Members of Greenwich parish receive summary of financial investigation of former pastor; more than $400,000 in expenditures remain unsupported

GREENWICH, Friday, March 7, 2008, 4:00 p.m. - The Audit Committee of St. Michael the Archangel Parish today released its summary of the findings from the financial procedures review and investigation conducted by two public accounting firms of the management of Parish finances by its former Pastor, Fr. Michael Moynihan.

The Audit Committee summary (below) and a letter from Bishop William E. Lori (below) were mailed to both parishioners and parents of Greenwich Catholic School students.

"We regret that, after more than a year of reviewing financial records and discussing these records with Fr. Moynihan and his counsel, as well as giving Fr. Moynihan every opportunity to substantiate his claims that all the expenditures were for legitimate Parish or School purposes, we can only conclude that Fr. Moynihan has engaged in a pattern of self-dealing, deceit, and submitting falsified and misleading documents to the substantial detriment of our Parish," say the members of the Audit Committee, in their summary sent to parishioners and parents.

Lack of Documentation

According to the Audit Committee's summary, "of the approximately $2,100,000 in expenditures from two off-the-books accounts ... [during the period between January 1, 2003, and July 31, 2006] ..., over $400,000 went to Fr. Moynihan's personal credit cards, to or for the benefit of himself, and to organizations, individuals, and vendors for which no third party written documentation (contracts, invoices, correspondence, and authenticated confirmations) has been provided to corroborate the expenditures as appropriate for the Parish or the School."

The financial procedures review of St. Michael Parish began in July 2006. Shortly after this review had been scheduled, the Diocese of Bridgeport was contacted concerning an FBI inquiry into two off-the-books accounts at St. Michael's. Despite Fr. Moynihan's denials of any off-the-books account, the Diocese immediately identified one such account that had been opened by Fr. Moynihan two weeks after the conclusion of the 2004 Diocesan financial review of the Parish.

While Fr. Moynihan continued to deny the existence of any other off-the-books accounts, Diocesan officials discovered the second off-the-books account in late December 2006. Bishop Lori then demanded and received Fr. Moynihan's resignation (for a detailed timeline of events, click here).

Conclusions Reached

According to its summary to parishioners, the Audit Committee is unanimously of the view that Fr. Moynihan was treated fairly throughout this process and was given more than ample time to justify his expenditures. After reviewing both reports, the Audit Committee was unanimous in concluding that Fr. Moynihan had:

• Made numerous misrepresentations during this process, including repeatedly denying the existence of the off-the-books accounts when asked by Diocesan officials and representatives of the financial review firm;
  
  
• Engaged in inappropriate self-dealing with Parish funds, including making large payments (often in round, thousand dollar amounts) to his personal credit cards, and payments to himself and to cash;
  
  
• Submitted falsified and misleading documents in an effort to support his justification of expenditures, which severely hindered the progress and completion of the investigation. These documents included one bearing the purported signature of a former judge who denies that the signature on the document was his or that he had seen the document before;
  
  
• Grossly mishandled Parish funds donated by Parishioners; and
  
  
• Failed to share the results of the Diocese's February 2004 Financial and Operational Review of the Parish with the former Parish Finance Council, or to implement the financial recommendations as he promised to do following the 2004 Review.

The Reports have been provided to the U.S. Attorney for the District of Connecticut, as was requested when the FBI alerted the Diocese in July 2006 to the off-the-books accounts maintained by Fr. Moynihan.

Financial Progress

Over the past year, while the investigation of Fr. Moynihan has proceeded, the Diocese has made great strides in implementing a new system of enhanced financial procedures and controls in all of its 87 parishes throughout Fairfield County. Implementation of the "Six Key Elements," announced in November 2006, has involved clergy and lay parishioners in a unique collaboration that has generated national attention and praise.

Among the achievements over the past 12 months are:

• All 87 parishes have undergone a financial procedure review by an independent certified public accounting firm or by Diocesan Parish Finance Services, depending on the size of the parish. This will become an annual occurrence.
  
  
• Following the review, a meeting of each Parish Corporation was held, to share results and recommendations with the pastor, Lay Members of the Parish Corporation, Parish Finance Council members, and the Diocesan Director of Parish Finance Services.
  
