New budget process to enhance visibility
From the office of President Mark Schroeder
As the work of our synod moves into a new year, we are adopting a new budget process that not only will enable us to plan wisely and faithfully, but will more accurately represent the synod's entire work program.
The impetus for the new budget process was last summer's convention, where one recurring theme of discussion was the need to review and analyze the overall programs and activities of the synod. Doing so requires careful planning as well as complete and accurate financial information. Under the leadership of Chief Financial Officer Todd Poppe, much progress has been made in the financial area. Financial reports are timely, audits have been completed far sooner than in the past, and reliable support forecasts have become the norm. Financial information has been made available to our members on a monthly basis, and from what I can see, it has been much appreciated.
But more needs to be done. As we begin to plan the synod's ministry program and the supporting budget for 2009-11, we need a process that reflects the totality of our ministry. Of course the process will, like any good budgeting process, include the following important features:
- An overall strategy to adopt a plan for the synod's mission and ministry that reflects the direction adopted by the synod in convention.
- Careful planning by areas of ministry.
- Dependable financial information, both in terms of expenses and anticipated income.
But it will also involve two major changes.
1. A single budget that includes both operating and special funds
In the past the operating budget adopted by synod conventions has supported only a portion of the total work that is done by the four areas of ministry. The 2007-08 operating budget of $34.8 million is based on the anticipated unrestricted gifts from congregations and individuals for the synod's operations. It does not, however, include the dollars from special (non-budgetary) funds that are also used to fund the synod's program but are restricted by the donors to specific ministry. If the programs supported by special funds are included, the actual amount that will be spent to carry out the work in the four areas of ministry in 2007-08 is $45.1 million. Consider the example of World Missions. The 2007-08 operating budget for World Missions is $7.3 million. But when special funds are included, the actual amount to be spent on the work being done in World Missions amounts to a total of $10.6 million. A similar situation occurs in all of the areas of ministry.
We believe that there is a need to present a more complete picture of the budget and the programs it supports.
To help make this picture more complete, the 2009-11 budget will include all work planned by the areas of ministry—regardless of the source of the funding. The budget will combine funding from all sources, including Congregation Mission Offerings (CMO), offerings from individuals (IMO), and organizations, grants, and fees. As a result, we will be able to present a more complete and accurate portrait of the total work that is actually being done and the true cost of doing it. And because the use of special funds will be a part of the planning process from the beginning, we will also avoid many situations in which programs are carried out simply "because we have non-budgetary funds available."
2. A "program budget," which evaluates all work on the basis of adopted priorities
Another major change involves the process of forming the budget. Areas of ministry will not be assigned an arbitrary percentage of the synod's budget. Instead, each area of ministry will be asked to:
- Describe and prioritize in detail what they plan to do (the "programs").
- Indicate the cost to carry out those programs.
- Provide information regarding sources of funds other than from the synod operating subsidy (grants, fees, gifts, etc.).
- Indicate plans for new or expanded programs if additional dollars are available.
- Indicate priorities of programs if there is a need to reduce or eliminate one or more.
- Describe how each program relates to the overall mission of the synod.
Once the areas of ministry submit their program plans and funding needs, the president and the Synodical Council will evaluate and prioritize the plans in keeping with the available dollars and the priorities established by last summer's convention. As a result, the final budget proposal may include increased funding for some areas of ministry; for others it may be reduced. The Synodical Council will ultimately submit the proposed budget to the 2009 synod convention for approval.
Serving in Christ,
Mark Schroeder
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