Petition 81573

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Directives (81573-FA-NonDis-$)

Report No. 11

1.  Fixed Charges. Fixed charges in any of the general funds shall be paid as expended within the limits of the approved budgets. However, the General Council on Finance and Administration (GCFA) is authorized to adjust the fixed charges amounts in general fund budgets as emergencies, changing conditions, or as the responsibilities placed upon the general agencies by the General Conference may require.

2.  On-Ratio Allocations. All allocations from the general funds of The United Methodist Church shall be paid on ratio of net receipts after payment of fixed charges.

3.  Validity of Claims. The GCFA shall be authorized to determine the validity of claims in all matters involving the World Service Fund, the Episcopal Fund, the General Administration Fund, the Black College Fund, the Ministerial Education Fund, the Interdenominational Cooperation Fund, the Africa University Fund, World Service Special gifts, the Advance, the Special Sundays offerings, or any other general fund, where these are not specifically set forth or determined by the General Conference.

4.  Conformity With Other General Conference Actions. GCFA is granted authority to make such editorial changes in its reports as may be needed to bring them into conformity with the approved general fund budget amounts and totals, and any other applicable actions of the  2008 General Conference.

5.  General Council on Finance and Administration Expenses. General fund allocations to GCFA fall into two categories, as provided in ¶ 805.6 of The Book of Discipline 2004: 1) an on-ratio line item in the General Administration Fund budget; and 2) fixed charges in certain other funds for which the Council incurs significant administrative costs, proportionate to their estimated receipts. The budget of the council is presented in its Report No. 14.

6.  Travel Expense and Meeting Policy for Special Committees Funded by the General Funds. Any special committee, study group, special commission, or any other special group created by the General Conference and funded by the General Funds of The United Methodist Church shall be subject to the travel and expense reporting and reimbursement requirements established by GCFA. If the special committee, study group, special commission or other special group is not directly responsible to a general agency, it shall make all meeting and travel arrangements through GCFA.

7.  Application of Apportionment Formula. As the formula is applied during the quadrennium to actual events, the outcome of the calculation may result in a different amount being apportioned than those amounts contained in the published reports. When each annual apportionment is determined, GCFA will calculate the total amount to be apportioned for each of the general funds and to each fund line item, including fixed charges, in direct proportion to the amounts approved in Reports numbered 1 through 7.

8. General Agency Audits. All treasuries receiving general Church funds are required to have an annual audit as provided in ¶ 806.5 of The Book of Discipline 2004.

9. Internal Audit Functions. GCFA is responsible to establish and conduct the internal auditing functions for all agencies receiving general Church funds (¶ 806.5 of The Book of Discipline 2004). All agencies receiving general Church funds are required to comply with fiscal accountability policies and practices. The Committee on Audit and Review shall monitor compliance with such policies and practices.  If the committee determines there are any violations it shall proceed in a manner as outlined in ¶ 806.12 of The Book of Discipline 2004 and within established policies of the Committee at that time.

10. General Agency Budget Review. As outlined in ¶¶ 806.3, 806.4, 806.7, 806.11, and 806.12 of The Book of Discipline 2004, GCFA shall review the proposed spending plan and the financial operations for each agency receiving general Church funds. If GCFA determines that an agency is not in compliance with the provisions of these paragraphs, it shall proceed within its established policies at that time.  
11. Approving Emerging Ministry Opportunities Between Sessions of General Conference. In the interim between quadrennial sessions of the General Conference, potential programs and initiatives of church-wide consequence may arise in response to unforeseen opportunities for mission and ministry. When these opportunities involve the expenditure of general Church funds, the proposed programs or initiatives shall require the joint approval of GCFA, the Council of Bishops, and the Connectional Table.  When timeliness of action warrants, the executive committees of these bodies may act in such matters for the body itself, but only by a three-fourths vote. Such programs and initiatives shall be governed by established policies of the General Conference. A report on any such programs and initiatives shall be made by the Connectional Table to the General Conference at its next quadrennial meeting.
12. Credit Card Fees. Agencies are responsible for all fees and expenses associated with credit card, debit card, EFT, and ACH processing, including but not limited to: setup fees, monthly maintenance fees, bank fees, discount rate fees, and per transaction fees.

13. General Commission on Communication. The General Commission on Communication (United Methodist Communications) serves as the central promotional agency for promoting general Church funds throughout the Church, as provided in ¶ 1806.12 of The Book of Discipline 2004.
    Promotion is aimed at individual United Methodists and seeks to foster an understanding of how giving of one's financial resources is an integral part of the Christian life. The focus is on shared ministries that change lives. Print, video, and computer-delivered resources help United Methodists see their mission outreach, understand how their diverse ministries make a difference in human lives, and learn how the local church benefits from their shared outreach.
    Interpretation is aimed at the leadership of annual conferences, districts and local congregations. It provides specific information about Church funds, and encourages leaders to be faithful in remitting funds to conference and general Church benevolent causes. United Methodist Communications provides resources in a variety of media to be used by conference leadership, pastors and local church leadership, and staff of other general Church agencies.
    The cost of promotional resources related to a particular fund or group of funds is covered by a fixed-charge line item in the budget of the respective funds. United Methodist Communications, following consultation with the general agency responsible for administering the fund, recommends the annual budget of fixed-charge amounts subject to approval by GCFA. For 2009-12, the fixed charges line items total $5,844,440, a 0% increase over the 2005-08 quadrennium. In 2009-12, as in past quadrennia, one resource item may interpret or promote several funds. In such cases, United Methodist Communications is authorized to allocate costs for such items among the funds included in particular resources.
    No promotional funds are taken from General Advance Special gifts or World Service Special gifts. The cost of promoting these funds is borne entirely by the administering agencies or from other funds approved by the General Conference.
    The schedule of amounts authorized for program and benevolence interpretation resources for the 2009-12 quadrennium is shown in the table which follows.

Connectional Giving Interpretation Budget
Quadrennium 2009-2012
2005 - 2008 2009-2012 2009 2010 2011 2012 
Fixed charges for promotional and interpretation resources:  
 World Service $1,544,000 $1,544,000 $525,000 $350,000 $344,000 $325,000 
Ministerial Education 271,000 271,000 106,000 85,000 40,000 40,000 
Black College 313,000 313,000 90,000 80,000 72,000 71,000 
Africa University 415,000 415,000 120,000 108,000 94,000 93,000 
Episcopal 44,000 44,000 14,000 10,000 10,000 10,000 
General Administration 60,000 60,000 15,000 15,000 15,000 15,000 
Interdenominational Cooperation 193,000 193,000 56,000 48,000 45,000 44,000 
Human Relations Day 500,000 500,000 150,000 125,000 125,000 100,000 
One Great Hour of Sharing 800,000 800,000 360,000 200,000 120,000 120,000 
Native American Ministries Sunday 400,000 400,000 120,000 100,000 90,000 90,000 
Peace With Justice Sunday 384,000 384,000 125,000 100,000 80,000 79,000 
World Communion Sunday 500,000 500,000 150,000 125,000 115,000 110,000 
United Methodist Student Day 420,000 420,000 120,000 100,000 100,000 100,000 
Total Fixed Charges$5,844,000 $5,844,000 $1,951,000 $1,446,000 $1,250,000 $1,197,000 
Allocation for interpretation resources for Special Gifts: 
 The Advance (paid by          
 participating agencies) $1,590,000 $1,590,000 $450,000 $375,000 $375,000 $390,000 
\cellx10260Total  $7,434,000 $7,434,000 $2,401,000 $1,821,000 $1,625,000 $1,587,000