Canons of the Episcopal Diocese of New Jersey:
Part II

 CANON 13

Trustees of Diocesan Trust Funds

SECTION 1.  One board of six trustees consisting of the Bishop and five lay persons elected by Diocesan Convention shall serve as trustees of six trust funds of the Diocese.  The corporate titles of these trust funds are:  The Trustees of the Episcopal Fund of the Diocese of New Jersey; The Trustees of the Aged and Infirm Clergy Fund of the Diocese of New Jersey; The Trustees of the Missionary Funds of the Diocese of New Jersey; The Trustees of Church Property of the Diocese of New Jersey; The Trustees of the Widows, Widowers, and Orphans of Clergy Fund of the Diocese of New Jersey; and The Trustees of the Venture in Mission Endowment Fund of the Diocese of New Jersey.

SECTION 2.  Lay trustees shall at all times be communicants in good standing of a Parish, Mission, or other congregation of the Diocese of New Jersey.  One lay trustee shall be elected at each annual Convention to serve for a five-year term.  No trustee elected by the Convention for a full five-year term shall be eligible for reelection.

SECTION 3.  Vacancies among the elected trustees created by death, resignation, removal, incapacity, or removal from the Diocese may be filled by the remaining trustees until the next annual meeting of the Convention, when a trustee shall be elected by the Convention to fill the unexpired term.  Any elected trustees deemed negligent of their duties or unqualified to hold office may be removed by a vote of three elected trustees, the Bishop recommending or concurring.

SECTION 4.  The Bishop shall be chair of the Board of Trustees.  The Treasurer of the Diocese shall serve as treasurer of the funds named above.

The Board of Trustees shall meet at least once yearly, shall keep a minute book which shall clearly delineate their acts with respect to each of the said funds, and all their acts shall be entered as soon as adopted.  These books, their books of account, and their securities, shall always be subject to inspection by the Bishop, the members of the Standing Committee and the members of the Finance and Budget Committee.  Four trustees shall be a quorum, all having been cited to meet, and a majority of the quorum, duly convened, shall be competent to act.

No investment or reinvestment decision shall be executed unless approved at a duly convened meeting or approved in writing by a majority of the trustees, all of whom shall have been notified of the proposed action.

The disbursement of income and the disposition of property held in trust shall be subject to the conditions of the trust, or as directed by Canon or by resolution of the Convention.

SECTION 5.  The trustees shall present to each annual meeting of the Convention separate reports of the various trusts under their control.  These reports shall contain a detailed statement of the names and properties in each fund, with all additions and changes therein, including appropriations made therefrom.

The Trustees of the Missionary Funds of the Diocese of New Jersey

SECTION 6.  The income of the Missionary Funds, where the conditions of the trust do not conflict, shall be paid to the Treasurer of the Diocese, to be applied to Missionary purposes.  The income of funds that are subject to conditions shall be applied only according to the tenor of those conditions.

The Trustees of the Aged and Infirm Clergy Fund of the Diocese of New Jersey

SECTION 7.  It shall be the duty of the Rector or Minister-in-Charge of every Parish or Mission to take an annual offering for the Fund for the Aged and Infirm Clergy.

The Trustees of the Fund shall report to the Bishop and to the Standing Committee at its December meeting in each year the amount available, or estimated to become available, for the following fiscal year.

Appropriations shall be made at the discretion of the Standing Committee upon the written recommendations of the Ecclesiastical Authority.  Such appropriations shall be paid by the Trustees upon the order of the Standing Committee certified by its Secretary.  In cases of extraordinary and urgent need, arising during the recess of the Standing Committee, the Secretary of the Committee is, on the written request of the Ecclesiastical Authority, authorized to issue an interim order for temporary relief, which shall be paid by the Trustees upon receipt of such order.  Clergy must be canonically resident in the Diocese to be eligible for the benefits of the Fund.  

The Trustees of the Widows, Widowers, and Orphans of Clergy Fund of the Diocese of New Jersey

SECTION 8.  It shall be the duty of the Rector or Minister-in-Charge of every Parish or Mission to take an annual offering for the Fund for the Relief of Widows, Widowers, and Orphans of Clergy in the Diocese.

The Trustees of the Fund shall report to the Bishop and to the Standing Committee at its December meeting in each year the amount available, or estimated to become available, for the following fiscal year.

Appropriation shall be made at the discretion of the Standing Committee upon the written recommendations for the Ecclesiastical Authority.  Such appropriations shall be paid by the Trustees upon the order of the Standing Committee certified by its Secretary.

In case of extraordinary and urgent need, arising during the recess of the Standing Committee, the Secretary of the Committee is, on the written request of the Ecclesiastical Authority, authorized to issue an interim order for temporary relief, which shall be paid by the Trustees upon receipt of such order.  The families of clergy who are canonically resident in the Diocese are eligible to the benefits of the Fund.

Upon the death of any member of the clergy canonically resident in the Diocese, the Trustees shall pay, if the Ecclesiastical Authority shall so order it in writing, a sum not exceeding one thousand dollars to the widow, widower or orphans of said member of the clergy as a death benefit.

The Trustees of Church Property of the Diocese of New Jersey

SECTION 9.  The Trustees of Church Property shall have power to receive, hold, and dispose of all funds and other property that may be given, conveyed, or otherwise transferred to it in trust for any religious, charitable, or educational purpose connected with The Episcopal Church in the Diocese of New Jersey or with any congregation in the Diocese, to be held in trust for such Diocese or for such congregation.  The disbursement of income and the disposition of property held in trust by the Trustees of Church Property shall be subject to the conditions of the trust or, if not so specified, as directed by canon or as directed by resolution of the Convention.  If no express trust is contained in the instrument vesting title or possession in the Trustees of Church Property, or if the Trustees of Church Property shall become the owner of property of a dissolved Parish or other church property, then they shall hold and dispose of such property as may be directed by resolution of the Convention.

