Guam archdiocese financial review highlights accounting holes

Friday, August 8th, 2014

A financial review of Catholic entities in Agana Archdiocese in Guam ordered by the Vatican has shown some significant accounting deficiencies.

Archbishop Anthony Apuron of Agana released statements last week, after the review by Deloitte and Touche was made public, to “begin a process of reorganisation and reordering”.

The review shows that one archdiocesan entity, Catholic Cemeteries, incorrectly stated assets, including land it didn’t own, and then used those overstated assets to secure a loan.

It also overstated the value of other assets by millions of dollars, which couldn’t be verified because of missing documents.

A separate review of the Cathedral-Basilica by Agana’s financial officer showed “a series of accounting improprieties” as well.

A few days before Archbishop Apuron’s statements, cathedral rector Msgr James Benavente was removed from his post, with no explanation given.

Msgr Benavente had also previously overseen Catholic Cemeteries.

Archbishop Apuron stated: “I was compelled to take urgent measures changing administration in order to end this state of affairs”.

This change was “necessary and urgent to re-establish proper accounting practices and to complete the financial review, financial report and the audit”.

An audit had not been possible because of the accounting deficiencies.

Msgr Benavente responded by saying some of the archbishop’s statements were “absolutely wrong”.

A group of Guam financial experts also held a press conference this morning, saying the archbishop’s statements weren’t factual.

Land allegedly used by Catholic Cemetries that was not under its name, was instead under the Archdiocese of Agana, as collateral for a loan, Msgr Benavente wrote.

Some matters had been resolved by the time the Deloitte and Touche report was made and others had been corrected and notified or were going to be, he added.

Archbishop Apuron said the Deloitte and Touche review showed the archdiocese’s debt had reduced by 20 per cent in recent years, and that its overall financial position was “healthy”.

“I am being proactive in moving the archdiocese forward to ensure proper financial accountability and integrity,” the archbishop said.

“We are committed to fulfil our obligations and the intentions of our contributors.”

Sources