Cal-Pac Annual Conference has $3.6 million deficit for 2011

REDLANDS, Calif. — Bishop Minerva G. Carcano of the Los Angeles Episcopal Area revealed that the California-Pacific Annual Conference ended 2011 with a deficit of almost $3.6 million in her address to the annual conference on June 13, 2013. In addition Carcano described an accounting system with many layers of problems, including transfers from one account to another without proper authorization, commingling of funds, and inadequate record keeping leading to uncertainty about payments to the Special Sundays and Advance Specials to ministry projects throughout the United Methodist Church.

As part of a financial review still in progress facilitated by staff of the General Council on Finance and Administration, Carcano had requested information on the possibility of financial malfeasance. Carcano reported that at the current time, there were no indications of improprieties. “What was found was an inadequate accounting system, the lack of clear financial policies, and the absence of appropriate checks and balances. For this we are all responsible,” she told the conference.

In additional to the accounting irregularities, Carcano shared that some local congregations of the Cal-Pac Annual Conference had failed to pay their full pension obligations, leaving a deficit of $467,277. This shortfall was made up from reserve funds, and the conference Council on Financial Resources and Board of Pensions would be addressing the issue in the future.

According to Carcano work was still in progress for fixing the problems in the accounting system, and she predicted a “much more positive financial standing in 2012 for the California-Pacific Conference.”

The full text of Bishop Carcano’s Episcopal Address can be found at

John Meunier contributed to this story

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