2022-26 Op. Manual.Amend. 2024

OPERATIONS MANUAL GENERAL

COUNCIL

2022 – 2026

AmendedSeptember2024

GENERAL COUNCIL Operations

Manual

Table of Contents

Section One Council and Cabinet

Pages3-4

GeneralCouncil

Page5 CabinetofSuperintendents

Section Two General Boards

Page6

Page7

BoardofChristianEducation

BoardofDisciplineRevision

Pages8-9 BoardofEvangelism

Pages10-59 BoardofFinance

Page60 BoardofMinisterialEducation

Page61 BoardofMinisterialRelations

Page62

BoardofTrustees

Pages63-64 BoardofWorldMissions

Pages65-66 BoardofYouthandChildren’sMinistries

Section Three Committees

Page67

ConflictResolutionCommittee

Page67 CourtofAppealsCommittee

Page68 HistoricalCommittee

Page68 MinutesCommittee

Page68 ProgramCommittee

Page68 ResolutionsCommittee

Pages68-71 NominatingCommittee

Section Four Departments

Pages72-73 DepartmentofChaplains

Page74 DepartmentofMulticulturalMinistries

Page75 DepartmentofPrayer

Page76 DepartmentofPublications

Page77 DepartmentofStewardshipandDevelopment

Section Five Auxiliaries

Page78 EvangelicalMethodistMen

Page79 EvangelicalMethodistWomen

Section Six Office Manual

Pages80-84 HeadquartersOfficeManual

GENERAL COUNCIL Operations Manual

SECTION ONE

General Policies of the General Council

1. Theexpenditureoffundsfromanysourcethatexceeds$10,000willneedapprovalofthe GeneralSuperintendent.Theexpenditureoffundsfromanysourcethatexceeds$20,000will needapprovaloftheGeneralSuperintendentandtheChairoftheGeneralBoardofFinance Theexpenditureoffundsfromanysourcethatexceeds$25,000willneedapprovalofthe GeneralCouncil.

2. Alleffortstosecuretheleastexpensivemodeoftransportationforministryneedsshallbe made.WhennecessarytheGeneralSecretarywillassistinthisarea.Thecorporaterental companyis National Car Rental.

3. Allfundsdisbursedingiftsofkindtoalocalchurchwillbeconsideredagrantinaccordance withthe Discipline andappropriateformfromtheFormsCommitteesignedandfiledbythe GeneralSecretary.

4. Thecreationsonasocialsite,suchasFacebookbyaboardordepartment,functionasaplace forresourcesandinformationdealingwiththeirparticularareaofministry.Itisnotaplaceto conductboard/departmentbusiness,minutes,orinformationaboutaspecificlocalchurch’s ministryassessment.Thecreationofsuchsitesneedstheapprovaloftherespectiveboardor departmentandmustbemonitoredbyoneofthemembers.

5. Theonlyauthorizedsourceforofficialcommunicationfromandforthedenominationis InternationalHeadquarters.Thechairofeachboardisencouragedtoprovidenewsand ministryitemstotheGeneralSuperintendent’sAdministrativeAssistant,tobeincludedin variouscommunicationsfromHeadquarters,andthe Connection magazine.

6. GeneralCouncilmembers’travelexpenseswillbepaidthroughtheirboardfundsfortheir eventsandmeetings.

7. AllGeneralBoardmembersareexpectedtoparticipateintheministryoftheboard.Non participationwillresultinbeingreplacedupontherecommendationofthechairtothe GeneralSuperintendent.

8. GrantsandfinancialfundswillonlybeusedinNorthAmerica,unlessadesignatedofferingis receivedforaninternationalMissionConferenceorcountry.

9. TheAnnualface-to-faceGeneralCouncilmeetingwillbeheldinSeptemberwiththespecific datessetbytheGeneralConferenceProgramCommittee Shorterquarterlymeetingsmaybe heldelectronically.

10. Allmemberswillannuallysignthe Conflict of Interest form.

11.GeneralCouncilmaintainsthe Operations Manual withanannualreview.

12.GeneralCouncildutiesarefoundin Discipline paragraphs: ¶606 TheGeneralCouncilshallbecomposedof:

(1)InternationalGeneralSuperintendent(s)

(2)GeneralConferenceSecretary

(3)GeneralConferenceLayLeader

(4)ChairpersonsofGeneralConferenceBoards

(5)ConferenceSuperintendents

(6)GeneralConferencePresidentsofEvangelicalMethodistMen,WomenandYouth

(7)GlobalConferenceGeneralSuperintendent(s)

¶612. ProcedureforconductingGeneralCouncilbusinessbycorrespondenceshallbeas follows:

(1)AGeneralSuperintendent,orfivemembersofthebody,shallbeempoweredto properlysetamatterbeforetheGeneralCouncil.

(2)TheGeneralConferenceSecretaryshallprocessthetransactionofbusiness.

(3)Allballotsmustbereturnedwithintendaysfromthedateofmailingdatedby electronicdatestamp.

(4)Noticeofanyactiontakenshallbesenttoeachministerandchurch.

Paragraphsforreference:

¶204,206,213,402,422,427,501,503,602,606,607,608,609,610,611,612,613,623,624,632, 637,643,644,804,805,831,834,843,844,857,864,866,867,868,870,871,886,901,1002,1011, 1012,1025,1101-1108.

13.AllinternationalmissiontripssanctionedbytheEMCwillbetheresponsibilityoftheGeneral BoardofWorldMissions.

14.AllhomelandmissionsintheUSAwillbetheresponsibilityoftheGeneralBoardplanningthe event.

15.TheGeneralBoardofYouth&Children’sMinistrieswillrecommendtotheGeneralCouncil thenumberofyouthcampsandlocations.TheGeneralCouncilwillapprovethelocationand numberofyouthcampsatthebeginningofeachquadrenniumwithareviewatthemid quadrenniummeeting.

CABINET OF SUPERINTENDENTS

1. TheSuperintendents’BenevolenceFund(SBF)andtheSuperintendents’DiscretionaryFund (SDF)willbedisbursedbytheCabinet.TheSBFisabudgeteditemfortheemergencyneedsof alocalpastorinprovidingtemporaryfinancialreliefforpaymentofhealthinsurance,etc.

2. TheSDFistobemaintainedannuallyatthe$20,000leveltoassistlocalchurchesincrisisand willbedistributedbytheCabinetforachurchcrisis.

3. TheCabinetwillconsulttogetherandmakejointrecommendationsforpastoralcandidatesto localchurches. TheCabinetsubmitsrecommendationsofpastoralcandidatestoalocal church. Onesuperintendentwillworkdirectlywiththechurchcongregation,board,and PastoralRelationsCommitteesubmittingtherecommendationfromtheCabinet.

4. TheGeneralSuperintendentwillannuallycallintoExecutiveSessionthecredentialholdersat eachJourney.

5. Theregionswillbeevaluatedannuallyforthegeographicalsizeandparticipatingchurches. ThiswillbereportedattheJourneyintheExecutiveSessionateachJourney.

6. TheUSACabinetholdsamonthlyprayermeetingusuallyheldonthefirstThursdayofthe month.

7. TheUSACabinetalsoholdsanadministrativemeetingusuallyheldonthethirdThursdayof eachmonth.

8. TheassignmentsofsuperintendentstoregionsaredeterminedbytheCabinetof Superintendents.(Discipline¶103&¶423)

9. TheConferenceSuperintendentswillfollowthepatternofJohnWesleywithMethodist pastorsandannuallyinquireofthemabouttheirfaithfulnessinpastoralcare,goalsand preachingplans. AstandardizedproceduredevelopedbytheCabinetwillbefollowed

10. Anannuallocalchurchleadershipandpastoralreviewwillbeconductedforallaffiliated churchesandtheirseniorpastor.TheFormsCommitteewillprovidetheformsandmonitor recommendationsforchangesandadjustmentsintheevaluationtool.Thesuperintendents willoverseethereviewprocess. (PassedbyGeneralConference2010)

SECTION TWO GENERAL BOARDS

Board of Christian Education

TheBoardofChristianEducationwillbeunderthedirectionandcontroloftheGeneralConferenceof theEvangelicalMethodistChurch,operatingundertheguidelinesoftheDisciplineoftheEvangelical MethodistChurch.

Mission

Topromote,develop,andencourageChristianEducationinallareasoflife.

Vision

Todevelopanewmodeloflearningthathelpstransformpeopleandthewaytheyliveineveryday lifetofollowGodandHisteachingstoliveaccordingtotheWordofGod.

Duties

TorecommendChristianeducationmaterialsforthelocalchurchesincludingSundayschool materials,vacationbibleschool,adultlessons,catechismfornewmembersandsystematic discipleshipforadultsandchildren. Sponsorandencouragetheconductingofworkshopsatregions, generalandannualregionalmeetings.

Meetings

TheBoardofChristianEducationmayelecttomeetinpersononceayearwithconferencecallsin betweenmeetingswheneverneededtoconductbusiness.Themeetingdateandtimewillbecalled bythechairpersoninconsultationwiththeGeneralSuperintendent.

Budget

TheBoardofChristianEducationshallprepareayearlybudgettobepresentedtotheGeneral ConferenceinaccordancetotheoperationalproceduresoftheEvangelicalMethodistChurch.

Board of Discipline Revision

1. TheBoardwilluse“Zoom,”orotherappropriateonlinemeetingmediumfortheirwork duringthequadrenniumwithone“facetoface”meetingpriortotheGeneralConference.

2. TheBoardreceivespotential Discipline revisionsfromanyofthesesourceslistedin¶637: “Memorialsmayoriginatewithanyconference,board,department,committee,lay organization,officeroragencyontheDistrictorGeneralConferencelevels.”

3. TheBoardadjuststheformatandnumbering.

4. TheGBDRwillreviewwiththeGeneralSecretary,the Discipline revisionsapprovedatthe GeneralConferenceimmediatelyfollowingadjournment. TheChairwillsignoffastoits accuracy.

Board of Evangelism

Legacy Fund for Church Planting Policy

TheLegacyFundisameans,orvehicleforunderwritingportionsofchurchplantingexpensesforBoard ofEvangelismapprovedplants. TheLegacyFundwasestablishedtofundtheexistingprogramofchurch plantingbycreatingamillion-dollar,board-designatedannuitywhichwould,fromitsproceeds,fund approvedplantprojects. TheGeneralCouncilestablishedapolicythat60%oftheproceedsfromthesale ofadenominationallyownedchurchpropertywillbeplacedintheLegacyFund.

Oncethemillion-dollargoalisreached,theBoardofEvangelism,inconsultationwiththeGeneral TreasurerandBoardofFinanceChairman,willdeterminewhatpercentageofitsdesignatedproceeds willbeaddedtotheLegacyFundprincipalbalance,andwhatportionwillbeimmediatelyaddedtothe BoardofEvangelismFund. TheBoardofEvangelismBOEwillroutinelyreportthesedeterminationsto theGeneralCouncilfortheirreview.

Century II Church Planters Fund

Philosophy

Thisprogramsupportsthechurchthathasestablisheditsviabilitythroughapositivegrowthpattern.The growthpatternisreflectedinthechurch’snumerichistory,planforministry,purposestatement,anda visionormissionstatement. Thefundsavailableareprovidedtoassistandencouragesuccessfulchurch plants. ApplicationsarereviewedbytheGeneralBoardofEvangelismandapprovedordisapproved accordingtotheirassessmentoftheinformationprovided.

Requirements

1. Statementofpurposeforthechurchwiththedateitwasadopted.

2. AconsensusonthepartoftheleadershipofGod’sdirectioninestablishinganEvangelical MethodistChurch.

3. Aplanforcommunityoutreach lettingthecommunityknowyouexist.

4. Attendancefiguresfortheprevioussixmonthsthatdemonstratemeasurablegrowth.

5. Asignedaffiliationwiththedenomination.

6. Agreementbythechurchplanter/pastortoattendachurchplantingseminar,ifrequestedbythe GBE.

General Information

Approvedapplicantswillreceiveatotalof$6,000. $500istobespentonsendingthechurch planter/pastortoanapprovedchurchplantingseminar.(Proofofattendanceisrequired.) Any incurred expenses exceeding the $500 will be the responsibility of the church. Ifyouhaveaquestionaboutapproval foraseminarpleasecalltheChairmanoftheBoardofEvangelism.

This fund is solely supported through the denomination-wide fifth Sunday Seeds of Faith offerings. All monies will be sent to the church in care of their Conference Superintendent for presentation to the church. The General Board of Evangelism annually considers applications.

Application Form for Century II Church Planter’s Fund or Legacy Fund

Returnto:

EvangelicalMethodistChurch

GeneralConferenceBoardofEvangelism

P.O.Box17070

Indianapolis,IN 46217

ChurchName

Address

City/State/Zip

TelephoneNumber(s)

Please provide the following:

1. Thechurch’sstatementofpurposeis:

Dateofadoption:

2. DoyouhavetheassuranceofGod’sleadinganddirectionintheestablishmentofthisworkasan EvangelicalMethodistChurch?

a. Whyisthereaneedforachurchinthisarea?

b. Definetheareayouareconsidering–rural,city,suburban?

c. WhyorhowhasGodledyourgrouptothiscause?

3. Whatisyourplantoreachyourcommunity?

4. Pleaseattachyourattendancefiguresforthemostrecent6months.

5. Bysigningbelow,wehaveaffiliatedwiththeEMCandsubmittedacopyoftheaffiliationtotheGeneral Secretary.

6. Bysigningbelow,asChurchPlanter/Pastor,Iaffirmmywillingnesstoattendachurchplanting seminarandsubmitproofofsuchtotheGeneralBoardofEvangelism.

7. Bysigningbelow,thechurchwillfaithfullyparticipateinthedenomination-widefifthSunday offerings.

Further Affirmations:

Itisunderstoodinsigningandsubmittingthisapplicationform,thatshouldourcongregationeverofficially dissolveasachurchorganization,and/orceasetofunctionasanEvangelicalMethodistChurch,allfunds receivedthroughtheCenturyIIPlantersFundoftheGeneralConferenceBoardofEvangelismshallbe promptlyrepaidtotheGeneralBoardofEvangelism(seeparagraph209).

ChairmanoftheBoardofStewards:

ChurchPlanter/Pastor:

ChairmanoftheBoardofTrustees:

Date:

Date:

Date:

To be completed by the Board of Evangelism and the Conference Superintendent: Weherebycertifythatinourmeetingheldon (date),theBoardofEvangelismhas approvedthisapplication.

BoardofEvangelismChairman:

Date:

ConferenceSuperintendent: Date:

Submit originals to the General Secretary, International Headquarters.

Board of Finance

1. TheGBFpreparesanannualbudgetandpresentsthebudgetforthecomingyeartotheGeneral Councilforapproval.

2. TheTreasurerwillreportandpublishtotheSuperintendentsthemonthlyincomeofthe conferencesupportfromeachlocalchurch.

Adopted Financial Procedures

(RecommendedbyCapinCrouseLLP)

Purpose

EstablishingeffectiveinternalcontrolproceduresisrecommendedbytheGeneralConferenceofthe EvangelicalMethodistChurchtoassureothersofthedenomination’scommitmenttobecomethe bestpossiblestewardsoftheassetstheLordhasentrustedtoit.Thedenominationisnotonly responsibletothevariousregulatoryagenciesbutalsokeenlyawareofthehighlevelofpublic accountabilitymandatedbytheScriptures.ThroughouttheBible,followersofChristareexhortedto exerciseresponsibilityfortheirfinancialactions.Wetrusttheserecommendedprocedureswillassist thedenominationinaccomplishingthatgoal.TheGeneralConferenceoftheEvangelicalMethodist Churchshallhereafterbereferredtoasthe“GCEMC”.

ItistheintentoftheGCEMCtofollowthestandardsestablishedbytheEvangelicalCouncilfor FinancialAccountability,whichinclude:

1. Anactive,policy-makingcommittee,amajorityofwhomarenotstaff

2. Anannualcertifiedauditbyanindependentfirmbasedongenerallyacceptedstandardsand accountingprinciples

3. Auditreportsavailable

4. Highstandardsofintegrityandnoconflictsofinterest

5. Aclearevangelicalstatementoffaith

6. Programsconsistentwithpurposeandobjectives,andfundsappliedforthepurposefor whichtheyareraised.

➢ FINANCIAL REPORTING

Fiscal Year and Accounting Method Used

TheGCEMCfiscalyear(FY)shallbeginonJuly1andendonthefollowingJune30.DuringtheFY,the accountingrecordsaremaintainedonamodifiedcashbasis. AtFYend,generalyear-endadjustmentsare madetoclosetheyear.Normally,accrualadjustments,suchascapitalizingfixedassets,writing-offfixed assetdisposals,depreciationexpense,variousaccruedexpenseadjustments,etc.,aremadeatthetimeof theaudit,withfinalauditedadjustmentspostedfortheyear-end.

MIP Abila Accounting and Abila Donor System

TheGCEMCcurrentlyutilizesthefollowingmodules:

DonorModule

AccountingModule

Accounting Department

ThedepartmentaccountsandmaintainsfinancialactivitiesandreportsfortheGCEMC.The departmentiscomposedof:

GeneralConferenceSecretary-Treasurer(GS-T)

BookkeepingSecretary(BKS)

Ministry Funds TheChurchutilizesthefollowingministryaccounts:

GeneralFund(GF): Denominationaloperations.

GeneralConferenceEvent: QuadrennialConference

Evangelism(BOE): Supportsnewchurchstartsandpromotesevangelisticeffortswithinthe churches

LegacyFund(LF): ProvidesfundingforBoard-of-Evangelism-approvedchurchplants. TheBoardofFinancedeterminesthepercentageofproceedsthatwillbe placedintheLFwhenpropertyissold

ChristianEducation(CE): ReviewsandrecommendsChristianeducationmaterialsandprovidesforthe CEneedsofchurches

BenevolenceFund(BF): TheCabinetofSuperintendentsdeterminestheamounttocontributetoneedy ministerialmembersand/orsurvivingspouses

Publications(PF): Managespublicationmaterials

Youth(YF): ProvidesoversightofYouthactivities

Medical(MF): Holdingfundformedicalandaccidentaldeathanddismembermentpremiums

Pension(PF): Holdingfundforpensionpayments

Stewardship&Development(SDF): Assistsmembersinplannedgiving EndowmentFund(EF): Holdsintrustendowmentfunds

HeadquartersProperty(HPF): Providesforpropertyimprovementsand/orconstruction

MinisterialEducation(ME): Establishesministerialcourseofstudyandnationalpastor’sschool EMCConnection(CON): Denominationalpublication

WorldMissions(WM): Providesforrelatedexpensesfortheministryofworldmissions.Maintains accountsfor:NovemberMissionsOffering,MexicoField,TarahumaraIndian Ministry,GuadalupeRocha,BeanFund,LifeandTruthBibleInstitute(LTBI), LTBIScholarships.

GlobalMissions(GM): Mexico,Myanmar,ChristforAllNations,Asia-PacificandSouthAfrica Dept.ofMulticulturalMin.(DMC): MulticulturalMinistries,undertheguidanceoftheBoardofWorldMissions LifeShares(LSF): Investedfundsformissionsandmissionaries,withproceedssupportingthe designatedministryCurrentlyLSFisnolongersolicited.

FixedAssets: Providesaccumulatedfixedassetaccountfororganization.

Closing the Month

Thisisareminderchecklistoftaskstobeaccomplishedpriortomonth-endclosing. A descriptionofeachsectionofthelistfollows:

Record Monthly Activity – Beforeclosingoutthemonthitisimportanttomakesurethatallmonthly activityhasbeenrecorded. Thisincludes:

• theweeklydepositsandmiscellaneouscashdepositshavebeenposted;

• theinterestearnedbyvariousbankandinvestmentaccounts;

• checkswrittenduringthemonthwhichmustbeenteredintotheaccountingsoftware(as opposedtocheckswrittenusingtheaccountingsoftware);

• payrollactivity;

• otherdisbursementssuchaswiretransfersandbankfees;

• invoicesrelatingtothemonthtobeclosedout;

• monthlyend-of-the-monthbudgetallowancesandspecialincomehasbeendispersed;

• andmonthlyjournalentriessuchasdepartmentaldisbursalsforprinting,mileageandpostage use,etc.

Reconciliations & Review – Afterallthemonthlyactivityhasbeenrecorded,itmustbereviewedfor accuracyandcompletenessbytheGS-TandBKS. Thisincludes:

• Bankreconciliationsforeachbankaccount(s)ineachFund.Aftercompletion,thebank reconciliationsaretobereviewedbytheGS-T.

• BalanceSheetReview. Fromthe“Accounting”module,“Reports,”printoutacurrentperiod BalanceSheet. Reviewforobviouserrorsandensurethatinter-fundaccountsnetoutto$0.

• IncomeStatementReview. Fromthe“Accounting”module,printoutacurrent“Statementof Activity”. Reviewforunusualand/orunexpectedvariancesbetweenactualtobudget. Investigatepossibleerrorsbylookingatthedetailoftheaccountinthedetailtrialbalance.

• Detail&SummaryTrialBalanceReview. Fromthe“Accounting”module,printoutacurrent perioddetailedTrialBalance(bothDetailandSummary). Revieweachaccounttoensurethat entriesareappropriate.

Final Steps – Thefinalstepsformonthendclosemaybecompletedafterallactivityhasbeenentered andreviewed. Thisincludes:

• RecordActivityonFundReport.Althoughalmostallmoneyinitiallygoesintoonemainbank account,contributionsgiventotheGCEMCarerecordedintoProjects. Thedonorspecifies whatProjectistobenefitfromhis/hercontribution.Dependingonthedesignationofthe contribution,thegiftmay without donor restriction, with donor restrictions or with donor restrictions – perpetuity. ThefundactivitiesarerecordedinseparateGCEMCProjects. Each fund’sactivitiesareputintodifferentGLaccounts. Afterallthefundsareupdated,thenew totalseachdesignatedrestrictionarecalculated.

• RunFinalFinancials. Afteralladjustmentshavebeenmade,anotherbalancesheet,income statementanddetailandsummarytrialbalanceshouldbeprintedout.Onecopyisfiledwith theGS-T.

• BackupData.Alldataontheserverisbackedupoffsitedaily.

• DistributeReports.Reportsfordenominationalboardswillbepreparedquarterly.

• GeneralSuperintendent.Aquarterlycomprehensivereportofallfundsshallbepreparedand submittedtotheGeneralSuperintendent.

