LCMS Convention Workbook St. Louis, Missouri — 1998, Page 72

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72 SYNODICAL REPORTS

Church Extension of the LCMS and is grateful for our strong work-
ing relationship with the nine CEF Districts.

To reflect the activity of Church Extension synodwide (LCEF
and CEF districts), assets in 1995 totalled $1,100,000,000; in 1996,
$1,154,000,000; and as of June 30, 1997, $1,214,000,000.

During this triennium, the Board for Church Extension has
worked with the CEF Districts to encourage them to move towards
meeting the minimum financial standards adopted by the North
American Securities Administrators’ Association.

“Blue Ribbon’? Committee Report

The LCEF Board of Directors, staff, and members have spent
considerable time during this triennium reacting to changes pro-
posed by the President’s “Blue Ribbon” Committee on Structure.
Their report contains many excellent recommendations and is gen-
erally supported by LCEF. Most of LCEF’s concerns have been re-
solved through discussion with the committee. The Board of Di-
rectors and Members are still concerned with two remaining issues:

* The committee’s proposal calls for one-third of the members
of the LCEF Board of Directors to be elected by the synodical
convention. The ability of each participating District in LCEF
to influence the policies of LCEF by electing its Board of Di-
rectors is what has made LCEF the responsive organization
it is today. The Members are knowledgeable and active sup-
porters of LCEF’s and church extension’s mission and min-
istry. They have consistently nominated and elected members
to the Board of Directors of LCEF from participating Districts
and CEF Districts who have the requisite experience, under-
standing, and support for the mission and ministry of LCEF.

A related concern is whether this proposed change would
provide the basis for a participant district to initiate the
process to remove itself from membership in the LCEF.
Presently 26 out of 35 districts participate in the LCEF. The
concern is the effect such a change may have because of the
provision in the LCEF’s Bylaws that permits a participating
district to request withdrawal from LCEF if the formula by
which corporate members are determined is changed. The
proposal to have one-third of the directors of LCEF elected
by the convention will not change the formula by which the
number of corporate Members to be appointed is calculated.
However, the proposal will reduce the number of Directors
to be elected by the Members appointed by each Member
District. Each district’s appointed Members would participate
in electing only two-thirds of the Directors instead of all of
the elected Directors as is currently the case. The loss of this
important right might seriously affect the ownership that dis-
tricts have in LCEF. The Board of Directors respectfully re-
quest that the method of election not be changed.

That request was supported, without negative vote, by the
150 Members of LCEF at its annual meeting in November
1997. However, the committee’s final report on this issue was
not changed. Accordingly, the Board of Directors has adopted
a memorial, urging the Synod in convention to retain the pre-
sent election process. That resolution is included in this
Workbook.

* The Committee’s proposed Bylaw 3.161 calls for the ap-
pointment of the Chief Financial Officer to be made by the
Board of Directors of Synod in consultation with the Presi-
dent of the Synod. The Chief Financial Officer would also
serve as a voting member of the Board of Directors of the
LCEF. The duties of this office require that the individual rep-
resent Synod as a whole. An appointed person would repre-
sent only the concerns of the board that made the appoint-
ment. The Board of Directors (LCEF) recommends that this
office remain a position elected by the Synod and that nomi-
nees for this position be interviewed by the appropriate
boards so that these boards can assure themselves of the can-
didate’s qualification. The Board’s recommendation was also
adopted by the 150 Members of the LCEF without negative
vote.

“Making a Difference”

The theme for LCEF in this coming year is “Making a Differ-
ence—in Things Eternal.” That was Art Haake’s goal in his years
as LCEF president, and we pledge ourselves to continue his her-
itage. Every day, of course, brings a new challenge, a new oppor-
tunity, a new need. But our principles keep us focused on our prime
objective—ministry. As we stay true to these principles that have
guided us, LCEF will move forward in accomplishing its mission
in support of the Great Commission and we will, indeed, “Make a
Difference.” To Him be the glory!

Jon R. Schumacher, Chairman
Victor W. Bryant, Acting President

R4-04
Accounting Department

The department maintains, on behalf of the Vice-President—Fi-
nance/Treasurer, all accounting records for the Corporate Synod,
including donor restricted and unrestricted net assets, for all syn-
odical departments, Office of Information, KFUO, Building Joint
Venture, The Pension Plan for Pastors and Teachers, the Concordia
Plans, The Lutheran Church Extension Fund—Missouri Synod,
The Lutheran Church—Missouri Synod Foundation, and Concor-
dia University System. The department prepares checks for all dis-
bursements (except for operation checks for Concordia Plans,
LCEF, Foundation, and some disbursement checks for Concordia
Plans) for signature by the Vice-President-Finance/Treasurer,
serves as custodian of payroll records, and publishes and dissemi-
nates financial statements and reports for entities served. The de-
partment prepares and files tax and other compliance-related re-
turns on a Federal and state basis as well as maintains continued
compliance for Corporate Synod and certain other related entities.
The department offers and provides, when requested, accounting
and payroll services to Synod’s related entities, including Districts,
colleges, and a RSO. In addition, the department performs other
duties with regard to the seminaries, colleges, Districts, and the
synodical budget and complies with certain requirements as pre-
scribed in the Handbook of The Lutheran Church—Missouri
Synod.

During the past triennium, the Accounting Department accom-
plished many of its long-range goals and objectives. The follow-
ing major objectives were met that were above the standard work in
providing accounting services to various units at the International
Center:

1. Reduced the external audit completion time. Requirement
for an audit management letter was reduced or eliminated, indicat-
ing exceptional compliance with accounting standards. With the in-
stallation of accelerated procedures, timely audit information has
been provided to the Board of Directors and the Synod member-
ship at large.

2. The Financial Accounting Standards Board, a national orga-
nization that establishes accounting policies, had issued two stan-
dards that significantly affected the way the Synod accounts for in-
come and expense. During the triennium, the reporting of financial
information and utilization of resources provided for mission and
ministry has changed. The continued introduction of the new con-
cepts and implementation of the new methods and procedures was
completed by the Accounting Department. To comply with the new
standards, modification of all budgeting, accounting procedures,
reporting, and software was accomplished.

3. The assistance for tax, state, and Federal reporting services
provided by the Accounting Department continues to expand in
support of Districts, pastors, teachers, and church treasurers. The
department responds and provides assistance to over 600 telephone
callers annually.

Through the Congregational Treasurer’s Manual, annual tax
update information pertinent to tax administration requirements is
provided to churches. A new “Tax and Information Guideline for
Ministers of Religion” was developed, concurred with, and distrib-
uted by the Districts and educational institutions. Through “Timely
Tax Thoughts” articles in the Synod’s Reporter publication, the