Post by ulyankee on May 12, 2006 21:12:38 GMT
April 8, 2006
Dear Pastors and Leaders,
We hope all is well with you, your family and your ministry. The purpose of this letter is to keep you updated on ministry developments.
First, however, allow us to begin with a quick report from the 16th Annual Campus Harvest USA Conference. Over 1600 young people representing 171 university and college campuses throughout North America attended this event, which took place at King's Park International Church in Raleigh-Durham, North Carolina. There were outstanding testimonies from young people whose lives had been turned around and a real sense of expectation for the greater harvest that will be reaped in the coming months and years. Events like Campus Harvest open a window and allow us to see the passion of youth to live lives that honor God. They remind us what the Kingdom of God really is all about. I am sure you will agree that all of our hard work is worth it for the sake of the generations that are following us!
The following is a summary of the findings and actions of the International Policy Council (IPC) and boards of Every Nation Churches and Every Nation Ministries since the January International Leadership Summit in Palm Springs. It covers:
• The Policy Governance meetings held in March
• The executive compensation review
• The establishment of new Every Nation policies with regard to executive compensation
• Updates on other significant financial matters
JOINT MEETING OF THE IPC AND ENM/ENC BOARDS
We had a productive time in Nashville from March 7-9 when members of the International Policy Council (IPC) and the boards of Every Nation Churches and Every Nation Ministries met together to receive teaching and training from Olan Hendrix on Policy Governance and on leadership in general.
At these meetings, we worked successfully through a number of policy issues, ranging from the overarching objectives of our ministry to specific boundaries on how we interpret discipleship, with some stimulating debate and interaction in the process. It was an important and significant time relationally, with the benefit of valuable voices and perspectives from outside the U.S. to provide a true reflection of the global ministry that we have become. We all felt that it was an excellent continuation of a process that began at Palm Springs - one that will ensure that we have a broad-based and multi-talented team to best represent, oversee and roll out the vision and mission which we all embrace.
EXECUTIVE COMPENSATION REVIEW
On behalf of the board of Every Nation Churches, we write this letter to bring closure to the outstanding issue from our Palm Springs Summit concerning executive compensation. We agreed to address this issue within 60 days of the conclusion of the Summit. In pursuance of this, these finding were first brought to the IPC and boards of both Every Nation Ministries and Every Nation Churches at the Policy Governance training in Nashville in early March. To complete the process, this communique details the board actions regarding compensation practices that were put into effect as of March 9, 2006.
Background
On October 5, 2005, at the first meeting of the new board of Every Nation Churches, the executive director was commissioned to enlist the services of two professional firms to review the past three years of compensation (2003-2005) for the top four executives of our ministry and their wives, namely: Rice and Jody Broocks, Phil and Karen Bonasso, Steve and Deborah Murrell and Jim Laffoon (Cathy receives no income). The two firms selected were Capin Crouse LLP, a respected firm that deals with many of the Evangelical groups who are a part of the ECFA (Evangelical Council for Financial Accountability), and Osteen & Associates, a firm that works more within the Pentecostal/Charismatic churches and ministries.
While the new board is not culpable for past practices, we are responsible to deal appropriately with issues and situations that have been handed off to us. Our intention was that once the reviews were completed, we would then take appropriate action. In particular, we agreed that we would require any excessive compensation to be returned to the ministry as restitution. As you know, we were hoping to give all of this information to you at Palm Springs but unfortunately it took both firms that were hired more time than expected to accurately complete the process.
Results of the Surveys
Although both consulting firms used slightly different presuppositions in their evaluations, both came back with very similar results. The board chose the more conservative of the two reports (Capin Crouse's) upon which to base its actions. This review was primarily concerned with any overcompensation paid by Every Nation Churches, since these are the funds for which our board is directly responsible as part of our fiduciary responsibilities.
It should be noted that our new employment policy states that all ministry sources of income must be processed through Every Nation Churches so that reasonable and prudent salaries will be ensured. However, because this new approach was not the framework at the time, we were unable to judge whether amounts paid to these men from other sources were reasonable or not. (See the following section "New Policy Directions" for more detail on this matter.)
