906. Fiscal Responsibilities--All moneys contributed by a local church to the World Service Fund, including World Service special gifts and Advance special gifts, the General Administration Fund, the Episcopal Fund, the Interdenominational Cooperation Fund, the Ministerial Education Fund, the Black College Fund, the Missional Priority Fund, the Temporary General Aid Fund, the World Communion Fund, the Human Relations Day Fund, the United Methodist Student Day Fund, the One Great Hour of Sharing Fund, the Youth Service Fund, the World Order Sunday Fund, Peace with Justice Sunday Fund, Native American Awareness Sunday Fund, and such other funds as may have been authorized by the General Conference shall be held in trust by the council and distributed only in support of the ministries of the respective funds. The council shall be accountable to The United Methodist Church through the General Conference in all matters relating to the receiving, disbursing, and reporting of such funds, and agencies receiving such funds shall be fiscally accountable to the council. In the exercise of its fiscal accountability role the council shall have the authority and responsibility to perform the following functions:
1. It shall submit to each quadrennial session of the General Conference, for its action and determination, budgets of expense for its own operation, the World Service Fund, the General Administration Fund, the Episcopal Fund, the Interdenominational Cooperation Fund, the Ministerial Education Fund, the World Communion Offering, the One Great Hour of Sharing Fund, the Temporary General Aid Fund, the Black College Fund, the Human Relations Day Fund, the United Methodist Student Day Fund, the World Order Sunday Fund, Peace with Justice Sunday Fund, Native American Awareness Sunday Fund, and such other general funds as the General Conference may establish. It shall also make recommendations regarding all other funding considerations to come before General Conference.
a) The council shall make recommendations to the General Conference as to the amount and distribution of all funds provided for in [014]1 above.
b) In the case of the World Service Fund, the General Council on Finance and Administration and the General Council on Ministries shall proceed in the following manner in developing budget recommendations as they relate to allocations to the general program agencies of the Church:
(1) The General Council on Ministries shall, in consultation with the General Council on Finance and Administration and the general program agencies, develop recommendations to the General Council on Finance and Administration on needs of the general program agencies for the programs, missional priorities, and special programs.
(2) The General Council on Finance and Administration shall then establish and communicate to the General Council on Ministries the total sum proposed for distribution from the World Service Fund among the general program agencies.
(3) The General Council on Ministries, after reviewing both the program priorities and the total funds available to the general program agencies, shall recommend to the General Council on Finance and Administration the amount of the annual World Service allocation to each of those agencies, within the total sum proposed by the General Council on Finance and Administration for distribution among such agencies.
(4) Only when the General Council on Finance and Administration and the General Council on Ministries agree on the allocations to the several general program agencies shall these allocations be included in the World Service budget to be recommended to the General Conference by the General Council on Finance and Administration.
(5) The General Council on Finance and Administration shall establish the total sum to be recommended to the General Conference for the annual budget of the World Service Fund.
(6) Before the beginning of each year the General Council on Finance and Administration shall determine and communicate to the General Council on Ministries the sum available at that time from World Service contingency funds to meet requests for additional funding from the general program agencies. The General Council on Ministries shall be authorized to approve allocations to the general program agencies for additional program funding up to the limit so established. No money shall be allocated by the General Council on Ministries from this source for general administrative costs, fixed charges, or capital outlay without approval by the General Council on Finance and Administration.
(7) The General Council on Ministries shall receive from the General Council on Finance and Administration copies of the proposed annual budgets of the general program agencies, in order that it may review such budgets in relation to the program proposals made by those agencies in their quadrennial budget requests.
c) It shall recommend the formulas by which all apportionments to the annual conferences shall be determined, subject to the approval of the General Conference.
d) The expenses of the council, including the cost of all its operations, shall be a first claim against all general funds received and disbursed by the council. The charges against the several funds or beneficiary agencies, except for the charge against the General Administration Fund, shall be in proportion to the funds' receipts. On recommendation of the council, the General Conference shall determine the amount of the council's expenses to be charged to the General Administration Fund.
2. It shall receive and disburse in accordance with budgets approved by the General Conference all funds raised throughout the Church for:
a) The World Service Fund, including World Service special gifts and Advance special gifts,
b) The General Administration Fund,
c) The Episcopal Fund,
d) The Interdenominational Cooperation Fund,
e) The Ministerial Education Fund,
f) The Black College Fund,
g) The Missional Priority Fund,
h) The Temporary General Aid Fund,
i) The World Communion Fund,
j) The Human Relations Day Fund,
k) The United Methodist Student Day Fund,
l) The One Great Hour of Sharing Fund,
m) The World Order Sunday Fund,
n) The Peace with Justice Sunday Fund,
o) The Native American Awareness Sunday Fund,
p) The Youth Service Fund,
q) Africa University Fund,
r) Mission Initiatives Fund, and
s) any other fund or funds as directed by the proper authority.
