Presented by Wesley L. Jones
Managing Director, Church Auditing Department
To
the First Presidency of The Church of Jesus Christ of Latter-day Saints
Dear Brethren: The Church of Jesus Christ of Latter-day Saints maintains
an auditing department, which performs its work independently from all other
Church departments and operations. The managing director of the Church Auditing
Department reports directly and regularly to the First Presidency. Church Auditing
Department staff consist of certified public accountants, certified internal
auditors, certified information systems auditors, and other credentialed professionals.
By charge from the First Presidency, the Church Auditing Department has authority
to audit all Church departments and operations worldwide. The Church Auditing
Department has access to all systems, records, personnel, and properties necessary
to audit contributions, expenditures, and Church resources. Professional financial
and operational auditing standards govern the performance of audit work. Risk
is the primary factor guiding the selection of audits.
The Council on the Disposition of the Tithes is responsible for, and for the
year 2003 authorized, the expenditure of Church funds. This council is composed
of the First Presidency, the Quorum of the Twelve Apostles, and the Presiding
Bishopric, as prescribed by revelation. Under direction of this council, accountability
for contributions, expenditures, and Church resources is controlled through
each department's management group and through the Church's Budget and Finance
Departments. Administration of funds by these management, budget, and finance
groups is audited and reported.
Based upon our audits, the Church Auditing Department is of the opinion that,
in all material respects, contributions received, expenditures made, and Church
resources used during the year 2003 have been administered in accordance with
approved budget guidelines and established Church policies and procedures.
Financial activities of Church-affiliated organizations, which are operated
separately from the Church, were not audited by the Church Auditing Department
in 2003. Independent public accounting firms audited the financial statements
and corresponding controls in these organizations. These organizations include,
among others, Deseret Management Corporation and its subsidiaries and the Church's
institutions of higher education, including Brigham Young University. Nevertheless,
the Church Auditing Department did verify that appropriate reporting of these
public accounting firms' audit results occurred with each organization's audit
committee.
Respectfully submitted,
Church Auditing Department
Wesley L. Jones
Managing Director
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