  
• A new Parish Administration & Finance Manual has been published and distributed to all clergy, Parish Business Managers, Accountants, and Bookkeepers, and the lay members of all 87 Parish Finance Councils. Training sessions have been conducted on implementing the procedures and standards in the new Manual.
  
  
• A new Internet-based Parish Accounting System now links all 87 parishes with the Diocese. The system offers real-time assistance and a new reporting mechanism to generate quarterly and annual financial reports for parishioners.
  
  
• A new, comprehensive Parish Chart of Accounts was implemented to improve parish management reporting. This enhancement assists pastors and their staffs to better analyze their operating results on an ongoing basis.
  
  
• A new Parish Finance Program shows how clergy, religious, employees, volunteers, and parishioners can communicate any concerns they may have about parish finances.

For more information on the "Six Key Elements," click here.

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Thursday, March 6, 2008

Dear Parishioners and School Parents,

The past year has been very difficult for you and for me. We were all deeply saddened and disappointed by events which led to the resignation of Father Moynihan in January 2007 and a recent news story which brought to the fore serious questions of personal propriety. During this past year, every effort was made to enable Father Moynihan to keep his promise to justify numerous undocumented expenditures. Sadly, as the attached report from the Parish Audit Committee indicates, these efforts were met with repeated denials, resistance, and obfuscation. Unfortunately, as you will see, significant funds were grossly mishandled and misused. The same pattern of behavior surfaced when Father Moynihan was confronted with what appeared to be an improper personal relationship: his steadfast denial of any impropriety coupled with his failure to keep his promise to me to terminate any association with the individual. This dual breach of trust has given scandal: it has caused division in the parish and community, threatened the faith of believers, and impeded the mission of the Church. We stand in need of healing.

While trust is sometimes broken in every walk of life, it is especially sad and distressing in the priesthood. After all, we priests are called to represent Christ not only by Word and Sacrament but indeed by the witness of our lives. This includes integrity, a relatively simple lifestyle, and both the reality and appearance of chaste celibacy. Yet because of Christ's love for His People, the Church is much larger and sturdier than the failures of any one individual. God's mercy helps us see the goodness and integrity of the vast majority of priests and to seek reconciliation within the parish community and with those we believe have wronged us. The Lord's love also provides the clearest light in which to view the utterly unremitting efforts for more than a year of the Parish Audit Committee as well as the Diocesan Chancellor and CFO to ensure you would receive a fair and accurate report. I greatly appreciate both their efforts and also their noble motives which were directed to the goal of arriving at the truth.

After all, the decisions which must be reached with regard to Father Moynihan's future cannot be based on rumor or opinion, even if widespread, but on the truth, as nearly as it can be ascertained. As St. Paul taught, our common goal should be "to do the truth in charity" (Ephesians 4:15). On no other basis can justice be done and healing charity be offered. On no other basis can we achieve healing and reconciliation as individuals and as a parish family.

Regarding Father Moynihan's future, as previously indicated, the copies of the reports from the accounting firms are being turned over to the U.S. Attorney's Office and government officials will determine what action, if any, is warranted in response to his actions. I have removed Father Moynihan's authorization to function publicly as a priest. I expect him to honor his promise of restitution to the parish. To that end, I expect that the Parish Audit Committee will play a role. In the meantime, please pray for Father Moynihan and his spiritual well-being. I know that feelings are strong. Whatever our feelings, let us seek reconciliation as the Lord taught us.

I urge you to read and study the report from the Parish Audit Committee of the Parish Finance Council summarizing the findings of the reports from the two public accounting firms. One firm conducted the financial review and the other conducted a forensic investigation. Registered parishioners may review these reports upon request to the members of the Parish Audit Committee. There will also be opportunities for you to ask questions regarding this matter.

