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Parochial Financial Audits Policy

Updated: April 8, 2017Finance & Administration

Parochial Financial Audits Policy

As adopted on April 8, 2017

The Canons of the General Convention (Title I Canon 7 Section F) require that an annual audit of parishes of the diocese be submitted to the Office of the Bishop, such examination being conducted as permitted by Diocesan Council. The canonical deadline for filing the examination report with the Office of the Bishop is September 1 of each year. The minimum requirements are:

  1.  For parishes with an annual operating income of $500,000 per year or greater: Each year engage an outside Certified Public Accountant or accounting firm to perform a Generally Accepted Accounting Principles Audit (work described as compilation or review is not acceptable.) Forward a copy of the entire audit report, the supporting management letter, and the vestry’s response to issues raised by the auditors to the Office of the Bishop.
  1. For parishes with an annual income of less the $500,000 per year:  Use the internal audit program as addressed in the latest edition of the Manual of Business Methods in Church Affairs. The audit will be conducted by person(s) not on staff, not volunteering as a Treasurer for the institution, and not a relative of the Treasurer. The Finance Administrator for the Diocese is available to conduct an internal audit. Upon completion, forward a copy of the entire audit report, the supporting management letter and the vestry’s response to issues raised by the internal auditors to the Office of the Bishop. The Manual of Business Methods in Church Affairs is available online.

Note:  Congregations with loans should check with their lender on audit requirements that the lender might have that are more stringent than the requirements of this policy.

CANON 7 Section (f) All accounts of the Diocese shall be audited annually by an independent Certified Public Accountant. All accounts of Parishes, Missions or other institutions shall be audited annually by an independent Certified Public Accountant, or independent Licensed Public Accountant, or such audit committee as shall be authorized by the Finance Committee, Department of Finance, or other appropriate diocesan authority.