Dear Synod Member, Melbourne VIC or by phone ( ) or Yours sincerely,

Transcription

1 Rev Dr Mark Lawrence General Secretary 130 Little Collins Street Melbourne VIC 3000 T F mark.lawrence@victas.uca.org.au Dear Synod Member, Please find enclosed the summary of the interim report of the Major Strategic Review (MSR) Team titled Signs of God in Us Fresh Words and Deeds to Synod This report is a summary of the full report that provides details of the context of the MSR, the approach taken by the MSR Team, findings and observations to date, key learnings, emerging themes and directions for the future. This report should be read in conjunction with the full report. A copy of the full report can be accessed electronically through the Synod Meeting 2014 website ( as well as the MSR website: ( A printed version of the full report can be sent to Synod members by writing to: The Major Strategic Review c/o Secretariat 130 Little Collins Street, Melbourne VIC 3000 or by phone ( ) or (MSR@victas.uca.org.au) Yours sincerely, The Major Strategic Review Team: Rev Dr Mark Lawrence (Chair), Dr Jason Talbot (Program Director), Pradiksha Oommen (Program Consultant), Dr Andrew Glenn, Rev Graeme Harrison, Ken Tabart, Leeanne Keam, Rev Nigel Hanscamp, Joy Nunn and Alice Lam

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3 The Uniting Church lives within a world-wide fellowship of Churches in which it will learn to sharpen its understanding of the will and purpose of God by contact with contemporary thought. Within that fellowship the Uniting Church also stands in relation to contemporary societies in ways which will help it to understand its own nature and mission. The Uniting Church thanks God for the continuing witness and service of evangelist, of scholar, of prophet and of martyr. It prays that it may be ready when occasion demands to confess the Lord in fresh words and deeds. (Basis of Union, para 11) C1.1a.2

4 TABLE OF CONTENTS 1. DEFINITIONS 4 2. Background Introduction Historical context Operational Context MSR Project Management Project Context Broad Strategic Framework Team Structure Progress Mission, Ministry & People Setting the Context Ministry, Mission and Vision People Environment Stewardship Context Expressions of Ministry & Mission Context Summary of Directions Process to Completion Timeline for Completion APPENDIX A SYNOD RESOLUTION APPENDIX B MAJOR STRATEGIC REVIEW TERMS OF REFERENCE APPENDIX C GOVERNANACE RELATIONSHIPS DIAGRAM APPENDIX D MSR QUESTIONAIRE 43 C1.1a.3

5 1. DEFINITIONS There are a number of words or phrases used throughout this report that have specific meanings or interpretations. The table below summarises this terminology for ease of reference. Word/ Phrase Assembly BOMAR the Church MSR or the Review MSR Team or the Review Team Resolution or Synod Resolution Senior Leadership Team or SLT Synod Operations SSC or Synod Standing Committee Synod Terms of Reference UAICC UCA Meaning within this report The national council of the Uniting Church in Australia which has responsibility in matters of doctrine, worship, government and discipline Board of Mission and Resourcing Uniting Church in Australia Synod of Victoria and Tasmania The Major Strategic Review which resulted from the Resolution of the May 2013 Synod meeting The team of people tasked by the Synod Standing Committee to undertake the Major Strategic Review The resolution that was passed at the 2013 Synod meeting that relates to the Major Strategic Review A team comprising of the Synod operations executive staff Operational and support services provided to various parts of the Church with locations in Melbourne, Parkville, and Launceston The committee empowered to act on behalf on the Synod in respect on any of the responsibilities of the Synod except such as the Synod may determine, and shall deal with matters referred to it by the Synod (Regulation d, e) The Synod in Council that meets every 18 months. The document developed by the Synod Standing Committee in relation to the Synod Resolution Uniting Aboriginal and Islander Christian Congress Uniting Church in Australia C1.1a.4

