LCMS Convention Workbook St. Louis, Missouri — 1969, Page 475

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462 STEWARDSHIP AND FINANCES; RETIREMENT AND BENEFITS

NOTES TO FINANCIAL STATEMENTS

Note 1. Interfund borrowings. or borrowing between funds,
totaled $5.410,006 at Jan. 31, 1969, and are indicated on the finan-
cial statements by a number (1).

Note 2. As of Feb. 1, 1968, the insurance reserve fund was
transferred to Specific Current Funds from Sundry Trust Funds.
The amount of cash and investments transferred at that date was
$658,929. For comparative purposes the balance sheets of the Cur-
rent Funds and the Sundry Trust Funds as of Jan. 31, 1968. “have
been restated to reflect this transfer.

Note 3. District loans receivable in the amount of $251,693 at
Jan, 31, 1968, were included in loans receivable of the General
Church Extension Fund. These loans are carried in the Faith For-
ward and Ebenezer Fund, and for comparative purposes the balance
sheet of the loan funds at Jan. 31, 1968, has been restated to give
effect to this classification.

Note 4. All funds carried on the Synod’s records in Canadian
dollars have been translated to U.S. dollars at the appropriate rate
of exchange at Jan. 31, 1969.

Note 5. The common stocks included in the portfolio of the
various trust funds are carried at cost. All bonds acquired prior to
Jan. 31, 1963, are carried at cost plus or minus premiums or dis-
counts amortized to Jan. 31, 1963. Bonds acquired since Feb. 1,
1963, are carried at cost without any amortization of premiums or
discounts.

Note 6. The investment in physical properties exclusive of
Foreign Mission Buildings. and after deducting unrecovered cost
of faculty residences and Deaf Mission properties in the amount of
$2,553,098, aggregated $90,980,896. College and Seminary proper-
ties aggregating $87.428.809 are stated at the appraisal value at
July 1, 1955, plus subsequent additions at cost. except for River
Forest properties amounting to $10.064.511. This amount repre-
sents the appraisal value in June 1932 plus subsequent additions at
cost. All other physical properties carried on the books are re-
flected at cost, with the exception of Deaf Mission properties which
are valued at the appraisal of $1,359.265 established in 1961. plus
subsequent additions at cost. No allowance for depreciation has
been provided for any of the physical properties.

Note 7. Capital funds earmarked for approved projects but un-
spent totaled $89,374 at Jan. 31, 1969. This amount represents
the balance of a commitment to the Board for Higher Education for
site acquisitions which will become a cash capital debt when the
funds are expended for the projects for which they have been ear-
marked or appropriated.

Note 8. Budget disbursements for the year ended Jan. 31, 1969,
do not include any capital expenditures or capital funds earmarked
for approved projects. Capital expenditures for fiscal 1968 have
been charged to the Ebenezer Thankoffering Collection or the
President's Fellowship capital effort.

Note 9. During the year ended Jan. 31. 1969, certain items of
income totaling $622.064 were received and recorded as a reduction
of expenditures. In order to present a more clear accounting in the
financial statements, these items are shown as income. and the
expenditures have been appropriately adjusted. For comparative
purposes, income and expenditures for the year ended Jan. 31.
1968, have been restated to conform to this same treatment. In
addition. income and expenditures for that year have been restated
to show income from the Lutheran Laymen's League designated for
television production when it had been recorded as a reduction of
expenditures to conform to the current year.

Note 10. As of Feb. 1, 1968, the Sundry Trust Fund was
changed by authority of the Board of Trustees, whereby it is
operated as a common trust fund and each individual fund or trust
account interest is represented by units of participation. The assets
of this fund are invested in one or a combination of: a fixed income
fund, an equity fund. or a mixed fund. Such investments are made
in accordance with the requirements of the trust. The investments
of the Sundry Trust Fund consist of:

Cash ceeeeeceteeeecs coteeseeeee $ 58.082
Securities 2.00 0 2,582,383
Accrued Interest Receivable _...... 23,715

$2,664.180
Less Accounts Payable 00 2000... ce ce cee 2,200
Net Equity and Undistributed Income 0... .....0.....0..... _$2,661.980

Note 11. The financial statements and operations of the Con-
cordia Retirement Plan and the Concordia Welfare Plan are not
included in the attached financial statements. The operations of
these plans are on a calendar-year basis, and a separate audit report
has been rendered for the year ended Dec. 31. 1968.

Note 12. In addition to the debt amortization shown on Exhibit
B for the fiscal years of 1959 to 1963. the following amounts are
included in the budget disbursements of the Board for Higher
Education:

Amortization of

Select Projects Faculty Housing

118,556
- — 116,364
--. 600,000 130.416
-.. 600,000 150,064
- 600,000 165,243

CERTIFICATION OF FINANCIAL STATEMENTS

To the Board of Directors
The Lutheran Church — Missouri Synod
Saint Louis, Missouri

We have examined the balance sheets of THE LUTHERAN
CHURCH — MISSOURI SYNOD, and its various Trust Funds as of

January 31, 1969, and the statements of income and expeditures and
fund transactions for the fiscal year then ended. Our examination
was made in accordance with generally accepted auditing standards
and accordingly included such tests of the accounting records and
such other auditing procedures as we considered necessary in the
circumstances.

In our opinion, the accompanying balance sheets and related
statements of income and expenditures and fund transactions present
fairly the assets and liabilities of Synod and its various Trust Funds
as of January 31, 1969 and the results of the financial transactions
for the fiscal year then ended, in conformity with generally accepted
accounting principles for non-profit organizations applied on a
basis consistent with that of the preceding year, except for the
change in operation of the Sundry Trust Fund as described in Note
10, to the financial statements.

Tracy B. WHITTON & COMPANY
Certified Public Accountants.
Saint Louis. Missouri
March 27, 1969

(12-03)

Report of Board of Stewardship,
Mission Education, and Promotion

This report of the Stewardship Board will show that
the Stewardship Department has faced problems in the
past biennium that call for thoughtful consideration by
the Synod at this convention.

Staff Replacements

Two major tasks confronting the board this past
biennium were filling staff vacancies and reshaping the
department. We are deeply grateful to the Lord of the
church in helping the department secure a successor to
Dr. John E. Herrmann, who according to synodical
policy retired Nov. 1, 1968, after serving the Synod
faithfully for 19 years as stewardship counselor. His
successor, Rev. A. Lorenz Grumm, assumed his position
as stewardship counselor and was installed on Nov. 21,
1968. Rev. John E. Herrmann continues as a member
of the staff of the department on an interim special writ-
ing assignment.

Three former staff members accepted calls to serve
in other areas of the church’s work, resulting in vacan-
cies in the positions of associate counselor of promotion,
associate counselor in specialized field services, and ad-
ministrative assistant in missionary education. The
board to date has been unsuccessful in filling these va-
cant positions. It has also had no success in engaging
a man for the Office of Needs and Resources, a position
authorized by the Synod’s Board of Directors.

Department Evaluation

The Stewardship Board authorized the staff to re-
evaluate the entire program of the department in July
1966. Shortly after that the Board of Directors ap-
pointed a special committee on which the Stewardship
Board was represented by two of its members (Mr, Ben
Eggers and Mr. G. Frederick Schroeder). This com-
mittee made an overall evaluation of the Stewardship
Department, and the Board of Directors and the Stew-
ardship- Board agreed in principle on the report of this
Stewardship Study Committee. This report was sent to
the New York convention for action. The convention
referred the report back to the Board of Directors for
study, and to come with its recommendations to the
Denver convention.

The Stewardship Board met with the Board of Di-