The Trustees of the Episcopal Fund of the Diocese of New Jersey

SECTION 10.  The income of trust funds vested in The Trustees of the Episcopal Fund, where the conditions of the trust do not otherwise provide, shall be paid to the Treasurer of the Diocese to be applied to the support of the episcopate through the diocesan budget.

The Trustees of the Venture in Mission Endowment Fund of the Diocese of New Jersey

SECTION 11.  The Trustees of the Venture in Mission Endowment Fund shall receive and invest or reinvest the funds of this trust according to the standards of fiduciary management and in accordance with such requirements as may be set forth in the Constitution and Canons of the Episcopal Church and the Diocese of New Jersey.

After the final allocation of Venture in Mission Funds by the Convention in November 1984, the Principal of this Fund shall be inviolate and shall constitute a permanent endowment of this Diocese.

The income of this Fund shall be delivered periodically to the members of the Diocesan Council to be administered by them in a manner approved and directed by the Convention in support of the programs set forth in the Final Report of the Commission on Planning and Development and approved by the Convention on November 8, 1980, or such programs as may hereafter be authorized by the Convention for purposes consistent with the objectives set forth therein.  Each year the Diocesan Council shall present to the Convention for approval a Venture in Mission Endowment Fund Budget for the current year to support the said programs.

The Trustees shall retain the right to receive additional funds on account of principal at any time, and may, with the concurrence of the members of the Diocesan Council, convert to principal any portion of income not currently required for purposes of the Trust.

Sale and Conveyance of Title to Real Estate

SECTION 12.  Where the title to real estate of a duly incorporated Parish is vested in the Trustees of Church Property or the Trustees of the Episcopal Fund, such Parish may apply, in writing, to the Trustees of Church Property or the Trustees of the Episcopal Fund, as the case may be, to convey the title to such property to such corporation.  Upon receipt of any such applications, and after due consideration, the Trustees of Church Property, or the Trustees of the Episcopal Fund, as the case may be, by a majority vote of such Trustees, is hereby authorized to convey the same; provided, however, that the application for such conveyance of title shall be made by the Parish corporation; and provided, further, that no conveyance shall be made without the written consent of the Bishop and a majority of the Standing Committee.

Where the title to real estate of a Mission is held by the Trustees of Church Property or the Trustees of the Episcopal Fund, the Trustees of Church Property or the Trustees of the Episcopal Fund, as the case may be, by a majority vote of such Trustees, is hereby authorized to sell and convey the same upon request of the members of the Diocesan Council, and the proceeds of such sale shall be disposed of at the direction of the members of the Diocesan Council.

Missionary Fund

SECTION 6. The income of the Missionary Funds, where the conditions of the trust do not conflict, shall be paid to the Treasurer of the Diocesan Council, to be applied to Missionary purposes. The income of Funds that are subject to conditions shall be applied only according to the tenor of those conditions.

Fund of the Aged or Infirm Clergy

SECTION 7. It shall be the duty of the Rector or Minister-in-Charge of every Parish or Mission to take an annual offering for the Fund for the Aged or Infirm Clergy.

The Trustees of the Fund shall report to the Bishop and to the Standing Committee at its December meeting in each year the amount available, or estimated to become available, for the following fiscal year.

Appropriations shall be made at the discretion of the Standing Committee upon the written recommendations of the Ecclesiastical Authority. Such appropriations shall be paid by the Trustees upon the order of the Standing Committee certified by its Secretary. In cases of extraordinary and urgent need, arising during the recess of the Standing Committee, the Secretary of the Committee is, on the written request of the Ecclesiastical Authority, authorized to issue an interim order for temporary relief, which shall be paid by the Trustees upon receipt of such order. Clergy must be canonically resident in the Diocese to be eligible for the benefits of the Fund.

Relief of Widows, Widowers, and Orphans of Clergy

SECTION 8. It shall be the duty of the Rector or Minister-in-Charge of every Parish or Mission to take an annual offering for the Fund for the Relief of Widows, Widowers and Orphans of Clergy in the Diocese.

The Trustees of the Fund shall report to the Bishop and to the Standing Committee at its December meeting in each year the amount available, or estimated to become available, for the following fiscal year.

Appropriation shall be made at the discretion of the Standing Committee upon the written recommendations for the Ecclesiastical Authority. Such appropriations shall be paid by the Trustees upon the order of the Standing Committee certified by its Secretary.

In case of extraordinary and urgent need, arising during the recess of the Standing Committee, the Secretary of the Committee is, on the written request of the Ecclesiastical Authority, authorized to issue an interim order for temporary relief, which shall be paid by the Trustees upon receipt of such order. The families of clergy who are canonically resident in the Diocese are eligible to the benefits of the Fund.

Upon the death of any member of the clergy canonically resident in the Diocese, the Trustees shall pay, if the Ecclesiastical Authority shall so order it in writing, a sum not exceeding one thousand dollars to the widow, widower or orphans of said member of the clergy as a death benefit.

