Welcome to the Summer edition of Dollars and Sense

As we head towards the end of 2021 and have a chance to look back – it has been a big year. There have been many challenges and changes and I think we have all learned that we are far more adaptable and flexible than perhaps we ever thought we were.

As we now start to think about 2022, there are still some challenges ahead also many possibilities and opportunities.

The Resources team have compiled some articles we hope you will find useful and informative. As always, please reach out to us via phone or email if you have any questions.

Have a wonderful end of 2021 and a blessed Christmas.

Sue Raw

General Manager Resources

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The Stipends Committee met on 27th July 2021 to deliberate on the ministerial stipend and allowances for 2022. As a result the committee provided a recommendation to increase the minimum ministerial stipend by 1.5% from 1st January 2022.

This is based on the predicted CPI for the end of 2021 and the Wage Price Index. These two indices look at the cost of an average basket of goods and the movement of community wages. Due to current economic uncertainty, the Stipends Committee recommended that Synod Standing Committee (SSC) approve this forecast increase of 1.5% subject to final confirmation at its December meeting. 

This means that congregational treasurers can prepare budgets for 2022 based on this proposed increase, but it allows time for further economic data to guide the Stipends Committee on its final approved increase.

The Stipends Committee also recommended an increase of 1.5% to the accommodation allowance, professional development allowance, candidate book allowance, long service leave and Ministers Benefit Fund contributions. 

It has been 3 years since an increase in preaching fees has been applied. Stipends Committee recommended an increase of $5 per service. The newly recommended rates are $90 for one service and $150 for two services. 

These increases will be confirmed at the Synod Standing Committee meeting scheduled for December 3rd, 2021.

For more information about ministerial stipends please visit: sa.uca.org.au/stipends.

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Preparing an annual budget is an important element of financial governance that congregations of all shapes and sizes should undertake. This doesn’t mean that congregations will prepare and design their budgets in exactly the same way – every church is different. For example, a large church with multiple staff will undertake a budget process that is significantly more complex than a small congregation without a paid minister. 

Regardless of congregation size, preparation of the church budget should be a process that includes both Church Council and members of the congregation. The treasurer should be a part of this process, but not the sole facilitator.

Setting a budget allows your congregation to clarify its purpose and goals in relation to mission priorities for the coming 12 months. It also provides an opportunity to improve communication between Church Council and members of the congregation.

The impact of establishing clear financial goals should not be underestimated.     

Things to consider when preparing your budget:

Don’t spend more than you collect
This is an essential element of stewardship. Irrespective of congregation size, it is unsustainable practice to continually spend more than you collect. We have seen many examples of the results of such spending and often this results in congregation closure.

Use realistic estimates
Be realistic or slightly conservative with estimates for both income and expenditure. This means budgeting for slightly lower income and slightly higher expenditure than expected. While we do our best to estimate annual increases in costs, at some point you’re going to be surprised by an unexpected expense or a reduction in income. 

Anticipate seasonal fluctuations
Many congregations will be aware that the months of January and February are historically quieter months following the Christmas period and summer holidays. Any known seasonal fluctuation should be factored into your planning process.

Provide for property maintenance
The recent Property Review reports provided to all congregations in 2020 indicated that, as a Synod, property maintenance has historically been underfunded. Property maintenance is distinct to other operating costs such as electricity and water.

As a ‘rule of thumb’ congregations should aim to allocate an annual maintenance budget equivalent to 1% of the property value (Note: this becomes problematic when heritage buildings are involved). Current property values can be found on the annual insurance invoice issued in November/December.   

Actively encourage electronic giving
If COVID-19 has taught us nothing else it has shown that congregations actively engaging in electronic giving programs have fared better financially than those who did not.

UC Invest provides an electronic giving option for congregations called eGive – for information please visit: ucinvest.com.au      

Be aware of increases to Stipends and award rates for paid staff   
As the cost of living increases, so too do wage and stipend costs. This increase is normally associated with an increase in the Consumer Price Index (CPI). Information about current and prospective stipend rates can always be found on the Synod website at sa.uca.org.au/stipends.

