Each year, the Living Church of God voluntarily undergoes an independent audit by an outside accounting firm. These outside experts give us an unbiased assessment and evaluation of our accounting practices and business systems, which is important to us as part of our sincere effort to be good stewards of the financial resources God provides us to accomplish His Work. We take our stewardship very seriously, and as fiduciaries we are held to a high degree of care in the discharge of our duties.
To perform our audit for 2006, we again engaged Cherry, Bekaert & Holland, Certified Public Accountants and Consultants, who also conducted our audit last year. They are a well-known regional accounting firm, specializing in non-profit entities. They have the staff and expertise to analyze and evaluate our books and records. The auditors have completed their audit for 2006 and, as you will see on the following pages, have issued this statement in their Report of Independent Auditors:
"We conducted our audit in accordance with auditing standards generally accepted in the United States of America.… In our opinion, the combined financial statements referred to … present fairly, in all material respects, the financial position of the Living Church of God (International) Inc., and Affiliates as of December 31, 2006 and 2005…"
The auditors made two recommendations regarding minor issues, both of which have been addressed and implemented. On the following pages, you can view the entire audit report with the accompanying notes.
The audit shows that we ended 2006 with a net income of $74,235. While this was less than we would have liked, it does reveal that even while we were able to increase our expenditures for preaching the Gospel and for feeding the flock, we were able to operate within our means, ending the year with a small surplus.
As supporters of this Work, you may be interested in what God accomplished through the Living Church of God in 2006 with the expenditure of $11,047,997. As an overview, consider the following:
Preaching the Gospel
- Television and radio - $2,661,003 - 24.1%
- Publishing and editorial - $983,976 - 8.9%
- Mail processing and distribution - $1,182,213 - 10.7%
- Total for preaching the Gospel - $4,827,192 - 43.7%
Feeding the Flock
- Support for local congregations - $4,532,080 - 41.0%
- Assistance to the needy - $869,051 - 7.9%
- Total for feeding the flock - $5,401,131 - 48.9%
Administration
- Support services and other - $819,674 - 7.4%
Totals - $11,047,997 - 100.0%
While the Work is not "about" these numbers, they do tell a story and are evidence of what is being accomplished. With that in mind, here are some other meaningful numbers that you may find encouraging.
As we wrapped up 2006, we were broadcasting the Tomorrow's World telecast on more than 200 television stations in the United States, Canada, the United Kingdom, South Africa, New Zealand and Australia. Satellite coverage based in the United Kingdom also reached Europe, Scandinavia, northern Africa and the Middle East. Responses to our television program were up 28 percent over the previous year.
During 2006, we mailed out 1.8 million Tomorrow's World magazines, plus a combined total of more than 389,000 booklets, CDs, Bible Study Course lessons and other items of Church literature.
As we ended 2006, we were serving 294 Church congregations around the world. For Church youth, in 2006 we conducted two pre-teen summer camps and one teen summer camp in the United States, attended by nearly 350 campers and staff. The L4T program for young singles held two activities during the year, providing opportunities for young singles to "mix 'n' mingle" in a godly atmosphere, combining classes on Christian living with fun social activities.
In May 2006, a General Conference of the Living Church of God ministry allowed ministers from around the world to confer about many matters of interest to the Church and its servant leaders. Procedural and doctrinal matters were discussed to help the ministry as it strives to do a better job of "feeding the flock." Positive results from the conference were evident in the feedback we received from ministers and members.
As Jesus said, "Therefore by their fruits you will know them" (Matthew 7:20). Certainly these numbers and activities are "good fruits" of which we can take note.
Donation income for the year increased by 8.32 percent over 2005, even though a handful of people left the Church in late 2006. When all income is considered, including investment income and special project donations, the total increase over 2005 was 7.43 percent. The slight difference reflects that in 2005 we received donations earmarked for disaster relief and a memorial fund, which were not factors in 2006.
So, we can see that—with God's blessing—the Church had a very good year in 2006, experiencing growth in all areas of our outreach programs. For example, we ended 2006 with 2,932 donors, a 57 percent increase over the previous year, and 3,078 coworkers, a 20 percent increase over 2005. Our membership numbers increased by 3.8 percent in spite of the above-mentioned few departures.
We are deeply grateful for the support of our members, prospective members, co-workers and donors. The income God gives us to do the Work is primarily made up of small donations, which means that Jesus Christ is using the combined efforts of God's people to accomplish His great commission of preaching the Gospel to all nations. Your prayers and your financial support allow the Work to go through the doors God opens for us.
As of mid-June 2007, we have much to be thankful for in the financial area. Income for the first three Holy Days of 2007 was up 8.8 percent over last year, demonstrating clearly that God's people have their hearts in the Work. Estimated overall income for 2007 is currently running at a 7.5 percent increase over 2006, which is particularly encouraging when we consider the overall economy, the increasing price of fuel, and other inflationary pressures on our brethren.
In 2007, the Church has undertaken two very important projects that require substantial financial commitment. We are devoting increased resources to our Internet effort, and Mr. Charles Ogwyn has already taken significant steps to improve our Web presence and the effectiveness and reliability of our Web sites. Plans are underway to redesign our various Web sites to become more powerful tools for doing the Work around the world, and several important "infrastructure" enhancements have already been put into place. Another exciting new phase of the Work is the establishment of Living University. This virtual "distance learning" university will allow the Church's evangelists and other leading ministers—men well-grounded in God's Truth—to offer education and training in the Scriptures. The first semester will begin in August with three classes, and the curriculum will expand as time and resources allow. Many of you reading this article will surely want to take advantage of this wonderful opportunity.
I hope this report has been an inspiration to you. Your comments and input are always welcome, and I will be glad to answer any questions you may have about the finances of the Living Church of God. You may contact me at [email protected] or at the Charlotte address shown on page 2 of this issue.