# LCMS Convention Workbook_St. Louis Missouri_1981_S209
# Machine transcription, uncorrected — CHI Digital Archive (demonstration)

ADMINISTRATION 207

Decrease in cash resulted from:
Cost of data processing software

purchased 124,419 49,682
Equipment purchases 2,911 3,143
Increase in contributions receivable 4,567 16,267
Cost of investments purchased 56,309,149 39,602,690
Increase in accrued interest and dividends 34,285 4,147
Increase in amount due from insurance company 129,766
Other decreases-~net 734

56,605,831 39,675,929

INCREASE (DECREASE) IN CASH S$ (291,205) S$ 369,074

See notes to financial statements.

NOTES TO FINANCIAL STATEMENTS
CONCORDIA HEALTH PLAN

December 31, 1980

NOTE A--SIGNLIFICANT ACCOUNTING POLICIES

Investments are carried at amortized cost. Bond premiums and discounts
are amortized on a straight-line basis over the period from date of
purchase to date of maturity.

All office space is rented from The Lutheran Church - Missouri Synod.

Equipment and data processing software is recorded at cost. Depreciation
is computed on the straight-line method over the estimated useful life of
the equipment, Amortization of data processing software will begin when
the software is fully developed and in use for its intended purpose.

The cost of certain administrative expenses incurred for the benefit of
each of the Concordia Plans (Retirement, Survivor, and Health) and the
cost of shared equipment are allocated to each of the plans based upon
management's estimate of the use of the service.

An estimated liability is provided for benefits to members or dependents
from whom contributions have been waived due to disability or death. The
amount of the liability repreaents the present value of the future
benefits for members currently eligible for benefits without payment of
contributions.

NOTE B--DESCRIPTION OF PLAN

The Plan has been established for the ministers of religion and lay
workers of The Lutheran Church - Missouri Synod and its controlled

organizations. The Plan has deen made available to member congregations
and other affiliated organizations. The Plan is administered by a Board
of Managers which is appointed by tne Roard of Directors of The Lutheran
Church - Missouri Synod. Not less than one-half of the contributions are
paid by the emplover organization. On January 1, 1980 the name of tne
Pian was changed to the Concordia Health Pian from the Concordia Welfare
Pian.

After satisfaction of deductible amounts the Pian provides for
reimbursement of major medical expenses up to a lifetime maximum of
$500,000. With varying limitations on amounts, the Plan also provides
for dental, temporary disability income, and lump sum death benefits. A
more comprehensive description of the Plan and its benefits is contained
in the pamphlet Summary of Concordia Health Plan. This pamphlet is
available from the Board of Managers.

NOTES TO FANANCIAL STATEMENTS--COANT'"

Tne major medical, dental, and disability income coverage is self-
insured. Death benefits, except for amounts exceeding $2,900 pavable
upon the death of a dependent, are fully insured through Prudential
Insurance Company.

The Plan can be terminated by the Lutheran Church - Missouri Synod in
convention. Based upon such action the Board of Managers would then
dispose of the net assets of the Plan as instructed. The Plan prohibits
any part of the net assets being directed to purposes other than for the
exclusive benefit of members and their dependents.

NOTE C--AMOUNT DUE FROM INSURANCE COMPANY

Tne amount due from insurance company is an experience balance which
under the terms of the policy is due from the insurance company and
represents the insurance company's estimate, based on the latest
information available, of the difference between premiums paid by the
Plan plus interest earned and the sum of claims paid, claims providec
for, and the insurance company's retention.

NOTE D--INCOME TAX STATUS

The Internal Revenue Service has ruled (March 8, 1979) that the Plan
qualifies under Sections 511 through 515 of the Internal Revenue Code
(1RC) and is, therefore, not subject to tax under present income tax law.
Once qualified, the Plan is required to operate in conformity with the
IRC to maintain its qualification. Since receipt of the most recent
determination letter the Plan has been amended and a ruling from the IRS
has not as yet been requested. However, it is the opinion of the Plan's
management that the Plan will continue to qualify under Sections 511
through 515.