Posted in Weekly column from Archbishop Chaput, on February 3rd, 2012

Putting our house in order – on stewardship, accountability and the work that lies ahead

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.

14 Responses

I had just finished reading this article http://ncronline.org/blogs/ncr-today/embezzlement-expert-finds-hierarchy-uninterested#.TytXvtTqm_4.email
before I read the bishop’s statement. Very disconcerted.

By: grace bernardi on February 3, 2012 at 9:13 am

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Thank you for your clear explanation, and openness.

By: George Moore on February 3, 2012 at 9:50 am

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This continues to rip away the fabric of the Archdiocese but not my faith!

It is clear the past has kicked many cans down the road to your feet and I pray each day for a new beginning and openness.

By: Eugene VanArsdale on February 3, 2012 at 10:45 am

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- Amen.
  
  By: Susan on February 5, 2012 at 9:03 pm
I am sorry you had to do this, Archbishop. It is too bad your job can’t be just sacraments and pastoral guidance. We all appreciate being told the truth no matter how bitter it is. Next: let’s all fight against the HHS madate to pay for sterilizations, birth control and medicine induced abortions. I want you to know you are in my prayers, and stand your ground!!!

By: JotheHousewife on February 3, 2012 at 10:53 am

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Dear Archbishop,
I admire and respect your openness in this situation. I only hope it will be the same for the costs involved in the priest abuse trial and the litigation/compensation/therapy, etc of the entire priest abuse scandal. You are in my prayers. Linda Ireland

By: linda ireland on February 3, 2012 at 10:55 am

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Thank you Archbishop, for your candor and openness on this issue.

By: Jim Roberts on February 3, 2012 at 12:14 pm

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Such a sad state of affairs. I appreciate your candor and the way you are taking charge of things. As was said above, it is a pity we can’t focus on the Sacraments and pastoral guidance but, being in the world, we need to be wise in how we manage resources. While it must be hard, know that you are in my prayers and those of so many others.

By: Mark S. on February 3, 2012 at 12:36 pm

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Thank you for your untiring steadfast work for the Gospel. In order to be meritorious Christian stewards we need to be fervent disciples of Our Lord Jesus. It seems that we need to get back to basics. Homilies which challenge the flock to turn away from sin and toward the good without reserve. Obviously many Catholics are not folloiwng Him but believe they are! Almost like having two sides to their being! What is causing this? A lack of conscience? A lack of striving for the good? The Shepherd’s voice needs to be heard clearly by his flock so that they can be led to safety with Lord and away from the death of the enemy!

Thank you your Excellency for being unabashed about calling it like it is!
For challenging your flock with the Truth! I will pray all involved!

By: Franciscan on February 3, 2012 at 3:37 pm

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Archbishop Chaput,

I am an ardent fan of yours, but I wouldn’t have taken your job for all the tea in the East!

I have been in the insurance business for 40 years now and the the most surprising claims have been from employee fidelity loss. The perpetrators were universally trusted and liked, the methodology of the crime astounding and the amounts involved often very significant. In other words, people, particularly larcenous people, are very innovative in their methods of diverting funds, often far ahead of security or or auditors control techniques.

Having said that, and with all respect to the good people of Philly, I fear a larger battle looms for leaders of your skill set on the National Arena.

It is time to speak out, from the pulpit and forcefully, about the malevolent anti-Catholic administration now dictating our lives. I hope you can work it into your message in a time of trial for your Archdiocese.

God bless your ministry!

By: Peter on February 3, 2012 at 7:19 pm

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- It is absolutely time to speak out from the pulpit: financial matters, healthcare by big government, illegal immigration!
  
  By: constance kelley on February 6, 2012 at 11:59 pm
Thank you Archbishop for saying you are angry at a senior member of the archdiocesan trusted staff who steals money from the church. You were right to be angry at her betrayal of trust. I was wondering if she admits stealing, make restitution, confess her sorrow at her betrayal with a firm resolve, if given a change, never to do it again would you trust her and rehire her? That is a difficult question I realize.

I am also angry at senior church clergy staff. Like you I want to trust our church senior clergy to always believe and act as Jesus’ direct us “to do to others as we would have others to do us.” With the grave sin of allowing Catholic children to be abused, paying parents for their silence, moving abusing priests into other parishes knowing the history of abusing priests again abusing additional children is beyond my ability to trust senior clergy staff. The senior clergy has yet to admit their involvement, confess their sorrow over failing to obey Jesus’ command to do no harm to children and while knowing Jesus said harming children was punishable by death.

Our conscience helps us to know what is right or wrong. Your trusted staff employee knew she was doing wrong. My question is how could so many senior church clergy members not follow their righteous conscience?

By: Craig W. Eiser,Sr. on February 5, 2012 at 8:58 pm

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Thank you for your openness and willingness to address the issues. You are in my prayers daily at Mass. May the Lord keep you and strengthen you for the task ahead. Remember that ….”I can do all things through Christ who strengthens me…”.

By: Barbara Ann Fields on February 6, 2012 at 1:08 pm

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QUESTION: Why does the Archdiocese, in financial crisis, supply free lunches at WIC? Just trying to make sense of a non-profit giving to a government agency?

By: constance kelley on February 7, 2012 at 12:02 am

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