The Constitution of the Synod conveys the responsibility and authority that the Synod gives to the Board of Directors: The Board of Directors is the legal representative of the Synod. It is the custodian of all of the property of the Synod, directly or by its delegation of such authority to an agency of the Synod. It shall exercise supervision over all the property and business affairs of the Synod except in those areas where it has delegated such authority to an agency of the Synod or where the voting members of the Synod through the adoption of bylaws or by other convention action have assigned specific areas of responsibility to separate corporate or trust entities, and as to those the Board of Directors shall have general oversight responsibility as set forth in the Bylaws. ( E 2) Legal, property, and business matters are included in its responsibility and have been given attention throughout the past triennium.
Board Actions
The board is taking a deep look at how the main corporate entities are working together: to look at structures; to look with regard to everything we do at how the congregations are actually served or how they are “served on behalf of” and at their behest; and, with a coordinated data effort, to look at where all the pieces individually need to move in order that the whole Synod can move forward. The board has focused on two areas: budgets and coordinated strategies. The first area is budgets. Declining un designated or unrestricted revenue to corporate is one aspect of a synodwide issue, which is felt in districts and congregations and which requires continued emphasis on developing budgets supported by clear tactics/strategies. The board is working toward a strategic approach to budgeting. We have come a long way, and with the addition of Nathan Haak as the new Chief Financial Officer, we are refining budget processes to have increasingly clear reporting and management of funds being spent and for what purpose. We have successfully maintained a balanced budget over the last triennium. This has been a challenging task due to the continued downward trend of unrestricted/un designated donations. Transparency in budgeting that matches strategic plans and needs synodwide is imperative, and we are dedicated to continuing to improve that process. The second area is coordinated strategies. The board has established a special committee to take on this task. The committee has taken an initial step in taking the lead by holding strategy meetings with each of the main synodwide entities, namely the Lutheran Church Extension Fund, Concordia Plan Services, Concordia Publishing House, and the LCMS Foundation. The purpose of the meetings is to ensure that we are all engaging in a cohesive strategy and within the parameters as set forth in our Bylaws. These meetings were well received and will continue as we “walk together.” There is a variety of perspectives, to be sure, but having coordinated and cohesive strategies to support and engage the big discussions—which truly need to engage the whole Synod, all districts, down to all the congregations, and then across all the entities and agencies—will go a long way. During the prior triennium, we have completed detail process reviews in six areas: Information Technology, Facility Management, Accounting, Human Resources, Risk Management, and Purchasing. During this triennium, we are currently in the process of evaluating the Mission Advancement area, which is our fundraising group. All of these processes have resulted in improved performance, increased efficiencies, and closer collaboration with the Synod’s entities. Sharing services between entities and utilizing third-party contractors have resulted in substantial savings to the Synod and the entities involved. Other actions by the board were to appoint a new member to fill a vacancy caused by the resignation of one of the members. Mr. Rick Stathakis, Shelby Township, Michigan, was appointed to fill the vacancy. After almost a two-year vacancy, which was extended due the COVID-19 shutdowns, the board appointed Mr. Nathan Haak as the Chief Financial Officer. Finally, Mr. Frank Simek’s term as the Chief Administrative Officer was renewed.
Overtures Submitted by the Board of Directors The board is submitting one overture to the 2023 Synod convention resulting from action from the 2019 convention. The 2019 convention, through Resolution 7-03, directed the Synod’s Board of Directors—with active involvement of the President of the Synod; the Concordia University System Board, Advisory Council, and President; the institutions’ boards of regents; and others as needed—to propose a new governance plan for consideration and adoption. The process dictated required the concurrence of the CUS Advisory Council and the CUS Board of Directors and a period of review and comment by the entire Synod. The following new governance plan is presented in a separate report in great detail in pursuit of a realistic, sustainable, and transparent framework, satisfying and acting upon the following objectives of the aforementioned resolutions, as summarized in 2019 Res. 7-03, to • strengthen all CUS institutions’ connection to the Synod;
- strengthen the confessional Lutheran identity of all CUS institutions;
- review the composition, size, and selection of boards of regents;
- review the process for selecting presidents of institutions;
- review the overall governance of the CUS and the boards of regents of CUS institutions; and
- review the financial models for the institutions.
Financial Condition of the Synod
The Chief Financial Officer has reported that during the triennium, support from congregations, passed to the Synod, through the 35 districts has continued a more than 25-year decline. This type of financial support for the Synod is used where needed most. Its continued decline reduces the Synod’s financial flexibility to respond quickly to events and activities that could not be reasonably foreseen, as it increases the Synod’s reliance on restricted revenue streams, which may or may not match the needs of the ministries carried on by the Synod. The Chief Financial Officer also reported that corporate Synod finished the 2020−21 fiscal year with an increase in unrestricted, un designated net assets. The Chief Financial Officer reported that at the end of the 2020–21 fiscal year, the total assets of the Synod had increased. More detailed information is provided in the report of the Chief Financial Officer of the Synod, below.
National Office Compensation
The Board of Directors is responsible for determining the compensation of the employees of corporate Synod. In 2006, the board adopted a compensation philosophy that states: “At the International Center of the LCMS, our compensation philosophy is simple: In striving to be good stewards of the dollars entrusted to us, we shall pay fair salaries in a fashion which rewards performance in order to be able to attract, motivate, and retain employees.” Since that time, all positions are reviewed on an annual basis. Compensation may change from one year to the next based on position classification and performance. Corporate entities at the International Center (LCMS, LCMS Foundation, Lutheran Church Extension Fund, and Concordia Plan Services) use the same salary scale. The board approves the individual salaries of the Synod officers, as well as a salary pool for the corporate Synod staff each year, as appropriate.
Minutes of the Board of Directors
The minutes of the meetings of the Board of Directors are available on the Synod’s website. The board does hold open meetings, although parts of each meeting are conducted in executive session. Some items of business (e.g., legal, personnel) are, for obvious reasons, conducted with only the members of the board involved. Thus, the minutes of these executive sessions are confidential. The members of the Board of Directors express their sincere thanks to the Synod for the special privilege afforded them to serve the Lord and The Lutheran Church—Missouri Synod. Michael L. Kumm, Chairman
suspended. Managing the Accounting Department while working remotely created a challenging work environment. We are fortunate to have an experienced accounting group who adapted to a remote work environment. We successfully distributed financial information on a timely basis, received an unqualified (without reservation) opinion from our external auditors, and prepared a budget. This was a huge success supported by a great group effort. Following the lifting of the COVID-19 government-mandated restrictions and my almost two years serving as the interim CFO, the CFO Search Committee resumed its efforts and successfully hired Nathan Haak as CFO. Haak has been here a little over a year and is a great addition.
Managing Operations during the Government Mandated COVID-19 Shutdowns
The day-to-day operations at the International Center were not immune to the government-mandated COVID-19 shutdowns. With less than one week’s notice, everyone pulled together to enable all employees to work remotely. The first challenge was to ensure that all employees had the right hardware. Once situated, the next challenge was to increase communications to ensure all was completed promptly. This was done with numerous emails and by quickly becoming experts with Teams or Zoom virtual meetings. During the pandemic, the Operations Team (see below) conducted numerous surveys to gauge and monitor employees’ challenges, issues, mental well-being, and eagerness to return to a “normal” in-person work environment. Once the mandates were lifted, steps were taken to ensure a safe work environment that included extra cleaning, installing numerous hand-sanitizing dispensers, mask-wearing, etc. Gradually over time, we returned to a pre pandemic work environment, but we are still conscious to maintain a high level of hygiene.