1. The Governing Body is determined to act as a wise steward of dedicated resources and to give priority to the activities that contribute the most to the spiritual welfare of God’s people and to the advancement of the global preaching work. (1 Chron. 29:14-16; Matt. 24:45-47; Luke 16:10-12; Phil. 1:10) Budgeting helps the organization to prioritize spending and to avoid spending more than the brothers are currently able to support. (Prov. 21:5; Luke 14:28; 2 Cor. 8:11, 12) The Treasurer’s Office supports the Governing Body and the branches in preparing the annual budgets, and it processes all Monthly Financial Packages (MFP) and Annual Budget Packages (ABP).

2. Under the direction of the Publishing Committee, the Treasurer’s Office at world headquarters oversees a number of global financial programs, including the Global Assistance Arrangement (GAA), Global Investment Fund (GIF), and the Cash Management Centers (CMC). This office also develops and assesses internal controls to ensure compliance and to avoid fraud or error. The Global Risk Management Desk (GRMD) in the Treasurer’s Office assists with the implementation of GAA policies established by the Publishing Committee, administers insurance-related issues for world headquarters and the branches, and cares for programs designed to promote life safety and to protect the organization’s assets from financial loss.

3. The Treasurer’s Office supports branch Accounting Departments by developing the accounting guidelines in Branch Accounting Department Guidelines and by providing the recommended procedures and training materials on the Treasurer’s Office Library. The Treasurer’s Office also assists branch Accounting Departments by answering technical nonpolicy questions on the Treasurer’s Office Global Help Desk.

4. Oversight: The Branch Committee receives specific direction on financial matters and is responsible for using dedicated resources wisely and within the approved budget. The committee should ensure that all accounting is accurate, that the financial activity of the branch is properly reflected in the accounting records, and that it is compliant with organizational and legal requirements. The Branch Committee should also be aware of the outcome of internal and external audits.

5. The Branch Committee should carefully select the Accounting Department overseer. (1 Cor. 4:2) He must be a spiritual man​—trustworthy, tested, well-organized, and attentive to detail. He should preferably be someone other than the Branch Committee coordinator. (2 Cor. 8:18-22) The overseer should be a full-time Bethelite or a full-time commuter so that he is available to provide direction. He must be able to keep matters confidential. The Branch Committee contact for the Accounting Department should work closely with the Accounting Department overseer to make sure that the personnel needs of the department are met within the approved staffing guidelines provided by the Publishing Committee.

6. The work of the Accounting Department may be broadly divided into five categories: (1) Oversight, which includes compliance with organizational guidelines and directives as well as external laws and regulations, budgeting, financial analysis, risk management, general office support, and real estate; (2) General Accounting, which includes general ledger, fixed assets, and reporting; (3) Accounting Services, which includes accounts receivable, accounts payable, and allowances; (4) Cash Management; and (5) Related Field Entities Support, which includes supporting congregation entities and others in the field. How the Accounting Department is organized depends on the amount of assigned work and the number and ability of the personnel within the department. Each category may include several roles. A role does not usually require a full-time person, and often a full-time person performs many roles in the Accounting Department. However, these roles must be assigned in such a way so that sufficient separation of duties is maintained. For example, in many branches, the brother who handles the Branch Risk Management Desk (BRMD) is someone other than the department overseer. For further details on these responsibilities, see Branch Accounting Department Guidelines.

7. Compliance: The Branch Committee is responsible for complying with organizational policies, guidelines, and specific direction regarding financial matters as well as respective external laws and regulations. Similar to the way the Treasurer’s Office at headquarters works under the direction of the Publishing Committee and with other departments to establish financial compliance guidelines and internal controls, the Accounting Department under the direction of the Branch Committee should work along with other departments, such as Legal, Local Design/​Construction (LDC), and Purchasing to ensure financial compliance in the branch. Often the Branch Committee contact for the Accounting Department can assist with good communication between the departments on these matters. The brother asked to care for compliance in the Accounting Department should have a reasonable understanding of the laws relating to financial aspects of the work in countries under the branch territory, including corporate and tax laws. In many branches, the Accounting Department overseer handles this responsibility. The authorities expect an organization’s financial records to mirror its activities. Inconsistencies often lead to problems. The Accounting Department overseer, or someone working closely with him, should be familiar with these matters. At times, the branch may use experienced professionals, preferably brothers, as consultants to help ensure that the branch complies with the local statutory or legal requirements for financial records and for reporting to the government. (See 5:11, 28; Matt. 22:17-22; Rom. 13:1-7) All those who work in the financial area should be made aware that failure to comply with legal requirements could lead to serious consequences including financial penalties and the loss of tax-exempt status.

8. There are many types of taxes levied by governments, such as taxes on personal or corporate income; sales, use, and excise taxes on purchases or sales, including Value Added Tax (VAT); social security taxes; estate taxes; property taxes; and duty on imported goods. Tax issues may also arise in connection with donations, gifts, and real estate. Since governments provide tax relief for a variety of reasons, the branch should endeavor to take advantage of exemptions or immunity when it legally qualifies for such. Most countries extend favorable tax treatment to those engaged in religious endeavors full-time. This relieves the branch of some financial burdens and affords its endeavors tacit legal recognition. The branch should not pursue exemptions to which it is not entitled or exemptions that might otherwise jeopardize its standing with the authorities. Structuring financial transactions with clarity and simplicity helps to create a legally defensible tax position. It is also important that the branch clearly complies with government regulations. The branch should ensure that the structure of the legal status of the local organization is one that will most likely result in exemption for a religious organization. While it is important to follow the principle mentioned at Matthew 22:21, the point is not to be overly cautious in this area. The branch should think in terms of how it can carry out necessary functions in a way that does not automatically involve setting things up to pay taxes. When taxes are due, the amount paid should be as low as is legally permissible, and the procedures should be as simple as possible. When there is a reasonable legal basis for not paying tax, the branch should pursue that approach.

9. The branch should keep the Publishing Committee informed of significant developments, especially if there is a potential for losing tax exemption. Unresolved questions relating to tax matters should be promptly addressed to the Publishing Committee for comment. The Global Tax Group (GTG), made up of members from the Treasurer’s Office and the WHQ Legal Department, assists the Publishing Committee with tax matters.

10. The internal controls described in Branch Accounting Department Guidelines and the recommended procedures in the Treasurer’s Office Library are designed to ensure compliance and avoid fraud and error in handling financial matters. The Accounting Department will assist the Branch Committee with implementing internal controls and regularly assessing them. The Branch Committee should make sure that all events of noncompliance​—fraud or misstatement in the financial records—​are handled, documented, and communicated to the Publishing Committee. It should also ensure that all necessary internal and external audits are performed regularly and are well-supported by the affected departments. The branch audit should be completed at least annually or as directed by the Coordinators’ Committee.

11. The Publishing Committee should be informed any time a new external audit is required. The branch Legal Department should be consulted in advance of any government audit to help ensure that all legal requirements for the audit are being met by the government representative. If the branch is obliged to disclose the financial records, these should be transparent and easy to follow.​—See 5:7, 28.

12. Budgeting: The branch plays an important role in carefully budgeting and in making wise purchasing decisions. The Annual Budget Package (ABP) is used to report anticipated spending on operations and projects for the upcoming service year. The ABP should be completed each year in July and submitted to the Treasurer’s Office for approval by the Governing Body. For some areas of spending, the branch will receive guidance from the headquarters department that has oversight of that area of work. The Publishing Committee will inform all branches annually of what spending will be managed by world headquarters and of what spending will be managed by the branch.

13. The branch provides funding for all Kingdom Hall and Assembly Hall construction in its territory, based on an annual budget developed and approved through the Worldwide Design/​Construction Department (WDC). All congregations have the opportunity to support the construction of these theocratic facilities through resolutions for monthly donations.

14. The Governing Body appreciates that money is needed for branch operations and to expand the work through field missionary, special pioneer, temporary special pioneer, circuit, and regional activity. However, at the same time, it desires that all funds be used carefully. It is appreciated when the Branch Committee keeps unnecessary expenses to a minimum. The funds being used are contributed by the brothers from all parts of the world. They have made sacrifices to help with the Kingdom work, so these funds should be used to the greatest advantage. Branch Committees should review the actual expenses each month compared to the budget projection. The committee members should decide what they need to do to stay within the approved budget, particularly in areas of the work that are not under the direction of a headquarters department. For example: Can shipping costs be lowered? Can incidental trips be combined to save time and transportation costs? Are purchases necessary and worth the price paid? The Treasurer’s Office will communicate any adjustments to a branch’s approved budget when new initiatives are introduced by headquarters departments during the year. They may also contact a branch if spending is exceeding budget forecasts so that steps may be taken to stay within the approved budget. Similarly, the Branch Committee should contact the Treasurer’s Office as soon as possible if the branch will spend significantly more than its approved budget. The purpose of this communication is, not to get approval for additional spending, but to make sure that the Treasurer’s Office is able to project properly the financial standing of the organization. Construction budgets for branch, Kingdom Hall, and other projects are administered under the supervision of the WDC.

15. Financial Analysis: The Branch Committee should carefully consider costs when making decisions. This is especially true when a decision will result in an ongoing expense rather than a one-time purchase. Occasionally, tracking the cost of major products, jobs, and services is used to establish a manufacturing cost for shipping invoices and an hourly rate for personal services, to set a budget, to reduce waste, or to simplify operations. There is no need, however, to undertake detailed cost accounting every time an item is needed. Any financial analysis that is done should take all factors into consideration to ensure that a good decision is made. The Publishing Committee should be asked for assistance in analyzing costs for a major decision or an independent review of a cost analysis. The Treasurer’s Office provides analysis of certain standard expenses, such as personnel and support rates, on the Treasurer’s Office Library.

16. Risk Management: The Global Risk Management Desk (GRMD) provides day-to-day assistance to the Branch Risk Management Desk (BRMD) within the Accounting Department. The BRMD is concerned with matters related to safety and loss prevention and safe operation of vehicles as well as handling incidents and insurance matters at any facility or location where theocratic activities occur, including branch facilities, Kingdom Halls, Assembly Halls, approved construction projects, and rented facilities. The Branch Committee should encourage all departments and entities within the branch territory to collaborate with the BRMD on these matters before a loss occurs. This enables the branch to utilize risk management techniques and to comply with initiatives and insurance arrangements already in place. Each year, the BRMD and the Branch Committee contact for the Accounting Department should meet with department safety contacts to review trends in accidents and near misses. Based on these trends, the BRMD may recommend safety training for certain departments.

17. After an incident involving accidental loss, branch departments should actively communicate with the BRMD, which is the main channel of communication with the GRMD. Any serious bodily injury, major property damage, or other accident with the potential of bringing liability to the organization should be reported immediately to the BRMD, which will notify the GRMD immediately.

18. The BRMD should be informed when new activities are being considered that may change the likelihood and severity of damages that may occur at a branch, such as proposed major construction, large purchases of land or equipment, the rental of large equipment for construction or other activities, the use of drones, or enlarging the scope of operations. It should also be informed before entering into shipping contracts for high-value items, major projects, or marine cargo shipments. The BRMD communicates with the GRMD on these matters.

19. Each year, the Branch Committee should work closely with the BRMD to develop a recommendation for the suggested GAA donation. This recommendation is approved by the GRMD before notifying the congregations. Annually, the GRMD will provide instructions regarding what information should be provided to the congregations. The GRMD should be contacted for clarification if it is unclear whether a payment to care for an injury or a property or an automobile loss should be viewed as a GAA expense.

