# LCMS Convention Proceedings_St. Louis Missouri_1944_S564
# Machine transcription, uncorrected — CHI Digital Archive (demonstration)

Report of ‘Board for Higher Education 565.

d. ‘Endowment funds;
e. ‘Loan funds.

When loan funds and agency funds are ‘not handled, these divisions
ally will not appear. It is considered vital, however, that the.

t funds contain the complete assets of the institutions as previ-
ously discussed. It is also considered of great importance. that a
record of the existing endowment. funds be maintained locally as weil
as“ at St. Louis, in order to expedite reporting to the proper agencies
ith tespect to this group of funds. This does not in any manner
nply a. change in the current procedure of deposit and ‘control of ‘all
dowment funds with St. Louis. It is merely considered desirable
ve an accurate record also at the institutions.

he current expenditures should be divided into distinct groups, so
th: educational expenditures are segregated from those of the
Auxiliary. enterprises, such as dining hall and dormitory. If this, sys-
tem. were adopted by all of Synod’s institutions, cost analysis would
become a simple matter and would become strictly comparable from
school to school. Cost analyses are considered absolutely essential.
‘or the understanding of the involved financing of the institution. For
the past ‘two years Bronxville has operated under this method of
accounting and has found it quite satisfactory. Details of the plan
have been carefully worked out and are submitted in single copy to
‘the. Board of: Higher :.Education. Naturally, they cannot: be repro-
-.duced in a report of this type. Under any circumstances, the institu-
tions should adopt accounting methods which are in keeping with the
.current practices for American colleges and universities,

3

It is realized that most of the institutions do not have expertly.
trained personnel for the maintenance of their books of account. In -
spife of this fact, the new system would not be beyond their abilities.
In fact, it is considered simpler than the one in use. However. this
is so important a phase of institutional administration that it would be
true economy either to secure trained personnel or to provide training
in accounting at synodical cost for the existing personnel. It cer-
tainly appears feasible to call together the persons responsible for
maintaining the books of account at our schools for a three-day con-
ference. in‘some midwestern city in order to ‘instruct them fully in
the procedures to be observed in their accounting. This would cost
some money, but more money will be saved in the long run.

: Recommendations : .
It is recommended that the present financial accounting system at
all of the institutions be changed to a cost accounting system,
that it imclude divisions for 1) current funds, 2) endowment
funds, 3) plant funds—essentially in accordance with the prac-
tices adopted by American colleges as set forth in Financial

Reports for Colleges and Universities; but with due regard for —
the needs of the synodical Office of Audit; and that on the basis