406 – Audit Review Guidelines (AUP)

Last Updated: 9/2018

Archdiocese of Saint Paul and Minneapolis

Parish Financial Audit, Review and Agreed Upon Procedures Guidelines

Audit & Review Guidelines

In Clergy Bulletin Volume XIX, Number 1 of September 2004, Archbishop Roach established certain guidelines for parish finance councils. These guidelines include requirements for audits and reviews of a parish’s financial condition. These guidelines are in place in order to give the pastor and the Finance Council some assurances that the finances of the parish are being handled appropriately. The guidelines are as follows:

I. There will be a financial audit or review of a parish upon the change of a pastor, or every five years.

II. All audits and reviews are to include a management letter from the audit firm, which will detail suggested improvements to or deficiencies in the parish’s operations and system of internal controls.

III. A copy of all audits or reviews and management letters are to be forwarded to the Archdiocesan Finance Office at the Chancery, once they are published.

Agreed Upon Procedures Program

A new process of financial review was created in 2008 in response to the need for greater review of administrative and financial operational controls as outlined by the Archdiocese, along with increasing costs of CPA audits. The Agreed Upon Procedures (AUP) is considered a minimum requirement for the “every five years” or “change of pastor” rules.

You may still need to have an independent audit or review, if required by a financial institution or granting agency. In addition, the pastor, at his discretion, may require an audit or review to be completed.

In some cases, a parish may have met the “every five years” requirement and within that timeframe a “change of pastor” occurs.  If this occurs, the pastor may require an audit, review or AUP for the period prior to the change in pastor.  If the pastor does not require one of the above to be performed, and you recently had an audit, review or AUP performed, you must receive an exemption from the “change of pastor” rule from the CFO of the Archdiocese in writing.

If you choose or are required to have an audit or review performed, you may select a firm other than the three listed below, however, you should contact several firms that are in your geographic area.  We would also caution you to be careful about a conflict of interest that may occur, such as CPAs who go to your church or who are members of a committee within your parish. We suggest that you ask for bids from and interview two or three selected firms, with the understanding that they are independent and have experience with fund accounting. We suggest that parish staff and members of the Finance Council interview the firms.

There are three CPA firms supporting the AUP program: Boulay; Boyum & Barenscheer; and CliftonLarsonAllen. These three firms are listed below. If you choose a firm other than one of these three to perform an audit or review, you will be required to have one of these three firms perform the AUP.


Audit Firms

Boulay PLLP

Attn: Jadin C. Bragg, CPA

7500 Flying Cloud Drive, Suite 800

Minneapolis, MN 55344

(952) 841-3012

jbragg@boulaygroup.com

Boyum Barenscheer PLLP

Attn: Matt Bistodeau, CPA

3050 Metro Drive, Suite 200

Minneapolis, MN 55425-1547

(952) 858-5598

mbistodeau@myboyum.com

CliftonLarsonAllen LLP

Attn:  Larry Adams, CPA

220 South 6th Street, Suite 300

Minneapolis, MN 55402-1436

(612) 397-3052

larry.adams@claconnect.com