Finally, I would note that St. Michael's is served by wonderful priests, beginning with your Pastor, Monsignor J. Peter Cullen. He began his ministry among you in difficult circumstances but he continues to show that he has your best interests at heart. With the dedicated assistance of the parish clergy and an extraordinary team of parish lay leaders, he has accomplished many things. For example, the membership of the Parish Council and the Finance Council was greatly expanded. Monsignor works very closely with those advisory bodies as also with the lay members of the parish corporation and the School Board of Greenwich Catholic School. A few nights ago I met with the combined Parish Finance Council and Parish Council; I was very impressed by their expertise, wisdom, and deep love for St. Michael's Parish and the Church. In addition, Monsignor Cullen also hired an experienced parish business manager; parish finance and management decisions are being handled properly. He has also greatly strengthened the parish RCIA program (Rite of Christian Initiation of Adults) - the means the Church provides for those adults who wish to become Catholics. He revitalized the Men's Association and continues to support the Women's Association, launched a new youth group, continues to give renewed attention to the Religious Education Program, and much more. Building on the team of lay leaders already serving St. Michael's with great effectiveness, Monsignor is seeking to expand lay involvement in the parish and warmly welcomes your help. Together with Monsignor Cullen, you are served by Fathers Connolly, Cutler, and Bejan as well as a full time priest-chaplain at the school and several visiting priests. In fact, St. Michael's may be served by more priests per parishioner than almost any other parish in the United States! Please offer these good priests your support as well as your time and talent as with my full support they seek to bring about healing and renewal in your parish and in the community at large.

With all my heart, I thank you for your patience throughout this long ordeal, for I know it has been an extremely trying time for you and the whole parish/school community. Not a day has passed during this past year without my praying earnestly for you and your parish and school, as well as all those impacted by this difficult situation. I ask you to pray for me, for Monsignor Cullen, and for all priests, including Father Moynihan. May the Lord unite us in His love so that we may focus more clearly and ardently on the mission He has entrusted to His Church.

Faithfully in Christ,

Most Reverend William E. Lori, Bishop of Bridgeport

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Thursday, March 6, 2008

Dear Parishioners:

As members of the Audit Committee of the Finance Council of St. Michael the Archangel Parish (the "Parish" or "St. Michael") we write to inform you that two accounting firms -- one that performed a review of financial procedures at St. Michael Parish including the transactions in the two "off-the-books" accounts maintained by Fr. Michael Moynihan in the name of the Parish (the "Financial Review Firm") and one that performed a forensic investigation regarding certain expenditures from those off-the-books accounts (the "Forensic Investigation Firm") -- have issued their long-awaited reports ("The Reports") concerning their reviews of our Parish's finances for the period January 1, 2003 to July 31, 2006.

Throughout this process we have kept the Parish Finance Council and Parish Pastoral Council updated as to the progress of the review, and we have briefed them on the findings of The Reports.

Before discussing the findings of The Reports, we feel it is important that you know the following:

• Greenwich Catholic School (the "School") accounts were not involved in this review and there was no indication of misuse of School funds. The School was last audited in 2005 and has had an experienced business manager for 20 years.
  
  
• St. Michael now has an experienced business manager and an outside accountant. With Msgr. J. Peter Cullen, the Parish Finance Council has overseen the implementation of the prescribed Diocesan financial controls and procedures, including those addressing the weekly offertory.
  
  
• The fact that Fr. Moynihan has been leasing an apartment in Manhattan for many years was not taken into consideration in performing the financial review or forensic investigation as Fr. Moynihan did not disclose, nor were the Parish Audit Committee or Diocese otherwise aware, of its existence until the review was completed.

The financial review of St. Michael began in July 2006. During the course of the financial review, Fr. Moynihan, personally and through his legal counsel, provided numerous submissions in an attempt to substantiate questionable expenditures and withdrawals of money from the two off-the-books accounts. These off-the-books accounts had been hidden from the former Parish Finance Council and the Diocese.

We regret that, after more than a year of reviewing financial records and discussing these records with Fr. Moynihan and his counsel, as well as giving Fr. Moynihan every opportunity to substantiate his claims that all the expenditures were for legitimate Parish or School purposes, we can only conclude that Fr. Moynihan has engaged in a pattern of self-dealing, deceit, and submitting falsified and misleading documents to the substantial detriment of our Parish.

Of the approximately $2,100,000 in expenditures from the two off-the-books accounts during the above-noted period, over $400,000 went to Fr. Moynihan's personal credit cards, to or for the benefit of himself, and to organizations, individuals and vendors for which no third party written documentation (contracts, invoices, correspondence and authenticated confirmations) has been provided to corroborate the expenditures as appropriate for the Parish or the School ("corroborating documentation").

Of the remaining expenditures approximating $1,700,000 from the two off-the-books accounts, corroborating documentation was received for approximately $900,000. Fr. Moynihan was given the benefit of the doubt for an additional approximately $800,000 in disbursements either because the expenditures were made to the same parties for which corroborating documentation had been received for other expenditures or because they were payments to individuals or vendors known generally by Parish representatives to have provided goods or services to the Parish or School at some point. These amounts included payments for both the Parish and the School and were for construction and related professional services, equipment, liturgical art, catering and other services and compensation for employees. We offer no opinion as to the reasonableness of the amounts paid.

