Report on the Necessity for an Ongoing Independent External Financial Audit of the Self-Ruled Antiochian Orthodox Christian Archdiocese of North America July 23, 2009 Report on the Necessity for an Ongoing Independent External Financial Audit Executive Summary In a recent interview in The Word magazine, external audit is conducted by an accounting firm, Metropolitan Philip commented on the financial rather than by an auditor employed by the scandal that has rocked the Orthodox Church in organization. Audits that are not independent and America (“OCA”) in recent years and praised the external will not contribute to peace, and it is with this OCA for the steps it has taken to increase its financial in mind that this report sets forth the background transparency. rationale for an INDEPENDENT, EXTERNAL AUDIT of Archdiocesan financial activity: As faithful throughout the Self-Ruled Antiochian Orthodox Christian Archdiocese of North America Part I presents an overview of the many questions (the “Archdiocese”) came to grips with the recent that are now being asked about financial matters ecclesial crisis in our Archdiocese, they began to within the Archdiocese, including questions regarding notice that the Archdiocesan financial statements are the incomplete financial reports, absence of neither audited nor complete and to hear (and perhaps independent audits, and failures by the Archdiocese to even believe) rumors of financial ...
Report on the Necessity for an Ongoing Independent External Financial Audit of the Self-Ruled Antiochian Orthodox Christian Archdiocese of North America July 23, 2009
Report on the Necessity for an Ongoing Independent External Financial Audit Executive Summary In a recent interview in The Word magazine, external audit is conducted by an accounting firm, Metropolitan Philip commented on the financial rather than by an auditor employed by the scandal that has rocked the Orthodox Church in organization. Audits that are not independent and America (“OCA) in recent years and praised the external will not contribute to peace, and it is with this OCA for the steps it has taken to increase its financial inmind that this report sets forth the background transparency. rationale for an INDEPENDENT, EXTERNAL As faithful throughout the Self-Ruled Antiochian AUDIT of Archdiocesan financial activity: Orthodox Christian Archdiocese of North America Part I presents an overview of the many questions (the “Archdiocese) came to grips with the recent that are now being asked about financial matters ecclesial crisis in our Archdiocese, they began to within the Archdiocese, including questions regarding notice that the Archdiocesan financial statements are the incomplete financial reports, absence of neither audited nor complete and to hear (and perhaps independent audits, and failures by the Archdiocese to even believe) rumors of financial improprieties. As a meet reporting requirements under New York result, a great many members of the Archdiocese are Corporation law. now beginning to echo our Metropolitan’s sentiments Part II analyzes a sample of the obvious in calling for independent financial audits and enhancedfinancialaccountabilityintheArchdiocese,dAerfcihcideinoccieesse,’socmuirsrseinotnsf,inaanncdialinrceopnosritsst,enincicelsudiinngt(hie)so that shadows of rumors might be permanently the absence of a balance sheet, (ii) the lack of standard chased away. reporting, (iii) missing financial statements for The fraudulent financial activity within the OCA designated and restricted funds, as well as subsidiary went undetected for years and became deeply corporations of the Archdiocese (such as Conciliar entrenched for many reasons, including: Media Ministries, Inc.), (iv) insufficient reporting on • StrongandmisplacedtrustbythefaithfulinthetchoentrpiebruftoiromnsantcoethaendOrudseerooffSats.sIegtsn,at(ivu)ss(hvio)rtfmailslssinignhonest handling of Church funds and assets by the , hierarchyandgoverningcouncil;ihnocnoomraerifaropamidAtorcahnddiogciefstasnmsaadcerabmyetnhtealMfeetersopaonlditaonn , • Virtually nonexistent financial transparency; and (vii) proper use of designated special collections, and internal inconsistencies in fin • Thelackofregular,independent,externalaudits.t(hveiii)AntiochianVillage,theChildraennc’isalrReeplioerftinFgufnodr,The OCA took a number of actions, all praised by Food for Hungry People, and the Heritage and our own Metropolitan, to cure its ills, including (i) Learning Center. concerted efforts by the laity to “trust but verify the h A statementsofthoseinpositionsofauthority,(ii)thedispePlaratnIIuImabdedrreosfsesshathmeefnuelerdufmoorrtsbeandricehddiaobcoeusteotonprovision of more detailed, current, and frequent the Internet. financial reports, and (iii) engagement in regular, independent, external audits. PartIV concludes that, because of the foregoing, the following actions should be taken: Engagement in regular, independent, external audits, now common in religious, as well as secular • Inclusion of a complete set of financial statements organizations, represents the most critical change in and disclosures in the Archdiocese’s annual the OCA for a number of reasons. First, without such financial report; audits, true