Another important point to bring up is that when wives are paid by a board on which their husbands serve, the whole income of the husband and wife must be taken into consideration. Therefore, we wanted you to know that we included the wives' salaries when determining potentially excessive compensation.
Phil Bonasso
As mentioned in Palm Springs, Phil Bonasso's compensation for 2005 was an aggregate total for both Phil and Karen that was comprised of several streams of income. To further define these income streams, Phil received approximately 60% of his compensation from Every Nation Churches, with the other 40% derived primarily from the two churches in which he was involved and from the various offerings/honorariums he received for speaking in other churches.
Although the Capin Crouse report found that Phil and Karen's combined salary was overpaid by a total of $22,798 over a three-year period, it should be noted that the report stated that Phil could have earned an additional $45,000 over this same period in the position he held if he had an MBA or equivalent corporate experience. In any event, as was stated in Palm Springs, Phil has agreed to repay the above-mentioned amount of $22,798.
Further, it was mentioned in Palm Springs that Phil would repay Every Nation approximately $27,000 for "personal benefit transactions;" which were basically expenses that were charged on his corporate credit card and deemed personal expenses, not ministry. Phil did not have the opportunity to review and explain any of these expenses before we announced the amount of the personal benefit transactions in Palm Springs. In fairness, and before we determine the exact figure he needs to repay, we are allowing him an opportunity to review the receipts in detail.
Further, Karen's salary has been terminated, Phil's other streams of income stopped and his Every Nation Churches salary significantly reduced. As a result of these various changes, the Bonasso's income has effectively been reduced by 66%. His salary and ministry status will be reexamined in August of this year.
Rice Broocks
The compensation paid to Rice and Jody Broocks by Every Nation Churches fell well within the salary limits of the professional survey. However, their total income from all sources has effectively been reduced by more than 30%.
Steve Murrell
The compensation paid to Steve and Deborah Murrell by Every Nation Churches fell well within the salary limits of the professional survey and no action was taken.
Jim Laffoon
The compensation paid to Jim Laffoon by Every Nation Churches fell well within the salary limits of the professional survey and no action was taken.
NEW POLICY DIRECTIONS
We also want to give you an update on how the board of Every Nation Churches has sought to improve our executive compensation practices so that your trust in this regard will never again be an Issue.
First, the International Policy Council has a few overarching policies that apply both broadly and spe¬cifically to executive compensation. The job of our Human Resources Department is to create specific procedures to ensure proper compliance with these board policies.
Here are the relevant IPC polices that have been established:
Policy Title: Global Executive Constraint
The boards of Every Nation organizations shall not cause or allow any practice, activity, decision, or Qrganizational circumstance which is unbiblical, imprudent or in violation of commonly accepted business and professional ethics and practices or in violation of the doctrine or ethical commitments of Every Nation.
Policy Title: Treatment of Staff
With respect to the treatment of paid and volunteer staff, the boards of Every Nation organizations may not cause or allow conditions that are unbiblical, unlawful, unfair, undignified, disorganized, or unclear.
Further, without limiting the scope of the foregoing by this enumeration, the boards of Every Nation organizations shall not:
Operate without written personnel rules which:
1.1 Clarify rules for staff,
1.2 Provide for effective handling of grievances, and
1.3 Protect against wrongful conditions, such as nepotism and grossly preferential treatment for personal reasons, and discrimination on the basis of race, sex, color and national or ethnic origin.
(There are four more sub-points of this policy that have been omitted).
To apply these policies with regard to executive compensation, the Board along with the Human Resources Department enacted the following procedures:
The establishment of an independent Compensation Committee that will determine reasonable salaries for our executives based upon professional surveys that compare similar type organizations. The current committee consists of Russ Austin (Chair), Kevin York, Rachel Ong, Jacob Aranza and Gene Smith. With the exception of Kevin York, who is employed as Every Nation Churches' executive director, none of the committee members are employed by Every Nation Churches or Every Nation Ministries.
2 All sources of ministry income must be accounted for and fit within the above-mentioned salary limits. This procedure was put into practice January 1, 2006. Practically, this means that even honorariums are now processed through Every Nation and, if the cumulative amounts exceed the salary limit established by the Compensation Committee, they will not be paid out.
