LCMS Convention Workbook St. Louis, Missouri — 2010, Page 73

Transcription machine transcription, uncorrected

⤓ Download .txt · copy text

SYNOD REPORTS
Synod has responded to my message by passing resolutions, forming task forces, and conducting fiscal conferences. None of these
efforts have changed the downward trend for unrestricted revenues.
Several items will have a positive impact on the Synod’s financial position in the next triennium. Corporate Synod will begin a
program of soliciting contributions for unrestricted purposes. This
program will be initiated with the convention offering. It is estimated
that annual gifts should approximate $500,000. Also, it is expected
that KFUO-FM will be sold on or about March 31, 2010. An initial
payment of $1.5 million will be received during this fiscal year. In
the next triennium, annual proceeds will average approximately $1.0
million. A major portion of these proceeds will be used to improve
the communications of the LCMS.
As the Synod faces continuing financial challenges, it is important
that all assets be reviewed to determine that they are used appropriately and effectively in carrying out its ministry. Also, the report
of the Blue Ribbon Task Force for Funding the Mission should be
revisited. The report includes various suggestions for increasing unrestricted revenues.
This triennium has included many fiscal challenges to corporate
Synod. Corporate Synod has been able to meet these challenges without incurring debt. However, we have depleted corporate Synod’s
cash and investment reserves. Corporate Synod continues to have substantial net worth but minimal cash and cash equivalents. Therefore,
if the challenges of operating with reduced revenues continue, it will
be necessary to reduce national ministry activities, incur debt, and/
or sell assets in order to achieve a balanced budget.
It has been an honor and a privilege to serve the church during
these last nine years. In serving, I have worked and partnered with
talented and committed brothers and sisters in Christ.
Thomas W. Kuchta, Vice-President–Finance—Treasurer

73

an early retirement program in 2009, of which 13 of the 40 people
eligible took advantage. The vacated positions were not filled except
in one critical instance.
Funding of the Synod
The decline of the Synod’s unrestricted dollars income has continued throughout the triennium. The board has appropriated between 19
and 20 million dollars in each of the past three years for the Synod’s
mission and ministry, supplementing designated offerings and gifts.
Joining with the Council of Presidents, the board began exploring other options for macro-financing the Synod. Having multiple
fundraising efforts simultaneously emanating from various departments, boards, and commissions may not be as efficient or effective
as other possibilities. It also strongly urges the Synod to receive and
act upon the reports of both the Blue Ribbon Task Force for Funding
the Mission (which never made it to the floor of the 2007 convention)
and the Blue Ribbon Task Force on Synod Structure and Governance
(which will come before this year’s convention).
Thankfully, due to the faithful donors throughout the Synod, especially during our nation’s economic decline, the Synod budget has
been balanced for two of the past three years.
At the request of the Board for Mission Services, the board sold
some of the Synod’s property assets that included an apartment
complex in Hong Kong and a number of former mission houses in
Venezuela. The board also sold the KFUO FM radio license in St.
Louis and established a new policy for the use of proceeds from sales
such as these.
The oversight and conduct of financial audits fall under the board’s
responsibility. Since September 2007, three unqualified audits for corporate Synod have been completed, which attest to the fine fiscal and
accounting performance of the Synod’s servants.
Seminary and University Support

R4-04

LCMS Board of Directors
Introduction
“The Board of Directors is the legal representative of the Synod. It is
the custodian of all the property of the Synod, directly or by its delegation
of such authority to an agency of the Synod. It shall exercise supervision
over all the property and business affairs of the Synod except in those
areas where it has delegated such authority to an agency of the Synod or
where the voting members of the Synod through the adoption of bylaws
or other convention action have assigned specific areas of responsibility to
separate corporate of trust entities, and as to those the Board of Directors
shall have general oversight responsibility as set forth in the Bylaws.”
(Constitution, Art. XI F 2)

During the past triennium, by the grace of God, the Board of
Directors has striven in the following areas of its responsibility:
Personnel
Due to his declining health, the Board regretfully accepted the
member resignation of Rev. Edward J. Balfour, Cape Elizabeth, ME.
Rev. Dr. Jeffrey T. Schrank, Phoenix, AZ, was elected to fill Rev.
Balfour’s unexpired term.
The Board filled 27 vacancies on various boards and commissions
of the Synod and has been involved with the process of replacing
the retiring Vice-President–Finance—Treasurer of the Synod, Dr.
Thomas Kuchta.
Each year of the triennium, the board set salary and bonus guidelines for the Synod’s servants, including a painful yet prudent hiring
and salary freeze for the 2009 fiscal year. Also, the board established

During the past triennium the board approved nine changes to
Master Plans for Concordia University System (CUS) campuses, as
well as five loan and bond issue adjustments.
During the past three fiscal years, the Synod has provided the seminaries, colleges, and universities with $27.6M. These funds include
direct subsidy to the colleges, universities and seminaries; repayment
of debt incurred by the schools (current debt totals approximately $24
million); and funds to operate the CUS national office.
Legal
Each year the Board monitors and attends to a number of legal
proceedings. By God’s grace and with the assistance of good legal
counsel, the Synod has been able to keep legal costs under control.
Legal fees have averaged about $498,7051 during each of the past
three years, a decline from an average of $625,573 during the prior
three years. The Board of Directors has not initiated any legal proceedings during the triennium.
Relationships
The Board has adjusted its regular agenda to include specific time
for discussion and building relationships with the various entities of
the Synod. During the past triennium it sought to meet at least once
with the executives and chairs of every department, board, and commission. As a result, the Board has received much favorable comment
about the trust and friendly relations that are building from its efforts.
With a continued interest in communicating the work of the board,
it continues to publish Board Briefs, a quarterly insert to the Reporter.
2010 Convention Workbook

2010 Convention.indb 73

4/15/10 2:38 PM