20. If a natural disaster causes property loss, the BRMD should investigate the availability of a governmental disaster fund to help with repair costs, provide assistance with any approved branch relief arrangements, and assist the LDC with either construction methods that can be used to prevent similar damage in the future or relocation if recurrence is likely and unavoidable.

21. The branch should contact the Treasurer’s Office before purchasing any insurance policies, except for mandatory auto liability insurance. The organization’s international liability insurance is usually sufficient to satisfy insurance requirements for our various activities. The GRMD will consider a request in accord with guidelines from the Publishing Committee and will provide direction as needed. If the BRMD and the Branch Committee believe that any part of an existing insurance structure may need to be modified because of legal restrictions, local customs, or any other reason, the Treasurer’s Office should be notified in writing well in advance of the date on which the proposed insurance will become effective. The correspondence should explain the type of insurance to be purchased or renewed, any special circumstances that the branch believes should be considered relative to the need for the insurance, and its cost in U.S. dollars.​—See Branch Accounting Department Guidelines.

22. Life safety and loss prevention are core values for all in the organization. The Publishing Committee realizes the importance that Jehovah puts on the sanctity of life. Ensuring that dedicated funds are used wisely requires prudent loss prevention. To assist in standardizing the global approach, the Global Life Safety and Loss Prevention Guidelines (A-120) was developed to bring together all the excellent initiatives that world headquarters and various branches have been working on over the years. This document allows for policies, guidelines, procedures, and training materials already created to be shared. These guidelines are intended to improve safety methods in order to prevent even minor injuries as well as to prevent major losses, such as those resulting from fires and falls.

23. The goal is to maintain an accident-free environment with minimum loss to all premises​—including branches, Assembly Halls, Kingdom Halls, remote translation offices—​and throughout all operations, such as construction and renovation projects, printing, driving, and so forth. This can be accomplished if each one realizes that his attitude toward life, safety, and loss-control reflects his spirituality. As the “Grand Creator,” Jehovah God considers life to be sacred. (Eccl. 12:1; Ps. 36:9) As his servants, we reflect our spirituality when we adopt that same view. (Eph. 5:1) Therefore, in all our activities, we do not take unnecessary risks or disregard established safety standards. (Deut. 22:8; Eccl. 10:9) We sincerely love our brothers; thus, we endeavor to apply Scriptural principles so as to protect ourselves and others from physical harm. (Prov. 3:21, 22; Phil. 2:4) We each have a moral and spiritual responsibility to work safely; to take all reasonable measures to prevent accidents, injury, and losses; and to use donated funds wisely.​—See the A-120.

24. Real Estate: The Worldwide Design/​Construction Department (WDC), under the oversight of the Publishing Committee, coordinates the purchase and sale of all real estate. In the Accounting Department, the Branch Real Estate Desk (BRED) handles the day-to-day real estate related work, such as routine leasing arrangements, record keeping, evaluating donations, and working closely with the Local Design/​Construction Department (LDC). The BRED maintains accurate records for all properties and ensures all organizational data related to land, buildings, auditoriums, and property improvements are entered into the Property Management (PM) module of HuB. Additionally, the BRED is responsible for ensuring that all necessary documentation and legal or procedural requirements are in place in order to maintain ownership of or to sell any property. Before a person deeds real estate or proposes to make a donation of property to the branch, the BRED will ensure that local laws are considered. It will work with the branch Legal Department as necessary to determine if there are any tax issues, liability issues because of environmental concerns, titling problems, and so forth. The BRED should work closely with the branch’s local legal resources and the LDC to resolve any issues related to our right and ability to sell.​—See 5:159.

25. General Ledger: A standard set of accounts has been established to allow branches to report financial activity consistently to the Treasurer’s Office. These accounts should be used as the local set of accounts in each branch unless legally required to use a government-issued set of accounts. The accounts include approved funds, such as the Relief Fund. New funds on the general ledger should be set up only with the advance approval of the Publishing Committee.

26. Since our literature is distributed at no cost, no value should be carried on the general ledger for work-in-progress and finished literature. This helps others to understand clearly that we are not a commercial operation. Any exceptions to this policy should be approved by the Publishing Committee.

27. Reporting: The Accounting Department completes a Monthly Financial Package (MFP) for each reporting legal or theocratic entity. After the reports have been approved by the Branch Committee, they should be sent to the Treasurer’s Office by the 20th of the following month. The Treasurer’s Office then prepares financial reports. These are considered by the Publishing Committee and are helpful in planning the best use of funds available to Jehovah’s Witnesses for the worldwide Kingdom work.

28. External reporting is sometimes required by law. If it becomes a legal requirement to submit financial statements outside of the organization because of a change in governmental requirements or the creation of a new legal corporation, draft financial statements and accompanying reports should be sent to the Publishing Committee for review and approval prior to their submission to the government, unless previously approved by the Publishing Committee. Financial statements should be submitted again to the Publishing Committee for review only if there is a significant change in the reporting requirement, such as when additional information is required. Branch corporations should use August 31 as their financial year-end unless local regulations direct otherwise.​—See 5:7, 11.

29. Accounts Receivable (Donations): On appropriate occasions, the Branch Committee may help the local brothers to understand their privilege to “honor Jehovah with [their] valuable things.” (Prov. 3:9) In some countries, the income of the brothers may be low, limiting what they can do. However, they should not want to leave the financial responsibility entirely up to brothers in other countries. With proper education, patience, and time, those with limited means can be helped to see how they too can have a share in expanding the Kingdom work by their contributions. At no time should funds be solicited, making the brothers feel that they are being pressured. However, they can be informed as to how the organization operates and their privilege in this connection.​—Luke 21:1-4.

30. Accounts Payable: All branch expenses should have sufficient supporting documentation and approvals. The Accounting Department is responsible to distribute the allowances to members of the Worldwide Order of Special Full-Time Servants of Jehovah’s Witnesses and other temporary volunteers in their territory. The Branch Committee coordinates allowance policies and approval as described in Chapter 9.

31. Many of our faithful brothers suffer medical problems beyond their financial means. If needs arise as a result of a natural disaster, the matter will be handled as part of a relief project under the direction of the Coordinators’ Committee. However, at times, the Branch Committee may get pleas for assistance in connection with the necessities of life because of other circumstances. Though the first responsibility for such matters rests with the family of the individual, at times assistance is available through the congregation or through government or social agencies. When the individuals have exhausted these possibilities, it is left to the discretion of the Branch Committee to handle such matters. If the committee feels that it is appropriate to assist deserving ones financially to help them obtain critical medications or to help with the cost of an operation, it may grant up to USD 3,000. Any request for humanitarian aid above this amount should be referred to the Publishing Committee with an explanation and recommendation. Branch Committees will need to handle such matters with discretion and confidentiality so that the provision is not abused. Generally, this arrangement should be the exception rather than the rule. This information is not for publication to the congregations. However, the Branch Committee may act upon a congregation-initiated request for help. This is in harmony with the generosity and kindness shown by the first-century congregation.​—Rom. 12:13.

32. Cash Management: So that “there may be an equalizing,” the Publishing Committee has arranged for all surplus funds held by branches to be consolidated to the Cash Management Centers (CMC). All branches that do not have sufficient funds to cover their expenses in any month can receive assistance from this arrangement. (2 Cor. 8:13-15) A monthly ending cash limit is approved by the Publishing Committee and is provided with the annual budget approval for each geographic location. The Branch Committee is responsible for ensuring compliance with the monthly ending cash limit. Requests for funds from the CMCs to cover expenditures previously approved by the Publishing Committee should first be approved by the Branch Committee and then sent directly to the Treasurer’s Office. Any branch with surplus funds should notify the Treasurer’s Office so that these funds may be sent to the CMC.

33. Jehovah’s Witnesses in many lands entrust their contributions for advancing the Kingdom work to various corporations of the organization. Other arrangements will be made if conditions in a country change or the legal agencies are no longer available for use.

34. The Branch Committee approves the setup and balance of all imprest fund arrangements used by remote locations and departments.

35. The Accounting Department is responsible for recommending to the Branch Committee an appropriate commercial bank or banks to work with and for maintaining a good relationship with them. The Treasurer’s Office is responsible for approving all new bank relationships that a branch may wish to pursue.

36. There is no need for a branch to have an investment program, since surplus funds are sent to the CMCs. Normally, a branch will not hold securities. Donated securities, such as stocks or bonds, should be liquidated before the end of the month in which they are received. If funds are being held for a special purpose, there may be local opportunities to obtain a safe yield on these funds. Any exceptions or questions regarding this should be directed to the Treasurer’s Office.

37. The Global Health Care Office (GHCO) is a world headquarters department that works under the direction of the Publishing Committee. It assists the Personnel and Service committees as well as the branches in matters related to health care for special full-time servants. A Branch Committee contact for the GHCO and a backup should be assigned in each branch. The GHCO’s responsibilities include:

• Researching and making recommendations regarding health-care policy.

• Developing guidelines for branches, based on approved policy.

• Working with branches to ensure that local health-care arrangements are in harmony with guidelines.

• Providing training for those who work in health-care assignments at the branches.

• Investigating high-quality/​low-cost options when a special full-time servant needs health care that exceeds the branch spending limit or requires travel to another branch territory.

38. If a particular health-care procedure, treatment, or course of treatment is (1) not available within the branch territory, (2) exceeds what the branch can approve, or (3) exceeds USD 5,000 (even if a branch has a higher approved spending limit), the branch should submit a health-care request memorandum to the GHCO, copying the appropriate Governing Body committee. Additionally, a Health Care Request (A-112) form should be sent to the GHCO via the Global Health Care software. Whenever possible, this should be done well in advance of the requested date of care or travel. For further instructions on health-care policy and direction, see Health Care Guidelines (A-110). For further information regarding the provision of health care for members of the Worldwide Order, see 9:40-46.

39. In view of the growing needs of the organization as well as the challenging economic times, it is necessary to take a global look at purchasing what is needed for the work. The Global Purchasing Department is a headquarters department that works under the direction of the Publishing Committee and provides direction and practical assistance to branch Purchasing Departments. Direction on purchasing matters is based on research and consultations with branches and with brothers who have business experience throughout the world. The Global Purchasing Department’s goals are (1) to make quality products and equipment available at reduced costs; (2) to simplify work for the branches by prequalifying suppliers and products, based on approved specifications and maintenance support capabilities; (3) to coordinate procurement efforts related to construction of theocratic facilities; and (4) to assist branch Purchasing Departments with their ongoing local purchasing needs. To care for this work, the following five main initiatives are in place. Further direction on the operation of branch Purchasing Departments is provided in Purchasing Guidelines (PD-1) and on the Purchasing Guidelines Training website. Please follow these guidelines closely.

40. International Purchasing Arrangements: These are agreements established with large multinational companies. The objective is to provide preferential pricing and terms even to remote branches. Most branches can order locally under business agreements that include either local or regional maintenance support. While some supplier arrangements are global in scope, many are regional. International supplier arrangements, along with local supplier arrangements developed by the branch Purchasing Department assist the Local Design/​Construction Department in supporting the construction and operation of all theocratic facilities in its branch territory.

