Diocese of Johannesburg
Good Governance Workshop
May 2011
AGENDA
1.
2.
3.
4.
5.
6.
7.
Introduction and Welcome
Principals of Good Governance
1. 8 Characteristics as defined by the United Nations
2. Application of above characteristics to Church
Councils and Parishes
3. King 3 and Church
Tea
Practical Guides for control of church income
Budgets and their use to monitor parish finances
Human Resource Issues
1. Remuneration
2. Clergy versus Laity
3. Memorandum of Understanding
4. Employment Contract
5. Disciplinary Procedures
1. Clergy
2. Laity
Close
CHARACTERISTICS OF GOOD GOVERNANCE
Source: United Nations paper, What is Good Governance?,
www.unescap.org/huset/gg/governance.htm (24 December 2006).
CHARACTERISTIC
Accountability
DEFINITION
Accountability is a key requirement of good
governance. Not only government institutions
but also the private sector and civil society
organisations must be accountable to the
public and to their institutional stakeholders.
Who is accountable to who varies, depending
on whether decisions or actions taken are
internal or external to an organisation or
institution. In general, an organisation or an
institution is accountable to those who will be
affected by its decisions or actions.
Accountability cannot be enforced without
transparency and the rule of law.
CHARACTERISTIC
Consensusoriented
DEFINITION
There are several actors and as many
viewpoints in a given society. Good governance
requires mediation of the different interests in
society to reach a broad consensus on what is
in the best interest of the whole community
and how this can be achieved. It also requires a
broad and long-term perspective on what is
needed for sustainable human development
and how to achieve such development. This
can only result from an understanding of the
historical, cultural and social contexts of a
given society or community.
CHARACTERISTIC
Effectiveness
and efficiency
DEFINITION
Good governance means that processes and
institutions produce results that meet the
needs of society while making the best use of
the resources at their disposal. The concept of
efficiency in the context of good governance
also covers the sustainable use of natural
resources and the protection of the
environment.
CHARACTERISTIC
Equity and
inclusiveness
DEFINITION
A society’s well being depends on ensuring
that all its members feel that they have a stake
in it and do not feel excluded from the
mainstream of society. This requires that all
groups, but particularly the most vulnerable,
have opportunities to improve or maintain
their well being.
CHARACTERISTIC
Participation
DEFINITION
Participation by both men and women is a
cornerstone of good governance. Participation
could be either direct or through legitimate
intermediate institutions or representatives.
Representative democracy does not necessarily
mean that the concerns of the most vulnerable
in society would be taken into consideration in
decision-making. Participation needs to be
informed and organised, which requires
freedom of association and expression and an
organised civil society.
CHARACTERISTIC
Responsiveness
DEFINITION
Good governance requires that institutions and
processes try to serve all stakeholders within a
reasonable timeframe.
CHARACTERISTIC
Rule of law
DEFINITION
Good governance requires fair legal
frameworks that are enforced impartially. It
also requires full protection of human rights,
particularly those of minorities. Impartial
enforcement of laws requires an independent
judiciary and an impartial and incorruptible
police force.
CHARACTERISTIC
Transparency
DEFINITION
Transparency means that decisions made and
their enforcement are achieved in a manner
that follows rules and regulations. It also
means that information is freely available and
directly accessible to those who will be
affected by such decisions and their
enforcement. It also means that enough
information is provided and that it is provided
in easily understandable forms and media.
King III and Church
King III has broadened the scope of corporate governance in South Africa with its core
philosophy revolving around leadership, sustainability and corporate citizenship.
These key principles are given prominence:
•Good governance is essentially about effective leadership. Leaders need to define
strategy, provide direction and establish the ethics and values that will influence and
guide practices and behaviour with regard to sustainability performance.
•Sustainability is now the primary moral and economic imperative and it is one of the
most important sources of both opportunities and risks for institutions. Nature, society,
and institutions are interconnected in complex ways that need to be understood by
decision makers. Incremental changes towards sustainability are not sufficient – we
need a fundamental shift in the way institutions act and organise themselves.
