Minnesota Church News: NW MN Synod ELCA Treasurer Accused of Embezzeling

Members of the NW MN Synod Council (the synod’s board of directors) met on February 4^th at North Buffalo Lutheran Church, rural Moorhead. They spent considerable time learning about and discussing the situation involving embezzlement of synod funds by former synod bookkeeper Robert Larson, whose position on the synod staff was terminated on January 2, 2012. The disclosure letter regarding the embezzlement that was mailed to all congregations on January 6, 2012 is now posted on the synod website.

Bishop Wohlrabe introduced the discussion by reporting that the synod appears to have ended the 2011 fiscal year “in the black,” with mission support giving having exceeded the anticipated budgetary amount by nearly $50,000. These are “unofficial” figures at this point, though a final report will be available for the synod assembly, May 11-12, 2012.

Synod council members heard an update on the forensic audit from two staff persons, Brett Johnson and Alex Schroeder, both of Eide Bailly LLP, Fargo. Johnson gave some indication of the size and scope of the embezzlement, though specific dollar amounts cannot be released until the forensic audit is completed. Bishop Wohlrabe also updated the synod council members about the status of criminal charges against Mr. Larson and progress in making a claim for recovery of funds with the synod’s insurers. He stated that the new financial operation—involving a bookkeeper “out-sourced” with Fiebiger, Swanson, West & Co—is coming together very well.

Council members discussed several steps to help people of the synod understand the synod’s financial situation and enhance trust among synod and congregational leaders, including:

Setting aside up to 40 minutes of “committee of the whole” discussion time to discuss the embezzlement situation during synod assembly; Having the bishop and/or members of the synod pastoral staff visit all ten conferences prior to synod assembly; and Establishing a new synod Audit Committee to monitor the synod’s financial policies and procedures.

In other matters, members of the synod council

a. Appointed Dr. Paul Dovre to 3-year term on the Board of Directors of Lutheran

Social Service of Minnesota;

b. Voted to divide all worship offerings at synod assembly between the synod’s

seminarian scholarship fund and Lutheran World Relief;

c. Passed two continuing resolutions to the synod’s constitution, bylaws and continuing

resolutions pertaining to changes in the process for electing a synod bishop; and

d. Forwarded a resolution from the ELCA Malaria Campaign team to the synod’s

Committee on Reference and Counsel.

January 6, 2012

The Epiphany of Our Lord

To: Congregations and Rostered Leaders of the Northwestern Minnesota Synod

Dear Servants of Christ,

God’s grace and peace be with you as we walk in the Light of Christ.

Today it is my sad duty to inform you that, having confessed to financial misconduct last Monday, Mr. Robert Larson's employment by the NW MN Synod has been terminated by the synod executive committee effectiveJanuary 2, 2012. Larson had been the synod’s bookkeeper since September 1, 2004.

Awareness of the possibility of embezzlement of Synod funds first came to light late last week, and synod leaders took immediate action to deal forthrightly with this situation—including making a report to the Moorhead Police Department.

In order to ascertain the scope of this financial misconduct, the synod has contracted with Eide Bailly LLP of Fargo to conduct a forensic audit of the synod's financial records during Larson’s tenure on the synod staff. Informed by this forensic audit, a claim will be filed with the synod's insurance carrier, Church Mutual. We will also pursue every avenue of legal recourse that is available to us, trusting that God works through the protective structures of the creation--including law enforcement and the courts.

Even as we deal with Mr. Larson's misconduct and its effects on the life of our synod and its ministry partners, we are also taking specific steps to place our synod’s financial operation on a sound footing once again. These steps include:

Contracting with Fiebiger, Swanson, West & Company, PLLP of Moorhead to manage the bookkeeping functions of the synod office. Fiebiger et al is a trusted financial services firm that works with a number of small businesses and nonprofit organizations.

Reviewing and, as needed, revising our financial management policies and procedures. It is vital that we learn from what has happened in order to minimize the possibility of such financial misconduct in the future.

Keeping the congregations and rostered leaders of the synod informed about what has happened and how we are responding. Please know that because of legal considerations, it may not be appropriate or possible to answer every question persons might have about Mr. Larson’s misconduct, until his case is adjudicated and until we have completed the claims process with our insurance carrier. I regret the fact that Mr. Larson’s serious breach of trust may, for some, tarnish the confidence that you have in all of us who lead our Northwestern Minnesota Synod. We pledge to you that we will do all that is within our power to seek justice for those who have been harmed by Mr. Larson’s misconduct and to rebuild trust across our synod.

This sad experience reminds us once again that “we are captive to sin and cannot free ourselves” (Evangelical Lutheran Worship p. 95). With the Apostle Paul each of us realizes that “I do not understand my own actions. For I do not do what I want, but I do the very thing I hate.” (Romans 7:15) But, for St. Paul and for us, that is not the end of the story: “Thanks be to God through Jesus Christ our Lord!” (Romans 7:25).

Finally, I make two requests of you:

Please be patient with members of our synod staff as we deal with this unfortunate situation. As you might, Mr. Larson's misconduct has shaken us—personally, emotionally, even spiritually. We will do our best to continue serving you, the people of our synod. But we ask for your patience, especially over the next month, if it takes us a little longer to fulfill some requests for information, assistance or the presence of a synod staff person in your congregation.

Please remember in prayer all those affected by this unfortunate situation: the officers of the synod, the synod council, the synod staff, our partners in ministry, and the Larson family. Please pray for God’s healing and restoring power in all of our lives.

I invite you to draw sustenance from the same wellspring of biblical wisdom that is feeding my soul in this difficult time.

“Likewise the Spirit helps us in our weakness; for we do not know how to pray as we ought, but that very Spirit intercedes with sighs too deep for words….We know that all things work together for good for those who love God, who are called according to his purpose.” (Romans 8:26, 28)