OTHER FINANCIAL MATTERS
World Partners Program
As has been stated in a previous communication, the World Partners fund and program is now being overseen and managed by a committee led by Sam Hawkins. This committee decides on any and all future investments from this fund, which is totally independent from all other sources of Every Nation finances. A summary of the disbursements for 2005 that were paid out of the World Partners fund on a monthly basis was disclosed at the Palm Springs Summit. As part of the audit preparation, we are currently conducting an analysis on the disbursements from the Morning Star International accounts to missionaries and mission support for the period 2003-2004. As soon as this information is available, we will write to inform you of the status of this fund, together with the findings of our analysis. This report will be followed by a regular disclosure to you of all income and expenses for this fund on a six monthly basis, commencing July 2006.
Financial Reviews and Audit Update
Our accounting firm, Capin Crouse, has completed financial reviews of the 2003 and 2004 fiscal years. Although not as rigorous as a financial audit, these two financial reviews were necessary preparation for this year's financial audit of the 2005 fiscal year. The audit is now in progress, but because of its scope, Capin Crouse estimates a completion date of August 2006. To give you an indication of its complexity, in the MPD program alone there are over 11,000 transactions every month! This crucial evaluation is the next step before we can apply for ECFA (Evangelical Council for Financial Accountability) membership. Once the financial audit is completed, we will establish a regular system of communication for fiscal reporting as required by the ECFA. We thank you for your patience as we fulfill our pledge for greater transparency and accountability.
CONCLUSION
Our sincere hope is that you are encouraged by the changes that have been implemented in our Every Nation movement. Slowly but surely, we are establishing the structure that will allow us to march together into the purposes and plans that God has for us. Thank you for your continued patience and support as we work together to establish a solid foundation that will help us to achieve everything He intends for us. It is a privilege to work together with you and to serve in this great Kingdom endeavor.
Sincerely in Christ,
Steve Murrell - Chair, Every Nation Churches
Kevin York - Executive Director, Every Nation Churches Garry Senna - Chair, Every Nation Ministries
Bert Thomson - Executive Director, Every Nation Ministries
(Note: Steve Murrell recused himself in the matter of the salary compensation report-back, as he was one of the executives reviewed.)
Dear Pastors and Leaders,
We hope all is well with you, your family and your ministry. The purpose of this letter is to keep you updated on ministry developments.
First, however, allow us to begin with a quick report from the 16th Annual Campus Harvest USA Conference. Over 1600 young people representing 171 university and college campuses throughout North America attended this event, which took place at King's Park International Church in Raleigh-Durham, North Carolina. There were outstanding testimonies from young people whose lives had been turned around and a real sense of expectation for the greater harvest that will be reaped in the coming months and years. Events like Campus Harvest open a window and allow us to see the passion of youth to live lives that honor God. They remind us what the Kingdom of God really is all about. I am sure you will agree that all of our hard work is worth it for the sake of the generations that are following us!
The following is a summary of the findings and actions of the International Policy Council (IPC) and boards of Every Nation Churches and Every Nation Ministries since the January International Leadership Summit in Palm Springs. It covers:
• The Policy Governance meetings held in March
• The executive compensation review
• The establishment of new Every Nation policies with regard to executive compensation
• Updates on other significant financial matters
JOINT MEETING OF THE IPC AND ENM/ENC BOARDS
We had a productive time in Nashville from March 7-9 when members of the International Policy Council (IPC) and the boards of Every Nation Churches and Every Nation Ministries met together to receive teaching and training from Olan Hendrix on Policy Governance and on leadership in general.
At these meetings, we worked successfully through a number of policy issues, ranging from the overarching objectives of our ministry to specific boundaries on how we interpret discipleship, with some stimulating debate and interaction in the process. It was an important and significant time relationally, with the benefit of valuable voices and perspectives from outside the U.S. to provide a true reflection of the global ministry that we have become. We all felt that it was an excellent continuation of a process that began at Palm Springs - one that will ensure that we have a broad-based and multi-talented team to best represent, oversee and roll out the vision and mission which we all embrace.
