wfn.org | [PCUSANEWS] PC(USA) controller discharged

[PCUSA NEWS <PCUSA.NEWS@ECUNET.ORG>]

Note #8470 from PCUSA NEWS to PRESBYNEWS:


04390
September 1, 2004

PC(USA) controller discharged

Interference with annual audit bids costs Tawfik his job

by Jerry L. Van Marter

LOUISVILLE - Nagy Tawfik, the long-time corporate controller for the Presbyterian Church (USA) has been fired for "errors in judgment" surrounding the open bidding process for the external auditing of the church's financial books.

        "There is no evidence that PC(USA) funds have been misused," said General Assembly Council executive director John Detterick Wednesday in announcing Tawfik's termination, which is effective immediately.

         "In providing data to several accounting firms bidding to perform the annual external audit, Tawfik gave inflated estimates of the hours needed to do the work," Detterick explained. "These errors in judgment, which could have influenced the selection of the firm that would conduct the audit, jeopardized a fair and complete bidding process, and therefore could not be tolerated."

        The integrity of financial audits was at stake, said chief financial officer Joey Bailey.
"Independent audits are the hallmarks of sound financial disclosure," he said. "We must ensure the process of selecting an external auditor is above question."

        Detterick said the GAC's Audit Committee was briefed on the matter earlier this week. He said that he "has no reason to suspect further wrongdoing," but that it is common practice to conduct a special review when any senior financial officer leaves. He said both the church and Tawfik deserve "a clear analysis of the situation."

        Audit Committee chair Karen Dimon supported Tawfik's firing. "The church's audit process must be above reproach not only to meet our fiduciary responsibility to the General Assembly and donors, but also as a demonstration of our practice of stewardship for the resources entrusted to the church. Any interference with a full and completely fair process of accountability puts at risk the church's ability to be transparent with donors."

        Despite the firing, Detterick praised Tawfik for his more than 20 years of service to the PC(USA). "Nagy's concise explanations of intricate financial matters have helped those involved in the church's budgetary process understand more clearly our complex system of funds and funding streams.

        "Our prayers are with Nagy and his family at this time," Detterick said.

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