Closing the FY

ClosingtheFYissimilartomonthendclosingprocedures,butincludesextrasteps. Performtasks listedinthe Record Monthly Activity and Reconciliation & Review sectionsofthe“MonthEndTask List.”“MonthEnd”closingmustbeperformedbefore“Year-EndClosing.”(Month-end Close) Before proceedingtothe Final Steps,completethefollowingprocedures:(Year-end Close)

• DetermineamountofprepaidexpensesanddepositsandadjustGLaccordingly.

• Adjustinvestmentstotheirrespectiveyear-endfairvalues.

• Reviewallrepairandmaintenanceexpenseaccountstodetermineifanydisbursements representfixedassets,ifso,debit“fixedassets”andcredit“expenses.”RecordinFixedAssets Project.

• Prepareayear-endentryforaccumulateddepreciationoffixedassets.Theannualdepreciation iscurrentlycalculatedbyCapinCrouseLLP.

• VerifytheInterfundreceivable/payables(Transfers)netoutto$0.

• Reviewmiscellaneousrevenueaccountsforproceedsfromfixedassetdisposals,etc.

• DetermineandrecordintheGLaccruedexpenses(wagespayable,benefitspayable,accrued interest).

• Makesurethatbeginningnetassets(endingnetassetslesscurrentyearnetincome)agrees withprioryearauditednetassets. Ifnot,findtheerrorandadjusttheGL.

• Fromthe“Accounting”module,“Reports,”intab3,“CheckingandAP,”runAPAgingInvoice Report.”

Annual Audit/ Review

TheGeneralCouncilengagesanindependentauditortoconductanannualaudit/reviewunder generallyacceptedaccountingstandardstofulfillECFAmembershiprequirementandalsosatisfy Bankloancovenantofmaintainingitsbooksinaccordancewithgenerallyacceptedaccounting principles.Aftertheaudit/reviewiscompleted,theauditorwillpossiblyprovideotherjournal entries. Afterpostingtheseentrieswecanpostthefinalclose.

TheMinistry’sauditorisCapinCrouseLLP.

Backing-up and Storage of Accounting Software Data

Dailybackupsaremadethroughthenetworkserver.Back-upsareheldfortwoweeks,withdaily back-upsbeingmade.Currently,NetHelp24/7managestheservers.

Limiting Access to Accounting Software and Accounting Documents

Accesstotheaccountingsoftwareislimitedtothedesktopcomputerinthebookkeepingoffice.The MPprogramismaintainedonaseparateserverandisaccessibleonlythroughpasswordprotected access.Allaccountingsoftwareispasswordprotected.Passwordsarecontrolledandmaintainedby GS-T.Currentaccountingandpayrollrecordsareontheserverwithblankcheckslockedinafile cabinetintheofficeoftheGS-T.

Reports Provided

QuarterlyreportsarepreparedbyBKSandGS-TandareprovidedtotheGeneralSuperintendentand tothechairmanofthedenominationalboards

➢ CORPORATE FILING REQUIREMENTS

Nature of the Ministry

The General Conference of the Evangelical Methodist Church, Inc.

TheChurchisanIndiananonprofitcorporationexemptfromfederalincometaxunderSection 501(c)(3)oftheInternalRevenueCode(Code).ContributionstotheGCEMCaredeductiblefrom incometaxes.TheChurchisnotaprivatefoundationunderSection509(a)(1)oftheCode.

TheGeneralConferenceoftheEvangelicalMethodistChurchoperatesundertheDisciplineofthe EvangelicalMethodistChurch,asestablishedandrevisedbyitsquadrennialconferences.

TheGCEMCisamulti-ministryoutreachwithorganizedconferencesintheUnitedStatesofAmerica, Mexico,Myanmar,Asia-Pacific,andChristForAllNations(CFAN)andSouthAfrica.Foreignmission ministriesmaybemaintainedinotherregionsoftheworld.

ThepurposesoftheEvangelicalMethodistChurcharecontainedintheLocalChurchsectionofthe By-Laws(read¶201-204,DisciplineoftheEvangelicalMethodistChurch).Togethertheycondense intofourveryspecificgoals:

1) TopromoteChristianworshipthroughpraise,prayer,theexpositionoftheteachingsofJesus Christ,andthesharingofHisSacraments;

2) TofosterandencouragespiritualgrowththroughBible-basedChristianEducationand Discipleshipprograms,andbyprovidingacontextforbothreligiousandsocialfellowship;

3) ToproclaimanddemonstrateScripturalholinessaccordingtotheWesleyantradition;

4) Toevangelizetheworldbyengaginginaggressivemissionaryoutreachathomeandabroad.

ThedenominationwasorganizedMay9,1946andobtaineditsIRSdeterminationletterdated January13,1971.Anupdateddeterminationletterwasrequested,datedOctober30,2002.

Federal Form 990 and State Equivalent (Not Applicable for Indiana)

Form990isdueannuallyonMay15th butcanbeextendedfor2½monthsatatime. TheChurchisexemptfromhavingtofileForm990.

Federal Form 990-T And State Equivalent (Not Applicable for Indiana)

Form990-T,whenapplicable,isdueannuallyonMay15thbutcanbeextendedfor2½monthsata time.Form990-TisrequiredwhentheChurchhas$1,000ormoregrossincomefromanunrelated tradeorbusiness(UBI).SeeChapter18forUBIpolicy.TheChurchcurrentlyreceivesnoUBIsoForm 990-Tsoisnotrequired.

State Requirements for Soliciting Funds

Severalstateshavefilingrequirementsfornonprofitorganizations,whichsolicitfundswithintheirstate. Eachstatehasdifferentrequirementsandexemptions. CurrentlytheGCEMConlyfilesanannualreport withtheStateofFloridaformaintainingabusinesspresenceinthestate.Noothersuchreportsarefiled inotherstates.

Domestic Nonprofit Corporation Filing Fee with the State of Indiana

NecessaryfilingsaremadewiththestateofIndianainordertomaintainitsnon-profitstatus.The denominationalsomaintainsamerchant’scertificateforthesaleofbooksandmerchandisethrough theDepartmentofPublications.

Property Tax Exemption Filings

Therequiredpapersnecessarytoexemptrealpropertyfrompropertytaxhasbeenfiledwiththe StateofIndianaandinthecountyandtownshipwheretheheadquarterspropertyislocated.That initialfilingsatisfiesthestaterequirementforexemptstatusandisnotnecessaryforre-filingunless theuseofpropertychangesorthelawofthestatechanges.TheGS-Twillmaintainwhateverfilings arenecessaryforpropertytaxexemption.

Federal Form 5500

Pension,medicalbenefit,cafeteria,andcertainotherplansmustannuallyfileoneofseveralseries 5500Forms. Achurchplanisnotrequiredtofilea5500,unlesstheyhaveelectedcoverageunder ERISA.ThedenominationhasnotelectedcoverageunderERISA

403(b) Plan

TheChurchsponsorsa403b(tax-shelteredannuity)planforchurchemployees.Contributionsare basedonanegotiatedamountoftheemployees’salary.Theemployeesareallowedtomakepre-tax contributionsunderasalaryreductionagreement.Theplanisconsideredtobeachurchplan,thusa 5500isnotrequired.

Premium-Only Plan

Thedenominationdoesnotoffermedicalinsuranceplans.

Federal and State Payroll Reports

• QuarterlyFederal(941)reportsmustbefiledonemonthafterthequarterends

• AnnualStatereportsmustbefiled,usuallybyFebruary28ofthefollowingyear.

• Addtaxablebenefitstoemployee’sW-2,whereapplicable(valueofpersonalusageof employer-providedvehicle,autoallowances,etc.)

• W-2sareduetorecipientsby1/31/XX. CopyAofW-2andW-3isduetotheIRSby2/28/XX

• ProvideministerswithahousingallowancememowiththeW-2,remindingthemofamounts designatedfortheyearandstatingthattheexcessoftheamountdesignatedoveractual expensesshouldbereportedasotherincomeontheir1040.

Other Federal Reports

• PrepareForm1099’s,duetorecipientsby1/31/XXandduetoIRSby2/28/XX

• PrepareForm8282whenapplicable.IftheMinistrysellsorotherwisedisposesofgift propertyforwhichanappraisalsummaryisrequiredonForm8283within2yearsafter receiptoftheproperty,theMinistrymustgenerallyfileForm8282withtheIRSwithin125 daysofthedisposition.RefertoChapter14forfurtherdetails.

• TheGS-Tisresponsibleforpreparingtheannual1099’sandfileForm8282.

Annual Independent Audit/Financial Review

TheGeneralCouncilisresponsibleforengaginganindependentauditortoconductanannualaudit oranannualFinancialReview.InSeptember2024,theGeneralCouncilapprovedthescheduleof auditsandreviewsassuch:afinancialreviewistobeundertakeneachyearexceptforregular GeneralConferenceyears.DuringregularGeneralConferenceyears,anauditwillbeconducted. The audit/reviewistypicallyperformedassoonafterthecloseofthefiscalyearasisfeasible.The financialstatementsarepreparedonanaccrualbasis.

Location of Church Corporate Documents

ThefollowingdocumentsarefiledintheGeneralSecretary-Treasurer’sofficeinlockedfiling cabinets.Thebookkeepingsecretaryhasaccesstothefilingcabinet.

• MinistryOrganizationalchart

• ArticlesofIncorporation

• By-laws

• BoardResolutions

• DeterminationletterfromIRS

• EmployeridentificationnumberletterfromIRS

• Countypropertytaxexemptionletter

• Salestaxexemptionletter

• Signedrentalandothercontracts

• Signedpromissorynotesreceivables

• Signedcapitalandoperatingleases

• Annualdesignatedhousingallowancesresolution

• Creditcardagreements(MasterCardandAmericanExpress)

• Pensionandmedicalbenefitplandocuments

• Propertyandvehicledeedsandtitles

• Fixedassetdetailschedules(UpdatedannuallybyCapinCrouseLLP)

• Insurancepolicies

• Legalconsultationsandcorrespondence

• PersonnelPolicyManual

• Missionsprogrampoliciesandorganization

• Supportedmissionariesandministriesannuallisting

• AffiliationResolutionsofdenominationalchurches

• Otheritemsdeemedpertinenttothedenomination

➢ INCOME and RECEIPTING

Weekly Deposits:

Depositsarepreparedweekly.ThenormalscheduleisTuesday.Also,depositsaremadeonthelast dayofthemonthwhenthelastdayofthemonthfallsonaweekday.

Themailispickedupatthepostofficeboxandsorted.Theenvelopesareopenedbytwopeople.The checksaretemporarilyattachedtotherespectiveremittanceform,andrecordedbycontributorand amount.Whenallchecksarerecorded,theGSTtotalstherecordedchecksandtheofficesecretary totalstheactualchecks.Whenthetotalsagree,acopyismadeofeachcheckandremittanceform.

Checksarestampedandadepositslipisprepared.Acopyofthedepositslipismade.Thedepositis readytobetakentothebank.

Cashcontributionsarerare,butoccasionallymade.Thesameprocedureappliesforcashaswith checks.

Oncethedeposithasbeenmade,thebankdepositreceiptistobeattachedtothecopyofthedeposit slip.

Preauthorized Debits:

TheorganizationiscapableofPreauthorizedcheckwithdrawalsfromdonorwhochoosethismethod ofcontribution.Anauthorizationformissignedandavoidedcheckissenttosetupthe Preauthorizedwithdraw.ARecurringBatchissetupinthedonorsystemofMPower,andmonthly receiptsareissuedtothedonors.

Credit Card Deposits:

Whencreditcardpurchasesorcontributionsaremade,acopyofthecompletedtransactionisfiled withtheBKS.Oncethedepositisconfirmedbythebankstatement,adepositisprepared,itemizing theindividual’scontribution.Oncethedepositismadeintothesystem,adjustmentsoffeesmustbe enteredtobalancetheentry.Ifapurchaseismade,thegeneratedreportisusedtorecordthe transactioninthesystem.

Accounting Through ABILA Donor Module:

Afteradeposithasbeenprepared,theBKSidentifiesthedistributionoftheindividualcontributions bytheinformationdocumentedontheremittanceform.TheGS-Tchecksthedistributions.TheBKS entersthedepositintothesystem.Aftertheentrieshavebeenmade,an“EditBatchReport”isrun to checktheaccuracyofthedeposit.Whenentryconditionsarecompleted,thebatchisclosedand posted.Oncethedepositisenteredandconfirmed,theGS-TmaypostthedeposittotheGL.

Online Contributions

Contributorsmaymakecontributionsonlinebyaccessingthe“GiveOnline”linkonthe denominationalwebsite.Contributorsmaysetupanaccountandmakecontributionsbycheck(ACH) orcreditcard.Onlinecontributionsarerecordedmonthly,creditedtothelastdayofthemonth.

Issuing Receipts to Donors

Inorderforadonortodeductacharitablecontribution,thedonormusthaveawritten acknowledgementfromtheGCEMC. Thelegislationplacestheburdenofcomplianceonthedonor, however,theGCEMCdesirestoassistthedonorsbypreparingandprovidingareceipttothedonor.

ThereceiptsissuedbytheGCEMCmustcontainthefollowinginformation:

• Donor’sname

• Ifcash,theamountofcashcontributed

• Ifproperty,adescription,butnotthevalueoftheproperty

• Astatementidentifyingtaxdeductibleornon-taxdeductiblecontributions

• Ifgoodsorserviceswereprovidedtothedonor,adescriptionandgood-faithestimateoftheir valueandastatementthatthedonor’scharitabledeductionislimitedtotheamountofthe

paymentinexcessofvalueofthegoodsandservicesprovided,andifserviceswereprovided consistingsolelyofintangiblereligiousbenefits,astatementtothateffect

• Datethedonationwasmade

• Datethereceiptwasissued

ThereceiptsissuedbytheGCEMCalsocontainthefollowinginformation:

• Donor’saddress

• BreakdownofgiftbyProject,taxdeductibleornon-deductibleandyear-to-date(both deductibleandnon-deductible)

End-of-Year Cut-off Policy on Gifts:

• Checks:WhenthecheckisdatedforFYandisdeliveredormailed,asevidencedbyits postmarkofFY,ifthechecksubsequentlyclearsthedonor’sbankinduecourse.Apostdated checkisnotdeductibleuntilthedayofitsdate.

• Creditcards:Whenthechargeismade,eventhoughthedonordoesnotpaythecreditcard chargeuntilthenextyear.

• Onlinegifts:Whenthepaymentisrecordedonlinetothewebsite

• Pledges:Whenpaymentorothersatisfactionofthepledgeismade

• Securities:Whentheproperlyendorsedstockcertificateisunconditionallyreceivedbythe Ministry

• Realestate:WhentheproperlyexecuteddeedisreceivedbytheMinistry

Receipting Procedures

Contributionreceiptreportsareissuedwitheachdeposit.ThesereportsaregeneratedfromABILA. ThelettersprovideastatementoftheYTDgivingforthedonor,breakingdowngivingbyspecific funds.(SeesampleletterinExhibits).TheBKSisresponsibleforhandlingallinquiriesfromdonors. Donorswhogivestockgiftsorothernon-cashgiftssuchasrealestate,vehicles,etc.arewrittena separatethankyouletterbytheGS-T.

Returning Contributions to Donors

ItistheMinistry’spolicynottoreturncontributions.Onceagifthasbeenreceivedandacharitable contributionreceiptisprovidedtothedonor,thefundsarenolongerunderthecontrolofthedonor, butarerequiredtobeunderthecontroloftheGCEMC.Ifacharitablereceipthasnotbeenissuedto thedonor,theGCEMCmayconsiderrefundingthecontribution,however,afterthedonorisprovided withareceipt,thecontributionsshouldnotberefunded.

Location of Donor Records

Donorrecordsaresecuredinthebookkeeper’soffice.Recordsarefiledaccordingtoyear,monthand dateofdonation.

➢ RESTRICTED CONTRIBUTIONS

Background

Donationsarereceivedinthefollowingmanner:

• WithoutDonorRestrictions

Thedonorprovidesthedonationandmakesnocommentregardingtheuseofthefunds.

• WithDonorRestrictions

Thedonorprovidesacontributionforspecificministrypurposesorthosenotcurrently availableforuseuntilcommitmentsregardingtheirusehavebeenfulfilled.

• WithDonorRestrictions–inPerpetuity

Thedonormakesacontributionandrequiresthedonationbeusedforarestrictedpurpose. Thedonordoesnotintendforthedonationtobeusedforanyotherpurpose. Sometimesa donormakesadonationandstatesthathe/shewouldpreferthatthedonationbeusedfora specificpersonorproject,butunderstandsthattheMinistryhasfullcontrolandmaydecide tousethefundsforsomeotherpurpose.Restrictioniseithertemporaryorpermanent (endowmentfundgift).

Legal Consequences of Restricted Gifts

ThelawrequiresthattheMinistryusedonor-designatedgiftsinaccordancewiththerestricted purpose. Allstatesallowthedonorstoenforcethedonorrestriction,andmanystatesallowthe donor’sheirsortheStateAttorneyGeneraltoenforcetherestriction.IftheMinistrydoesnothonor therestriction,itmayberequiredtoreturnthepropertyorcashdonatedorusethefundsforthe restrictedpurpose.

Tax Consequences of Restricted Gifts

Therearebasicallytwotypesofrestrictedgifts:thoserestrictedforspecificprojects,whichare generallytaxdeductible,andthoserestrictedforspecificindividuals.

Accounting Consequences of Restricted Gifts

Statements116and117,issuedbytheFinancialAccountingStandardsBoard(FASB), requirethatall donor-restrictedcontributionsbereflectedontheMinistry’sfinancialstatementsaseither “ContributionswithDonorRestrictions,”or“ContributionswithdonorRestrictions–inPerpetuity.” Permanentlyrestrictedcontributionsoccurwhenadonorrestrictstheuseofthecontributiontothe incomeearnedonthecontribution. Theoriginalcontributionamount(principal)cannotbeused. TheMinistryisawareoftheserequirementsand,throughfundaccountinganditschartofaccounts, istrackingtheincomeanddisbursementsofallrestrictedactivities.

Faith Promises/Share Support

TheGCEMCdoessolicitShareSupportfromdonorstoidentifysupportlevelsprimarilyfor missionaries.SuchShareSupportersarenotbilledforunpaidcommitments.Currently,a“share”is calculatedas$20.00(twentydollars)permonthforfiveyears.Personnelsupport(missionaries)is establishedasacertainnumberofsharesneededtobefullyfundedforministry.

Giftsrestrictedforspecificindividuals

The IRS Position

• RevenueRuling79-81states:“…Ifcontributionstoafundareearmarkedbythedonorfora particularindividual,theyaretreatedasgiftstothedesignatedindividualandarenot deductibleascharitablecontributions. However, a deduction is allowable where it is established that a gift is intended by the donor for the use of the organization andnotasa gifttoanindividual.Rev.Ruling62-113..."

• RevenueRuling68-484,1968c.b.105,states“…forpurposesofdeterminingthata contributionismadetoorfortheuseofanorganizationdescribedinsection170ofthe.Code.

Ratherthantoaparticularindividualwhoultimatelybenefitsfromthecontribution, the organization must have full control of the use of the donated funds andthecontributor's intentinmakingthepaymentmusthavebeentobenefitthecharitableorganizationitselfand nottheindividualrecipient..."

Dependingonthenatureofthegift,thecontributionmaynotbetaxdeductible. Pleasenotethata donor’srestrictionmaybelegallyenforceable,evenifitresultsinlossofthetaxdeductionandeven ifthedonordoesnotwantthatconsequence.

Methods whereby a donor specifies an individual and the donation is still taxable:

DevelopmentsonDeputizedFund-Raising

CommunicationhasbeenoccurringwiththeIRSaboutthewidespreadpracticeofdeputized fund-raising.Thefollowingarehighlightsofrecentdevelopments.

Brief History of Debate:

Deputizedfund-raisingconsistsofpaidstaffand/orvolunteersconductinggrassrootsfundraising tosupporttheorganization.Thispracticehasoccasionallybeencontroversialbecauseofthe tendencyonthepartofsomefund-raiserstorepresentthatcontributionswillonlybeusedto supporttheworkoftheindividualdoingthefund-raising.Althoughgivingthroughan organizationtoanearmarkedindividualisnottax-deductible,andconduitorganizations operatedtofacilitatesucharenottax-exempt,un-earmarkedcontributionstoaqualified organizationforuseinitsexemptprogramsaretaxdeductible.

Deputizedfund-raisingwasrecognizedand,inatleastsomeforms,approvedbytheIRSinthe 1950sand60s.Afterdecadesoflittleattention,inthe1990s,theIRSissuedanadverseprivate letterruling,challengedorganizations'exemptions,anddeniedcontributiondeductions.TheIRS appearedtobelievethatgiftsinsupportofdeputizedfund-raising(traditionalmissionary ministrysupport)mightrepresentnon-deductiblegiftstoindividualsratherthancharitablegifts toanexemptorganization.Itconsistentlyfavoreda“pooled”approachorsystem.

Followingrecentchallengesandconcerns,agroupwasformed(theCAREFULCoalition),which beganinformaldiscussionswiththeIRS,seekingdefinitiveguidelinesonwhatisnecessaryto protectthedonor'sdeductionandtheorganization'stax-exemptstatus.

Current Issues:

TheIRSinitiallyaddressedtheseissuesinformallyinits1999trainingmanual.Meetingsand communicationssincethenresultedinaletterinwhichtheIRSacknowledgedthatdeputized fundraisingwascompatiblewithtaxexemptionoftheorganizationandtaxdeductionofthe donor’scontributions.

TheIRShasidentifiedtwoessentialprinciples:

1) Thedonormustintendtomakeagifttotheorganization,nottotheindividual. 2) Theorganizationmustfullycontrolthefundstoaccomplishitsexemptpurposes. Ifeitheroftheseprinciplesismissing,thedonor'sgiftdoesnotqualifyfortaxdeduction.Ifthe organizationreceivessubstantialsupportfromdeputizedfund-raisingofcontributionsthatdo notqualify,itmayloseitstax-exemptstatus.

TheIRSacknowledgedthatalthoughtrackingbyanorganizationoffundsraisedbyanindividual missionary,staffmember,orvolunteermayshowthatcontributionsareearmarked,the organizationmayshowthatithasfullcontrolbythetotalityofthefactsandcircumstances.

TheIRSsuggestedlanguagetobeincludedinsolicitationsthatwouldhelpshowthatthe organizationhasthenecessarycontrol,assumingthatthereisnoconflictinglanguageinother materialsorunderstandingsbetweentheparties:“Contributionsaresolicitedwiththe understandingthatthedonororganizationhascompletediscretionandcontrolovertheuseofall donatedfunds.”