6 2. Background 2.1. Introduction This paper is a summary of the full report titled Signs of God in Us Fresh Words and Deeds, an interim report to Synod 2014 of the Major Strategic Review Team. The work of the Major Strategic Review (MSR) is both a spiritual journey of discernment and a management process. It is a prayerful, iterative, reflective, and participative process. A message of Hope Have you not known? Have you not heard? The Lord is the everlasting God, the Creator of the end of the earth. He does not faint or grow weary; his understanding is unsearchable. He gives power to the faint and strengthens the powerless. Even youths will faint and be weary and the young will fall exhausted; but those who wait for the Lord shall renew their strength, they shall mount up with wings like eagles, they shall run and not be weary, they shall walk and not faint. Isaiah 40:28-31 The Review seeks to understand the purpose of the church in the 21 st Century and the changed and changing nature, shape and theologies of the church 37 years on from the adoption of the Basis of Union. The Church did not and does not invent itself. Its origin, present and future are all dependent on Jesus Christ. In the words of Paragraph 4 of the Basis of Union, Christ constitutes rules and renews his disciples as his Church. The Church is the community initiated by God and commissioned to bear witness to Jesus Christ in word and deed. Those words and deeds however, are human actions. We are responsible and accountable to God, to our fellow Christians, and our non-christian neighbours for the faithfulness authenticity and credibility of what we say and what we do in the name of Christ. Such decisions aspire to be faithful human responses to God s initiative. In this way the Basis of Union speaks of times when we may need to confess the Lord in fresh words and deeds that is, in ways that are bold, prophetic and life-giving. This report is a summary of the full report which provides details of the context of the MSR, the approach taken by the Team, findings and observations to date, key learnings, emerging themes and directions for the future. This report should be read in conjunction with the full report Historical context Church leaders and commentators have been noting the changing environment of Australian Society, religious engagement, the shape, size and face of the Church for some years. This has led to strong recommendations that the Church needs to revisit how it expresses the mission of God in the communities where it is called to mission, its worship C1.1a.5

7 and discipleship life, as well as its relationship with its agencies, schools and institutions. The finances of the Uniting Church in Australia Synod of Victoria and Tasmania (otherwise the Church) have been prepared by the Board of Mission and Resourcing (BOMAR) for approval by Synod annually since before BOMAR has sought to reduce growth in expenditure while providing stimulus to innovative congregational and presbytery missional programs over this time. However, the GFC exposed the weakness of the budgetary situation, as it relied on stable markets to enable stable spending. This was followed by two years of cutbacks and freezes on new missional initiatives. However, it quickly became apparent that further cutbacks would stop important service delivery to the Church. In February 2013, the Synod s Senior Leadership Team together with BOMAR put forward two proposals to the Synod Standing Committee: a gradual cutback of essential services a Review of Synod based ministries and operations be performed with the following key questions in mind: o o What is the future of the whole Church within the Synod? What resourcing is needed to make that happen in a sustainable way? The Synod Standing Committee (SSC) approved the second proposal and plans were put in place to commence this from June However, in the wake of the invocation of Special Circumstances, the May 2013 Synod resolved to call for a Major Strategic Review of all the operations and activities of the Synod of Victoria and Tasmania (see Appendix A). Following the Synod resolution the Synod Standing Committee developed a more detailed Terms of Reference document (see Appendix B). The Terms of Reference outlines methodologies, including reporting frameworks and, importantly, the ability of the Standing Committee to progressively consider elements of the Review for endorsement, adoption and/or referral to Synod meeting/s for decision. The terms of reference give the Review the ability to undertake a broad assessment of the whole of the Church, make recommendations on key themes and for those recommendations to be adopted by the Standing Committee (or referred to the Synod) as appropriate Operational Context The Major Strategic Review has been tasked with forming a vision and plan for the Church, as a whole. This is a much broader and more complicated task than it might first appear. The Church is a very diverse place with mission happening in a variety of places and contexts. Whilst the list of these expressions of mission could be extensive, the following provides a summary of the various parts of the Church. Congregations and Presbyteries Uniting Aboriginal and Islander Christian Congress (UAICC) Victoria and Tasmania Uniting AgeWell Schools and colleges (14 Schools and 3 University Colleges) Commission for Mission (CFM) o UnitingCare Victoria & Tasmania C1.1a.6

8 o o SHARE UC Camping Centre for Theology and Ministry (CTM) UCA Funds Management Synod Operations, including the secretariat, finance, IT and property & insurance services, communications & media services, people & culture Not only are the expressions of mission diverse, the systems and processes of governance are also diverse. The UCA s structures reflect the theology of a Church that sought to demonstrate the nature of the inter-relatedness of Christ s body in its governance. The Basis of Union (paragraph 15) details that the governance of the Church is done so by a series of inter-related councils, each of which has its own tasks and responsibilities. However, over the last few decades, this model has devolved to such an extent that a decision on a single issue may pass through the hands of several councils before a resolution (if any) is achieved. Many large projects being done with little or no input from other departments or councils. This causes a drain on resources (people, finance, time) and reflects that many parts of the Church operate as silos, therefore losing the key efficiencies of collaboration. This is also detrimental to the credibility of the Church in the long run, as risks which could be mitigated earlier on are not addressed until the impacts of the risk are being felt. One of the challenges for the Major Strategic Review is to explore ways to bring these two aspects of the Church (mission and governance or stewardship) into greater harmony. Whilst the Church has a missional purpose at its core, it cannot separate itself from the commercial context in which it sits. However, over time there has developed a culture of dividing tasks into secular and sacred within the Church (where mission is spiritual/ sacred and management is unspiritual/ secular), creating silos and a misunderstanding. In order to progress, the Church must find ways to reintegrate what has been divided so that decisions are based on both a theological and commercial understanding. The diagram in Appendix C demonstrates the governance relationships between the Synod and its various bodies. There are numerous levels of governance, networking, oversight and delegated oversight. Each entity has a number of sub units, and the lines of reporting are not always clear. This has led to: Duplication of tasks; Areas that are linked may not share critical information (on the assumption that another area has already done so); and C1.1a.7