If your congregation doesn’t know where to start with your 2022 budget, or needs some assistance, the Congregational Bookkeeping Unit (CBU) will be able to help. To find out more email cbu@sa.uca.org.au. 

Let’s embrace the budget preparation, not as a chore, but as an opportunity for congregational growth and prosperity.

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Is your congregation impacted by the Australian Charities and Not-for-profits Commission (ACNC) External Conduct Standards?

The ACNC has established a framework of standards that apply to all basic religious charities called External Conduct Standards (ECS). These standards have been in effect since July 2019 and have significant implications and many congregations may not be aware of the standards or their requirements.

The framework consists of four elements:

• ECS 1: Activities and control of resources
• ECS 2: Annual review of overseas activities and record-keeping
• ECS 3: Anti-fraud and anti-corruption
• ECS 4: Protection of vulnerable individuals.

The standards require all charities to take reasonable steps to ensure 'appropriate standards of behaviour, governance and oversight when undertaking activities or providing funding or other resources (including people) overseas.'

It is very easy for a congregation to have obligations under these ECS Standards. In many instances the simple act of a congregation sending money overseas for international mission will trigger a compliance obligation.

However compliance with the ECS is not a ‘one size fits all’ approach. The standards are expressed as high-level principles rather than precise rules. Your Church Council must determine whether current policies, practices and activities are ‘reasonable’ in your context.

If your congregation is engaged in any activities outside of Australia, you must consider how these standards impact on those activities. These considerations should be documented and approved by the Church Council. It is important to be aware that there are significant risks associated with non-compliance with the standards. 

A brief overview of the ECS:

External Conduct Standard 1: Activities & Control of Resources:

• Take reasonable steps to ensure activities are consistent with the Charity’s purpose
• Maintain appropriate internal controls to ensure resources are used in a manner consistent with its purpose
• Ensure that resources provided to third parties are supplied in accordance with the Charity’s purpose and with reasonable controls and risk management processes in place.

External Conduct Standard 2: Annual Review of overseas activities dna record-keeping:

• Requires a charity to obtain and keep records for its activities outside of Australia
• The records must include information necessary to be able to prepare a summary of activities and related expenditure outside Australia on a country-by-country basis.

External Conduct Standard 3: Anit-fraud and Anti-corrupation:

• Take reasonable steps to minimise any risk of corruption, fraud, bribery or other financial impropriety by its Responsible Persons or third parties outside Australia
• Identify and document any perceived or actual material conflicts of interest for volunteers, Responsible Persons or third parties.

External Conduct Standard 4: Protection of Vulnerable Individuals:

• Requires reasonable steps to ensure the safety of vulnerable individuals overseas
• Vulnerable individuals are defined within the ECS as people under the age of 18, those who are unable to care for themselves or those who are unable to protect themselves against harm or exploitation

For more information about the ACNC External Conduct Standards please visit this link. 

If you require further assistance regarding compliance with the ECS, please email the Financial Services Team at finance@sa.uca.org.au

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Our insurance program renewal date is 31st October each year. Our Insurance Services team anticipates sending out insurance tax invoices in early December.

As we have done in previous years, we will be sending out renewal tax invoices via email, so please ensure your congregation’s contact details are up-to-date and if for some reason you don’t receive your renewal notice, please contact us via the insurance email address below.

We understand as the community continues to open up from COVID-19 restrictions, many congregations will be organising events such as Christmas carols, fetes etc. If you require a new certificate of currency for Public Liability insurance, please email or call Insurance Services and we can forward an updated copy to you.

COVID-19 has brought many changes and disruption to congregations and many are operating differently than has happened in the past However, building maintenance is still an important matter. As we move into the summer months we may experience some summer storms, so now is the time to check around various buildings and properties to make sure any maintenance issues are addressed. Please ensure gutters are cleared and overgrown trees and shrubs are trimmed.