41. The Publishing Committee is interested in seeing that these arrangements are used to the fullest extent possible, thus providing the greatest benefits and savings for the organization. The Branch Committee should encourage departments within the branch as well as those in its territory to consider the arrangements posted on the Supplier Arrangements section of jw.org prior to pursuing other options. All those involved with purchasing or specifying goods, equipment, or construction materials for the branch and the field should be given access to the website. These brothers should check jw.org periodically, since new arrangements are added and refinements are made to existing arrangements on a regular basis.

42. Emerging Market Opportunities: When purchasing equipment, construction supplies, or commodities, considerable savings can be obtained by benefiting from emerging opportunities and global market trends. Rather than multiple branches trying to purchase from these countries individually, an organizational approach improves the purchasing opportunity while simplifying the work for the branches. The Global Purchasing Department oversees the work of remote global purchasing offices operating in some lands. Branches in whose territory a remote global purchasing office operates are responsible for providing needed food, lodging, and other practical support.

43. Global Purchasing Paper Desk: This central desk cares for business transactions associated with the purchase of press paper. It comes under the supervision of the Global Purchasing Department and works closely with the International Printing Department and the Treasurer’s Office. This desk is currently based at the Britain branch. All Nonliterature Branch Requests (AB-3a) for press paper should be submitted to the Britain branch for handling. In addition to requesting paper, all global paper supplier invoices should be directed to the Global Purchasing Paper Desk for validation and payment. Each printing branch should continue to forecast its paper needs for the year and include those costs in its respective operating budget.

44. Primary Purchasing Branches (PPB): Each branch is assigned by the Publishing Committee to a PPB. The PPB should be considered the first option for filling Nonliterature Branch Requests (AB-3a) in the region. After consultation with the PPB, it may be determined that some requests need to be filled by other branches. The Global Purchasing Department works closely with each PPB to improve service to branches of Nonliterature Branch Requests (AB-3a), reduce shipping costs, and identify and implement international supplier arrangements within their region. Branches are encouraged to contact their PPB with any questions related to these matters. (See also Local Design/​Construction Department Guidelines, DC-3.) The PPBs also support Purchasing Departments by training purchasing members to assist branches in their region.

45. Global Purchasing Department Regional Support: Regional support teams, made up of qualified branch Purchasing Department members throughout the region, work under the direction of the Global Purchasing Department. The branches where these members serve receive a staffing allocation that allows for this additional work, and these members are listed as Global Purchasing Department Regional Support in HuB. The Branch Committee and the Purchasing Department overseer where these members serve provide shepherding and care for them. These teams look for ways to assist branches in their region with purchasing matters. This includes training on matters related to requisitions, purchasing, receiving, inventory, business skills, and using HuB. Purchasing Guidelines (PD-1) and the Purchasing Guidelines Training site are the tools used for training. These teams also assist branches in the region with business support, such as complex contract negotiation, account management of international supplier arrangements, large capital purchases, procurement strategies, and implementation of logistics opportunities. Each regional support team works closely with other regional headquarters departments, such as the Regional Design/​Construction and Regional Broadcasting departments. The branch may communicate to the Global Purchasing Department or their regional support team any ideas, suggestions, or challenges that it faces regarding purchasing matters.

46. The International Printing Department (IPD) operates under the direction of the Publishing Committee. It may be asked to care for the details relating to the production and shipment of magazines and literature items in the following areas: Printery Office, Graphics, Pressroom, Bindery, Shipping, and in the purchase of some literature items. It also cares for the technical details of the global purchasing arrangements for paper, printing plates, cartons, and ink. The Publishing Committee may also ask the department to follow through on implementing various decisions having to do with regional printing and literature production, such as the purchase and installation of equipment.​—See 5:110.

47. Rendering Good Service: Printing and shipping branches should feel a sense of responsibility to maintain adequate inventories without overstocking and to provide good service. Supplying branches are responsible for working with their requesting branches to keep items in stock. Although some noncritical items may go out of stock for a short period of time, Bibles and other field publications should be kept in stock in order to fill congregation requests as they come in. The supplying branch is expected to process requests quickly and to provide consistent delivery times even if it seems that a requesting branch may have an adequate supply on hand.​—See 5:53.

48. A major focus of the branch should be the prompt processing of branch and congregation requests. If it is necessary to bring in extra help during rush periods, do so. If good service cannot be maintained, this should be communicated to the Branch Committee. Providing good service must be balanced with keeping delivery costs reasonable.

49. Regional Printing: Under this arrangement, printing branches are responsible for producing literature for a specific region rather than in a certain language. This spreads the workload involved in producing literature more evenly among the printing branches. Because of varying circumstances, a few branches will continue to produce their own literature locally and will not be involved in the regional printing arrangement. Regional printing does not always include periodicals.

50. Under regional printing, it is practical to print items in some languages in more than one region. For example, there may be a large enough production run of an English publication that the same publication can be printed in Asia, Europe, and North America. The following factors should be taken into consideration: size and cost of the production run, shipping costs, and service to the congregations.

51. Each month, world headquarters receives inventories of literature on hand from each branch except for those branches under the warehouse arrangement. This information is used to monitor stock levels at the branches. Additionally, all printing branches regularly submit a monthly production report to headquarters. These reports help in the assessment of the workload being carried by the various printing regions.

52. Warehouse Arrangement: The warehouse arrangement has resulted in a reduction of stored literature in numerous branches and in the number of people needed to process literature and magazine requests. This is because congregation literature and magazine requests are being filled at a central warehouse branch rather than at numerous local branches. Generally, larger warehouse branches have the equipment necessary to fill congregation and Branch Requests (AB-3) more efficiently. This arrangement also allows for congregations to request a wider range of publications, since warehouse branches are able to stock a greater variety of publications.

53. Warehouse Branch Responsibility: The warehouse branch should be concerned with giving good service to the branches that are its clients. It should work with each client branch to establish a well-defined schedule that outlines the following: when congregations should have their requests submitted to the local branch office, when a request should be submitted to the warehouse branch, when a request will be packed and shipped, and approximately when congregations will receive their shipments. This schedule should be closely followed and monitored to ensure that congregations are receiving their requests on time.​—See 5:47.

54. The warehouse branch may need to prepare and ship literature and magazines according to specific requirements provided by the client branch. This may include making adjustments to benefit the client branches, such as changing the frequency of shipments, adjusting the way congregation requests are packaged, and changing the way packages are stacked onto pallets to assist in delivery. It is better for this additional work to be done at the larger warehouse branches than at the smaller client branches. If possible, the shipments received by the client branch should already be prepared for delivery to the congregations. Thus, the method for shipping literature, magazines, and the Life and Ministry Meeting Workbook must be established with the aid of the client branch.

55. Client Branch Responsibility: The client branch is responsible for dealing directly with the local congregations regarding literature and magazines. Each month, as literature and magazine requests are submitted by the congregations, the client branch should verify the requests, apply literature request limits, and manage delivery-address issues before forwarding the requests to the warehouse branch. This is normally done using the Electronic Data Interchange (EDI) function in the HuB program. In most cases, the client branch is responsible for receiving the prepackaged literature and magazine shipments from the warehouse branch and then arranging delivery to the congregations.

56. Good Communication: When a change in an established arrangement or a new procedure is needed to provide literature and magazines to the congregations, both the warehouse branch and the client branch should take the initiative to communicate with each other. One branch should not assume that the other branch is caring for a matter. The client branch should regularly provide comments to the warehouse branch regarding the condition of the shipments when they arrive and any difficulties with importing, including additional costs. The client branch should also relay any problems and discrepancies that the congregations experience in obtaining literature.

57. Regular attention should be given to Branch Requests (AB-3) for items that are pending because they are out of stock. The printing branch and the requesting branch should feel free to communicate with each other regarding the status of items that are delayed. It is also good to take the initiative to notify branches of items that are going to be delayed for an unusually long period of time.

58. The client branch should communicate in advance with the warehouse branch regarding any future needs, including arrangements related to conventions and assemblies. This would include, for example, when a group or a congregation is being formed in a new language, since the warehouse branch may not have items in stock in the new language. The client branch should also communicate if forms or talk outlines are needed in languages other than the primary language of the country.

59. Literature Inventory Control: The function of inventory control is to monitor stock levels of all publications in order to maintain adequate inventory on hand to fill branch and congregation requests quickly. At the same time, balance is needed to avoid accumulating an overstock that cannot be used in the near future. Generally, literature is considered to be overstocked if the inventory exceeds a one-year supply. Depending on local circumstances, the responsibility for inventory control may be a part of the Shipping Department or, in a printing branch, the Printery Office.

60. On at least a monthly basis, stock levels should be reviewed to ensure that there is a sufficient supply of publications that will be used in the field ministry and at congregation meetings. Each time literature is requested, the HuB program should be consulted to determine what the movement for those items has been over a period of time. The following should be considered: present stock at the branch and in the congregations, rate of movement, storage facilities, publications that will be used in the field ministry or at upcoming congregation meetings, and whether a request has already been submitted to replenish stock. If there is any uncertainty regarding the movement of an item, it would be best to submit a conservative request, keeping in mind the option of electronic downloads.

61. If the branch has no organized group or congregation activity in a language for which literature is requested occasionally, only a few basic items for that language​—such as a primary Bible study publication or some brochures and tracts—​may need to be stocked. If no immediate need is evident, a publication should not be stocked in the branch just because it has become available in a new language.

62. Preventing Overstock: Request quantities should not be based on enthusiasm or the expectation that every person who speaks a language will accept a copy of a publication in that language. If a branch is uncertain about the movement or use of an item, only a small quantity of that item should be requested, even though doing so may result in having to request a supply of that item again within a few months. It is better for the supplying branch to make another shipment or to do another printing than for a branch to be overstocked with an item for several years.

63. Significant overstock has occurred with publications used for the Congregation Bible Study. Initially, the movement will be high, and then after the first few studies, demand will diminish greatly. This has especially been seen in the case of publications that are not designed for use in the field ministry after being considered at the Congregation Bible Study. It is important to review correspondence from the Governing Body committees to discern the intended use of these publications. Taking note of whether a publication will be used in the field ministry can help a branch to determine how much stock should be maintained. Also, take into consideration the encouragement for publishers to download literature electronically.

64. Special-Request Items: Extra caution should be used when requesting costly items or dated publications. Because it is desired that the branches use up the stock of Examining the Scriptures Daily during the year it is released, this item should be requested prudently.

65. Branches should not stock expensive publications that have to be purchased. The brothers can obtain such items on their own rather than having the branch provide this service. However, a branch may still purchase and provide foreign-language Bibles if (1) there is sufficient demand, (2) the New World Translation is not available in a certain language, and (3) the Bibles are not readily available from local vendors. To keep costs to a minimum, the purchased Bibles kept in stock should be a standard nondeluxe edition and should not be offered in the field ministry. They are available only as a special-request item for baptized and unbaptized publishers and progressive Bible students who do not have a Bible. Individuals qualified to receive such a Bible should not feel obligated to make a contribution equal to the cost of the Bible if their circumstances do not permit such. Each one may make a contribution in harmony with his ability to do so.​—2 Cor. 9:7.

66. Publications to Be Printed Sheet: The Publications to Be Printed Sheet is primarily used to inform branches of new publications to be printed. Two months before files for printing new publications are ready, the translation branch informs the International Printing Department and copies the printing branches. If a file maintenance branch or a printing branch becomes aware of an item that has not yet appeared on a Publications to Be Printed Sheet, they also inform the International Printing Department to ensure that nothing has been overlooked.