9 3. MSR Project Management 3.1. Project Context Major Strategic Review. Setting the genre (the overall vision), the main characters (what are the broad categories of expression of mission) and key themes/ plot lines (how should mission be resourced and governed broadly). One of the challenges for the Major Strategic Review Team is to foster an environment that brings together the best of our practices of prayerful discernment and strategic planning in a collaborative venture. Through this amalgamation of process the Church can address the issues underpinning the Resolution, whilst remaining true to its purpose. Congregation Presbytery Institution Setting/ scene Local characters Detailed narrative and plot lines The story of the Church is an ongoing and ever changing one. Every day, through the actions of its people, more is added to that story and it reflects the various expressions of mission and work the Church does. The story is currently being told in a multitude of ways by diverse voices across all aspects of the life of the Church. The Major Strategic Review will be a vital link in bringing all those individual, local stories together and to provide guidance and direction for writing the next chapter of the Church in a co-ordinated way. Whilst it is up to both the MSR and the wider Church to contribute to the overall story, each will have different roles to play, as follows: Congregations, Presbyteries, Institutions: Setting the scene (where will mission happen locally), providing supporting or local/lead characters (what additional resources are required for the local mission) and the detailed narrative (how will mission be explored locally); and Major Strategic Review Genre Main characters Key plot lines for Synod C1.1a.8

10 3.2. Broad Strategic Framework Therefore, the MSR Team is undertaking its work through a cyclical process involving: The terms of reference and Synod Resolution require an understanding and proposals to be developed in two broad categories, namely: A vision and plan for the Church in the 21st century; and Options for its ongoing sustainability. However, the process will also be of no value if it does not include and listen to the Church as a whole. The process of developing a vision and plan for the Church must be an iterative one, where contributions are sought from a variety of sources, tested and refined. The Major Strategic Review must be a collaborative journey of listening, discernment and discussion about the Church in the 21 st Century. Listening to a wide variety of voices from across the Church; Collating the information, comments and feedback received; Reflecting on the data, its context, meaning and potential impact on the Church in the 21st Century Discerning what the data means and possible options for the future; and Discussing the findings and options with the wider Church and listening to the feedback. Have you not known? Have you not heard? The Lord is the everlasting God, the Creator of the end of the earth. He does not faint or grow weary; his understanding is unsearchable. He gives power to the faint and strengthens the powerless. Even youths will faint and be weary and the young will fall exhausted; but those who wait for the Lord shall renew their strength, they shall mount up with wings like eagles, they shall run and not be weary, they shall walk and not faint. Isaiah 40:28-31 C1.1a.9

11 Listening 1. Stage 1 Understanding. What is the current position of the Church, what options exist for the future whilst remaining true to God s mission, what models of sustainability are required? Discussing Cycle of Collaboration Collation 2. Stage 2- Preparing for the Journey. Developing a plan for the journey to transition into a 21st century church, developing an environment to support the church and its people on the journey and identifying vulnerabilities to success. 3. Stage 3 Shaping the 21st Century Church. Shaping a 21st century church that is true to the mission of God and the church, whilst having the strength of stewardship to enable it to prosper. This is an ongoing process and must include a continuous review to ensure all undertakings are in line with the overall strategic aim. Discerning Reflection Stage 3 is beyond the scope of the Review, however it will be a natural and necessary outcome of the Review. This report provides an update on the listening the review team has done to date, initial reflections and indicates where the discernment process is leading. The results of this cycle of collaboration must ultimately lead to some definitive conclusions, which the Review Team has been tasked with. To achieve the broad aims outlined above and undertake the journey of transition, the project is structured around three stages: The Review Team is currently working through Stage 1 Understanding, and conscious efforts are being made to not rush this stage. An insufficient level of understanding can lead to an ineffective discernment process which is likely to result in failure. The detailed work being undertaken at this stage is discussed further in the full report (see Section 4.2). C1.1a.10

