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June 6, 2006
To: Bishop Bennison
Standing
Committee
Diocesan Council
We are pleased to forward the
CBIZ Consulting Report to the Episcopal Diocese of Pennsylvania. This
report is the result of the completion of a project authorized by the
Special Convention resolution of March 25, 2006 and managed by the
Special Audit Committee created by that resolution.
The following key findings
are noted:
- There are Unrestricted
Net Assets in excess of $1 million that are sufficient to meet the
$550,000 deficit budget approved at the Special Convention.
- Total spending for
Wapiti is $8,060,623 through April 24, 2006.
- Of the funds reviewed by
CBIZ, all endowment funds agreed with the classification and
balances carried on the Diocesan records.
- To fund recent budget
deficits and to meet cash flow needs, some funds were incorrectly
used for other than designated purposes.
- In order to improve the
endowment fund management functions in the Finance Department of the
Diocese, there needs to be a vast improvement in the procedures
regarding the management of endowment funds, endowment fund
documentation, and use of endowment funds for the Diocesan budget.
- It is imperative to
staff the Finance Department adequately in order to consistently
improve accounting procedures and financial reporting.
- A comprehensive and
fully integrated budgeting process should be instituted.
The Special Audit Committee
intends to provide a separate report on June 12, 2006 in order to place
the CBIZ report in the context of recent Diocesan issues regarding the
management and use of endowment funds.
Respectfully Submitted,
Special
Audit Committee
Spencer Franck,
Chair Pat DiFiore
Jack Henn, Vice
Chair Chandler Joyner
Frank Helminski,
Secretary Bill Powell
William
Bullitt
Alan Segal
Kevin
Cavanaugh George Whitfield
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