Trustees of Church Property

Trustees of the Episcopal Fund

SECTION 9. Where the title to real estate of a duly incorporated parish is vested in the Trustees of Church Property or the Trustees of Church Property or the Trustees of the Episcopal Fund, such parish may apply, in writing, to the Trustees of Church Property or the Trustees of the Episcopal Fund, as the case may be, to convey the title to such property to such corporation. Upon receipt of any such applications, and after due consideration, the Trustees of Church Property, or the Trustees of the Episcopal Fund, as the case may be, by a majority vote of such Trustees, is hereby authorized to convey the same.

Provided, however, that the application for such conveyance of title shall be made by the parish corporation; and,

Provided, further, that no conveyance shall be made without the written consent of the Bishop and a majority of the Standing Committee.

Where the title to real estate of a duly organized mission, or of an unorganized mission, is held by the Trustees of Church Property or the Trustees of the Episcopal Fund, the Trustees of Church Property or the Trustees of the Episcopal Fund, as the case may be, by a majority vote of such Trustees, is hereby authorized to sell and convey the same upon request of the members of the Diocesan Council, and the proceeds of such sale shall be disposed of at the direction of the members of the Diocesan Council.

The provisions of this Canon shall not apply to property held in trust by the Trustees of Church Property or the Trustees of the Episcopal Fund, under the Last Will and Testament of a deceased donor, under a deed of gift with restrictions or conditions which cannot be modified.

Venture in Mission Endowment Fund

SECTION 10. The Trustees of the Venture in Mission Endowment Fund shall receive and invest or reinvest the funds of this trust according to the standards of Fiduciary management and in accordance with such requirements as may be set forth in the Constitution and Canons of the Episcopal Church and the Diocese of New Jersey.

After the final allocation of Venture in Mission Funds by the Convention in November 1984, the Principal of this Fund shall be inviolate and shall constitute a permanent endowment of this Diocese.

The income of this Fund shall be delivered periodically to the members of the Diocesan Council to be administered by them in a manner approved and directed by the Convention in support of the programs set forth in the Final Report of the Commission on Planning and Development and approved by the Convention on November 8, 1980, or such programs as may hereafter be authorized by the Convention for purposes consistent with the objectives set forth therein.

The Trustees shall retain the right to receive additional funds on account of principal at any time, and may, with the concurrence of the members of the Diocesan Council, convert to principal any portion of income not currently required for purposes of the Trust.

 CANON 14

Diocesan Budget

SECTION 1. There shall be a Budget for the Diocese for each calendar year. The purpose of the Budget is to enable the Diocese to carry on ministries, provide support to the Diocesan Congregations, meet its obligation to The Episcopal Church, and finance its administration. Each Diocesan Budget shall include a comparison of appropriations with actual prior year expenditures, a comparison of income items with actual income for the prior year, and a narrative explanation for each appropriation.

SECTION 2. At each annual meeting, the Convention shall adopt a Preliminary Diocesan Budget for the ensuing calendar year. In January of that ensuing year, the Diocesan Council may change the Preliminary Diocesan Budget and will adopt a Revised Preliminary Diocesan Budget. The Convention in March of that ensuing year may further modify the Revised Preliminary Diocesan Budget and shall adopt such Budget as the Affirmed Diocesan Budget for the then current calendar year.

SECTION 3. Each Diocesan Congregation’s Fair Share Asking shall be shown in and be a part of the Preliminary Diocesan Budget. The actual Fair Share Pledges for each Diocesan Congregation shall be shown in and be a part of the Revised Preliminary Diocesan Budget and the Affirmed Diocesan Budget.

SECTION 4. Diocesan funds shall be expended through the Chief Financial Officer subject to the supervision of the Diocesan Council. Appropriations not spent during the calendar year, or required as of the end of any year to be spent in the future for outstanding liabilities, shall not be carried over or considered authorized to be spent in a succeeding year, without specific approval of the Diocesan Council.

 CANON 15

The Finance and Budget Committee and the Budget Process

SECTION 1. There shall be a Finance and Budget Committee of the Diocese consisting of the Treasurer, two members appointed annually by the Diocesan Council, at least one of whom is a member of the Council, and nine members elected by Convention. The term of office for elected members shall be three years. There shall be three classes in the nine elected members so that three members are elected in each year. Vacancies among the elected members shall be filled by the Committee until the next annual meeting of the Convention when a member shall be elected by the Convention to fill the unexpired term. Vacancies among the appointed members may be filled by the Diocesan Council. The Chair of the Committee shall be the Treasurer. The Ecclesiastical Authority may designate members of the staff to assist the Committee who may speak at all Committee meetings but shall have no vote.

SECTION 2. The duty of the Finance and Budget Committee shall be to assist the Diocesan Council in all phases of the preparation of the Diocesan Budget. The Committee may also consult with the Audit Committee of the Diocese, the Trustees of the Diocesan Trust Funds, other committees of the Diocese, and such others as it deems appropriate. The duty of the Finance and Budget Committee shall further be to maintain general supervision over the financial affairs of the Diocese in the following ways:

  1. To designate the security to be given by the Chief Financial Officer of the Diocese, and the Treasurers of the Convention and of all Boards, Trusts, Funds and Committees over which the Convention has authority;
  2.  To designate or approve the depositories of the funds, securities, and valuable property in the custody of such Treasurers;
  3.  To secure simplicity, accuracy, and uniformity in the collection, distribution and accounting of all funds and accounts of any diocesan or congregational entities including discretionary accounts and funds;
  4.  To advise the Bishop, officers of the Diocese and the Diocesan Council in financial and business matters;
  5. To designate the persons who are authorized to sign checks or otherwise make withdrawals from all diocesan accounts.

The Finance and Budget Committee shall at all times comply with the provisions of Title I, Canon 7, Sections 1 and 2 of the Canons of the Episcopal Church.

