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:
- CPA Audit (Parish Risk Assessment/ Agreed Upon Procedures) and
- Audit by Committee
A CPA Audit (Parish Risk Assessment/ Agreed Upon Procedures) is required every seven years, and in any year when the clergyperson in charge leaves a congregation. In other years, an Audit by Committee suffices.
In years when a CPA Audit (Parish Risk Assessment/ Agreed Upon Procedures) is required, the parish/chapel/institution may engage the CPA suggested by the Diocesan Board or select another CPA.
In years when an Audit by Committee is permitted, Audit Committee members may not be persons involved in regular financial decision-making activities of the parish, chapel, or institution (i.e. treasurer, warden, clergyperson, etc.).
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.
Annual Audit Deadline
Audits are due in the diocesan office each year on September 1st for the previous calendar year.
A final report (not draft) of the CPA Audit (Parish Risk Assessment/ Agreed Upon Procedures) or Audit by Committee audit package should be submitted to the Diocese. Electronic copies are preferred.
An audit package for an Audit by Committee must include:
- 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.
Cost of CPA Audit and Audit Scholarships
A CPA Audit (Parish Risk Assessment/Agreed Upon Procedures) by the CPA recommended by the Diocesan Board costs approximately $1,500 plus expenses. This CPA also performs the annual audit of diocesan finances.
The Diocese has a limited number of $700 audit scholarships to offset the cost of your CPA Audit (Parish Risk Assessment/ Agreed Upon Procedures). Download the application form below.
- Diocesan Audit Policy
- The Episcopal Church Manual of Business Methods in Church Affairs (BMCA)
- Request Form for CPA Audit Scholarship
- Clergy Discretionary Funds (BMCA, ch. 5)