financial transparency is very difficult to • Annual independent external audits of the achieve, as an auditor’s expertise and independence holdsanorganizationtothehigheststandardsandtAhrrceehdyioecaress’anaufidnitasnccioanldsutcatteedmebnytso,newiotfhtthhee“fiBrisgthelps identify and correct, weaknesses in the financial reports and processes. Second, such audits create Four international accounting firms; financial data in which the laity has confidence. • Establishment of a “baseline through a “Big To be effective, an audit must be both (i) Four audit of the three prior fiscal years (2006-independent and (ii) external. An independent audit is 2008); and conducted by a disinterested third party, not someone • Establishment of a truly independent Audit who belongs to the audited organization or who has a Committee by the Board of Trustees. relationship with members of that organization. An
Table of Contents I. Overview ................................................................................................................................................ 1 A. Seriously Incomplete Financial Reporting ....................................................................................... 1 B. Unaudited Financial Statements ....................................................................................................... 1 1. Basic Common Sense ................................................................................................................. 1 2. Recent Financial Scandals and Resulting Changes in the OCA .....................................1 3. Purpose of Regular Financial Audits ..............................................................................2 C. Long-Neglected Legal Requirements ............................................................................................... 3 II. Deficiencies, Omissions, and Inconsistencies in Current Reporting....................................................... 4 A. Absence of a Balance Sheet ............................................................................................................. 4 B. Absence of Standard Reporting ....................................................................................................... 4 C. Natural Outgrowths of the Absence of a Balance Sheet or Standardized Reporting ....................... 5 1. Additional Deficiencies ............................................................................................................. 5 a. Missing financial statements ................................................................................................ 5 b. Performance and Use of Assets ............................................................................................ 5 c. Shortfalls in Order of St. Ignatius Contributions.................................................................. 6 2. Apparent Omissions .................................................................................................................. 6 a. Archdiocesan “Sacramental Fees........................................................................................ 6 b. Honoraria and Gifts .............................................................................................................. 7 c. Special Collections ............................................................................................................... 7 d. Investments........................................................................................................................... 7 e. Other organizations controlled by the Archdiocese.............................................................. 8 f. Other endowments and “funds possibly controlled by the Archdiocese ............................. 8 g. Balamand Educational Foundation, Inc. .............................................................................. 9 h. Missing information about bonds and real estate ................................................................. 9 3. Internal Inconsistencies ........................................................................................................... 10 a. Antiochian Village.............................................................................................................. 10 b. Children’s Relief Fund ....................................................................................................... 10 c. Food for Hungry People ..................................................................................................... 10 d. Heritage and Learning Center ............................................................................................ 11 III. Issues Which Must be Dispelled ........................................................................................................... 12 A. Condo in Florida............................................................................................................................. 12 B. Payments to Bishop Demetri .......................................................................................................... 12 C. The Englewood Real Estate ............................................................................................................ 