Diocesan Audit Favorably Reviewed by AICPA

March 23, 2006

JOHNSTOWN,  PA - The quality control system of the accounting firm of David Brenner, CPA, of Cranberry Township, PA which has provided annual independent audits of our diocesan finances for nearly twenty years was reviewed last fall by Diefenbach, Delio, Kearney and DeDionisio, Certified Public Accountants, of Erie, Pennsylvania.

The purpose of this review system, established by the Peer Review Board of the American Institute of Certified Public Accountants (AICPA), is to determine whether an accounting and auditing firm has adopted and put into practice procedures that "provide it with reasonable assurance of conforming with professional standards as established by the AICPA.

In the course of this review, our diocesan audit for calendar year 2004 was selected as a test case of the quality of Brenner's procedures. The findings of this review stated that, "In our [Diefenbach, Delio, Kearney and DeDionisio] opinion, the system of quality control for the accounting and auditing practice of David Brenner. CPA in effect for the year ended April 30, 2005, has been designed to meet the requirements of the quality control standards for an accounting and auditing practice established by the AICPA and was complied with during the year then ended to provide the firm with assurance of conforming with professional standards."

Over twenty years ago, our Diocese transitioned from an internal auditing committee of two clergy and two lay members to contracting with a professional, independent auditor. This decision was taken to ensure the quality of diocesan financial procedures, reports and audits, as well as to provide an assurance that all diocesan financial transactions would be handled in a transparent and forthright manner.

Since adopting the practice of independent audits, the Diocese has consistently received unqualified opinions from its auditors that the reports which it issues annually to its trustees and to its membership at its triennial Councils/Sobors "present fairly, in all material respects, the financial position of The American Carpatho-Russian Orthodox Greek Catholic Diocese of the USA, ...changes in net assets. functional revenues and expenses and cash flows ...in conformity with generally accepted accounting principles."

In addition to the independent auditor, the diocesan Bishop appoints an elected lay member of the diocesan board of trustees to serve as a liaison between the trustees and the independent auditor. Stephen Hall was appointed by Metropolitan Nicholas to serve in this position from 2003 to 2006. Mr. Hall has received the preliminary diocesan audit for the period ending December 31, 2005 from David Brenner. In a recent telephone conversation, Mr. Brenner complimented the diocesan chancery staff for their excellent bookkeeping practices. The auditors final report will be presented at the July 2006 Sobor in Greenwich, Connecticut.