In the report, Anthony B. Martino, chair of the Parish Financial Controls Committee wrote, “It has become painfully apparent that the Church in the Diocese of Buffalo and the United States is not immune to financial malfeasance … while the committee acknowledges the diocese already has very good policies in place, diocesan leadership must redouble efforts to promulgate its parish financial control policies.”

“Strong procedures must be mandated and implemented so that Church administration ensures that monies and resources are safeguarded and expended in accordance with the intention of donors and benefactors. Pastors, parish trustees and parish finance council members charged with the fiduciary responsibility to protect parish assets must lead by example and set the proper tone for each parish,” Martino wrote.

Bishop Kmiec welcomed the report. He said, “I am most appreciative of the yeoman’s work done by the committee. Based on this report, we will further strengthen the fiscal oversight of parish monies. I want to reassure the faithful that we continue to implement measures designed to safeguard parish finances.”

The report noted that the bishop, who serves as president of each parish corporation, “must continue to set the proper tone at the top and lead the way through effective oversight to ensure that parish leadership fulfill its responsibilities. Those in positions of responsibility must be accountable for compliance with all best practices, and understand that abdication of those responsibilities will not be tolerated.”

The committee has made a series of short-term recommendations. Since the leadership of each parish must be held accountable to carry out its fiduciary responsibilities, the committee recommended that pastors, trustees and finance council members be updated regarding their roles and responsibilities for implementing and monitoring internal controls. Zero tolerance for employee theft and lack of implementation of the policies should be the norm.

The committee has also recommended that each parish send a letter to the bishop on an annual basis, containing detailed information on members of parish finance councils, meetings, financial statement and budget information, and completion of an annual internal control self-assessment questionnaire and action plan of the parish finance council to address control weaknesses.
“The committee stressed the critical importance for parish leadership to be held accountable for the implementation and monitoring of strong internal controls,” Martino said. “We are recommending that the bishop consider pastor leadership changes in instances of significant lack of compliance with or disregard for internal control policies.”

The committee has also made the following long-term recommendations: develop financial training programs specialized for each of the following: pastors, trustees and finance council members, business managers and bookkeepers; implement mandatory participation and attendance to earn a certificate of completion as a condition for continued employment as parish business managers and bookkeepers, and consider the benefits and costs of developing uniform financial reporting processes from parishes and schools to the Diocese using standardized software. The report noted that the committee recognizes that this is a major undertaking both in scope and cost.

A final recommendation advises that the bishop should consider having the parishes as a group contract with specialists in the development of a uniform system of accounting and financial reporting, using state of the art technology, for entities with financial transactions in numerous locations that vary in size and complexity.

As part of the report, the policies in the Diocese of Buffalo’s Business Administration – Best Parish Practices document and the Parish Attestation/Representation Letter were distributed to all parishes in October with a recommendation that adherence to these policies be mandatory. Training sessions will be held by the end of the year with pastors, administrators, trustees, and finance council members to explain the roles and responsibilities of finance council members and educate parish staff on the process of internal control implementation and monitoring.