12 3.3. Team Structure The original team started work in work in mid-january 2014 with a number of additional team members (including the Project Consultant) commencing in March is working closely with the Synod s Communications and Media Services team to address these challenges. A number of consultant reports have also been commissioned to inform and assist the Review processes. The Team meets formally over two days each month to discuss the project, update on findings and plan the upcoming work requirements. There are also less formal meetings in between and frequent communication, alongside the formal consultations with various committees, boards, and councils of the Church. Following some initial changes, the team currently comprises of ten members shown opposite. Further details of the gifts and experiences of the MSR team are available in the full report (see Section 4.3) Progress The initial phases of the project have focussed on gaining a detailed understanding of the environment, legal context and current structure. This has involved significant engagement and consultation with a wide variety of internal and external groups. This has happened through questionnaires, face-to-face meetings and workshops. A broader communications strategy and plan has been developed to identify gaps in the consultation process and ensure there are a range of communication options to suit the diverse nature of the Church. The team From left to right (Back Row): Dr Andrew Glenn, Rev Dr Mark Lawrence (Chair), Rev Graeme Harrison, Ken Tabart, Leeanne Keam, Rev Nigel Hanscamp, Dr Jason Talbot (Program Director). From right to left (Front Row): Alice Lam, Pradiksha Oommen (Program Consultant), Joy Nunn C1.1a.11

13 I pray that our eyes, ears and heart will be open and our lives excited about the possibilities that are there for us, perhaps not within our own comfortable areas but going out to be with others. I pray that the church will regain the respect that it once had and we can only do that by walking beside the needy, the young and all who are living with themselves as central to their lives and not that hidden presence we know Questionnaire response, a prayer for the Church 4. Mission, Ministry & People 4.1. Setting the Context The changing nature and position of church in society has become a consistent experience for most congregations in the Synod. The Major Strategic Review has emerged as a direct result of the issues created by this. The issue has many facets including sustainability of faithful communities, church structures, finances, property and relationships with agencies, schools and institutions. This is why the MSR is tasked first and foremost to focus on vision: To produce a vision of the Church in the future open enough to incorporate many visions and To produce recommendations for plans (theological, relational, organisational and financial) that will enable the Church to realise that vision into the future. The role of the MSR is not to tell the Church what to do, nor, as some have suggested, to facilitate a plan of centralisation of authority into the hands of Synod Operations and thus undermine the interconciliar balance of the UCA. Nor is it merely a rebudgeting exercise of Synod Operations and thus considered irrelevant to congregations. It will indeed impact the deficit laden Mission and Service Budget, but this is a global budget that finances presbyteries, congregational initiatives, theological education, social justice initiatives, Assembly, Synod Operations, and support for C1.1a.12

14 relationships with schools, agencies, and UCA institutions. The renewed vision should incorporate visions from across this breadth of the Church Ministry, Mission and Vision For the Church, ministry, mission and vision are central and essential, to the future direction. Discerning the mission and purpose for the Church will be an iterative process whereby the views and opinions of many about what they have discerned the mission to be are heard, collated and developed in to a form that can be discussed and tested throughout the Church. Whilst this process is still ongoing a number of common words, phrases and themes have been heard in relation to mission. These include: The Church is on a journey to continually seek new and better ways to express God s mission The Church is a voice for those without a voice Love, justice, compassion Acceptance and equality a Basis of Purpose/Mission, may be a useful way to capture the purpose of the Church and guide it through the 21 st Century People The Church discerns and expresses it purpose and God s mission through its people. Yet a common theme that has been heard is that more could be done to revitalise and reconnect people to enable exploration of fresh words and deeds. The Church is a very open and welcoming place with a strong cultural desire to connect with the community and help those in need. Its people express kindness and compassion and are the building blocks of this unique culture. The people and organisations of the Church will derive great strength, support and direction if they can reconnect with others in this wider body. It will also enable them to explore new ways of connecting with community. This includes relationships between local congregations, between congregations and local agencies or schools, and between agencies themselves. The principle of unity through working together, brings a greater sense of belonging and a larger potential within the missions of the church. Openness Help and guidance for people in times of need or those suffering disadvantage Many of these themes and ideas are reflected in the Basis of Union, however there is a need to re-express the purpose of the Church in a fresh, forward looking way. The development of a new document, which honors the Basis of Union, but provides a direction for the future, such as C1.1a.13

