# LCMS Convention Workbook_St. Louis Missouri_2001_S57 # Machine transcription, uncorrected — CHI Digital Archive (demonstration) 56 SYNODICAL REPORTS the position of a director elected by The Lutheran Church—Mis- souri Synod assembled in convention shall be filled by the Board of Directors of The Lutheran Church—Missouri Synod. Overture—Transfer of Capital Funding Services An overture is being submitted to the President of the Synod from both the LCEF Board of Directors and the LCMS Foundation Board of Trustees stating that Capital Funding Services in agree- ment with both organizations has been transferred to the LCEF. This change should be reflected in the Synod’s Bylaws regarding LCEF as well as the Synod’s Bylaws regarding The Lutheran Church—Missouri Synod, as stated in the LCMS Handbook. This change would be deleted from the LCMS Handbook 3.605 ¢ and amended in 3.503 a as outlined in the attached overture. This over- ture is being submitted in triplicate to the President of the Synod as required in Synod’s Bylaw 3.19 b. Consistent with the overture, the members of LCEF have ap- proved amendments to LCEF’s Articles of Incorporation and By- laws, at the November 2000 annual meeting, as follows: 1. That the following be added to subsection “a” of Article Fourth of the Articles of Incorporation, before the last semicolon: “; promoting strategic ministry planning and assisting in capital campaigns.” 2. That Article II, Section 7, subsection “‘e” of the Bylaws of LCEF be amended to read as follows: e. establish policies for promoting strategic ministry plan- ning and assisting in capital campaigns. Board for Church Extension Fund * The LCEF Board of Directors also functions as the Board for Church Extension of the LCMS and is grateful for the strong working relationship and partnering which exists with the eight Districts that still retain a separate Church Extension Fund. * As a reflection of the total activity of Church Extension Synod- wide (LCEF and CEF) assets in 1997 totaled $1,214,000 as of June 30, 1997 and 1,354,420,777 as of June 30, 2000. * During this triennium, the Board for Church Extension has mon- itored the eight CEF Districts by their adopted financial indica- tors and against minimum financial standards adopted by the North American Securities Administrators’ Association. Those Districts, which are off standard are making progress to address the difference. Jon R. Schumacher, Chairman Merle Freitag, President R4-03 Accounting Department The Accounting Department maintained all budgetary, finan- cial, and accounting records for Corporate Synod on behalf of the Vice President-Finance/Treasurer. Cash receipting and certain trea- sury functions were also performed on the Treasurer’s behalf. The Department provided similar accounting, cash receipting, and trea- sury services for the Worker Benefit Plans, Pension Plan for Pas- tors and Teachers, Office of Information Systems, Radio Stations KFUO AM and FM, Concordia University System, LCMS Hold- ings Limited, and several Districts of the Synod. The Department provided payroll and accounts payable services to The Lutheran Church—Missouri Synod Foundation and the Worker Benefit Plans, and performed payroll services for the Lutheran Church Ex- tension Fund. ‘ The Department prepared checks of all disbursements for the above entities based upon appropriate approvals, served as the cus- todian of payroll and payroll-related records, and published and 2001 Convention Workbook disseminated financial and management reports for all entities served. The Department prepared and filed tax and other compli- ance-related informational returns to various state agencies and fed- eral tax authorities. The Department continuously monitors com- pliance with federal and state tax matters for Corporate Synod and certain other related entities. During the past triennium, the Accounting Department prepared or assisted in the update and publication of several documents de- signed to assist and inform congregations, Districts, pastors, teach- ers, and congregational treasurers on tax and accounting matters. In each of the past three years, the Department published and dis- seminated through District offices the Congregational Treasurer's Manual and provided assistance in developing and coordinating needed materials for the annual Joint Business Administrators Con- ference. During 1999, the Department assisted Districts in publish- ing and disseminating through District offices the Congregational Personnel Manual. These publications assist congregations, schools, pastors, and teachers by providing pertinent tax, account- ing, and personnel guidance on matters specifically related to not- for-profit and church-related organizations. Along with these doc- uments, the Department assisted church workers by responding to over 1,000 telephone inquiries to tax and payroll matters annually. Additional guidance and tax updates were provided by the Depart- ment through publication of Tax and Information Guideline for Ministers of Religion. Timely Tax Thoughts articles appeared in of- ficial publications of the Synod and were posted on the Synod’s In- ternet Web site. The Department worked with Districts in updat- ing, revising, and publishing the District Accounting Manual. This document identifies and recommends accounting policies, proce- dures, and practices applicable to not-for-profit organizations nec- essary to comply with generally accepted accounting principles. Charles E. Rhodes, Executive Director R4-04 Internal Audit Department The Internal Audit Department provides independent appraisals of accounting, financial reporting, and operational activities of boards, commissions, and agencies of the Synod as requested by their governing boards or the Synod Board of Directors. The scope of the Internal Audit function includes examining and evaluating * the adequacy and effectiveness of the system of internal controls, * the accuracy and reliability of financial reporting; and *compliance with applicable policies. plans, procedures, and laws/regulations. The Department conducts al] audit work leading to the expres- sion of an opinion on the financial statements in accordance with generally accepted auditing standards established by the American Institute of Certified Public Accountants. In lieu of performing a financial audit, Department personnel may assist independent ex- ternal auditors in the conduct of audit work leading to the expres- sion of an opinion by the external auditor. All other types of audits or reviews not leading to the expression of an opinion on financial statements are conducted by Internal Audit in accordance with stan- dards published by the Institute of Internal Auditors. Reports are prepared based on the results of the audits or re- views and submitted to the respective synodical board, commis- sion, or agency for comment and corrective action. The goals of the above-listed activities are to ensure the assets and resources of the Synod and its components are properly safe- guarded and to obtain a more effective level of stewardship of the resources provided to the Synod’s mission. To promote independence and enable the auditors to maintain objectivity to render unbiased opinions, the Internal Audit Depart- ment is accountable to the Synod’s Board of Directors through its