2. Board of Trustees Duties and Responsibilities
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Board of Trustees Duties and Responsibilities
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3. 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
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4. 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

5. 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
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6. 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.
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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.
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8. 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
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INSURANCE
¶ 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
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10. created by the Crossroads and Heartland District
Insurance
United Methodist Church Minimum Insurance Requirements
Include results of review in the annual report to the charge conference along with any recommendations
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Insurance
¶ 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
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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
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Fidelity Bond
¶ 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.”
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14. 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.
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15. 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
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16. Managing Bequests & Trusts
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Managing Bequests & Trusts
¶ 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.
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17. 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.
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18. 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
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19. 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
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20. 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