15 5. Environment Any review of the Church and vision for the 21 st Century must be mindful of the environmental context (both internal and external) in which it finds itself. The key findings of the MSR team in relation to the Church s environment are (see Section 6.2 of the full report): Society is in a period of rapid change particularly in relation to religious identification. This has resulted in a major change in the profile of the Uniting Church population over the last decade. The National Church Life Survey (NCLS) estimates weekly Uniting Church attendance in 2013 to be about 97,000 nationally and 24,000 in Victoria and Tasmania (including children). involvement nationally will decrease to fewer than 50,000 people by The proportion of Victoria and Tasmania church attendees makes up about 25 per cent of that total, and the expected involvement will be about 12,000 adults. In contrast to the overall trend of congregational decline, the ethnic (multicultural) communities have growing congregations. If it were not for the influx of Christian immigrants, the number of people identifying with Christian churches in Australia would have diminished by 380,000 people between 2001 and 2011 (i.e. a 3% drop in the total Christian population rather than the actual increase by 3%). The impact of internal migration in rural areas has been quite significant. For instance, in North West Victoria (including Horsham and Mildura), the total population fell between 2001 and 2011 by 0.6%. However, those identifying with the Uniting Church fell by 25%. The Church has moved from being the leader of the community to the supporter of the community. It is clear that in times of need the community looks to the church for support (times of community grief, funerals, providing rituals such as the baptism, communion and advocating for social justice causes). In the 1947 census, 22.2 % of the Australian population identified with the predecessors to the Uniting Church. By contrast in the 2011 Census only 5% of the Australian population identified as being part of the Uniting Church. Councils of the Church take large amounts of time and energy and the existing governance systems are heavily reliant on people. These roles are often filled on the basis of time and availability rather than skills and gifts that are required. Whilst there are pockets of good leadership, there is generally a lack of strong and appropriate leadership throughout the Church. This situation is exacerbated by a lack of coordinated and strategic approach to leadership development. The profile of the Australian congregational population has changed extensively over the past decades. Demographic modelling suggests that Uniting Church congregational C1.1a.14

16 The earth is the LORD's, and everything in it, the world, and One of the significant and unique perspectives of the Uniting Church is that of recognition and inclusiveness of indigenous Australians. Whilst there has been some work done in this area through the UAICC in both Victoria and Tasmania, it would appear that more could be done to explore relationships further in this area. all who live in it; for he founded it upon the seas and established it upon the waters. (Psalms 24:1-2 NIV) There is a need to further investigate the Church s use and potential benefits from technology in an increasingly electronically connected society. However, this must be balanced with a recognition that some members of the Church have limited access to some forms of technology. The agency sector providing social services is changing. There are pressures for there to be fewer and larger agencies. In part this is because governments wish to deal with fewer agencies and in part because of perceived economies of scale. This is likely to impact significantly on the large number of social service providers operating under the Uniting Church banner across the two states of the Synod. The ministry of Chaplains is carried out in a range of contexts, and represent the living traditions of the Church. Chaplaincy acts as an interface between the Church and the world offering critical insight into the pastoral and missional theology of the Church. Resourcing and support of chaplaincy will need to be explored further. Rural congregations have undergone significant change in the last two decades. As evidenced by the drop in population and resulting decline in Uniting Church members in rural areas, many congregations are financially unsustainable. The inability to afford traditional forms of ministry, lack of manpower and funds for property maintenance are just some of the struggles that rural congregations face. In May 2014 the MSR Questionnaire (see Appendix D) was distributed through Crosslight, direct mail to congregations, presbyteries, agencies of the church, and via s to ministers and church council secretaries. The Questionnaire was also translated into 4 languages (Mandarin, Korean, Indonesian and Vietnamese). In total, 809 surveys were returned completed. The vast majority (76%) of respondents were aged 61 years and older. Just 7% of the sample were aged 40-60, and 11 responses came from people aged under 40. C1.1a.15

17 The Questionnaire results revealed that there is a diversity of views about the ways in which future growth and vitality in individual congregations might occur. Some key themes identified are summarised below: (i) (ii) (iii) Ministry. The greatest challenge for many people was how to conduct ministry that was relevant and would connect with the people in the community. Two major challenges for ministry were financial (congregations being able to afford a minister) and geographic location (rural congregations struggling to attract paid ministry). Many have felt that in order to move forward there needs to be a change in the way the church, conducts its ministry, explains its theology, and takes the gospel to the people. Leadership & Governance. A majority of the comments focused on having people who could provide leadership such as ministers (ordained), the need for contemporary leadership and leadership that would provide clear directions for the future of the church. A number of people suggested that the church was over-governed and had too much red tape and reporting requirements. Several of the agencies said that they hoped that there would be greater transparency in the governance structures in the future and better integration of the various aspects of the work of the Church. Vision. There was a large number who felt that there was a need for a changed vision that is more relevant to the times. The vision that resounded in most responses to the survey was the desire for a stronger more vibrant and energised church with greater diversity in age-range which is growing in faith. Responses from agencies indicated (iv) (v) their vision was to make a positive difference to the lives of people and society. Resources. The major resources that respondents indicated were required for the future were: o o o People Infrastructure Training Relationships and communication. A number of the agencies noted that the challenge was the current fragmentation of the work of the agencies and the need for a shared vision, a united form of branding, and greater collaboration with each other and with the congregations. There was a sense that greater collaboration would benefit congregations as well as agencies. Genuine interdependence, respect and appreciation for each part of the Church in working for the agreed vision and purpose Quote from a questionnaire response, vision for the Church C1.1a.16

