2003 Preliminary and Unaudited Financial Statements

Summary of Revenue and Expenses Spreadsheet
Revenue Summary (Detail) Spreadsheet
Expenses vs. Spending Authorization Spreadsheet

TREASURER'S REPORT
for the year ended January 31, 2004

The churchwide organization of the Evangelical Lutheran Church in America had an excess of income over expense of $0.2 million in current operating funds for the fiscal year ended January 31, 2004. An additional $0.1 million was allocated through Church Council action.

Receipts totaled $79.6 million for fiscal year 2003 compared with $82.9 million the previous year, a decrease of $3.3 million or 4.0%.  Expenses related to these funds amounted to $79.4 million, a reduction of $2.7 million or 3.2% from fiscal 2002.  Revenue was unfavorable to the budget approved by Church Council by $4.0 million or 4.7%; expenses were below the Church Council authorized level by $4.2 million or 5.0%.

Income from congregations through synods in the form of mission support decreased from one year ago to $66.5 million, compared to $68.8 million the previous year, a decrease of $ 2.3 million.  Other funds, both temporarily restricted and unrestricted, available for the budgeted operations of the church, amounted to $13.1 million compared with $14.2 million received in 2002.  Major sources of income in these categories include: Missionary Sponsorship, $4.0 million; bequest and trust income, $2.4 million; endowment income $2.2 million; Vision for Mission, $1.1 million; fraternal grants, $0.9 million; investment income, $0.5 million; gifts from W/ELCA, $0.4 million; and other income of $1.6 million.

Total contributions to the ELCA World Hunger Appeal in 2003 reached a new high of  $18.0 million of which $16.5 million was for the general World Hunger Appeal as compared to $16.0 one year ago.  Designated world hunger income was $1.5 million with the majority, $1.3 million, given for Stand with Africa.  Disaster Response funds received from ELCA members in 2003 amounted to $1.9 million compared to $2.0 million in 2002.

The overall financial results for fiscal 2003 were well below expectations.  Only by adjusting spending plans several times to be in line with reduced receipts, was the churchwide organization able to operate at a small surplus.  The decline of $2.3 million in mission support revenue is unprecedented and represents a significant fall in actual receipts as a percentage of synod mission support plans.  All regions and 74 percent of synods sent less in mission support income in 2003 than in 2002.  Investment income also had a large negative impact on revenue, declining 59.0% or $0.7 million due to declines in interest rates, account balances and the value of the investments.