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AUDIT POLICY FOLLOWING DEPARTURE OF RECTOR

Prepared by John T. Curtis, Treasurer
August, 2006

 

On Saturday, July 8th, Diocesan Council passed the following motion:

 

Parishes with a Rector who is retiring or accepting a calling elsewhere hire an accountant licensed in the State of Nevada who is not a member of said Parish, to conduct an audit of the Parish's financial records going back three calendar years. The required audit is to be conducted during the interim period between Rectors and is to be completed prior to the calling of a new Rector.

 

 

In addition, Council passed a second motion:  

 

That the Diocesan Chancellor convert the previously approved policy into the appropriate language for inclusion in Diocesan Canons and submit it in time for approval at the next Diocesan Convention in October, if possible.

 Chancellor was able to convert the policy into the appropriate language for inclusion in the Diocesan Canons and can be found in the Journal of the Thirty-Sixth Annual Convention of the Episcopal Diocese of Nevada.

 

The purpose of this policy is to provide the outgoing Rector peace of mind regarding the proper recording of the Parish financial transactions under their leadership.  Secondly to provide the incoming Rector a clear picture of the financial condition of the Parish prior to accepting the call.  Interestingly, this policy is in keeping with what is emerging as a best practice among Rector candidates prior to accepting a call.  It also helps in achieving the goal of financial transparency for church finances particularly since so few Parishes are conducting the canonically (Canon XII, Section 2) required annual audits.

 

Since adoption of the policy on July 8th, three questions have arisen regarding what is meant by the term accountant licensed in the State of Nevada, what is meant by the term audit, and what three year period is required.  An accountant licensed in the State of Nevada means a Certified Public Accountant (CPA) licensed to practice in the State of Nevada.  

 

The term audit refers to a type of financial examination conducted by a CPA to enable him/her to render an opinion on the fairness of the Parish's financial statements in conformity with generally accepted accounting principles (GAAP).  As for the three year period, the audit may cover either the full three years prior to the official departure of the Rector or the full year of the Rector's departure and the two prior years.  If a Parish in accordance with Canon XII, Section 2, used a CPA and such audits covered either of the two three year periods, then the Rector departure audit requirement would be considered satisfied.

 

If anyone has any questions regarding this policy change, they may contact me at jtcurtis@hotmail.com or calling (702) 363-1516.

 

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