Chapter Two - The Congregation

Subject to the trusts relating to congregational property, to the relevant civil law and to the law of the church and the jurisdiction and directions of its courts, it is the duty of the board of management to administer the financial affairs of the congregation and to care for and maintain the congregational property in good order and repair (see rule 2:30; 2:88).

The board of management of a congregation consists of its minister or ministers, those elders who are both members of that congregation and of its Session, together with managers to a number determined by the congregation but not less than three. In special circumstances, and for a limited time, the congregation may delegate to the Session its right to determine the number of managers.

In view of the special provisions of The Scots' Church Trust Deed dated 23 June 1891, the trustees from time to time appointed, in accordance with its provisions, shall be, by virtue of the office held, members of the board of management of the Scots' Church, Melbourne.

Managers are persons who have been elected, in accordance with the rules for the election of managers (see rules 3:50-52), to the board of management of a congregation from and by its communicant members and adherents.

A local congregation (see rule 2:2) is entitled to establish its own board of management. It does so:

1. by resolution to that effect made at a duly convened congregational meeting; or
2. in consequence of a direction from the Session or a higher court.

Within a parish or mission field containing two or more local congregations, relevant matters of common concern are dealt with by a federal board of management. (see rule 2:12) This consists either:

1. of the boards of the local congregations meeting jointly; or
2. of representative managers appointed by the boards to a number determined by the Session of the parish or mission field. The number of representatives appointed is always proportional to the number of communicant members and adult adherents in each congregation.

The elders of the Session of the parish or mission field are members of its federal board of management.

Managers are elected for a term of two years. One half of their number retire annually in rotation but are eligible for re-election.

Resignations of managers are made to and dealt with by the Session. Any vacancy occurring between elections may be filled at a meeting of the board of management at which a quorum of the Session is present. (see rule 3:12) A manager appointed in this way holds office for the remainder of the term for which his predecessor in office was elected.

The minister has the right to preside at all meetings of the board of management, and within his own parish normally does so, but he may authorise to preside in his absence:

1. another minister of the church; or
2. a licentiate, home missionary or candidate for the ministry of the church who is assisting or supplying for him; or
3. an elder of his Session or a member of the board of management concerned.

When acting as interim moderator of a vacant charge, the minister has the right to preside at the meetings of all the boards of management within the charge, but in his absence he may authorise any of the above mentioned persons to preside. The same arrangements apply when acting as moderator of a mission station.

In the absence of the minister or of his authorised deputy, or in the event of his failure to appoint one, the board may appoint one of its own members as chairman.

The board of management elects annually from its own members its secretary and treasurer.

The secretary keeps the minutes of the proceedings of the board, takes charge of its books, papers and documents, and does such other secretarial work as is appropriate to his or her office (see also rule 2:66).

The secretary receives and submits to the board, for inclusion in its minutes, extracts of minutes relating to the duties or membership of the board that are forwarded for that purpose from the Session or a congregational meeting.

The minister (or his duly authorised deputy), as chairman, after consultation with at least a quorum of the board (see rule 2.63), may convene, cancel or alter the date of meetings of the board of management. When the date of a meeting previously fixed is altered, care is taken that this does not lead to undue postponement of the meeting.

In addition to its regular meetings the minister convenes a special meeting of the board of management:

1. whenever he is of opinion that special circumstances exist; or
2. promptly upon receipt of a written request for a special meeting signed by at least a quorum of the members of the board. (see rule 2.63)

Notice of meetings of the board of management, whether regular or special, is given either by public announcement at the time of ordinary public worship or by written or verbal notice to each member of the board in sufficient time before the meeting.

The board of management may not meet during a sitting of the Session or of a higher court unless it has the permission of the court concerned.

A quorum shall be either:

1. one quarter of the total membership of the board of management (this membership includes elders); or
2. one quarter of those elected as managers.

In either case there must be at least 4 members present.

The meetings of the board of management must be opened and closed with prayer, and motions must be seconded. The other forms and procedures of the meeting are at the discretion of the chairman, allowing members to speak more than once to the same question.

The chairman will apply to the proceedings of the meeting those formal rules of debate contained in the standing orders of the General Assembly (see Chapter 7) which are applicable:

1. in circumstances of dispute and after he has announced his intention to do so;
2. when the board itself makes a decision to do so on any particular occasion.

Ordinarily the board of management meets in private and no matter declared by the board to be confidential is to be divulged by a member without its authority or consent.

The minutes of the board of management are entered in its minute book (see rule 2.56). At every meeting the confirmation of the minutes of the previous meeting, which should contain the names of those members who were present, is ordinarily the first business after the opening. When confirmed, the minutes are signed by the chairman.

A resolution of the board of management may be rescinded after giving a notice of motion to that effect at a previous meeting of the board.

A member who has voted against a resolution of the board of management, and at the time entered his dissent, may bring the matter under review by means of a petition to the Presbytery. The procedure is the same as for a petition against a decision of a congregational meeting (see rule 2:26).

Subject to the provisions of rule 2:43 and the remaining rules of this chapter the board of management is directly responsible to and obeys all competent directions of the congregation in the discharge of its duty.

The board gathers the monetary contributions of the congregation, takes charge of them and of any other money received by or for the use of the congregation, and distributes them for the purposes for which they were contributed.

