Vestry: Roles, Responsibilities, and Legal Duties
Learn about the composition and responsibilities of a vestry, the legal and financial duties involved, and how a vestry supports the mission of a congregation. Find out about fiduciary responsibilities, internal controls, and more.
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Presentation Transcript
Vestry Workshop 2021
We will discuss: What is a vestry? Typical composition of a vestry General Responsibilities of the vestry Legal Responsibilities Clergy Responsibilities Individual Responsibilities
What is a vestry? Duly elected members of a congregation Legal representative of the parish in all matters concerning its corporate property and the relations of the Parish to its Clergy except as may be provided by the law of the state or diocese. (Constitution and Canons of the Episcopal Church I.14.2).
Typical composition of vestry Rector is presiding officer Senior Warden Junior Warden Treasurer may be member Clerk - may be member May have Executive Committee
General Vestry Responsibilities Define and articulate mission Support mission by word and deed Select and work with rector Planning, decision making, implementation Develop leaders Ensure adequate resources and financial stewardship is in place Manage resources effectively and efficiently
Legal Responsibilities Canons Fiduciary Debt
Financial & Fiduciary Responsibilities Assessments Funds Parochial Reports Payroll Pension and other reports Housing resolution Financial statements Audits Insurance & payroll and special taxes
Fiduciary Responsibility Internal Controls Protect assets - insurance, Safeguarding God s children and People training, inventory Proper accounting procedure - manual Make sure audit is done on time Share responsibilities Two signers on checks Vestry review bank statements Financial statements
Accounts Bank or Credit Union Safe Deposit box Inventory Who can sign Keys? Investments Reconcile monthly How many accounts? Name on account? Who can sign? How many signers? Process for drawing investment funds
Funds Restricted Donor Designated Vestry Unrestricted/Undesignated
Assessment CANON 15. FUNDING OF DIOCESAN BUDGET. Section 1. ROLE OF DIOCESAN COUNCIL. The Diocesan Council shall determine a uniform method of assessment and shall annually estimate a sum necessary and proper for the following purposes: For the spread of the Gospel of Jesus Christ and the mission of the church; For the purposes of the General Convention; For the support of the Episcopate; For the support of the diocesan and national church program; For such other purposes as convention shall approve and direct. The Diocesan Council shall propose the method of assessment and the estimated sum to the Diocesan Convention.
What you get for your assessment payment Bishop Provides leadership, education, is the Chief Pastor for all Clergy of the Diocese and shepherds the people of the diocese Staff Members Provide assistance with transition, ordination, safeguarding training and background checks, audits, insurance, education, manage deadlines, provide consultation, staff also provide a website and communication, take care of camp and youth and answer the various needs of the people of God. They provide support which frees clergy to spend more time in their ministry. Diocesan programs General Church Payment helps with the needs throughout the country and the world for education and support of various church programs and resources Assures mission and ministry take place beyond the local level.
Assessments How to calculate Average of three years operating income from parochial reports Fixed amount each month Due 10thof each month. Quarterly & annual assessment reports Priest and treasurer (and senior warden if no priest)
Grants/Loans Faber fund Vickers Fund Venture in Mission Mission Opportunity Venture in Mission Continuing Education All info under funding opportunities on diocesan website.
Audits Appoint committee other than vestry members Newly elected vestry, Diocesan audit team, others.. Request diocesan audit team by April 15 Follow up to make sure it is submitted by September 1. Read the audit findings letter Respond with the Vestry Response letter Note in Vestry Minutes receipt of audit and plan for addressing issues. Online filing option Treasurer MAY not perform or submit the audit!
Parochial Reports Due by March 1 Information in section 8 of Manual File on line do not need to send in copy Vestry approves report Information used in our budget process Trends in the wider church Statistical information on website
Clergy Different payroll reporting rules for clergy and lay staff Remember clergy are people too Salary increase each year if possible Increased time off if possible Say thank you Remember special occasions (ordination anniversary. Etc.)