12 D. Number of Signatories on Checks .................................................................................................. 12 IV. Basic Actions that Need to be Taken.................................................................................................... 13 A. Complete Annual Financial Statements ......................................................................................... 13 B. Annual Independent External Audits ............................................................................................. 13 C. Initial Audit of Three Prior Years .................................................................................................. 13 D. Establish Audit Committee ............................................................................................................ 13 E. Processes and Controls .................................................................................................................. 13
i
Report on the Necessity for an Ongoing Independent External Financial Audit of the Self-Ruled Antiochian Orthodox Christian Archdiocese of North America July 17, 2009 I. Overview For a number of years, the annual financial reports produced by the Self-Ruled Antiochian Orthodox Christian Archdiocese of North America (the “Archdiocese) have sparked many questions. It is only natural that the current ecclesial crisis that began on February 24, 2009, has caused people to focus even more intently on financial matters within the Archdiocese. These questions arise because of three glaring problems: • Seriously incomplete financial reporting; • Unaudited financial statements; and • Long-neglected legal requirements. A. Seriously Incomplete Financial Reporting Simply put, the Archdiocese’s current financial statements do not comply with current financial accounting standards for non-profit organizations. Aside from disclosure issues, the most pronounced deficiencies are the lack of a balance sheet and a cash flow statement. Without these, the Metropolitan, the Board of Trustees, the clergy, and the laity have no legitimate assurances as to the financial health and viability of the Archdiocese. Appropriate footnote disclosures to the financial statements, which allow the readers to begin to understand the true financial picture of the Archdiocese, are also missing. B. Unaudited Financial Statements 1. Basic Common Sense The Archdiocese is a multi-million dollar organization. In the 21 st century, it is unheard of for such organizations not to have their financial statements audited and certified by independent external auditors, most often by Certified Public Accountants. Unaudited financial statements create the potential for staff and employees of such an organization, with the assistance of a complicit and/or unskilled financial officer, to line their pockets with the funds of others. To avoid this risk, both the Greek Orthodox Archdiocese of America (the “GOA) and the Orthodox Church in America (the “OCA) require their own financial statements to be independently audited. In addition, the GOA requires separate independent audits of its pension program and institutions with affiliated endowments. 2. Recent Financial Scandals and Resulting Changes in the OCA As many are aware, revelations of serious financial misdeeds reportedly originating with its top-level hierarchy and financial officers have staggered and crippled the OCA. These misdeeds arose precisely because of the lack of independently verified financial transparency and accountability. In response to that financial scandal, the OCA, after ridding itself of problematic persons, quickly adopted a “Best Practice Principles and Policies for Financial Accountability platform to ensure its integrity. As Metropolitan Philip reminded us recently when referring to the OCA financial scandal, “We can learn a great deal from that unfortunate thing which happened . . . .
1
The following is the opening section from the OCA’s published “Best Practice Principles and Policies for Financial Accountability. 1 While it encompasses more than just the need for independently audited financial statements, the Archdiocese can learn a great deal from it. Metropolitan Philip has noted the need to immediately initiate annual audits of the Archdiocese’s financial statements and to adopt policies and procedures similar to those described in official OCA documents: The Orthodox Church in America complies with applicable laws and regulations, including the Charter of the Orthodox Church in America and the Statutes of the Orthodox Church in America. As a non-profit organization, the Orthodox Church in America recognizes its responsibility to the recipients of its services, as well as to donors and regulatory agencies. The reputation of the Orthodox Church in America for responsibility, accountability, ethics and fair-dealing is of the highest importance. Should our reputation be compromised, substantial damage can be expected to the potential fulfillment of our mission. For this reason, utmost care and discipline must be exercised in the establishment of and adherence to the Church policies and procedures for financial accountability. As the Body of Christ, the