Webelievethisisinkeepingwithdutiesofcontrolinherentfortax-exemptorganizationsand thatitdoesnotconflictwithwhatmay,fromanaccountingstandpoint,beconsidereddonorrestrictedforparticularexemptpurposes.TheIRS'sconcernisthatfundsmaybecontrolledbyor directedtoparticularindividualsratherthanunderorganizationalcontrolforexemptpurposes.

Controlanddiscretioncanbeshownbythefollowingfactors:

• Controlofdonatedfundsmaintainedbytheboardthroughabudgetaryprocess;

• Consistentexerciseofboardoversightbyestablishing,reviewing,andmonitoringprograms andpolicies;

• Salariessetbytheorganizationarebasedonasalaryscheduleapprovedbytheboard,by considerationoffactorsotherthantheamountofmoneyraised;

• Therecanbenocommitmentsthatcontributionswillbepaidassalaryorexpensestoa particularperson;

• Amountspaidassalaryareproperlyreportedascompensationonrequiredforms;

• Reimbursementsoflegitimateministryexpensesareapprovedbytheorganizationbasedon guidelinesapprovedbytheboard,byconsiderationsotherthantheamountofmoney raised;

• Screening,training,development,assignment,andsupervisionofstaffmembers;

• Regularcommunicationswithdonorsoftheorganizationsfullcontrolanddiscretionoverits programsandfundsthroughsuchmeansassolicitationliterature,newsletters,anddonor receipts;and

• Oversightoffinancialpoliciesandpracticesbyanauditcommittee,amajorityofwhomare notemployeesoftheorganization.

TheGeneralCounciladoptedadeputizedfund-raisingpolicybasedontheaboveinformation.All contributorswereinformedofthepolicyinwrittencommunications.

Agency Transactions

Sometimes,donorswillsendagifttotheMinistry,whichistobeusedbyanothernonprofit organization. Thesetypesoftransactionsmustbecarefullyexamined.Example-IftheGCEMC receivesagiftfromadonorwhichisrestrictedfortheuseof“ABCCamp”andtheGCEMChasno controlofthemission,thenthegiftshouldeitherbereturnedtothedonorortheGCEMCcouldalso forwardthegifttoABCcampwithoutprovidingthedonorwithatax-deductiblereceipt.TheGCEMC shouldnotrecordthegiftasincomenorthedisbursementtothecampasanexpense.

Currently,nocontributionsarereceivedundertheagencytransactionapproach. Contributions receivedthatarerestrictedforanorganizationtheGCEMCdoesnotsupportaspartofitsexempt purposewillbereturnedtothedonor.

Policy Statements

OverallRestrictedContributionPolicy

Currently,theGCEMCreceivescontributionswithdonorrestrictionsforprojectsandspecific individuals. TheBoardmustapproveallrestrictedprojects. Ifadonorcontributestoanunapproved fundorproject,thedonationwillnotbeprocesseduntilitisBoard-approved.Ifthenewrestricted projectisnotapprovedbytheBoard,thedonationisnotprocessedthroughthedonorrecordsnor arethefundsdeposited.Thefundsarereturnedtothedonor.

RestrictedProjectContributions

TheGCEMCreceivesseveralcontributionsforspecificprojects,suchasforWorldMissions, missionaries,Youthministries,etc.Thesecontributionsareconsideredcontributionswithdonor restrictionsonourfinancialstatementsuntilusedbytheMinistryfortherestrictedpurpose.

RemittanceForms

TheGCEMCprovidesremittanceformstoitemizecontributionsandidentifythedistributionsofgifts. Aremittanceformandpre-addressedenvelopeisreturnedwitheachreceipt.

➢ DISBURSEMENTS AND EXPENSE REPORTS

Initiating Disbursement

TheGS-Tusuallyreceivesinvoices.TheBKSprocessestheinvoicethroughMIPaccountspayable module,enteringpertinentinformationsuchasthevendor’sname,address,vendor’sIDnumber,the requestedpaydate,theappropriateaccountnumber,adescriptionoftheexpenseandtheamount. AnyquestionableinvoicesarediscussedwithGS-TbeforeenteringintoMIP.

Processing Check/Approval

Thechecksarerunonanon-demandbasis.Note:Whennecessary,manualchecksarealsoprepared. ManualchecksgetprocessedthroughMIPaccountspayablemoduletoensuretheygetposted. Checksarereviewedandsignedbyappropriatepersonnel.Checksnormallyonlyneedthesignature oftheGS-T.Exceptionsarechecksover$15,000.00,wheretheGeneralSuperintendentauthorizesthe paymentalongwiththeGS-T.TheBKSverifieseachcheckisdulysignedthenmailschecks.Acheck stubisattachedtoeachpaidinvoiceandfiledbyBKS.

Authorized Check Signors

AuthorizedchecksignorsaretheGS-TandtheBK.Onlyonesignorisnecessaryforcheckswiththe aboveexceptions

Credit Cards

OBJECTIVES

1. Toallowministrypersonnelaccesstoefficientandalternativemeansofpaymentfor approvedexpenses,especiallyexpensesrelatedtobusinesstravelandofficesupplies.

2. Toimprovemanagerialreportingrelatedtocreditcardpurchases.

3. Toimproveefficiencyandreducecostsofpayablesprocessing.

POLICIES

1. MinistrycreditcardswillbeissuedtoofficersandstaffonlyuponapprovaloftheBoardof Finance.

2. Creditcardswillonlybeusedforbusinesspurposes.Personalpurchasesofanytypearenot allowed.

3. Thefollowingpurchasesarenotallowed:

• Alcoholicbeverages/tobaccoproducts

• Capitalequipmentandupgradesover$5,000

• Construction,renovation/installation

• Controlledsubstances

• Itemsorservicesontermcontracts

• Maintenanceagreements

• Personalitemsorloans

• Purchasesinvolvingtrade-inofministryproperty

• Rentals(otherthanshort-termautos)

• Ultra-hazardousmaterialsand/orproducts

• Anyotheritemsdeemedinconsistentwiththevaluesoftheministry

4. Cashadvancesoncreditcardsarenotallowed

5. Cardholderswillberequiredtosignanagreementindicatingtheiracceptanceoftheseterms. Individualswhodonotadheretothesepoliciesandprocedureswillriskrevocationoftheir creditcardprivilegesand/ordisciplinaryaction.

6. CredittransactionsaretobereviewedinatimelymannerbytheGS-T,withtheChairmanof theGeneralBoardofFinanceorhis/herdesigneereviewingthecredittransactionsofthe GeneralSuperintendent.

PROCEDURES

1. Creditcardsmayberequestedforprospectivecardholdersbywrittenrequest(Seeexhibit: “CreditCardRequestForm”)totheGeneralSecretary-Treasurer.

2. Detailedreceiptsmustberetainedandattachedtothecreditcardstatements.Inthecaseof mealsandentertainment,eachreceiptmustincludethedate,time,namesofallpersons involvedinthepurchase,andabriefdescriptionofthebusinesspurposeofthepurchase,in accordancewithInternalRevenueServiceregulations.

3. Monthlystatements,withattacheddetailedreceipts,mustbesubmittedtotheAccounting Departmentwithintendaysofreceiptofthestatementtoenabletimelypaymentofamounts due.

4. Allmonthlystatementssubmittedforpaymentmustincludetheinitialsofthecardholder,the signatureoftheapprovingbudgetdirector,andthedateofapproval.Eachstatementmust havetheapprovalofabudgetdirectorinadditiontotheapprovalofthecardholderunlessthe cardholderishim/herselfthebudgetdirector.

5. Allmonthlystatementssubmittedforpaymentmusthavetheappropriateaccountnumber(s) andtheassociatedamountsclearlywrittenonthestatement.Multiplepurchaseschargedto

thesameaccountnumbermustbesubtotaled.Cardsmaybedesignatedtohaveallexpenses chargedtoaspecificaccountnumber,withexceptionsnotedonthemonthlystatementif desired.

6. Cardholdersshouldmakeeveryefforttoensurethatpurchasesdonotincludesalestax.TaxexemptcertificatesareavailablethroughtheGS-T.UnderIndianalaw,theministryisnot requiredtopaygrossretailtax(salestax)onacquisitionsof“tangiblepersonalproperty”and “services”(I.C.6-2.5-5-25).Tangiblepersonalpropertyispropertythatcanbetouchedand retainedinone’spossession(excludesfood,entertainment,andotherconsumables.)Services areworksoractivitiesperformedbyanotherforafee(includesnormalservicessuchas personalservicesperformedbyprofessionalsand/ornon-professionals,butexcludes lodging.)Salestaxesmaybepaidforminimalexpendituresfromone-timevendorswhorefuse theexemption,butsalestaxesshouldnotbepaid(selectanothervendor)wherethe purchasesareformoresubstantialexpendituresorarerepetitivelyincurred.

7. TheMinistrymayrequirecreditcardholderstousespecificreportingapplicationsinorderto reportandsubstantiatecreditchargesandtoreportreimbursableandnon-reimbursable charges.

CARDHOLDERS

CreditCardsareheldbyTheGeneralSuperintendent,theGeneralSecretary-Treasurer,theUSAConf. Superintendents,AdministrativeAssistant(s),BoardofWorldMissionsChair,headoftheDept.ofStewardship &Development,andtheBookkeeper.

Blank Checks/Checks Made out to Cash

TheMinistryprohibitsthepracticeofsigningblankchecks. Allinformationonacheckmustbe completedbeforesigningacheck.TheGCEMCdoesnotmakechecksoutto“cash.”Ifsuchaneed arises,avoucherispreparedforthecashneeded,andacheckisissuedeithertotheindividual makingtherequestorourbankinginstitution.

Expense Reimbursements

Employeesseekingreimbursementmustfollowtheguidelinesreferredtoinour“Accountable ExpenseReimbursementPolicy(seebelow)andsubmitanexpensereport(SeeExhibit5-2)atthe endofeachofficialpayperiod.Theaccountingdepartmentwillreviewexpensereportstodetermine iftheyareincompliancewithourpolicy. Iftheexpensereportsdonotcomplywiththepolicy,they willbereturnedtotheemployee. Reimbursementscannotbemadeiftheproperdocumentationis notpresent. Ifreimbursements(advances)areinadvertentlypaidtotheemployee,andtheproper documentationissubmittedinatimelymanner,thereimbursementsmustbeconsideredtaxable income. Reimbursementstoemployeesundernon-qualifiedplans(planswhereaccountableexpense reimbursementguidelineswerenotfollowed)areconsideredtaxabletoemployees.

FormalAccountableExpenseReimbursementPolicy(AERP)

TheMinistryhasanAERPforemployees,boardmembersandvolunteers.Thepurposeofthisplanis toreimbursepersonnelforlegitimate,approvedexpensesrelatedtotheoperationsofthe organization.ThisplanhasbeenadoptedbytheBoardofFinanceinaccordancewiththeappropriate incometaxregulations(1.162-17and1.274-5(e)). Theregulationsprovidethatanemployeeneed notreportonhistaxreturnexpensespaidorincurredbyhimsolelyforthebenefitofhisemployer

forwhichheisrequiredtoaccount,anddoesaccount,tohisemployerwhicharechargeddirectlyor indirectlytotheemployer. Theyfurtherprovidethatadequateaccountingmeansthesubmissionto theemployerofanexpensereport(seesampleattached),inwhichtheinformationforeachelement ofexpenditure(amount,date,time,place,businesspurposeandbusinessrelationship)isrecordedat ornearthetimeoftheexpenditure,togetherwithsupportingdocumentaryevidence.Sincethe MinistryhaschosentoestablishandenforceanAERP,thefollowingtermsandconditionshavebeen setforthforexpensereimbursement:

1. Anyemployee,boardmemberorvolunteer(hereinafter“employee”)noworhereafter,shall bereimbursedforanyordinaryandnecessarybusinessorprofessionalexpensesincurredon behalfoftheMinistry,ifthefollowingconditionsaremet:(a)theexpensesarereasonablein theiramount;(b)theemployeedocumentstheamount,time,date,place,businesspurpose andbusinessrelationshipofeachsuchexpensewiththesamekindsofdocumentaryevidence aswouldberequiredtosupportadeductionoftheexpenseontheemployee'sfederalincome taxreturn;(c)theemployeedocumentssuchexpensesbyprovidingtheMinistry’sfinance departmentwithanaccountingofsuchexpenses,nolessfrequentlythanmonthly;and;(d) theexpenseshavebeenapprovedbytheappropriate authorizedsupervisor/manager. Expenseswillnotbereimbursedifsubstantiatedmorethan60daysaftertheexpenseispaid orincurredbyanemployee.

2. TheMinistryshallnotincludeinanemployee'sW-2(notapplicabletovolunteers)formthe amountofanybusinessorprofessionalexpenseproperlysubstantiatedandreimbursed accordingtothepreceding paragraph,andtheemployeeshouldnotreporttheamountofany suchreimbursementas incomeonhisorherForm1040.

3. Anyadvancethatexceedstheamountofbusinessorprofessionalexpensesproperly accountedforbyanemployeepursuanttothisreimbursementpolicymustbereturnedtothe Ministrywithin120daysaftertheassociatedexpensesarepaidorincurredbytheemployee, andshallnotberetainedbytheemployee.

4. Ifforanyreason,theMinistry’sreimbursementsarelessthantheamountofbusinessor professionalexpensesproperlysubstantiatedbyanemployee,theymaydeducttheunreimbursedexpensesasallowedbylaw.

5. AlladvancesmadebytheMinistrytoanemployeemustbemadenomorethan30daysin advanceofwhentheexpenseispaidorincurred.

6. Ifthenatureoftheministryeventrequiresadifferentschedulethanmentionedabove,a writtenrequestforadditionaltimemustbesubmittedbeforetheeventtakesplace.

7. UndernocircumstanceswilltheMinistryreimburseanemployeeforbusinessorprofessional expensesincurredonbehalfoftheMinistrythatarenotproperlysubstantiatedaccordingto thispolicy. Allpersonnelunderstandthisrequirementisnecessarytopreventour reimbursementplanfrombeingclassifiedasanon-accountableplan.

Procedures for Processing Payroll

ThescheduleforsalariedemployeespaidthroughtheGeneralHeadquartersisthatcheckswillbe depositednolaterthanthe5th dayofthemonth.Compensationiscalculatedbytheboardthathas

responsibilityforsettingcompensation(currently,theGeneralBoardofFinanceandBoardofWorld Missionsaretheonlyboardsthatsetcompensationamounts).

Hourlyemployeesshallbepaidonthe15th andlastdayofthemonth.Hourlyemployeesshallkeepa dailytimesheet,recordinghoursworkedeachday.Onthe15th andlastdayofthemonth,hourly employeesaretosubmittheirtimesheetstotheGS-T.TheGS-Twillcalculatetotalhoursworked duringthepayperiodandcalculatethewithholdingsfromthegrosssalary(FICA,FederalW/H, Medicare,State,Countyandanyotherwithholdingrequiredbylaw).Additionalwithholdingoftax liabilitiesmaybedeductedattherequestoftheemployee.TheGS-Twillprepareapaymentvoucher fortheBKtoprepareapayment.Normalpreparationanddisbursementprocedureswouldfollow.

AllovertimebyhourlyemployeesmustbeapprovedbyeithertheGeneralSuperintendentortheGST.TheEmployeePolicyManualstipulatesthatapprovedovertimeispaidatarateoftime-and-a-half oftheemployee’sregularhourlyrateovereight(8)hoursperday,ortime-and-a-halfoverforty(40) hoursperweek.Thehourlyemployeemayrequestcompensatorytimeinlieuofovertimepayment.

AJournalEntryistobemadeofthepayrollwithholdingtaxesofhourlyemployeesandsalaried ministerialemployeeswhohaverequestedwithholdingfromtheirsalaries.Federalwithholdingisto bedepositedinaccordancetothecurrentfederaltaxdepositoryrequirementandStatewithholding depositedbythelastdayofthefollowingmonth.ThewithholdingscheduleispreparedbytheBK andreviewedandprocessedbytheGS-T.

AllhourlyemployeesaretoprepareanewW-3formeachyearandfileitinthepayrollfolder.The BKSmaintainsthepayrollrecord.

TheBKrecordseachmonththecompensationofeachhourlyandsalariedemployeeinthepayroll folder.Compensationforhourlyandsalariedemployeesissummarizedeachquarterandyearly.

InJanuaryofthesucceedingtaxyear,thereportablecompensationofallhourly,salariedand contractemployeesiscompiled.TheproperW-2or1099ispreparedfortheindividualemployee andmailedbeforethelastdayofJanuaryofthesucceedingtaxyear.

Segregation of Duties Policy

Itisourpolicythatnoonepersonhastheabilitytoissuepayrollcheckswithouttheapprovalor supervisionofanotherindividual. Wewillfollowoneofthefollowingapproaches:

❑ TheGS-Twillprocessthetimesheetsandsubmitthepaymentstotherespectiveemployee.The BKshallreviewtimesheetsandpostthepaymenttotheGeneralLedger.TheBKshallprepare andenterthetaxliabilityoftheemployeesandtheGS-Tshallmakethetaxdeposittothe respectiveagency. Thereviewershouldspecificallylookfor“ghost”employees.

IRS Garnishments

Garnishmentsonemployee’swagesareonlydoneiftheappropriatecourtdocumentshavebeen providedtousstatingthatwemustgarnishwages.

Approval of Senior Management’s Compensation

Congressrecentlyenactedlegislation(intermediatesanctionregulations)thatallowstheIRStolevy finesandpenaltiesforviolationsofanorganization’stax-exemptstatus. Inordertoprotectseniorlevel staff,management,andtheboard,itisourpolicythatBoardofFinancereviewcompensationforofficers andemployeeswhoareinapositiontoexercisesubstantialinfluenceovertheGCEMC’saffairs. The Boardshoulddocumentintheminutesthereasonswhyanemployee’scompensationisreasonableand notexcessive.

Determining Whether an Individual is an Employee or an Independent Contractor

Nonprofitsmayattempttoclassifyanindividualasanindependentcontractorbecauseofthe followingmajorreasons:

• AW-2isnotrequiredtobeissued

• Quarterly941totheIRSandEquivalentStatereportsarenotrequired

• DepositingpayrolltaxwiththeIRSisnotrequired

• Theemployerisnotrequiredtopay7.65%oftheindividual’ssalarytotheSSprogram

• Employeecandeductbusinessexpenseswithoutregardtothe2%AdjustedGrossIncome (AGI)floorinScheduleAofthe1040.

UnfortunatelytheIRSdoesnotapproveoftreatinganindividualasanindependentcontractorwhen itisnotwarranted. Forseveralyears,theIRShasbeenchallengingtheclassificationofemployeesas independentcontractors. Theendresultinsomecourtcaseshasbeentochangetheclassification fromindependentcontractorstoemployees,thus,disallowingdeductionsonScheduleCofthe individual’s1040taxreturn. AlsotheemployercanbefoundliableforunpaidSStaxes.

Inorderforanindividualtobetreatedasanindependentcontractorandnotanemployee,thedutiesof theindividualmustbeevaluatedbyusingthe20commonlawtestsspecifiedinIRSRevenueRuling 87:41. Notallofthetestsneedtobemet,infactsomeofhavemoreweightthanothers. Arecentcourt casefocusedonthefollowingeighttests:

• Doestheorganizationexertthedegreeofcontrolthatwouldnormallyexistinan employer/employeerelationship?

• Doestheorganizationinvestintheindividualsworkfacilities?

• Doestheindividualhaveopportunityforprofitorloss?

• Istherepermanencyofrelationship?

• Istherearighttofire?

• Istheindividual’sworkanintegralpartoforganizations’business?

• Whatrelationshipsdidthepartiesthinktheywerecreating?

• Arebenefitsprovidedtypicalofthoseprovidedtoemployees?

ItisourpolicytofollowtheguidelinesofRevenueRuling87:41inourclassificationofemployeesvs. independentcontractors. Currently,theMinistryistreatingthejanitor,lawncaretaker,managingeditor of The Connection andsecretaryoftheBoardofWorldMissionsascontractlabor. Properlyidentified 1099’sareissuedtocontractlaborersannually.

➢ EMPLOYEE BENEFITS

WorkersCompensationInsurance

Allpaidstaffmembersarecoveredbyworkerscompensationinsurance.TheChurchiscovered underChurchMutualInsuranceCompany,Merrill,WI.Workerscompensationauditsareperformed yearly. Duringtheaudits,payrollrecordsandreportsarereviewedtodetermineifpremiumsare beingcalculatedcorrectly. Whentheresultsoftheauditarefinalized,billingfortheyearisadjusted. Tax-shelteredAnnuityProgram

TheGCEMCprovidesfora403(b)tax-deferredannuity(TDA).Currently,allfulltimeministers, missionariesandadministratorsaretoparticipateinanapprovedTDAwithintheguidelines establishedbytheGeneralConferenceoftheEvangelicalMethodistChurch(seeJournalofthe EvangelicalMethodistChurch,2002,pp.98-99).

EmployerProvidedVehicles

TheIRStreatspersonaluseofanemployer-providedvehicleasanon-cashfringebenefitand generallyrequiresthefairmarketvalueofsuchusetobeincludedaswages.TheIRSrequires employeeswithemployer-providedvehiclestomaintainmileagelogsinordertotrackpersonaluse ofthevehicles.

Procedure:Determinewhichofthefourvaluationmethodstouseandincludethepersonaluseon theemployee’sW-2.Theresultingvalueisaddedtotheemployees'W-2'satyear-end. TheGS-Tis responsiblefordeterminingthefairvalueofthetaxablebenefitsandthisamountthenaddedittothe employee’sW-2.

Fordetailsonthevaluationmethods,refertoChurchandNonprofitOrganization–TaxandFinancial GuidebyDanielD.Busby,CPA,publishedbyZondervan.(ChapterThree–“CompensationPlanning”)

Onoccasion,theBoardofWorldMissionsprovidesvehiclesformissionarieswhileondeputation and/oronthefield.PersonaluseofthevehicleischargedatarateincompliancewiththeIRSrules onpersonaluseofemployervehicles.

General AutoAllowances

Manyorganizationschoosetoprovideautoorsimilarallowancestotheiremployees.Anyallowance, otherthanahousingallowance,mustbetreatedastaxableincometotheemployee. Theonlywayto makeautoreimbursementsnon-taxableistofollowanaccountableexpensereimbursementplan (SeeChapter4). ThemostcommonmethodistoreimburseautoexpensesattheIRSapprovedrate permile.TheGCEMCreimbursesemployeesatthecurrentpublishedIRSrate. Anyreimbursement thatexceedsthisamountisconsideredtaxableincome.

EducationalExpenses

Reimbursementsofeducationalexpensescanbeprovidedtoemployeesonanon-taxablebasisunder certainconditions. RefertoChurchandNonprofitOrganizationTaxandFinancialGuideforspecifics.