Contractors and those who are paid for services First step - W9 Form Proof of worker s comp coverage Or worker s comp exemption certificate Independent contractor certificate If paid $600 or more need 1099 NEC Form if not a C or S Corp
Workers Compensation Annual Report - From Church Insurance Anyone you pay for services who does not provide proof of coverage or exemption If issued a 1099 and they do not have proof of exemption or coverage need to add to church s policy If none still need report
Episcopal Payroll Services Through Church Pension Group (ADP) Patricia Tucker, 800-223-6602, 6286 or ptucker@cpg.org The church is responsible for providing accurate data Double check! They don t process worker s comp report Paychex another option
Financial Statements Calendar year Income statement (Profit and Loss) with budget to date figures Balance sheet Cash available report * (unrestricted) Ask questions!
Journal Entries Update balance sheet Investments Correct errors Vestry review
Property Taxes & Insurance Special taxes Sidewalk, lighting Parking lot tax Adequate building & liability insurance Alicia Morris, Church Insurance Inventory March 16 session with Church Insurance Groups using building Section on our website
Discretionary Funds Used for pious and charitable purposes Must be in the name of the church May be separate account Need more than one signer (on account) Bank statements need to be reconciled Funds need to be audited Potential tax issues (if funds given to employees) Items purchased belong to the church and not the priest (even books and vestments)
Budget & Other Reports Budget Process may vary by church Vestry approval Vestry should review monthly during review of financial statements. Annual Incorporation Report Needs to be filed and a $20 fee paid Due April 15
To do each year Housing Resolution - prior to paying clergy Parochial report March 1 (vestry approval) Annual State of Montana report April 15 Worker s comp report July 1 Audit September 1 Note receipt of audit in minutes Meet with investment advisor at least annually Pension payments on time
Individual Vestry Responsibilities Attend meetings Prepare read, ask questions Participate Maintain confidentiality Avoid taking sides Identify and train new leaders Serve congregation as a whole Contribute financially to church
Clergy responsibilities Worship and spiritual life Education Preparation baptism, confirmation Recording information in parish register Use and control of buildings Reading information from bishop Prepare for bishop s visit
Warden and Clerk info Website Template for minutes
Misc. Info Debt approval - Bishop, Council and Standing Committee Leasing church property to for-profit entity that portion is taxable Data storage off site & back up computer! Disaster plan Working in cluster or regional ministry Documents Where What to keep and how long to keep it
Resources Available Diocesan Website: http:diomontana.com Manual of Business Methods in Church Affairs Treasurer s Guidebook Wardens, Clerk & Treasurer s Handbook Accounting Policy Manual adopted by vestry www.irs.gov
More Resources Episcopal Church Foundation Vital Practices Vestry Papers Congregational Development committee T3 Stewardship program Episcopal Relief & Development page on website Asset map
Resources from Church Pension Group Church Pension Group- 800-223-6602 www.cpg.org Pension 403(b) Fidelity Investments Health Insurance (Medical Trust) Episcopal Payroll Services (ADP) Property Insurance (Church Insurance of VT) bonding, building, liability etc. Clergy Tax Guide
Consultants Nancy N. Fritschner, CPA (877) 305-1414 Mary Ann Hanson, CPA (877) 305-1415 Dolly Rios, CPA (833) 363-5751
Important to Remember No one will die if you make a mistake! You are not alone! Barb s number = 800-247-1391, ext. 101 Barb s email address: finance@diomontana.com
Vestry orientation PowerPoint (Holy Spirit, Missoula) Watch diocesan vestry videos Vestry notebooks
Vestry Notebooks Binder for vestry some ideas for contents: Vestry roster and contact info Committee roster and contact Calendar of meetings and events Parish directory Annual report By-laws (review annually) Clergy letter of call & housing resolution Policies and Church s adopted accounting manual Instructions for cash counting or other tasks December, January vestry minutes and financial statements Description of officers and duties Sample agenda Copy of parochial report Copy of diocesan canons
Barbs hope for vestries Read information Look at the financial statements Read audit findings Review bank statements Ask questions Thank your treasurer Asset Map Episcopal Relief & Development Sunday First Sunday in Lent or any Sunday that works for your church