We have concluded that Fr. Moynihan grossly mismanaged Parish funds, and diverted Parishioner contributions into two off-the-books accounts. Further, his claims that funds paid to him from these accounts were to reimburse him for purported out-of-pocket expenses related to the Parish and the School were not corroborated.

The completion of the review was hindered and the issuance of The Reports delayed by: a pervasive lack of adequate documentation, Fr. Moynihan's repeated denials of the existence of a second off-the-books account, his refusal to provide complete access to personal bank records, his misrepresentation that he had only one personal checking account, his submission of false and misleading documentation, and his changing and conflicting explanations for various expenditures.

The disbursements from the off-the-books accounts included payments to Fr. Moynihan's personal credit cards, payments to and for the benefit of himself, and payments to cash. Fr. Moynihan maintained that checks from the off-the-books accounts to his personal credit cards in excess of purported Parish or School-related credit charges, and payments to himself, were in lieu of reimbursing him for alleged Parish and School -- related out-of-pocket expenses he paid for with his own personal funds.

To evaluate the letters and explanations Fr. Moynihan provided for these and certain other expenditures from the off-the-books accounts, the Forensic Investigation Firm was engaged in September 2007. The Forensic Investigation Firm performed forensic procedures in examining the letters provided by Fr. Moynihan that purported to substantiate his claims concerning the payments to his credit cards, himself and cash. The Forensic Investigation Firm was also engaged to consider the changing and conflicting explanations proffered by Fr. Moynihan for other certain disbursements from both off-the-books accounts.

The review of the purported substantiating letters and explanations submitted by Fr. Moynihan identified numerous discrepancies that ranged from false statements to contradictory explanations that lacked necessary corroborating evidence. In lieu of corroborating documentation, Fr. Moynihan instead provided misleading and inaccurate purported substantiating letters. Furthermore, the Forensic Investigation Firm did not find evidence in Fr. Moynihan's personal checking accounts that corroborated his position that excess payments to his personal credit cards were indirect reimbursement for expenditures of his personal funds.

After reviewing The Reports, along with the supporting documentation, we are unanimously of the view that Fr. Moynihan was treated fairly throughout this process and was given more than ample time to justify his expenditures. As this process concludes, we have also unanimously concluded that Fr. Moynihan engaged in a pattern of self-dealing, deceit and submitting falsified and misleading documentation by:

• Making numerous misrepresentations during this process, including repeatedly denying the existence of the off-the-books accounts when asked by Diocesan officials and representatives of the Financial Review Firm;
  
  
• Engaging in inappropriate self-dealing with Parish funds, including making large payments (often in round , thousand dollar amounts) to his personal credit cards, and payments to himself and to cash;
  
  
• Submitting falsified and misleading documents in an effort to support his justification of expenditures (including a document bearing the purported signature of a former judge who denies that the signature on the document was his or that he had seen the document before);
  
  
• Grossly mishandling Parish funds donated by Parishioners; and
  
  
• Failing to share the results of the Diocese's February 2004 Financial and Operational Review of the Parish ("2004 Review") with the former Parish Finance Council or to implement the financial recommendations as he promised to do following the 2004 Review.

Our conclusions are discussed in more detail in our Summary of the Reports attached to our letter.

As The Reports indicate, and this letter reflects, various questions remain unanswered and considerable additional inquiry could be undertaken. Given the substantial undertaking necessary to attempt to answer all questions (along with the cost and uncertainty of being able to secure all necessary documentation) and that:

• neither the accounting firms, the Diocese nor the Parish have subpoena power with which to compel the needed personal and other documentation;
  
  
• Fr. Moynihan is no longer associated with our Parish;
  
  
• the new and expanded Parish Finance Council is actively assisting Parish Msgr. Cullen in overseeing Parish finances and the implementation of the recommendations from the 2004 Review along with the new policies and procedures set forth in the Diocese's revised Parish Administration & Finance Manual;
  
  
• the United States Attorney for the District of Connecticut will be provided copies of The Reports as it requested when the FBI first alerted the Diocese to the off-the-books accounts maintained by Fr. Moynihan and the review first began;

we have asked that The Reports be issued now as opposed to conducting further inquiry. While copies of The Reports will be provided to the United States Attorney, the Government will make its own determination whether to conduct its own investigation into these matters.

