The Church Audit Committee Report
May 1999

“The Church Audit Committee Report,” Ensign, May 1999, 21

The Church Audit Committee Report

To the First Presidency of The Church of Jesus Christ of Latter-day Saints

Dear Brethren: The Church Audit Committee consists of three members who are independent of all Church officers, employees, departments, and Church-affiliated organizations. We report directly to the First Presidency and have access to all records and personnel necessary to perform our responsibilities.

The Church also has an auditing department that is independent of all other Church operations and departments. The Church Auditing Department is separate and independent from the Church Audit Committee. The Church Auditing Department’s staff consists of certified public accountants and other professionally qualified auditors. The department audits the various financial statements of the Church in accordance with recognized professional auditing standards. It also monitors contributions and expenditures of local ecclesiastical units.

The Church Audit Committee has reviewed the financial policies and procedures that provide controls over contributions and expenditures of Church funds and that safeguard assets of the Church. We have also reviewed budgeting, accounting and reporting, and auditing systems for the year ended 31 December 1998. Expenditures of Church funds for 1998 were authorized by the Council on the Disposition of the Tithes according to written policies. 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.

Church-affiliated organizations, including Deseret Trust Companies and Deseret Management Corporation and its subsidiaries, report to independent boards of directors, maintain their own accounting systems in accordance with accepted business practices, and report in conformity with generally accepted accounting principles. These organizations are audited by the Church Auditing Department and/or independent public accounting firms. Brigham Young University and other institutions of higher education are also audited by independent public accounting firms.

Based on our review of financial, budgeting, and other control policies and procedures, and our review of all audit reports issued in 1998 and responses thereto, the Church Audit Committee is of the opinion that, in all material respects, Church contributions received and expended during the year ended 31 December 1998 have been managed in accordance with revelation and established Church policies and procedures.

Respectfully submitted,


Ted E. Davis, Chairman

Donald D. Salmon

Frank M. McCord