SECTION 3. Each Diocesan Congregation shall identify its rector or vicar and the treasurer of that Congregation (“Identified Representatives”) to the Chief Financial Officer of the Diocese. Whenever required under the Canons, or by operating procedures, mailings shall be sent to each Identified Representative.

SECTION 4. The Preliminary Diocesan Budget shall be established pursuant to the rules in subsections (a) through (d) below:

(a) Each January, the Finance and Budget Committee shall prepare and present to the Council a draft of the Preliminary Diocesan Budget for the ensuing year. The Preliminary Diocesan Budget shall include the Fair Share Asking established under Canon 16, Section 1(a) and (b) for each congregation.

(b) The Diocesan Council, taking into consideration all information then available, shall adopt a proposed Preliminary Diocesan Budget for the ensuing year in which the appropriations are equal to the anticipated Fair Share Pledges and other sources of revenue which may be applied to appropriations. A copy of the proposed Preliminary Diocesan Budget for the ensuing year shall be mailed to each member of the Convention. In the materials provided to the members of Convention the Diocese shall provide a balance sheet, which shows the assets and liabilities of the Diocese as of both the beginning and the end of the most recent calendar year. The amount of cash and investment type assets and the fair market value of investments or reinvestments held by each fund, trust or account shall be disclosed.

(c) The Convention shall consider the proposed Preliminary Diocesan Budget, make whatever changes it deems appropriate, and adopt a Preliminary Diocesan Budget for the ensuing year. A copy of the Preliminary Diocesan Budget for the ensuing year adopted by the Convention shall be mailed to each Identified Representative.

(d) A copy of the audited diocesan financial statements for the calendar year ended prior to the Convention and the related management letter prepared by the independent public accountant engaged by the Diocese shall be sent to any member of the Convention when available upon that member’s request.

SECTION 5. The Affirmed Diocesan Budget shall be established pursuant to the following rules and administered in accordance with Section 6 of this Canon 15:

(a) In January of each year, the Chief Financial Officer of the Diocese shall provide the Finance and Budget Committee an accounting of the Fair Share Pledges which have been paid by the Diocesan Congregations for the year just completed and the amount of Fair Share Pledges to which Diocesan Congregations have committed for the current year.

(b) The Finance and Budget Committee shall prepare and present to the Council a draft Revised Preliminary Diocesan Budget for the current year. The total amount of the appropriations in the Revised Preliminary Diocesan Budget shall be equal to the total amount of anticipated revenue from all sources.

(c) The Diocesan Council shall make whatever changes it deems appropriate and shall adopt a Revised Preliminary Diocesan Budget for the current year, a copy of which shall be mailed to each member of the Convention.

(d) The Convention shall consider the Revised Preliminary Diocesan Budget and make whatever changes it deems appropriate. The Revised Preliminary Diocesan Budget as adopted by Convention shall be the Affirmed Diocesan Budget for the current year.

(e) A copy of the Affirmed Diocesan Budget for the current year shall be mailed to each Identified Representative.

SECTION 6.

(a) The Diocesan Council shall direct the Chief Financial Officer of the Diocese to make necessary expenditures in each calendar year until the Diocesan Budget for that year has been affirmed. The rest of the year, funds appropriated in accordance with the Affirmed Diocesan Budget for that year shall be expended through the Chief Financial Officer subject to the supervision of the Diocesan Council. The Diocesan Council shall monitor the finances of the Diocese throughout the course of the year to maintain a balanced budget. The total amount expended through the Affirmed Diocesan Budget in any year shall not exceed the total amount of the receipts, unless a deficit either has been approved by a majority vote of all members of the Diocesan Council to permit the Diocese to timely prepare its financial statements or has been authorized by the Convention.

(b) The Chief Financial Officer or the Treasurer shall have the authority to use funds appropriated for one purpose for another purpose specified in a different line item of the Diocesan Budget so long as the aggregate of all expenditures does not exceed the total expenditures provided in such Budget. The exercise of such authority shall be subject to the review and affirmation or disapproval of the Diocesan Council. This provision shall apply to all funds available for paying expenses contemplated in the Budget, including surplus funds, balances carried forward from previous years, reserves carried forward from previous years in support of line items, all funds received during the course of the year from sources enumerated in the Diocesan Budget and all funds received from other sources. The Diocesan Council must approve in advance any expenditure of funds for new ventures or initiatives not contemplated in the Diocesan Budget construction and approval process.

(c) On a date in January set by the Diocesan Council, the Diocesan Council shall adopt and promptly mail to each member of the Convention a Revised Preliminary Diocesan Budget for the current year.

 CANON 16

Fair Share Pledge

SECTION 1. Each Diocesan Congregation shall be asked to support the Diocesan Budget with a Fair Share Pledge, which shall be determined and paid in accordance with the provisions of this Canon.

SECTION 2. By March 1 of each year, each Diocesan Congregation shall submit an annual Parochial Report for the prior year to the Diocese, as required by Canons of The Episcopal Church. Each Diocesan Congregation’s Income Base at any time shall be determined from averaging the income from the Congregation’s annual Parochial Reports for the three most recent years. The Income Base shall include all income received by that Congregation and used to meet the Congregation’s regular operating expenses; however, the Income Base shall not include income received from the Diocese or amounts spent for principal and interest on obligations for real property held for non-investment purposes. If a Congregation has not submitted any year’s Parochial Report to use in making a determination of the Fair Share Asking pursuant to Section 3 of this Canon, that Congregation’s Income Base shall be estimated by the Finance and Budget Committee.

