# LCMS Convention Workbook_St. Louis Missouri_2023_S44
# Machine transcription, uncorrected — CHI Digital Archive (demonstration)

44

OFFICER, BOARD, AND COMMISSION REPORTS

R5

Board of Directors
The Constitution of the Synod conveys the responsibility and
authority that the Synod gives to the Board of Directors:
The Board of Directors is the legal representative of the
Synod. It is the custodian of all of the property of the Synod,
directly or by its delegation of such authority to an agency of
the Synod. It shall exercise supervision over all the property
and business affairs of the Synod except in those areas where
it has delegated such authority to an agency of the Synod or
where the voting members of the Synod through the adoption
of bylaws or by other convention action have assigned specific areas of responsibility to separate corporate or trust entities, and as to those the Board of Directors shall have general
oversight responsibility as set forth in the Bylaws. (Const.
Art. XI E 2)
Legal, property, and business matters are included in its responsibility and have been given attention throughout the past triennium.

Board Actions
The board is taking a deep look at how the main corporate entities are working together: to look at structures; to look with regard
to everything we do at how the congregations are actually served or
how they are “served on behalf of” and at their behest; and, with a
coordinated data effort, to look at where all the pieces individually
need to move in order that the whole Synod can move forward. The
board has focused on two areas: budgets and coordinated strategies.
The first area is budgets. Declining undesignated or unrestricted
revenue to corporate is one aspect of a synodwide issue, which is
felt in districts and congregations and which requires continued emphasis on developing budgets supported by clear tactics/strategies.
The board is working toward a strategic approach to budgeting. We
have come a long way, and with the addition of Nathan Haak as the
new Chief Financial Officer, we are refining budget processes to
have increasingly clear reporting and management of funds being
spent and for what purpose. We have successfully maintained a balanced budget over the last triennium. This has been a challenging
task due to the continued downward trend of unrestricted/undesignated donations. Transparency in budgeting that matches strategic
plans and needs synodwide is imperative, and we are dedicated to
continuing to improve that process.
The second area is coordinated strategies. The board has established a special committee to take on this task. The committee has
taken an initial step in taking the lead by holding strategy meetings with each of the main synodwide entities, namely the Lutheran Church Extension Fund, Concordia Plan Services, Concordia
Publishing House, and the LCMS Foundation. The purpose of the
meetings is to ensure that we are all engaging in a cohesive strategy
and within the parameters as set forth in our Bylaws. These meetings were well received and will continue as we “walk together.”
There is a variety of perspectives, to be sure, but having coordinated and cohesive strategies to support and engage the big discussions—which truly need to engage the whole Synod, all districts,
down to all the congregations, and then across all the entities and
agencies—will go a long way.
During the prior triennium, we have completed detail process
reviews in six areas: Information Technology, Facility Manage2023 Convention Workbook

ment, Accounting, Human Resources, Risk Management, and Purchasing. During this triennium, we are currently in the process of
evaluating the Mission Advancement area, which is our fundraising
group.
All of these processes have resulted in improved performance,
increased efficiencies, and closer collaboration with the Synod’s
entities. Sharing services between entities and utilizing third-party
contractors have resulted in substantial savings to the Synod and
the entities involved.
Other actions by the board were to appoint a new member to
fill a vacancy caused by the resignation of one of the members. Mr.
Rick Stathakis, Shelby Township, Michigan, was appointed to fill
the vacancy. After almost a two-year vacancy, which was extended
due the COVID-19 shutdowns, the board appointed Mr. Nathan
Haak as the Chief Financial Officer. Finally, Mr. Frank Simek’s
term as the Chief Administrative Officer was renewed.

Overtures Submitted by the Board
of Directors
The board is submitting one overture to the 2023 Synod convention resulting from action from the 2019 convention. The 2019
convention, through Resolution 7-03, directed the Synod’s Board
of Directors—with active involvement of the President of the
Synod; the Concordia University System Board, Advisory Council, and President; the institutions’ boards of regents; and others as
needed—to propose a new governance plan for consideration and
adoption. The process dictated required the concurrence of the CUS
Advisory Council and the CUS Board of Directors and a period of
review and comment by the entire Synod. The following new governance plan is presented in a separate report in great detail in pursuit of a realistic, sustainable, and transparent framework, satisfying and acting upon the following objectives of the aforementioned
resolutions, as summarized in 2019 Res. 7-03, to
•

strengthen all CUS institutions’ connection to the Synod;

•

strengthen the confessional Lutheran identity of all CUS institutions;

•

review the composition, size, and selection of boards of regents;

•

review the process for selecting presidents of institutions;

•

review the overall governance of the CUS and the boards of
regents of CUS institutions; and

•

review the financial models for the institutions.

Financial Condition of the Synod
The Chief Financial Officer has reported that during the triennium, support from congregations, passed to the Synod, through
the 35 districts has continued a more than 25-year decline. This
type of financial support for the Synod is used where needed most.
Its continued decline reduces the Synod’s financial flexibility to respond quickly to events and activities that could not be reasonably
foreseen, as it increases the Synod’s reliance on restricted revenue
streams, which may or may not match the needs of the ministries
carried on by the Synod. The Chief Financial Officer also reported
that corporate Synod finished the 2020−21 fiscal year with an increase in unrestricted, undesignated net assets. The Chief Financial
Officer reported that at the end of the 2020–21 fiscal year, the total
assets of the Synod had increased. More detailed information is