Incorrect. It is based on a formula, a + b + c = z. Where a is the amount of time you have been a member, b is the number of posts you have made, and c is the amount of rep you have. Z is the amount of points you give when you rep someone. At least, that is how it works by default, it can be adjusted by the forum admin in any way they feel like doing so. At least when I went looking for answer to such questions that is what I remember. As to why they are giving neutral rep, they are probably new.
You must spread some reputation before giving it to LiquidTruth again. thanks for taking care of that LT