Audits and Reviews

The Episcopal Church in Connecticut has adopted these financial reporting requirements in order to fulfill its responsibility for annual financial oversight of its parishes in accordance with the canons of The Episcopal Church.

The required Financial Review or Audit will help ECCT determine the financial health of its parishes and whether adequate accounting procedures and safeguards are being followed.

The reporting requirements depend on a parish’s total revenues (as reported on line D of the Parochial Report) and are designed to provide ECCT with the information it needs to assess a parish’s financial health and strength of its financial processes. Additional information is available in the Parish Financial Reporting Requirements Manual.

Resources for completing audits and financial review reports are below. Completed audits and reports should be uploaded to their respective parish’s private ConnECCT folder. All submissions after the deadline may be sent to Data Analyst Manager Gigi Leackfeldt.

Financial Reviews and Audits are due annually on September 1.

Parishes with total revenues less than $750,000…

a financial review of agreed upon procedures is required. The independent accountant engaged by the parish to perform the review should include in the scope of its engagement letter the development of:

  • A summary of findings letter to management
  • A statement of financial position based on information (unaudited) that is presented by the parish
  • An assessment of the adequacy of the parish’s financial controls as assessed against a listing of agreed upon procedures
  • An evaluation of the process the parish used to complete its Parochial Report submission for the period being reviewed

Parishes with total revenues greater than $750,000…

a formal audit is required. The independent accountant engaged by the parish to perform the audit should include in the scope of its engagement letter the development of:

  • A summary of findings and qualifications letter to management
  • An audited statement of financial position
  • An audited statement of financial activity and changes in net assets
  • An audited statement of cash flows
  • Explanatory notes to these statements
  • An assessment of the adequacy of the parish’s financial controls
  • An evaluation of the process the parish used to complete its Parochial Report submission for the period being audited

Financial Reviews & Audits Canonical Requirements

ECCT Canons related to Financial Reviews & Audits

CANON IV – BUSINESS METHODS IN CHURCH AFFAIRS

Sec. 2. D) All accounts shall be subject to independent verification by an independent Certified Public Accountant or independent Accountant, or by such an audit committee as shall be permitted by the Bishops under guidelines established by the Finance Committee. All audit reports, any supplemental memorandum, and summaries of actions taken or to be taken to correct any deficiencies or to implement other recommendations shall be filed with the Bishops not later than 30 days following the date of such report, and in no event later than September 1 of each year, covering the financial reports of the previous calendar year.