Collection › LCMS Convention Workbook (St. Louis, Missouri) › 2004 · 62nd Convention, St. Louis › Page 84
LCMS Convention Workbook St. Louis, Missouri — 2004, Page 84

Scan: The Lutheran Church—Missouri Synod
Transcription machine transcription, uncorrected

84 SYNODICAL REPORTS

This program includes rates far below what the church worker is
usually paying but also financial counseling (including help in bud-
geting).

The LCEF has initiated a study of the indebtedness of profes-
sional church workers. It was initiated based on the high number
of applicants for consolidation loans whose indebtedness was so
severe their loans could not be granted. Supported in part by a grant
from Thrivent and in partnership with ELCA and WELS, the study
will identify the range and depth of indebtedness that has become a
source of concern among leaders of the LCMS and the other church
bodies. A report will be provided to LCMS leadership (District and
national level) by summer 2004.

Services

This area of LCEF has grown the most during the last three
years. In addition to the two added services, Strategic Ministry
Planning and Laborers For Christ, other services have continued to
grow in quantity and quality.

Demographics use increased with the advent of Internet-based
access that can provide on-site data retrieval and presentation. In
addition, religious data has been added to enable congregations to
make better decisions about the community they serve.

Capital Funding Services developed additional consultants to
enhance coverage across the country. In addition, a new service is
under evaluation to provide consultant-services at a lower cost for
smaller congregations. This service will use teleconferencing to
allow small congregations access to consultant services normally
only affordable in larger congregations.

Gift Planning Service continues to be provided in partnership
with the LCMS Foundation and District gift planners. The LCEF
goal is to facilitate gift planning services so that LCEF investors
have access to counseling and information that will enable them to
more effectively provide for themselves, their loved ones, and the
ministries closest to their heart.

Administration

Efficiency and effectiveness: Automation enhancements pro-
vide one of the greatest tools for improving the efficiency and ef-
fectiveness of LCEF operations. A new loan management system
(LIMS) was added in FY 2002. With it, the loan process is now
fully automated, with the capability to develop a loan request and
track it from initiation through completion via the Internet. This is
a tremendous improvement in service to congregations and schools
and reduces the workload at all levels of the process.

The search for a new banking system to enhance service to in-
vestors was conducted during FY 2003 and 2004. The selected
provider, AURUM, will be assisting LCEF in the conversion
process in the summer of FY 2004. The system will provide im-
proved functionality and new capabilities at the current cost; the
transition will be transparent to customers. Additional enhance-
ments have been made in processing and archiving of investment
information.

Summary ‘

The LCEF has been blessed by God to be a blessing to entities
of the LCMS seeking to do the work of the Great Commission. Fi-
nancially, LCEF remains strong with excellent financial ratios (see
financial information below). LCEF investors can remain confident
of the safety of, and return on, their investments. Borrowers can be
assured they are receiving quality service at market—or better-
than-market—rates. Members and staff of the LCEF remain com-
mitted to the work of the Great Commission. They will strive to

meet the needs of the church in the most efficient and cost-effective .

way.

2004 Convention Workbook

Status of LCEF—DECEMBER 31, 2003

Financial Summary
Total Assets

Cash and Investments

Loans Receivable

Loan Portfolio:

Congregations

Synod and Synod-related
Education

PCW

RSOs

Other

Total

Total Loan Commitments

Notes and Support Dollars
Payable to Investors

Net Assets

LCEF currently services

LCEF Staff
National Office

Districts

$1.367 billion; $1.258 billion
in 01; net change $109M.

$285.3 million; $369.7 million
in ’01; net change ($84.4M)
(Required for reserves, liquid-
ity, and capital to ensure finan-
cial strength)

$1.066 billion; $866.3 million
in ’01; net change $199.7M

$818.7 million 76.8%
$48.4 million 4.5%
$143.1 million 13.4%
$35.1 million 3.3%
$12.3 million 1.1%
$8.8 million 9%
$1,066.4 million 100.0%

$169.7 million; $190.7 million
in ’01; net change $21 million

_ (Loans pending final action)

$1.214 billion; $1.123 billion
in ’01; net change $91 million
$145.1 million; $125.5 million
in 701; net change $19.6 mil-
lion

2,844 loans; 2,743 in ’01; net
change 101 loans; 118,382 in-
vestor accounts; 126,585 in
701; net (8425)

117.2 FTEs; 104.5 in ‘01; net
change 12.7. (Transfers & new
products account for an in-
crease of 9)

50.2 FTEs; 50.0 in ‘01; net
change .2

Future Plans—Top Priorities

1, Continue to meet the qualified loan demand of the LCMS by re-
cruiting and retaining investors whose passion lies in supporting
the work of the church—the Great Commission.

2. Provide market rates or better on investor products.

3. Provide quality service at reasonable rates to customers in all
areas reflected on the Arch of Services.

4. Provide subsidized loan rates for highest priorities: mission
planting, urban, ethnic, and international ministries.

5. Improve areas of service to professional church workers on
loans, investment products, and services.

6. Leverage technology to provide new or better products and ser-
vices to better serve LCMS members.

Articles of Incorporation
and Bylaw Changes

The Handbook calls for LCEF to report any amendments to the
Articles of Incorporation and Bylaws to the Synod convention.
During the past triennium, the following administrative change was

made:

ARTICLE II. THE BOARD OF DIRECTORS: OFFICERS

Section 1. The Board of Directors of the LCEF shail be composed of

twelve individuals, at least two ¢grd-ne-menc-thar-forr}-of whom shall
be on The Lutheran Church—Missouri Synod’s official roster of pastors