SECTION 3. By October 1 of each year, the Chief Financial Officer of the Diocese shall mail to Identified Representatives a report on the Income Base and Fair Share Askings of all Diocesan Congregations for the ensuing year, and will include in that mailing a pledge commitment form to be used by each Diocesan Congregation in submitting its Fair Share Pledge for the following year. For each Congregation, the amount of the Asking will be:

10% of its Income Base, where the Income Base is $149,999 or less; 11% of its Income Base, where the Income Base is more than 149,999 but less than $175,000;
12% of its Income Base, where the Income Base is $175,000 or more but less than $190,000;
13% of its Income Base, where the Income Base is $190,000 or more but less than $210,000;
14% of its Income Base, where the Income Base is $210,000 or more but less than $230,000;
15% of its Income Base, where the Income Base is $230,000 or more but less than $250,000; and
16% of its Income Base, where the Income Base is $250,000 or more.

SECTION 4. No later than December 31, each Diocesan Congregation shall advise the Chief Financial Officer or the Treasurer of the amount of its Fair Share Pledge to which it will be committing for the following year.

SECTION 5. Each Diocesan Congregation shall pay its Fair Share Pledge in accordance with the billing procedure established by the Chief Financial Officer and approved by the Diocesan Council.

SECTION 6. No part of these canons shall be construed to require or permit the imposition of penalties against any congregation that fails to pay all or part of its Fair Share Pledge.

 CANON 17

Stewardship Committee

SECTION 1. There shall be a Diocesan Stewardship Commission consisting of six clergy and six lay members appointed by the Ecclesiastical Authority with the consent of the Diocesan Council.

SECTION 2. The terms of office of the members of the Stewardship Commission shall be for three years of staggered terms from annual Convention to annual Convention. The Ecclesiastical Authority shall designate one member as Chair for a three-year term.

SECTION 3. The duty of the Stewardship Committee shall be to hold up before the Church the responsibility of faithful stewardship of time, talent and treasure in grateful thanksgiving for God’s gifts. To do this, it shall organize training and provide information supporting spiritual growth in being stewards from which giving and cooperation within the Diocese can flow. It will do this with sensitivity to the cultural and linguistic diversity of our Congregations.

  CANON 18

Audit Committee

SECTION 1. The Audit Committee of the Diocese shall consist of six members elected by Convention to serve three -year terms and two members appointed annually by the Diocesan Council, at least one of whom shall be appointed from among its members. There shall be three classes of elected members with two members being elected each year. After an elected member has served for two full consecutive terms, such elected member shall not be eligible for reelection until a year shall have passed. The Chair shall be appointed by the Ecclesiastical Authority from among the elected members. The Chief Financial Officer of the Diocese and other officers of the Diocese may be designated by the Bishop to assist the Audit Committee.

SECTION 2. The duties of the Audit Committee shall be to ensure that the financial management of all diocesan functions is performed in accordance with generally accepted accounting practices in the following ways:

a. To prescribe the methods of accounting and record keeping of all such Boards, Trusts, Committees, Treasurers and Financial Officers of the Diocese, with power to summon them or any of them, or their auditors, with their books, records and securities for examination as to the conduct of their offices and the condition of the funds entrusted to them;

b. To gather and review audits from all diocesan churches annually to ensure that fiscal management procedures are acceptable;

c. To appoint auditors, as required under the canon on Accounts, for the audit of all diocesan accounts, funds and trusts and to gather and review the audit reports of all such accounts of the Diocese annually;

d. To designate areas of financial management for internal audit as deemed necessary, and to prescribe the methods for the conduct of such internal audits;

e. To advise the Bishop and other officers of the Diocese in financial and business matters when requested;

f. To ensure that all funds and accounts of any diocesan or congregational entities, including discretionary accounts and funds, are audited annually;

g. To report to the Convention annually the results of any internal and external audits conducted.

SECTION 3. The Audit Committee shall have power to employ counsel subject to the approval of the Ecclesiastical Authority in consultation with the Chancellor.

SECTION 4. The Audit Committee shall at all times comply with the provisions of Title I, Canon 7, Sections 1 and 2 of the Canons of the Episcopal Church.

CANON 19

Diocesan Council

SECTION 1. There shall be a Diocesan Council whose purpose shall be to develop, administer, oversee, coordinate and evaluate the program of the Diocese of New Jersey as committed to it by the Bishop or the Convention of the Diocese, and to maintain general supervision over the budget and the financial affairs of the Diocese.

SECTION 2. The Diocesan Council of the Diocese of New Jersey as incorporated under the laws of the State shall consist of:

a. The following members who shall have a seat, voice and vote:

(1) The Bishop of the Diocese, who shall be President;
(2) The Bishop Coadjutor, if there be one, who shall be a Vice President;
(3) Suffragan Bishops, if such there be, who shall likewise be Vice Presidents;
(4) Nine members to be elected by the Convention at its annual meeting, who shall be clergy canonically resident in the Diocese, of whom three shall be elected each year to serve for three- year terms.
(5) Nine members to be elected by the Convention at its annual meeting, who shall be lay persons who are communicants of a Congregation resident in the Diocese, of whom three shall be elected each year to serve for three-year terms.

Members elected by the Convention for a full term shall not be eligible to succeed themselves. Vacancies among the members elected by the Convention, created by death, resignation, removal, ncapacity, deposition, ordination of a lay member, or removal from the Diocese may be filled by the Council until the next annual meeting of the Convention.

b. The following members who shall have a seat and voice, but shall not be entitled to a vote:

(1) The Dean of Trinity Cathedral if not an elected member;
(2) The Chief Financial Officer of the Diocese;
(3) A Secretary who shall be elected annually by the voting members;
(4) The diocesan executive staff as designated by the Bishop and Diocesan Council;
(5) The President of the Episcopal Church Women of the Diocese of New Jersey, if not an elected member;
(6) The Treasurer of the Diocese, who shall also be Treasurer of the Diocesan Council.

