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 consists of certified public accountants, certified internal auditors, and other qualified, credentialed professionals.
Under the direction of 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 records, personnel, properties, and systems needed to audit Church contributions, expenditures, and resources. Risk is the primary factor guiding the selection and performance of audits.
Expenditures of Church funds in 2001 were authorized by the Council on the Disposition of Tithes. This council is composed of the First Presidency, the Quorum of the Twelve Apostles, and the Presiding Bishopric, as prescribed by revelation. Expenditures are controlled through the Budget and Finance Departments under direction of the Appropriation and Budget Committees. Administration of approved budgets was audited and reported.
Based upon performance of our audits, the Church Auditing Department is of the opinion that, in all material respects, contributions received and funds expended during the year ended 31 December 2001 have been managed in accordance with approved budget guidelines and established Church policies and procedures.
The financial activities of Church-affiliated organizations, which are operated separately from the Church, were not audited by the Church Auditing Department in 2001. These organizations include Deseret Management Corporation and its subsidiaries and Brigham Young University and other institutions of higher education. However, financial activities in these organizations were audited by independent public accounting firms. In addition, the Church Auditing Department did verify that appropriate reporting of these audit results occurred with each organization’s audit committee.