles 45 – Eligibility for ALs 50 – AL – Financial Arrangements 55 – Freight Allowance 60 – Bag. Allow. Furloughs 65 – Baggage Allow. OAL 70 – Ticket Purchase 75 – Health Evaluations 80 – Plans for Service/Study 85 – Responsibility to the BD 90 – AL-Gen. Prov. Rationale 95 – Length of Service 100 – Annual Leave Arrangements 105 – Length of Service & AL 110 – AL – Fin. Arrangements 115 – AL Ticket Purchase & Travel Arrangements

67. Working Policy 101 Q INTERDIVISION PERMANENT RETURNS O5 – PR Arrangements 10 – PR General Provisions 15 – Ticket Purchase and Travel Arrangements 20 – Rehabilitation Allowance 25 – Freight Allowance 30 – Baggage Allowance 35 – Health Evaluations/ Healthcare Assistance 40 - Extended Interdivision Service Allowance 45 – Financial Settlement With IDEs and Children Who Elect Not to Return To the BD or Family Adopted Division, Where Applicable 50 – Placing Permanently Returned IDEs 55 – Discontinuance of Interdivision Employment

68. Working Policy 101 *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 EMPLOYEES With Emphasis On The Major Responsibilities of Resources & (Revised on August SELECTED 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 sent through the Division to GC Secretariat (WP E 25-15) DO GC POLICIES DISCOURAGE 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 RESPONSIBIL ITIES 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 RESPONSIB ILITIES OF THE INTERNATI ONAL PERSONNE L RESOURCE S 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 employment termination, & begin shipping arrangements TO INTERDIVISION SERVICE GC Secretariat and the International Personnel Services 30, 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.

69. Working Policy 101 WHEN WE SEND VOLUNTEERS AROUND THE WORLD We also need policies to guide us.

70. Working Policy 101 R 05Adventist 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 ADVENTISTS VOLUNTEER 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

71. Working Policy 101 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.

72. Working Policy 101 IDE POLICIES Quiz Professor G.T. Ng

73. Working Policy 101 FINANCIAL POLICIES Professor Daisy Orion

74. Working Policy 101 “S” POLICIES ARE GENERAL FINANCIAL POLICIES

75. Working Policy 101 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

76. Working Policy 101 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

77. Working Policy 101 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.

78. Working Policy 101 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

79. Working Policy 101 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!

80. Working Policy 101 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

81. Working Policy 101 S 24 – FINANCIAL RATIOS Use of ratios - basic measure of financial health: – Liquidity – Asset Turnover Ratios – Financial Leverage Ratios – Profitability – Working Capital

82. Working Policy 101 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.

83. Working Policy 101 S 34 – OVERSIGHT COMMITTEES Must have: Audit Review Committee (no employees) Compensation Review Committee Financial Statement Review Committee Financial Survey Commission

84. Working Policy 101 S 37 – GENERAL CONFERENCE FUNDS Sources of funds Remittances to the General Conference Funds that may be held by the GC

85. Working Policy 101 S 38 – GC BUDGET PREPARATION and IMPLEMENTATION 05 – Treasury 10 – Budget Preparation – Based on cap 15 – Approval 20 – Implementation

86. Working Policy 101 S 39 – GC APPROPRIATIONS Requests from Divisions should be in by August 1 each year. Appropriations are made at Annual Councils

87. Working Policy 101 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

88. Working Policy 101 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

89. Working Policy 101 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.

90. Working Policy 101 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

91. Working Policy 101 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

92. Working Policy 101 S 60 – INSURANCE POLICIES Coverage should be in Harmony with working Policy S 60 05 Property Liability Other Applicable Insurance

93. Working Policy 101 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

94. Working Policy 101 S 65 – RECORDING OF CONTINGENT LIABILITIES 05 – Contingent Liabilities 10 – Errors and Omissions Liability

95. Working Policy 101 S 70 - DEPRECIATION 05 – Depreciation Expense – Operating Expenses – Use of Depreciation

96. Working Policy 101 S 75 – ALIEN SPONSORSHIPS TO THE UNITED STATES OF AMERICA GC ADCOM – tasked to act in granting sponsorships on behalf of the General Conference

97. Working Policy 101 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

98. Working Policy 101 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

99. Working Policy 101 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

100. Working Policy 101 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!

101. Working Policy 101 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

102. Working Policy 101 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

103. Working Policy 101 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

104. Working Policy 101 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

105. Working Policy 101 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

106. Working Policy 101 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

107. Working Policy 101 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

108. Working Policy 101 V – Tithes & Offerings, con’t V 50 Camp Meeting Mission Offering V 55 Special Donations and Bequests

109. Working Policy 101 W – NOW DELETED Incorporated in section “V” of the policy book.

110. Working Policy 101 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

111. Working Policy 101 Z – RETIREMENT PLANS Contributions comply with applicable division policy

112. Working Policy 101 Can’t remember where all these policies are??

113. Working Policy 101 Thinking of Finances?? Think of $$$$$$$, Think of “S”

114. Working Policy 101 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”

115. Working Policy 101 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

116. Working Policy 101 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!

117. Working Policy 101 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.

118. Working Policy 101 “Y” What is in the “Y” Policy?? Remuneration of and assistance to employees. Y= YES! …..YEES!

119. Working Policy 101 LAST BUT NOT THE LEAST Z policy ---- zzzzzzzzzzz you are ready to sleep, to retire -- These are your retirement policies! (DIVISION RETIREMENT POLICIES)

120. Working Policy 101 FINANCIAL POLICIES Quiz Professor G.T. Ng

121. Working Policy 101 CONCLUDING REMARKS

122. Working Policy 101 REPORT CARDS