18 6. Stewardship 6.1. Context As well as seeking to understand the Environmental context, the review is also looking at the area of Stewardship. In particular, the resources of the Church, the legal context and governance of those resources. The key findings of the MSR in relation to Stewardship are (see Section 7.2 of the full report): Governance Some have argued that concerns for good governance are an intrusion from the corporate world into the Church. Alternatively it can be argued that interpretation of scripture and the foundational documents of the Uniting Church like the Basis of Union are consistent with principles of good governance such as Stewardship, right relationships, wise decision making and humble discernment (see Appendix D) Electoral processes usually determine membership of various councils, within congregations, presbyteries, Synods or the Assembly; sometimes with additional requirements overlaid that ensure representation based on gender, age or other criteria. The information made available to the council members is often inadequate to make an informed choice. In any case there is usually little or no consideration to the gifts and graces that members might bring to the work of the committee. As a result committees often do not have the skills needed to make some of the complex decisions required in the current environment. There has been a lack of accountability around some critical decisions. For example, no individual or group has been held accountable for the failure of Acacia College, despite the significant loss suffered by the Church. This is partly because structures do not clearly identify who is responsible and therefore accountable. (A starting point has been introduced with the property-development governance structures.) Multiple committees can have overlapping or duplicated responsibilities however, some areas of responsibility fall between the gaps and are addressed by no group. Similarly, the rapid turnover in the membership of some Synod and Assembly committees and limited induction means that individuals have insufficient time to understand their role and responsibilities before their period of tenure is ended. Failures of governance have significant consequences for the Church and its mission, including: o o o A loss of confidence and trust amongst the membership of the wider church in the leadership of the Synods or Assembly; A further reduction in the sense of belonging to one body, and a growth in the sense of congregational individualism; Significant reputational damage to the Uniting Church within the broader community including government departments and, potentially, loss of funding for social service agencies; C1.1a.17

19 o Very significant financial losses that have required extreme measures and reduced our capacity to finance future missional activities; and Not only is there a need for improved governance to protect the Church from such failures, there is also a growing community expectation of best practice in relation to governance of religious institutions. There is also an argument to suggest that the Church requires a different approach for the sake of the gospel. The Church needs to consider if placing people in situations for which they have little experience or knowledge is loving, or kind, or treating them with the respect that the gospel requires. There is compelling evidence that the current systems of governance are not serving the Church well. It would be beneficial to re-consider the approach taken to governance and explore modification to existing structures to take account of the failures of the recent past and so avoid the folly of repeating them (Proverbs 26:11) Legal a statutory corporation to hold its assets by looking to the Parliament in each State and the Legislative Assembly in each Territory to approve an Act or Ordinance (hereinafter referred to as an Act). Section 12 of the Act constituted a statutory corporation, the Uniting Church in Australia Property Trust (Victoria). The land from which Uniting Church Schools and Colleges operate and other property which has in its history been gifted to the Church for a particular purpose which is held in the name of the respective Property Trust is deemed to be separately held on trust for the school, college or party specifically identified in the gift. As the only legally recognised body of the Church (for the councils of the Church and unincorporated institutions of the Church), all litigation by or against the Church must be by or against the relevant Property Trust The legal risks of the Church include o If there is a breach of the law (non-compliance in OH&S, Privacy, Tax etc.) at any level of the Church (congregation, agency or unincorporated school) the Property Trust could be ultimately held responsible and hence affect the Church more widely. The Uniting Church in Australia, Synod of Victoria and Tasmania is an unincorporated entity with no formal legal status and is a coming together of a group of people for a mutual goal or purpose. Being an unincorporated entity causes difficulties such as an ability to enter into a contract or become registered as the owner of property In light of the property framework employed by the predecessors of the Uniting Church in Australia, the Church in Australia created o o Incorporated entities are responsible for their own activities however reputational risk could still be high. Liability for conduct well outside the ability of the Church to control could be imposed by statute or regulation. Whilst nothing has been mandated as yet, changing legislative requirements may result in the need for the Church to incorporate more widely. C1.1a.18

