In a report described as a “balance between the radical and incremental”, the year-long Archbishop’s Strategic Commission on Structure, Funding and Governance has called for the creation of a central investment board.
After analysing the current structure and noting improvements since the GFC, the report identifies key areas for review and provides Synod and Standing Committee with a path for ongoing reform.
The report will be the subject of pre- Synod briefings and some of its proposals could be considered by Synod in October. The establishment of a Central Investment Management Board (CIMB) is a key recommendation, after fieldwork found that although there are able individuals serving on diocesan boards the number of committed, willing Christians with a genuine depth of financial experience is spread too thinly.
The commission believes that because the CIMB would be the sole body making investment decisions, there would not be the need to spread expertise across other boards.
Responding to the investment losses of 2009, the commission “noted that the GAB had borrowed significantly to invest in the stockmarket at the time the GFC so significantly reduced the value of the equities portfolio”. For this reason, the commission is recommending that the CIMB be subject to a borrowing limit approved by Standing Committee.
Observations on the diocese
In setting out its vision, the commission’s report said: “Unlike commercial organisations, the Diocese is not a centrally controlled entity. The parishes are autonomous and to a certain degree resent too much intervention or interference from the centre”.
According to the report, consultations and submissions had shown “historically there has been a low level of trust of the centre which is mitigated by a loyalty to the Archbishop and others in the leadership team”.
The commission thanked those who provided submissions, saying they had highlighted that the number of entities at the centre and the overlap of board membership led to confusion of roles, duplication of tasks and conflicts for volunteers who sit on more than one board. As well, it said the Diocese is widely regarded as not having “lived within its means”.
The beginnings of reform
The final report recognised that there had been significant progress on a number of reforms introduced after the GFC. It noted the Glebe Administration Board (GAB) had been restructured and refreshed after an independent review.
In addition, the Sydney Diocesan Secretariat (SDS) had introduced reforms such as Service Level Agreements and reduced its cost base by 50 per cent. The Endowment of the See (EOS) had also reduced its staff cost by 50 per cent and, the commission said, “had sought to balance its budget in extremely difficult circumstances, which are mostly beyond its control”.
Still, the report said, “a more holistic structural approach is required to address the governance, culture and cost issues”.
Other recommendations propose a strategic plan be developed for St Andrew’s House, governance and controls be reviewed, the establishment of a committee of chairs of major organisations, a survey to clarify SDS role and services and a more fundamental review in the longer term.
Full coverage of the report in the September edition of the Southern Cross, including a diagram of the proposed new Diocesan structure.