•Innovation, fairness, and collaboration are key aspects of any transition to
sustainability – innovation provides new ways of doing things, including meaningful
responses to sustainability. Fairness is vital because social injustice is unsustainable and
collaboration is often a prerequisite for change.
King III and Church
•Social transformation and redress is important and needs to be integrated within the broader
transition to sustainability. Integrating sustainability and social transformation in a strategic and
coherent manner will give rise to greater opportunities, efficiencies, and benefits, for both the
institution and society.
•King II required companies to implement sustainability reporting as a core aspect of corporate
governance. Since 2002, sustainability reporting has become a widely accepted practice and
South Africa is an emerging market leader in the field.
•However, sustainability reporting has not been embraced by non-commercial institutions, and
this is to be encouraged..
Key steps for any institution
• Values, vision, goals and strategy
• Proactive organisation and planning
• Day-to-day oversight
• Coherent leadership - empowering
Management vs Leadership
LEADERSHIP
MANAGEMENT
•
Planning and Budgeting
•
Organising and Staffing
Execution
•
Outcome
•
Creating an Agenda
Developing a human
network for achieving
agendas
John P Kotter
•
Establishing
Direction
•
Aligning People
Controlling and
Problem Solving
•
Motivating,
Inspiring
Predictability and Order
•
Produces Change
Good Governance – what is it?
• Leadership and management of an institution,
including a parish
• Applies to business and government
• King Commission Report gives guidance
• Requires commitment to the spirit and not the
letter of the guidelines
TEA
15 Minutes
DIOCESE OF JOHANNESBURG
PARISH COUNCIL GOOD GOVERNANCE
CONTROL OVER RECEIPTS
1 Sidesperson (TWO)
1 Count collection for each service (separate)
2 Enter cash / cheques and number of envelopes in Collections
Register (MUST SIGN REGISTER)
3 Collections locked in parish safe
4 Completes Service Register with number of Attendees /
Communicants
2 Parish Office / Church Warden (TWO People)
1 Count collection and matches to Sunday list
2 Envelopes are opened and recorded in the Dedicated Giving /
Tithe register
3 The deposit slip is prepared
4 Deposit taken to the bank as soon after Sunday as possible
3 Treasurer / Bookkeeper
1 Uses Deposit book as prime entry in the Cash Book
COUNTING OF COLLECTIONS AND BANKING MUST BE PERFORMED BY
DIFFERENT PEOPLE
DIOCESE OF JOHANNESBURG
PARISH COUNCIL GOOD GOVERNANCE
CONTOL OVER PAYMENTS
1 Treasurer / Parish Secretary
1 Prepares Payment Requisition (Cheque / Electronic / Cash)
2 Passes to Responsible Portfolios for approval
2 Cheque signatories / church wardens
1 Signs cheque / releases payment
2 Despatches Cheques
3 Bookkeeper / Treasurer
1 Files electronic payment vouchers as proof of payment
2 Enters payments in the Cash Book / Petty Cash Book
4 Automatic debits and credits are recorded at time of bank
reconciliation
THE BOOKKEEPER / TREASURER CANNOT BE A CHEQUE SIGNATORY OR
RELEASE ELECTRONIC PAYMENTS
Budgets
For monitoring parish income and expenditure
BUDGETS AND OTHER INTERNAL CONTROLS
CANONS AND RULES
Canon 29
Rules: Schedule F
DIRECTIONS
In terms of Canon 29, Churchwardens (and Chapelwardens) are responsible for the preparation
of annual estimates of revenue and expenditure (budgets) and for the execution of Council’s
policy on finance.
Schedule F provides that:
Council shall assist and advise the Churchwardens in the management and control of the
revenues of the parish.
