# LCMS Convention Workbook_St. Louis Missouri_1973_S364
# Machine transcription, uncorrected — CHI Digital Archive (demonstration)

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360 STEWARDSHIP AND FINANCE

and Budget 1973" is a comparative statement that has been
in convention workbooks in its present form beginning with
the convention in Detroit in 1965. It is a 10-year historical
review of budget expenditures since 1963 compared with the
current 1973 budget.

Exhibits F-1, F-2, and F-3 all deal with the General
Church Extension Fund of the Synod and present respec-
tively a 10-year comparative Balance Sheet, an Analysis of
Notes Receivable and Payable, and an Income and Expense
statement. These exhibits first appeared in 1967 at New
York. The comparative balance sheet, Exhibit F-1, indi-
cates a healthy growth in each of the three funds as well
as some interesting trends especially in the General Fund.

in each of the ten years.

Exhibit G, “Summary of Operations — Year Ended June
30, 1972 — Synodical Colleges and Seminaries” provides (1) a
detail of the elements of operating income and expense by
school and (2) a cost-per-student analysis, This statement
appeared for the first time in the Workbook of the Denver
convention, but it is only a small sample of the comparative,
analytical, and management data for almost 20 years.

Exhibit H, “Detailed Statement of Current Income and
Expenditures — Synodical Districts, North America, 1972” is
appearing for the second time in a convention workbook.
However, it was possible during the early part of 1972 to
provide 36 District offices with a comparative study of its
own operation for the period 1959-1970. We trust that these
management data will continue to assist the individual Dis-
trict in planning its own operation and will result in greater
cooperation between Districts and between the Districts and
the advisory agencies in St. Louis.

Exhibit I, “Capital Expenditures For Which Funds Were
Not Available, Jan. 31, 1972 and 1973.” Some might prefer
to call this a capital debt statement, but the title chosen
precisely describes each of its elements.

The exhibit is divided into two parts. The first totals
$5,413,389 at Jan. 31, 1972, and $5,046,139 at Jan. 31, 1973,
and represents disbursements for Synodical purposes in each
instance, for which there was no specifically designated
source of funds available. Synod itself, therefore, must

ACCOUNTANTS’ REPORT

Board of Directors
The Lutheran Church — Missouri Synod
St. Louis, Missouri

We have examined the financial statements of the several funds
of The Lutheran Church — Missouri Synod as of January 31, 1973,
and January 31, 1972. Our examinations were made in accordance

Statements of the Concordia Publishing House at January 31. 1973,
or January 31, 1972, which Statements were examined at April 30,
1972, and April 30, 1971, by other independent accountants whose
reports thereon have been furnished to us,

As stated in Note A, investments in educational properties and
the related notes and loans payable (Property Funds) reflect the
amounts as recorded on the books of the various colleges and semi-
naries as of December 31, 1972, and December 31. 1971. In accor-
dance with your instructions we have not examined these accounts
and accordingly we do not express an opinion on the investment in
educational properties, the related notes and loans Payable, and the
applicable fund balance.

generate funds for the Purposes indicated to repay the
moneys borrowed at the time the cash was originally dis-
bursed. The only source of funds for the repayment of the

of new debt was created for additional projects. This re-
sulted in a debt reduction of only $60,244 instead of $149,444
and reduced the debt to $577,589 as indicated.

Item C, “Capital Budget Debt — 1964" was reduced by
$269.660 from $3,294,074 to $3,024,414, as indicated during the
year. This item has been placed in the 125th Anniversary
Thankoffering. The $269,660 is part of the $500,000 placed in
the 1972 budget for debt retirement. Interest expense on
debt service cost $19,625 and the balance of $210,715 was
used for the amortization of faculty housing. The unamor-
tized balance of faculty housing at Jan. 31, 1973, was
$1,394,514,

Item B, “New Capital Fund Advances to Mission Board”
of $1,444,136 indicates that funds were expended for new
capital projects for Missions at a faster rate than funds were
generated. At Jan. 31, 1973 no source of funds had been
designated for the retirement of this debt.

The second part of Exhibit I is titled “Other Capital
Debt (Secured). At the time this is being written, subse-
quent to the end of the fiscal year 1972, item 1) the North
Riverside-Chicago property has been sold and the debt of
$1,368,765 has been repaid. Item 2) the Commerce Building
was sold at year’s end and this debt has also been eliminated.

Of the items recoverable from outside sources (b) Con-
tracts Receivable — Indiana Technical College has also been
repaid during the year. The remaining item, a) Real Estate
Loans — Executives was decreased during the year by
$58,381 to a balance of $370,294. It is anticipated that six
5-year loans totaling $111,874 will be repaid in full during
1973. Monthly repayments on all other existing loans can
also be expected. No new loans have been made since
1968 and no new loans are anticipated. On Jan. 31, 1966, the
outstanding balance of this debt was $689,245.

In summary, no funds have been borrowed from outside
agencies but all capital debt has been financed by inter-fund

borrowing, R. C. Rauscher, Controller

In our report, dated March 30, 1972. for the year ended Janu-
ary 31, 1972. our opinion was qualified subject to the recovery of
the investment in Commerce Building included in the General Cur-
rent Fund. During the year ended January 31, 1973, the Commerce
Building was sold as reflected in Note B.

In our opinion, based upon our examinations and the revorts of
other independent accountants referred to above, and except as

Stated above with respect to educational Droperties, the accompany -

from districts, undistributed income and changes in fund balances
present fairly the financial bosition of the several funds of The Lu-
theran Church — Missouri Synod at January 31, 1973 and January
31. 1972, and the results of operations and changes in fund balances
for the years then ended, in conformity with Generally accepted ac-
counting principles applied on a consistent basis,

(owt Eanite

St. Louis, Missouri
March 30, 1973