Church Shaken By Evidence of Alleged Misuse of Funds by Former National Treasurer

Episcopal News Service. February 24, 1995 [95030]

(ENS) The Episcopal Church -- still reeling from the suicide of the bishop of Massachusetts and facing a new campaign by conservative bishops against those who have ordained noncelibate homosexuals -- was further shaken by revelations that the church's former treasurer may have engaged in extensive misuse of funds.

In a sobering presentation to a retreat of the Executive Council in Providence, Rhode Island, February 13, Presiding Bishop Edmond L. Browning and his chancellor or legal advisor, David Beers, said that they had evidence that appears to "indicate misuse of church funds" by Ellen Cooke, who resigned January 6 as treasurer.

Browning said that, when several irregularities were brought to his attention, he "immediately retained legal counsel to assist me in an investigation into these and other possible financial improprieties." That initial investigation "disclosed sufficient grounds for concern" and led to a meeting with Cooke and her husband Nicholas in Virginia where he had recently assumed the call to St. John's Church in McLean.

Evidence of the potential financial impropriety was discovered only after her resignation, Browning said, while she was serving as a consultant "to assist in the winding up of the financial affairs of the last triennium."

A sacred charge

In his address from the chair (See Newsfeatures for full text) to the opening session of the council meeting on February 15, Browning added, "Though our picture is fragmentary, and an investigation is only beginning, we already have something very painful to deal with -- funds appear to have been misused." He asserted that "we have a sacred charge to act on behalf of the church, to protect our assets and our integrity as an institution. We will do so."

Browning pledged to keep the church informed as the investigation evolves, within the limits imposed by the legal aspects of the situation. The auditing firm of Coopers and Lybrand has been retained and its work could take several weeks, he said. "I regret that I am not able to say anything more about this disturbing development at this time," he said in a statement (Text in Newsfeatures section) distributed to the council and faxed to other church leaders. "I ask for your patience, understanding and prayers at this most difficult time in the life of the church."

Small groups express pain

Meeting in small groups during their two-day retreat, council members expressed shock and anger -- but also a deep concern and determination that the situation not affect the wider mission of the church. "We are trying to communicate to our people that those of us who are fiscally responsible are taking the necessary steps to get to the bottom" of the alleged financial misuse, said Bishop Don Wimberly of Lexington, Kentucky, who chairs the council's administration and finance committee. "We don't want this to damage the mission of the church," he said, adding that the committee would take a close look to make sure that sufficient safeguards are in place.

Vincent Currie, financial officer for the Diocese of Central Gulf Coast who chairs the church's Joint Standing Committee on Program, Budget and Finance, echoed the comments of many council members. He admitted that he was "stunned" by the allegations. He was on the council when Cooke was hired in 1986 and has been "one of her closest associates" over the years, he said.

In the wake of the allegations, Currie emphasized that it was important to remind church members that officers of the church, at the national and diocesan level, are bonded and instances of financial misuse are rare. "As tragic as this occurrence is, the church must not let it damage the trust that members have in the church at all levels," he added. He hoped that the church would see this as an opportunity for people to express compassion for the Cooke family but be "even more fervent in helping church members learn from this experience."

Dioceses responded

Several dioceses scrambled to reassure their church members that their financial houses were in order. Bishop Richard Grein of New York, for example, wrote to his clergy to reinforce the presiding bishop's "determination not to let this incident adversely affect the wider mission of the church. Human frailty does not subtract from the necessity of mission," he said.

"Perhaps this is a good time to be grateful for the checks and balances within our own financial system which work to protect our diocese from problems of this sort," Grein said in his February 15 letter. He urged his clergy to support the national church "during this difficult time."

Bishop Peter James Lee of Virginia met with lay leaders of St. John's Church and issued a statement that there was "no evidence of any irregularities" during the short period that Cooke was on the diocesan staff. "This situation is being met with compassion and determination to proceed with the ministry of that congregation," he said.

Cooke was elected treasurer while serving as assistant treasurer in the Diocese of Virginia and had previously served in a similar capacity for the Diocese of Massachusetts. A graduate of Georgetown University, she also served as business manager of the National Cathedral School and as a financial consultant with schools and religious organizations.