External Audits in the Diocese of Amarillo

DIOCESE OF AMARILLO
           
November 26, 2019
 
   
 
By definition an external audit is a measurement and report on the state of a business’ finances, made by an external agency. Companies hire audit firms to look at their financial state and receive an objective assessment of their financial position.
 
The Diocese of Amarillo has conducted an external audit annually since 1998. These audits have been completed by licensed accounting firms. Our current auditor is Brown, Graham & Co. Once completed, the audit is presented to the Diocesan Finance Council for their review and approval. Never had there been a suggestion from any auditor that there has been a mis-appropriation of funds or that any restricted funds have been used for anything other than the intent of the donor or granting agency.
 
By recommendation of the USCCB and our Diocesan Attorney, certain funds have been separately incorporated and managed by boards or committees, taking the control of these funds out of the hands of any one individual. This includes the Catholic Foundation of the Texas Panhandle, The Priest Pension Fund, and the Deposit and Loan Fund. Since they are separately incorporated and since these funds are not for the direct use of the Diocese of Amarillo, we have chosen not to include them on our financial statements. These funds belong to parishes and other organizations. The diocese facilitates the organization of boards or committees and the relationship between the fund and banking and investing corporations. The diocese does not charge any fee for providing this service.
 
The “qualified opinion” is a matter of opinion and Brown, Graham & Co.’s interpretation of GAAP (Generally Accepted Accounting Principles) rules. We have asked other diocese in the State of Texas if they receive the same rulings for similar situations. In almost all instances, other dioceses in our region are not required to have separately incorporated funds as a part of their financial statements.
 
The Catholic Foundation of the Texas Panhandle Board of Trustees and the Priest Pension Plan Board of Directors meet on a quarterly basis with representatives of Bank of America/US Trust to review the investment policy and performance of the funds. If there was inappropriate activity the trustees would notice it in the reports immediately.  We do not pay for an audit for the foundation as there are very few transactions. Brown, Graham & Co. looks at the reports we receive and the spreadsheet we prepare to track these funds and have never questioned any transactions that have occurred. The Priest Pension Plan has an actuarial study published annually. This study is provided by Verisight Inc., Chicago, IL.
 
The timeliness of the preparation and publication of the audit has also been brought to question. The fiscal year ends on June 30. It takes at least three to four weeks to receive all of the invoices for monies spent in the previous month. We schedule the field work for the audit to be conducted the second week of August. This is a time that is convenient with Brown, Graham & Co. Once the field work is completed, they return to their offices to complete the final document. Realizing that we are not their only customer, having that report presented to the Diocesan Finance Council in September speaks to the diligence of their company and the fact that very little adjustment needs to be made to our records.
 
We, the members of the Diocesan Finance Council, believe that Bishop Patrick J. Zurek and the accounting staff at the Diocesan Pastoral Center have provided clear and transparent reporting for the use of all funds entrusted to them. We thank them for their faithful service to the Church.
 
Sincerely,
 
Father Francisco Perez, Vicar General
Mr. John Doucette, CPA, St. Mary’s Cathedral
Ms. Louise Ross, St. Mary’s Cathedral
Deacon Raymond Artho, CPA, Immaculate Conception, Vega
Mr. John Husmann, St. Joseph’s, Stratford
Mr. Aaron Sage, St. Mary’s Cathedral