MovingExpenses

AsofJanuary1,2018,movingexpensesarenotdeductiblefortaxpurposes.Employer-reimbursedor employer-paidmovingexpensesareconsideredataxablefringebenefit.TheGCEMCwillmakeevery

efforttocomplywiththetaxlawsregardingrelocationexpensesandalsominimizethetaxliabilityof anysuchrelocation.

SpousalTravel

Organizationsoftenreimburseemployeesfortraveloftheirspouseorchildren.Underthecurrent rules,travelexpensereimbursedtoemployeesforaspouseoranydependentsarenon-taxableonly if(1)theaccompanyingpersonisemployedbytheorganizationprovidingthetravel,(2)thereisa businesspurposefortheperson'spresence. Otherwisethereimbursementistaxable.

TheMinistrymayreimbursespousaltravelexpenseifapprovedbytheproperBoard.

• Ifthespouseisperformingaministryfunction,regardlessofwhethertheyareemployedor not,theMinistrydoesnotconsiderthereimbursementtaxableincome.

• Ifthespouseisnotperformingaministryfunction,thereimbursementistaxabletothe employee.

TheGS-Tisresponsiblefordeterminingthefairvalueofthetaxablebenefitsandincludingthis amounttotheemployee’sW-2.

➢ MINISTER TAX ISSUES

Minister’s Housing Allowance (HA)

QualifiedministersmayclaimaHA,whichisdeductedfromtheirsalarybeforeincometaxispaid. However,self-employmenttaxispaidonthetotalsalary. InordertoclaimaHAthequalified ministermustsubmittotheBoardaHArequestform,atthetimeoflicensingandbeforethe beginningofeverycalendaryearthereafter,statinghis/hertotalcompensationandtheamount he/sheisclaimingasHA.TheHAmayincluderentorhousepayment,utilitybills,upkeepexpense, purchaseoffurnitureand/orappliancesandanyotherexpensesincurredinkeepingupahome. Whentheindividualfileshis/herincometaxes,he/shemustbeabletosupportallexpensesclaimed. TheamountofHAexcludedfromincometaxisthelesseroftheamountdesignatedbytheboardor theactualexpenses. Anyexcessofdesignatedhousingoveractualexpensesmustbetreatedasother incomeontheindividuals’personaltaxreturn.

SincetheHAisnotsubjecttoincometaxandministersareneversubjecttoFICA,theamountofthe HAshouldnotappearontheW-2inanybox.SomeorganizationswillplacetheHAamountinbox14 oftheW-2. Webelieveanamountinthisbox,labeledhousingwouldonlyconfusetheIRS. ConsequentlywewillnotreportHAontheW-2. Insteadwewillissuealettertothepastorswhich instructsthemonwhattodowiththeirHA.(SeeExhibit8-1)

RequirementstoQualifyforMinisterialStatus Background

InordertoqualifyforaHAaministermustbelicensed,commissionedorordainedandperform “qualifiedservices”describedasfollows:

• Administerthesacraments(suchasperformingmarriageandfuneralservices,dedicating infants,baptizing,andservingcommunion),

• Areconsideredtobeareligiousleaderbyyourchurch,

• Conductreligiousworship,and

• Havingmanagementresponsibilityinthe“control,conduct,ormaintenance”ofyourchurch.

Servicesprovidedbyalicensed,commissionedorordainedminister,atanorganizationthatisnota church(e.g.school,missionagency,etc.),arequalifiedservicesiftheservicesareassignedor designatedbyachurch. Theministershouldhavealetterofassignmentfromhischurch,whichis renewedperiodically. Thereshouldalsobeanongoingrelationshipbetweentheministerandthe churchwhichassignedhim.

Procedure

ForallministerswhoaretoreceiveHA,obtainacopyofthelicense,commission,orordination documentandmaintainintheminister’spersonnelfile.Iftheministerhasbeenassigned,obtaina copyoftheletterofassignmentandperiodicallyaskforanupdateoftheletter.

ItemizedDeductionforMortgageInterest

ItmaybebeneficialtocommunicatetotheministersthateventhoughtheHAisnotincludedas incomeontheW-2,theministercanALSOtakeadeductionformortgageinterestonScheduleAof the1040,iftheministeritemizesdeductions. Thisisknownasthe“doubledip.”

AmendingtheHA

TheHAcanbeamendedduringtheFY,however,theamendmentmustbeprospective,not retroactive.MinistersshouldsubmitarevisedHArequestform,whichmustbeapprovedbythe Board. ApprovedamendmentswillbecomeeffectiveforthepayperiodbeginningaftertheBoard approvesthechange.

Other Minister Compensation Issues Background

Thereareseveraluniquepayrollissuesthatrelatetoministers. Theyareasfollows:

• Ministersarenotsubjecttomandatoryincometaxwithholding. Consequentlyfederaland stateincometaxshouldnotbewithheldfromtheminister’spaycheckunlesstheministerand thechurchhaveagreedtodoso.

• MinistersarenotsubjecttoFICA. TheyarerequiredtopaysocialsecuritytaxundertheSECA legislation. The church may not withhold FICA taxes or report FICA wages for ministerial employees. Theyhavethefollowingchoices:

o Estimatetheirsocialsecuritytaxforthenextyearandsubmitquarterlypaymentson form1040ES,or

o TheMinistrycanassisttheministersbycalculatingtheirsocialsecuritytaxforthenext yearandwithholditasadditionalfederalincometaxwithholding.(e.g.Assuminga salaryof$50,000,plusahousingallowanceof$10,000. Totalsalaryof$60,000 x15.3% =9,180dividedby24payrollperiod=$382.5apayrollperiod.

• Ministershavethechoiceofoptingoutofthesocialsecuritysystem.Inordertodosothe ministermustfileform4361andstatethatheorshe isopposedtopublicinsurancebecause ofreligiousreasons. Theformmustbefiledbythedatethetaxreturnisdueforthesecond yearinwhichyoureceiveministerialincomeover$400.

Procedure

Beforethebeginningofeachcalendaryear,haveeachministerdeterminehowmuchhe/shewants withheldforfederalandstateincometaxpurposes.

Ifapayrollserviceisused,makesuretheyhaveaFICAblockinplaceforallministers.

➢ CASH

Cashincludecashonhand,bankcheckingaccounts,savingsaccounts,andmoneymarketaccounts. CashisavailabletofundoperationsoftheGCEMC,includingprogramsfundedbythedonorrestrictedcontributions.TheGCEMCmaintainsitscashinbankdepositaccountsthat,attimes,may exceedfederallyinsuredlimits.TheGCEMChasnotexperiencedanylossesinsuchaccounts.The Ministrybelievesitisnotexposedtoanysignificantcreditriskoncash.

Petty Cash

Theterm“pettycash"referstoasystematicapproachoftenusedformakingsmallexpenditures whichwouldbetoocostlyandtimeconsumingtomakebycheck.Presently,theGCEMCdoesnot maintainpettycashaccounts.

Bank Reconciliations

TheBKpreparesthemonthlybankreconciliation.Oncethemonthisclosed,theGS-Trunsacopyof BankReconciliationReportandaSummaryTrialBalance.Theclearedchecksarerecordedinthe register.Thebankbalance,outstandingchecksanddeposits-in-transientarecomparedtotheGLfor reconciliation.SavingsAccountsarecomparedtotheGLbalance.Checksoutstandingformorethan sixmonthsareinvestigatedtodetermineifanewcheckneedstobeissuedorwhether thecheck shouldbevoided.TheGS-Treviewsthebankreconciliationuponcompletion.

Description/Listing of Cash by Fund

General Fund:

GeneralcheckingaccountisatFifthThirdBank(5/3Bank) todepositallfundsreceivedby GCEMC;payalloftheGCEMC’soperations.

General Conference Savings (5/3 Bank):

AsavingaccountismaintainedthatincludesdesignatedmoniesforGeneralConference2006, buildingdepreciationandbuildingendowment.

Authorized Check Signers

AuthorizedchecksignorsaretheGS-TandtheBK.Onlyonesignorisnecessaryforcheckswiththe exceptionofchecksover$15,000.00,whichrequirebothsignors.

➢ INVESTMENTS

Purchasedinvestmentsinequitysecuritieswithreadilydeterminablefairvaluesandalldebt securitiesarereportedatfairvalueatendofFY.Donatedinvestmentsarerecordedatestimated valueonthedateofthegiftandthereafterreportedinaccordancewiththeabovepolicy.Investments consistsofbondfunds,mutualfunds,andjewelry.

Investment Policies:

Donated Investments (Also refer to Chapter 14- Non-Cash Gifts)

ItistheGCEMC’spolicytoliquidateaccepteddonatedinvestmentsimmediatelyuponreceipt,if possible.IfastockcertificateisphysicallyreceivedbytheGCEMC,acopyistobemadeandforward theoriginaltobroker.TheMinistryassignsthestocktoaqualifiedmoneymanagerandtheysellit forGCEMCimmediately.

Fordonatedinvestmentsliquidatedimmediately,Debit“cash”andCredit“non-cash”contributionsto theappropriateFund.Intheeventtheinvestmentdoesnotgetliquidated,needtoobtainthefair valueoftheinvestmentonthedateofthegiftandrecorditinGL.Debit“investments”andCredit “non-cash”contributionstotheappropriateFund.DonatedinvestmentsheldatendofFYneedtobe adjustedtoitsFYendvaluebypostingunrealizedgain(Credit)orloss(Debit).

Purchased Investments

Thisgeneralstatementissubjecttoanyspecificstatementofinvestmentpolicyandobjectivesthat hasormaybeapprovedforspecificfundsoftheGCEMCasdirectedbytheBoardofFinanceandthe specificBoardorDepartmentholdingsuchfunds.

GCEMChasbeenentrustedwithcertainfundsthataretobeusedforitsfutureactivities. The purposesofthisstatementare:

1. TodefinetheinvestmentpolicyandobjectivesofthosefundsfortheGCEMCandinvestment managers;

2. Todevelopspecificguidelinesandlimitationsforanyinvestmentmanagersto insurethat assetsarebeingmanagedinaccordancewiththeinvestmentpoliciesandobjectivesofthe GCEMC;and

3. Toprovideabasisfortheevaluationoftheinvestmentperformance.

Thisstatementisintendedtoprovideinvestmentobjectivesthatarebothsufficientlyspecifictobe meaningfulaswellasaresufficientlyflexibletobepractical. Also,itistoestablishanattitudeand philosophythatwillguideanyinvestmentmanagertowardthedesiredperformance.

Asaninternationalorganization,theGCEMCmayberequiredorfinditadvantageoustohaveforeign investments. ThisstatementisintendedtospecificallycontrolinvestmentswithintheUnitedStates andtoactasaguidelinetobeadaptedforforeigninvestments.

I. Responsibilities

TheGeneralCouncilonrecommendationbytheBoardofFinanceisresponsibleforthefollowing:

1. Approvingtheinvestmentpoliciesandobjectivesaswellasreviewingthesameatleast annually;

2. Reviewingatleastannuallytheinvestmentperformance;and

3. Authorizingtheretentionorremovalofspecificinvestmentmanagers.

TheGS-T,orChairmanoftheBoardofFinance,andapprovedbytheGeneralCouncil,willmake recommendationsconcerningthesethreeareasofresponsibilitythroughtheInvestmentCommittee oftheBoard.

II. Investment Managers

Wheneverreasonable,multipleinvestmentmanagerswillbeusedtomanagespecificfundsor portionsthereof. Threereasonsforusinginvestmentmanagersaregreaterdiversificationof investmentmanagement,judgment,opportunity,andriskexposure;apositiveinfluenceon performancethroughlong-termcompetition;andabroaderbasisonwhichtocompareandjudge investmentperformance.

Onlywell-establishedinvestmentmanagerswithprovenperformanceinmanagingfundswith similarinvestmentobjectivesmayberetained. A"riskversesreturn"analysisofanymanagerunder considerationorreviewmustbeprovidedfromanindependentsource.

Theinvestmentmanagerwillbeheldresponsibleformakingallinvestmentdecisionsregardingthe fundssubjecttophilosophies,objectives,andguidelinescontainedinthisstatementofinvestment policyandrestrictionsaswellasanyfuturerevisionmadebytheGeneralCouncilasrecommended bytheBoardofFinance.

Theprimaryemphasisforevaluationoftheinvestmentperformanceshallbetocompareachangein portfoliovaluewiththecurrentinflationrateandappropriatemarketindicesoverafullmarketcycle (generallythirty-sixtosixtymonths)aswellastoevaluatetheabsoluterateofreturn.

TheGS-Thasthediscretiontonegotiateperformance-basedfeearrangementswithoutside investmentmanagers,subjecttothefinalapprovaloftheBoardofFinance.

III. General Philosophy, Objectives, and Restrictions

TheinvestmentphilosophyofGCEMCshallbeconservativeinnature. Theprimaryinvestment objectiveispreservationofcapital. Meetingthisobjectiveinagenerallyinflationaryeconomy requiresagrowthoftheaggregatecapitalvaluethatisequivalenttotherateofinflationovera reasonableperiodoftime. Preservationofcapitalshallnotbeimposedoneachindividual investment.

TheGeneralChurch’sdistributionpolicy,netofadministrativeexpenses,fortheGeneralChurch’s spending,unlessbyBoardofFinanceexception,shallbebasedonarateof70%ofallowable dividenddistributionsfromtherespectiveendowmentannuityinvestments.Thispolicyallowsnet earningsgreaterthan70%tobereinvestedandgrowthecorpus.ThisisconsistentwiththeGeneral Church’sobjectivetomaintainthepurchasingpoweroftheendowmentassetsheldinperpetuityor foraspecifiedterm,aswellastoproviderealgrowth,newgifts,andinvestmentreturns.

Thesubordinateobjectivesarethegenerationofincomeandgrowthofcapitalbeyondtherateof inflation. Thebalancebetweentheseobjectivesmayvaryfromfundtofunddependinguponthe purposeofeach. Thespecificobjectivesandguidelinesforthreemajorcategoriesofinvestmentsare listedbelow.

Thefollowingrestrictionsshallapplytoallinvestments:

1. Cashandcashequivalents. Allcashwhereverandwheneverpossibleshouldbeinvestedin interestbearingsecurities. Thesesecuritiesshouldbefreeoflossorriskofpricefluctuations andshouldbeinstantlysaleable.

2. Prohibitedtransactions. Theuseofuncoveredorspeculativeoptions,commodities,andletter stockareprohibited. Directinvestmentsinbeveragealcohol,gambling,andtobacco industriesarealsoprohibited. However,mutualfunds(andsimilarinvestmentvehicles)that investaminorityportionoftheirassetsinthoseindustriesarepermissible.

3. Althoughthedirectinvestmentofassetsincorporateormunicipalbondswithratingsless than"Baa"isprohibited,assetsmaybeinvestedinmutualfunds(andsimilarinvestment vehicles)whichhaveaminorityoftheirassetsinBondswithratingslessthan"Baa".

4. Investmentmarkets. InvestmentsinequitysecuritieslistedontheNewYorkStockExchange, theAmericanStockExchange,principleregionalexchanges,over-the-countersecurities. A non-U.S.exchangemayalsobeusedprovidedithasastrongmarketprovidingreadysalability ofthespecificsecurity.

IV. Financial Information and Disclosure

A. TheFundwillbesubjecttoannualindependentaudits.

B. TheGS-Twillreportatleastsemi-annuallytotheBoardofFinanceandtherespectiveBoard orDepartmentontheinvestmentandadministrationoftheFund.

V. Investment Control Procedures

TheGS-TisrequiredtosubmittotheBoardofFinanceandtherespectiveBoardorDepartment,by mailorfax,aproposalastoanychange(including,butnotlimitedto,sales,purchases,trades,and ownershiptransfers)whichsaidemployeewishestomakerelatedtoanyGCEMCcontrolledasset over$25,000atleast2businessdayspriortomakinganycommitmentorrepresentationtomake saidchange. Assetscoveredbythisinclude,butarenotlimitedto,stocks,bonds,sharesofmutual funds,realestate,realestatemortgages,andpersonalproperty. Theonlyexceptiontothis requirementistheGS-ToftheGCEMCliquidatinggeneralfundassetsheldinmoneymarkettopay expensespreviouslyapprovedbytheBoard,orinvestingcontributionsaspreviouslyapprovedby theInvestmentCommittee.

Inaddition,anymemberoftheBoardofFinancehasauthoritytopostponeanyproposedchangeifhe orshehasconcerns. Atsuchtime,saidmemberoftheBoardofFinanceisrequiredtoaskthe ChairmanoftheBoardofFinancetocallameetingoftheBoard(bypersonorphone)todiscussthe appropriatenessoftheproposedchange.

AnyemployeewhocommitstheGCEMCtoanychange(bylegalauthorizationormoralobligation) relatedtoanyassetover$25,000(regardlessifsaidemployeehadthelegalrighttodoso),andwho doesnotproperauthorizationbytheBoardofFinanceandtherespectiveBoardorDepartment,will besubjecttodisciplinaryactionuptoandincludingpossibledismissal,andforfeitureofallseverance

benefits. Also,anyemployeewhoauthorizesanychangeafteramemberoftheBoardofFinance instructs(byphone,mail,orfax)himorhertowait,willbesubjecttodisciplinaryactionuptoand includingpossibledismissalandforfeitureofallseverancebenefits(ElectedofficersoftheGeneral ConferenceoftheEvangelicalMethodistChurcharesubjecttodisciplinaryprovisionsasdescribedin theDisciplineoftheEvangelicalMethodistChurch

Description/Listing of Investments by Fund

GCEMCInvestmentAccounts

Evangelism

ClareLucilleWood

LegacyFund

Mexico

HeerFund

PitcherFund

WhealdonFund

Missions

LefflerFund

WorldMissionsFunds

Weldon-VeldaThomasFund

HamblenEducation

HamblenEducationFund

CaldwellFund

Hamblen-BrunerEndowment

Hamblen-BrunerFund

➢ RECEIVABLES – Notes & Accounts

Employee

Loans

General

CurrentlytheGCEMCdoesnothaveapolicyallowingforloanstoemployees.[The only exception to this has been with the Board of World Missions and missionaries serving on a foreign field. Due to the unique circumstances of serving in a foreign country, the Board of World Missions has on occasion extended short-term loans. These policies shall apply when such loans are made.] Wheneverpossible, thenotesshouldbesecuredbyrealorpersonalproperty.Theloanshouldbedocumentedinwriting andsignedbybothparties,andtheoriginalnoteshouldbemaintainedinasecurelocationwiththe GS-T. Anamortizationscheduleshouldbecreatedwhichwillbeusedtorecordthereceiptsonthe GL.Whenpaymentsarereceivedfromtheemployee:Debit“Cash”,Credit“Notesreceivable”forthe principalportionandCredit“interestincome”forinterestportion.

BelowMarketLoans

Forloansof$10,000ormoretheIRSrequiresthattheMinistrychargeamarketrate(whichit publishesquarterly). Iftheinterestrateisbelowthatrate,thedifferencebetweenthemarketrate andthestatedrateneedstobeaddedastaxableincometotheemployee’sW-2. Also,notethatthere

aresomeexceptionstothisrule(e.g.ifcertainconditionsaremet,suchastheloanproceedsareused tosecureahomebyanemployeerequiredtorelocatebyanemployer,thennoincomeneedstobe addedtotheW-2).Currently,theMinistrydoesnothaveanyloans>$10,000.

ForgivingLoans

Anyportionofprincipalorinterestofanemployeeloanwhichisforgivenmustbeaddedastaxable incometotheemployee’sW-2.Oncethedecisionhasbeenmadetoforgivealoan,oraportionofthe loan,theamountmustbeaddedastaxableincome. Consequentlymanyorganizationshavechosento forgiveonlyportionsofaloaneachyear. Eachyeartheorganizationdecidesifitwantstoforgive additionalportionsofthenotesreceivable. Theentrytorecordforgivenessofemployeeloansis: Debit“Salary”andCredit“Notesreceivable.”

Non-Employee Loans

ItispolicyoftheGCEMCnottoextendloanstonon-employees.

Accounts Receivable:

TheGCEMChasaccountsreceivablethroughitsDepartmentofPublications,whichmaintainsall curriculum,CourseofStudymaterialandsupportiveChristianeducationmaterial.Regularaccounts receivablestatementsaresent.TheDepartmentofPublicationswillchargeapublishedfinancerate onunpaidbalancesafter60days.

➢ PROPERTY AND EQUIPMENT

Property and Equipment (P&E)

ItemscapitalizedasP&Earerecordedatcostor,ifdonated,atfairmarketvalueonthedateof donation.TheMinistryreportsdonationsofP&Easunrestrictedsupportunlessexplicitdonor stipulationsspecifyhowthedonatedassetsmustbeused.P&Earedepreciatedusingthestraight-line methodovertheirestimatedusefullivesrangingfromfivetofortyyears.

Forauditedfinancialstatementpurposes,P&EarebrokendownasLand,LandImprovements, Buildings,Vehicles,andFurniture&Equipment.

DollarThresholdforCapitalization

Itemcost$1,500ormoreindividually,oritemwaspartofagrouppurchase,totaling$1,500ormore.

ConstructioninProgress

Whenanitemisbeingbuilt(e.g.abuilding),allcostsshouldberecordedinoneaccountentitled “constructioninprocess.” (Debit“constructioninprocess,”Credit“cash”). Theitemsinthisaccount willinclude:architectfees,engineeringfees,buildingmaterialsandlabor,carpet,paint,etc.Whenthe projecthasbeencompleted,theconstructioninprocessaccountiseliminatedandtheassetis transferredintoitsappropriatelocation(Debit“land”or“buildings”andCredit“constructionin progress”).

Replacements

Periodicallyitemsneedtobereplaced,(e.g.carpet,paint,roof,etc.).Thefirsttimetheseitemswere purchased,theywerecapitalized(Debit“fixedasset”,Credit“cash”). Whenreplacementsareneeded, theoreticallytheoriginalitemisdisposedof(Debit“accumulateddepreciation”,Credit“fixedasset” DebitorCredit“loss”or“gain,”respectively).Thereplacementisthenaddedasafixedasset(Debit “fixedasset”Credit“cash”). Unfortunately,recordsarenotalwaysavailablewhichdocumentthe originalhistoricalcostoftheitem. Consequently,ashortcutapproachisusedforreplacements. Whenitemsarereplacingexistingitems(e.g.carpet),thereplacementcarpetishandledasfollows: Debit“repairandmaintenanceexpense”,Credit“cash”.