67. Branches that maintain their own inventory should closely review the Publications to Be Printed Sheet and submit Branch Requests (AB-3) for needed items no later than the due date. Client branches should also keep up-to-date on what is being printed. If specific congregations or groups in a client branch’s territory would benefit from an item that will be produced, the client branch can notify the warehouse branch of this need.

68. Production Approval Process: When new items are listed on the Publications to Be Printed Sheet or when a reprint is needed, the print quantities are calculated by the printing branch. A printing requisition does not have to be submitted to the Publishing Committee, since approval to produce the item has already been given and the printing branch has the necessary figures to calculate the print quantity.

69. Minimum Print Quantities: For a publication with little demand, the minimum print quantity should be considered before a printing job is issued. Meeting this minimum print quantity may require that a two-year supply be requested. Branches should not hesitate to print the minimum quantity for publications that are essential to the work in the field or to the spiritual progress of the brothers. Note the minimum printing quantities on Chart 5.1.

70. It is recommended that one or two members of the Branch Committee be involved in the review process when items are being submitted on Branch Requests (AB-3) or when quantities are being determined for items that may be printed locally.

71. Branch Shipment Information: The importing branch should be thoroughly acquainted with all important matters regarding ocean-freight companies, import licenses, and deliveries. Anything that the exporting branch should know must always be put on the Branch Requests (AB-3). This includes the date needed, if applicable. If the literature will be released at a convention or is needed for a special campaign, the request should also include the actual date of the first convention or the start date of the campaign. It should not be assumed that the supplying branch understands the requesting branch’s requirements. Additionally, since customs regulations and import laws change frequently, importing branches should help exporting branches by informing them immediately when new regulations or controls are implemented.

72. Exporting branches should be thoroughly familiar with export laws for shipments made. The exporting branch should ensure that all shipping instructions are clear on receipt of the Branch Requests (AB-3). If the shipping method on the approved request needs to be changed to an expedited service, the requesting branch will either give or obtain any additional approvals needed, depending on the additional cost involved. Before preparing a shipment for a branch to which it has not previously shipped items, the exporting branch should request direction from the importing branch. Routine matters can be communicated between branches via e-mail.

73. Insurance and Claims: The Treasurer’s Office maintains a Cargo Policy to cover losses and to provide proof of insurance coverage where required during international and domestic transportation.

74. Importance of Literature and Magazine Distribution: The Governing Body desires to have the Watchtower magazine available in as many languages as possible because it is the organization’s principal magazine. The Awake! magazine is an excellent help in stimulating interest in the truth and in spreading the good news. Along with these magazines, the primary publications used to start and conduct Bible studies in each country should be readily available for use in the territory. Publishers and pioneers should have these publications available to use whenever interest is found, with a view to starting a Bible study.

75. Monthly Literature Announcements and Release Letters: The warehouse branch should inform the client branches about new publications that have become available. Each branch office should keep the congregations up-to-date regarding literature and magazines that are available for them to request. Many branches send information about publications in a monthly “Announcement to All Congregations,” which may be posted on the information board.

76. Literature Releases: The annual Publishing Committee letter to all branches provides the approved direction for literature releases. The physical distribution of convention releases has been discontinued. In most cases publishers are able to download releases electronically.

77. Following a publication’s release, congregations may request printed copies for publishers who need one and a few additional copies for congregation stock. Branches served by the warehouse arrangement should determine reasonable request limits with the help of their warehouse branch. Printing quantities will be based on actual requests.

78. Congregation Literature Inventory: Each month, congregations should do a physical count of their literature on hand and post the quantities on their Monthly Movement of Literature form (S-28). Each year on March 1 and September 1, congregations should submit their inventory quantities to the branch office, if possible, via jw.org. The branch office can use the inventory to help determine whether congregations are over-requesting. Branches that cannot accept inventories via the website should request an inventory from their congregations via hard copy once a year on September 1.

79. Analyzing the amount of literature in the congregations can assist the branch office in making wise decisions in regard to providing the literature needed to support the preaching activity, while at the same time reducing overstock (an excess supply for more than one year) in the congregations. If it is determined that congregations are over-requesting, it would be good for the branch office to review the request limits that they are applying to the amount of literature that congregations can request. If the branch becomes aware of certain literature items that are overstocked in specific congregations, they may provide reminders to share literature with neighboring congregations. In some cases the branch may write to those congregations and request that the literature be returned to the local branch.

80. Literature and Magazine Request Guidelines (S-56): Each branch is responsible for providing direction to congregations regarding the proper handling of literature and magazine requests. The S-56 contains detailed instructions regarding how congregations should request literature. The English version is posted on the MDS site. Each branch office will need to determine whether adjustments to these guidelines are needed to fit local circumstances.

81. Literature-Coordinating Arrangement: The purpose of this arrangement is to maintain a common supply of stock items at a Kingdom Hall in an effort to reduce inventory. One congregation should be designated as the language-coordinating congregation for each language and will be responsible for requesting and distributing stock items for all congregations of that language. However, all congregations are responsible for submitting their own requests for foreign-language items and special-request items for their publishers.

82. Along with the service overseer, the literature servant of the language-coordinating congregation is responsible for ensuring that there is a sufficient supply of literature and magazines for use in the field ministry. He is also responsible for ensuring that the common literature supply area is not overstocked. In order to determine how much literature to request, he should be alert to any upcoming special activity such as a probable increase in the number of auxiliary pioneers during the circuit overseer’s visit. He fills out a Literature Request Form (S-14) and gives it to the service overseer for approval. The request is then submitted to the branch office, using jw.org.

83. Processing Literature Requests From Congregations: The congregations should be provided with a schedule of when they need to submit their literature requests to the branch office for processing. In many branches all congregation requests are received through the jw.org website. If congregations are submitting hard copy Literature Request Forms (S-14), the branch should enter these within a few days of their arrival. The branch office should have a procedure in place to verify the reasonableness of quantities requested. Each branch can determine what quantity checks should be performed, based on the need in the local territory. To avoid overstock, the branch office should apply request limits on certain items requested by the congregations.

84. A well-defined schedule for shipping should identify when congregation requests will be processed and shipped to different regions. The branch should monitor this schedule and make adjustments to ensure that the schedule is followed.

85. Processing Congregation Requests for Periodicals: Adjustments to magazine requests should be processed promptly so that they become effective with the next available issue. Therefore, effort should be made to enter requests from the congregations within a day or two after the requests are received at the branch.

86. It would be good for the branch to evaluate the quantity of overstocked magazines reported by congregations on their Monthly Movement of Literature (S-28) form. If it appears that many magazines requested are left over, reminders should be provided in order to help congregations submit more conservative requests. These reminders would be given with a view to assisting congregations to request magazines wisely.

87. Processing Requests From Congregation Members and Non-Witnesses: When a congregation member sends a request for literature to the branch, he should be directed to obtain the item through his local congregation. The congregations can occasionally be reminded of this direction. When a non-Witness, who is not yet associating with a congregation or having a Bible study, requests single copies of basic literature items from the branch, these items may be supplied. This may be done by mailing the requested items to his address or by asking the local congregation to provide them. If two or more copies of a publication are requested or if a publication is requested in multiple languages, the requester should be directed to contact the local Kingdom Hall.

88. When a person writes to the branch requesting publications for someone other than himself, he should be informed that the branch does not honor third-party requests. Generally, to follow up on requests from non-Witnesses, the branch sends a Please Arrange for a Qualified Publisher to Call on This Person (S-70) form to the local congregation, indicating what was requested.

89. If someone asks about the cost of our publications or expresses a desire to purchase our literature, it should be explained that our literature is made available at no charge and that the worldwide Bible educational work of Jehovah’s Witnesses is supported entirely by voluntary donations. Donations that accompany a literature request should be acknowledged. If it appears that the money received is a payment for literature, the literature can be sent. However, the funds should be acknowledged as a donation. Each branch may determine the minimum amount of a donation for which an acknowledgment would be sent. While some branches have found it advisable to send out acknowledgments for donations in the amount of USD 5 or more, other branches may wish to acknowledge smaller amounts.

90. Processing Requests Received at the Tour Lobby: The local Branch Committee should determine which literature items are made available in the tour lobby and how much literature is appropriate for a visitor to obtain. It is sufficient to offer some basic literature items for the public and field service items for Bethel family members. If a person requests items that are not stocked, he should be encouraged to submit his request through the local congregation. Literature that is designed specifically for publishers should be obtained, not at the tour lobby, but through the local congregation only. This includes items such as badge cards and durable power of attorney (DPA) cards as well as other medical documents.

91. Processing Requests From Vendors: It would not be appropriate to supply our literature to vendors who intend to sell it. The branch may advise the vendor to direct individuals who have an interest in our literature to contact a local Kingdom Hall to fill their needs.

92. Shipping Costs: Shipping literature and magazines to the congregations is a large expense. Therefore, literature and magazines should be shipped in the most economical way practical. The shipping method and the associated costs should be reviewed periodically, perhaps every couple of years, to determine whether better service could be provided and shipping costs reduced. If it is felt that major adjustments are needed, the recommendations may be submitted to the Publishing Committee.

93. Although the need for expedited shipments should be kept to a minimum by good planning and monitoring of regular requests, there are occasions when it is necessary to use an expedited service to meet the congregations’ needs. For example, such service may be necessary for foreign-language field items and for replacement shipments of the Life and Ministry Meeting Workbook and magazines. Congregations requesting this expedited service should be charged for the shipping cost. However, if it is the branch office that determines the need for this service, the branch will absorb the cost. For example, no charge would be billed to congregations for shipments of the Life and Ministry Meeting Workbook when expedited service is the only viable method to ensure that it is received in time for use by the local congregations.

94. Accomplishing the Kingdom work requires the use of a significant amount of funds. It is the desire of the Governing Body to provide what is needed. We trust that those involved in approving requests and doing the purchasing will exercise care in how these funds are spent. Even in branches where large sums of money are involved, it is important to pay attention to small purchases and not to be wasteful. Those purchasing for the branch should obtain goods and services at the best overall value, while providing prompt service to requesting departments.

95. Purchases involving the daily operation of a branch as well as requisitions for items up to USD 3,000 are approved by the Branch Committee or the Country Committee unless given other authorization. This limit applies to the requisition total, not individual items. Requisitions should not be divided with the purpose of remaining under the spending limit. At the discretion of the Branch Committee, trustworthy brothers may be appointed as requisition signers. These brothers should have a delegated approval limit within the branch’s approval level. Ultimately, the Branch Committee is accountable for all approved requisitions. Although the replacement of some small machinery or equipment can be approved by the local committee or appointed requisition signers, requests for any purchase involving the acquiring of property, enlargement of branch buildings, obtaining additional machinery and equipment, computers, vehicles, or any other major purchases for the home or printery should be submitted to the Publishing Committee for approval. The same is true when replacing existing equipment or disposing of property, machinery, and so forth. The reason for the request should be given, as well as an explanation of all the associated costs, including shipping costs, duties, taxes, and a realistic anticipated return from any trade-in or sale of old equipment. If the prices are estimates, an explanation of how the prices were determined should be supplied, including copies of any documentation that supports the estimate, such as Internet Web pages or catalog pages. Requests that are related or are part of a system should be submitted together so that the Publishing Committee can easily ascertain the overall cost of the items being requested. Additional guidelines have been provided regarding information needed for specific requests, such as Vehicle Guidelines (PD-30). Donated items or equipment are not exempt from the approval process. In the case of donated vehicles, it is generally preferred that the donor sells the vehicle and donates the proceeds to the branch. Nonliterature Branch Requests (AB-3a) related to construction projects should be reviewed with the Regional Design/​Construction Department prior to submission.

