# LCMS Convention Workbook_St. Louis Missouri_2019_S482
# Machine transcription, uncorrected — CHI Digital Archive (demonstration)

482

FINANCE

Ov. 8-08

To Ensure Timely and Transparent Financial
Reporting in the Synod
WHEREAS, A principle of biblical stewardship is to be
accountable with the resources with which one has been entrusted,
as expressed in the Parable of the Talents (Matt. 25:14f.); and
WHEREAS, Much is required of those to whom God has entrusted
his gifts. As Jesus said, “Everyone to whom much was given, of him
much will be required, and from him to whom they entrusted much,
they will demand the more” (Luke 12:48b); and
WHEREAS, The Scriptures teach “it is required of stewards that
they be found faithful” (1 Cor. 4:2); and
WHEREAS, The Synod has historically recognized its
responsibility of accountability and faithfulness in the handling of
the finances entrusted to it by its members, as is witnessed in Bylaw
1.5.4, “The Synod and each of its agencies shall fully disclose their
financial books and records to any member congregation of the
Synod”; and
WHEREAS, The Synod in previous conventions has expressed its
opinion that such accountability and faithfulness be found
additionally in regular reporting of such financial disclosure by
adopting 2010 Resolution 4-03, “To Broadly Communicate the
Statement of Financial Position of LCMS,” which reads in its
totality:
WHEREAS, It is helpful to understand the Synod’s financial
position and communicate it to the members of the congregations
of Synod; therefore be it
Resolved, That each November, the Vice-President–Finance—
Treasurer of the Synod use widely available means, (i.e., The
Lutheran Witness, Reporter, the LCMS Website) to state the
financial position of the Synod in a format easily understood by
persons unfamiliar with financial terminology (2010
Proceedings, 120);
and
WHEREAS, The members of the Synod expressed even further the
need for full transparency in all areas of financial disclosure by
adopting 2016 Res. 9-04A, “To Improve Disclosures Related to
Financial Gifts from God’s Stewards for Special Appeals,” which
stated, in part:
WHEREAS, Monies for special appeals requested by corporate
Synod (e.g., following natural disasters) are reported only in part
in Synod publications (e.g., Reporter and The Lutheran Witness)
and sometimes only annually; and
WHEREAS, Donors and members of the Synod are interested in
the impact of funds raised for special appeals and will appreciate
improved disclosure of results; therefore be it
…
Resolved, That the financial offices of corporate Synod continue
to recognize the desire of donors and members of the Synod to
improve processes of reporting and work to provide clear,
timely, and transparent accounting for all funding and special
appeals, so that the Body of Christ may experience the joy of
Gospel-centered mission and ministry beyond the local context
or community; and … (2016 Proceedings, 189);
and
WHEREAS, It was reported to the 2013 Synod convention by the
Board of Directors in its “Report on the Disposition of Funding the
2019 Convention Workbook

Mission Recommendations” that “The decline in the Synod’s
annual unrestricted revenue continues, … The board believes that
congregations will respond through better, open, and honest
communication about the great things God is able to accomplish for
His kingdom when we work together. Numerous conventions have
passed resolutions calling on congregations to maintain and
increase unrestricted support for district and Synod ministries, yet
the unrestricted support passed through our districts to the Synod
has continued to decline at the average rate of $1 million each year
(2013 Convention Report R6–03–01, Workbook, 114–5); and
WHEREAS, In 2016, the Chief Financial Officer of the Synod, in
reporting to the Synod about offerings received, stated, “This
sharing from God’s bounty continues to decline. Although the
amount of decline in the past three years has not been as severe as
the average decline of the previous 20 years, it is still trending
negatively. In the face of continued declining unrestricted revenues,
the ability of Synod, Inc. to respond quickly and nimbly to mission
and ministry opportunities and challenges laid before us by our Lord
also declines, as does our ability to “fill in the gap” when restricted
revenues, needed to fund much of our mission and ministry
activities, fall short of their goals. The financial challenges
facing our beloved Synod persist. I believe that these challenges are
of our own making, a product of how we distribute the resources
provided by our loving Father. (Report of the Chief Financial
Officer, 2016 Workbook, 61–62); and
WHEREAS, There have been reports about the financial struggles
of the Synod, such as the need to trim $4 million dollars from the
budget of the Synod (“Boards and Business: International, National
Mission, Reporter Online, July 7, 2017, blogs.lcms.org/2017
/international-national-mission mission and Board of Directors
Minutes, May 19–20, 2017, ag. 87A, Action Items: Adoption of
2017–2018 (FY18) LCMS Mission and Ministry Operating
Budget,” p. 52, lcms.org/Document.fdoc?src=lcm&id=4769); and
WHEREAS, It has been reported that the Synod has only minimal
days of operating capital in its cash reserves, which would
seemingly place the Synod in a precarious financial position (Board
of Directors Minutes, Feb, 17–18, 2017, ag. 45, “Financial Report,”
p. 29, lcms.org/Document.fdoc?src=lcm&id=4659, which stated
that without funds held on behalf of the two seminaries, Synod had
only five days of cash available); and
WHEREAS, In the face of such challenging financial times,
transparency and regularity in reporting of the financial situation of
the Synod is of utmost importance to the members and constituency
of the Synod, who have a vested interest in the financial viability of
the Synod and who merit clear, concise, and timely reports; and
WHEREAS, The President of the Synod recommended in his
report to the Synod in 2016 that the Synod have “Uniform Financial
Reporting.” (President’s Report, Part 2, 2016 Today’s Business,
28); therefore be it
Resolved, That it is the formal declaration of this assembly that
annual reporting of the synod’s financial position in the official
publications of the Synod is insufficient; and be it further
Resolved, That the Synod in convention direct the Chief
Financial Officer to report quarterly in the Synod’s official
publications about the financial position of the Synod in a format
easily understood by persons unfamiliar with financial terminology,
such reporting to include, but not limited to income and expenses,
budget versus spending, explanations for variances in budget line