Church must be truthful, as Christ is the Truth (John 14:6). We must be trustworthy for “it is required of stewards that they be found trustworthy. (1 Cor 4:1-2) All must be open, as Jesus said: “There is nothing hid, except to be made manifest; nor is anything secret, except to come to light. (Mark 4:22) We must be willing to be measured, as the Lord desired to measure Israel “Behold, I am setting a plumb line in the midst of my people Israel. (Amos 7:8). The Orthodox Church in America has adopted these best practice principles for financial accountability: • Establish clear and decisive financial governance • Adopt ethics and conflict of interest policies • Design and implement appropriate financial controls • Conduct annual independent audits of our financial statements Ensure transparency of financial data and performance • • Develop and maintain knowledge of emerging non-profit issues. 3. Purpose of Regular Financial Audits Popular media unfortunately associates financial audits with wrongdoing when, in fact, the opposite is true. In the “real world, an organization seeks out independent external audits of its own financial affairs to assure its owners, potential investors or donors, and sometimes the government and the general public that its financial affairs are exactly as they have been portrayed by its administration and/or management. In other words, an independent external audit constitutes a protective mechanism for those in authority over finances. It is a demonstration of integrity, and a key means by which an organization gains the confidence of donors and investors. Metropolitan Philip articulated this last principle clearly in the April 2009 edition of Word Magazine : One time I remember a bishop telling me that our Orthodox people are stingy, they’re not generous. I told him, I disagree with you. Our people are generous, but you have to show them what you are doing. If you show them what you are doing, they don’t give you their money only; they’ll give you their hearts. They give you their lives. 1 The OCA’s “Best Practice Principles and Policies for Financial Accountability is currently available for download at http://www.oca.org/PDF/finances/Best_Practices_Poli y_ .pdf c v1.01 2
Rumors of financial mismanagement have unfortunately abounded in our Archdiocese for years, and have increased exponentially over the past six months. They must be convincingly dispelled, lest donors begin to shun the Archdiocese or parish councils begin voting to withhold parish assessments. The best way to dispel the rumors is through an independent external audit 2 Such an audit could help end the crisis in our Archdiocese by proving that Archdiocesan finances have been properly handled throughout the years. Those in charge of the financial affairs of the Archdiocese should favor an independent external audit, because it should clear them of all the rumors of wrongdoing. We already know what Metropolitan Philip’s position is on an independent external audit, because he is on record as saying, “I think transparency in financial matters is extremely important. The transparency that he values should be independently confirmed, in order to show the world that the Archdiocesan administration is above reproach. C. Long-Neglected Legal Requirements Finally, the Archdiocese has not met the requirements of the Not-for-Profit Corporations Law of the State of New York (wherein it is incorporated) for at least the past twenty years. This law requires a religious corporation to publish detailed financial reports annually. Within six months after the end of its fiscal year, the Archdiocesan Board of Trustees must present at an annual meeting of its members (understood to be churches or parishes) a report that must include the following financial statements for the prior year: • A statement of financial position, or balance sheet, including trust funds; • A statement of changes in assets and liabilities, including trust funds; and • A statement of cash flow for the fiscal period, for both general receipts and expenditures, as well as for those restricted to particular purposes. The law requires that this report, including the three statements listed above, be certified by independent accountants or verified by either (i) the president and the treasurer of the Archdiocese or (ii) a majority of the Board of Trustees. It is likely that these simple requirements have not been satisfied because of ignorance of the law rather than a desire to break the law. Nevertheless, as they have not been satisfied, the Archdiocese should act quickly to commission an initial independent external audit. It must be remembered that individual Trustees and the Archdiocese as a whole can be held liable even for seemingly innocent acts (such as the diversion of restricted funds to another seemingly legitimate use), This initial audit will necessarily be more involved than later audits, since the first group of auditors will have no foundation from which to begin. Once it is completed, however, it will provide an independently verifiable starting point for future statements. Trustees should demand nothing less, in order to protect both themselves and the Archdiocese from potential liability.