We are available, on request, to discuss this process and to review The Reports with any Parishioner registered with the Parish as of the date of this letter.

Very truly yours,

Members of the Audit Committee of St. Michael the Archangel Parish:
Joseph Quinn
Timothy J. Joyce
Thomas S. Shilen, Jr.

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AUDIT COMMITTEE OF ST. MICHAEL'S PARISH FINANCE COUNCIL
SUMMARY OF REPORTS

BACKGROUND

The first report, prepared by the Financial Review Firm, summarizes the account activity and associated findings regarding the two off-the-books accounts in the name of the Parish maintained by Fr. Moynihan. These findings were reviewed with Fr. Moynihan and his counsel in early August 2007. Fr. Moynihan then represented, as he had previously, that all the expenditures (other than two minor ones he had previously reimbursed), of approximately $2,100,000 in total, were appropriate expenditures for the benefit of the Parish or the School. Shortly thereafter, Fr. Moynihan began to provide additional documentation, including letters, purportedly to support his claims regarding over $400,000 in expenditures that lacked corroborating documentation. In addition to the submissions provided since the review began in July 2006, additional submissions were provided by Fr. Moynihan from August 2007 through January 2008.

It became evident that the submissions, coupled with the changing and conflicting explanations provided by Fr. Moynihan, warranted deeper scrutiny. The Forensic Investigation Firm was engaged in September 2007 to perform forensic procedures and to analyze the various explanations and submissions provided by Fr. Moynihan in his effort to support expenditures from the off-the-books accounts that he characterized as legitimate Parish or School expenses.

CONCLUSIONS

The Reports demonstrate that Fr. Moynihan made numerous misrepresentations regarding the off-the-books accounts and related expenditures and engaged in a pattern of deception throughout the review process:

• Shortly after the financial review of St. Michael was scheduled, in July 2006, the FBI called inquiring about the two off-the-books accounts. Fr. Moynihan denied the existence of any off-the-books accounts when questioned by Diocesan officials following that call. After Diocesan officials identified the off-the-books account at Greenwich Bank & Trust ("GB&T"), which was opened two weeks after the 2004 Review, Fr. Moynihan denied to the Financial Review Firm and to Diocesan officials the existence of any other off-the-books accounts and even certified, in writing on August 17, 2006, that there was only one Parish operating account. "
  
  
• In late December 2006, Diocesan officials identified another unrecorded account: this one maintained at Bank of America ("BOA").
  
  
• The BOA account was opened in 1972, before Fr. Moynihan's arrival at the Parish. It appears that Fr. Moynihan had the BOA account removed from the Parish's general ledger in approximately 2002 following Bishop Lori's directive that each parish maintain only one operating account. Significantly, Fr. Moynihan continued to utilize the BOA account on a regular basis until July 2006 and actually conducted transactions therein within days of denying the existence of such an account when questioned by Diocesan officials.
  
  
• Once the accounts were identified by Diocesan officials, Fr. Moynihan provided conflicting and inaccurate explanations for their existence. At one point, Fr. Moynihan claimed that the GB&T account was established for the purpose of receiving restricted funds, but funds deposited into that account do not appear to have been contributed solely for specific purposes or projects. He also indicated that the GB&T account began with a project to enhance the School and Parish property and was a means of funding the equestrian program without inflating the School's costs. However, the initial GB&T disbursements were to Fr. Moynihan's personal credit cards, to himself or for the benefit of himself, for restaurant expenditures, and to various individuals unrelated to the equestrian center.
  
  
• Fr. Moynihan also claimed that he had not disclosed the existence of the GB&T account to prevent the Diocese from using such funds to settle abuse claims. Yet, in fact, the global settlements for abuse occurred in January 2001 and October 2003, well before Fr. Moynihan opened the GB&T account in 2004. And, as well known among the clergy and publicized by the Diocese, funds for abuse settlements came solely from insurance and the sale of Diocesan real estate.