96. The Purchasing Department is authorized to obtain goods or services from suppliers, as described in an approved request. Many branches have a separate Purchasing Department assigned to care for buying work. Very small branches, however, may simply assign a brother or a sister to make purchases in addition to other assignments. It is preferred that purchases be made with a purchase order for delivery to the branch. If the local business environment is such that this is not always possible, some purchases may be made in person at the local market. However, such market buying should be limited to what is actually required. Because of its experience with business matters, it is preferred that the Purchasing Department cares for all buying work and negotiates contracts. In larger branches, the Purchasing Department should also oversee the receiving docks and nonliterature inventories and distribute commonly used supplies.

97. Among other things, those overseeing the Purchasing Department should ensure that the department (1) provides “helpful services” to other departments (1 Cor. 12:28), (2) obtains approved goods and services on time and at the best overall value, (3) maintains a positive and spiritual work environment, (4) is flexible and scalable to support the work, and (5) strives to perform the work with the fewest members reasonably possible.

98. Fundamental Business Practices: Boaz, Jeremiah, and Ezra were careful in the way they handled money and recorded transactions. For example, rather than trying to bypass the nearer relative and buy the land secretly, honorable Boaz fairly presented the facts publicly. (Ruth 4:1-12) Jeremiah negotiated a fair and reasonable price, documented these terms in accordance with local requirements, and ensured that transactional records were available for future reference. (Jer. 32:9-12) Ezra ensured that the millions of dollars’ worth of treasures entrusted to his care were safeguarded with proper controls. (Ezra 8:25-34) Likewise today, those handling dedicated funds should imitate these faithful examples by conducting business in a way that always brings glory to Jehovah’s name.​—1 Cor. 10:31; Eph. 5:10.

99. While local market conditions may vary, below is an outline of the purchasing functions common to all branches:

1. a.Do Research: The Purchasing Department assists departments with research and in arranging for meetings with suppliers. The requesting department is responsible for defining the specifications of what is purchased. While the Purchasing Department may have helpful suggestions to offer, its principal role is to source goods and services cost effectively rather than specify them. The Purchasing Department has the responsibility for the business relationship with suppliers. Buyers should fully involve the requester in handling the technical or usability aspects of products. Communication with suppliers is usually handled by the Purchasing Department. However, where possible, the Purchasing Department should assist users to communicate directly with suppliers when there are technical questions or problems. Samples should be requested or accepted only if there is a potential for use by the branch. Complex research questions can be directed to the Global Purchasing Department Regional Support team.

2. b.Review Requisition: An approved electronic requisition in HuB should be provided to the one doing the buying, prior to entering into an implied or written agreement. Proper approvals should be indicated on the requisition before an item is purchased. To improve accuracy and allow for standardization, there is value in maintaining the item master in HuB and using all the tools available in the item master fields.

3. c.Issue Purchase Order: In most branches a written document called a Purchase Order is provided to a supplier from HuB for materials or services to be rendered. This document is a legally binding contract describing the terms and conditions of a purchase, such as the supplier’s name and address, payment terms, material description and quantity of items requested, unit of measure, delivery date and method, and price. When a Purchase Order is provided, it may include other documents, such as technical specifications or a scheduling agreement. The supplier may respond to the Purchase Order with a confirmation that modifies the terms or items. Carefully review the confirmation to ensure that it is acceptable. In some cases where there are concerns, it may be wise to consult the Legal Department or the Global Purchasing Department Regional Support team.

4. d.Receive Goods: Receiving includes the physical receipt of incoming goods and confirmation in HuB that the goods satisfy the Purchase Order. This is usually the point at which the branch takes ownership of the goods, so it is very important to inspect the goods for damage, incorrect quantities, or incorrect items. The earlier a problem is identified, the easier it is to resolve it with the supplier. To ensure proper division of duties, someone other than the buyer should confirm the receipt of the items purchased.

5. e.Reconcile Invoice: The Accounting Department matches invoices to the corresponding Purchase Orders and approves payment. The Purchasing Department works closely with the Accounting Department to resolve discrepancies.

100. It is preferred that cash or credit cards not be used for significant branch purchases unless there is no alternative. Many developing countries are transitioning from cash to electronic means of payment. Therefore, investigate whether one or more of the following payment terms and methods would be acceptable to suppliers in your area. These are listed in order of preference. Payment Terms: (1) Open (credit) account: An open account with suppliers allows invoices to be paid after receiving the goods. It may be possible to arrange for prompt-payment discounts. (2) Staged payment: Even when open or credit facilities have been agreed upon with a supplier, there may be occasions when the supplier requires portions of the order value to be paid in stages. This may be required when purchasing a large piece of equipment or a manufactured product. (3) Pro forma (advance) payment: This is the least preferred payment term as it requires advance payment in full. It should be used only when there is no other viable alternative. Payment Methods: (1) Bank transfer: The most secure method to pay an invoice is an electronic transfer of funds between banks. (2) Imprest account (credit card, debit card, or eWallet): This method is practical in some countries for infrequent transactions or when it is not possible or advantageous to use an open (credit) account. Some suppliers charge a handling fee for accepting credit cards. Credit or debit cards are generally not preferred for regular business arrangements, since they are treated as a cash advance that can create more work. When possible, personal credit cards should not be used for payment of items obtained for use by the branch. Exceptions should be approved by two Branch Committee members. Use caution when using a credit card to place orders via the Internet, and ensure that the supplier is reputable. While mobile payment services have significant advantages over cash, they should not be used to replace other preferred payment options. Any questions about mobile payment options should be directed to the Treasurer’s Office. (3) Check: This option is often more expensive than an electronic bank transfer but generally safer than using cash. (4) Cash: This is the least preferred option because of security issues and other challenges. See Branch Accounting Department Guidelines for instructions on proper cash control.

101. Bible Principles in Business Dealings: Business dealings should always be conducted in harmony with Bible principles. Precautions should be taken to reduce the possibility of problems developing. This is true even when engaging in business dealings with brothers. Many of our brothers are eager to assist the work by offering to sell or donate goods or services to Bethel. Their assistance is greatly appreciated. Business dealings, however, should never leave the organization or the brothers involved open to accusations by the authorities, other brothers, or opposers. Goods or services that are offered to the branch should be clearly defined in writing. Also, before contracting with a brother or his company, a thorough business review process should be followed as one would do with any supplier to ensure that the branch is getting the best value.

102. When a business arrangement with a brother is contemplated, consideration should be given to how it may appear to others. We honor Jehovah and uphold our brothers’ reputation by not creating a real or perceived conflict of interest in business dealings. As an example, a brother acting as an adviser or a temporary volunteer at the branch while directing business to himself or to one of his companies could be perceived as being involved in a conflict of interest, since he has information or influence generally not available to others. Normally a brother can act as a consultant, volunteering his services to assist for a period of time (temporary worker), or he can be a supplier or a contractor used by the branch. However, he should act in only one of these three roles. Like the apostle Paul, we seek to avoid “having any man find fault with us . . . , for we ‘care for everything honestly, not only in the sight of Jehovah but also in the sight of men.’”​—2 Cor. 8:20-21.

103. Those involved in specifying materials or selecting suppliers should avoid accepting personal favors, loans, or gifts of more than a nominal value from anyone who is providing goods and services to the organization. (Ex. 23:8) Those caring for business matters follow Jesus’ example of not using his powers to his own benefit. (Luke 4:3, 4) Even if not illegal, activities that are out of harmony with the principles of trust, integrity, and good judgment must be avoided. (Matt. 7:12) The earthly part of Jehovah’s organization has a fine reputation in the community, and that reputation must be maintained.

104. Determining What to Purchase and From Where: To use dedicated funds to the greatest advantage requires advance planning and, at times, consultation with others. (Prov. 15:22; 21:5) Branches should be conservative and request only the items that are needed. Is the item needed to accomplish the work, or are there practical alternatives? Can the item be shared between departments? Is it practical to rent the item or to buy a used item? Would it be more cost-effective to hire an outside firm to do the work? What are the specifications for the item that is needed? Is there verification that the equipment is of the right size and appropriate for the intended application? Would local publishers view this expenditure as excessive? (1 Cor. 10:23) How will replacement parts or a warranty be obtained? The Primary Purchasing Branch, Regional Design/​Construction Department, or the Global Purchasing Department Regional Support team can assist in answering these questions.

105. It is usually practical to obtain equipment and supplies that are produced locally if the overall cost and quality is reasonable. To obtain the best value, consideration should be given not only to the price but also to the quality of a product, the service, and the availability of spare parts. Long-standing relationships with reliable suppliers are often valuable. Some suppliers, however, initially offer good pricing and service to get branch business, with the goal of gradually raising prices or reducing service levels. Therefore, it is wise to check with other suppliers periodically to ensure that the pricing, quality, and service rendered is still competitive.

106. There are advantages to having local suppliers deliver items to the branch where possible rather than sending brothers out to shop. As delivery service is being offered in more lands, suppliers should be asked whether such service could be provided. If the supplier does not deliver, perhaps arrangements can be made with a local delivery company where appropriate.

107. Trade shows can provide opportunities to obtain information and technical assistance as well as to establish contacts with suppliers. However, with increased information available on the Internet, the time and cost involved in attending a trade show needs to be weighed carefully. Where there is a need to attend a trade show, the number of attendees should be kept to a minimum and approval to attend should be given by the Branch Committee or the supervising committee at world headquarters.

108. Requesting an item from another country through Nonliterature Branch Requests (AB-3a) may be advantageous because of high prices, poor quality, or lack of local availability. The Primary Purchasing Branch should be utilized as much as possible to fill such requests.

109. Nonliterature Branch Requests (AB-3a) should include the following information on the request: why the item is needed, all costs (that is, purchase price, shipping costs, duties, taxes, and a realistic anticipated return from any trade-in or sales of old equipment), manufacturer, make, model, part number, a basic item description, shipping method, date needed, and, if applicable, electrical details (that is, voltage, frequency, and phase). When ordering replacement parts, the manufacturer, model, and serial number of the equipment should be included. Product information sheets, parts diagrams, drawings, and website references are helpful when available. Providing complete, detailed information makes it possible to order the item from the supplier quickly. Failure to include needed information on Nonliterature Branch Requests (AB-3a) may delay approvals. When determining the “Required by” date for delivery to your branch, it would be good to consider the following steps that may be needed depending on the value or complexity of the request: (1) review and approval at your branch (often one to three days), (2) technical review by a world headquarters department (up to two weeks), (3) headquarters approval, (4) manufacturing (for items not in inventory at the filling branch), (5) shipping time in transit, (6) customs clearance, and (7) any other possible steps. If after considering these steps you determine that the items to be requested cannot be delivered in time for your needs, please contact the filling branch prior to submission of the request. They may be able to recommend other options to meet your needs. Nonliterature Branch Requests (AB-3a) prepared by your own branch should be created or reviewed by your Purchasing Department before they are sent to world headquarters. Your Purchasing Department should assist in determining where to buy the items (for example, from a Primary Purchasing Branch, via an international purchasing arrangement, and so on) and validate that the necessary details are included. In some cases, your Purchasing Department may identify materials that may be obtained from local inventory or through local suppliers instead of requesting them from other branches. Each Nonliterature Branch Requests (AB-3a) should state whether the request is within an existing budget or not.

