To the First Presidency of The Church of Jesus Christ of Latter-day Saints
Dear Brethren:
The Church of Jesus Christ of Latter-day Saints maintains a functioning,
standards-driven auditing department. The Church Auditing Department
is independent of 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, certified
information systems auditors, and other qualified and credentialed
professionals.
Risk is the primary factor governing scheduling,
performance, and reporting of audits. As mandated by the First
Presidency, the Church Auditing Department has authority to
audit all Church departments, functions, and operations
worldwide and has access to all records, financial statements
and reports, personnel, facilities, and physical properties
relevant to the performance of audits. The frequency and nature
of audits are determined by Church Auditing Department
executives.
Professional auditing standards promulgated by the Institute
of Internal Auditors and the American Institute of Certified
Public Accountants guide audit work. The Church Auditing
Department audits the various financial statements and
operations of the Church in accordance with these recognized
professional auditing standards. This includes overseeing the
auditing of contributions and expenditures from local
ecclesiastical units.
Expenditures of Church funds for the year ended 31
December 2000 were authorized by the Council on the
Disposition of Tithes in accordance with written policy. The
Council is composed of the First Presidency, the Quorum of
the Twelve Apostles, and the Presiding Bishopric, as prescribed
under revelation. Administration of approved budgets is
controlled through the Budget Department under direction of
the Appropriation and Budget Committees. In the year 2000 the
Church Auditing Department audited the financial policies and
procedures that provide controls over these contributions and
expenditures of Church funds and that safeguard Church assets.
Budgeting, controllership, accounting and reporting systems,
and management's corrective action plan progress for audit
comments raised were audited and reported.
Based on our performance of risk-based audits of financial,
operational, budgeting, and other controls and our evaluation of
management's responsiveness to implementing corrective
action plans, the Church Auditing Department is of the opinion
that, in all material respects, contributions received and
expended during the year ended 31 December 2000 have been
managed in accordance with approved budgetary guidelines and
established Church policies and procedures.
Church-affiliated businesses, including Deseret Management
Corporation and its subsidiaries, are operated separately from
The Church of Jesus Christ of Latter-day Saints. The managers
of these Church-affiliated businesses report to independent
boards of directors and their respective audit committees. The
financial and operational activities of these affiliated
organizations were not audited by the Church Auditing
Department in 2000. However, we have verified that these
organizations, as well as Brigham Young University and other
institutions of higher education, are being subjected to a
financial statement audit annually by independent public
accounting firms.
Respectfully submitted,
AUDITING DEPARTMENT
Wesley L. Jones
Managing Director
31 March 2001
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