20 Some of the strengths and weaknesses of the existing UCA legal and governance framework are listed in Table 1 following: Three of the resources that are core to the whole of the Church (yet are not always well utilised) are: Strengths As the Church has its own Act of Weaknesses The Act is difficult to change, o People. The Church is made up of a very diverse group of people with a broad range of gifts, graces and experiences, through which it expresses God s mission and pursues its purpose, yet is an area that is not always appropriately utilized Parliament it releases the Church and Property Trust from complying with ASIC rules and similar provisions The governance framework based on the Basis of Union enables greater participation in decision making from members of the Church rather than an imposition by a top down hierarchical model Structures do not reflect requirements of the 21st Century Greater participation in decision making leads to slowed decision making and process debate Minimal accountability for poor decisions Difficulty in enforcing secular law o o Social Capital. The name of the Uniting Church is well recognized and respected in the wider community. However it is not consistently used and the community at large (and many within the Church) are unaware of the breadth of good work being undertaken as a result. Property. Being a physical asset that is part of many expressions of mission and ministry, many people consider property to be the major asset of the Church. However, property is not always well used and can be an inhibitor to expressions of mission Resources The Church has many resources of which its people are required to be good stewards, ranging from very missionally and financially significant whole of Church resources, through to those that are critical to mission at a more local level; these also come in a variety of forms from tangible through to the intangible. That it will grow and be relevant to the local community and that the people of both church and community will grow together and enjoy a good relationship Prayer for the Church: Questionnaire response C1.1a.19

21 7. Expressions of Ministry & Mission 7.1. Context The Uniting Church in Australia has a long history of being at mission in communities through delivery of social services. Its theology and foundational documents stress the importance of social justice. Expressions of Mission and Ministry is the third core stream being explored in order to understand the current and future status of mission within the Synod of Victoria and Tasmania The work of the MSR team has involved an initial analysis of the major expressions of Mission and Ministry including a high level review of financial trends and understanding of current missional context. With the changing nature of church, expressions of faith and the legal environment, it is timely to consider how these expressions of mission and ministry stand in relation to contemporary society. The key findings of the MSR team in relation to expressions of Mission and Ministry are: UnitingCare Agencies The Synod has a unit under the Commission for Mission called UnitingCare Victoria and Tasmania whose primary function is to provide advice, support, coordination and networking opportunities. There are a total of 28 UnitingCare agencies, ranging in size from larger units such as Connections, Lentara, Wesley Mission and Prahran Mission, whilst others are cottage industry size. He has showed you, O man, what is good. And what does the LORD require of you? To act justly and to love mercy and to walk humbly with your God. (Micah 6:8 NIV) C1.1a.20

22 The strengths and weaknesses in the Uniting Care agencies are listed in table 2: Strengths Service delivery area significant number of locations across metropolitan and regional Victoria and Tasmania Service Provision UnitingCare provides a range of services such as Aged care, early childhood support (kindergartens), mental health, income protection etc. Cost saving through beneficial use of property Large volunteer base Weaknesses There are 28 agencies which operate under the same UnitingCare banner; however each to a large extent operates in silos and in some cases in local competition with each other. A lack of overall collaboration as one entity could have financial impacts and therefore the agency s ability to maintain local service delivery. Multiple agency model may not be in keeping with Government and society s requirements UnitingCare agencies are not for profit organisations, and therefore are not driven by a need to achieve significant financial surpluses. There are considerable property assets that the agencies possess. However, these are restricted to agency use due to PBI concessions and tax exemptions, meaning that any surplus income is only available for agency purposes (or to share with an agency of similar purpose) Uniting AgeWell Uniting AgeWell has successfully drawn various agencies together to achieve common quality standards, efficient Synod-wide management, human resources, finance and infrastructure development. Uniting AgeWell sits within the top 5% of residential care package providers in Victoria and is the top aged care provider in Tasmania, based on the residential places, community packages and housing units offered. The strengths and weaknesses in Uniting AgeWell are listed in table 3: Strengths Market Shared Uniting AgeWell is a leading not-for profit provider of aged care services in Victoria and Tasmania Service Provision The organisation provides a range of services including residential aged care, independent living accommodation, community day programs and community aged care packages Governance Skilled based board with each board member undergoing governance training prior to appointment Financial Position - the operating revenue of Uniting AgeWell has improved by 4% due to higher government subsidies, client retentions and donations received Challenges The current governance structures of the Church are not conducive to operating in a government funded environment which requires agencies to be nimble and able to react quickly. Another challenge is Uniting AgeWell s ability maintain standards and keep pace with the market expectations and government standards. C1.1a.21

