Report of the Synodical Council

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 Report of the Synodical Council2 |

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 Report of the Synodical Council3 |

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 ) Report of the Synodical Council4 |

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 Report of the Synodical Council5 |

“In Christ Alone” Long-Range Plan Adopted in 2011, looking toward 2017 (RTD pp ) 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 6 |Report of the Synodical Council

“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 7 |Report of the Synodical Council

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 Report of the Synodical Council8 |

Sources of Funding Support forecast 1.Congregation Mission Offerings 2.Other unrestricted sources Revenues 1.Tuition & fees 2.Interest and Investments Special funds 1.Restricted gifts, bequests & grants 2.Endowment distributions Reserves Report of the Synodical Council9

Financial Stabilization Chart 10 |Report of the Synodical Council ReceiptsUsed Ending Balance

Operating Fund FY (amount in thousands) 11 |Report of the Synodical Council

FY 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% Report of the Synodical Council12

Potential impact to the Ministry Plan in 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 Report of the Synodical Council13

Potential impact to the Ministry Plan in 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 biennium Ministry Financial Plan Report of the Synodical Council14

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 Report of the Synodical Council15 |

Synodical Debt Update Debts of $22.4 million consolidated in 2008 Balance reduced to $6.4 million Year of Jubilee 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 debt Report 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. Report of the Synodical Council17 |