The board keeps proper and adequate records of account and other necessary financial records, and, in so doing, obeys the directions contained in the rules that follow.

The board ensures that all money received for or on behalf of the congregation and all its payments pass through bank accounts held in the name of the congregation and not through private bank accounts.

All money received by the treasurer of the board of management for whatever purpose shall be banked promptly without deduction of any kind, and all payments shall be made by cheque or by electronic funds transfer.

A book shall be kept to record church offerings and be certified each Sunday by two managers on duty. This shall be examined by the auditors and compared with the cash book.

The financial records of each congregation shall be kept by the use of separate columns in the cash book or by posting to separate ledger accounts or otherwise, so that it shall be possible readily to ascertain the amounts of:

1. collections by plate or other systematic means for ordinary congregational purposes;
2. other regular sources of congregational revenue, such as rents of property, interest on endowments;
3. special donations, sales of gifts, proceeds of fairs or special efforts of similar character;
4. the amount contributed by the congregation to the schemes of the church whether to the General Mission Program of the General Assembly or to individual schemes;
5. the amount contributed to charitable and other objects outside the church.

The PCV Standard Chart of Accounts should be used as the basis for the columns or ledger accounts (available from church website or Maintenance of the Ministry Committee).

Annually the board prepares a financial statement of accounts which is audited, an Annual Parish Report in the form approved by the Maintenance of the Ministry Committee and reported to the General Assembly and a report on the Congregation’s property and the board’s activities during the preceding year, which are submitted to the annual meeting of the congregation (note 2.22). Vacant parishes should include minimum terms of settlement and reflect this and other settlement costs in their budget as though they were not vacant.

The audit is a complete examination of the books so that receipts and expenditure may be safeguarded and the correctness of their various accounts and the information as disclosed by the annual statements may be properly verified.

The auditors shall be supplied by the board of management with:

1. an annual Statement of Receipts and Payments of the board;and either:
2. a statement of funds showing the amount:
   1. of the credit or debit balance;
   2. of investment;
   3. of mortgage on property; and
   4. of any other form of loan, in respect to each and every account pertaining to the board of management and to every congregational organisation; or
3. a balance sheet, in regular form, showing the whole assets and liabilities of the congregation and its organisations, including the estimated value of land and buildings, a note being inserted in respect to the latter stating what basis (e.g. original cost, cost less depreciation, or replacement value) has been used in making the valuation.

The auditors shall see that there is a proper check on the custody of receipt books and shall check with the cash book the receipts issued, which must be numbered consecutively.

The auditors shall examine all bank statements (and pass books) and reconcile the balance with that shown in the cash book.

The auditors shall see that the accounts paid during the period are duly passed for payment by those authorised to do so and that adequate invoices and receipts have been retained.

The auditors shall see that all money received during the period is applied to the purposes for which it was contributed and no other.

If the auditors are unable to certify the accounts as having been audited and found correct they shall indicate the nature of the defects and make recommendations for the necessary corrections, either in the accounts under review or in future accounts as the case may require.

The board carries out the directions of the courts of the church in regard to collections ordered by them, and determines what other special collections or subscriptions may be made from the congregation for its own organisations or for other bodies. It also ensures that no money shall be raised by any organisation or any individual for any purpose connected with the congregation without the approval of the board of management or a congregational meeting.

The remuneration of the minister or ministers is the first charge on the ordinary revenue of the congregation and the board ensures that it is paid at least monthly. It also ensures that all regular Assembly rates, Presbytery rates, superannuation contributions, budget collections and other payments due from the congregation are promptly remitted to the proper authority.

If the board of management finds that it is unable to pay the minister the remuneration recognised by the Maintenance of the Ministry Committee as due to him, it must immediately report the circumstances to the Presbytery (see rule 4:108).

While the Session is responsible for the appointment of congregational officers such as choir-director, organist or other musicians, or church officer, the board is responsible for fixing the remuneration (if any) and arranging the payment of these people (see rule 3:53).

The board takes care that all the property of the congregation is kept in good condition and repair, and raises funds needed for the purpose. (see rule 2:30; 2:44)

The board of management appoints a property committee which makes an inspection of all the congregational property before and after winter each year and reports to the board on its condition.

The advice of the Church Architect is sought by the board

1. when any serious defect in any of the buildings is reported; or
2. when a new building is to be erected or purchased,
   or
3. when substantial structural alterations are to be made to an existing building.
   

(see rules 2.90A, 2.33, 34; 4.145(b)).
Such advice shall be obtained on such terms and conditions as agreed to between the Church Architect and the board. There is no requirement for plans and/or specifications of proposed works to be prepared by the Church Architect.

The approval of the General Assembly’s Building and Property
Committee is sought by the board

1. when a new building is to be erected,
   or
2. when substantial structural alterations are to be made to an existing building. (see rules 2.90, 2.33, 34; 4.145(b)).

A board may not spend on repairs in any one year an amount exceeding 10% of the preceding year's ordinary congregational revenue except with congregational approval.

Before incurring any debt or acting on behalf of the congregation relative to rules 2:33, 34, the board obtains the approval of the congregation at a meeting called for that purpose (see rules 2:33, 34; 4:104, 105).

The board of management fixes and collects the charges for the use of congregational buildings for purposes approved by the Session (see rule 2:32; 3:57; 4:145(a)).