Churchwardens shall submit to each monthly meeting of Council a full statement of income and
expenditure for the preceding month
The following specific controls are to be implemented:
Receipts issued for all cash received and deposited in the parish bank account
All payments shall be approved either by the Churchwardens and Incumbent or by Council
and shall be in accordance with the budget approved by vestry
No payments shall be approved for which the necessary funds are not available.
All cheques / cash requisitions are to be signed by two authorised signatories and all
expenditure supported by appropriate vouchers
The following checklist is provided to assist in evaluating the adequacy of internal controls which
are considered sound :
Budgetary control
Has an annual budget been prepared and approved by Council and Vestry?
Are monthly accounts prepared which measure performance against budget?
Are variances from budget explained to Council and approved by it?
Controls over income
Are there clear procedures in place to record all income, particularly Sunday collections, as soon
as possible after receipt and for regular banking?
Is any expenditure made from cash income before banking properly recorded and approved?
Are these procedures working effectively?
Controls over expenditure
Are there clear procedures for requesting expenditure e.g. a requisition form which must be
supported by vouchers and approved by the responsible portfolio?
Are cheques signed by two signatories only after the approved vouchers have been presented?
Is a list of cheque and cash payments made, and to be made, presented to Council for approval
at each meeting?
Are all vouchers properly filed by month for easy reference and safe-keeping?
Where electronic banking is done, do both releasers have access to the vouchers when
releasing?
Accounting records
Are suitable books or other forms of accounting record kept which enable monthly accounts to
be prepared and will meet the needs of the Auditors or Independent Verifier?
If possible list Monthly not just Annual amounts
Starting Point
Gather Information
Dedicated Giving / Tithing records
Not the names of parishioners but just amounts.
Collections
Details
Unusual Services
Easter
Patronal Festival
Fixed Other Income
Rental from Property
Hall
Rectory
Cell Masts
Fund Raising Income
Planned fund raising events for the following year
Other Income
Bequests
Unusual Donations
Monthly Expenses from prior and current year
Fixed Expenses
Municipal Accounts
Stipends
Salaries & Wages
Communication
Insurance
Variable Expenses
Fund Raising
Major Maintenance
Total Income
Monthly
Total Expenditure
Monthly
Fixed
Variable
Combined
Apply Inflation / Other Factor
Not necessarily the same for all items
Compare Income to Expenditure
Adjust Expenditure Budget to match Income Budget if necessary
Compare Actual to Budget
Monthly
Explain Variances
Human Resource Issues
DIOCESE OF JOHANNESBURG
MEMORANDUM OF AN UNDERSTANDING BETWEEN _______________ AND THE PARISH
COUNCIL OF __________________ AS REPRESENTED BY
___________________________________________________________________
The overall focus of the cleric’s ministry within the parish: ________’s main responsibility as
Rector / Priest in Charge / Assistant Priest at __________ will
be_________________________________________________________________
The aim is to work in a transparent way to encourage and empower the ___________
congregation to grow in every respect as quickly as possible. See Ordination service and
Institution of the Priest
The expectation of the cleric’s spouse in joining in the life of the parish: ____________
The understanding in regard to the following:Diocesan package: The normal diocesan package will apply. – (This is spelt out in great
detail giving the exact package that will be processed by Salaries department once the
appointment is made)
Housing: ____________ will / will not live in the parish house / flat.
Gardening:
Electricity, water, rates and maintenance of the housing: The parish meets these costs
in the normal way.
Insurance of household contents: The parish will meet this cost in the normal way. (All
insured through J.I.F.)
Retreats, Books & Vestments: The parish will reimburse ____________ for expenditure
up to the Diocesan limits.
Use of Telephone and Cellphone: A landline is to be installed in the ____and the parish
will meet the monthly call charges up to an amount of _____ per month.
____________ has a cell phone and the parish will meet the expenses related to calls at
the rate of _____ per month.
Transport/Transport allowance: The parish will be responsible for all reasonable expenditure
on the car including petrol expenses at the rate of a tank per week. (This varies dramatically
from parish to parish and depends on if there is a car allowance or a parish car)
Offering: An Easter offering will be taken for the priest-in-charge at ___________. (This is
sometimes in the form of a December / other month bonus)
Postgraduate studies: ____________
Day off: ____________ day off is ________. The parish will be advised of this and be asked to
respect it.
