Presented by Wesley L. Jones
Managing Director, Church Auditing Department
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 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 consist of certified public accountants, certified internal auditors,
certified information systems auditors, and other qualified, credentialed
professionals.
By charge from 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.
Professional auditing standards govern the performance of audit work. Risk
is the primary factor guiding the selection of audits.
The Council on the Disposition of the Tithes is responsible
for, and for 2002 authorized, the expenditure of Church funds. This council
is composed of the First Presidency, the Quorum of the Twelve Apostles, and
the Presiding Bishopric, as prescribed by revelation. Under direction of this
council, contributions and expenditures were controlled through the Church’s
Budget and Finance Departments. Administration of contributions received and
budgeted expenditures was audited and reported.
Based upon our audits, the Church Auditing Department is of
the opinion that, in all material respects, contributions received and funds
expended during the year ended December 31, 2002, 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 2002. These organizations include, among others, Deseret
Management Corporation and its subsidiaries and the Church’s institutions
of higher education, including Brigham Young University. Independent public
accounting firms audited the financial statements and corresponding control
activities of these organizations. Nevertheless, the Church Auditing Department
did verify that appropriate reporting of these firms’ audit results occurred
with each organization’s audit committee.
Respectfully submitted,
AUDITING DEPARTMENT
Wesley L. Jones
Managing Director
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