wfn.org | LWF treasurer reports tough financial times to Assembly

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LWF faces tough financial times
Treasurer Rogestam reports to Assembly

HONG KONG, July 25, 1997 (lwi) - "The past years have been a tough and
challenging time," said Christine Rogestam, Lutheran World Federation (LWF)
treasurer, in her report to the LWF Assembly.

There has also been satisfaction. "The LWF has been instrumental in the
realization of many good and viable programs and projects during the time
since the last Assembly in Curitiba," she said. "We are thankful for the
generous contributions of the member churches and agencies towards our
common work," she said. But, "I cannot withhold some disappointments I had
when member churches passed on their financial problems to us without prior
consultation and not realizing the immediate negative impact on the
finances of the Federation."

The budgets of the last seven years have been developed under difficult
conditions, she said. The new structure approved at the last Assembly
resulted in some cost reductions, but reducing staff and keeping positions
unfilled has "not always been beneficial" and has increased staff workload.
A comprehensive evaluation of the work is "absolutely necessary."

The LWF is carrying an "overwhelming burden" in financing Augusta Victoria
Hospital in Jerusalem, she said. "Not all promises and expectations to
contribute financially to the running and investment costs have been
honored, which leaves the Federation with a heavy financial burden."
Fundraising is underway and "we are looking for a new partnership" to share
the burden, she said. 

In response to questions, Rogestam said the LWF has cash-flow problems.
Projects can no longer be prepaid and have to wait until funding is in
hand, she said. 
LWF General Secretary Ishmael Noko admitted that the LWF is in "a very
precarious situation" with staff numbers well below what was called for in
the structure. Staff was expected to be reduced from 120 to 105 as a result
of restructuring, but the current staff numbers 93 and some are only
part-time staff.

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