Vacation: As per Diocesan Rules. (28 calendar days including 4 Sundays)
Long leave: Long leave will be taken as per the diocesan Rules. (3 Months every 6 years)
Fees (Weddings, baptisms, etc.) – This should go to the parish.
Areas; of interest & involvement:
Involvement in parish administration & finances: The Treasurer handles the money and the
bookkeeping and so ____________ will not be part of the financial management except as a
member of the executive and the council. ____________ will, however, be expected to oversee
the work done by all the staff although, for example, the details of the garden are managed by
others. (Clergy should always be one of the cheque signatories / electronic signatories)
Other points covered:
Review between cleric and churchwardens (archdeacons)
This agreement together with the allowances will be reviewed annually.
Signature of:
Cleric
Date
Minuted in the minutes of the parish council of the:
Signature of:
Churchwarden
Copy:
Churchwarden
Bishop of Johannesburg
Diocesan Secretary
Salaries Department – Diocesan Office
And the parties who signed above.
Date
CONTRACT OF EMPLOYMENT
made and entered into by and between
The Anglican Diocese of Johannesburg
Darragh House
13 Wanderers Street Johannesburg
(hereinafter referred to as “the Employer” and represented by the Diocesan Secretary of the
Diocese)
and
Name
Identity Number: 999999999999999
Address
(hereinafter referred to as “the Employee”)
PREAMBLE
It is hereby recorded that the Employer and the Employee have entered into a contract of
employment which shall be governed by the terms and conditions outlined below.
BASIC CONDITIONS OF EMPLOYMENT ACT/LABOUR RELATIONS ACT
This agreement is subject to the provisions of the Basic Conditions of Employment Act, No. 75 of
1997, where applicable, and as amended from time to time, as well as the Labour Relations Act,
No. 66 of 1995, where applicable, and as amended from time to time and all and any general
conditions of employment of the Employer, including such policies and procedures as may be in
force from time to time, unless hereinafter stipulated to the contrary.
JOB DESCRIPTION
2.1 The Employee will be employed as __________. The function of the __________ is more
fully outlined on the attached Job Description
2.2T he Employee undertakes to :-
2.2.1 Report to _______________, on a regular basis; and
2.2.2 Perform such duties as are assigned to him / her by the Employer from time to time.
2.2.3 Perform such duties as more fully outlined in the attached Job Description for
__________________
2.3 Apart from the duties entailed in the position and undertakings referred to in paragraphs 2.1
and 2.2 above, the Employee undertakes to perform such other work as she may be assigned
from time to time without the payment of additional remuneration.
REMUNERATION
5.1 It is recorded and agreed that the total remuneration payable by the Employer to the
Employee shall be a monthly package of R99,999 (Amount in words rand) payable monthly in
arrears. In addition to this there will be a medical aid allowance, currently R9,999.00 (Amount in
words) per month also payable monthly in arrears. The ______ normally pays a 13th cheque in
December as an annual bonus but this is not guaranteed and depends on individual
circumstances and the financial position of the __________
5.2 Payment of the Employee’s salary shall be made into the Employee’s bank account at a
financial institution of her choice.
5.3 Any increases, where applicable, shall be solely at the discretion of the Employer and
dependent upon the Employee’s performance as well as the overall financial performance of the
Employer.
HOURS OF WORK
6.1 Normal Hours
6.2 Overtime Hours
ANNUAL LEAVE
7.1 The Employee shall be entitled to _________working days paid leave per annum and
entitled to accumulate a maximum of ________days leave; any leave accumulated in excess
thereof shall be forfeited. After three years of complete service the number of working days
leave per annum shall be increased to _________
7.2 Leave must be applied for in writing and may only be taken at a time mutually convenient to
the Employer and the Employee.
