LCMS Convention Workbook St. Louis, Missouri — 2010, Page 82

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82

SYNOD REPORTS

to enhanced services to boards, commissions, agencies, departments,
and corporate entities supported by the Synod so that they can concentrate on giving their most effective service to their mission.
Val Rhoden-Kimbrough, Executive Director
R4-11

Internal Audit Department
The Internal Audit Department provides independent appraisals of accounting, financial reporting, and operational activities
of boards, commissions, service departments, and agencies of the
Synod as requested by their governing boards or the Synod’s Board
of Directors. The scope of the internal audit function includes (1)
performing financial statement audits in accordance with generally
accepted auditing standards established by the American Institute of
Certified Public Accountants; (2) assisting the external auditors with
financial statement audits of the various synodical corporate entities;
(3) examining and evaluating internal controls, operations, and organizational structures for adequacy, effectiveness, and efficiency; and
(4) investigating allegations of suspected financial and organizational
misconduct in accordance with Synod policy.
The goals of the above-listed activities are to ensure that (1) the
assets and resources of the Synod and its components are properly
safeguarded; (2) financial reporting is accurate, reliable, and in conformity with generally accepted accounting principles; (3) operations
are being performed in the most efficient and effective manner; and
(4) a more effective level of stewardship of the resources provided to
the Synod and its related entities is obtained.
To carry out the department’s goals and objectives, it maintains
a dynamic, team-oriented environment that encourages personal/
professional growth and the obtaining of professional certifications.
Currently, seven audit professionals are included on the department’s
staff, five of whom are licensed certified public accountants and one
is a certified fraud examiner.
To promote independence and enable the auditors to maintain the
objectivity to render unbiased opinions, the Internal Audit Department
is accountable to the Synod’s Board of Directors through its Audit
Committee. Annually, the Audit Committee reviews and approves
the Internal Audit Department’s objectives for the upcoming fiscal
year. During the past triennium, the Executive Director of Internal
Audit met with the Audit Committee on a quarterly basis to review
and discuss the results of all financial statement audits and operational
reviews conducted by internal or external auditors, provide a status
report on the progress achieved in meeting the department’s annual
objectives, and discuss the coordination of the internal and external
audit functions in order to avoid duplication, promote efficiency, and
maximize audit coverage.
The activities of the Internal Audit Department during the triennium are summarized as follows:
1. Districts of the Synod Upon request of district boards, the department conducted annual financial statement audits for 14, 11, and
12 districts during the fiscal years 2007–08, 2008–09, and 2009–
10 respectively. In each of these fiscal years, the department also
reviewed the financial audit reports of the remaining districts,
which had been audited by external auditors, to ensure they had
received unqualified (i.e., clean) opinions on their financial statements. In addition, one district requested a financial/operational
audit of their Planned Giving Office in the 2009–10 fiscal year.
2. The Synod, Its Departments, and Other Entities During each
of the triennium years, the Internal Audit Department assisted

the external auditors in conducting their financial statement
audits of The Lutheran Church—Missouri Synod, the Lutheran
Church Extension Fund—Missouri Synod, the Lutheran Church—
Missouri Synod Foundation, and Concordia Plan Services (CPS).
The Department performed annual financial statement audits
of Concordia Historical Institute and the Concordia University
System (CUS) national office. The consolidated CUS financial
statements (CUS national office and its 10 affiliated colleges/
universities) as of June 30, 2007; 2008; and 2009 were also
compiled by the department.
During the past triennium, financial/operational audits were
conducted for LCMS World Mission, LCMS World Relief &
Human Care Ministries, the Board for District and Congregational Services, KFUO, and the Synod’s purchasing card
system. In addition, at the request of various agencies of the
Synod (e.g., LCEF), special financial and operational audits
were performed of selected functions, programs, and activities
during the triennium.
3. Seminaries, Colleges, and Universities Upon request, the Internal
Audit Department assists the 12 educational institutions with their
financial statement close process, assists their external auditors
with interim and/or year-end audit procedures, performs operational audits of selected business processes, and/or reviews their
internal controls. In 2007–08, the department assisted one university with its financial statement close process, prepared its 2007
financial statements, and provided training for its accountant.
Joann Spotanski, Executive Director
R5-01

Board for Pastoral Education

The LCMS Board for Pastoral Education advocates and coordinates
the formation of pastors, missionaries, and other church servants to serve
the mission and ministry of Christ’s Church.
Servants on the Board for Pastoral Education (BPE):
The voting members of the BPE are John Behrendt (chairman); Gillian
Bond; Steven Briel; Richard Cohrs (vice-chairman); William Diekelman;
Gerhard Freche; Thomas Krause; Richard Schaefer (secretary); and
Kenton Wendorf.
The advisory members are Kurt Krueger, Thomas Kuchta, Dale Meyer,
Paul Sieveking, and Dean Wenthe.
The International Center staff supporting the work of the BPE are
Barbara Clark and Glen Thomas, assisted by Richard Davis, deployed
staff at Concordia Theological Seminary, Fort Wayne. The deployed staff
position at Concordia Seminary, St. Louis, is currently vacant.
Significant Achievements

• Chaired meetings of the Specific Ministry Pastor (SMP) Committee
and conference calls of SMP working groups at both seminaries
to facilitate implementation of the SMP program (2007 Res. 5-01

2010 Convention Workbook

2010 Convention.indb 82

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