SECTION 3. Eleven of the voting members designated in Section 2, Paragraph a, of this Canon shall be a quorum, and a majority of the quorum, duly convened, shall be competent to act.

SECTION 4. The Council shall organize such Ministries as, in its judgment, may be required for the program of the Diocese committed to them by the Bishop or Convention.

SECTION 5. It shall be the duty of every member to attend meetings of the Diocesan Council. It shall also be the duty of every elected Council member to serve as a member of some other Board or Committee connected with the work of the Council, as the Council shall direct, unless excused from such service by the Council. Members who are unable or unwilling to fulfill their duties may be removed from office by a three -fourths vote of all the Council.

SECTION 6. The Diocesan Council shall have power to employ counsel, subject to the approval of the Ecclesiastical Authority in consultation with the Chancellor.

SECTION 7. The Diocesan Council shall report annually to the Convention on the program and financial affairs of the Diocese, with a detailed financial statement. The Bishop may edit the report for publication in the Journal.

 CANON 20

Loan and Grant Committee

The Bishop shall appoint a Loan and Grant Committee of no fewer than five persons. The Committee shall at all times conduct itself in accordance with procedures adopted with the approval of the Bishop. The Committee shall review all requests for loans from funds under the control of any Board, Ministry of the Diocese or Committee of the Diocese and shall make recommendations thereon to the Bishop and the appropriate lending authority. When specifically requested by the Bishop, the Committee shall review requests for grants from Diocesan funds and shall report its recommendations to the Bishop and the appropriate Board, Ministry or Committee. It shall be the duty of the Committee to keep the churches of the Diocese informed about the availability of loan and grant money from sources within and without the Diocese, to make recommendations for coordinating the various loan and grant funds of the Diocese, to recommend orderly procedures for making application for loans and grants from Diocesan funds, and to recommend ways of increasing the loan and grant funds of the Diocese.

 CANON 21

Venture in Mission Loan Fund, The Capital and Revolving Fund,
and the R. Bowden Shepherd Trust Fund

Venture in Mission Loan Fund

SECTION 1. The officers and members of the Diocesan Council shall be the officers and trustees of The Venture in Mission Loan Fund of the Diocese of New Jersey, a New Jersey Corporation perpetually governed by the Convention of the Church in the Diocese of New Jersey.

The trustees shall hold, manage, invest, reinvest, and otherwise administer funds received through Venture in Mission and such other funds as may from time to time be designated, donated, bequeathed or turned over to its control. The trustees shall provide loans to Parishes, Missions, chapels, or other entities in union with or part of the Diocese of New Jersey and for such other purposes as may be specifically approved by the Diocesan Convention.

The trustees may adopt such by-laws as are approved by Diocesan Convention and shall have such powers as may be granted them by the Constitution, Canons and Laws of the Diocese. The trustees shall administer and manage the Fund subject to said by-laws and such other directions as may be adopted by Diocesan Convention. The management of the corporation may by resolution of Diocesan Convention be transferred to such other entity as the Convention may designate.

The trustees shall fix an interest rate on each loan on an individual basis after hearing recommendations from the Loan and Grant Committee. The rate of interest on any loan shall not exceed 12% per year nor be less than 4% per year unless otherwise specifically ordered by resolution of Convention. The trustees shall make a complete financial accounting of all funds under their control to the Convention annually, including a report of all loans made and the interest rate on each loan.

Capital and Revolving Fund

SECTION 2.The members of the Diocesan Council shall be the trustees of the Capital and Revolving Fund of the Diocese of New Jersey established by resolution of Diocesan Convention in May 1950. The trustees shall hold, manage, invest, reinvest and otherwise administer funds received through the Capital and Revolving Fund Campaign and such other funds as have been and shall be designated, donated, bequeathed or turned over to the Fund. The trustees shall provide grants and interest free loans to Parishes, Missions, chapels or other entities in union with or a part of the Diocese of New Jersey and for such other purposes as may be specifically approved by the Diocesan Convention. The trustees shall administer and manage the Fund subject to such directions and restrictions as may be adopted by Diocesan Convention. No grant shall be made for a sum larger than $25,000 without the approval of the Convention. The management of the Fund may by resolution of the Convention be transferred to such other entity as the Convention may designate. The trustees shall make a complete financial report to the Convention annually.

R. Bowden Shepherd Trust Fund

SECTION 3. The members of the Diocesan Council, being the successors of the Trustees of the Cathedral Foundation, shall be the trustees of a Special Trust Fund established by R. Bowden Shepherd on March 5, 1928, hereafter to be called the R. Bowden Shepherd Trust Fund. In accordance with the terms of the Trust and the terms of the Last Will and Testament of R. Bowden Shepherd, the trustees shall make loans from the principal of the Fund on proper security at 5% interest per year to missions and assisted Parishes of the Diocese and to further extension efforts in the Diocese approved by the Board of Missions and accepted by the Diocesan Council, and the trustees may make grants from the interest accruing on the loans to such projects in the Diocese of New Jersey as may received the approval of the Board of Missions and the Diocesan Council. All grants and loans from the Fund shall be approved by both the Board of Missions and the Diocesan Council.