110. International supplier arrangements have been established for paper, printing plates, ink, kitchen and laundry equipment, seating, and other items. Many of these arrangements allow branches to purchase items and obtain services through local or regional authorized dealers while receiving discounted pricing based on the organization’s global volume. Information regarding such arrangements is outlined on jw.org. These arrangements should be used to their fullest, thus providing the greatest savings for the organization. Therefore, all those involved in specifying and purchasing items should consider the arrangements on jw.org prior to recommending other options. Each branch is in the best position to determine which of these purchasing arrangements is most appropriate. If it appears that another manufacturer or product will provide greater value, the reasons for the preference should be explained on the Nonliterature Branch Requests (AB-3a).​—See 5:46.

111. In some countries, many items are readily available for purchase via the Internet. In some cases, Internet-based suppliers may be more reliable and have less expensive products when compared with a local supplier. However, caution is needed. While websites may advertise low prices, it is essential to determine the reliability of the supplier prior to making a purchase. Is the Internet-based supplier a legitimate business? Does the supplier’s website have a phone number to call if there is a problem? What is their return policy? Will the warranty be voided if the item is imported? It is also important to consider all the shipping costs and duties associated with importing an item. If the Internet-based supplier is located in another country and questions arise about the company or the product, the branch overseeing that country should be contacted. Depending on the volume and savings that can be experienced, that branch may be asked, in advance of any purchase, whether it is cheaper for that branch to purchase the items or to act as the freight forwarder for the items purchased.

112. Significant savings in money and time can be achieved by coordinating the suppliers used in the construction and maintenance of Kingdom Halls, Assembly Halls, and field missionary homes. Some suppliers operate nationally or regionally and are willing to provide better purchasing terms when approached by the branch. Further details on this matter can be found in Local Design/​Construction Department Guidelines (DC-3) and Purchasing Guidelines (PD-1).

113. Purchasing for Bethel Family Members: In some countries, it may be difficult for Bethel family members to purchase some items on their own. For example, the branch may be located a long distance from stores or shopping areas. Or perhaps family members are not able to obtain banking cards and thus cannot make online purchases. In view of these circumstances, a branch may decide that the Purchasing Department should assist with some personal purchases. These would be limited to suppliers that the branch is already using for branch operations. On the other hand, assistance with personal requests should be limited in lands where it is easy for the family to do their own buying. This is often more advantageous for the Bethelite. For example, a private purchase may result in a better warranty. If the branch assists with personal purchases, care should be taken to avoid conflicts with accounting or tax laws. Additionally, requests from departments should have higher priority than personal requests.

114. Some branches provide a commissary (Bethel Shop) as a service to members of the Bethel family. Historically, the Bethel Office (Bethel Home) has taken the lead in organizing the commissary, overseeing the personnel, and choosing the items to stock. However, the Branch Committee should consider whether it would be more efficient to merge the inventory handling of the operation under the oversight of the Purchasing Department. Regardless of which department oversees the commissary, the Purchasing Department should care for the buying of items and the maintaining of bulk inventories used to replenish the commissary. Where possible, an effort should be made to have a consistent list of items and to adjust that list only when the needs of the family change. Preference should be given to obtaining items from suppliers who are able to deliver to the branch instead of sending brothers out to shop in markets.

115. Advanced Purchasing Issues: Some business transactions conducted by the branch are complex and must be carefully documented in writing. For example, there may be a need to document various aspects of the business transaction clearly, in addition to price​—such aspects as payment terms, delivery, return policy, installation, and warranty support. In other cases, it may be necessary to hire outside laborers or contractors to work on branch property, to purchase an expensive piece of equipment, or to engage the services of a firm. In these situations, it is good to have a detailed, written contract containing a statement of work and to have all parties sign it. When outside laborers work on branch property, care must be taken to limit the risk to the organization should they get injured, injure others, or cause damage to branch property. In some countries, courts can award large damages to injured parties. If insurance is common in your country, does the outside worker or contractor have adequate coverage and are all certificates on file at the branch? Have the outside workers agreed not to hold the branch responsible? It is often good to involve the branch’s Legal Department and the Treasurer’s Office, Attention: Global Risk Management Desk, to assist with these matters. For major contracts, the Treasurer’s Office can assist as indicated in the Global Assistance Arrangement Guidelines in the appendix of the Branch Accounting Department Guidelines. The Guidelines for Procuring Contracted Services (PD-2) may also be of assistance.

116. Some complicated purchases or contracts require complex negotiations. These may include negotiating with suppliers where there are no other local options, high-cost or high-risk transactions, and purchases of items considered strategic or highly sensitive to the branch. This could include contracts for design or construction services. In such instances, it is often good to benefit from the advice of others at the branch who have practical experience in the matter as well as those who have good business skills. (Prov. 11:14) Contact the Global Purchasing Department Regional Support team for assistance in how to care for negotiations that are more complex.

117. Keeping on hand a small inventory of supplies that are used by one or more departments can save time and money. The Purchasing Department should be responsible for the inventory, as this helps reduce duplicate stocks and staffing. Very small branches, however, may simply assign a brother or a sister to care for the entire branch inventory in addition to other assignments. (Neh. 13:13) Items are considered for inventorying if they are frequently used, if the usual acquisition time is unacceptable (such as for critical spare parts), or if purchasing larger amounts at one time is cost-effective. Typically, no more than a four-month supply should be maintained. A simple reorder-point system factoring in usage, lead time, and price will ensure that the correct quantities are stored. As the rate of usage determines the amount of stock, it is essential that inventories, including stocks of critical spare parts, are maintained and reviewed on a regular basis. Further assistance with managing inventories can be obtained from the Global Purchasing Department Regional Support team.

118. The branch facilities should be examined periodically to identify any equipment or items that are not needed. Items that are in excess of what is required may be disposed of in several ways. These items may be used by other departments or branches, returned to the supplier, sold, or scrapped. Branch Committee approval is needed to dispose of an item prior to pursuing these options. In the case of the disposal of large equipment and vehicles, Publishing Committee approval is required before initiating the sale.

119. Department Members: Those caring for purchasing, receiving, and inventorying materials are handling donated funds. They must be trustworthy and diligent in caring for their assignment. The overseer must appreciate the need to serve the interests of the organization as a whole, including the many departments within the branch that rely on the Purchasing Department for goods and services. (Jas. 3:17, 18) He must be a good communicator, conscious of training others, able to delegate where necessary, not opinionated or a procrastinator. An understanding of business matters and computer skills is helpful. He will avoid sharp practices, maintaining respect for Bible principles and legal requirements.​—Titus 3:1, 2.

120. Getting Help: Good communication is essential in making sound purchasing decisions. Therefore, assistance may be requested from the Primary Purchasing Branch or the Global Purchasing Department Regional Support team. Routine purchasing matters, such as clarifying specifications, questions about specific suppliers, requests for pricing, and reporting claims, may be cared for by e-mail. The department e-mail address used should be an address monitored by more than one person in the Purchasing Department as well as appropriate Branch Committee members rather than a personal e-mail address. Written correspondence should continue to be used when requests are made for extensive research or when direction is needed. Further instructions on the day-to-day operation of the Purchasing Department can be found in the Purchasing Guidelines (PD-1) and the Purchasing Guidelines Training website.

121. Bible prophecy indicates that the work of the earthly part of Jehovah’s organization will accelerate as we near the end of this system of things. (Isa. 60:22; Hab. 2:3) We see this taking place. As the number of Kingdom proclaimers increases, more facilities are needed. The acquisition, renovation, or new construction of Kingdom Halls, Assembly Halls, school facilities, and remote translation offices supports the growth in the field.

122. Since this work requires great effort as well as dedicated funds, advance planning is essential. Therefore, each branch is requested to have a master plan for Kingdom Halls, Assembly Halls, and field residences for special full-time servants. From these master plans, a recommended budget is prepared annually, outlining the funds needed for the next three years. Annual budgets are also required for ongoing maintenance and small projects at the branch. When a larger construction project is identified, clear definitions of scope, accurate cost estimates, studies of life-cycle costs, and realistic schedules are needed. The Regional Design/​Construction Department (RDC) assists with this. It is expected that once approved, projects will be monitored and completed within the proposed scope, budget, and schedule. Each project should be planned with the goal of zero injuries, in both a spiritual and a physical sense. In view of the dynamic nature of the work of the organization at this time, we have to plan, design, and construct in a way that allows for flexibility as we follow Jehovah’s fast-moving celestial chariot. (Ezek. 1:20, 28) Proper attention to maintenance must also be given in order to preserve the substantial investment made.

123. Jehovah is the great Designer, Architect, and Builder, as well as the Maintainer of his creative works. (Heb. 11:10; ftn.) We look to him for direction on how to accomplish this significant work.

124. The Worldwide Design/​Construction Department (WDC) is a headquarters department that works under the direction of the Publishing Committee. It oversees the construction, renovation, maintenance, and real estate activities of all facilities worldwide. This includes the acquisition and sale of property as well as the planning, designing, engineering, constructing, renovating, and maintaining of buildings on those sites. The WDC is also responsible for monitoring the budget allocated each year for facility operations, maintenance, and construction, the scheduling of global projects and the administering of construction arrangements. It ensures that each project adheres to the approved scope, budget, and schedule. Under the direction of the Personnel Committee, the WDC coordinates the appointment and assignment of construction servants, Assembly Hall servants, Bible school facility servants, full-time construction commuters, construction volunteers, part-time construction commuters, and Local Design/​Construction volunteers. It makes sure that open communication and a spirit of unity are maintained by all involved in the planning, design, construction, and maintenance of facilities. The Design/​Construction Guidelines (DC-1) provides additional details regarding planning, construction, and support for all projects.

125. There is a Regional Design/​Construction Department (RDC) in Africa, the Americas, the Asia/​Pacific region, and Europe. Each of these world headquarters departments operates as an extension of WDC to oversee the work of construction, maintenance, and real estate in a specified region. Their primary role is to support and provide direction to branches with regard to planning, construction, and maintenance of Kingdom Halls, Assembly Halls, and branch facilities as well as the purchase and sale of property and to provide training in these areas. They also assist with the preparation of planning options reports, concept design proposals, design programs, and they oversee the preparation of construction documents and detailed cost estimates. They coordinate renovation schedules as well as maintenance training visits and support.

126. The Local Design/​Construction Department (LDC) functions under the direct oversight of the Branch Committee but in accord with the guidelines provided by headquarters. The Local Design/​Construction Department Guidelines (DC-3) provide direction on the operation of the LDC. This department coordinates the planning, property acquisition and sale, design, construction, maintenance, and operation of Kingdom Halls, Assembly Halls, field residences for special full-time servants, and other small projects, as well as provides assistance with disaster relief efforts in a branch or a territory. Full-time construction volunteers and special full-time construction servants are assigned to support this work as needed. The LDC works closely with the RDC and the Branch Committee to coordinate all projects under its care.

127. In the case of disaster relief, the LDC does not direct the relief efforts. The Branch Committee assesses the needs and directs the relief work by means of one or more Disaster Relief Committees. In most cases, the Branch Committee will use LDCs to coordinate any needed reconstruction activities after the initial relief work has been carried out.