EXECUTIVE COMPENSATION REVIEW
On behalf of the board of Every Nation Churches, we write this letter to bring closure to the outstanding issue from our Palm Springs Summit concerning executive compensation. We agreed to address this issue within 60 days of the conclusion of the Summit. In pursuance of this, these finding were first brought to the IPC and boards of both Every Nation Ministries and Every Nation Churches at the Policy Governance training in Nashville in early March. To complete the process, this communique details the board actions regarding compensation practices that were put into effect as of March 9, 2006.
Background
On October 5, 2005, at the first meeting of the new board of Every Nation Churches, the executive director was commissioned to enlist the services of two professional firms to review the past three years of compensation (2003-2005) for the top four executives of our ministry and their wives, namely: Rice and Jody Broocks, Phil and Karen Bonasso, Steve and Deborah Murrell and Jim Laffoon (Cathy receives no income). The two firms selected were Capin Crouse LLP, a respected firm that deals with many of the Evangelical groups who are a part of the ECFA (Evangelical Council for Financial Accountability), and Osteen & Associates, a firm that works more within the Pentecostal/Charismatic churches and ministries.
While the new board is not culpable for past practices, we are responsible to deal appropriately with issues and situations that have been handed off to us. Our intention was that once the reviews were completed, we would then take appropriate action. In particular, we agreed that we would require any excessive compensation to be returned to the ministry as restitution. As you know, we were hoping to give all of this information to you at Palm Springs but unfortunately it took both firms that were hired more time than expected to accurately complete the process.
Results of the Surveys
Although both consulting firms used slightly different presuppositions in their evaluations, both came back with very similar results. The board chose the more conservative of the two reports (Capin Crouse's) upon which to base its actions. This review was primarily concerned with any overcompensation paid by Every Nation Churches, since these are the funds for which our board is directly responsible as part of our fiduciary responsibilities.
It should be noted that our new employment policy states that all ministry sources of income must be processed through Every Nation Churches so that reasonable and prudent salaries will be ensured. However, because this new approach was not the framework at the time, we were unable to judge whether amounts paid to these men from other sources were reasonable or not. (See the following section "New Policy Directions" for more detail on this matter.)
Another important point to bring up is that when wives are paid by a board on which their husbands serve, the whole income of the husband and wife must be taken into consideration. Therefore, we wanted you to know that we included the wives' salaries when determining potentially excessive compensation.
Phil Bonasso
As mentioned in Palm Springs, Phil Bonasso's compensation for 2005 was an aggregate total for both Phil and Karen that was comprised of several streams of income. To further define these income streams, Phil received approximately 60% of his compensation from Every Nation Churches, with the other 40% derived primarily from the two churches in which he was involved and from the various offerings/honorariums he received for speaking in other churches.
Although the Capin Crouse report found that Phil and Karen's combined salary was overpaid by a total of $22,798 over a three-year period, it should be noted that the report stated that Phil could have earned an additional $45,000 over this same period in the position he held if he had an MBA or equivalent corporate experience. In any event, as was stated in Palm Springs, Phil has agreed to repay the above-mentioned amount of $22,798.
Further, it was mentioned in Palm Springs that Phil would repay Every Nation approximately $27,000 for "personal benefit transactions;" which were basically expenses that were charged on his corporate credit card and deemed personal expenses, not ministry. Phil did not have the opportunity to review and explain any of these expenses before we announced the amount of the personal benefit transactions in Palm Springs. In fairness, and before we determine the exact figure he needs to repay, we are allowing him an opportunity to review the receipts in detail.
Further, Karen's salary has been terminated, Phil's other streams of income stopped and his Every Nation Churches salary significantly reduced. As a result of these various changes, the Bonasso's income has effectively been reduced by 66%. His salary and ministry status will be reexamined in August of this year.
Rice Broocks
The compensation paid to Rice and Jody Broocks by Every Nation Churches fell well within the salary limits of the professional survey. However, their total income from all sources has effectively been reduced by more than 30%.
Steve Murrell
The compensation paid to Steve and Deborah Murrell by Every Nation Churches fell well within the salary limits of the professional survey and no action was taken.
Jim Laffoon
The compensation paid to Jim Laffoon by Every Nation Churches fell well within the salary limits of the professional survey and no action was taken.
NEW POLICY DIRECTIONS
We also want to give you an update on how the board of Every Nation Churches has sought to improve our executive compensation practices so that your trust in this regard will never again be an Issue.