2 A few Archdiocesan Trustees have occasionally called for audits in the past, but no audits have been done in recent memory. 3
II. Deficiencies, Omissions, and Inconsistencies in Current Reporting A. Absence of a Balance Sheet As noted above, the annual reporting of the financial position and activities provided by the administration of the Archdiocese does not comply with current financial accounting standards or New York legal requirements for non-profit organizations. TheArchdiocese does provide an annual income statement (i.e., a report that shows income and expenses over a specified period of time). However, an income statement without a balance sheet only shows part of the Archdiocese’s financial picture. The importance of a balance sheet cannot be overstated: • A balance sheet, also called a statement of financial position, constitutes a snapshot of the financial position and health of an organization at a particular point in time. • A balance sheet presents an organization’s assets (e.g., real property, cash, investments, and other property) and liabilities (i.e., amounts owed by the organization, such as loans, mortgages, and accounts payable). • A balance sheet reveals an organization’s net worth and is the anchor that “proves that the income statement is accurate. • Without the presentation of a balance sheet “snapshot from both the beginning and end of a period, income statements can present wildly inaccurate numbers and give the reader no basis upon which to raise any specific questions (other than to ask to see the balance sheet). • A balance sheet is critically important when undertaking any substantive planning involving finances, such as capital projects or budgeting for future years. Archdiocesan Trustees are responsible for managing the temporal affairs of the Archdiocese. Without a balance sheet, they only have a fraction of the information needed to assess the quality of past actions and make reasonable decisions and recommendations concerning the financial future. B. Absence of Standard Reporting The second glaring problem is that the limited reporting actually provided in the Archdiocesan financial statements does not comply with classification and disclosure standards commonly used in non-profit financial reporting. These standards were developed to permit a reader to understand easily the nature of the various receipts, disbursements, and the restrictions upon them. Examples of such non-compliance include, but are certainly not limited to, the following: • Failure to designate receipts as unrestricted, temporarily restricted, or permanently restricted. This is critically important for a non-profit organization. • Lack of footnote disclosures of significant accounting policies, related party transactions, and contingencies. • Lack of numerous footnotes required with the presentation of the unfortunately absent balance sheet, including specific details of fixed assets, liabilities, the specifics of both temporarily and permanently restricted net assets, grants payable, and many more.
4
C. Natural Outgrowths of the Absence of a Balance Sheet or Standardized Reporting The two deficiencies described above will naturally elicit further concerns from the financially savvy reader because of (1) additional deficiencies, (2) apparent omissions, and (3) internal inconsistencies. 1. Additional Deficiencies a. Missing financial statements The Archdiocese’s most recent annual financial report for the year ended January 31, 2009 (the “2008-09 Report), reveals that the Archdiocese has at least twelve different and separate funds. Although there could be many more funds in existence, the twelve funds listed in the 2008-09 Report are as follows: • General Fund • Clergy Housing* • Order of St. Ignatius* • Antiochian Women North American Board* • Children’s Relief Fund* • Antiochian Village • Heritage and Learning Center • Miami Chancery Fund • Metropolitan PHILIP (Saliba) Endowment Fund (MP Fund) Christian Education Endowment Fund (CE Fund) • • Missions and Evangelism Endowment Fund (M & E Fund) • Youth Ministry Endowment Fund (YM Fund) The 2008-09 Report does provide a beginning cash balance, summary of receipts and expenditures (i.e., an income statement), and ending balance for the four asterisked funds above. Assuming that listed assets are the only assets in these funds (which cannot be verified from the statements), the income statement and balance sheet information is still not sufficient because it is provided in a nontraditional manner. For the remaining eight funds, the 2008-09 Report does not provide a balance sheet. Nor does it provide any information regarding receipts and expenditures with respect to the last four funds on the list. According to the report, the total value of the last four funds on the list exceeds $2.8 million. This is therefore a significant omission. b. Performance and Use of Assets The 2008-09 Report statements do provide a great deal of information, particularly about the identity of donors and donation amounts. Nevertheless, the provided information is simply insufficient to fully inform one concerning the Archdiocese’s financial well-being. Instead of delivering answers, the information causes the discerning reader to question the performance and use of assets in several of these funds. The statements in the 2008-09 Report provide only year-end balances for the following four endowment funds during the past four years:
5
1/31/2009 1/31/2008 1/31/2007 1/31/2006 MP Fund $1,388,621 $1,469,168 $1,444,180 $1,513,973 CE Fund 451,150 503,508 480,234 441,971 M & E Fund 587,655 630,053 532,703 482,512 YM Fund 439,452 492,030 469,367 431,302 TOTALS $2,866,878 $3,094,759 $2,926,484 $2,869,758 There is no information on earnings (or losses) on investments, expenditures, or additions to the funds, either in the limited information provided in the 2008-09 Report for the General Fund or the other individual fund reports. The General Fund shows transfers to the ministries of the Village, Christian Education, Missions and Evangelism, and Youth Ministry, but no mention is made of monies being transferred from the endowments to the General Fundor to any recipientsfor any purpose. c. Shortfalls in Order of St. Ignatius Contributions Interestingly, the most complete reporting of fund information in the entire 2008-09 Report is for the Order of St. Ignatius. The following is extracted from that information: e MeNmobne-rLsifasofADnnueualRAecnetiicits,atYeedar1/31/2008 s Ended 1/31/2009 Commanders 253 $1,000 $ 253,000 Knights and Dames 3211 500 $1,605,500 Total of Anticipated Membership Dues $1,858,500 Actual Membership Dues per 2008-09 $1,193,820 Report Shortfall $664,680 Computing anticipated “Membership Dues for the year ended 1/31/09 based on the listed number of non-life members as of 1/31/08, only 64.2% of the non-life members actually appear to be making their annual payments. Similarly computed percentages for the years ending 1/31/08 and 1/31/07 yield actual payment percentages of 69.5% and 68.1%, respectively. Even with the relatively detailed financial information provided for the Order, the casual financial inquirer is left speculating as to whether up to 1/3 of the members are simply not honoring their pledges or whether up to 1/3 of the anticipated Membership Dues have somehow disappeared. 2. Apparent Omissions a. Archdiocesan “Sacramental Fees Most laity are unaware that the Archdiocese charges parishes a $10 fee for each baptismal, chrismation, and marriage certificate. It also charges a $200 “processing fee to any divorced person seeking to be remarried. If the entire Archdiocese in a single year administered just 1,000 baptisms/chrismations, 300 “first weddings, and 100 remarriages of divorced parishioners, the revenue resulting from these very conservative assumptions would be $33,000. The General Fund Statement of Receipts and Expenditures entirely omits such fees and, although the Statement includes $13,589 of Miscellaneous Receipts, that amount is much too small to account for even a conservative estimate of Archdiocesan “sacramental fees. A properly prepared income statement and balance sheet would include not only each year’s revenue from these sources but would also show the 6
balance that has been built up over the years and/or how such balance has been expended. This is particularly important to discrediting sources claiming first-hand knowledge that such fees are deposited into one of several personal accounts maintained by Metropolitan Philip, rather than inuring to the Archdiocese. b. Honoraria and Gifts MetropolitanPhilip’s honoraria for speeches and other appearances are also absent from the financial statements in the 2008-09 Report. This is especially significant if, as reported, Metropolitan Philip views himself 3 as a “corporate sole. A “corporate soleis a vestige of English law that remains valid in a handful of states (New York is not among them). It was designed to “enable bona fide religious leaders to hold property and conduct business for the benefit of the religious entity. Rev. Rul. 2004-27 . According to this Revenue Ruling, a qualifying “corporation sole may own property and enter into contracts as a natural person, but only for the purposes of the religious entity and not for the individual office holder’s personal benefit. The corporate soledoctrine, if applicable to Metropolitan Philip, would require honoraria received by him to be reported as receipts of the Archdiocese and the accounts into which he deposits these amounts to be reported on the Archdiocesan balance sheet. Itis well known that Metropolitan Philip has given many generous donations to the Archdiocese, most notably making a $1,000,000 gift to the clergy housing allowance during the 2006 Archdiocesan fiscal