To the First Presidency of The Church of Jesus Christ of Latter-day Saints
The Church Audit Committee Report03187_000_009
We have reviewed the annual financial report of the Church as of 31 December 1984 and operations for the year then ended. The financial statements and operations reviewed by the committee include the general funds of the Church and of other controlled organizations, the accounts of which are maintained by the Finance and Records Department of the Church. We have also examined the budgeting, accounting, and auditing procedures employed and the manner in which funds are received and expenditures are controlled. We determined that expenditures of general Church funds were authorized by the First Presidency and by budgetary procedures. The budget is authorized by the Council on Disposition of Tithes, composed of the First Presidency, the Council of the Twelve, and the Presiding Bishopric. The Budget and Appropriations Committee, in weekly meetings, administers the expenditure of funds under the budget.
Modern accounting technology and equipment are employed by the Finance and Records Department and other departments in keeping abreast of rapid Church expansion and changing methods of electronic data processing.
The Auditing Department, which is independent of all other departments, functions in the threefold capacity of performing financial audits, operational audits, and audits of computer systems employed by the Church. These services are conducted on a continual basis for all Church departments and other Church-controlled organizations, the accounts of which are maintained under the direction of the Finance and Records Department. These comprise worldwide operations including missions, schools, administrative offices, and departmental activities conducted in foreign countries. The extent and scope of the Auditing Department services in safeguarding the resources of the Church are expanding to encompass the growth and widening activities of the Church. The audits of local funds of wards and stakes are performed by stake auditors, the reports of which are reviewed by the Church Auditing Department. Incorporated businesses owned or controlled by the Church, for which accounts are not maintained in the Finance and Records Department, are audited by the Auditing Department, professional auditing firms, or governmental regulatory agencies.
Based on our review of the annual financial report and other accounting data, and our study of the accounting and auditing methods by which financial operations are controlled, together with continuing discussions with personnel of the Finance and Records Department and Auditing departments, and Church legal representatives, we are of the opinion that the general funds of the Church received and expended during the year 1984 have been properly accounted for in accordance with established procedures outlined herein.