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Annual Audit Services for Episcopal congregations

On March 25, 2006, the Episcopal Diocesan Council passed strict audit requirements for member congregations that served to clarify the language regarding annual financial audits described in Canon 17 Section 2 of the Constitution of the Episcopal Diocese of Massachusetts. These new requirements reflected a drastic change in the way the Diocesan previously viewed this annual financial requirement and exemplified the need for congregations to ensure within reason that they are carrying out the fiduciary responsibility entrusted in them.  Regarding this, the following summarized guidelines were approved and beginning with the year ended December 31, 2006, are canonically required.

Very large congregations should engage a Certified Public Accountant to perform an annual audit.

Medium to large congregations should either: (1) engage a Certified Public Accountant to perform an annual audit; or (2) have an Internal Audit performed by an accountant or an Audit Committee as described in the Manual of Business Methods in Church Affairs.  Congregations in this category are strongly encouraged to adopt an audit cycle that includes an audit by a Certified Public Accountant every couple of years and by an Audit Committee in those years in which a Certified Public Accountant is not engaged.

Medium to large congregations are defined as those whose operating expenses are greater than $150,000; as such, your congregation may fall into this category and therefore should have already completed its first independent audit or at the very least should be in the process of implementing the audit guidelines previously discussed. 

Our research has indicated that many of the member congregations have never had an audit performed by an independent audit firm and thus, are confused regarding this process which has caused them to hesitate regarding the implementation of this important financial step.  To address this issue, our firm took a significant initiative during 2007 by dedicating numerous hours in an effort to completely familiarize ourselves with this newly required process and offer our services to various congregations throughout Massachusetts.  As a result of our efforts, we have begun the process of assisting congregations to satisfy this requirement.

We would be very pleased to offer our annual audit services for religious organizations to your congregation and are confident we can assist you in implementing this process in an efficient manner.