year. Some people have questioned how, if he is a “corporate sole who owns no property independently of the Archdiocese, he has money to make these gifts. They have suggested that he is simply taking money out of the left pocket of the Archdiocese and putting it into the Archdiocese’s right pocket. Clear financial reporting that includes all of the Archdioceses’ funds and assets would assuredly dispel speculation in this area quickly. c. Special Collections Each year the Archdiocese asks parishes to take a special collection for three different beneficiaries: seminarians, seminaries, and the Patriarchate. Since the Archdiocese reports spending far more on seminarians than the reported collections from the “tray, it is probable that the collection is going to seminarians. However, the only seminary mentioned for the last four years as a recipient of Archdiocesan expenditures is the Balamand in Lebanon. Some people have implied improprieties in how the “tray is spent, given that almost all our seminarians attend one of the three primary Orthodox seminaries in North America and not in Lebanon. And,lastly, but significantly, the General Fund report shows no distribution of funds to the Patriarchate during the last four years, creating prima facie grounds for a donor to claim in court that the Trustees have permitted funds raised for a particular purpose (the Patriarchate) to be consistently diverted to a different purpose (here, the ostensible purpose would be for “investment). Proper financial reporting and independent external audits would help answer questions as to whether the seminarians receiving the proceeds of the “tray collection are in fact Archdiocesan seminarians and whether the “tray monies designated for the Patriarchate are being distributed properly d. Investments The2008-09 Report also does not include line items reflecting receipts and gains/losses from investments for the General Fund or any of the specific funds. Basic accounting courses for non-profits teach that this is one of the most significant items in a financial report, as it demonstrates the effectiveness (or ineffectiveness) of the non-profit’s investment activities. It is unlikely that the Archdiocese has no investable assets, particularly because the Trustees have a fiduciary duty to invest the Archdiocese’s assets and because the 2008-09 Report shows that four funds alone have a combined net worth of $2.8
3 Metropolitan Philip has stated in public discussions over the years that he constitutes a “corporate sole. 7
million. At an extremely conservative 1% rate of return, those assets should be returning at least $28,000 annually. e. Other organizations controlled by the Archdiocese The 2008-09 Report contains no financial information of any kind for Conciliar Media Ministries, Inc. This organization, most commonly known as “Conciliar Press, was born 30 years ago as the publisher of AGAIN magazine. Today, Conciliar Media Ministries, Inc., is a “subsidiary of the Antiochian Orthodox Christian Archdiocese (as regularly stated in AGAIN magazine) which includes a print publishing arm (Conciliar Press) and a media arm (Ancient Faith Radio). Conciliar Press produces two quarterly magazines, dozens of books, as well as icons, cards, and more. Through a partnership with the LXX Project and Thomas Nelson, Conciliar Press has been the primary distributor of the Orthodox Study Bible . Ancient Faith Radio offers two 24 hour internet based Orthodox radio stations and an extensive list of downloadable Orthodox podcasts. Few, if any, would question the positive impact of “Conciliar Press upon the growth of Orthodoxy in North America. However, if it is in fact a “subsidiary of the Archdiocese, the omission of all financial information from the annual report is a serious reporting failure. It may be possible that other subsidiaries are likewise omitted. f. Other endowments and “fundspossibly controlled by the Archdiocese Manylong-term Antiochian faithful will recall the Metropolitan Antony Bashir Endowment Fund. No information for this endowment has appeared in any Archdiocese Annual Report since at least 2002. Perhaps this fund has been exhausted. There are numerous other “funds referenced in prior Annual Reports with recorded receipts, but no other information is provided. For example, the following lists a few funds reporting receipts: • V. Rev. Meletius Koury Scholarship Fund 1/31/02 $1,100 1/31/03 $2,965 1/31/05 $2,000 • Amerose Memorial Fund 1/31/02 $3,000 1/31/03 $3,000 1/31/04 $3,000 1/31/05 $3,000 • Leon Saliba Charitable Remainder Trust 1/31/02 $15,000 1/31/03 $15,000 1/31/04 $15,000 1/31/05 $15,000 • Estate of Katharine Ajar 1/31/04 $1,123,000 (Archdiocese General Purposes) 1/31/04 $427,000 (Endowment, Orphans of Saidnaya) 1/31/04 $300,000 (Auditorium Antiochian Heritage Museum) Francis Maria Fund for Justice and Peace in the Middle East • 1/31/04 $125,000