SPECIAL AUDIT COMMITTEE LETTER

 

 

 

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: 

  1. 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.
  2. Total spending for Wapiti is $8,060,623 through April 24, 2006.
  3. Of the funds reviewed by CBIZ, all endowment funds agreed with the classification and balances carried on the Diocesan records.
  4. To fund recent budget deficits and to meet cash flow needs, some funds were incorrectly used for other than designated purposes.
  5. 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.
  6. It is imperative to staff the Finance Department adequately in order to consistently improve accounting procedures and financial reporting.
  7. 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