The Reports demonstrate that Fr. Moynihan engaged in inappropriate self-dealing with Parish funds, including making large payments (often in round, thousand dollar amounts) to his personal credit cards, issuing checks to himself and to cash, and co-mingling Parish and personal funds as summarized below:

Over $400,000 in payments from the two off-the-books accounts went to Fr. Moynihan's personal credit cards, to or for the benefit of himself, to cash and to organizations, individuals and vendors for which no corroborating documentation has been provided.

CREDIT CARD PAYMENTS

• Payments of approximately $284,000 were made directly to Fr. Moynihan's personal credit cards: approximately $153,000 from the GB&T and $131,000 from the BOA accounts.
  
  
• When the first off-the-books account (GB&T account) was discovered in July 2006, Fr. Moynihan noted on his personal credit card statements what items he claimed were legitimate Parish or School expenses. These items totaled approximately $116,000. Of the $116,000 in charges, corroborating documentation was provided for approximately $3,000 and $33,000 of charges were to vendors who were known generally to have provided services to the Parish or School from time to time. For the remaining $80,000 in charges, there was neither corroborating documentation provided nor were the charges from known Parish or School vendors.
  
  
• When Fr. Moynihan initially provided his explanations for the alleged Parish and School-related credit card payments from the GB&T account, the second off-the-books-account (BOA account) had not yet been found. After that account was discovered in late December 2006, and the additional $131,000 in payments to his personal credit cards from this account were identified, Fr. Moynihan needed to provide explanations for this $131,000 in personal credit card payments from the BOA account as well as the remaining $37,000 in "excess" payments ($153,000 less $116,000 claimed charges) from his GB&T account, for a total of $168,000 in "excess" credit card payments.
  
  
• In various letter submissions, Fr. Moynihan provided multiple explanations for these excess payments. Most of these explanations were generic in nature and lacked corroborating documentation.
  
  
• Fr. Moynihan also claimed that some of the off-the-books payments to his personal credit cards in excess of what he claimed were Parish or School related credit card charges were indirect reimbursement for payments he claimed he made with personal funds for Parish or School expenses. Specifically, he maintained that $93,000 of these excess payments were indirect reimbursements for various items including stipends for other priests, work on Parish and School properties by four individuals, janitor work for the Parish and School by multiple individuals, furniture for his bedroom at the rectory, and contributions to religious orders.
  
  
• While Fr. Moynihan provided some documentation to demonstrate that certain parties received funds, no corroborating documentation was provided to support his assertion that these amounts had been paid from his personal funds. The Reports show that his personal bank activity does not support his claims that he made any of the approximately $93,000 in payments from his personal funds.
  
  
• Of the $168,000 in excess credit card payments, the Forensic Investigation Firm found none were adequately corroborated or explained by Fr. Moynihan.

PAYMENTS TO CASH, SELF, OTHERS/VENDORS

• Approximately $88,000 in checks was paid to "cash" or to "Fr. Michael Moynihan". Fr. Moynihan provided the same explanation for most of these payments as he had for his credit card payments: that these checks were reimbursement for Parish or School related expenditures that he claimed he had paid with personal funds. Of this amount, approximately $61,000 was not adequately supported or explained by Fr. Moynihan. While Fr. Moynihan submitted some documentation to support that certain parties received funds, again no corroborating documentation was provided to support his claim that these payments were from his personal funds.
  
  
• Another approximately $4,600 in payments were for his personal benefit.
  
  
• Over $102,000 in payments from the off-the-books accounts were to individuals or vendors where the Parish or School benefit or purpose has not been substantiated including to a livery service, to restaurants and for travel expenses. No corroborating documentation was provided for these payments.

Fr. Moynihan submitted misleading explanations and falsified and misleading documentation in an effort to justify expenditures from the off-the-books accounts. A few examples:

• Among the expenditures, approximately $11,000 was paid to a tax-exempt, non-religious organization of which Fr. Moynihan is a member. Initially, Fr. Moynihan explained that these payments were for scholarships.
  
  
• In support of this claim, Fr. Moynihan submitted a document purportedly signed by a former judge who serves on the organization's Scholarship Committee. When interviewed by the Forensic Investigation Firm, the former judge denied that the signature on the document was his or that he had seen the document before. In addition, the former judge told the Forensic Investigation Firm that he had not authorized anyone to sign the document on his behalf.
  
