| Mission Agency Adopts New Plan for Distributing and Monitoring International Funds | |||||||||||||
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by Elliott Wright |
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New York, NY, November 13, 2009--The General Board of Global Ministries, the mission agency of The United Methodist Church, is changing the way it delivers and monitors funds for international mission work. The new system has four objectives:
Funds at stake average between $25 million and $30 million per year ($27.1 million in 2008), and cover a wide range of mission-related expenditures in 106 countries. The money currently underwrites 197 missionaries, and includes designated mission gifts and grants, as well as distribution of the proceeds of mission trust funds managed by the board. One major shift relates to Area Financial Executives (AFEs), persons holding missionary-level assignments who have received, distributed, and accounted for funds in recent years. The position of AFE is being replaced with a structure in which most funds go directly to the treasurers of annual conferences or autonomous churches with which the board works. "The board must constantly think of the most creative and effective ways to manage the resources that God has entrusted to us," said the Rev. Bau Dang, chair of the Global Ministries' finance committee and a district superintendent in the California-Pacific Annual Conference. "I know that many of our people give sacrificially for the work of mission." Bishop Peter Weaver of New England, chair of the board's audit committee, said that the change in the system "is an important step with the bottom line always being the timely, accountable, and fruitful resourcing of God's mission around the world." Regional Auditors The shift in responsibility will be followed up by concerted monitoring and auditing by regional auditors in Africa, Asia, Europe, and Latin America. In some cases, funds may go entirely to the donor-designated beneficiaries, and in other cases funds will be administered by episcopal offices.
Fourteen AFE appointments will be phased out. In the new plan, there will be eight qualified regional auditors who will receive training for the regions they cover. The board will provide training for the treasurers and treasury staff of the mission partners where needed, thus equipping them to provide the management and safekeeping of mission funds. Bishop Weaver said of the regional audit plan: "This strategy, in tandem with building the administrative capacity of the mission partners, will be carefully implemented in consultation with the mission partners when and where it is clear that this will advance 'making disciples of Jesus Christ for the transformation of the world.'" There will continue to be Global Ministries' appointed treasurers, who may be missionaries, in the countries where the agency has new mission initiatives, and also in special situations. The new system has been approved by the board's Audit and Finance Committees and is expected to be phased in during the first six months of 2010. There is no timeline on when this transition will be completed. The particular circumstances in each country are being closely evaluated with regard to the timing for the change. Reasons for the Changes "This restructure has been in the planning stages for some time," said Roland Fernandes, general treasurer of Global Ministries. "It reflects the need to reduce the time it takes for funds to reach the beneficiaries. It enhances the financial capacity of the central conference financial offices, increases the accountability of the funds, and reduces the time lag between audits to ensure compliance with audit recommendations." The fund delivery system based on AFEs currently costs some $1.1 million annually; the new plan is expected to cost less over the long run. The new regional auditors will not be missionaries of Global Ministries but will be contract employees based in strategic locations around the world. "There is a clear need to establish the independence of the internal audit function which now operates under an Independent Audit Committee," Fernandes added. Mr. Fernandes said that the new pattern will help to build the administrative capacity of the United Methodist annual conferences that are mission partners in Africa, Asia, and Europe, and the autonomous or united churches in Latin America and the Caribbean. This method of distributing the funds to the treasurers of partners is already in effect in Latin America, the Caribbean, and some other places around the world. Fernandes explained: "Our new system will include an agreement between Global Ministries and every mission partner, defining the obligations and responsibilities of each side in the management, handling, application, accounting, and safekeeping of mission funds and property. It requires that recipient conferences or autonomous churches set up separate bank accounts for Global Ministries' funds and follow prescribed patterns of authorization in releasing funds." Rev. Dang said that the new plan "will address our needs in the international arena more effectively and efficiently. It represents not only potential cost savings but will give us a sense that the funds are being used for the purposes intended." Audit Regions Three of the eight regional auditors will serve areas in Africa, two in Asia, two in Latin America, and one in Europe, also covering the Middle East. Approximately 47 percent of the mission funds distributed goes to Africa, or $12.8 million of the $27.1 million in 2008. The board has 71 missionaries in Africa at this time. The regional auditors will report to Barbara Jacobsen, director of internal audit of the mission board. Ms. Jacobsen reports to an audit committee, which is an independent group, beginning in January 2009. Africa will have regional auditors in West Africa, covering seven countries; East Africa, eight countries; and Central Africa, seven countries. The two regions in Asia will be based in India and the Philippines; South America, where the board has work in 10 countries, will comprise a region; and Central America, the Caribbean, and Mexico will constitute another. Current AFE offices in South and Central America will be the first to close because of the already existing arrangements with partner church treasurers. An eighth region will consist of parts of Western and Eastern Europe, Eurasia, and the Baltic countries. The regional auditors will be expected to visit the conferences or partner churches on a regular basis to monitor and ensure the proper handling, accounting, release, and application of the Global Ministries funds. Experience Needed Candidates for the positions of regional auditor must be affiliated with a Methodist church, have a bachelor's degree in accounting, and at least two years in an accounting/auditing position. They must be able to work independently and be effective in the countries where they serve. Employment history with Global Ministries would be a plus, and it is expected that some of the current AFEs may be considered for the new openings. Interested persons may contact Ms. Jacobsen at bjacobsen@gbgm-umc.org. Elliott Wright is the information officer of the General Board of Global Ministries.
Date posted: Nov 13, 2009 |
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