Diocese of Bethlehem, Audit Committee
December 19, 2014
Dear Sisters and Brothers:
We are enclosing the final audit report, summary report, and communications letters regarding the financial statements of the Diocese of Bethlehem for the year ending December 2010. You may remember that these reports represent the third completed audit of the finances of the diocese of six financial audits (2008 – 2013) Bishop Sean and the Standing Committee hired the accounting firm of Campbell Rappold & Yurasits to undertake last March.
These are the complete reports as presented to the Audit Committee. No information has been left out. These audit reports and letters indicate the firm has found no malfeasance or misuse of funds in the years that have been examined. However, as with the previous two reports, the auditors have pointed out a number of weaknesses and deficiencies which must be addressed and which are being addressed effective this fiscal year.
As has been previously reported to this end, the Bishop and members of the Audit Committee have already taken significant corrective actions.
The payroll function, which took up a significant amount of staff time each week, has been outsourced and changed to a bi-weekly schedule. It is worth noting that outsourcing the payroll provides important internal control.
The accounting staff has been directed to perform only accounting responsibilities so that this crucial area of work receives the attention it deserves. The staff now reports directly to the Treasurer elected at our last convention.
By February the accounting functions will be consolidated from four different general ledgers in two different outdated accounting packages onto one ACS software package, the state-of the-art, integrated accounting system for churches previously described, thereby allowing for greater accuracy, resulting in fewer misstatements, and making better use of staff time. Priority will be given to getting this system up and running so that 2015 accounting is done on ACS.
Under the leadership of Bishop Sean, Archdeacon Cluett and Treasurer Charlie Barebo the Diocese is creating an Accounting Manual to inform all employees of internal control protocols, operating procedures, and policies adopted by the Diocese. The Manual of Business Methods in Church Affairs of the Episcopal Church will serve as our guide for setting policy and our standard for ongoing work. All weaknesses and deficiencies that have been identified in these audits will be properly addressed and remedied in our Accounting Manual. In fact many of the problems have already been rectified; improved procedures and internal controls have been put into place over the previous months as the work of the auditors on site has been ongoing. It is important to note, however, that the audits of the years 2008 through 2013 reflect the practices previously in place so that deficiencies in procedures pointed out in the 2008 and 2009 audits remain in this audit.
We are distributing these materials to the members of the Standing Committee, Diocesan Council, and Incorporated Trustees, clergy, vestry officers, parish administrators and 2014 convention delegates. The reports will also be posted on the diocesan web site.
When the remaining audits are completed, each time, as the final reports and letters are received by the Audit Committee, we will disseminate the information to the people of the Diocese.
Yours in Christ,
Ms. Libby House, Chair of the Audit Committee
For the Members of the Audit Committee
↳ 2010 Audit Report Committee Cover Letter.pdf
↳ 2010 Audit Report Financial Statements.pdf
↳ 2010 Audit Report Governance.pdf
↳ 2010 Audit Report Internal Controls.pdf