Investment of Funds’ Balances

SECTION 4. The balances on hand in the three loan funds shall be kept on deposit in one or more interest bearing bank accounts, fully insured by the federal government, or a direct obligation of the federal government, or in any recognized money market funds approved by the Finance and Budget Committee of the Diocese. The interest shall be distributed proportionately among the three loan funds in a manner directed by the trustees and shall be added to and become part of the principal of the several loan funds.

 CANON 22

Treasurer of Convention and Chief Financial Officer of the Diocese

SECTION 1. The Treasurer, elected annually by the Convention, as provided by the Constitution of the Diocese of New Jersey, shall serve as the executive financial overseer of trust funds and other funds for which the Convention is responsible. The Bishop with the concurrence of the Standing Committee may appoint a Chief Financial Officer of the Diocese who shall provide financial services to the Diocesan Council and the Trustees of Diocesan Trust Funds. The Chief Financial Officer’s salary and all allowances for expenses shall be provided for in the Diocesan Budget. The Treasurer and the Chief Financial Officer shall give security as designated by the Finance and Budget Committee for the faithful discharge of their duties.

SECTION 2. The tenure of office of the Treasurer or of the Chief Financial Officer may be ended by action of the Convention. In the interim between meetings of the Convention the tenure of office of the Treasurer or of the Chief Financial Officer may be terminated, by a two-thirds vote of the Standing Committee, the Bishop recommending or concurring.

SECTION 3. The Chief Financial Officer and the Treasurer shall have the authority to invest or reinvest cash balances of diocesan funds for which either of them has responsibility in one or more interest-bearing bank accounts, fully insured by the federal government, or direct obligations of the federal government, or in any recognized money market funds approved by the Finance and Budget Committee of the Diocese.

See also: Constitution Article IV, Sections 3 and 4 – Officers of Convention

See also: Canon 13, Section 4 – Treasurer as Treasurer of Trustees of Diocesan Trust Funds; Canon 39, Section 3 – Treasurer as Treasurer of Christian Knowledge Society

 CANON 23

Administrative Assistance for the Bishop

SECTION 1. The Bishop, with the concurrence of a majority of the Standing Committee, may appoint a suitable person or persons to assist with the administration and ministry of the Diocese. They may be given the titles Archdeacon, Canon to the Ordinary, Administrative Assistant or some other title designated by the Bishop.

SECTION 2. Their responsibilities shall be defined in writing by the Bishop. They shall be directly responsible to the Bishop and shall serve under the Bishop’s direction and control. Their tenure of office may be ended upon six-months notice by the Bishop.

SECTION 3. The tenure of office of the Administrative Assistants will not extend beyond the termination of the jurisdiction of the appointing Bishop; PROVIDED that: (1) When a vacancy occurs in the office of Diocesan Bishop created by the resignation of the Bishop, the Administrative Assistants shall be entitled to at least six months compensation after the date when the resignation is submitted. (2) When a vacancy occurs in the office of Diocesan Bishop created in any way other than resignation of the Bishop, the Administrative Assistants shall be entitled to six months compensation after the date when the vacancy occurs. (3) During a vacancy in the office of Diocesan Bishop the Ecclesiastical Authority with the concurrence of the Standing Committee may continue the services of the Administrative Assistants for all or part of the vacancy. They shall work under the direction and control of the Ecclesiastical Authority.

SECTION 4. The salary, housing, and expense allowance of the Administrative Assistants shall be provided for by the Diocesan Council in the Diocesan Budget.

 CANON 24

Vice Chancellors

The Bishop, after consultation with the Chancellor of the Diocese, with the annual concurrence of the Standing Committee, may appoint at the annual meeting of the Convention one or more Vice Chancellors who shall be communicants of the Church and Attorneys-at-Law of the State of New Jersey. Additional appointments may be made by the Bishop with the concurrence of the Standing Committee to serve until the next annual meeting of Convention. The duties of a Vice Chancellor shall be designated by the Bishop in consultation with the Chancellor. A Vice Chancellor may be removed at any time by order of the Bishop.

See also: Constitution Article VIII — Chancellor

CANON 25

Investment Advisory Committee

The Bishop may appoint an Investment Advisory Committee of not more than five persons. The Committee shall at all times conduct itself in accordance with procedures adopted with the approval of the Bishop. It shall be the duty of the Committee, when requested, to give information and advice concerning the investment or reinvestment of funds to the Bishop, to the various Boards of the Diocese that have authority to invest or reinvest funds, and to the vestries and officers of Diocesan Congregations.

 CANON 26

Legal Representation of Diocesan Entities

Any diocesan entity seeking to engage counsel may do so with the advice and consent of the Bishop and the Chancellor of the Diocese. A diocesan entity not receiving the consent of the Bishop and the Chancellor within 30 days may in any event engage counsel upon the affirmative vote of six members of the Standing Committee.

CANON 27

Board of Missions

SECTION 1. There shall be a Board of Missions to which shall be entrusted under the Bishop, the Missionary work of the Diocese. The Bishop or some person designated by the Bishop shall serve as Chair of the Board. Each convocation shall in their spring meeting elect one clerical member and one lay member at least one of whom will be a vicar or a lay member of a Mission church to serve a three-year term, which shall begin immediately upon election. The elections shall be staggered such that no more than one-third of the membership shall end their terms in a given year. In addition, both the Bishop and Diocesan Council may each appoint two members for three-year terms. In the event of an unexpected vacancy, convocations may elect members for the unexpired terms of convocation and the Bishop or Diocesan Council may appoint members to fill the unexpired terms of their appointments.

