LCMS Convention Workbook St. Louis, Missouri — 2010, Page 79

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SYNOD REPORTS
restore the capital-to-asset ratio and congregation loans were sold to
LCMS entities to provide additional liquidity. The sale of congregation loans allows LCEF to continue to meet the loan demand without
requiring significant growth in total assets, which would negatively
impact LCEF’s capital-to-asset ratio.
LCEF investors remained loyal during this difficult time, knowing that their investments are being used to assist ministries impacted
by the recession. This allowed LCEF to continue serving the LCMS
community with loans at historically low interest rates—at a time
when many financial institutions were decreasing lending activity.
LCEF investors expressed their commitment to the mission of LCEF
by reinvesting with LCEF nearly $360 million in maturing notes that
had been invested in 18-month and two-year terms, representing a
renewal rate of 85%.
Furthering our goal to assist LCMS schools, LCEF and Concordia
Publishing House (CPH) worked together to create and launch in
late fiscal 2009 a new stewardship curriculum resource for students
in kindergarten through eighth grade (www.lcefkids.org). K.I.D.S.
Count includes Bible-based lessons, interactive activities, and service
project ideas that provide schools, Sunday schools, vacation Bible
schools, and home-school instructors a fun way to teach children
what it means to be a Christian disciple. This program dovetails well
into LCEF’s existing children’s stewardship investment, the K.I.D.S.
Stamp program.
LCEF Today
In spite of the economic challenges, LCEF remains a well-capitalized institution with a strong emphasis on liquidity. LCEF is
committed to professional and prudent management (with a ministry heart) to protect investors’ interests as we partner together to meet
the lending needs of the LCMS. The management actions taken todate are resulting in positive steps forward:
• Net assets grew $13.7 million in the first seven months of fiscal 2010.
•		The capital-to-asset ratio reached 9.91% as of Jan. 31, 2010—
an increase of 0.86% versus June 30.
•		Net operating income as of Jan. 31 is $8.4 million, versus $4.6
million for the entire fiscal year ended June 30—an increase
of $3.8 million in the first seven months of fiscal 2010.
•		Net gain on investments of $4.7 million partially reverses the
decline in the first seven months of fiscal 2009.
In early 2010, Merle Freitag retired after 11-plus years of dedicated service to LCEF; Richard C. Robertson was installed as the new
LCEF president on Jan. 14, 2010. We pray that the Synod will support him and the entire management team just as strongly as it has in
the past. God has provided the church with many gifted servants, and
we are confident He has equipped Rich to lead LCEF on the journey
of fulfilling the Great Commission.
Conclusion
In the past three years, the financial stability of our nation has
been significantly challenged, and we have yet to recover fully.
While LCEF has felt the effect of this unstable environment, it has
taken measured steps to minimize the impact and continue to provide needed resources to the LCMS. LCEF is blessed to be a vital link
between investors and borrowers, making ministry happen in LCMS
churches and schools, now and in the future.
Every day, God presents opportunities to extend His kingdom.
LCEF is poised to meet the mission before it; to work for the church

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with a clear vision, purpose, and direction; and to serve the Lord and
His people in one mission, sharing one message, with one people.
Soli Deo Gloria!
David Belasic, Chairman
Richard Robertson, President
R4-07

Accounting Department
The Accounting Department has maintained all budgetary, financial, and accounting records for corporate Synod on behalf of the
Vice-President–Finance—Treasurer. Cash receipting and certain
treasury/banking functions were also performed on the Treasurer’s
behalf. The department provided similar accounting, cash receipting, and treasury services for Radio Stations KFUO AM and FM,
Concordia University System, LCMS Holdings Limited, LCMS
Housing Corporation, and several districts of the Synod. The department provided payroll and accounts payable services to The Lutheran
Church—Missouri Synod Foundation, Concordia Plan Services,
Concordia University System, and several districts.
The department prepared checks for all disbursements for the
above entities based upon appropriate approvals, served as the custodian of payroll and payroll-related records, and published and
disseminated financial and management reports for all entities served.
The department prepared and filed tax and other compliance-related
informational returns to various state agencies and federal tax authorities. The department continuously monitors compliance with federal
and state tax matters for corporate Synod and certain other related
entities.
During the past triennium, the Accounting Department prepared or
assisted in the update and publication of several documents designed
to assist congregations, schools, pastors, and teachers by providing
pertinent tax, accounting, and personnel guidance on matters specifically related to not-for-profit and church-related organizations. In
each of the past three years, the department published and disseminated through district offices (now widely available on the Internet)
the Congregational Treasurer’s Manual and provided assistance in
developing and coordinating needed materials for the annual Joint
Business Administrators Conference. Along with these documents,
the department assisted church workers by responding to their telephone inquiries and e-mails related to tax and payroll matters.
Additional guidance and tax updates were provided by the department through the publication of a “Tax and Information Guideline for
Ministers of Religion.” In each of the past three years, the department
responded to invitations from Concordia Seminary, St. Louis to participate in its annual Financial Planning Workshop attended by fourth
year students and spouses and by districts to enable them to speak to
congregational church leaders about church tax and financial matters.
Charles E. Rhodes, Executive Director
R4-08

Information Technology (IT)
The Information Technology (IT) Department manages LCMS
information technology services, resources, and strategy. It provides
information technology services to corporate Synod (boards, commissions, departments, and offices) and the LCMS Foundation.
The provided services include network administration, data management and application hosting, network security management,
software development and maintenance, e-mail, Internet access, Web
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