LCMS Convention Workbook St. Louis, Missouri — 1998, Page 73

Transcription machine transcription, uncorrected

⤓ Download .txt · copy text

~~

SYNODICAL REPORTS 73

Districts, educational institutions, church leaders, and other admin-
istrative staff receive current updates on tax matters.

4. The Accounting Department has offered its services as an
outsource to Districts and other organizations the full range of ac-
counting services it provides to other International Center organi-
zations.

Accelerated use of outsourcing has become a national practice
for other private and public corporations. The idea is to free up
management resources and hold down expenses.

With proper arrangements, significant savings are available to
all organizations. The units who utilize the services do not have to
invest in equipment or software and staff reassignment can occur.
This frees up time and funds to devote to congregations. The bene-
fit to the national office is that outsource services will provide a
larger base to share fixed overheads. The accounting expertise is
already required to provide full services to units currently served.
The utilization of outsourcing within the Synod will result in sub-
stantial accounting or administrative savings in dollars or time and
thereby provide resources for mission and ministry work. Although
disappointedly widespread utilization has not occurred, outsourcing
services for three Districts and two RSOs has happened.

The 1995 synodical convention assigned to the Accounting De-
partment of the Synod through resolution certain financial reporting
responsibilities. Res. 4-04A, “To Communicate Indebtedness” pro-
vides that all synodical entities and agencies annually report to the
Accounting Department of the Synod their total indebtedness and
plans for repaying that indebtedness. No inquiries have been re-
ceived concerning this information. The resolves of 4-04A are
shown below:

Resolved, That the Synod and all of its entities and agencies annu-
ally report to the Accounting Department of the Synod their total in-
debtedness and plans for repaying that indebtedness, and that this in-
formation also be a part of their report to be included in the Convention
Workbook; and be it further

Resolved, That the Accounting Department of the Synod compile
and report annually the total indebtedness of the Synod and all of its
entities and agencies through an official periodical of the Synod and
also, in convention years, in the Convention Workbook.

A summary of the information, which is based on various fiscal
years as reported by the Synod’s agencies and entities, follows.

George Horensky, Executive Director

Appendix R4-04A
The Lutheran Church—Missouri Synod
Official Notice
Summary of Debt/Repayment Plans
Amount
Entities Q00’s Plans for Repayment
DISTRICTS
Capital Debt:
Building and Equipment $16,837 $16,321 Budget provisions
516 = Sales
Other 20,444 6,199 Budget provisions
12,499 Recovery of
principal and
interest
1,746 = Sales
Operating Debt: _L700 1,700 Budget provisions
Total Districts 38.981
CORPORATE SYNOD
Capital debt: 7,299 7,299 Budget provisions
Operating debt: 940 940 Budget provisions
Total Corporate Synod 8,239
EDUCATIONAL INSTITUTIONS
Capital debt:

36,425 18,932 Budget provisions

2,225 Grants

Building and Equipment

3,786 Sales
7,677 Fund drive
3,805 Tuition and fees

Other 3,476 516 Budget provisions
2,960 Sales
Operating debt: 15,606 15,606 Budget provisions

Total Educational Institutions $5,507

CONCORDIA UNIVERSITY SYSTEM

Capital debt: 36,542 36,542 Budget provisions,
sales, grants, and
fund drives

Operating debt: 5.268 5,268 Budget provisions

Total Concordia University System 41,810
OTHER SYNODICAL AGENCIES
Capital debt: 335 335 Budget provisions
Operating debt: 420 420 Budget provisions
Total Synodical Agencies 155
GRAND TOTAL 145,292
R4-05

Internal Audit Department

The Internal Audit Department provides reviews and indepen-
dent appraisals of accounting, financial operating policies, and pro-
cedures of synodical boards, commissions, agencies, and separately
incorporated units (District, colleges, seminaries, Lutheran Church
Extension Fund, Worker Benefit Plans, Lutheran Church—Mis-
souri Synod Foundation, etc.). The reviews are to determine the ef-
fectiveness and adequacy of policies and procedures to protect the
resources and assets entrusted to the respective entity and the de-
gree of compliance with those policies and procedures. Reports are
prepared based upon the results of the reviews and submitted to the
respective board, commission, or agency management/staff for
comment and corrective action.

The Department conducts financial audits leading to the ex-
pression of an opinion in accordance with Generally Accepted Au-
diting Standards. In lieu of the performance of a financial audit,
Department personnel may assist independent external auditors in
the conduct of audit work leading to the expression of an opinion
by the external auditor.

The goal of these activities is to obtain a more effective level
of stewardship of the resources provided to the Synod’s mission
and establish a sound basis for the continuing effectiveness of the
mission.

The Financial Accounting Standards Board and the American
Institute of Certified Public Accountants issued accounting stan-
dards which significantly impacted accounting for contributions,
consolidation of related entities by not-for-profit organizations, and
financial statement display. In accordance with Res. 4-03 of the
1995 convention, the Internal Audit Department expended signifi-
cant time and resources in assisting synodical units in the evalua-
tion of the applicability and the implementation of these and other
accounting standards.

During the past triennium, the Board of Directors carried out its
audit function responsibilities through its Audit Committee.
Through the Internal Audit Department, the Audit Committee re-
ceived reports of the Internal Audit Department and independent
certified public accountants. Annually, the Audit Committee re-
ceives and approves the audit objectives of the Internal Audit De-
partment. Once approved, the objectives are developed into an an-
nual operating plan for the Department. The Audit Committee met
semiannually with the Internal Audit Department and independent
certified public accountants of the Synod to review the results of
audits, status of progress against operating plans, and coordination
of internal and external audit functions. At each of these meetings,
the Committee had the opportunity to meet privately with the audi-
tors without management present to discuss issues of mutual con-
cern.