23 Similar to the UnitingCare agencies, Uniting AgeWell does not have a profit maximization motive, and the issues of PBI status and tax exemptions also currently limit the ability of Uniting AgeWell to be seen as a contributory source to financial sustainability of the Church Uniting Church Schools Within the Synod of Victoria and Tasmania there are 14 schools, and 3 university colleges; of the schools ten are separately incorporated (i.e. as companies limited by guarantee) and therefore regulated by the Corporations Act. All schools associated with the Uniting Church have their own Board of Governance, regardless of the legal entity status, and are obligated to comply with all relevant State and Federal regulations and legislation relating to educational institutions. The Church supports each school with chaplaincy and in some cases a presence on the school board. Their Constitutions provide a relationship to Synod and so a liability to oversight and support Whilst the schools (as a group) operate from significant property assets, generally the respective (specific individual) Property Trusts holds the land on which the school sits in trust for the Schools. It is essential that there is a clear understanding of the legal issues associated with incorporation of schools, and the relationship between the Church and its schools in the 21st Century. A key component of the further exploration required in relation to schools is the appropriateness of an ongoing focus on spiritual development and welfare of youth (via chaplaincy, the spiritual nurture of students, initiatives for excursions, collaboration and partnership), through schools Congregations and Presbyteries Within the Church there are eight presbyteries and over 600 congregations located in the metropolitan, regional and rural areas Congregations drive a great desire to missionally support the communities of which they are a part, and remain strong advocates for social justice issues. Many congregations maintain strong partnerships with agencies providing volunteer support as required, others carry out mission through support of local community activities such as tennis clubs and dance schools etc. Graph 1: Actual operating surplus/ deficit between 2011 and 2013 and a high level five year forecast trend to 2018 for all congregations and presbyteries within the Church C1.1a.22

24 Graph 1 paints a picture of finances for congregations and presbyteries over the next 5 years on a stand-alone basis. Finances are in deficit and many cannot afford ministry, property maintenance costs or to explore mission in their communities. There is significant property value, however it is underutilised and in a large number of cases, requires significant maintenance. It is estimated that the accumulated maintenance bill could be between $600-$800 million. It has been identified that in the last 5 years, outside of Uniting our future, over $70 million of property has been sold to finance: o o the daily functioning of congregations, presbyteries and Synod operations, fund ministry shortfall, and; o address the significant building maintenance and refurbishment requirements of congregations. Congregations and presbyteries are core to mission and ways to support them and improve sustainability are required. There is also a need to recognise that they represent a smaller part of the Church than at Union Synod Operations Synod operations provide the Synod of Victoria and Tasmania with various support functions such as the Secretariat, IT services, Finance and Administration, Centre for Theology and Ministry (CTM), Commission for Mission (CFM) etc. The Synod office is located in Melbourne (Little Collins Street and CTM at Parkville), and also has a smaller office in Launceston. Synod operations is tasked with ensuring that the daily operations of the entities within the bounds of the Synod function. It also provides administrative and operational support to all parts of the Synod where necessary. Funding for Synod operations is derived through Mission and Service Giving, income from investments, grants from UCA Funds Management, government funding and grants, fees and levies, income via donations, gifts and bequests. Whilst there has been a focus on improving efficiencies in the past, further improvements may be possible. There are difficulties in collating and maintaining consistent Church wide information, such as financial data, which leads to difficulties in maintaining appropriate oversight. A more thorough review may indicate significant opportunities to improve overall operations, increase efficiencies and may result in additional ongoing cost savings. However this may require an upfront investment in infrastructure. A further exploration of Synod operations is required to identify opportunities for operating efficiencies and cost savings to be maximized. Graph 2: Actual operating surplus/ deficit between 2011 and 2013 and a high level five year forecast trend to 2018 for Synod Operations C1.1a.23

25 As noticeable from Graph 2, the operating deficit of Synod operations has worsened since 2012 and is forecasted to exceed $6 million by 2018 on a stand-alone basis. This is propounded with the reality that no new sources of income to fund the Synod operations have been investigated/ adopted. It is imperative that steps are taken to mitigate this. Graph 3 Actual operating surplus/ deficit between 2011 and 2013 and a high level five year forecast trend to 2018 of Synod Unincorporated entities Graph 3 identifies that overall the operating deficit of all unincorporated Synod entities (this includes Synod Operations, agencies and schools) has increased since 2013, and is forecasted to reach $30M by It is imperative that new revenue sources are explored and strategic considerations be made around the next steps for suitable financial models, to ensure the sustainability of the Synod. 8. Summary of Directions The Major Strategic Review Team has listened to the stories of lives of faith; we have heard a rich tapestry of life, death and resurrection. There are some great people in our Church and its impact in the life of the wider Australian community is enormous. There is much to be thankful for. It is also true that as a Church we have some serious issues to address, but the future of the Uniting Church will not come from changes to structure or organisational arrangements alone. The future will come from the discernment of how and where we might follow the Spirit of God. This is both a spiritual journey of discernment and a management process. This journey and the changes that we make will, come from the heart and will engage the head as necessary. Nothing can change unless the heart changes. Jesus asked people to change, for their hearts to embrace love, to live life abundantly. Communities of faith thrive not on the back of their capacity to think, but on the shoulders of their capacity to love, to be the embodiment of the gospel (To what shall I compare this generation? A sermon on Matthew 11 by Dr. Andrew Glenn, 6 July 2014). As discussed in other sections of this report, the work conducted to date has provided a range of future directions to be explored. These are summarised in the table below: C1.1a.24