Renovations/Enhancements

Onoccasionexistingfixedassetsareenhanced. Thistypeofdisbursementisnotreplacingor repairingexistingfacilities. Instead,thedisbursementisimprovingtheexistingfacilityandaddingto whatwaspreviouslynotthere. Sometimesadisbursementincludesbothrepairandenhancement components. Forexample,afteranearthquake,contractorswillfixthedamageandusuallyretro-fit thebuildingsforfutureearthquakes. Anestimatemustbedeterminedandtherepairportionofthe disbursementmustbeexpensed. Theenhancementportionshouldbecapitalized.

Recording Additions to Fixed Assets

DuringtheFY,theMinistryrecordsP&Epurchasesasexpenses.Presently,qualifyingfixedasset purchasesarereportedtotheauditors,withFYadjustmentsmadewithfinalauditadjustments.

Sales and Dispositions

AllP&EdisposalsshouldbeauthorizedbytherespectiveBoardorDepartmentandthen communicatedtotheGS-T.

Ifproceedsarereceived,Debit“Cash”fortheamountoftheproceeds,Credit“P&E”fortheoriginal cost,Debit“Accumulateddepreciation”fortheoutstandingbalanceandDebitorCredit“Loss”or “Gain,”respectively.Ifnoproceedsarereceivedthen:Credit“P&E”fortheoriginalcost,Debit “Accumulateddepreciation”fortheoutstandingbalanceandDebitorCredit“Loss”or“Gain,” respectively.

Depreciation

Fixedassetsshouldbedepreciatedovertheirusefullife,usingthestraight-linemethod.The followingaretheusefullivesusedbytheMinistry:

• OriginalBuildings

• BuildingImprovements

• Furnitureandequipment

• Computerequipmentandsoftware

• Vehicles

• Landimprovements

40years

20years

7or10years

5years

7years

10–20years

Depreciationisrecordedmonthlyusingamonthlyestimatebasedonlastyear’sdepreciation. Ataudittime,allnewadditionsareenteredintoCapinCrouseLLP’sspreadsheetthattracksfixed assets. Actualdepreciationiscalculatedatthattime. Theadjusteddepreciationjournalentryis made.

Depreciationiscalculatedusingahalfyearconvention. Inotherwordsallitemsplacedintoservice duringthefiscalyeararegiven6monthsofdepreciation,regardlessofwhethertheassetwasplaced

inserviceduringthebeginning,middleorendofthefiscalyear.Overtimethismethodapproximates theactualdaymethod.

Fixed Assets

Currently,theGCEMChasCapinCrouseLLP’sadjustfixedassetsatthetimeoftheaudit.

Physical Inventory of Fixed Assets

Usingthefixedassetlistingabove,theMinistrywillperiodicallyperformaphysicalinventoryofits P&Etoidentifyadjustsneededinitsfixedassetlisting.

➢ DEBT (INCLUDING LEASES)

Authorization

Priortoenteringintoanewloanagreementorsettingupanewlineofcredit,approvalfromthe Councilmustbereceived.ItisuptotheGS-Ttodecidewhentouseavailablelinesofcredit,in conjunctionwiththeChairmanoftheBoardofFinance. TheBoardwillbeinformedviamonthly financialreporting.Atthepresenttimethereisnoindebtednessorcreditline.

General

Priortoacceptingthedebt,attempttogetatleasttwootherquotestodetermineifthetermsare favorable. Alsocarefullyreviewloancovenantstodetermineiftheyaretoodifficulttomeet. Typical loancovenantsincludeanauditrequirement,insurancerequirements,andlimitationsonfuturedebt andfixedassetpurchases.

Loans

• Obtainandfilewrittenagreementandamortizationschedule.

• Whentheloanisobtained:Debit“Cash”or“Fixedassets”,(dependingonwhethercashwas exchangedorassetswereacquireddirectly)andCredit“Notespayable.”

• Whenloanpaymentsarepaid:Debit“InterestExpense”forinterestportion,Debit“Notes payable”forprincipalportion,andCredit“Cash.”

• Duringthetermoftheloan,monitorthedebtcovenantstodeterminecompliance.

Leases

Negotiating

aLease

Obtaininformationregardingtheleaseinordertocompareittoloansandotherleases.Mostlessors willnotvoluntarilydisclosetheinterestratetheyarechargingyou,thusyoumustaskforthe followinginformation:

• Fairmarketvalueoftheequipment,whichalsorepresentsthecostoftheequipment,ifcash werepaid.

• Interestratetheyarechargingyou. (Ifthelessordoesnotprovidethisinformation,itcanbe calculatedaslongasyouhavethefollowinginformation:monthlypayment,termandcostof equipment.)

Capital vs. Operating Lease

DetermineTypeofLease:OperatingorCapital

IftheanswertoANYofthefollowingquestionsisyes,theleaseisacapitallease: IftheanswertoALLofthefollowingisNO,thentheleaseisoperating:

• Doestheleasetransferownershipofthepropertytothelesseebytheendoftheleaseterm?

• Doestheleasecontainabargainpurchaseagreement?

• Istheleasetermequalto75%ormoreoftheestimatedeconomiclifeoftheleasedproperty?

• Isthepresentvalueatthebeginningoftheleasetermequaltoordoesitexceed90%ofthe fairmarketvalueoftheproperty?

RecordingtheLeaseontheGL

Operating

Whentheleaseisinitiatedtherearenoentriestomake,unlessadeposithasbeengiven. Ifadeposit hasbeengiven,thenDebit“pre-paids”andCredit“cash.”Whenpaymentsaremade,Debit“lease expense”andCredit“cash.”

Capital

Treattheleaseasifitwerealoan.

• Whentheloanisobtained:Debit“fixedassets”andCredit“notes/leasespayable.”

• Whenloanpaymentsarepaid:Debit“interestexpense”forinterestportion,Debit “notes/leasespayable”forprincipalportionandCredit“cash.”

GCEMC Debt:

TheGeneralConferenceoftheEvangelicalMethodistChurchdoesnothaveanydebt.

GCEMC Operating Leases:

TheGCEMChasleaseditscopierandhighvolumecolorprinterwithSharp.

➢ NON-CASH GIFTS

Policy

TheGCEMChasapolicyofacceptanceofnon-cashgifts,coveredinitsGiftAcceptancePolicy,adopted bytheGeneralCouncil(seeExhibits).

Donated Items

Donorsmaycontributenon-cashitemssuchassecurities,property,cards,clothing,etc. Thesetypeof transactionshavebothaccountingandtaxramifications.

Investments Accounting

TheMinistry’spolicyistodisposeofinvestmentsimmediatelyuponreceipt. Whenthestock certificateisreceived,makeacopyandforwardtheoriginaltoourbroker.Weassignthestockto,a qualifiedmoneymanager,andtheysellitforusimmediately.SeeInvestments(Chapter10)for accountingtreatment.

Tax reporting

Issuethedonoraletter,whichthanksdonorforthegift.Thelettershoulddescribethegiftand documentwhenitwasreceived.(e.g.100sharesofIBMreceivedonM/D/Y). Thelettershouldnot indicateavalue. Itistheresponsibilityofthedonortodetermineavalue. Thelettershouldbesent

immediatelyafterreceivingthegift. Donotwaituntilthesalesproceedsarereceived. Also,donot issueareceipttothedonoroncethesalesproceedsarereceived.

• Ifthestockispubliclytraded,noappraisalisneeded.

• Ifthestockisnotpubliclytradedanappraisalisneededifthevalueofthestockisgreater than$10,000.

Accounting procedure of property donation

TheGCEMCwillneedtodetermineifthepropertywillbeusedinouroperationsorheldas investmenttobeliquidatedassoonaspossible:

• Iftheassetwillbeusedinouroperations:Debit“Land,BuildingsandEquipment”andCredit “Non-cashcontributions”

• Iftheassetwillbeheldasaninvestment:Debit“Propertyheldforsale”andCredit“Non-cash contribution”.

• Whentheinvestmentissold:Debit“Cash,”Credit“Propertyheldforsale”andDebitorCredit “loss”or“gain,”respectively.

Thevalueofthedonateditemcanbeobtainedasfollows:

• Iftheitemis$5,000orgreater,thedonorisrequiredtoobtainanappraisal,thusacopyofthe appraisalcanbeobtainedfromthedonor.

• Ifanappraisalcannotbeobtainedfromthedonor,thenobtainavaluefromalocalrealtor, jeweler,vendor,etc. Thevalueshouldpreferablybeinwriting. Ifaverbalestimateis provided,documentwhoprovidedthevalueandwhenitwasprovided.

Tax requirements

TheGCEMCfollowstheIRSguidelinesinregardtoallnon-cashdonations.Therequiredformsand properregulationswillbefollowed.

Ifthevalueofthedonationsis$5,000orgreater,thenthedonormustobtainanappraisalandhave theappraisersigntheform8283. FurthermoretheMinistrymustalsosigntheform8283.

IftheMinistrysellsadonateditemwhichhadavalueof$5,000orgreaterwhenitwasdonated, withintwoyearsfromthedateofthegift,theMinistryisrequiredtofileform8282withtheIRS.

DonatedServices

StatementofFinancialAccountingStandardsNo.116, Accounting for Contributions Received and Contributions Made,requiresrecordingthevalueofdonatedservicesthatcreateorenhancenonfinancialassetsorrequiredspecializedskills. Donatedservicesthatcreateorenhancenon-financial assetsorrequirespecializedskillsshouldberecordedinthefinancialstatementsatthefairmarket valueoftheservicesprovided. (Examplesofpersonspossessingspecializedskillsinclude: accountants,attorneys,buildingcontractors,etc.). Servicesthatdonotmeettheabovecriteria shouldnotberecorded(e.g.envelopestuffing,wordprocessing,computerinput,etc.).

Valuation

Donatedservicestoberecordedonthefinancialstatementsmustbevaluedusinganobjective measuretovaluetheservices. Forexample,thevaluecanbeobtainedbyusingtheamountpaidto employeeswhoareperformingasimilarfunction.

Accounting procedures

Torecordthedonatedservicesonthegeneralledger:Debit“salaryexpense”or“fixedassets”and Credit“donatedserviceincome.”

GCEMC Contributed Services

TherearetimestheGCEMCusesvolunteersforwhichtheministryisgrateful.Thesecontributed servicesarenotreported,astheydonotmeettherequirementsundercurrentaccountingstandards.

➢ AUDIT

General

Anauditbyanindependentcertifiedpublicaccountingfirmhelpsensureandisevidenceof,financial accountabilitytotheMinistry’sconstituencies. Anauditincludesexamining,onatestbasis,evidence supportingtheamountsanddisclosuresinthefinancialstatements. Anauditalsoincludesassessing theaccountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluating theoverallfinancialstatementpresentation.

Auditsofnon-profitsareoftenrequiredbythefollowing:

• Lendersgrantingloanstoorganizations

• TheEvangelicalCouncilforFinancialAccountability(ECFA)andsimilarorganizations

• TheBoardwhowantsathirdpartyexaminingthefinancialrecordsoftheorganization

InadditiontoexpressinganopiniononthefinancialstatementsoftheMinistry, theauditors,aspart oftheirexamination,considerthesystemofinternalaccountingcontroltotheextentnecessaryto determinethenature,timingandextentoftheirauditingprocedures,andmayissuealetter containingrecommendations.

Preparing for Annual Financial Audit or Review

ApproximatelyamonthbeforeFYend,auditorswillsendanauditpreparationpackage. Thepackage includesalistofitemstopreparefortheauditaswellassamplesofitemswehavepreparedinprior years. Thelistwillprioritizetheitemsrequested:

• ShortlyafterFYend,prepareandsendtheconfirmationstotheauditors,whowillmail confirmstotheappropriateparties. Donotmailtheconfirmationsdirectlytotheaddressee.

• Aweekorsobeforetheauditorsarrive,mailauditorsthebalancesheet,incomestatement, andelectronicFunds’WorkingTrialBalancessotheycanperformpreliminarywork.

• Uponauditor’sarrival,haveallschedulesready. Unfinishedschedulesdelaytheauditprocess.

• Ifanyjournalentriesarefoundduringtheaudit,discusswithauditorandthenpostthem.

Audit Exit Conference

Itismanagement’spolicytomeetwiththeauditorsaftertheauditfieldworktodiscussthefinancial statementandmanagementletterdrafts.Aftermanagementhasmetwiththeauditors,theauditors willperiodicallymeetwiththeauditorfinancecommittee. Onoccasionitwillbenecessaryforthe auditorstomeetwiththeBoard.

➢ BUDGET

Budgets

Abudgetallowsforthesystematictrackingofexpensesandincome.Thepreparationand implementationofabudgetshouldbedonewitharealisticprojectionoffundsavailablein conjunctionwiththeanticipatedcostsoftheprojectorministry.Thebudgetthenwilltrackthecosts ofaprojectorministryasitisperformed.Followingthetrendsofabudgetwillassistaprojector ministrytoidentifyspecificneedsinthecompletionofitsduties.Historictrendsandanticipated needsaretobeusedinpreparationofabudget.

Procedure

A ministry requesting funding shall submit to the Board of Finance a request for funding and its requestedamount.AnyBoard,DepartmentorMinistryrequestingfundsforthenextfiscalyearmust haverequests submitted nolater than April1. Thepetition should includesufficientdetailto justify theamountrequested.Oncerequestedamountsaresubmitted,theChairmanoftheBoard ofFinance(BOF)shalldistributetothemembersoftheBOFaProposedBudgetforconsideration.The BOF maythen makerecommendations and adjustments to theProposed Budget. Onceadjustments havebeen made, theadoptedbudgetwilltakeeffectforthecomingFiscalYear beginning July1 and endingJune30. Asamatterofcourse,GeneralCouncilhastheresponsibilityto reviewandratifythe adoptedbudget,withorwithoutanyadjustments

Reporting

TheGS-Tshallprepareaquarterlyreportupdatingtheincomeandexpendituresforeachgiven month.Thereportshallbepreparedbythe10th dayofthesucceedingmonthanddistributedtoeach memberoftheBoardofFinanceandGeneralSuperintendent.AmonthlyreportofConference SupportshallbedistributedtotheCabinet.

Review

TheGeneralConferenceBoardofFinanceshallreviewallthebudgetsofBoardsorDepartmentsthat createandoperatebudgetsthatdonotcomedirectlyundertheapprovalprocessoftheGeneral BoardofFinance.

➢ INSURANCE COVERAGE

TheGS-T,incooperationwiththeChairmanoftheBoardofTrustees,willannuallyreviewinsurance policiestodetermineifinsurancecoverageisaccurateandappropriate.Thefollowingchecklistcan beusedasastartingpointfortheannualinsurancereview.

Annual Insurance Review Check List Coverage in main policy

Buildingfirecoverageamount: _____________

Doesitappearallmajorbuildingsareincluded? Yes____ No_____

Liabilitylimit:

Replacementcostincluded? Yes____ No_____

Includesworksofartorhistoricaltreasures: Yes____ No_____

Nameoflosspayee: ____________

Sexualmisconductcovered:Yes____ No_____ Amount_____________

Employeefidelitycovered? Yes____ No_____ Amount_____________

Coverage in riders or separate policies

Directorsandofficerscoveragecarried? Yes____ No_____ Amount_____________

Umbrellaliabilitycoverage? Yes____ No_____ Amount_____________

Schoolorotherspecialactivitycovered?Yes____ No_____ N/A_____

Types of Insurance to Consider:

Abuse Medical Automobile Molestation

COBRA Professionalliability

Crime Property

Dental Travelandaccident

Director’sandofficer’sliability Umbrella

Disability Worker’sCompensation

Flexiblebenefit

Group-term

Health

Keyemployee

Liability

Life

Long-termcare

ForfurtherguidanceseeBusby’sbook;Chapter8.

➢ UNRELATED BUSINESS INCOME POLICY

General Background

AllincomeoftheMinistryispresumedtobeexemptfromfederalincometaxunlesstheincomeis generatedbyanactivitythatis:

• substantiallyunrelatedtotheMinistry’sexemptpurposeorfunction,

• atradeorbusiness,and

• regularlycarriedon

TheInternalRevenueCode(IRC)providesafewexceptionstotheUBIfilingrequirements. Oneof themostsignificantistheuseofvolunteers.Ifafunctionissubstantiallycarriedoutbyvolunteers, thentherearenoUBIfilingrequirements.

Inaddition,incomederivedfromrentalofpropertythatisdebt-financedisalsoconsideredunrelated businessincome,unlessthefollowingexceptionsapply:

• TheactivitywhichgeneratedtheincomefulfillstheMinistry’sexemptpurpose,or

• Substantiallyall(85%ormore)ofanypropertyisusedfortheMinistry’sexemptpurposes.

• Neighborhoodlandrule-TheIRCprovidesanexceptiontotheUBItaxforrentreceivedon debtfinancedpropertyifthepropertywasacquiredbytheMinistrytobeusedforitsexempt purposewithinfifteenyears.

IfeithertheGCEMChasUBIof$1,000ormoreinanygivenyear,IRSform990TandpertinentState formsmustbefiledwhetherornotthereisataxliability. Furthermore,iftheGCEMChasnotbeen filing,theremaybealiabilityretroactivetowhentheactivitiesbegan. WhiletheMinistrymaynot oweanytaxes,thepenaltiesforfailuretofilecanbesignificant.

Policy

TheGS-TwillcontinuallyreviewMinistryactivitiesforpotentialUBIrelatedissues.Currently,the GCEMCisnotawareofanyUBIissues.

➢ RECORD RETENTION POLICY

AgoodrecordretentionpolicyiskeytotheMinistry’sabilitytoquicklyrespondtoinformation requestinitiatedby:media,IRS,externalauditors,insuranceadjusters,donors,orotherindividuals ororganizations.

Thefollowinglistisintendedtoprovidegeneralguidelinesregardingrecordretention. Thelistisnot anall-inclusivelist.Itisourpolicytousethefollowingasaguide: 3 years

• Servicecontractsaftertermination

• Vendorinvoices(Accountspayabledocuments)

• Customerinvoices(Accountsreceivabledocuments)

• Monthlyfinancialstatements/reports

• Inventoryrecords

• Fundappealletters

7 Years

• Accidentreports(aftersettlement)

• Insuranceclaims

• Insurancepolicies

• Loanandleaseagreements–aftermaturity/termination

• Donorgivingrecords

• Cancelledchecks

• Bankstatementsandbankdepositslips

• Bankreconciliations

• Payrollrecords(941’s,W-2’s,etc.)

• Employeerecordsafteremploymenttermination

• Expensereports

• Generalledger

• Checkregister Permanent

• Articlesofincorporation

• Bylaws

• Constitution

• DeterminationletterfromtheIRSandfromtheappropriatestateagency

• Boardofdirectorsminutes

• Litigationdocuments(includinglegalcorrespondence)

• CorrespondencefromIRS

• Realestaterecords

• Auditreports

• Annualinternalfinancialstatements

• Taxreturns(990’s,1099’s,etc.)

• Fixedassetdetails(scheduleofadditions,disposals,depreciation,etc)

➢ CONFLICT OF INTEREST POLICY

Summary

ThepurposeofthispolicyistoassisttheGCEMCinidentifying,disclosing,andresolvingpotential conflictsofinterest.TheGeneralCouncilhasadoptedaConflictofInterestpolicy(SeeExhibits).

Scope

Thefollowingstatementofpolicyappliesto:

• eachGeneralCouncilmember(hereafterreferredtoasthe“Council”)and

• allofficers

Fiduciary Responsibility

TheCouncilandofficersserveJesusChrist,andhaveaclearobligationtoconductallaffairsofthe Ministryinanuprightandhonestmanner.Eachpersonshouldmakenecessarydecisionsusinggood judgmentandChrist-likeethicalandmoralconsiderations,recognizingthat"itisrequiredthatthose whohavebeengivenatrustmustprovefaithful"(1Corinthians4:2).

AlldecisionsofCouncilandofficersoftheMinistryaretobemadesolelyonthebasisofadesireto promoteJesusChristthroughtheMinistry,inaccordancewithourstatementofpurpose.

Policy

CouncilandofficersagreetoplacethewelfareoftheMinistryabovepersonalinterests,interestsof familymembers,orotherswhomaybepersonallyinvolvedinsubstantialaffairsaffectingthe Ministry'sbasicfunctions.CouncilandofficerswillannuallycompleteConflictofInterest/Related PartyQuestionnaireperExhibit20-1.

SpecificDisclosure.

Councilandofficersshalldisclosefullytheprecisenatureoftheirinterestorinvolvementwhen participatinginanytransactionfortheMinistryinwhichanotherpartytothetransactionincludes:

• himself/herself;

• amemberofthefamily(spouse,parents,brothers,sisters,children,andanyotherimmediate relatives),or;

• anorganizationwithwhichtheBoardortheStaff,orhisfamily,isaffiliated. Disclosureshallbemadeatthefirstknowledgeofthetransaction.

GeneralDisclosure

Councilandofficersshalldiscloseallrelationshipsandbusinessaffiliations,whichmaynow,orinthe future,potentiallyconflictwiththeinterestsoftheMinistryorbringpersonalgaintothemortheir family,orbusiness.DisclosuremustbemadeifanyBoardorStafforamemberofhisfamily:

• isanofficer,director,trustee,partner,employee,oragentofanorganizationwithwhichthe Ministryhasbusinessdealings;

• iseithertheactualorbeneficialownerofmorethanonepercent(1%)ofthevotingstockor controllinginterestofanorganizationwithwhichtheMinistryhasbusinessdealings;

• isaconsultantforsuchanorganization.or;

• hasanyotherdirectorindirectdealingswithanindividualororganizationfromwhichheis materiallyorintangiblybenefited(e.g.,throughthereceiptdirectlyorindirectlyofcash,gifts, favors,privileges,orotherpropertyoradvantages).

Reporting of Disclosures

AlldisclosuresrequiredbyofficerswillbehandledbytheCouncil;andalldisclosuresastheyapplyto theCouncilshallbereferredtotheGS-T.InformationdisclosedtotheGS-TortheCouncilwillbeheld inconfidence,exceptwhentheMinistry'sbestinterestswouldbeservedbybringingtheinformation totheattentionoftheCouncilandtheofficersoftheMinistry.

Restraint on Participation

Councilandofficerswhohaveaconflictofinterestinanymattershallrefrainfromparticipatingin theconsiderationoftheproposedtransaction.Thepersonorpersonsinvolvedwillnotvoteonsuch matters.However,forspecialreasons,theBoardmayrequestinformationorinterpretationfromthe personorpersonsinvolved.

Determination of Possible Conflict of Interest

Anyindividualwhoisuncertainaboutaconflictofinterestinanymattershalldisclosesuchpossible conflicttotheappropriateindividualasnotedabove.