First, the International Policy Council has a few overarching policies that apply both broadly and spe¬cifically to executive compensation. The job of our Human Resources Department is to create specific procedures to ensure proper compliance with these board policies.
Here are the relevant IPC polices that have been established:
Policy Title: Global Executive Constraint
The boards of Every Nation organizations shall not cause or allow any practice, activity, decision, or Qrganizational circumstance which is unbiblical, imprudent or in violation of commonly accepted business and professional ethics and practices or in violation of the doctrine or ethical commitments of Every Nation.
Policy Title: Treatment of Staff
With respect to the treatment of paid and volunteer staff, the boards of Every Nation organizations may not cause or allow conditions that are unbiblical, unlawful, unfair, undignified, disorganized, or unclear.
Further, without limiting the scope of the foregoing by this enumeration, the boards of Every Nation organizations shall not:
Operate without written personnel rules which:
1.1 Clarify rules for staff,
1.2 Provide for effective handling of grievances, and
1.3 Protect against wrongful conditions, such as nepotism and grossly preferential treatment for personal reasons, and discrimination on the basis of race, sex, color and national or ethnic origin.
(There are four more sub-points of this policy that have been omitted).
To apply these policies with regard to executive compensation, the Board along with the Human Resources Department enacted the following procedures:
The establishment of an independent Compensation Committee that will determine reasonable salaries for our executives based upon professional surveys that compare similar type organizations. The current committee consists of Russ Austin (Chair), Kevin York, Rachel Ong, Jacob Aranza and Gene Smith. With the exception of Kevin York, who is employed as Every Nation Churches' executive director, none of the committee members are employed by Every Nation Churches or Every Nation Ministries.
2 All sources of ministry income must be accounted for and fit within the above-mentioned salary limits. This procedure was put into practice January 1, 2006. Practically, this means that even honorariums are now processed through Every Nation and, if the cumulative amounts exceed the salary limit established by the Compensation Committee, they will not be paid out.
OTHER FINANCIAL MATTERS
World Partners Program
As has been stated in a previous communication, the World Partners fund and program is now being overseen and managed by a committee led by Sam Hawkins. This committee decides on any and all future investments from this fund, which is totally independent from all other sources of Every Nation finances. A summary of the disbursements for 2005 that were paid out of the World Partners fund on a monthly basis was disclosed at the Palm Springs Summit. As part of the audit preparation, we are currently conducting an analysis on the disbursements from the Morning Star International accounts to missionaries and mission support for the period 2003-2004. As soon as this information is available, we will write to inform you of the status of this fund, together with the findings of our analysis. This report will be followed by a regular disclosure to you of all income and expenses for this fund on a six monthly basis, commencing July 2006.
Financial Reviews and Audit Update
Our accounting firm, Capin Crouse, has completed financial reviews of the 2003 and 2004 fiscal years. Although not as rigorous as a financial audit, these two financial reviews were necessary preparation for this year's financial audit of the 2005 fiscal year. The audit is now in progress, but because of its scope, Capin Crouse estimates a completion date of August 2006. To give you an indication of its complexity, in the MPD program alone there are over 11,000 transactions every month! This crucial evaluation is the next step before we can apply for ECFA (Evangelical Council for Financial Accountability) membership. Once the financial audit is completed, we will establish a regular system of communication for fiscal reporting as required by the ECFA. We thank you for your patience as we fulfill our pledge for greater transparency and accountability.
CONCLUSION
Our sincere hope is that you are encouraged by the changes that have been implemented in our Every Nation movement. Slowly but surely, we are establishing the structure that will allow us to march together into the purposes and plans that God has for us. Thank you for your continued patience and support as we work together to establish a solid foundation that will help us to achieve everything He intends for us. It is a privilege to work together with you and to serve in this great Kingdom endeavor.
Sincerely in Christ,
Steve Murrell - Chair, Every Nation Churches
Kevin York - Executive Director, Every Nation Churches Garry Senna - Chair, Every Nation Ministries
Bert Thomson - Executive Director, Every Nation Ministries
(Note: Steve Murrell recused himself in the matter of the salary compensation report-back, as he was one of the executives reviewed.)