128. Oversight of the LDC: The responsibilities assigned to the LDC require extensive work and cost, a large number of people, and cooperation with other Bethel departments. Therefore, it would be advantageous for the LDC overseer to be a Branch Committee member, provided that he has the capability and sufficient time to handle this assignment.

129. Role of the Branch Committee: The Branch Committee is responsible for the operation and maintenance of all theocratic facilities within the branch’s assigned territory. The committee approves the updated local master plans and the yearly recommendations for spending on Kingdom Halls, Assembly Halls, and field residences for special full-time servants. The Branch Committee should carefully monitor the number of personnel at the branch facility and any remote translation offices to ensure that it is in harmony with staffing guidelines provided by the Governing Body committees. The committee assures that adequate safety and training programs are in place and that all adhere to these programs.

130. The Branch Committee should try to anticipate necessary changes to the facilities some years in advance to allow adequate time for finding suitable solutions. If approval is given to investigate the Branch Committee’s request further, the WDC will be directed to serve as the representative of the Publishing Committee to review the branch’s needs, develop options to meet those needs, and implement the approved solutions. At times the WDC will initiate these discussions at the direction of the Publishing Committee.

131. To assist with planning, the WDC assigns a representative to work with two Branch Committee members and a representative from the RDC. These brothers form a Planning Work Group that investigates solutions to the facility needs within a branch territory. As projects develop, the WDC will delegate as much work as possible to the RDC, local construction oversight, the local branch, and in the case of large branch expansion projects, Construction Committees. This will help speed up the work.

132. During the investigation and development of a project, the two Branch Committee members designated as contacts for communicating with the WDC are responsible for providing updates and seeking the direction of the entire Branch Committee as needed. The WDC will schedule meetings with the entire Branch Committee on significant matters or at significant milestones in the different phases of a project. For example, in phase 1, the Branch Committee provides information on staffing requirements, facility condition, and future needs. The Branch Committee reviews the planning options report at the end of phase 2, the concept design proposal at the end of phase 3, and the final design layouts at the end of phase 4. Following this procedure will ensure that the Branch Committee is fully aware of what is being developed and has an opportunity to make the needs of the branch known. At these meetings, it is imperative that Branch Committee members ask any questions or make clear any reservations they have regarding a project so that these can be addressed during the planning phases. As representatives of all the occupants of the proposed facilities, the Branch Committee will have good suggestions that should be factored into the planning. The Branch Committee should always feel free to contact the WDC when questions arise.

133. The Branch Committee needs to give its full support to ensure that projects proceed as approved. Branch Committee members will not be expected to serve on Construction Project Committees or Construction Committees. Nevertheless, the Branch Committee will continue to be consulted at key junctures. Construction Project Committees will work under the oversight of the WDC. Construction Committees will work under the oversight of the RDC.

134. Project Development: This consists of seven phases: (1) Investigation, (2) Planning, (3) Concept Design, (4) Design Development, (5) Construction Documents, (6) Implementation, and (7) Closeout. How these phases are implemented depends on the type and size of the project. Once an option has been selected, a concept design proposal will be prepared for each major project. It includes a summary of the project cost, scope, and schedule and sets out the parameters of the project.

135. Project Approvals and Cost Tracking: Proper approval, budgeting, and cost tracking for construction help to assure that dedicated funds are used to the best advantage. The Project Tracking module of HuB is used to approve building and property related projects and to track their costs. Approval for most projects is requested by submitting a Project Approval Request (DC-41). Larger projects are approved at headquarters during the concept design phase, and thereafter DC-41 forms are submitted for funding approval in accord with the approved concept design. The branch may also choose to use this module for local maintenance projects. When the total cost of a project is higher than the branch approval level, the project should be reviewed by the RDC before the project request is submitted to headquarters via HuB for approval. Additional details with regard to obtaining project approvals are shown in the document Branch Facility Work Types (DC-40).

136. Each year the RDC will work with individual branches to develop a construction budget that should include all materials and fixed assets to be purchased for the project, whether it will be capitalized or expensed in the accounting records. The monthly financial activity related to an approved project along with a brief progress report will be submitted to headquarters through HuB. In some cases, such as some Kingdom Hall projects, where project expenses are tracked with a separate software outside of HuB, each month the branch will enter a summary of the financial activity for each project in HuB. A Project Report (DC-43) is also required monthly for all projects with a budget greater than USD 1 million. At the close of a project, the branch will update HuB to indicate that the project is complete. A Final Project Report (DC-44) should be submitted in HuB for all projects approved by headquarters. In some cases, the WDC may ask the branch or the RDC to explain why the project was or was not completed as planned. For all projects, including locally approved projects, a final report that includes lessons learned should be reviewed by the departments involved so that improvements can be incorporated into future projects.

137. Once the scope, schedule, and budget of the project have been documented and approved, they should not be changed. Without reducing the quality of the approved design, every effort should be made to complete the project below or within the original budget through careful project management, procurement planning, contract administration, standardization, and the use of global and regional purchasing arrangements. The brothers assigned to implement a project will be required to adhere closely to the approved scope and to the approved schedule so that there are no unnecessary delays, which add to the cost and will inconvenience the branch. If adjustments must be made because of developments outside our control, a Project Change Order Request (DC-42) should be submitted for approval. If the project was originally approved at headquarters, the request should be reviewed by the RDC prior to being submitted to the WDC.

138. The LDC cooperates with the Service Department to maintain master plans outlining where Kingdom Halls, Assembly Halls, and field residences for special full-time servants are needed. Based on this plan, the Branch Committee consults with the RDC each year to prioritize the work and to develop and submit a spending plan for the next service year to the Publishing Committee. The spending plan details the current needs in the branch territory in the following areas: (1) the number of properties expected to be purchased; (2) the number of planned new Kingdom Hall projects; (3) the number of planned Kingdom Hall major renovation projects; (4) the number of planned assembly venue projects; (5) the number of planned special full-time servant field residence projects (including circuit overseer apartments); (6) the number of maintenance facility inspections to carry out; (7) the number of construction servants, Construction Groups, and Assembly Hall servants needed to support the program effectively; and (8) the total amount in USD projected to be spent on the above activities during the service year.​—See 5:152; 6:154.

139. Based on the approved annual spending plan, the Branch Committee may approve individual projects (either LDC or branch projects) with a budget of less than the maximum amount that will be assigned to the branch each year. Projects that exceed the spending limit should be submitted to the WDC for consideration. All congregations will have the opportunity to support the global construction program by means of a monthly donation by resolution from their congregation funds for this purpose. Contribution boxes should also be set up for specific local projects.

140. Facilities Maintenance: The premature deterioration of facilities and equipment is costly to the organization. The Branch Committee has the responsibility to emphasize the importance of maintenance at each facility in its branch territory and to make sure that a maintenance program is being followed. Scheduled maintenance along with timely repairs preserves the significant investment in buildings and equipment. By practicing good preventive maintenance, materials and equipment can achieve or even exceed their life expectancy. Materials and equipment should not be replaced prematurely. The Branch Committee should be conscious of the overall condition of each facility in its branch territory. The Branch Committee should ensure that sufficiently trained and qualified people are assigned to handle maintenance. The RDC will assist branches with implementing these principles.

141. Just as the LDC is the single point of contact that the Branch Committee uses to care for facilities in the field, the branch should designate a Branch Committee member to be the single point of contact for issues related to operating branch facilities. The work involved includes coordinating space usage, energy conservation efforts, regulatory matters, and validating that project requests are in harmony with the Life-Cycle Analysis Workbook (DC-97) and are within the branch’s facility maintenance budget. The contact would no doubt make use of personnel from related departments at the branch to accomplish this work. Depending on the size of the branch or if the coordination of these matters becomes greater, the assigned Branch Committee member can use a responsible brother to help him coordinate these matters. In the case of large branches, it may be practical to have a small Facilities Desk to accomplish this work. Generally, the Branch Committee member who is selected should be one of the two members of the Planning Work Group who works along with the WDC in planning facility needs.

142. The branch Maintenance Department focuses primarily on maintaining the branch facility by following the yearly schedule developed for preventive-maintenance tasks for the facility. Facility-condition inspections identify areas in need of attention and are part of the yearly tasks that should be carried out by the Maintenance Department. Apart from routine maintenance, inspections, and repairs, the maintenance staff should have minimal involvement in projects, such as replacement of finishes, reconfiguration of interior work spaces, and upgrades of building systems and equipment. In an effort to maintain as small a maintenance staff as possible, when these small-scale projects become necessary, it may be best to outsource this work to companies, commuters, or temporary volunteers. Depending on the nature of the upgrade to the building systems or the replacement of equipment, design input and personnel support from the RDC may be required. Requests for large or costly equipment replacements and system upgrades should be reviewed by the facility contact and the RDC to determine whether this work fits into the overall life-cycle plan of the building.

143. When large-scale projects, such as new buildings, major additions to existing buildings, or extensive renovations, are approved, the WDC, along with the assigned RDC, will work with the branch to assign a construction organization that is separate from the Maintenance Department. Additional direction related to maintenance is provided in the Facility Maintenance Guidelines (DC-91).

144. The RDC will maintain close contact with each branch to provide the needed support. Each year the RDC will work with the branches to work out a recommended facilities budget for maintenance related work. All (nonproject) machinery or equipment fixed assets and routine (nonproject) building repair and maintenance expenses should be included in the facilities budget request. Implementing a routine preventive-maintenance program involves less time and stress than caring for unexpected breakdowns. The WDC’s maintenance training program provides a yearly comprehensive schedule for preventive maintenance specific to the needs of the facilities. This information can be used to develop an in-house training program. Each branch should endeavor to perform its own maintenance of buildings and equipment. However, if assistance is needed with ordering parts, doing technical repairs, or arranging for specialized training, please contact the RDC.

145. Training and cross-training are essential and need to be included as part of the work of the Maintenance Department. Generally, 50 percent of the maintenance staff should be devoted to caring for preventive-maintenance work as indicated by the yearly schedule for the branch. The other 50 percent would care for other maintenance activities, including emergencies, follow-up repairs, necessary involvement in small projects, and minimal personal requisitions as the schedule permits. The Branch Committee will need to prioritize the requests for project involvement and personal requisitions, so that scheduled preventive maintenance is not neglected. It is the responsibility of the branch to render support to all facilities in its branch territory. The branch Maintenance Department is responsible for the maintenance of facilities at the branch location.

146. The LDC is responsible for the maintenance of facilities in the field, including Assembly Halls, remote translation offices, dedicated school facilities (that are not at the branch), field residences, and literature depots. To the extent possible, local volunteers should provide the maintenance support for these facilities. If additional skilled support is needed, the LDC should contact the branch Maintenance Department. If further assistance is needed, please contact the RDC. The Branch Committee can best determine how to organize the work in the branch territory.​—See 6:156.

147. Remote Translation Offices (RTOs): Whenever practical, the facility used for translation work should be located where the target language is actively used. The Branch Committee may initiate a request to establish a remote translation office, perhaps even relocating a translation team from the main branch facility. This also makes more space available at the branch. Although RTOs are considered branch facilities, they typically should not be set up or operated like a branch.

148. There are many ways facilities can be used as RTOs and residences. There is much flexibility regarding the use of commuters and the manner in which support services are provided. This flexibility helps to keep the facility needs as simple as possible. Additional direction with regard to remote translation offices is found in the Remote Translation Office Facility Guidelines (DC-15). Good cooperation and prompt follow-through by all involved will help ensure that approved RTOs are set up and put into operation as quickly as possible.

