# LCMS Convention Workbook_St. Louis Missouri_2004_S84 # Machine transcription, uncorrected — CHI Digital Archive (demonstration) 84 SYNODICAL REPORTS This program includes rates far below what the church worker is usually paying but also financial counseling (including help in bud- geting). The LCEF has initiated a study of the indebtedness of profes- sional church workers. It was initiated based on the high number of applicants for consolidation loans whose indebtedness was so severe their loans could not be granted. Supported in part by a grant from Thrivent and in partnership with ELCA and WELS, the study will identify the range and depth of indebtedness that has become a source of concern among leaders of the LCMS and the other church bodies. A report will be provided to LCMS leadership (District and national level) by summer 2004. Services This area of LCEF has grown the most during the last three years. In addition to the two added services, Strategic Ministry Planning and Laborers For Christ, other services have continued to grow in quantity and quality. Demographics use increased with the advent of Internet-based access that can provide on-site data retrieval and presentation. In addition, religious data has been added to enable congregations to make better decisions about the community they serve. Capital Funding Services developed additional consultants to enhance coverage across the country. In addition, a new service is under evaluation to provide consultant-services at a lower cost for smaller congregations. This service will use teleconferencing to allow small congregations access to consultant services normally only affordable in larger congregations. Gift Planning Service continues to be provided in partnership with the LCMS Foundation and District gift planners. The LCEF goal is to facilitate gift planning services so that LCEF investors have access to counseling and information that will enable them to more effectively provide for themselves, their loved ones, and the ministries closest to their heart. Administration Efficiency and effectiveness: Automation enhancements pro- vide one of the greatest tools for improving the efficiency and ef- fectiveness of LCEF operations. A new loan management system (LIMS) was added in FY 2002. With it, the loan process is now fully automated, with the capability to develop a loan request and track it from initiation through completion via the Internet. This is a tremendous improvement in service to congregations and schools and reduces the workload at all levels of the process. The search for a new banking system to enhance service to in- vestors was conducted during FY 2003 and 2004. The selected provider, AURUM, will be assisting LCEF in the conversion process in the summer of FY 2004. The system will provide im- proved functionality and new capabilities at the current cost; the transition will be transparent to customers. Additional enhance- ments have been made in processing and archiving of investment information. Summary ‘ The LCEF has been blessed by God to be a blessing to entities of the LCMS seeking to do the work of the Great Commission. Fi- nancially, LCEF remains strong with excellent financial ratios (see financial information below). LCEF investors can remain confident of the safety of, and return on, their investments. Borrowers can be assured they are receiving quality service at market—or better- than-market—rates. Members and staff of the LCEF remain com- mitted to the work of the Great Commission. They will strive to meet the needs of the church in the most efficient and cost-effective . way. 2004 Convention Workbook Status of LCEF—DECEMBER 31, 2003 Financial Summary Total Assets Cash and Investments Loans Receivable Loan Portfolio: Congregations Synod and Synod-related Education PCW RSOs Other Total Total Loan Commitments Notes and Support Dollars Payable to Investors Net Assets LCEF currently services LCEF Staff National Office Districts $1.367 billion; $1.258 billion in 01; net change $109M. $285.3 million; $369.7 million in ’01; net change ($84.4M) (Required for reserves, liquid- ity, and capital to ensure finan- cial strength) $1.066 billion; $866.3 million in ’01; net change $199.7M $818.7 million 76.8% $48.4 million 4.5% $143.1 million 13.4% $35.1 million 3.3% $12.3 million 1.1% $8.8 million 9% $1,066.4 million 100.0% $169.7 million; $190.7 million in ’01; net change $21 million _ (Loans pending final action) $1.214 billion; $1.123 billion in ’01; net change $91 million $145.1 million; $125.5 million in 701; net change $19.6 mil- lion 2,844 loans; 2,743 in ’01; net change 101 loans; 118,382 in- vestor accounts; 126,585 in 701; net (8425) 117.2 FTEs; 104.5 in ‘01; net change 12.7. (Transfers & new products account for an in- crease of 9) 50.2 FTEs; 50.0 in ‘01; net change .2 Future Plans—Top Priorities 1, Continue to meet the qualified loan demand of the LCMS by re- cruiting and retaining investors whose passion lies in supporting the work of the church—the Great Commission. 2. Provide market rates or better on investor products. 3. Provide quality service at reasonable rates to customers in all areas reflected on the Arch of Services. 4. Provide subsidized loan rates for highest priorities: mission planting, urban, ethnic, and international ministries. 5. Improve areas of service to professional church workers on loans, investment products, and services. 6. Leverage technology to provide new or better products and ser- vices to better serve LCMS members. Articles of Incorporation and Bylaw Changes The Handbook calls for LCEF to report any amendments to the Articles of Incorporation and Bylaws to the Synod convention. During the past triennium, the following administrative change was made: ARTICLE II. THE BOARD OF DIRECTORS: OFFICERS Section 1. The Board of Directors of the LCEF shail be composed of twelve individuals, at least two ¢grd-ne-menc-thar-forr}-of whom shall be on The Lutheran Church—Missouri Synod’s official roster of pastors