# LCMS Convention Workbook_St. Louis Missouri_1983_S156
# Machine transcription, uncorrected — CHI Digital Archive (demonstration)

156 ADMINISTRATION AND PROGRAM IMPLEMENTATION

Appreciation

The Board of Managers and the administrative staff greatly
appreciate the efforts of the treasurers of the many congrega-
tions and of the representatives of the various other employer
orgnaizations. Their assistance by handling numerous
employer responsibilities is most helpful to the overall admini-
stration of the Worker Benefit Plans.

Much appreciation is also expressed for the continued
participation in the Worker Benefit Plans of congregations and
other agencies of The Lutheran Church—Missouri Synod. It is
evidence of their concern for one another. And it is through
their participation that the group concept of the Worker Benefit
Plans can be most meaningful and helpful for their workers as
they proclaim Him throughout the world.

Board of Managers—Worker Benefit Plans
Ralph A. Niedert, Chairman

Kenneth E. Guebert, Vice-Chairman

Fred A. Spurgat, Secretary

Earl E. Haake, Administrator

EXHIBIT A
Page 1

Ernst & Whinney

10 Broadway
St. Louis, Missour: 63102

314 231-7700

Board of Managers

Concordia Plans

Lutheran Church - Missouri Synod
St. Louis, Missouri

We have examined the statements of net assets of the Concordia Health
Plan of The Lutheran Church ~ Missouri Synod as of December 31, 1982 and
1981, and the related statements of changes in net assets for the years
then ended. Our examinations were made in accordance with generally
accepted auditing standards and, accordingly, included such tests of the
accounting records and such other auditing procedures as we considered
necessary in the circumstances,

In our opinion, the financial statements referred to above present fairly
the net assets of the Concordia Health Plan of The Lutheran Church -
Missourd Synod at December 31, 1982 and 1981, and changes in net assete
for the years then ended, in conformity with generally accepted account-
ing principles applied on a consistent basis after restatement for the
change, with which we concur, in the method of accounting and reporting
by the Plan, as described in Note F, to comply with the provisions of the
audit and accounting guide entitled, Audits of Employee Benefit Plans,
issued by the American Institute of Certified Public Accountants.

St. Louis, Missouri
March 8, 1983

EXHIBIT A
Page 2
STATEMENTS OF NET ASSETS

CONDORDIA HEALTH PLAN

December 31

1982 1981
ASSETS (Restated -
Note F)
Investments at market value (cost--
$11,866,973 in 1982; $9,089,509 in
1981)--Note C
Shore-tere investments § 1,669,000 $3,508,533
Bonds, notes and debentures 10,565,193 4,693,576

12,234,193 8,202,109
Amount due from insurance company~-Note D 143,974
Contributions receivable 128,990 74,093
Accrued interest and dividends 380,081 166,896
Prepaid expenses and other assets 1,961 344

Equipment (net of allowances for depreciation
of $51,991 in 1982 and $48,898 in 1981) 76,167 39,731
Data processing software (net of amortization

of $112,810 in 1982 and $34,820 in 1981) 1,056,212 462,586
Cash 9,846 15,501
13,887,450 9,105,234

LIABILITIES
Accounts payable and deferred incone 1,415,870 702,883
Claims payable 3,380,060 440 ,0C0
Estimated liability for claims incurred
but not reported 4 520,900 5,873,000
9,315,870 7,015,883
NET ASSETS § 4,571,589 $2,089,351
See notes to financial statements.
EXHIBIT A
Page 3

STATEMENTS OF CHANGES IN NET ASSETS
CONCORDIA HEALTH PLAN

Year Ended December 31,

1982 1981
(Restated —
ADDITIONS Note F)
Interest income § 1,564,333 § 1,542,631

Contributions from members 26,997,921 22,936,389
Other income 13,535

28,562,254 24,494,555
DEDUCTIONS
Health care claims 25,579,064 23,533,374
Disability claims 144,288 1,01c,365
Death benefits 10,385 30,154
25,733,737 74,573,893
Insurance premiums 33,054 480,220
Administrative expenses 1,672,164 1,305,421
27,438,955 26,355,534
1,123,299 (1,864,979)

Net realized and unrealized gains (losses)

in fair value of investments=-Note C (628,631)

(2,493,610)

1,358,930

NET INCREASES (DECREASES) 2,482,229
Net assets at beginning of year--

Restated--Note F 2,089,351 4,582,961

NET ASSETS AT
END OF YEAR $§ 4,571,580

$ 2,089,351

See notes to financial statements.

EXHIBIT A
Page 4

NOTES TO FINANCIAL STATEMENTS
CONCORDIA HEALTH PLAN

December 31, 1982

NOTE A--SIGNIFICANT ACCOUNTING POLICIES
Investments are stated at market value.
All office space is rented from The Lutheran Church - Missouri Synod.

Equipment and data processing software are recorded at cost. Deprecia-
tion and amortization are computed on the straight-line method over the
estimated useful lives of the equipment and software.

The cost of certain administrative expenses incurred for the benefit of
each of the Concordia Plans (Retirement, Disability and 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.

The funding objective of the Plan is to provide for sufficient funds to
pay all claims incurred during a plan year and to maintain a sufficient
level of net assets as determined by the Board of Managers

NOTE B--DESCRIPTION OF PLAN

The Plan has been established for those individuals serving The Lutheran
Church - Missouri Synod. The Plan is administered by a Board of Managers
which is appointed by the Board of Directors of The Lutheran Church -
Missouri Synod. Not less than one-half of the contributions are paid by
the employer organization. All benefits of the Plan are self-funded.