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LCMS Convention Workbook St. Louis, Missouri — 1981, Page 206

Scan: The Lutheran Church—Missouri Synod
Transcription machine transcription, uncorrected

206 ADMINISTRATION

NOTE E--INCOME TAX STATUS

The Internal Revenue Service has ruled (July 25, 1977) that rhe Plan
qualifies under Sections 51] through 515 of the Iaternal RNevenue Code
<IRC) and is, therefore, not subject to tax under present income tax law.
Qace cua the Plan is required to operate in conformity with the
IRC to maintain its qualification.

The Board of Managers is not avare of
any course of action or series of events that have occurred that migh
adversely aff the Plan's qualified status.

Ernst & Whinney

10 Broadway
St. Louis, Missouri 63102

314/231-7700

Board of Managers

Concordia Plans

Lutheran Church - Missouri Synod
St. Louis, Missouri

We have examined the balance sheets of the Concordia Health Plan of The
Lutheran Church - Missouri Synod as of December 31, 1980 and 1979, and
the related statemente of revenues, expenses, and fund balance and
statements of changes in financial position for the years then ended.
Our examinations were made in accordance with generally accepted auditing
standards and, accordingly, included such tests of the accounting records
and such other auditing procedures as we coneidered necessary in the
circumstances.

In our opinion, the financial statements referred to above present fairly
the financial position of the Concordia Health Plan of The Lutheran
Church - Missouri Synod at December 31, 1980 and 1979, and its results of
operation, changes in fund balance, and changes in financial position for
the year then ended, in conformity with generally accepted accounting

principles applied on a consistent basis
Brneey Whinrag,

St. Louis, Missouri
February 24, 198]

December 31

1980 1979
ASSET
Cash:
Demand deposits $ 52,554 $ 393,768
Investment account 60,207 10,198
112, 761 403,966
Amount due from insurance
company--Note C 230,521 100,755
Contributions receivable 57,003 52,436
Investments--at amortized cost
(approximate marxet value--$9,195,025
in 1980 and $7,944,400 in 1979):
Bonds, notes and debentures 9,943,766 8,473,645
rued interest and dividends 135,354 101,069
Prepaid expenses and sundry receivables 1,160 376
Equipwent (less allowances for depreciation
of $45,216 in 1980 and $41,377 in 1979) 25,531 27,101
Data processing software 174,101 49,682

$10,680,197

$9,209,030

LIABILITIES AND FUND BALANCE

Accounts pavable and deferred income s 563,495 S 191,299
able 1,050,000 732,900

Estimated liability for claims urred
but not reported 3,735,090 3,965,990

Estimated liability for non~contributory
benefits 4,405,000 3,709,900
Fund datance 926, 702 613,731
$10,680,197 $9,299,039

See notes to financial statements.

NSES, AND FUND 8

CONCORDIA HEALTH PLA!

Year Ended December 31
1980 1979

Revenues:

Contributions from members $19,887,255 $17,005,186

Interest income 1,086,25) 843,147
Other 1,883 1,612
20,975,389 17,849,
Expenses:
Benefits:
dealth care 17,054,069 14,389,250
Disability 800,560 471,965
Death 34,405 32,173
17,889,034 14,893, 388
Insurance premiums 401,334 460,324
Provision for non-contributory
benefits 696,900 561,900
Loss on sale of investments--net 613,244 317,016
Administrative expenses 1,062,806 894,738
30,662,418 17, 126,46

EXCESS OF REVENUES

OVER EXPENSES 312,971 723,48.

Fund baiance (deficit) at
beginaing of year 613,73) (109,750)
FUND BALANCE AT END OF YEAR $ 613,731

$926,702

See notes to financial statements.

STATEMENTS OF CHA! S IN FINANCIAL POSITIOC.

CONCORDIA HEALTH PLAN

Year Ended December 31
1980 1979

Increases in cash resulted from:
Excess of revenues over
expenses $s 312,971 s 723,481
Add (deduct) expenses (income) not
requiring outlay of cash:
Depreciation 4,431 4,332
Amortization of bond discount

and premium (35,834) (28,892)
Provision for claims incurred
but not reported (230,000) 125,000
Provision for non-contributory
benefits 696,000 561,000
Loss on investments sold 613,243 317,014
TOTAL PROVIDED FROM OPERATIONS 1,360,811 1,701,935
Decrease in amount due fron
insurance company 28,004
Proceeds from investments sold or
redeemed 54,261,619 37,761,824
Increase in accounts payable 372,196 53,156
Increase in claims payable 320,000 500,000
Other increases--net 84
56,314,626 0,065,003