The Episcopal Diocese of Southwestern Virginia 100th Annual Convention

audit performed by a Certified Public Accountant can cause. The Committee, in its review and recommendation, has attempted to address these concerns. More specifically, the proposed amendments provide for three options to eliminate the need for annual audit performed by a certified public accountant. Based on the foregoing, the Committee recommends deleting Sections 3 and 4 of current Canon 13, and replacing them with the following: Section 3. All accounts having to do with receipts and

expenditures of money of all diocesan organizations, including parishes, missions, and other institutions, shall be audited at the close of each year by a certified public accountant, provided, however, that if the amount of income/expenses for the year as shown by the account shall be less than three thousand dollars ($3,000), or if a certified public accountant be not available, the audit may be made by an accountant bookkeeper in no way connected with the subject matter of the account. However, each account subject to this Canon shall be audited by a certified public accountant at least once every three calendar years unless the Bishop of the Diocese, acting with the advice and consent of the Standing Committee, grants written consent to dispense with this requirement. Therefore, the accounts of parishes, missions, and other institutions having income/expense for the year of three thousand dollars ($3,000) or more may, with the previous consent of the Bishop of the diocese acting with the advice and consent of the Standing Committee, in lieu of a professional audit by a certified public accountant, be audited in one of the following manners: a) the engagement of a Certified Public Accountant to examine accounts using Agreed Upon Procedures (AUP) approved by the Finance Working Group (or Finance Committee) of the diocesan Executive Board. b) the engagement of a review committee of a parish or mission approved by the vestry or if an institution approved by the institution’s board to examine accounts using Agreed Upon Procedures (AUP) or a Review Checklist approved by the Finance Working Group (or Finance Committee) of the diocesan Executive Board, if: i) the committee is composed of not less than three (3) persons, all of whom are unrelated; ii) the committee has no members who have the authority to sign checks or otherwise access funds of the diocesan organization; iii) the committee has no members involved in the counting or deposit of the receipts of the diocesan organization; and iv) each member has appropriate and relevant knowledge and talents (including, for example, familiarity with business, financial, or accounting principles) to conduct the review. c) the engagement of an external review team appointed by the Ecclesiastical Authority consisting of three (3) persons resident in the diocese that have appropriate and relevant knowledge and talents (including, for example, familiarity with business, financial, or accounting

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