# LCMS Convention Workbook_St. Louis Missouri_1973_S363 # Machine transcription, uncorrected — CHI Digital Archive (demonstration) 12, STEWARDSHIP AND FINANCE 12-01 Report of Controller To assist you in referring readily to the financial state- ments, concerning which brief comments will be made, we have assigned exhibit numbers to them and provide below a listing of exhibits in the order in which they will appear on the following pages. They are divided into two groups: (1) those specifically covered by the certification of the ex- ternal auditors, Ernst and Ernst, and (2) those prepared by this department for the further information of the delegates and of the Synod. Audited Statements: Exhibit A-1 Balance Sheet — Current Funds Exhibit A-2 Statement of General Current Fund In- come, Expenses, and Fund Balance Exhibit A-3 Receipts from Districts Exhibit A-4 Statement of Changes in Fund Balances — Specific and Agency Funds Exhibit B-1 Balance Sheet — Loan Funds Exhibit B-2 Statement of Changes in Fund Balances — Loan Funds Exhibit C-1 Balance Sheet — Property Funds Exhibit C-2 Statement of Changes in Fund Balances — Property Funds — Capital Project Funds Exhibit C-3 Statement of Changes in Fund Balances — Property Funds — Investment in Land, Buildings and Equipment and_ Investment in Educational Properties and Other Entities Exhibit D-1 Balance Sheet — Trust Funds Exhibit D-2 Statement of Undistributed Income — Trust Funds Exhibit D-3 Statement of Changes in Fund Balances —Trust Funds Notes to Financial Statements and Accountants’ Report Statements Prepared by Department of Controllership: Exhibit E Current Operating Expense Report 1963 to 1972 and Budget 1973 Exhibit F-1 Balance Sheet — Loan Funds — 10-Year Comparative Exhibit F-2 Analysis of Notes Receivable and Pay- able — Loan Funds — 10-Year Comparative Exhibit F-3 Comparative Statement of Income and Expense — Loan Funds — 1963—1972 Exhibit G Summary of Operations 1972 of Synodical Colleges and Seminaries Exhibit H Detailed Statement of Current Income and Expenditures — Synodical Districts, North America, 1972 (Pre-audit) Exhibit I Capital Expenditures for Which Funds Were Not Available — Jan. 31, 1972 and 1973 The reports of Ernst and Ernst are all prepared on a comparative basis for the first time. At the Convention in Milwaukee only the fiscal year 1970 was presented since it was the first year that they had audited Synod’s records. Exhibit A-1, “Balance Sheet — Current Funds” has four separately balanced fund sections. The General Current Funds reflect principally the end-of-the-year balances of those asset, liability and fund balance accounts involved in or related to Synod's budget operations. The Current Fund Reserve was created over a period of a nurber of years to provide day-to-day operating funds for the Treasurer of the Synod but has had to be temporarily diverted to help finance a portion of the synodical debt. The Specific Current Funds and the Agency Funds reflect moneys given for pur- poses other than the current operating budget and may be for items for which the Synod merely acts as the transfer agent. Exhibit A-2, “General Current Fund Income, Expenses and Current Fund Balance” provides a summary of the in- come from Districts, some detail of other income, and the budget expenses by Divisions to arrive at the Excess of In- come Over Expenses for fiscal 1972 of $516,447 compared with $413,586 for 1971. After deducting “Disposal of Commerce Building — Note B $380,431” from this year’s figure and the “Fund balance (deficit) at the beginning of year ($399,781)” from the 1971 operating balance the result is a Fund Balance at Jan. 31, 1973, of $149,821 compared with the Fund Balance at Jan. 31, 1972. of $13,805. It had taken 2 years to liquidate the operating deficit of fiscal 1969, so that at Jan. 31, 1972, we could have an operating balance of $13,805 as indicated by this exhibit. Exhibit A-3, “Receipts from Districts” shows the per- formance of each District with respect to its pledge in the column headed “Regular.” To this is added special gifts received which are classified as “Maximizing Income.” The total of these two columns for the year ended Jan. 31, 1973, is compared with the total of similar gifts for the year ended Jan. 31, 1972. Exhibit A-4, “Statement of Changes in Fund Balances — Specific and Agency Funds,” as this heading indicates. starts with the fund balance at the beginning of the year, indicates the various elements of receipts and disbursements during the year, and concludes with a “Fund Balance at End of Year” of two of the larger dollar-volume items in each class of funds, i.e. Specific and Agency, and a total for all the others together with comparative totals for both classes of funds for the years ended Jan. 31, 1973 and 1972. Exhibit B-1, "Balance Sheet — Loan Funds” shows the assets, liabilities, and fund balance of the three separate funds of Synod's Church Extension Board, namely, (1) Gen- eral Church Extension Fund, which includes regular loans to districts and Department of Investment loans or loans to self-supporting congregations, (2) Service Charge Loan Funds or 1% interest loans to North American Districts for certain specific needs, and (3) Advance Site Fund. The three funds involved have assets totaling in excess of $54,500,000. Exhibit B-2, “Statement of Changes in Fund Balances — Loan Funds.” This follows the same pattern as outlined above for Exhibit A-4 for Specific and Agency Funds. It shows that these funds have operated in the black and have grown during these years. Exhibit C-1, “Balance Sheet-Property Funds” consists of three sections. (1) The first is the Capital Project Funds. It shows on the left the advances that have been made for capital purposes and on the right the obligations of the fund and the capital deficits (more will be said in the capital debt statement prepared by this department as Exhibit I) and the unamortized cost of faculty housing and the fund balance in the Building and Loan Fund. (2) This element is self- explanatory. (3) The last section indicates assets totalling $117,000,000 principally in college and seminary operations. Exhibit C-2, "Statement of Changes in Fund Balances — Property Funds.” This statement is identical in format to the other fund balance statements. however, it details a variety of activity and provides some interesting information in some of the subtitles of the related balance sheet on the Capital Project Funds. Exhibit C-3, “Statement of Changes in Fund Balances — Investment in Land, Buildings and Equipment, and Invest- ment in Educational Properties and Other Entities.” This statement is a companion piece to Exhibit C-2 and together they detail the changes during the year in the three funds shown on the Balance Sheet — Property Funds, Exhibit C-1. Exhibit D-1, “Balance Sheet Trust Funds.” There are four separate funds in this balance sheet: (1) Pension Fund (2) LLL Endowment Fund (3) Bequest Funds, and (4) Other Trust Funds. These funds will be dealt with in the report of the Board of Trustees found elsewhere in this Steward- ship and Finance section. Exhibit D-2, "Statement of Undistributed Income — Trust Funds” details the changes in the Undistributed Income ac- counts in the four funds named above. Exhibit D-3, “Statement of Changes in Fund Balances — Trust Funds.” This statement details all the activities in each of the units of the four trust funds of Synod for the year ended Jan. 31, 1973, and compares the total of such ac- tivities in the four funds with that of the previous year. This completes the certified statements, which are fol- lowed by the Notes to Financial Statements. Exhibit E, “Current Operating Expense Report 1963—1972