Each parish, chapel and institution of the Diocese of Central New York is required to conduct an annual audit in accordance with the most current method of The Episcopal Church Manual of Business Methods in Church Affairs (BMCA).
All parishes, chapels, and institutions of the Diocese of Central New York must complete an audit annually.
There are two types of annual audits, both using the Diocese of CNY audit program:
- Outside Auditor
- Internal parish committee audit
For 2022 calendar year audits only, you may continue to use the checklists and internal committee audit process or if you have a trained team member you may use the new audit program.
There will be a 3-year cycle, with an exception for the year in which the Rector/Chaplain/Priest in Charge leaves the faith community.
Two years may be an internal parish committee audit
The third year will be an outside auditor audit
For the calendar year in which the Rector/Chaplain/Priest in Charge leaves the church, there must be an outside auditor audit. This resets the 3-year cycle of internal/outside auditor.
It is suggested, but not required that a parish may engage a CPA for an audit or review.
Internal parish committee audit team may be 2 to 3 person teams, but no less than 2 people. At least 1 person with auditing experience/accounting knowledge OR diocesan trained and certified volunteers. The team cannon include the treasurer, clergy person, or vestry member of the parish. It can include those individuals from another parish.
Outside auditor could be an audit team from another parish, at least one trained individual from outside the parish working with 1 to 2 people from the parish, or a CPA (LPA or CMA).
The diocese also has available a team of trained diocesan auditors who would be able to perform the outside audit. Suggested reasonable expenses to be reimbursed by the parish (at IRS volunteer mileage rate, provided lunch/dinner as appropriate).
In the event the parish, chapel or other institution controls no assets, funds, bank accounts, or financial resources at any time during a calendar year, they may submit a statement to the Diocese instead of an audit. The statement is to be approved by the Vestry acknowledging it held or controlled no assets, funds, bank accounts, or financial resources during the preceding calendar year.
A diocesan audit program has been created to use in place of the 2 checklists from BMCA. The Parish Risk Assessment/Agreed Upon Procedures report by a CPA will no longer be used.
Annual Audit Deadline
Audits are due in the diocesan office each year on September 1st for the previous calendar year. Electronic submission is preferred. A google drive folder link is available for uploading or scanned and emailed. Hard copies should be mailed to the Diocese of CNY at PO Box 3520, Syracuse, NY 13220.
The audit report submitted shall consist of:
- The completed audit checklists from the Manual of Business Methods in Church Affairs.
- The financial statements for the year audited.
- A copy of the Audit Committee’s comments and findings.
- Detail of steps Vestry will take to rectify the issues found in the audit.
Late or Missing Audits
Parishes, chapels, or other institutions of the Diocese are not eligible to receive grants or loans under any Diocesan programs if their audits or statements are not current. A new rector, chaplain, or priest-in-charge may not be called until the audit has been completed and is on file at the diocesan office.
(BMCA) Checklists required for audit:
- Audits--Internal Controls (Ch. 2, BMCA) - Includes Internal Control Questionnaire
- Audit Guidelines for Congregations (Ch. 6, BMCA) - Includes Audit Program Checklist
- Clergy Discretionary Funds (BMCA, ch. 5)
New checklists coming soon.