3. To perform the accounting and reporting functions for the General Council on Ministries, the agencies accountable to it (803.5), and any administrative general agencies (803.6) which request the service and with which a plan of operation mutually agreeable to the agency and the council is established. In the interest of sound fiscal management, the council will ensure that expenditures of agencies receiving general Church funds do not exceed receipts and available reserves, and this within an approved budget. If necessary for the efficient performance of the accounting and reporting function, the council may establish branch offices.
4. It shall require all agencies receiving general Church funds to follow uniform accounting classifications and procedures for reporting. It shall require an annual audit of all treasuries receiving general Church funds, following such auditing procedures as it may specify. It shall have authority to pass on the acceptability of any auditing firm proposed by an agency. It shall also require annually one month in advance of its annual meeting, or as is deemed necessary, and in such form as the council may require, statements of proposed budgets of all treasuries or agencies receiving general Church funds. It shall review the budget of each agency receiving general Church funds in accordance with guidelines which it shall establish and communicate to the agencies, including the relationship between administration, service, and promotion. It shall include in its quadrennial report to the General Conference a fiscal report for each of the general agencies, including councils, boards, commissions, and committees of The United Methodist Church that have been constituted by the General Conference. Such report shall be available upon request.
5. To establish policy governing the functions of banking, payroll, accounting, and budget control for all agencies receiving general Church funds. The council may upon mutual consent of the agencies involved, perform the functions of banking, check preparation, and payroll on behalf of an agency in order to maximize efficiency of operation.
6. To develop investment policies for, suggest investment counselors for, and review, at the council's discretion but on at least an annual basis, the performance of all invested funds of all agencies receiving general Church funds. The council shall have complete authority to manage any portfolio of less than $1,500,000. The council is encouraged to invest in institutions, companies, corporations, or funds which make a positive contribution toward the realization of the goals outlined in the Social Principles of The United Methodist Church (70-76).
7. To receive, collect, and hold in trust for the benefit of The United Methodist Church, its general funds, or its general agencies, any and all donations, bequests, and devises of any kind, real or personal, that may be given, devised, bequeathed, or conveyed to The United Methodist Church as such or to any general fund or agency of The United Methodist Church for any benevolent, charitable, or religious purposes, and to administer the same and the income therefrom in accordance with the directions of the donor, trustor, or testator; and, in cooperation with the Board of Discipleship, to take such action as is necessary to encourage United Methodists to provide for their continued participation in World Service, in one or more of the World Service agencies, or in other general Church benevolence funds or interests, through wills and special gifts.
8. In consultation with the National Association of United Methodist Foundations, to establish standardized gift annuity rates for the writing of annuities by United Methodist foundations and institutions and agencies operating under the auspices of the denomination.
9. Where Annual Conferences, individually or in groups, have established United Methodist foundations, the council may provide staff leadership on request to advise in matters of financial management, to the end that foundation assets shall be wisely managed on behalf of the Church.
10. To approve plans for financing all national conferences and convocations to be held under the auspices or sponsorship of any general agency of the Church.
11. To make recommendations to the General Conference, in consultation with the General Council on Ministries and the Council of Bishops, regarding any offerings to be received in connection with special days observed on a churchwide basis. These recommendations shall include the number and timing of such special days with offerings, the amount, if any, to be established as a goal for each such offering, the causes to be benefited by each, the method by which the receipts on each such offering shall be distributed among the causes benefiting from it, and the method by which such receipts shall be remitted and reported by local Churches. All such recommendations are subject to the approval of the General Conference.
12. The council shall be responsible for ensuring that no board, agency, committee, commission, or council shall give United Methodist funds to any "gay" caucus or group, or otherwise use such funds to promote the acceptance of homosexuality. The council shall have the right to stop such expenditures.19 This restriction shall not limit the church's ministry in response to the HIV epidemic.
19 See Judicial Council Decisions 491, 597.
General Conference Webmaster: Susan Brumbaugh
PETS Creator: John Brawn
1992 Book of Discipline: ¶ 906
1996 United Methodist General Conference