LR01 Changes to Finance Advisory Committee
Removal of Finance Advisory Committee
PROPOSED MOTION Submitted by*: LCNZ Council of Synod
BE IT RESOLVED:
That the requirement for the LCNZ to have a Finance Advisory Committee be removed and that the position of Convenor of the Finance Advisory Committee also be removed.
Further the By Laws be amended to reflect this change as follows (bold new, strikethrough removed):
By-Laws:
- Article VII, Clause5, Para b will report on the state of the finances of the LCNZ, including monies received and payments made, on a regular basis to the Finance Advisory Committee, Council of Synod and to the Bishop when so required;
- Article VII Clause 6 Para a) subclause I the Council of Synod will consist of eight (8) members: the Bishop, the Assistant Bishop, the Treasurer, a Convenor of the Finance Advisory Committee, a Congregational Life Facilitator, a Pastor Representative and two three Lay representatives. The Administrator will be a consultant
- Article VII, Clause 6, Para b) subclause x The Council of Synod will appoint its own Finance Advisory Committee
- Article VII, Clause 6, Para c) subclause ix will on the basis of the recommendations made to it by the Finance Advisory Committee, recommend to the Convention of Synod, or place before voting members of Synod in a postal ballot, projects involving the taking out of loan(s) greater than the budget of the LCNZ in that year,
- Article VII Clause 6, para c) subclause x will, on the recommendations of a) the Salaries Advisory Committee, and b) the Finance Advisory Committee set the policy for determining salary and allowances of church workers and make adjustments to the salary and allowances from time to time,
- Article VII, Clause 8 a) subclause ii No paid church worker, or member of Council of Synod or the Finance Advisory Committee will be eligible for appointment.
REASONS FOR THE MOTION
A review of the current operation of the Finance Advisory Committee was undertaken in 2023. It identified changes to circumstances in recent years which impact on the need for a Finance Advisory Committee and which include:
- Legal and financial services changes include:
- The introduction of The Charities Act 2005, which required charitable entities to register to enable them to retain a charitable tax status. There is an ongoing requirement to file an annual return and accompanying audited financial statements, prepared in accord with prescribed parameters.
- Financial institutions having to issue a prospectus and meet stringent borrowing and lending criteria. This impacted the Lutheran Laymens League and resulted in it having to be voluntarily wound up. The Special Purpose Funds that LLL managed were subsequently transferred to LCNZ and now managed under The Gateway Gift Trust Board.
- Circumstance changes include:
- The engagement of professional investment managers of the funds of The Gateway Gift and Special Purpose Funds. Policy has been prescribed by CoS and GGTB with the fund managers. Investments are managed in accord with that policy. Previously FAC would make the investment recommendations to CoS and GGTB, and then upon their approval would arrange the investments.
- Consideration of grant applications for the Special Purpose Funds, with recommendations being made to CoS and GGTB.
- The Treasurer position has become an overseeing one, rather than a hands-on one. With the overall membership of the LCNZ diminishing this has impacted on the availability of persons from within the membership for appointment to the role, especially a person having the appropriate skills.
- Employment of a part-time Finance Administrator and the outsourcing of financial management of the accounting and payroll records, including
1 compilation of the accounts for audit
2 IRD returns are automated in accordance with it’s requirements
SUBMITTING BODY DETAILS SUBMITTING BODY DETAILS
This has been approved by the authorised body at a duly held meeting and is confirmed as an accurate and complete version of the agreed proposal.
Submitted by: Andrew Marr
Date of meeting where approved: 14 November 2023
Name of submitting organisation: LCNZ Council of Synod