(At the first meeting of the Board after the adoption of this canon, the newly-elected members shall draw lots to determine whether they will serve for three, two or one year, respectively, in order that no more than one-third of the Board’s terms should expire in any given year.)

SECTION 2. The Board of Missions shall make recommendations to the Council with respect to financial assistance for the Mission churches of the diocese, make periodic reports to the Council about the ministries of the Mission churches, and perform such other duties as are assigned to them by the Canons.

SECTION 3. No later than September 15 of each year, the Board shall distribute information about and application forms for financial assistance for the ensuing calendar year to all Mission churches of the Diocese that receive such aid and to any other church that requests such information. Applications from the churches shall be submitted by October 15.

The Board shall consider the applications, together with recommendations received from the Bishop and diocesan staff, and information received from the Finance and Budget Committee about the availability of funds for the ensuing calendar year.

No later than December 1 of each year the Board shall prepare and distribute a report consisting of a list showing the assistance approved for churches for the current year, the amount of assistance distributed to each church to date in the current year, a list of recommended allocations for assistance for the ensuing calendar year, and information explaining the Board’s recommendations. Copies of the report shall be distributed to each member of the Council, the Bishop, the Treasurer, the Chief Financial Officer, the Finance and Budget Committee, and to each church that has applied for assistance.

The Council shall take into consideration the report and recommendations of the Board of Missions, the recommendations of the Bishop and the staff, information received from the Finance and Budget Committee about the availability of funds, and any additional information submitted by the applicants, and no later than December 31 shall adopt a budget for the allocation of assistance to Mission churches for the ensuing calendar year. A copy of this budget shall be sent to the Bishop, the Treasurer, the Chief Financial Officer, the Finance and Budget Committee, and to each church that has applied for assistance.

The Finance and Budget Committee and the Council shall prepare the Revised Preliminary Diocesan Budget so that it provides sufficient funding in the line item for Missions to cover all of the appropriations in the budget for the allocation of assistance.

SECTION 4. During the course of the year, additional applications for assistance and applications for an increase in assistance may be made to the Board. The Board shall consider each such application and forward it with a recommendation to the Council and the Finance and Budget Committee. After due consideration of the application, the recommendations of the Board of Missions, the recommendations of the Bishop and the staff, and information received from the Finance and Budget Committee about the availability of funds, the Council may act to add an allocation for new assistance or to increase an existing allocation for assistance.

SECTION 5. The Board of Missions shall conduct an evaluation of the ministries of each Mission church in the Diocese at least once every five years and report their findings to the Bishop and Council. The Board shall also prepare reports and conduct evaluations from time to time as directed by the Council.

CANON 28

Allocation of Bequests and Other Gifts

Section 1.  Legacies and other gifts of money left to the Bishop of the Diocese of New Jersey with no designated purpose shall be deposited in an account named “The Bishop’s Special Account”.  This money may be disbursed at the Bishop Diocesan’s discretion for the work of the Church in the Diocese of New Jersey.  Unless restricted by the donor, both the principal and any income from the account may be expended by the Bishop.  This account shall not be considered a discretionary fund and shall not be subject to the standards set for clergy discretionary funds in the “Manual of Business Methods in Church Affairs.”

All or part of the money in this Special Account may be transferred by the Bishop into one of the Bishop’s Discretionary Fund accounts, in which case such funds shall thereafter be subject to the provisions governing clergy discretionary accounts.  The Bishop shall promptly disclose to the Diocesan Council the amount of each such gift, whether it is being transferred to the Discretionary Fund account or retained in the Special Account, and if it is to be held for a specific purpose, the nature of such purpose.

The receipts and expenditures from this Special Account shall be reported annually to the Convention in a manner determined by the Treasurer of the Diocese in consultation with the Chief Financial Officer of the Diocese and approved by the Finance and Budget Committee and shall be subject to audit.

SECTION 2.  Legacies and other gifts of money left to the Diocese of New Jersey or the Convention of the Diocese of New Jersey with no designated purpose shall be allocated in the following manner:

(a)  Those valued at less than $50,000 shall be deemed to be the property of the Diocesan Council and shall be put to such use or uses as the Council may think appropriate.

(b)  Those valued at $50,000 or more shall be placed by the Diocesan Council under the temporary custody of the Trustees of the Episcopal Fund with authority to invest the same.  The Trustees of the Episcopal Fund shall work with the Ecclesiastical Authority, the Treasurer of the Diocese, the Chief Financial Officer, and the Diocesan Council to develop recommendations regarding the appropriate use of the money, and the Trustees of the Episcopal Fund shall present these recommendations to the Convention.  Final allocation of the funds shall be made by a resolution of the Diocesan Convention.

The Diocesan Council and the Trustees of the Episcopal Fund shall make a detailed annual report to the Convention regarding such funds.

SECTION 3.  Legacies and other gifts of money to the Diocese of New Jersey or the Convention of the Diocese of New Jersey for a specific designated purpose shall be allocated by the Diocesan Council to an existing or new trust to be administered either by the Diocesan Council or by the Trustees of Diocesan Trust Funds.  The Diocesan Council shall make a detailed annual report to the Convention regarding all such allocations.

SECTION 4.  Legacies and other gifts of securities or other personal property to the Bishop, the Convention, or the Diocese shall be allocated pursuant to the foregoing Sections of this Canon.  The person or body responsible for allocating the gift shall promptly sell any securities (other than restricted securities) and allocate the proceeds of sale, or in the case of other personal property shall have discretion to determine whether to hold the property in kind for the designated purpose if any or to sell it and allocate the proceeds of sale.

CANON 29 RESERVED

To Part III