149. Kingdom Halls and Assembly Halls: Kingdom Halls and Assembly Halls are centers of true worship in the local community. The Branch Committee should be attentive to the condition of existing meeting places and to the need for new ones. By practical planning, attention should be given to using existing Kingdom Halls to their maximum seating capacity by reasonably increasing the number of publishers per congregation as well as the number of congregations per Kingdom Hall. Although our meeting places should be simple, they should have a level of personal comfort conducive to theocratic education. There should be adequate sanitation, including clean water to wash hands. There should be provisions for clean drinking water, good sound equipment (when used), adequate shelter from normal weather conditions, and good ventilation and lighting. The meeting places must be relatively easy to clean and maintain so that they are acceptable as places of worship. Further details related to organizing the Kingdom Hall construction program are outlined in the Kingdom Hall Design/​Construction Guidelines (DC-14).

150. Each branch should have a limited number of standard plans adapted to local conditions and expectations. The halls should be sized slightly larger than the expected regular meeting attendance and ideally located for use by more than one congregation. Generally, Kingdom Halls are not constructed for congregations with fewer than 30 publishers. However, there may be exceptions. In all cases, the congregations must be able to cover the operating costs and to maintain their assigned Kingdom Hall.

151. Although Assembly Halls can be convenient, they are not always cost-effective. In many cases, suitable venues can be provided by renting local facilities. However, if renting is not viable, it might be appropriate to consider building. Assembly Halls should be well-located, simple, practical, easy to maintain, and of modest appearance. If a need arises for an Assembly Hall near a border with an adjacent country, an analysis should be done to see whether it is feasible to share the facility across borders. Planning in this way helps not to impose expensive or time-consuming burdens on the brothers. In some cases, it may be practical to construct a Kingdom Hall with a covered expandable seating area for use by one or two circuits. The RDC will assist in planning and providing design criteria for Assembly Halls and expandable Kingdom Halls. Further details can be found in Assembly Hall Design/​Construction Guidelines (DC-13).

152. The LDC takes an active lead in planning the locations, purchasing the properties, considering the buildings’ potential uses, and setting the priorities. This department works in close cooperation with the Service Department to maintain master plans for Kingdom Halls and Assembly Halls. (1 Pet. 3:8) The master plans identify the needs in the field for new construction and major renovations and help establish the priorities. The LDC is responsible for taking the lead in forming the master plan and in ensuring that the approved plan for the year is executed. In addition to expediting the work, attention should be given to reducing the cost of Kingdom Halls and Assembly Halls by considering the standardization of design and materials; by using global, regional, and local purchasing arrangements; and by making use of local resources.​—See 5:138.

153. The number of Bethelites in the LDC should be kept to a minimum. The focus should be on having those in the field accomplish as much of the work as possible. Construction servants, full-time construction volunteers, and commuters should be assigned to oversee the work in the field. In many cases, a group of servants will move from project to project. Local congregation volunteers should provide most of the labor and be involved in all aspects of the work. The Local Design/​Construction Department Guidelines (DC-3) provide direction on the operation of the LDC and the use of local workforce.

154. The RDC should maintain close communication with the LDC. The RDC may assign a representative to visit periodically to review the progress of the Kingdom Hall and Assembly Hall program and provide assistance to the branch.

155. It is recognized that for the efficient operation of Construction Groups and field representatives, travel is needed. In general, the branch should provide the necessary vehicles or direct that public transportation be used for the majority of work-related needs. While it is expected that the vehicle assigned to each Construction Group would be used for the daily commute to the project and for most necessary transport related to theocratic construction assignments, it is understood that in some cases brothers will have their own vehicles that can be used. If using a personal vehicle is more cost-effective than using other transportation, a reimbursement based on the approved rate may be given.

156. Bible Schools: The Service and Teaching committees generally prefer to keep the number of permanent buildings for school facilities to a minimum. Generally, Assembly Halls rather than branch facilities should be considered as sites for school facilities. If it is decided that a permanent facility is necessary, the WDC will work with the RDC and the branch to determine the optimum size, capacity, and location of the facility.

157. While it is desirable to minimize expense, the basic requirements for a school include a classroom with adequate seating and reasonable space between students, good lighting and ventilation, adequate audio and video equipment, sanitary bathroom facilities, and modest accommodations with study areas for students and instructors.

158. Real Estate: The WDC coordinates all real estate responsibilities for the organization. This includes coordinating all real estate purchases, sales, leases, financial analyses, and broker relationships, as well as evaluating and processing the sales of any donated properties that are not suitable for or needed by the organization. The WDC is assisted by qualified brothers in the RDCs, who are familiar with the unique business, cultural, and real estate environment in their assigned region.

159. The day-to-day real estate record-keeping should be handled by the Branch Real Estate Desk (BRED) in the Accounting Department of each branch.​—See 5:24.

160. Kingdom Hall and Assembly Hall properties that are part of the approved annual budget can be purchased with Branch Committee approval after thorough consideration of their suitability, based on information supplied in a Property Evaluation (DC-31) and a Building Evaluation (DC-32) if the acquisition includes existing buildings. These property purchases are coordinated by the LDC. If the cost of a Kingdom Hall or an Assembly Hall property is greater than the maximum purchase amount assigned to the branch each year, the Branch Committee recommendation should be submitted to the WDC. When a very expensive or complex project is being considered, the Branch Committee will work with the RDC to submit a concept approval request by means of a Kingdom Hall Construction/​Renovation Proposal (DC-24) prior to expending substantial effort developing the project. All property purchase requests should be made by means of a Project Approval Request (DC-41).​—See 5:163.

161. The LDC initiates the sale of Kingdom Halls, Assembly Halls, and special full-time servant field residence properties that have been identified as unneeded in harmony with the master plan. If the fair market value of a property is greater than the maximum approved sale amount assigned to the branch, the Branch Committee recommendation should be sent to the WDC for direction before marketing. All property-sale requests should be made by means of a Project Approval Request (DC-41). The sale of branch properties that are no longer needed will be coordinated by the WDC.

162. Other property should be purchased only in conjunction with an approved project. The WDC and the RDC will work with the branch to determine how best to identify needed property or existing buildings for a project, such as a remote translation office (RTO), school, or depot. Generally, the Branch Committee is in a good position to make a recommendation regarding the best location for a given project. In many cases, experienced brothers in the field are well-qualified to identify and determine the suitability of a property.

163. Donated properties should be evaluated in the same manner. If it appears that a donated property should be retained for organizational needs, a request should be submitted to the WDC and justified in the same manner as a property being considered for purchase.​—See 5:160.

164. Rental of property by means of an annual or a multiyear lease can be a cost-effective way of filling the need for a branch, a Kingdom Hall, or a remote facility, such as an RTO, a school, or a depot. If the need is temporary, leasing is often the best solution. However, leasing for many years is usually avoided. An evaluation of the benefits of leasing versus purchasing will be made for each project. For any complex residential leases and all commercial leases, contact the RDC for further direction before signing or renewing the contract. Routine residential leases can be approved by the Branch Committee.

165. Volunteers: In addition to those whose Local Design/​Construction Volunteer Applications (DC-50) have been approved, there are four categories of workers available for local and international construction projects. These are: (1) construction volunteers, (2) part-time construction commuters, (3) full-time construction commuters, and (4) construction servants.

166. If a construction volunteer is skilled and has indicated that he or she would be willing to accept a foreign assignment, the branch should forward an electronic copy of his or her application to the WDC. Construction volunteers who have proved effective in an assignment and are well-organized, skilled, and available for long-term assignments may be encouraged to submit an Application to Become a Member of the Worldwide Order (A-8).

167. Consideration can be given to appointing single sisters as construction servants who have served as construction volunteers for at least three months. However, discretion should be used so that only single sisters who have the needed spiritual, emotional, technical, and health qualifications to do well in long-term assignments are encouraged to apply. Single sisters who are approved for a foreign assignment would generally be assigned to a branch construction project where the branch has verified that it is able to care for them adequately.

168. Although the need for construction varies, maintenance of facilities is always of importance. It is vital that brothers and sisters see the need to make themselves available for this work. Branch Committees can do much to keep this need present in the minds of the brothers in general. It is helpful periodically to prepare a letter that outlines the need in the branch territory and includes some encouraging expressions from those in the work. The LDC should put emphasis on training through the local construction arrangements with a view to making skilled brothers and sisters available for other assignments.​—2 Tim. 2:2.

169. Although the WDC may assign construction volunteers, construction servants, and expatriate construction servants to any theocratic construction project, it is the responsibility of the Branch Committee to oversee the spiritual welfare of these individuals serving in its branch territory. Therefore, arrangements should be made for construction servants, Assembly Hall servants, and Bible school facility servants to receive regular shepherding visits by members of the Branch Committee, representatives of the LDC, or other mature elders selected by the Branch Committee. Regardless of the urgency of a project or the abilities of an individual, the high spiritual standards required for those in special full-time service should never be lowered.​—See 9:113, 117.

170. Safety: As Jehovah’s servants, we adopt his view regarding the sacredness of life. Our view of safety is therefore a reflection of our spirituality. With regard to construction and maintenance, safety is always of greater importance than speed or convenience. The Branch Committee should take the lead in reflecting and encouraging a culture of safety by means of its comments, by support of continuous safety training, by providing safe equipment and protective gear, and by its willingness to remove from the workplace those who flagrantly disregard safety procedures. The minimum safety requirements to be followed on all construction and maintenance projects are outlined in Working Together Safely​—Standards for Theocratic Construction and Maintenance (DC-82).

171. A primary goal on any maintenance or construction project is to have zero injuries. Three key factors in fulfilling this goal are the attitude of those in oversight, preparation to avoid accidents, and careful attention to avoid near-miss accidents. For this reason, the Job Hazard Analysis (DC-83) was developed. The DC-83 allows those who oversee a group of workers to plan each task with the goal of avoiding risks or mitigating risks if they cannot be avoided by a change in the work plan. The preparation of DC-83 forms and the review of them with the workers should be a regular part of the work plan on any project. If new workers are assigned to a task, the key points of the DC-83 should be reviewed with them before they start.

172. Air Conditioning, Stoves, and Other Electrical Equipment: If an individual is physically ailing and a doctor recommends air conditioning, the individuals involved should take the matter up with the Branch Committee. The Branch Committee will consider the matter and make its recommendation to the Publishing Committee.

173. In any country where the variation in climate makes air conditioning desirable during a considerable part of the year, the Branch Committee can consider the matter and make its recommendation to the Publishing Committee. If air conditioning is approved, the branch will pay for the equipment, installation, maintenance, and cost of operating it. The installation should be made by the branch in each case. The Branch Committee will need to take into consideration whether structural changes are necessary. Also, the capacity of the electrical wiring in the building should not be overloaded.

174. The same applies to any installation of stoves. We do not want to rewire buildings for the sole purpose of installing stoves. However, a stove may be provided in a Bethel residence room in the case of new construction.

175. Normally refrigerators, microwaves, and other electrical equipment are personal items to be obtained at cost to the individual. However, no charge will be made for operating stoves or air conditioners or for such services as dry cleaning (if a branch has its own equipment) and alterations to clothing. Such services will operate on a contribution basis.

176. If dry cleaning is handled outside of Bethel, the branch may pay for the first two pieces of dry cleaning per person per month. Two pieces would include one suit or two separate garments. Any costs for dry cleaning beyond that amount would be covered by the individual Bethel family member.