DWTX from Anaheim – A resolution that asked for more transparency about money being spent by The Episcopal Church (TEC) on litigation was referred Wednesday afternoon to the Standing Commission on Stewardship and Development. The resolution, C067, was submitted to the 76th General Convention by the Diocese of West Texas after being passed by the diocese’s annual council in February 2009.
Testimony on the resolution was heard by the General Convention Stewardship and Development Committee, which does not have the same membership as the standing commission of the same name, at an open hearing Wednesday afternoon. Speaking in favor of the resolution, Diocese of West Texas Alternate Deputy John Warren said the resolution sought specific information regarding how much money has been spent on litigation by TEC, and from what church accounts or budget items, since General Convention 2006. In its explanation, the resolution stated that beginning in 2007 requests have been made by various parties to the Executive Council, which is responsible for the governance of TEC between general conventions, for financial disclosure of the source of funds and amounts expended, but no response has been made.
The resolution sought to direct the Executive Council and the office of the Presiding Bishop to disclose the information.
In discussion, several members of the Stewardship and Development Committee, to which the resolution had been assigned, voiced opposition, saying it is not wise, in the midst of litigation, to divulge what assets one has. Bishop James Mathes of San Diego said it was a “well intentioned resolution” with possible unintentional consequences.
Other committee members were in favor of disclosing the information about now-settled lawsuits only. “When there is a need for healing, there is a need for disclosure,” said committee member Jane Cosby of Pennsylvania, adding, “that kind of information sharing builds trust.” Bishop Mark Lawrence of South Carolina added that his diocese has been involved in litigation and has reported to diocesan members consistently how much money was being spent “because they are the ones funding it.”
Bishop Gary Lillibridge, who is a member of the committee, said the resolution seeks both sides of disclosure in its last item, which requests an estimate of the property value retained by TEC because of litigation. “We might find that we are spending $5 million in litigation to retain $50 million in property,” he said.
The motion to refer the resolution was passed with six of the 28 committee members opposed. The Standing Commission on Stewardship and Development must now report its findings to the 77th General Convention in 2012.
Tags: budget, legislative committee, Resolutions
Good arguments by both sides, however, those who are concerned about divulging what assets one has are missing a key point. I believe we are asking TEC to divulge an “expense” rather than an “asset” as well as the source of these expenditures. In the case of litigation expenses, those are funds that are accounted for in the Operating Statement rather than the Balance Sheet. Those expenses are no different than office supplies from an accounting standpoint. As Bishop Lillibridge states, if we are spending a small amount to protect a large asset, then that is great news. If the reverse is the case, one would have to wonder if these matters are being handled appropriately.