7.3 The Employee shall not be entitled to payment in lieu of leave.
SICK LEAVE
8.1 During each period of thirty-six (36) consecutive months of employment the Employee shall
be entitled to paid sick leave equivalent to the number of days the Employee works during a
period of six (6) weeks. However, during the first six (6) consecutive months of employment the
Employee will be entitled to one (1) working days’ sick leave for each completed period of
twenty six (26) days worked.
8.2 For any absence from work for a period of more than two (2) consecutive days or on more
than two occasions during a period of eight (8) weeks, the Employee will be required to submit
a certificate signed by a registered medical practitioner stating the nature and duration of the
Employee’s ailment before sick pay will be awarded.
FAMILY RESPONSIBILITY LEAVE
9.1 Upon completion of the first four (4) months of employment, the Employee shall be
entitled to three (3) days paid family responsibility leave per annum to be taken:9.1.1 when the Employee’s child is born; or
9.1.2 when the Employee’s child is sick; or
9.1.3 in the event of the death of the Employee’s spouse or life partner, parent, adoptive
parent, grandparent, partner, child, adopted child, grandchild or sibling.
9.2 The Employee, upon request, will be required to furnish the Employer with reasonable
proof of the event contemplated in 9.1 above for which the leave is required.
CODES, PROCEDURES, RULES AND REGULATIONS
10.1 The Employee shall conform to all codes, procedures, rules and regulations which have
been or may be promulgated by the Employer from time to time which will include the
Constitution and Canons of the Anglican Church of Southern Africa and Rules of the Diocese.
10.2 The Employer reserves the right to amend any of its codes, procedures, rules and
regulations subject to reasonable notice to the Employee.
10.3 Copies of the Employer’s codes, procedures, rules and regulations shall be accessible to the
Employee at the Employer’s premises on request. The Employee further undertakes that she
would familiarize himself with the documents mentioned herein and that this would entirely be
his responsibility.
CONFIDENTIALITY
11.1 The Employee hereby confirms that she will not at any time, directly or indirectly, use,
publish, disseminate, disclose or otherwise avail himself of, or derive any profit from, whether
for his own benefit or for the benefit of any other party, any confidential information pertaining
to the Employer and its affairs unless she is specifically directed to do so by the Employer.
11.2 The Employee agrees that upon termination of his employment or upon the Employer’s
request at any other time, she will immediately deliver to the Employer all such documents and
other items (including correspondence, notes, minutes, memoranda and/or other documents
and items of whatever nature), including all copies of same, which came into the Employee’s
possession during his employment with the Employer and which in any way concern the
business, finance or affairs of the employer.
BREACH
12.1 The Employee acknowledges that the Employer will suffer financial harm and loss should
the Employee breach any of the undertakings given by him in terms of this agreement.
12.2
Upon a breach by the Employee of any of the undertakings given by him in terms of this
agreement, the Employer shall be entitled to enforce the undertaking or cancel this agreement
and in any event to claim and recover from the Employee any damages arising from such breach
and any costs incurred.
DEDUCTIONS
The Employee hereby agrees that the Employer may deduct from his remuneration any
amount, which the Employee might owe the Employer from time to time. The Employer shall
also be entitled to make any legal deductions from the Employee’s remuneration including UIF
and P.A.Y.E. or S.I.T.E, if and where applicable.
GENERAL
14.1 This document constitutes the sole record of the agreement between the parties.
14.2 No party shall be bound by any representation, warranty, promise or the like not recorded
herein.
14.3 No addition to, variation, or agreed cancellation of this agreement shall be of any force or
effect unless in writing and signed by or on behalf of the parties.
14.4 The Employer and the Employee shall, on at least a bi-annual basis, review the employee’s
performance and shall, after consensus, use such review as the basis for any remuneration
adjustment
14.5 The terms of this agreement shall be reviewed on at least an annual basis in ________ of
each year.
Signatures
Disciplinary Procedures
Clergy
Laity