Ifapotentialconflictofinterestarises,theBoardisresponsibleforadvisingofsuchoccurrenceas soonaspossiblebutnotlaterthanthirty(30)daysaftertheoccurrence.Afterreceiving

acknowledgmentthatthedisclosurehasbeenreceived,thememberofSessionorStaffshallbe entitledtoactasthoughnoconflictofinterestexistsunlessheisnotifiedotherwisebytheBoardor theSecretarywithinonehundredandtwenty(120)daysofthedisclosure.

Failure to Disclose

EachmemberoftheBoardandtheExecutiveStaffisrequestedtocomplywiththisConflictof Interestpolicy.Suchcomplianceisarequirementforcontinuedaffiliationoremploymentwiththe Ministryand,further;knowingfailuretodiscloseapotentialconflictofinterestcouldresultin disaffiliationorterminationofemployment. Acknowledgmentofthisconflict-of-intereststatementis tobesignedannuallybyallofficers,boardmembers,andExecutiveStaffoftheMinistry.

➢ FRAUD POLICY

Background

Thecorporatefraudpolicyisestablishedtofacilitatethedevelopmentofcontrolsthatwillaidinthe detectionandpreventionoffraudagainsttheGeneralConferenceoftheEvangelicalMethodist Church(GCEMC). ItistheintentofGCEMCtopromoteconsistentorganizationalbehaviorby providingguidelinesandassigningresponsibilityforthedevelopmentofcontrolsandconductof investigations.

Scope of Policy

Thispolicyappliestoanyfraud,orsuspectedfraud,involvinganyemployeeoranyotherpartieswith aministryorbusinessrelationshipwithGCEMConanyfieldandintheUnitedStates.

Anyinvestigativeactivityrequiredwillbeconductedwithoutregardtothesuspectedwrongdoer’s lengthofservice,position/title,orrelationshiptoGCEMC.

Policy

Managementisresponsibleforthedetectionandpreventionoffraud,misappropriations,andother inappropriateconduct. Eachmemberofthemanagementteamwillbefamiliarwiththetypesof improprietiesthatmightoccurwithinhisorherareaofresponsibility,andbealertforanyindication ofirregularity.

AnyfraudthatisdetectedorsuspectedmustbereportedimmediatelytotheChairmanoftheBoard ofFinanceoraGeneralOfficer,whocoordinatesallinvestigationswiththeappropriatepartiesand GCEMClegalcounselasneeded.

Actions Constituting Fraud

Thetermsmisappropriationandotherfiscalwrongdoingsreferto,butarenotlimitedto:

• Anydishonestorfraudulentact

• ForgeryoralterationofanydocumentoraccountbelongingtoGCEMC

• Forgeryoralterationofacheck,bankdraft,oranyotherfinancialdocument

• Misappropriationoffunds,securities,supplies,orotherassets

• Improprietyinthehandlingorreportingofmoneyorfinancialtransactions

• Profiteeringasaresultofinsiderknowledgeofcompanyactivities

• Disclosingconfidentialandproprietaryinformationtooutsideparties

• Destruction,removalorinappropriateuseofrecords,furniture,fixtures,andequipment; and/or

• Anysimilarorrelatedinappropriateconduct

• Misstatementsandotherirregularitiesincompanyrecords,includingtheintentional misstatementoftheresultsofoperationsorministries

Theorganizationspecificallyprohibitstheseandanyotherillegalactivitiesintheactionsofits employees,managers,executives,andothersresponsibleforcarryingoutthedenomination’s activities.

Other Inappropriate Conduct

Suspectedimproprietiesconcerninganemployee’smoral,ethical,orbehaviorconduct,shouldbe resolvedbyappropriateactionasdeterminedbytheDisciplineoftheEvangelicalMethodistChurch, conductedbytheindividualresponsible.

Ifthereisanyquestionastowhetheranactionconstitutesfraud,contacttheChairmanoftheBoard ofFinanceortheappropriateGeneralOfficerforguidance.

Investigation Responsibilities

TheChairmanoftheBoardofFinancehastheprimaryresponsibilityforconveninganinquiryofall suspectedfraudulentactsasdefinedinthepolicy. Iftheinquirysubstantiatesaneedforfurther investigation,theChairmanoftheBoardofFinancewillassignanInvestigationTeam. Thisteam shallbenamedbytheChairmanoftheBoardofFinanceinconsultationwiththeGeneral Superintendent. Iftheinvestigationsubstantiatesthatfraudulentactivitieshaveoccurred,the ChairmanoftheBoardofFinancewillissueareporttotheGeneralSuperintendent,theGeneral Council,andifanElder,totheInvestigationCommittee.

Decisionstoprosecuteorrefertheexaminationresultstotheappropriatelawenforcementand/or regulatoryagenciesforindependentinvestigationwillbemadeinconjunctionwithlegalcounseland administration.

Confidentiality

TheChairmanoftheBoardofFinancetreatsallinformationreceivedconfidentially. Anyemployee whosuspectsdishonestorfraudulentactivitywillnotifytheChairmanoftheBoardofFinance immediately,andshouldnotattempttopersonallyconductaninquiry,investigation,orinterviews relatedtoanysuspectedfraudulentact.

Investigationresultswillnotbedisclosedordiscussedwithanyoneotherthanthosewhohavea legitimateneedtoknow. Thisisimportantinordertoavoiddamagingthereputationsofpersons suspectedbutsubsequentlyfoundinnocentofwrongfulconductandtoprotectGCEMCfrom potentialcivilliability.

Authorization for Investigating Suspected Fraud

TheChairmanoftheBoardofFinanceandMembersoftheInvestigationTeamwillhave:

• FreeandunrestrictedaccesstoallGCEMCrecordsandpremises,whetherownedorrented; AND

• Theauthoritytoexamine,copy,and/orremovealloranyportionofcontentsoffiles, computers,personaldrives,desks,cabinets,andotherstoragefacilitiesonthepremises withoutpriorknowledgeorconsentofanyindividualwhomayuseorhavecustodyofany suchitemsorfacilitieswhenitiswithinthescopeoftheirinvestigation.

Reporting Procedures

Greatcaremustbetakenintheinvestigationofsuspectedimproprietiesorwrongdoingssoasto avoidmistakenaccusationsoralertingsuspectedindividualsthataninvestigationisunderway.

AnemployeewhodiscoversorsuspectsfraudulentactivitywillcontacttheChairmanoftheBoardof Financeimmediately. Theemployeeorothercomplainantmayremainanonymous. Allinquiries concerningtheactivityunderinvestigationfromthesuspectedindividual,hisorherrepresentative, oranyotherinquirershouldbedirectedtotheChairmanoftheBoardofFinance. Noinformation concerningthestatusofaninvestigationwillbegivenout. Theproperresponsetoanyinquiriesis: “Iamnotatlibertytodiscussthismatter.” Undernocircumstancesshouldanyreferencebemadeto “theallegation”,“thecrime”,“thefraud”,“theforgery”,“themisappropriation”,oranyotherspecific reference.

Reporting Procedures

Thereportingindividualshouldbeinformedofthefollowing:

• Donotcontactthesuspectedindividualinanefforttodeterminefactsordemandrestitution.

• Donotdiscussthecase,facts,suspicions,orallegationswithanyoneunlessspecificallyasked todoso.

Termination

Ifaninvestigationresultsinarecommendationtoterminateanindividual,therecommendationwill bereviewedforapprovalbytheChairmanoftheBoardofFinanceandtheGeneralSuperintendent, andifnecessary,bylegalcounsel,beforeanysuchactionistaken.

TheChairmanoftheBoardofFinancedoesnothavetheauthoritytoterminateanemployee. The decisiontoterminateanemployeeismadebytheappropriateadministration.

Administration

TheChairmanoftheBoardofFinanceisresponsiblefortheadministration,revision,interpretation, andapplicationofthispolicy. Thepolicywillbereviewedperiodicallyandrevisedasneeded.

➢ PLANNED GIVING PROGRAMS AND POLICY

PlannedGivingPolicy

TheGiftAcceptancePolicyshallbefollowedregardingtheacceptanceofplannedanddeferredgifts suchasannuities,charitableremainderannuitytrustsandunitrusts,pooledincomefunds,andlead truststhatprovidedonorswithtaxdeductionswhileretainingbeneficialinterestsintheproperty. Specialconsiderationshallbegiventothefollowing:

1. Programadministrationandmanagementcommittee

2. Useoflegalcounsel

3. Confidentialinformation

4. Authorizationtonegotiate

5. Kindsofgiftsreceived

6. Investmentoffunds

7. Administrativefees

TheGCEMChasaDepartmentofStewardshipandDevelopmentwhoseresponsibilityitistomanage suchgiftstotheministry.

Estates/Bequests

Theprocedureusedintheestateplanningprocesswithcertainfamilies/individualswithinthe Churchisoneofarelationaladvisoryarrangement.Contactsaremadethroughvariousmeans;some arepersonalrelationships;somearethroughrequestedfinancialassistance;andotherscome throughperiodicfinancialseminars.

Inthecontactoffamilies/individuals,nolegalworkisperformed.Therearecertainsuggestions madetogiveguidanceandrecommendations.Thosearegivenonlyuponrequest.Also,theChurch hasseverallocalattorneyswhofamilies/individualsarereferredto.

Duringthediscussions,families/individualsareaskedtoconsiderleavingaportionoftheirestateto theChurch.

➢ GIFT ACCEPTANCE POLICY

1. Introduction

Evangelical Methodist Church Gift Acceptance Policy

A. TheobjectiveoftheEMCGiftAcceptancePolicyistomaximizethenumberandvalueofgifts, whileinsuringthebestinterestsofcurrentandfuturedonors.

B. TheEMCgoalsincludeprovidinganefficientandeffectiveresponsetoawidevarietyofgift offersthatwillminimizeliabilityforEMCwhilebeingconsistentwiththedonor’sneedsand priorities.

C. Sincegiftplanningcanbeacomplexprocessthesepoliciesandproceduresshouldbe consideredasguidelines. Itcanbeexpectedthatsomegiftproposalswillhavetobe consideredandnegotiatedbytheBoardofFinanceinviewofthemeritsofthegiftofferand thedonor’sdonativeintentasmeasuredbyhishistorywiththeEMC.

D. Thesolicitationofanygiftorcultivationofanydonorrelationshipshouldbecoordinatedwith properlyauthorizedindividualsrepresentingtheinterestsoftheEMC. Onlyemployeesor volunteersauthorizedbytheGeneralSuperintendentortheBoardofFinancemayrepresent theEMCingiftdevelopmentactivities.

2. General

A. ItisthepolicyoftheEvangelicalMethodistChurchtosolicitandgratefullyacceptgiftsofcash, securities,manufacturedproducts,bargainsales,realandpersonalpropertywhichcan directlyorindirectlysupporttheministryofChristianLeadershipdevelopment. Thesegifts maybeoutrightorinvolveadeferredgiftplan.

B. TheEMCwillnotpayafinder’sfeeorcommissionforanygift.

C. Unusuallylargeorotherwiseuniquegiftoffersmaybereviewedtoinsurethedonorhastitle totheasset,ismentallycompetentandcanaffordtomakethegift.

D. DonationsbycheckmustbemadepayabletotheEvangelicalMethodistChurch,nottoits employees,volunteersoragents.

E. GiftswithpotentialforcurrentorfutureliabilitymusthavepriorapprovalbytheBoardof FinanceoftheEMC.

F. Inordertoavoidcompromisingrelationshipswithothercharities,currentordeferredgifts involvingpartialdistributionstoothercharitiesmusthavepriorapprovalfromtheBoardof FinanceofEMC.

G. GiftsestablishingspecialaccountsorendowmentsshouldhaveaminimumgiftvaluetoEMC of$1,500and/orpriorapprovaloftheBoardofFinance.

H. UniquelydesignatedgiftsmustincludedonorauthorizationfortheEMCtore-designatethe giftwithinEMCministryiftheinitialdesignationbecomesinappropriatetothegoalsand purposesofthedenomination.

I. GiftoffersotherthancashandpubliclytradedsecuritiesarenotcompleteuntilanAcceptance LetterisissuedbytheheadquartersoftheEMC.

J. Majorgiftofferswhicharedeterminednottobeinthedonor’sfinancialinterestwillbe declinedbytheBoardofFinanceofEMC.

3. GiftsofPubliclyTradedSecurities

A. OffersorreceiptofpubliclytradedsecuritieswillnotbecompleteduntiltheGeneral Secretary-Treasurerhascontactedthedonortodiscuss:

1. Recommendconsultationwiththeirtaxadvisorregardingthetaximplicationsoftheir giftforappreciatedversusdepreciatedsecurities.

2. ToadvisethedonorthattheEMCnormallysellssecuritiesuponreceipt.

B. RequeststhatthestockbeheldratherthansoldmusthavepriorapprovalbytheBoardof FinanceincooperationwiththeBoardorDepartmentthegiftisdesignated.

C. TheEMCwilladviseprospectivedonorsthatthepreferredmethodfordonatingpublicly tradedsecuritiesisfor:

1. ThedonortomailtheunendorsedsecuritiestoEMCaccompaniedbyaletterstatingthe donor’sintenttodonatetheenclosedstockandinsuringthemailedstockcertificatesfor theirfairmarketvalue. Atthesametime,butinaseparateenvelope,thedonorshould mailaproperlyexecutedstockpowertotheEMC.

2. Ifthestockcertificateshavealreadybeenendorsed,itispreferablethattheybe personallydeliveredbythedonortoanauthorizedrepresentativeoftheEMC. This representativecanbeanemployeeoranon-employeedesignatedtoreceivethisgiftby theGeneralSecretary-Treasurer.

3. Occasionally,donorsneedtotransferstockquicklyinordertomeetadeadlinesuchas December31. TheGeneralSecretary-Treasurercanfacilitatepropertransfer arrangementwiththedonor’sbrokerforaccommodatingthisneed.

IV.DonationsofCloselyHeldStockandOtherBusinessInterests

A. TheEMCAdministrationmustgivepriorapprovaltoacceptinggiftsofcloselyheldstock, generalpartnerships,limitedpartnershipsorlimitedliabilitycompanyinterestsandtheir subsequentsale.

B. TheEMCwillnotenterintoabindingagreementforthesaleofthese securitiespriorto receivingtheirgift.

C. ThegiftwillbeconsideredcompletewhenaletterofacceptanceisissuedbyEMCandthe stockcertificateisdeliveredtoanauthorizedagentofEMCoronthedatethestockisproperly mailed.

D. DonorsofcloselyheldstockwillbeadvisedbytheGeneralSecretary-Treasurerorthe ChairmanoftheBoardofFinancetosecureanappraisalbeforetheircontribution.

E. Inlieuofacashreceipt,theGeneralSecretary-Treasurerwillacknowledgethegiftofstockby letterdescribingtheassetcontributed.

F. Ifthereisnotadequatetimetoresearchagift,theEMCwillencouragethedonortoconsider transfervehiclessuchasCharitableTrust,alimitedliabilitycompanyorcorporationwhich namestheEMCastheincomebeneficiaryafterthepropertyissold.

V. GiftsofLifeInsurance

A. DonorswillbeencouragedtomakegiftsoflifeinsurancetoEMCbymakingEMCthe irrevocableownerandbeneficiaryofaneworexistinglifeinsurancepolicy.

B. EMCwillalsoencouragegiftplansforlifeinsurancewherethedonorretainsownershipofthe policybutnamestheEMCtheprimary,secondary,finalorfractionalbeneficiaryofanewor existingpolicy.

C. Allinquiriesfordonationsandserviceoflifeinsurancepolicieswillbereferredorcoordinated withtheGeneralSecretary-Treasurer.

D. DonorswhoretainownershipofpoliciescontainingcharitablegiftstoEMCwillbe encouragedtoretainthepolicyintheirpossession.

E. DonorswhoassignirrevocableownershipofalifeinsurancepolicytoEMCasacharitablegift willbeadvisedtomaketheirpremiumpaymentsthroughEMC.

F. IfadonorofanEMCownedpolicyisunableorunwillingtocontinuepremiumpayments,the GeneralSuperintendentinconsultationwiththeGeneralSecretary-TreasurerandChairman oftheBoardofFinance,willdecidewhetherornottokeepthepolicyinforcebypayingthe nextpremiumbyborrowingfromthepolicy,utilizingdividends,cashinginthepolicy,or continuepayingpremiumsfromdenominationalfunds.

G. Inlieuofacashreceipt,theGeneralSecretary-TreasurerwillacknowledgethegiftofLife Insurancebyletter.

VI.AcceptanceofRealProperty

A. Preliminaryresearchonproposedgiftswillbegatheredbytheauthorizedrepresentative’s completionoftheGiftofRealEstateInformationform.

B. PotentialliabilityconcernstotheEMCinclude:

i. Environmentalcontamination.

ii. EMCtestimonyorpublicrelationconsiderations.

iii. Debtormaintenancefeesassociatedwiththeproperty.

iv. Otherresponsibilitiesorencumbrancessuchaseasements.

v. Salabilityandmarketvalue.

vi. Donorrestrictionsonuseorsaleoftheproperty.

C. AllproposedpropertydonationswillhaveaminimumofLevel1EnvironmentalAssessment.

D. TheEMCwillrecommendthedonorsecuretheirownMIAappraisal.

E. EMCwillalsosecureaseparateappraisalrangingfromarealestateagent’s“windshield appraisal”toanMIAappraisal.

F. WhenrequestedbythedonorandrecommendedbytheBoardofFinance,thedenomination ofEMCwillconsiderpayingfortheMIAappraisalneededbythedonor.

G. EMCwillrequiretitleinsuranceforallgiftsofproperty.

H. Inlieuofacashreceipt,theGeneralSecretary-Treasurerwillacknowledgethegiftofproperty byletter.

I. Ifthereisnotadequatetimetoresearchagift,theEMCwillencouragethedonortoconsider transfervehiclessuchasaCharitableTrust,alimitedliabilitycompanyorcorporation,which namestheEMCastheincomebeneficiaryafterthepropertyissold.

VII.GiftsofTangiblePersonalProperty

A. Offersofjewelry,artwork,collectionsorotherpersonalpropertymustbeapprovedbythe BoardofFinanceoftheEMC.

B. TheAdministrationwillreviewtheappropriatenessoftaxinformationprovidedtothedonor byauthorizeddonorrepresentative.

C. Giftsofpersonalpropertywillbesoldasquicklyaspossibleafterreceiptunlessotherwise approvedbytheBoardofFinanceandtheBoardorDepartmentofthedesignatedgift.

D. Offersofotherpropertysuchasmortgages,notes,copyrights,royaltiesandeasementsmust beapprovedbytheBoardofFinanceofEMC.

E. Inlieuofacashreceipt,theGeneralSecretary-Treasurerwillacknowledgethegiftofproperty byletter.

VIII.Bequests

A. Giftsthroughestateplanswillbeactivelyencouraged.

B. Annual(ormorefrequentlyasnecessary)cultivationvisitswillbemadetoindividualsto maintainandwhenpossibleanddesirable,increasethevalueoftheirdeferredgifttotheEMC.

C. TheGeneralSecretary-TreasurerwillacknowledgereceiptofbequestsandexpressEMC condolences,whenpossible,tobereavedfamilymembers.

D. BequestswhicharenotconsistentwiththeEMCGiftAcceptancePolicieswillbedeclinedin writingupondecisionoftheBoardofFinance.

IX.CharitableRemainderTrusts

A. TheEMCwillenabledonorstoserveastheirowntrusteeorsecureanindependenttrustee whenthatisthedonor’spreference.

B. ApprovalfortheEMCtoserveastrusteeorco-trusteeofCharitableRemainderUni-trustsand AnnuityTrustsmustbesecuredinadvanceoftheexecutionofthetrust.

C. Whenservingastrustee,theEMCwillhavetheabilitytoresignastrusteeifnecessary.

D. TheEMCwillonlychargedirectcostsfortrustmanagement. Itwillnotchargeoverhead.

E. WhentheEMCservesastrusteeitwillconsultwiththedonoroninvestmentobjectivesbut willonlymanageinvestmentsincompliancewiththeEMCInvestmentPolicy.

F. TheEMCwillnotserveastrusteeorco-trusteeforatrustwhichnamesmorethantwoincome beneficiariesorforatrustwhichrequiresoranticipatesincomepaymentsforlongerthan20 yearswithoutapprovaloftheBoardofFinanceofEMC.

G. TheEMCwillnotserveastrusteeorco-trusteesfortrustswhereitspresentvaluetotheEMC islessthan$10,000orEMCistoreceivelessthan25%ofthedistributionfromthetrust withoutapprovaloftheBoardofFinanceofEMC.

H. Whenappointedastrusteeorco-trustee,theEMCmustknowinadvancethetrust’sactualor intendedfundingpriortothetrustexecution.

I. WhentheEMCservesastrusteeorsuccessor trusteeforatrustotherthanaCharitable RemainderUni-trustorAnnuityTrust,thetrustmustdesignateaspecialtrusteeforfinancial healthcaredecisionsintheeventthenon-charitableincomebeneficiariesare,orbecome unabletomakethesedecisions.

J. TheEMCwillacceptRetirementandEducationUni-trustswhicharefundedwithlessthan $10,000butanticipatesregularadditionalgifts.

X.CharitableGiftAnnuities

A. EMCwillnotacceptcurrentGiftAnnuitiesforbeneficiariesunderage70withoutprior approvaloftheBoardofFinance.

B. GiftAnnuitieswillhaveamaximumoftwoincomebeneficiaries.

C. TheminimumcontributionforaGiftAnnuitywillbe$10,000.

D. ProposedfundingofaGiftAnnuitywithrealestatewillbereviewedbytheEMCBoardof Financetoassureadequatefinancialresourcesforannuitypaymentsuntilthepropertyis sold.

XI.LifeEstateGifts

EMCwillacceptgiftsofrealpropertyinwhichthedonormaintainsalifeinterestwhenthegift appearstobeappropriatewiththedonor’scurrentandfuturefinancialcircumstancesandneeds.

MINISTRY CARDHOLD AGREEMENT

I,_________________________________ _,herebyacknowledgereceiptofa________________________________ (NameofMinistry) CardNumber__________- - -

(NameofCreditCardCompany)

Iunderstandthatimproperuseofthiscardmayresultindisciplinaryaction,asoutlinedinthe ministryhandbook,aswellaspersonalliabilityforanyimproperpurchases.Asacardholder,I agreetocomplywiththetermsandconditionsofthisagreement,includingtheMinistry CreditCardPoliciesandProceduresattachedtothisagreement.

