Board of Trustees Duties and Responsibilities 1/26/2013 Board of Trustees Duties and Responsibilities created by the Crossroads and Heartland District

created by the Crossroads and Heartland District Areas of Focus Church Legal Issues Trust Clauses in deeds Church Property Policies Security of Facilities Managing Bequests and Trusts created by the Crossroads and Heartland District

Trust Clause in Church Deeds Required by The Book of Discipline ¶2501 and ¶2503 Different clauses for church, parsonage and other property Assures that property will be a part of the connected and shared purpose and mission of United Methodism created by the Crossroads and Heartland District

Duties Board of Trustees Duty of Loyalty Trustee may not take part in an action if the member has an actual or potential conflict of interest In case of a conflict of interest, the trustee should abstain from participation in the decision What is best for the local church is the criteria Duty of Care Act in good faith and in a manner believed to be in the best interests of the church Act as an “ordinary prudent person” would act under similar circumstances Be diligent in attending meetings and be properly informed created by the Crossroads and Heartland District

Weapons on church premises PROPERTY POLICIES Weapons on church premises Churches must have a written policy prohibiting all weapons on the church premises AND a sign on all entry doors indicating no weapons allowed. created by the Crossroads and Heartland District

created by the Crossroads and Heartland District PROPERTY POLICIES Without these policies and signs, licensed persons may lawfully carry weapons into the church either concealed or open. Commissioned law enforcement officers may carry weapons and are exempt from the policies of property owners prohibiting weapons on premises. They should be requested to conceal the weapon whenever possible to avoid disturbing others. created by the Crossroads and Heartland District

Tobacco use on church property PROPERTY POLICIES Tobacco use on church property Churches are “public places” under Oklahoma law and should have signs posted at all entrances Parsonages are smoke and tobacco free but outside smoking is allowed under Conference Parsonage Standards created by the Crossroads and Heartland District

created by the Crossroads and Heartland District INSURANCE ¶2533.2 of Book of Discipline requires trustees to: Annually review the adequacy of property, liability and crime insurance on church owned property buildings and equipment Annually review adequacy of personnel insurance Standards are published by General Conference on Finance & Administration created by the Crossroads and Heartland District

created by the Crossroads and Heartland District Insurance United Methodist Church Minimum Insurance Requirements http://www.gcfa.org/gcfa/united-methodist-church-minimum-insurance-requirements Include results of review in the annual report to the charge conference along with any recommendations created by the Crossroads and Heartland District

created by the Crossroads and Heartland District Insurance ¶2550.7 also requires: the trustees to provide a detailed statement of the insurance carried on each parcel of real estate, and indicate if the coverage is adequate created by the Crossroads and Heartland District

created by the Crossroads and Heartland District Coverage Insurance Land & Buildings Up-to-date valuations for replacement cost of buildings and parsonages Consider earthquake coverage on building and parsonage Personal Property & Equipment Current inventory (with video) of all personal property and building contents Consider separate riders for computers, software and peripheral equipment Non-owned vehicle coverage should be obtained created by the Crossroads and Heartland District

created by the Crossroads and Heartland District Fidelity Bond ¶2533.2 requires the trustees to annually review the adequacy of personnel insurance which includes fidelity bonds ¶258.4.b) says the committee on finance must make sure the treasurer is adequately bonded and sub-paragraph d) of that paragraph requires the committee on finance to “make provision for an annual audit of the financial statements of the local church.” created by the Crossroads and Heartland District

created by the Crossroads and Heartland District Fidelity Bond Since the trustees are to maintain adequate insurance, the fidelity bond for the treasurer is the responsibility of the trustees and the annual audit is generally a requirement for fidelity bond coverage. Blanket bond should cover both employees and volunteers. created by the Crossroads and Heartland District

Security of premises and people Get help from the local police department in performing a safety audit of the church Consider locking doors during worship except sanctuary doors Ushers can “patrol” hallways created by the Crossroads and Heartland District

Managing Bequests & Trusts 1/26/2013 Managing Bequests & Trusts ¶2533.5 Subject to the direction of the charge conference, the board of trustees shall receive and administer all bequests made to the local church and receive and administer all trusts. If the gift or bequest is unrestricted, the trustees may make a recommendation to the charge conference regarding the use of the funds, but the charge conference makes the ultimate determination. Guidelines and policies should be developed (probably by the trustees) and adopted by the charge conference to give advance direction to the trustees in regard to the receipt and administration of funds. created by the Crossroads and Heartland District

created by the Crossroads and Heartland District Managing Bequests & Trusts The board of trustees is always subject to the direction of the charge conference regarding the acceptance or rejection of any gift, bequest or other transfer. (¶2529.3) The charge conference and trustees should utilize the Oklahoma Methodist Foundation to invest, manage and carry out the terms of bequests and trusts. created by the Crossroads and Heartland District

created by the Crossroads and Heartland District Annual Report Legal description and valuation of each parcel of church real estate Specific name of the grantee in deeds to the church Inventory and valuation of all personal property owned by the church Income received from any income-producing property and detail of expenses in connection with it (royalties, rents, etc.) Amount received for building, rebuilding, remodeling, repairs & itemized statement of expenditures created by the Crossroads and Heartland District

created by the Crossroads and Heartland District Annual Report Outstanding capital debts and how contracted Detailed statement of insurance carried and opinion of adequacy of coverage Name of legal custodian of all legal papers and where they are kept Detailed list of all trusts of which the church is beneficiary, how and where the funds are invested and the income from them Evaluation of all church properties, including the chancel area, to ensure access by persons with disabilities created by the Crossroads and Heartland District

If you have questions contact your District office or the 1/26/2013 If you have questions contact your District office or the Conference Administrative Service’s office for more information. United Methodist Ministry Center 1501 N.W. 24th St. Oklahoma City, OK 73106-3635 405.530.2067