For almost nine months now, a group of teaching and ruling elders from the Presbytery of the Pacific Northwest have been engaged in a conversation with the National Leadership Team and key staff from the Office of the General Assembly regarding how to improve communication of the EPC’s financial resources.
After an initial letter outlining concerns and ideas for more robust reporting and the NLT’s response, representatives from both groups met initially in person at our 45th General Assembly at Ward Church in Northville, MI. More recently, the groups gathered again at Chapel Hill EPC in Gig Harbor, WA on Monday, October 13 in order to continue the conversation and move forward in recommendations that would improve greater financial reporting and accountability.
“The extensive effort to meet face-to-face was well worth it. The team communicated openly and respectfully, collaborating toward comprehensive and transparent financial reporting. I feel we have made great strides in these efforts and look forward to seeing the fruit of our hard work,” said John Carpenter. All of those present brought a good spirit of collegiality with a deep love for the Lord and commitment to the well-being of the EPC. The conversations were substantive and there was much agreement around increased reporting that would be helpful to understand the mission and vision of the EPC. “I believe the meeting was productive and affirmed the OGA’s intention to provide more information both to the General Assembly when reviewing and approving the budget as well as providing and making more information available on a quarterly basis,” said CFO Pat Coelho about his thoughts on the meeting.
Some commitments coming out of the meeting are as follows:
- In addition to the Quarterly Financial Report that comes out via email that details overall actual and budgeted revenues and expenditures, the GA Office will also include a link to the EPConnect website with more detailed information on quarterly and year-to-date accounting, equivalent to the report that the National Leadership Team reviews quarterly. Such a report will also include a narrative that will provide appropriate context for the report, with particular attention to reporting actual-to-budget variances over 10%.
- For annual reporting, the GA report will now create a separate set of financial reports for the three corporations within the denomination: the EPC (the General Assembly budget and expenditures), World Outreach, and Benefits Resources Inc. In the past, those financials were grouped together which made them difficult to understand.
- There will be several changes to the budget presentation at General Assembly. In addition to the annual audit report for the General Assembly (GA) commissioners, the GA staff will also include a budget narrative as part of the presentation that will provide the context and explanation for the budget that is being presented for approval. In addition, as a part of the budget presentation, the GA staff will also begin a good-faith effort to include metrics in the budget presentation, with an aim to connect spending and outcomes.
- The NLT agreed to take up questions related to how unrestricted reserves are reported and how they are allocated to fund the work of the OGA and the Gospel Priorities. All present agreed that the NLT needed reasonable flexibility when it came to spending on our Gospel Priorities, coupled with clear accountability. In addition, all present agreed that clearer reporting for the use of unrestricted funds should be provided to GA commissioners, as well as current fiscal year positive/negative budget contingencies. The NLT will discuss potential guidelines for such reporting and offer possible Acts of the Assembly to our 46th General Assembly that would formalize a ‘material’ threshold for such reporting.
“I’m grateful for these fellow presbyters for lovingly pushing us to be better, and for desiring that these conversations take place face-to-face. I came away humbled by the time spent with new friends,” 45th GA Moderator Dave Strunk said.
“I appreciate members of the NLT and OGA staff who took time to address our concerns. I pray that going forward we will all be blessed by the more robust financial reporting,” said Pastor Bill Heming about the meeting.
The conversation was civil and respectful throughout. Though we did disagree in one minor area- the degree of disclosure of individual GA staff compensation- the conversation was constructive and amicable.
