The audit for FY2003 is complete. Their report is attached to this report. It will be included in the packet for the Congregational Meeting. If desired by Council, a representative from the audit committee can come to a council meeting to report on the audit, but there were very minor findings from this year's audit, so unless Council requests it, they will simply report in writing.
We
received over $1,600 in donations for the New Life Band in December.
They were at Bethel three times in December to help lead worship,
including Christmas Day.
January's designation is for the Navajo Lutheran Mission in
Arizona.
Pastor
Rick has proposed designations for the remainder of the year, in keeping with
previous year's designations. I
will present these to the Ministry Leads this month. We have left two months open for needs which we become aware
of during the year, and any of these can be changed if something comes up, but
this would allow us to move forward without having to make a decision each
month.
Proposed
Designated Offerings:
January
04: Navajo Lutheran Mission
February
04: Kurt & Karyn Morrill, InterVarsity missionaries to Muslim students in
France
March
04: Mount Cross Scholarship Fund
April
04: Esperanza
May
04: MaaSae Girls' School student support
June
04: Advent Group Ministries
July
04: Cupertino Community Services
August
04: (open)
September
04: Lutheran World Relief
October
04: SJ Family Shelter and Gloria Dei Lord's Pantry
November
04: Family Aid Fund
December
04: (open)
In reviewing spending and available funds for the remainder of the year, I do not expect there to be a large adjustment to make in spending for the remainder of the year, without a major change of some kind. Income is approximately $20,000 behind budget through December, and expenses are $37,000 behind. The largest portion of that lag in spending will not be spent, which will cover most of our budgeted deficit. Ministry budgets have been cut so much in the past few years that there is very little left to cut, without changing a major expense such as staffing. Our projection is that if income meets budget for the remainder of the year, we will end the year very close to "break even".
Recent Designated
Offerings:
December 03: New Life Band
from Tanzania
November 03: Family Aid
Fund
October 03: Seminarians
September 03: Lutheran World
Relief
August 03: Help One Child
July 03: Labor Day Retreat
HUG funds
June 03: Confirmation retreat
scholarships
May 03: Mount Cross outdoor
stage project
April 03: Esperanza
March 03: Maasae Girls’
School student support
February 03: Local Emergency Housing Shelters
January 03: Kurt & Karyn
Morrill, missionaries to Muslims in France
December 02: San Jose Family
Shelter/ Gloria Dei Lord’s Pantry
BETHEL LUTHERAN CHURCH AND SCHOOL
AUDIT REPORT – January 7, 2004
The Bethel Audit
Committee, Susan Horvath, David Lofgren and Tom Woodell, with the help of Joan
Christensen and Carol Mahoney, has completed the internal audit of Bethel's
financial statements, processes and procedures for FY03 (7/1/02 to 6/30/03).
The Profit and Loss
Statement is summarized as follows:
CHURCH SCHOOL
Total Income $850,674 $1,694,194
Total Expenses 882,786 1,682,574
Net Income (Loss) ($32,111) $11,620
At year-end, the
unrestricted cash available for the Church was $46,934 and was $11,620 for the
School.
Capital expenditures for
FY03 were $88,994 for the Church and School combined. The primary expenditures
were for:
School
Playground Equipment $67,921
Apple
iBook for staff 2,198
HVAC
Improvements Zoar/Torvend 11,200
Principal's
laptop 4,206
Altar/Advent
Candleholders 3,469
Bethel contributed
$84,993 during FY03 for benevolences, including both contributions based on
General Fund giving and Designated Offerings. The largest contributions, aside
from those to the Synod and National Church, went to support ELCA missionaries
Eric and Beth Hanson, to Mount Cross Lutheran Camp and Esperanza, the
organization through which our youth and adult Missions to Mexico are
sponsored. In total, over 30
organizations received contributions from Bethel.
As of 6/30/03 Bethel's total interest bearing
debt was $355,651, our primary mortgage through Thrivent Financial @7.125%.
THE FOLLOWING
WAS ACCOMPLISHED AND/OR REVIEWED BY THE AUDIT COMMITTEE:
* Reviewed and closed
out audit recommendations from earlier fiscal years.
* Audit bank statement
reconciliations.
* Review payroll records
comparing gross to expensed.
* Confirm canceled
checks and sample authorization, receipts, clearing and procedures.
* Review general ledger
for correct allocations.
* Review all voided
checks and checks greater than 6 months old.
* Capitalize any new
buildings, furnishings, equipment and major leasehold improvements and repairs.
* Review the Youth
Ministry checking account.
* Review all restricted
funds.
* Review tithing
disbursements and procedures.
* Review offering
count/deposit procedures.
* Review contracts,
leases, mortgages, notes and titles.
* Make year-end
adjusting entries and close the books for FY03.
FINDINGS AND RECOMMENDATIONS:
Bank Statement Review:
"Proof of Cash"
Verification of check and authorization procedures
Transaction Register Review
Tithing procedure
Contracts, leases review
Review assets, book value, depreciation
Accounting Procedures Manual
Submitted by:
____________________ _____________________ ____________________
Susan Horvath David
Lofgren Tom
Woodell