If you have any other questions about insurance, please contact Tony Phillips or Susanne Alley in Insurance Services on (08) 8236 4222 or email insurance@sa.uca.org.au.

 

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From time-to-time the Synod Pirie Street Office, Brooklyn Park Campus and Uniting Venues SA seek to recruit lay positions on a full time, part time and casual basis. 

We are very excited about the prospect of being able to draw on the gifts and skills of the wider church community as we seek to fill positions across the Uniting Church. 

Our first Positions Vacant campaign e-newsletter informing of current employment opportunities was circulated by email to congregations Chairpersons of Councils, Secretaries and Ministers and members of the Congregational Website program, during September this year.

We would be very grateful if you could assist us by communicating current employment opportunities through your own newsletters, websites and social media.

For further information, please email: humanresources@sa.uca.org.au

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Keeping people safe is at the heart of what we do as a church, and managing the maintenance of our properties contributes to that care. We are also obliged to comply with Government requirements around Work Health and Safety and building compliance.

Allowing maintenance standards to slip or failing to upgrade existing systems to meet contemporary standards could have dire consequences for the users of our buildings or for tradespeople working on church property.

In September 2020, three qualified tradespeople were electrocuted in South Australia while undertaking reasonably routine maintenance jobs involving existing electrical installations. Tragically, all died.

While none of these events occurred on church properties, the circumstances which led to the electrocutions involved hot water services, air-conditioning installations and work in a confined space. All are common situations.

Electrical compliance can be difficult to follow, however items identified in the recent Uniting Church Property Review Project and recent occurrences at church properties suggest that more attention to electrical installations is required. Examples include:

• Builders working on a church project at an existing property shut the site down to investigate and rectify existing non-compliant and unsafe wiring
   
• Commercially leased church property had an unplanned shut down to rectify an unsafe electrical board installation resulting in a significant repair bill and inconvenience.

Is the electrical installation at your church safe? Could a worker be confident that it meets current standards? To ensure that the answer is yes, particular attention should be given to the following electrical compliance areas:

• Tagging and Testing
• Electrical circuit board and sub-boards
• Electrical circuit labelling by an electrician
• Residual Current Devices (RCDs)  
• Earthing systems
• Hot water service connections 
• Solar installations
• Air-conditioning installations
• Any electrical service installation in a confined space. 

October is National Safework Month. The theme is think safe, work safe, be safe. For the church it serves as a reminder to look around and determine if there are areas where safety could be improved.

Where electrical work is required:

• It should only be undertaken by qualified tradespersons
• Electricians must provide compliance certificates for electrical work
• Inspections of electrical installations should be undertaken regularly by qualified electricians.

Do it yourself electrical work conducted by non-licensed persons can void insurance and is a significant risk.

The Synod Property Services team can assist congregations with maintenance queries. Please email property@sa.uca.org.au if you have any queries.

References:
Regulation Round Up Issue 47, March 2021 Office of the Technical Regulator.

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It is with deep sadness that the Synod staff share the news that our dear friend and colleague, Suzie Hodson, has passed away.

Suzie has been a valued member of the Financial Services Team since October 2014.  Suzie was a trusted colleague and friend to many in the Resources Team.  Her unassuming style, sense of fun and no-fuss attitude will be truly missed. 

Suzie was diagnosed with cancer in April this year, and despite extensive treatment, died peacefully on the 21st October, with her husband Martin, and children Georgia and Mitchell at her bedside.

May she rest in peace.

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Dollars & Sense seeks to provide useful information and updates to better equip Church office bearers in their roles within the life of the Uniting Church.

Articles are produced by the Synod Resources Team which includes:

Financial Services, Human Resources, Information Technology & Telecommunications, Insurance Services, Property Services, UC Invest, Uniting Venues SA, Payroll Bureau, WHS and General Enquiries.

For more information regarding any of these articles please click one of the links above for the relevant department or call 1300 766 956.