ON STEWARDSHIP, ACCOUNTABILITY AND THE WORK THAT LIES AHEAD
Weekly Column by Archbishop Charles Chaput, O.F.M. Cap.
February 3, 2012
When I wrote to the people of the Archdiocese on December 8 last year, I said that we’d
face a great many legal and financial issues in 2012. Last Sunday, January 29, one of
those challenges made Philadelphia Inquirer headlines. A senior member of the
archdiocesan staff stole more than $900,000 of our people’s resources before being
discovered and fired last summer. Our normal outside auditing firm -- independent and
nationally respected -- had previously found no evidence of criminal activity.
The story is not new. In fact, news media first reported this story last July. But neither
the Church nor the District Attorney’s office knew the scope of the loss until last fall.
We’ve been silent on this matter until now for obvious reasons: to allow law enforcement
to do its work. Circumstances have now changed.
People are angry about this loss, and they’re right. So am I. There’s no excuse for it.
Non-profit organizations – like foundations, Churches, museums and many hospitals –
tend to draw mission-driven people as staff. Most of their employees are honest. A few
are not. And in a work environment based on shared beliefs and service, a dishonest
person can do massive damage. Precisely because religious organizations run on the
good will of the people they serve and the dedication of their staffs, they can easily
become too trusting in their internal safeguards. But that only makes the need for tight
financial controls and accounting procedures more urgent.
It’s important to keep a few facts in mind as this story plays out over the coming weeks:
First, the theft occurred from the general operating funds of the Archdiocese. Monies
donated to the Heritage of Faith, Vision of Hope capital campaign and the annual
Catholic Charities Appeal were not impacted in any way. The theft also had no effect on
the work of the Blue Ribbon Commission or the decision to close or regionalize any
school.
Second, based on an outside forensic financial review conducted by the firms of
ParenteBeard and BallardSpahr, the theft was confined to one senior staffer. No other
archdiocesan staff persons were involved.
Third, the Archdiocese has worked with the District Attorney’s office throughout this
investigation. And we will vigorously pursue restitution from the wrong-doer.
Fourth, as bitter as this loss is, insurance will cover much of it. This is little comfort and
absolves no one, but as an immediate concern, at least some of the damage will be made
whole. Moreover, since Catholic Social Services, Catholic Health Care Services and
similar ministries are separate entities from the Archdiocese, they suffered no loss from
the theft.
Fifth and finally, when I arrived in Philadelphia in September, I began a comprehensive
legal and financial review of archdiocesan operations conducted by experienced outside
professionals. That independent review is continuing. We’ve begun to apply its
recommendations in the way we steward the resources entrusted to the Church by our
people. The recruitment of a new chief financial officer is nearing completion. The
search for a new archdiocesan controller is also underway. New procedures are in place
in the areas where the embezzlement occurred. In the coming year, new and much more
rigorous internal controls will take effect, along with tighter budget discipline and a
demand for improved skills in everyone tasked with the management of archdiocesan
resources. To their credit, Bishop Timothy Senior, our moderator of the curia, and Marc
Fisher, the new director of our internal auditing efforts, have been a great help in this
difficult process.
The task ahead is large. But protections are already in effect to help prevent this kind of
damaging criminal activity in the future. Working with our Archdiocesan Priests’
Council, our Archdiocesan Finance Council and the Archdiocesan Pastoral Council now
in formation, I do promise that every aspect of our shared life as a Church will be subject
in the years ahead to the kind of clarity, greater accountability and careful stewardship
our people deserve.
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The above is taken from: http://archphila.org/archbishop-chaput/statements/weeklycolumn4.pdf
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