An open letter to Bishop Charles E. Bennison, Jr. from the Standing Committee of the Diocese of Pennsylvania

April 21, 2006

Dear Bishop Bennison:

The Standing Committee observed in the Diocesan financial report as of March 31, 2006 that a drawdown in the amount of $350,000 of Unrestricted Net Assets had taken place. We have been informed that this action took place sometime in March prior to the Special Convention. In light of your expressed commitment to “transparency”, and in the absence of your proper designation of these funds and the approval of Standing Committee in accordance with our Canons, we question why this action was not reported to the Special Convention.

We strongly disapprove of this drawdown. We will ask the help of the Chancellor in establishing procedures to insure that drawdowns will not happen again without proper consultation.

We understand from the Standing Committee liaison to Finance & Property that at the Diocesan Council Meeting of Wednesday, April 19, 2006, it was reported that this drawdown had taken place and the funds would be restored if and when money became available.   While we support this acknowledgement of the error, we believe this is an example of the lack of sound financial practice and oversight that has created the current financial crisis and could bring us to bankruptcy in the future.

As a result of our continuing concern about the finances of the Diocese and your lack of leadership, the Standing Committee strongly reaffirms our call for you to retire or resign.

The Standing Committee