# LCMS Convention Workbook_St. Louis Missouri_1975_S152 # Machine transcription, uncorrected — CHI Digital Archive (demonstration) 152 ADMINISTRATION blessed with a competent replacement, Mr. Norman Sell, who is the new Assistant Treasurer. He brings with him a rich back- ground of experience and ability, and we are happy to have him on the team. Needless to say, we are grateful for the many blessings the Lord has bestowed on our Synod, for the opportunity to serve, the privilege to work with dedicated Christians, the cooperation of the President and other officers, the Board of Directors, the various departments and agencies, the financial institutions and brokers, and our legal advisers. I am grateful for having a small part in this great endeavor and for the privilege of being Treasurer of The Lutheran Church —Missouri Synod. The challenge and opportunities still await us. It is up to us, with the help of God, to make the most of them. We pray with you that they will be met to the glory of the Almighty. Milton Carpenter, Treasurer 4-06 Report of Controller To assist you in referring readily to the following financial statements, concerning which brief comments will be made herein, we have assigned exhibit numbers to them and provide below a listing of exhibits in the order in which they will appear in this report. They are divided into two groups: (1) those specifically covered by the certification of the external auditors, Ernst and Ernst, and (2) those prepared by this department for the further information of the delegates of the Synod. Audited Statements: Accountants’ Report Exhibit A-1 Balance Sheet—Current Funds Exhibit A-2 Statement of General Current Fund Income and Expenses Exhibit A-3 Receipts from Districts—Regular Budget Contributions Exhibit A-4 Statement of Changes in Fund Balances— General Current Fund Exhibit A-5 Statement of Changes in Fund Balances— Specific and Agency Funds Exhibit B-1 Balance Sheet —Loan Funds Exhibit B-2 Statement of Changes in Funds Balances~— Loan Funds Exhibit C-1 Balance Sheet — Property Funds Exhibit C-2 Statement of Changes in Fund Balances— Property Funds—Capital Project Funds and Expan- sion Fund 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 Accountants’ Report—Pension Plan for Pastors and Teachers . Exhibit E-1 Balance Sheet—Pension Plan for Pastors and Teachers Exhibit E-2 Statement of Income—Pension Plan for Pastors and Teachers Exhibit E-3 Statement of Changes in Fund Balances— Pension Plan for Pastors and Teachers Notes to Financial Statements Statements Prepared by Department of Controllership: Exhibit F Current Operating Expense Report 1965—74 and Budget 1975 Exhibit G-1 Balance Comparative Exhibit G-2 Analysis of Notes Receivable and Payable — Loan Funds -— 10-Year Comparative Exhibit G-3 Comparative Statement of Income and Expense — Loan Funds — 1965 —74 Sheet—Loan Funds — 10-Year Exhibit H Summary of Operations 1974 of Synodical Colleges and Seminaries Exhibit I-1 Detailed Statement of Current Income— Synodical Districts, North America — Fiscal 1974 Exhibit 1-2 Detailed Statement of Current Expenditures —Synodical Districts, North America — Fiscal 1974 Exhibit J Capital Expenditures for Which Funds Were Not Available —Jan. 31, 1974 and 1975 The reports of Ernst and Ernst are all prepared on a com- parative basis. Exhibit A-1, “Balance Sheet—Current Funds,” has three 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 the Synod’s budget operations. The Specific Current Funds and the Agency Funds reflect moneys given for purposes 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,” provides a summary of the income from Districts, some detail of other income, and the budget expenses by Divisions to arrive at the Excess of Expense over Income for fiscal 1974 of $306,003 compared with $434,815 for 1973. Exhibit A-3, “Receipts from Districts,’ shows the perfor- mance of each District with respect to its pledge in each of the two fiscal years. Exhibit A-4, “Statement of Changes in Current Fund Bal- ances —General Current Fund,” simply indicates the beginning balance in each of the two fiscal years, the changes made during the year in three line entries, and the Fund Balance (Deficit) at the end of each year ended Jan. 31, 1975 and 1974. Exhibit A-5, “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, 1975 and 1974. Exhibit B-1, ‘Balance Sheet—Loan Funds,” shows the assets, liabilities, and fund balance of the three separate funds of the Synod’s Church Extension Board: (1) General Church Ex- tension 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 $54,000,000 in both years. Exhibit B-2, “Statement of Changes in Fund Balances — Loan Funds,” follows the same pattern as outlined above for Exhibit A-5 for Specific and Agency Funds. It shows that these funds have operated in the black and have grown during the year. Exhibit C-1, “Balance Sheet—Property Funds,” has four balanced sections. (1) This section reflects primarily the assets of our previous Building and Loan Fund and the remainder of the capital budget deficits prior to 1965. (2) This section reflects the present investment of the Synod’s Capital Expansion Fund. (3) Here are detailed the investment in Land, Buildings, and Equipment. (4) This section shows the investment in colleges and seminaries in North America of $108,600,000. It also reflects the investment in Concordia Publishing House, KFUO, LCUSA, and Concordia Historical Institute for a grand total of $122,300,000 approximately. This section 4 is not covered by the audit report of Ernst and Ernst but reflects the figures audited by synodical internal auditors and other external auditors as of recent dates. Exhibit C-2, “Statement of Changes in Fund Balances— Property Funds,” is identical in format with the other fund balance statements; however, it details a variety of activity and provides some interesting information in some of the sub- titles of the related balance sheet on the Capital Project Funds. Exhibit C-3, “Statement of Changes in Fund Balances— Investment in Land, Building and Equipment, and Investment 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.