Diocese of NJ Financial Update

This is a letter from Bishop Sally French to the Diocese concerning the financial status of the dioccese.   Go to the online letter >

Dear Members of the Diocese of New Jersey,
 
I write today with difficult news. Last week, as part of our ongoing work to complete outstanding audits, I was made aware that there are significant discrepancies between the reported and actual values of some of our diocesan trust accounts.
 
While financial reports presented over the past 5+ years indicated that a total of $885,944 of funds received as loan payments were returned to the Diocesan Investment Trust (DIT) accounts, it appears that those funds were never transferred out of the operating budget. Instead, they were spent in support of diocesan operations. This discrepancy affects the value of three of our Loan and Grant Fund Accounts. Please be assured that while these new concerns are related to our Diocesan Investment Trust, there is no indication that any funds belonging to congregations have been impacted.

Further, we have learned that interest payments due to other diocesan accounts were also inappropriately placed in the operating budget and spent to resolve cash flow issues. While we have not completed our review of these accounts, we estimate that the missing interest payments may total as much as $350,000. In addition, as I wrote to you in February, we continue to address the issue of outstanding payments due to the diocese for mortgages and congregational assessments.
 
For a number of years now, our diocesan income has been lower than anticipated, and our expenses have been higher. The funds credited but not paid to the DIT and other diocesan accounts appear to have been used to sustain diocesan operations and support congregations and clergy in times of need.
 
As we work to return to financial health, this news is deeply concerning. The loss of these funds has harmed us as a diocese, today and for years to come. I am grateful to our finance team, our Trustees and our Diocesan Treasurer for their work in uncovering these irregularities, and for the progress made as we seek to complete outstanding audits and reconcile our accounts.
 
Over the past week, I have met with the Trustees of Church Property, the Trustees of the Diocesan Investment Trust, the Standing Committee, Diocesan Council, and the Finance and Budget Committee. I have been in conversation with our Chancellor and Treasurer, and with our senior staff. We are committed to full disclosure and transparency as we seek to resolve these challenges.

​Effective immediately, we are working to limit or decrease diocesan spending where we are able, including reviewing the budget for open positions and assessing current expenditures. Our efforts to increase income continue, but we know this situation will impact the availability of funding for congregations in 2025, because it means that we have much less money than we believed in the funds we use to support congregations. In the coming months, I will work with our Board of Missions, Diocesan Council, and Standing Committee to discern how best to support our churches and honor our commitment to prioritize ministry with our multicultural congregations and historically marginalized communities. In particular, we have several properties no longer in active use, and we will assess development and sales opportunities that might generate funds to restore DIT balances to the levels we previously believed them to have.
 
On Thursday, July 18, we will offer two online meetings.  Please register to attend online: for Clergy (11AM); for Lay Leaders (7pm).  The meetings will not be recorded and are for members and clergy of the Diocese of New Jersey. If you have questions or concerns, I invite you to bring them to those meetings.
 
I ask for your prayers, for the Diocese of New Jersey and our congregations, clergy, and lay leaders, for our finance team, and for all those working to restore appropriate financial practices and strengthen our diocese to equip us for God’s mission. 
 
Faithfully,

The Rt. Rev. Sally French, D.D.
Bishop of New Jersey