IacknowledgereceiptofsaidAgreementandPolicies/ProceduresandconfirmthatIhave readandunderstandthetermsandconditions.Iunderstandthatbyusingthecard,Iwillbe makingfinancialcommitmentsonbehalfoftheministryandthattheministrywillbeliableto forallchargesmadeonthiscard. (initials)

(NameofCreditCardCompany)

IwillstrivetoobtainthebestvaluefortheMinistrywhenpurchasingmerchandiseand/or serviceswiththiscard.

AsaholderofthisMinistrycard,Iagreetoaccepttheresponsibilityandaccountabilityforthe protectionandproperuseofthecard,asenumeratedabove.Iwillreturnthecardtothe BusinessAdministratororTreasurerupondemandduringtheperiodofmyemployment.I furtheragreetoreturnthecarduponterminationofemployment.Iunderstandthatthecard isnottobeusedforpersonalpurchases,andifthecardisusedforpersonalpurchasesorfor purchasesforanyotherentity,theMinistrywillbeentitledtoreimbursementfrommeofsuch purchasesandshallbeentitledtopursuelegalaction,ifrequired,torecoverthecostofsuch purchases,togetherwithcostsofcollectionandreasonableattorney’sfees.

Signature________________________________________________ Date_________________________ (Cardholder)

SocialSecurityNumber____________________________________

Signature________________________________________________

(BusinessAdministrator)

Signature

(Treasurer)

Employee Name: Department:

MINISTRY CREDIT CARD REQUEST FORM

Primary budget account number to be used:

Primary purpose for use of card: (Miscellaneous office supplies, travel, programmatic expense, etc.)

Budget director’s signature:

General Secretary-Treasurer:

Credit cards will be issued in the amount of $X,XXX unless otherwise requested and approved. Please indicate below if an amount greater than $X,XXX is being requested and for what purpose:

Amount: ____________________________

Purpose:

Please return this request to the Accounting Department. Please allow 2-4 weeks for processing.

Accounting Department use only:

Amount approved________________________________ Card #

Signature___________________________________________________

Date_______________________________________________________

(General Secretary-Treasurer)

CONFLICT OF INTEREST/RELATED PARTY QUESTIONAIRE

ConflictsofInterest/RelatedParties:

Meansyourself,yourspouse,familymembers,businessinterestsand/orassociates.Conflictsof interestmayarisewhenonepartyhastheabilitytosignificantlyinfluencethemanagementor operatingpoliciesoftheother,totheextentthatoneofthetransactingpartiesmightbe preventedfromfullypursingtheinterestsoftheGeneralConferenceoftheEvangelicalMethodist Church(GCEMC)ratherthanhis/herownseparateorrelatedpartyinterests.

Considering the period from September 20xx to date:

1. I(orarelatedpartyofmine)hold,directlyorindirectly,a positionoffinancialinterestinanoutsideconcernfromwhichthe GCEMCsecuresgoodsorservices.

2. I(orarelatedpartyofmine)renderdirective,managerialor consultativeservicesto,oramanemployeeof,anyoutside concernthatdoesbusinesswiththeGCEMC.

3. Ihaveacceptedgifts,orotherbenefits,fromanyoutsideconcern thatdoes,orisseekingtodobusinesswiththeGCEMC.

4. Ihaveparticipatedinmanagementdecisionsconcerning transactionsthataffectorbenefitme,myfamily,ormypersonal financialinterests.(Otherthanordinarymanagementdecisions onemploymentmatterssuchascompensation.)

5. I(orarelatedpartyofmine)havebeenindebtedtotheGCEMCat sometimeduringtheabovestatedperiod.Ifso,pleasenotethe nature,date,termsandamount.

6. TheGCEMChasbeenindebtedtome(orarelatedpartyofmine) atsometimeduringtheabovestatedperiod.Ifso,pleasenotethe nature,date,termsandamount.

YES* NO

*Pleaseprovidefurtherexplanationofany“Yes”answersandinformationonanyrelated informationonanypartytransactionsofwhichyouareaware.

Authorization Agreement for Automatic Debits (ACH Debits)

Iherebyauthorize_______________________________ (theCompany,hereinafterreferredtoastheCompany) to make debits from time to time in the account identified below at __________________________________ (Depository FinancialInstitution,hereinafterreferredtoasDFI)andauthorizetheDFItoacceptthesedebits. Adjustingentries tocorrecterrorsarealsoauthorized. Itisagreedthatthesedebitsandadjustmentsmaybemadeelectronically andundertheRulesoftheNationalAutomatedClearingHouseAssociation. Thisauthorizationwillremainineffect until written notice of termination is given to the Company. I acknowledge receipt of a filled in copy of this Authorization.

NameofDFI

AccountNumbertoDebit

Address/City/State/Zip

Routing&TransitNumber(9digitslong)

Please Attach a Voided Check to This Authorization

Joint Ministry Agreement (JMA)

between ______________________________ Evangelical Methodist Church and the General Conference EMC Board of Evangelism

Date: ______________

______________________________ Evangelical Methodist Church of ________________________, __________, shall be hereafter referred to as “_______________________________” and the Evangelical Methodist Church General Conference Board of Evangelism as “EMC”.

It is the desire of the EMC to encourage __________________________ in its initial growth by assisting with the pastoral salary. The EMC recognizes the application submitted by _____________, and the following points outline the mandatory terms set forth by the Board of Evangelism.

1. The EMC will provide_____________ in financial support for _____________________________ self support plan, with the intention that by the end of the ____ month term established, __________________ will be self-funding, self-governing, and self-propagating. It is expected that as ______________________ grows numerically and spiritually the congregation will eventually assume all the responsibility for its finances, ministry and administration.

2. The EMC offers this financial assistance not as a loan, but as a grant in the spirit of brotherhood, believing that this is Kingdom money wisely invested in growing Kingdom-minded churches. However, ________________ agrees that if at any point in the future it should leave the EMC these monies (as well as any others heretofore or later given or loaned from EMC, [per EMC Discipline]) must be repaid in full.

3. Starting on ___________________ the EMC will begin giving __________________ the monthly amount of ____________ for __________________. This will be continued for______ months.

4. Starting on ____________________ the EMC will begin making reduced monthly payments to ________________ in the amount of ________________ for _______ months.

5. There will be no payments after ___________________.

6. This total amount of $________________, spread over _____ months in the manner described in points 3 and 4, is to be used for the pastor’s salary and/or social security taxes. The pastor is free to apply the funds as he sees fit, but the church treasurer is required to pass the entire amount on to the pastor, withholding none of it except for taxes, if so directed by the pastor.

7. It is agreed that monthly financial and statistical reports from ____________________ be sent to the General Treasurer who will forward the report to the Conference Superintendent and the chair of the General Board of Evangelism during all _____ months of the term.

8. Funds are given based on a continuing positive relationship between parties. The EMC holds the right to renegotiate or suspend this agreement at any time circumstances and/or resources should change. Two copies of the JMA are to be signed, one to be retained by the __________________ and one to be recorded with the General Secretary.

(Pastor)

(Chairperson of Board of Stewards)

(Chairperson EMC/General Board of Evangelism)

(General Secretary)

Board of Ministerial Education

1. OverseesanddirectsoperationoftheSchoolofMinistryinpartnershipwiththe EvangelicalChurch.

2. OverseesanddirectsoperationoftheC.P.HaggardSchoolofMinistry.

3. TheChaircoordinatestherecordsofcredentialholderswiththeGeneralSecretaryin regardtotheCEUrequirements.

4. TheChairreviewstheprogressofallcredentialholderswiththeboardmembersin regardtotheirstatusthroughtheSchoolofMinistry.

5. TheChairreportsanupdatedrecordforallcandidatespreparingtoproceedto ordinationorconsecrationcoordinatingwiththeGeneralSecretaryrecords.

Board of Ministerial Relations

TheGBMRhasadoptedthefollowingstandingrules:

1. AnyonewithoutcredentialsintheEMCdesiringtocandidateforanEMChurch,must meetwiththeGBMRandberecommendedand approvedforacredentialbefore candidatinginanEMChurch. (TobeeligibletocandidateinanEMChurch,an individualmustbecredentialedasanElderorAdmissiononTrialintheEMC.)

2. AbackgroundcheckisrequiredofallcandidatespriortomeetingwiththeGBMR. The GBMRdetermineswhichcandidateswillneedanEMAPassessment.

3. Whenanindividual,non-credentialedwiththeEMC,isplacedinanEMChurchbya superintendent,he/shemayworkaspulpitsupplyonly. Anyonewishingtoserveona permanentbasisisrequiredtoenrollintheHaggardSchoolofMinistryforLocal Preacher’sLicense.Yearlyrenewalofthisstatusiscontingentupondemonstrating significantprogresstowardcompletionandyearlyreportingtotheGBMR.

4. Whenanon-EvangelicalMethodistministerisplacedaspulpitsupplybya superintendent,anAnnualContractAgreementwillbesignedbeforehe/shecan becomethepulpitsupply.

5. NoonewillbegrantedaLocalPreacher’sLicensewithoutfirstcompletingthe educationalrequirements,havingbeenrecommendedbytheGBME,andhavingbeen interviewedbytheGBMR.

6. ASuperannuatedElderissomeonewhoisofretirementageandisretiringfromfulltimeministry.

7. AnElderintheEMCwhorequestslicenseasanApprovedEvangelistmustsenda requesttotheboardchairtobeconsideredforrecommendationtoGeneralConference orGeneralCouncil. ApprovedEvangelistsshallreportannuallyasothercredential holders.

8. AllnewcandidatesmustmeetwiththeGBMRinpersonorbyvideoconferenceinorder tobeapprovedforcredentials. Thecandidatemusthavetheequipmentnecessaryfor clearvideoconnectionforelectronicmeeting.

9. Ifacandidatewithoutapriorapplicationdesirestomeetwiththeboard,thechairmust receivearequestfromthecandidate’sconferencesuperintendent. Noapprovalswillbe givenwithoutapriorapplicationandbackgroundcheck.

10.TheGeneralBoardofMinisterialRelationsadoptsastandingrulethatrepresentatives oftheBoardofMinisterialEducationand/orConferenceSuperintendentsare welcomingtoattendmeetingsoftheGBMRasnon-votingguests,forcandidate interviewsonly.

Board of Trustees

TheTrusteesholdintrustallpropertyonbehalfofandforthebenefitofthedenomination. (See Discipline ¶119) TheBoardisresponsible,incooperationwiththeGeneralBoardof Finance,foralldenominationalproperty. Trusteesaretohaveexperienceinconstructionand business.

Board of World Missions

TheGeneralBoardofWorldMissionssupportsthecall,trainingandfinancialsupportof EvangelicalMethodistChurchmemberstoserveasmissionaries.

DUTIES OF THE BOARD

1. TohavegeneraloversightofthemissionprogramoftheEvangelicalMethodistChurch,with specialreferencetoitsdevelopmentandexpansionthroughlocalchurchministryandthe MissionConferences ThisincludesallGeneralChurchmissiontrips,workteams,andsuch, outsidethecontinentalUSA.

2. Todetermineandcarryouttheapprovedpolicyandprogramofthemissioninterestofthe EvangelicalMethodistChurch,subjecttoreviewandrevisionbytheGeneralConferenceor GeneralCouncil.

3. Toinvestigatefieldsforpotentialministryandtodeviseplansofministryandbudget. New fieldsmaybeestablishedwithGeneralCouncilapproval. MissionConferencesmusthave approvaloftheGeneralConference(¶501).

4. Tosolicit,secure,andexpendmoneyforthesupportofallworkunderitscare,i.e.;tobuild andmaintainchurchesandotherinstitutionsofChristianservice;andtoenlistandtrain workers.

5. Toreceive,initiate,andproperlyadministerallpropertiesandfundsformissionpurposes.

6. Tocreateandmaintainco-operativerelationswiththeboards,committeesandother agenciesoftheEvangelicalMethodistChurch,aswellaswithaffiliatedandapproved missionaryorganizations,interdenominationalandothermissionaryagenciesofhomeand foreignfields.

7. TorecommendtoGeneralCouncilonememberoftheBoardofWorldMissionsasa representativetoeachGoverningBoardofAffiliatedMissionaryOrganizations.

8. ToprepareannualfinancialreportstotheGeneralCouncil. Thisisgivenin Financial Report of Treasurer.

9. TomakeareportofitsactivitiesduringthequadrenniumtotheGeneralConference. This reportshallincludeanauditedfinancialreport. TheBoardshallmakeanannualreport throughitschairpersontotheGeneralCouncil.

10.Topromotemissioninterest,educationandprojectsoftheEMM,EMWandEMY.

11.ToreceivereportsfromEMCmissionariesontheiractivityandassisttheiragencyto providecarefortheseupontheirreturn.

12.Insurethatreturningmissionariesareproperlyassistedintheirdeputationandfunding.

DUTIES OF THE OFFICERS

13. Chairperson: TheChairpersonshallpresideatallmeetingsoftheBoardandshallhavea voteonallbusinessoftheBoard. He/sheshallpromotetheworkvigorouslyandshall administratetheaffairsoftheBoard.

14. Secretary: TheSecretaryshallmaintaintypedminutesofeachmeeting,anddistribute copiestoeachmemberoftheBoardwithin30daysaftereachmeeting. Minutes,records, documentsandreportsshallbehousedatInternationalHeadquarters.

15. Treasurer: TheGeneralConferenceTreasurershallreceiveandhandlethefundsofthe Board,holdingtheminasafedepositoryanddisbursingthemaccordingtotheregulations oftheBoardandthe Discipline of the Evangelical Methodist Church. TheTreasurershallbe chargedwiththeresponsibilityofreceivingandholdingallfunds,endowments,and securitiesoftheBoard,andproperlydisbursingthereturnstherefromaccordingtothe regulationsofthe Discipline of the Evangelical Methodist Church.

PLAN OF FINANCIAL SUPPORT

16. Fundsthataredesignatedbytheirdonorsforspecialpurposesshallbeusedspecifically forthosepurposesunlesspermissionisgrantedbythedonorstochangethepurposesfor saidfunds. Thetreasurershallissuereceiptsforallfunds.

17. Undesignatedgiftsover$50,000–aminimumofone-thirdoftheamountshallbeinvested intheBOWMendowmentfund.

18. TheChairshallhavetheauthoritytodirectthetreasurertoexpendupto$2,000onany singleitem. TheChairmustobtainanauthorizationfromtheBoardforamountsover $2000. Thisauthorizationmaybeobtainedbytelephoneandconfirmedbye-mailorother writtenmeans.

PROJECTS AND BUDGETS

19. MissionConferencesshallsubmitprojectrequeststotheBoard

20. Projectsshallbefinancedbyspecialappeals,e.g.Journeyofferingsformoneyoutsidethe budget. NewprojectsshallrequireapprovalbytheBoardwhentheyexceed$1,000. As anoverallguideline,75%ofthefundsrequiredtofinanceafieldprojectwillbe“onhand” priortobeginningthatproject.

MISSION CONFERENCES

21. Whenamissionoragroupoftrans-culturalchurchesdesiresMissionConference status,upontherecommendationoftheGeneralConferenceBoardofWorldMissions andtheapprovaloftheGeneralCouncil,atwo-thirdsvoteoftheGeneralConference willbenecessaryforrecognitionasaMissionConference.

22. When,inthejudgmentoftheBoard,amissionfieldoutsidetheUSA,hasgrownand maturedtoapointthatitisbeingadequatelygoverned,extendedandsupportedbythe nationalpersonnelonthefield,itmaybeorganizedintoaMissionConferenceandbe calledbythenameofthecountrywhereitexists(Example:MexicanConference).

23. EachMissionConferencemayadoptmissionalprioritiestouseaslongastheyarenotin conflictwiththegoalsandpoliciesofthe Discipline oftheEMC.

Name

Board of Youth and Children’s Ministries

ThenameofthisBoardshallbetheGeneralConferenceBoardofYouthandChildren’s Ministries,hereinaftercalledtheBoard. TheBoardshallbeunderthedirectionandcontrolof theGeneralConferenceoftheEvangelicalMethodistChurch,operatingundertheguidelinesof the Discipline of the Evangelical Methodist Church.

Mission

ThemissionoftheBoardistoequipyouthandyouthleaderstoimpactourworldforChrist.

Vision

ThevisionoftheBoardistoequipyouthandyouthleaderstoimpactourworldforChrist throughthefulfillmentofourfourcorevalues. OurcorevaluesareUnity, Equipping/Mentoring,Evangelism,andMissions

Core Values

Unity

• Wearecommittedtounifiedleadershipthatworkstomaintainastrongconnection betweenthegeneralandlocallevels.

• Westriveforaunifiedfocusforyouthministrydenominationwide. Equipping/Mentoring

• Wearecommittedtothedevelopmentandimplementationofeffectivestrategiesfor theequippingandtrainingofyouthleaders.

• WearecommittedtotrainingyouthleaderstomentorthenextgenerationofEMYouth forpresentandfutureleadership.

Evangelism

• WebelieveinthepowerofGodtoradicallychangelives.

• Wearecommittedtoprovideopportunitiesandresourcestoaffectchangeandimpact livesforJesusChrist.

Missions

• WearecommittedtoraisingawarenessoftheBiblicalcommandtotakethemessageof theGospeltoalltheworld.

• Wearecommittedtocreatingopportunitiesforyouthtoexperiencemissionsbothat homeandabroad.

Officers and Committees

TheChairpersonoftheBoardshallbedesignatedinaccordancewiththeDiscipline. The BoardshallelectaViceChairperson,andasecretary. Eachmembershallbeassignedduties asneededtofulfillthemission,vision,andcorevaluesoftheBoard. Dutiesinclude,butare notlimitedtothefollowing:

• Camps&Retreats

• Training

• Missionsathomeandabroad

• Publications/Promotions

• Websiteandsocialmedia

EachboardmemberwillalsobeassignedaregionorregionsasaliaisonoftheBoard.

Meetings

TheBoardmaymeetinpersonatleastonceeachyear,withatleastoneadditionalconference call. MeetingdatesandtimeswillbesetbytheChairpersoninconsultationwiththeGeneral Superintendent.

Budget

TheBoardshallprepareayearlybudgettopresenttotheGeneralBoardofFinancein accordancetotheoperationalproceduresoftheEMC.

SECTION THREE COMMITTEES

Conflict Resolution Committee

Purpose

TheEMCbelievesthatmediatingandconciliationwithinthedenominationisanessential ministryofthelocalchurchandisnotataskreservedforprofessionals,lawyers,andthe secularcourts (Matthew18:17;ICorinthians6:4;Ephesians3:10;Hebrews13:17).

Ourpurposeistoenablepeacemakingwithinourchurchesandconferencestoresolve conflictsbypromotingbiblicaljusticeandreconciliationbasedupontheBibleasthesole authority(2Timothy3:16-17).

Duties

Tofulfilltherulesofourconnectionalrelationshipfoundinthe Discipline of the Evangelical Methodist Church,¶701. Therefore,acomprehensiveministryisperformedthatworksacross theentirespectrumofconflictresolutionsrangingfromthosewithinlocalchurchbodies,to disputesbetweentheGeneralConferenceandlocalchurches. Thisprocessisinitiatedwith mediationbaseduponbiblicalprinciplesandwhenneededbindingarbitrationbasedupon Scriptureandthecovenantconnectionalrelationshipdescribedinthe Discipline.

Standard

• Rulesformediationandconciliation

• Process/Procedure

• Fees–willbesetinaccordancewithstandardsforarbitrators

• Forms–usedinregularconciliationandarbitration

• ThedenominationshallusetrainedandcertifiedmediatorswithintheEMC

Court of Appeals Committee

TheCourtofAppealswillhavejurisdictiontohearandtodetermineallappealsfromthe decisionsoractionsofanyConferencetrialcourt. Thecourtshallreviewtheentirerecordof thecaseandallstepsthathavebeentakentherein. Ifthecourtdiscoversanysubstantial errorprejudicialtotherightofanyperson,itshallcorrectsucherrorbyorderinganew hearingtobeconductedinamannercapableofgivingrelieftothatpersonaffectedadversely bypreviousproceedingsordecisions

SeveneldersareelectedbytheGeneralConferenceuponnominationbytheNominating Committee. Membersshouldhaveaproficientunderstandingofthe Discipline.

Historical Committee

TheHistoricalCommitteecollectsandorganizesthehistoricaldataandpicturesofthe denomination. AyearlyreportissubmittedtotheGeneralCouncilgivinganaccountofevents anditemsofhistoricalinterestfromthepreviousyear.

Minutes Committee

TheMinutesCommitteeassiststheGeneralSecretaryinreviewingforaccuracytherecorded minutesoftheGeneralCouncil,theJourneysandGeneralConference. Membersareselected bytheGeneralSecretary.

Program Committee

TheCabinetofSuperintendentsfunctionsasthePlanningCommitteeforallJourneysand GeneralConferences.

Resolutions Committee

PresentsareportattheadjournmentoftheGeneralConferenceextendingappreciationand acknowledgementofpeople,guests,andhighlightsoftheConference.

Nominating Committee

Guidelines for Nominations

Thecriteriafornominationsofchairpersonsarebasedprimarilyonleadershipexperienceand expertiseintheareaofministrybeingconsidered.Thereisaconsciouseffortforlayrepresentation, opportunitiesforwomeninleadership,varietyinethnicandculturalbackgrounds,andgeographic representation. Thefive-foldstandardis:

(1) LoyaltytoChristandthedenominationinmaintainingagoodreputationofpersonalholinessand participationindenominationalministriesbothpersonallyandinthelocalchurch,

(2) Havingapassionforthespecificareaofministry,

(3) Havingaskillsetwiththespiritualgifts,naturaltalentsandabilitiesfortheareaofministry,

(4) Havingexperienceofasuccessfulministryandfruitthatrelatestothespecificnomination,

(5) Attendingorpastoringachurchthatisup-to-dateintheirconferencesupport.

Additionally,allnomineesshouldbeactivelyattendingandsupportingalocalEvangelicalMethodist Churchoranapprovednon-EMCministryfortwoyearsormore,andmusthaveanunderstandingand commitmenttoMethodistheritage,ourcongregational-connectionalformofgovernment,andan understandingofWesleyan-ArminianBiblicaltheologyandScripture. Allnomineesshouldbe accessiblebyelectronicmedia,andthechairshouldhaveademonstratedproficiencyinconducting meetingsbothface-to-faceandelectronically.

General Board of Christian Education

• Experienceinteachinginthelocalchurch

• Whenpossible,aneducatorinthepublicschoolorhighereducation,especiallyforthechair

• Understandingofthescopeandsequenceofcurriculum

General Board of Discipline Revision

• Preferallmemberstohaveservedforeightyearsinthelocalchurchleadershiporpastorate.

