To Direct Board of Directors to Review and Publish Comprehensive Accounting of LCMS Monies Spent on Hot Chalk, Concordia University Texas, and Hong Kong International School Association Limited Litigation

WHEREAS, The delegate convention of the Synod is the legislative assembly that ultimately legislates policy, program, and financial direction for the Synod’s work and “reserves to itself the right to give direction to all officers and agencies of the Synod,” who are accountable to the Synod for their actions (Bylaw 1.4.1); and

WHEREAS, Bylaw 1.5.4 provides for full financial disclosure of the Synod’s and its agencies’ books and records to any member congregation, while recognizing specified, limited exceptions for donor and personnel confidentiality, in‑process negotiations, information whose disclosure would breach a legal obligation or affect pending litigation, and preliminary or non final information; and

WHEREAS, The Board of Directors (BOD) serves as the Synod’s legal representative with general management and supervision of the Synod’s business and legal affairs and receives copies of legal opinions and related written counsel (Bylaw 3.3.4.4); and

WHEREAS, Litigation related to Hot Chalk and Concordia University, Portland, concluded in mediation with a confidential settlement announced on September 23, 2025, just prior to trial, and the Synod has stated it denies Hot Chalk’s allegations while welcoming resolution; and

WHEREAS, On September 10, 2025, the Synod announced it had filed legal action in Hong Kong against Hong Kong International School Association Limited (HKISAL) concerning administration of HKISAL under the operating agreement, indicating potential additional legal expenditures and obligations; and

WHEREAS, Clarity about legal expenditures, reimbursements, and net financial impact strengthens stewardship, accountability, and trust across the Synod; therefore be it

Resolved, That the Synod in convention direct the BOD, assisted by the Chief Financial Officer (CFO) and the Office of the Secretary, to conduct and publish a comprehensive accounting and analysis of Synod monies expended on legal matters related to the Hot Chalk matter, litigation with or relating to Concordia University Texas, and the legal action involving HKISAL, from inception of such matters through the date of publication, to include at minimum: total legal and professional fees, settlement or judgment amounts (reported to the extent permitted by law and the settlement agreement announced Sept. 23, 2025), insurance reimbursements, third‑party cost recoveries, grants or transfers to related entities for these purposes, and the net impact on restricted and unrestricted Synod funds; and be it further

Resolved, That the report include a clear statement of the net financial effect of the settlement and related litigation, as well asthe Hong Kong legal action, on the Synod’s mission and ministry, identifying impacts on triennial budgets, mission grants, domestic and international mission work, pastoral formation, university support, use of reserves, insurance reimbursements, and any ongoing obligations, presented in plain language; and be it further

Resolved, That this accounting be prepared in consultation with legal counsel and published in a form that honors Bylaw 1.5.4 and any confidentiality obligations arising from the settlement, while still providing maximum feasible transparency through aggregated and categorized totals, and that any specific items withheld be identified by category with the reason for withholding and, where applicable, a projected date when disclosure may occur; and be it further

Resolved, That the findings be published for the church at large in an official periodical and on the Synod’s website, and that a printable summary be provided to congregations for congregational reports and voters’ meetings; and be it further

Resolved, That the CFO be designated as the responsible officer to compile, publish, and maintain the report and any supplementary appendices, coordinating with the Office of the Secretary for archival purposes but publishing the report on the Synod’s website and, as appropriate, in an official periodical of the Synod; and be it further

Resolved, That the BOD provide and publish this report no later than 180 days before the opening of the 2029 convention, so that congregations and newly elected delegates may have at least 90 days to review, respond, and, as needed, prepare overtures in advance of the next submission deadlines; and be it further

Resolved, That the BOD include in the report a plain‑language narrative explaining methodology, scope, and constraints, together with an executive summary suitable for congregational distribution;

and be it finally

Resolved, That the costs of compiling and publishing this report, anticipated to be nominal staff time and ordinary publication costs, be covered within existing budgeted funds, satisfying the bylaw requirement for cost projections to the extent feasible.