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LCMS Convention Workbook St. Louis, Missouri — 2004, Page 86

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

86 SYNODICAL REPORTS

At each of these meetings, the committee had the opportunity
to meet privately with the auditors without the presence of man-
agement to discuss issues of mutual concern.

The activities of the Internal Audit Department during the tri-
ennium are summarized below:

1. Districts of the Synod. Upon request of District boards, the
department conducted the annual financial statement audits of 16
Districts during each of the fiscal years 2001-02, 2002-03, and
2003-04. In each of these fiscal years, the department also re-
viewed the financial audit reports of the remaining 19 Districts,
which were audited by independent auditors, to ensure they had re-
ceived unqualified (i.e., clean) opinions on their financial state-
ments.

Annually, the department prepared sample District-audited fi-
nancial statements to help ensure a standardized reporting format in
conformity with current generally accepted accounting principles
for not-for-profit organizations. To promote uniformity in District
financial reporting, both internal auditors and a majority of the Dis-
trict independent auditors utilized this sample report.

To enable District and church extension fund boards and man-
agement to evaluate the feasibility of joining the Lutheran Church
Extension Fund, a pre-entry review of church extension operations
was performed in one District during the last three fiscal years.

During 2002-03 and 2003-04, the department assisted Concor-
dia Technologies and District representatives in upgrading the ac-
counting software utilized by a majority of synodical Districts. This
upgrade allowed these Districts to prepare easy-to-read financial
reports (including congregational giving reports) in a more timely
manner.

2. Seminaries, Colleges, and Universities. In prior years, the
department and independent auditors developed a joint-audit ap-
proach whereby the annual financial statement and federal fund au-
dits are performed at each of the 12 educational institutions using a
combination of internal and external auditors. During this trien-
nium, this audit approach was once again used at each institution
on an annual basis. In addition, where required, audits of state-
funded student financial assistance programs and foundations of
various educational institutions were also performed jointly by In-
ternal Audit and the independent auditors. This joint-audit approach
significantly reduced external audit fees, standardized reporting re-
quirements, and maximized audit efficiencies.

Annually, the department gathered and provided selected data to
the Board for Higher Education/Concordia University System
(BHE/CUS) to assist the BHE/CUS in calculating certain financial
responsibility ratios for its 12 educational institutions.

3. The Synod, Its Departments, and Other Entities. During
each of the triennium years, the Internal Audit Department assisted
the independent auditors in conducting their financial statement au-
dits of The Lutheran Church—Missouri Synod, the Lutheran
Church Extension Fund, the Lutheran Church—Missouri Synod
Foundation (LCMS Foundation), Worker Benefit Plans, and Con-
cordia University System.

Annually, the department performed the financial statement
audit of Concordia Historical Institute.

On an annual basis, the department performed and reported on
operational reviews of two or three Concordia Health Plan man-
aged-care providers selected by the Worker Benefit Plans (WBP),
as well as claims that were processed internally by WBP personnel.
In 2002-03 and 2003-04, the department also performed employer
audits on behalf of the WBP at the 12 seminaries/colleges/univer-
sities of the Synod and at 16 synodical District offices.

Annually, the department performed and reported on a review
of the LCMS Foundation’s Gift Annuity Program.

At the request of various departments and agencies of the
Synod, special financial and operational reviews/audits were also

2004 Convention Workbook

performed of selected functions, programs, and activities during
the triennium.
Joann P. Spotanski, Executive Director

R5-01

Board for Higher Education
Concordia University System

The Colleges, Universities and Seminaries
of The Lutheran Church-Missouri Synod

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Concordia University at Austin
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.-» All Across the Country...
An Educational Mission of
The Lutheran Church—Missouri Synod
“A church in Mission is and must be a Teaching church”
http://www.lcms.org/pages/default.asp?NavID=886
Preface
The Lutheran Church—Missouri Synod Board for Higher Edu-

cation Statement of Mission and Purpose (as established by the

1986 synodical convention):
The colleges, universities, and seminaries of The Lutheran
Church—Missouri Synod exist to supply the higher education services
needed to accomplish the mission of the church.

Strongly committed to the Lutheran concept of vocation, synodical
colleges and universities are liberal arts institutions that provide a
Christ-centered spiritual and value-oriented environment for men and
women who will be Christians at work in the church and in secular oc-
cupations.

The objectives of the Synod include the recruitment and education
of professional church workers. Therefore, central to the system of syn-
odical education is the preparation of those who are called to serve
through preaching, teaching, and related vocations. Professional prepa-
ration for the pastoral ministry is the special assignment of the Synod’s
seminaries.

Facts about Higher Education in the LCMS
¢ Over 17,500 students
¢ Over 2,800 church-work students

* Over 1,400 full- and part-time faculty
¢ Over 130 majors and programs

Degrees Awarded

¢ Associate Degree

* Bachelor Degree

« Post-Baccalaureate Certificates
° Master Degree

* Doctoral Degree