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Guidelines for Financial Audits

An annual audit is a canonical requirement of The Episcopal Church.

Title 1, Canon 7, Sec. 1(f)-(g):

All accounts of Parishes, Missions or other institutions shall be audited annually by an independent Certified Public Accountant, or independent Licensed Public Accountant, or such audit committee as shall be authorized by the Finance Committee, Department of Finance, or other appropriate diocesan authority.

All reports of such audits, including any memorandum issued by the auditors or audit committee regarding internal controls or other accounting matters, together with a summary of action taken or proposed to be taken to correct deficiencies or implement recommendations contained in any such memorandum, shall be filed with the Bishop or Ecclesiastical Authority not later than 30 days following the date of such report, and in no event, not later than June 1 of each year, covering the financial reports of the previous calendar year.

Overview of Audit Process and Requirements

The Diocesan Council of the Diocese of Newark has approved the use of a standard Audit Checklist to be used by Parish Audit Committees for all audits that are submitted.  Congregations that currently have audits performed by independent CPAs are urged to continue with having audits performed by CPAs.  Audits that are performed by Parish Audit Committees as outlined in the Requirements for Annual Financial Audits are to follow the guidelines that are provided by the Diocese of Newark.

A PDF file of the Guidelines for Financial Audits is included, as well as Word documents that are to be used to document the audit.

List of Documents to be Submitted at Conclusion of Audit

When the audit has been completed, certain documents are to be completed and forwarded to:

Chief Financial Officer
The Episcopal Diocese of Newark
31 Mulberry Street
Newark, NJ 07102

The audit will not be considered complete until all of the documents outlined in the List of Documents to be Submitted have been received by the CFO.