The misappropriation of funds at the Episcopal Church Center [p. 6 and below] points out the need for parishes and dioceses to have their finances audited. Not only is an annual audit good business practice, it is also canon law.

"All accounts of the diocese shall be audited annually by an independent certified public account," the national canon reads. "All accounts of parishes, missions or other institutions shall be audited annually by an independent certified public accountant, or such audit committee as shall be authorized by the finance committee, department of finance or other appropriate diocesan authority." The canon also requires reports of such audits to be filed with the bishop or ecclesiastical authority of the diocese not later than 30 days following the date of the report.

We would guess that fewer than 25 percent of Episcopal churches abide by this canon. In fact, we asked representatives of 10 churches with whom we happened to be in contact, and only one admitted to having a "real" audit. Two others said members of their parishes did the audits as volunteers.

While church members tend to place great trust in one another, having an audit in a parish or diocese is not reflective of mistrust. It is rather an assessment of accounting principles used and an evaluation of financial statements. It will go a long way to ensure that the sort of thing that took place in the treasurer's office will not happen elsewhere.