• Anabilityinwriting,grammar,andpropersentencestructure

General Board of Finance

• Preferallmemberstohaveservedforeightyearsinthelocalchurchleadershiporpastorate

• Businessexperience

• Accountingexperience

General Board of Evangelism

• Experienceinplanningandexecutingaplanforevangelisminthelocalchurch

• Prefersomeonewithdirectinvolvementinchurchplanting

General Board of Ministerial Relations

• Requireallmemberstohaveservedforeightconsecutiveyearsasacredentialholderinthe EMC

• Experienceininterviewingandevaluationofindividualsforpositionsinthelocalchurch

• Maintainsagoodreputationamongtheclergywithcleanintegrity

• DemonstratesabsoluteloyaltyandunderstandingtoWord,Sacrament,andOrderinour Methodisttradition

General Board of Ministerial Education

• ThecompletionofanundergraduatedegreeinaBibleSchoolorUniversityorpresently enrolledinschool

• Preferpersonswithexperienceinacademicpursuitsandadministration

General Board of Youth and Children’s Ministries

• Experienceinsuccessfullocalchurchyouthministryorchildrenministry

• Knowledgeofculturalshiftsaffectingchildrenandyouthministry

• Faithfulnessinattendanceandgivingofthelocalchurch

• Cleanbackgroundcheckinrelationshipswithchildrenandyouth

• AcommitmenttotheAuthorityoftheScripturesastheultimatesourceoftruthandlifestyles

General Board of World Missions

• Experiencepreferredinservingonshort-termmissionsteams,orinlong-termmissions

• Activein,orpreviousexperiencewiththemissionprogramoftheirlocalchurch

General Board of Trustees

• Trusteesaretohaveexperienceinconstructionandbusiness. (fromOPManualp.66)

• Generalknowledgeofrealtyandrealestatetransactions

• Ideally,previousexperienceasaTrusteeinalocalchurch

Evangelical Methodist Women

• Officersmustbeactiveinthewomen'sministriesoftheirlocalchurch

• Experienceinplanningwomen’sministriesandretreats

Evangelical Methodist Men

• Officersmustbeactiveinthemen'sministryoftheirlocalchurch

• Theavailabilityandwillingnesstoparticipateinmissionworkteams

Department of Chaplain Ministry

• Presentlyinvolvedin,orretiredfromachaplaincyministry

• Understandingoftheendorsementprocessformilitaryandhospitalchaplains

Department of Prayer

• ConferenceSuperintendent’sspousesareinvitedtoserveasmembers

• ChairservesontheConnectionstaffforplanningfutureissues,andisinvitedtowriteorrecruit prayerarticlesroutinelyforthemagazine

Department of Publications

• Chairshouldhavejournalismexperience

• Membersmusthaveaworkingunderstandingofsentencestructure,grammar,anddetail

• AllmembersshouldbeavailableforoccasionalplanningmeetingsoftheConnectionstaffvia videoconferencingorface-to-facemeetings

Department of Multicultural Ministries

• Abilitytoraisetheirfinancialsupportthroughfaithpromises

• Crossculturalministryexperience

• ProficiencyinaforeignlanguageusuallySpanish

Conflict Resolution Committee

• Trainingandcertificationinconflictresolution

• Experienceinresolvingconflicts

Investigation & Court of Appeals Committees

• ExperienceofservingontheGBMR

• Understandingof,andproficiencyinthe Discipline

• ActiveorretiredcredentialholderwhoservedatleasteightyearsinanEvangelicalMethodist Churchorapprovedministry

Historical Committee

• Availabilitytocollectandorganizethehistoricaldataandpicturesofthedenomination

• ProvideayearlyreporttotheGeneralCouncilgivinganaccountofevents,etc.,oftheprevious yearfortheminutes

Program Committee

• Usually,theCabinetofSuperintendentsandthegeneralofficersareresponsiblefortheJourney andtheGeneralConferenceprograms

Minutes Committee

• Person(s)selectedbytheGeneralSecretarytoassisthimintherecordingandaccuracyofthe minutesoftheJourneyandtheGeneralConference

Resolutions Committee

• Person(s)withtheabilitytoattendandwritearesolutionofappreciationjustbeforethe adjournmentofeachJourneyandtheGeneralConference

• Thisreportcanbeintheformofmediareflectingtheactualconferencesessions

SECTION FOUR

DEPARTMENTS

Department of Chaplains

Purpose

Theministryofchaplainsextendsinpastoralcare,spiritualguidance,adviceonissuesof ethics,andmorals. Theirministryextendstoallindividualsregardlessofrace,creed,or religionsupportingtheirreligiousrightsandbeliefs. TheDepartmentofChaplaincyprovides supporttoourchaplainsintheirrespectiveministries,endorsementsrequiredbythemilitary, hospital,andprisoninstitutions. Thewebsitepagesaretobecreated,updatedand maintainedfortheseministrieswithalistofchaplainsprovidedbytheGeneralSecretary.

Prison Chaplain

ThePrisonChaplainisaClinicalChaplainthatrequiresanMDivandaminimumof4CPE units.

Responsibilities

1. Mobilizepositiveresourcesfoundwithintheperson’sreligiousfaithandpractice.

2. Contributetothemulti-disciplinarytreatmentteam’sinsightsconcerningtheclient fromatheologicalperspective.

3. Establishesandmaintainseffectiveliaisonwithcommunityclergy,organizations, ecumenicalandreligiousactivities.

4. Makeappropriatereferralstootherqualifiedprofessionals.

Military Chaplain

Militarypersonnelandtheirfamiliesfacemanyuniquechallenges. Fromservinginahigh stressandoftendangerousjobtofrequentfamilyseparations,militarypersonnelandtheir familiesoftenrelyonchaplainstohelpthemthroughmanyofthesechallenges. Insomeways theroleofamilitarychaplainislikethatofacivilianpastor. Theypreach,teachcounsel,and offerreligiousprogramstohelpmilitarypersonnelandtheirfamilies. However,theyalso serveaspartoftheCommandingOfficer’sstaffasanadvisoronmattersofreligion,culture, morals,ethics,andmorale.

Workplace Chaplain

Ineverybusinessandindustrialfacility,inalltypesofindustries,peoplehavetodealwith toughissues. Issuesofstress,maritalandfamilystrife,substanceabuse,loneliness,financial concerns,disappointment,anger,illnessandanxietyfollowpeopletoworkandarefrequently intensifiedbythechangingincircumstancesintheworkplace,suchaslayoffs,restructurings, staffchangesandalteredemployeerelationships. WorkplaceorIndustrialChaplainsoffer whathasbeencalleda“ministryofpresence,”quietlyworkingbehindthescenes,beingthere foremployeeswhentheyneedthem. Theylendalisteningear,asupportiveandcaring presence,individualattentionandeffectivereferralstothosewhoneedadditionalsupport.

Hospital Chaplain

Ahospitalchaplainprovidesspiritualsupportinthehospitalenvironmenttopatients, hospitalstaff,andfamilymembers. Ahospitalchaplainusuallyworksashiftinthehospital, oftenwalkingthehallstoconnectwithpeoplewhomightneedspiritualsupport.Heorshe providesassistanceformembersofthestaffwhomaybestrugglingwithreligiousissues,and religiouscounselingisalsoofferedtopatientsandfamilymembers.Thispersonmaylead religiousservicesinthehospital'schapelorinpatientrooms,andservicessuchas Communionmayalsobeoffered.

Law Enforcement Chaplain

TheChaplainwillprovideguidanceandcounselingtoanymemberofthelawenforcement agencyand/ormember’sfamilyuponrequestinmattersofspiritual,personal,family, employment,orotherconcerns.

TheChaplainbearstheheavyresponsibilitytofosterintegrityandhonorwithinthe department.

TheChaplainwillserveasthereligiousrepresentativeforthedepartmentincommunity affairsasrequested.

Uponrequest,providedirectassistancetomembersand/ortheirfamiliesinanycrisisand provideassistanceinactivitiesthatenhanceand/orcontributetotheirspirituallives, providingguidanceandcounselingasneeded.

Chaplainsmaymakeliteratureavailabletoinformandassistintheimprovementofpersonal andfamilyissues.

Uponrequest,chaplainsareencouragedtomakecontactwithdepartmentmembersconfined tohospitalsortheirhomesbecauseofillnessorinjury.

Uponrequest,theChaplainwillbeavailabletoconductmemorialservicesandfunerals. Uponrequest,theChaplainwillberesponsibleforassistinginthenotificationoffamiliesof personnelthathavebeeninjuredorkilledinthelineofduty. TheChaplainwillalsobe availabletoassistinmakingotherdeathnotificationsasdeemednecessary.

Truck Stop Chaplain

Department of Multicultural Ministries

TheDepartmentofMulticulturalMinistriesgrewoutofaprogramoftheGeneralConference BoardofWorldMissions. Thesuccessofthe“Mexico-USA”effortpromptedtheGeneral Conferencetolaunchthisdepartment.

Asthediversityofethnicitiesgrows,theDepartmenthelpslocalchurchesintheiroutreachto allpeoplesintheUSAConference. Itsgoalistoassistinevangelizingtheunsaved,discipling newbelieversandestablishinghealthymulticultural/multiethnicchurches. Personnel, recourses,training,promotionandperiodicevaluationsofcurrentministriesareapartofthe Department’sresponsibilities.

TheDirectoroftheDepartmentofMulticulturalMinistriesiselectedbytheGeneral Conference,accountabletotheInternationalGeneralSuperintendent,andresponsiblefor creatingafinancialbaseforthesupportoftheDepartment’sbudget. Thedirectorandhis/her staffshalldevelopprogramsthateffectivelypromotethedenomination’smissionalgoals.

Department of Prayer

“Do not be anxious about anything, but in everything, by prayer and petition, with thanksgiving…” (Phil.4:6NIV)

Purpose Statement

TheobjectiveofthePrayerDepartmentistounifytheprayereffortsofourchurchesinorder toprayforthepastors,churches,missionariesandprogramsofourdenominationina systematicway.Specialrequestsarecommunicatedtousandthoserequestsarebrought beforetheLordatourstaffprayersessions. Promotesprayerministryacrossthe denominationthroughspecialpromotionsandaregulararticlein The Connection magazine.

Purpose Statement

Department of Publications

TocommunicateinformationforandtotheEvangelicalMethodistChurchinavarietyof styles. Tochallenge,inprint,peopletogrowinknowledge,incommitmentto Discipline,and toworldevangelismathomeandabroad.

Duties:

1. Responsibleforthepublicationof The Connection magazine,thedenomination’sofficial magazine,whichispublishedregularlythroughtheyear. The Connection isasourceof sharingandcommunicationamongtheEvangelicalMethodistchurches. The InternationalGeneralSuperintendentorhisdesignateistheEditor.

2. TheDepartmentofPublicationshasoversightofthedenominationsbookstoreand maintainsaninventoryofbooksintheCourseofStudyattheHeadquarters. The departmentwillnolongerdobilling.Alltransactionswillbemadeelectronicallyorwith creditcards.

3. TheDepartmentofPublicationssupervisesandmaintainsthedenomination’swebpage onlinestore.

Department of Stewardship and Development

TheDepartmentofStewardshipandDevelopmentexiststoplanandpromoteaprogramof stewardshipeducationthroughoutthedenomination,andassistmembersandconstituentsof theEvangelicalMethodistChurchinestateplanning.TheDepartmentofStewardshipand Developmentshall:

(1)Emphasizetheneedforadultsofallagestohaveawillandsecureestateplanning.

(2)ProvideopportunitiestolocalEvangelicalMethodistChurchesassistingmembersand constituentstohavewillspreparedthroughtheDepartmentofStewardshipand Development.

(3)Stresstheopportunitiesofchurchmemberstomakeprovisionforgivingthrough EvangelicalMethodistchurches,ministriesandauxiliariesbymeansofwills,annuities, trusts,lifeinsurance,memorialsandothersuchmeansasmaybeavailable.

(4)Toalsoassistintheestablishingofalivingwill.

SECTION FIVE

AUXILIARIES

Evangelical Methodist Men

EvangelicalMethodistMenforMissions(EMMFM)isadynamicmovementofGod'sSpiritin theheartsoflaymeninourlocalchurches.ThroughEMMFM,menandtheirfamiliesfromall walksoflife,findachannelforharnessingandreleasingpersonalskillsandabilitiesin practical,directmissionaryinvolvement.Byparticipationinoverseaswitnessandwork teams,theycatchnewzealforsoulwinningathome,aswellasabroad.Thisproducesmen mobilizedforministryintheirlocalchurches.

EvangelicalMethodistMenforMissionshasapartnershipagreementwiththeMenfor MissionwhichisaministryofOneMissionSociety,aCharterMemberoftheEvangelical CouncilforFinancialAccountability ECFA.OneMissionSociety(OMS)andtheEvangelical MethodistChurchhavebeeninanAffiliationagreementsince1952.

WithoutduesororganizationaltrappingsEMMFMasksmentorespondorcontributeonlyas directedbytheHolySpirit.Asaresult,asexemplifiedinMenforMissions,scoresof missionaryhomes,schools,churches,clinics,etc.,standasmonumentstotheobedienceof individuallaymen.Millionsofdollarsaregiventosupportmissionaries,nationalworkers,and evangelisticoutreach.

ParticipationinEvangelicalMethodistMenforMissionsisopentoanymanwillingtoaffirm:

• Iwill do whateverGodasksmetodo

• Iwill go whereverGodasksmetogo

• Iwill give whateverGodasksmetogive

EMMFMMembershelpmissionariesbyutilizingtheirpersonalskillsandabilitiesinavariety ofpractical,directways,includingworkteams,medicalanddisasterreliefteams,evangelism teams,intercessoryprayerteamsandteamsofprofessionalswhoarepreparedtoteach. Often,teamsareinvolvedinacombinationoftheseministries.

Ourmandateiscompassion,ourpriorityisestablishingtheLordshipofJesusChristineach man'slife,andourgoalistoprovideopportunitiesforpersonalobediencetotheGreat Commission.

TheofficersoftheEMMFMCouncilarecomprisedofEMClaymen,arepresentativeofthe MFMofOMS,andmissionmindedEMCpastorselectedbytheGeneralConference.

Evangelical Methodist Women

TheEvangelicalMethodistWomenisthedulyauthorizedwomen’sorganizationofthe EvangelicalMethodistChurch.

Purpose: IstounitethewomenoftheEvangelicalMethodistChurchbypromotingafourfoldplan.

1. Continuing,organizedefforttodevelopChristianlivingandservice.

2. Promoteawiderknowledgeandinterestinboththehomeandforeignmission fields.

3. AssistinandencouragetheChristianeducationofouryouth.

4. TakepartinsuchChristianactivitiesaswillstrengthenthelocalchurchand community.

Operational Strategy:TheholdingofannualWomen’sConferences/RetreatsintheEast andtheWest. Theregionsandlocalchurchgroupswillcreatetheirfocusofministryfor theirchurchesandcommunities.TheUSACouncilwillassistandcounseltheleadershipof eachregioninwomen’sministrythroughtheirministrycommittees.

TheUSAConferenceoftheEvangelicalMethodistWomenshallconsistofallwomenwho areregularattendeesofanEMC-EvangelicalMethodistChurch.

SECTION SIX

OFFICE

MANUAL

Introduction

Thismanualofofficeprocedureispreparedforthebenefitofeachpersoncontemplating employmentattheheadquartersoftheEvangelicalMethodistChurch.

Itspurposeistoestablishastandardbywhichtheworkoftheheadquarterscanbe synchronizedandfunctionwithproperorganization,cooperation(betweenemployeesaswell asdepartments),andsystem. Theseguidelinesarebaseduponthatwhichisdeemed necessary,fairandequitable.

Allemployeesoftheheadquartersareexpectedtoabidebytherulesofprocedure. Toexpect exceptionsisonlytosowtheseedsofdissatisfactiononthepartofothersandtocreate disharmonyanddisunity. Intheeventofanyone’sunwillingnesstoabidebythestandardof procedure,ashereinsetforth,itwillbetheobligationoftheofficemanagertoterminatetheir employment.

Thismanualshallapplytoallofficesanddepartments,includingthebookstore,locatedinthe InternationalHeadquartersoftheEvangelicalMethodistChurch. Thismanualisrevisedfromtimetotimebytheofficemanagerandissubjecttoapprovalby theGeneralSuperintendentandtheGeneralCouncil.

Headquarters

“TheGeneralConferenceshallhavethepowertolocatetheInternationalHeadquarters…” (Discipline¶632)

TheGeneralConferencetooksuchactionatUniversityPark,Iowa,in1962,astolocatethe headquartersoftheEvangelicalMethodistChurchinWichita,Kansas. Theheadquartersof thechurchremainedinWichitauntil1994whentheGeneralConferencetookactionto relocatetoIndianapolis,Indiana.

Office Manager

TheGeneralSecretaryistheofficemanageratHeadquarterswithauthoritytohireandor dismissofficeemployeesexceptfortheInternationalGeneralSuperintendent’ssecretary. (Discipline ¶1105)

Office Hours

8:00a.m.to4:00p.m.

Thedoorsoftheheadquartersofficewillopenat8:00a.m.eachmorning,Mondaythrough Friday,andwillcontinueopenuntil4:00p.m. Allemployeesareexpectedtobeatworkat 8:00a.m.andcontinueworkinguntil4:00p.m.unlesspermissionisgivenbytheappropriate departmentheads.Thescheduleforpart-timeemployeeswillbearrangedbytheoffice manager.

Lunch Break

Usuallylunchbreakisfrom12:00noonto12:30p.m. Employeesarepaidduringtheir30 minutelunchbreak.Ifanemployeewantstotakelongerthan30minutes,theymustclockout.

Traveling Expenses

Whenpersonalcarsareusedforofficebusiness,anappropriatemileageratefor reimbursementwillbefiguredbytheofficemanager. Theownerisresponsiblefor maintenance,gas,oil,insurance,etc. TheEvangelicalMethodistChurchwillnotbe responsibleforclaimsofpublicliabilityunlesssucharespecificallycoveredinpolicy(s).

Allemployeeswillberequiredtosignareleaseofresponsibilitystatement.

Salary

Salarieswillbedesignatedpriortoemploymentbytheofficemanager. Allsalariesare reviewedannuallybytheGeneralBoardofFinanceandrecommendationsfromtheoffice manager.

Part-timeemployees(lessthan34hoursperweek)shallbepaidnolessthanthestandard legalminimumwage

Overtimepayshallbefiguredat1½timestheregularrateofpayforeverythingover40hours inthesameweek.

Time Sheets

Abi-monthlytimesheetthatrecordstheappropriatehours,comptime,personaldaysand sickdaysforeachnon-salariedemployeeistobesubmittedtotheofficemanageronthe15th andlastdayofeachmonth.

Minimalpersonalandprivatebusinessconductedbyallemployeesduringworkhoursis permittedifthetimeismadeupthatweek. Afterhoursisrecommended. Theuseofoffice equipmentisavailableforlimitedpersonalbusiness.

Vacation

Afteronefullyearofemployment,full-timeemployeesshallbeentitledtoavacationoftwo weeks(10workingdays)withpay. Aftertwoyearsofemploymentanemployeeshallbe entitledtothreeweeks(15workingdays).

Allvacationsshallbeworkedoutwiththeofficemanager. Priorityshallbegiventothosewith thelongesttenureofemployment.Uponterminationofemploymentproratapayshallbe madeforcertifiedvacationdays.

Vacationallowance,sickleave,andpersonaldaysforpart-timeemployeesisdeterminedby theofficemanager.

Sick Leave

After6months,full-timeemployees(34hoursperweekormore)shallbeentitledtosick leaveequivalenttooneday(8hours)foreachmonthworkeduptoamaximumcreditof25 days(200hours). Sickleaveisapotentialbutnotanabsolutebenefit. Itishopedthatitwill notbeneededbutitisavailableonlyasneeded. Thereisnotpaymentforunusedsickleaveat thetimeofterminationofemployment.

Personal Days

Aftersixmonths,allfull-timeemployeesareentitledtopaidpersonaldays. Fulltimeand salariedshallreceive3personaldaysperyear.

Holidays

Theheadquartersofficeshallbeclosedonthefollowingholidays:

❖ NewYear’sDay

❖ GoodFriday

❖ MemorialDay

❖ IndependenceDay

❖ LaborDay

❖ ThanksgivingDayandtheFridayfollowing

❖ ChristmasEve

❖ ChristmasDay

TheofficewillalsobeclosedbetweenChristmasDayandNewYear’sDay.Part-time andfull-timeemployeeswillbepaidforthatweek.

IfoneoftheseholidaysfallsonSaturday,theofficewillbeclosedontheprecedingFriday. If theholidayfallsonSunday,theofficeshallbeclosedontheMondayfollowing.

Allfull-timeandsalariedemployeesshallbeentitledtoaholiday,withpay,onhis/her birthday.Thisisinadditiontopersonaldays.

Employees Amenability

AllemployeesworkingattheInternationalHeadquartersareworkingfortheEvangelical MethodistChurch,whichistheirprimaryemployer. Secondarilyeachemployeeis responsibletohis/herdepartmentheadand/ortheofficemanager.

ItshallnotbenecessarythatheadquarterspersonnelbemembersoftheEvangelical MethodistChurch,northattheyattendalocalEvangelicalMethodistChurch. Itisexpected, though,thateachemployeeevidencededicationtotheworkofthechurchandbeloyaltothe aims,purposes,andprogramsoftheEvangelicalMethodistChurch.

Attire

Itisexpectedthatallemployeesshallbecleanandneatandwilldressbothrespectfullyand modestly.

Habits

Itisexpectedthatallemployeeswillshowdiscretionintheirpersonalattitudesandhabitsas regardsemploymentwiththeEvangelicalMethodistChurch. Theuseoftobaccooralcoholic beverageswillnotbepermitted.

Confidences

Business,financialaffairs,andofficeprocedureshouldnotbediscussedwithpersonsoutsideof, andunrelatedto,theheadquartersoftheEvangelicalMethodistChurch,especiallyifanynegative reflectionsmightresultinsuchdiscussions. Manyoftheproblemswithinthedenominationcome totheattentionoftheheadquarters,andasaresultwearemadeawareofboththereversesand theaccomplishmentsofpastors,churches,etc. Muchofthisinformationispersonaland confidentialandmustbekeptso.

Inquestionsabout EMC Book of Discipline procedures,meaning,etc.,allsuchinquiriesmustbe referredtotheGeneralSuperintendentorGeneralSecretary. Questionsaboutpublications, orders,i.e.,non-EMC Book of Discipline issues,arehandledbysecretaries. Requestsfor reportsandvouchersfromGeneralCouncilmemberscanalsobehandledbythesecretaries.