The Church Audit Committee is independent of all Church officers, operations, departments, and employees and reports directly to the First Presidency. We have access to all operational and departmental records and personnel necessary to perform our responsibility. We have reviewed the adequacy of controls over receipts and expenditures of funds and other procedures that safeguard the assets of the Church and its controlled organizations, including their budgeting, accounting and reporting, and auditing systems. We have also reviewed the related combined financial statements of the Church for the year ended 31 December 1993.
Expenditures of Church funds for the year were authorized by the Council on the Disposition of the Tithes, composed of the First Presidency, the Council of the Twelve Apostles, and the Presiding Bishopric, as prescribed under revelation. The Appropriation and Budget committees administer major expenditures within approved budgets.
The Church Auditing Department performs, on a test basis, financial and operational audits, including computerized information systems, for all Church operations worldwide. Its staff consists of certified public accountants and other professionally qualified auditors and it is independent of all other Church operations and departments. Incorporated businesses owned or controlled by the Church are audited by the Church Auditing Department or independent public accounting firms. Audits of local ecclesiastical units are performed locally. Such local audit procedures are established by the Church Auditing Department, which also monitors local unit audit results.
Based on our review of financial and operating controls and of audit reports and responses thereto, we are of the opinion that the budgeting, accounting and reporting, auditing, and other control procedures have maintained adequate accountability for Church assets and obligations. In all material respects, Church funds received and expended during the year ended 31 December 1993 have been controlled, accounted for, and reported in accordance with established Church policies and procedures.