Report of the Synodical Council

South Central DistrictJune 2014

Synodical Council Membership

• Synod President as chairman• First and second vice presidents• 12 lay members (one from each district)• 2 pastors-at-large, 1 teacher-at-large• Chairmen of the 3 areas of ministry• 3 Conference of Presidents representatives• 10 advisory members

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Synodical Council Structure

• Three main committees: Administration, Ministry, and Finance

• One standing committee under the Administration Committee: Compensation Review

• Two special groups report to the SC: Accounting Oversight Committee (RTD, p.54) & the Human Resources Advisory Committee

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Synodical Council Duties

“The Synodical Council is responsible for the implementation of all decisions and resolutions made by the synod in convention and for overseeing all activities of the synod in pursuit of its mission (other than those that are the specific responsibility of the Conference of Presidents” (RTD, pp. 43-47)

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Synodical Council Duties

• Monitors compliance of all convention resolutions (RTD, p. 53)

• Final report on compliance will be presented to the 2015 synod convention

• Facility Services (RTD, p. 65)• Subsidiaries-Northwestern Publishing House,

Church Extension Fund, WELS Foundation, Investment Funds, & our affiliate-Benefit Plans

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“In Christ Alone” Long-Range Plan

• Adopted in 2011, looking toward 2017 (RTD pp. 48-52)

• Progress has been made toward the long-range plan goals and you will hear these reports later during this convention from the areas of ministry

• SC oversees areas of ministry and departments as they develop strategies

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“In Christ Alone” Long-Range Plan

• The SC receives regular progress reports from the areas of ministry and departments

• The SC uses the “In Christ Alone” long-range ministry plan as a guide in allocating funds to ministry programs and services

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Development of the Ministry Financial Plan (budget)

• Establish support forecast and available funding (Finance Committee)

• Areas of ministry develop their prioritized ministry plan

• The president presents the prioritized budget proposal to the SC in November 2014

• Ministry Committee proposes plan; SC adopts in April 2015 – Recommend plan to 2015 synod convention in July

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Sources of Funding

• Support forecast1. Congregation Mission Offerings2. Other unrestricted sources

• Revenues1. Tuition & fees2. Interest and Investments

• Special funds1. Restricted gifts, bequests & grants2. Endowment distributions

• ReservesReport of the Synodical Council9

Financial Stabilization Chart

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$0

$2

$4

$6

$8

$10

$12

$14

$16

FY 10 FY 11 FY 12 FY 13 FY 14 Fcst FY 15 Fcst

Mil

lio

ns

Receipts Used Ending Balance

Financial Stabilization Fund

Receipts Used Ending Balance

$21,158

$7,904

$29,062

$20,868

$7,824

$28,892

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

CMO FSF Expenses

Fiscal Year 2013-14(amounts in thousands)

Plan Forecast

Operating Fund FY 2013-14 (amount in thousands)

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FY 2014-15

• Balanced ministry financial plan• 2-3% CMO growth needed to maintain

programs and services• CMO growth of 4% planned to allow

expansion• 2014 CMO subscriptions down 1.3%

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Potential impact to the Ministry Plan in 2014-2015 include:

• At least two of the planned new Home Missions starts will not happen

• Several vacant positions in World Mission fields will not be filled

• Campus maintenance will be deferred or reduced

• Multi-Language Publications projects will be scaled back

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Potential impact to the Ministry Plan in 2014-2015 include:

• Funding for some existing Home Missions will be reduced

• Programs will be reduced in the commissions of the Congregation and Ministry Support Group (CMSG)

Programs and services will be scaled back even more significantly in the 2015-2017 biennium Ministry Financial Plan

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2015-2017 Biennium Planning

• Support allocations guided by long-range plan• 2-3% CMO increase needed to maintain

current ministry for 2016 & 2017• Other sources of support flat or declining• 1.75% average wage increase• 11% annual health care increase• 10% annual pension increase

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Synodical Debt Update

• Debts of $22.4 million consolidated in 2008• Balance reduced to $6.4 million• Year of Jubilee 2008-2009 resulted in more

than $5 million in gifts• $1.6 million annual amortization payments• Debt will be eliminated in 2019• COP & 2013 convention approved appeal for

2015 to eliminate the remaining debtReport of the Synodical Council16

Our Prayer

Lord of the Church, we know that all we have and are comes from your gracious hands. As we work together in carrying out the mission you have given to us, help us always to regard that work as a blessing and a privilege. Strengthen us by the power of your Holy Spirit, and remind us that while we may plant and water the seed of the gospel, you alone can and will make that seed grow. Help us to be faithful and wise in the gifts and opportunities you have given us, and continue to encourage us with your unbreakable promises. We pray in the name of our living Savior, Jesus Christ. Amen.

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