  
• The Forensic Investigation Firm then sought Fr. Moynihan's membership records. Once the Forensic Investigation Firm obtained the records and determined that the majority of these payments were not for scholarships but for Fr. Moynihan's organizational dues and food and beverage charges, Fr. Moynihan acknowledged that his prior explanation was "inaccurate." He then claimed that these charges were related to Parish and School fundraising activities, for Pre-Cana instruction dinners, and for meals at the organization's Scholarship Committee meetings.
  
  
• Another example: To justify a $1,000 payment to himself that he represented was reimbursement for a scholarship payment he had made from personal funds, Fr. Moynihan submitted a letter from a school parent confirming that her child had received a $1,000 scholarship for the School. Upon further review, the Forensic Investigation Firm learned that the child had received a $1,000 scholarship but the source of those funds was the Home School Association, not Fr. Moynihan's personal funds.
  
  
• Another example: Fr. Moynihan claimed that $6,000 in "excess payments to his personal credit cards" was indirect reimbursement for personal funds he donated to a religious order. That order confirmed that while contributions had been received from the Parish years ago, no contributions were received from Fr. Moynihan or the Parish in the years in question.
  
  
• Another example: One of the many payments to his personal credit cards, this one for $5,000, from the BOA account, was explained as a "rectory/Church" expense by Fr. Moynihan. This was coincident however with a $5,000 charge on that credit card for a large personal item.

SOURCE OF PERSONAL FUNDS

• Despite his representation that he had only one personal checking account, in fact Fr. Moynihan maintained at least two. Complete records, including deposit information, were not provided for the second personal checking account so the source of funds into that account cannot be ascertained. Records of disbursements from that account are incomplete and the copies are illegible in many cases and were not provided directly from the bank.
  
  
• The Forensic Investigation Firm did not identify sufficient evidence to support Fr. Moynihan's claims that he had sufficient personal funds from his salary, stipends and gifts to make out-of-pocket payments on behalf of the Parish or School.
  
  
• Fr. Moynihan claimed that one source of his personal funds was gifts from a trust for an elderly sick aunt and uncle (recently deceased) for which he served as trustee. In an attempt to corroborate Fr. Moynihan's claims regarding gifts from the family trust and family members associated with the trust, the Forensic Investigation Firm interviewed one beneficiary of the trust (representing himself and three other beneficiaries) and his counsel. In these interviews, according to the Forensic Investigation Firm, the beneficiary and his counsel challenged Fr. Moynihan's administration of the trust and the propriety of his actions as trustee including his use of $58,000 in trust funds to purchase a boat, and other payments from the trust for Fr. Moynihan's benefit and to organizations associated with Fr. Moynihan (including St. Michael's). According to the beneficiary and his counsel, Fr. Moynihan refused to provide the beneficiaries with an accounting of the trust assets.
  
  
• Fr. Moynihan acknowledged he had access throughout his tenure at the Parish to the weekly cash offertory until it was counted on Monday mornings. According to the Forensic Investigation Firm, certain large deposits were made in even dollar amounts into Fr. Moynihan's personal bank accounts on Mondays and Tuesdays. (Subsequent to Fr. Moynihan's resignation as Pastor, the Parish has instituted tighter controls over offertory in compliance with Diocesan procedures.)

The Reports cite numerous instances that demonstrate Fr. Moynihan's gross mishandling of Parish funds, including:

• As a result of inadequate documentation associated with contributions from donors deposited into the off-the-books accounts, it cannot be confirmed whether there were any restrictions associated with such funds and whether such contributions were expended for their intended purposes.
  
  
• Significant sums were disbursed to a college from Parish funds. While Fr. Moynihan claimed that he received corresponding contributions specifically intended for these disbursements, he has not provided sufficient corroborating documentation to support his claims. Accordingly, we are unable to confirm whether Fr. Moynihan raised all such funds or instead used Parish funds for such purposes.

Fr. Moynihan violated established Diocesan policy by: maintaining off-the-books accounts, failing to maintain adequate records, failing to share the results of the 2004 Review with the former Parish Finance Council, and failing to implement the recommendations from the 2004 Review which included:

• Hiring a competent Parish accountant.
  
  
• All payments should be supported by invoices.
  
  
• Checks should never be payable to cash.
  
  
• Budgets should be prepared and entered into the accounting system.
  
  
• Annual financial reports should be made to the Parish on a timely basis.
  
  
• Proper employee documentation and filings should be maintained in personnel files.

Finally, we confirm that, beginning in March, 2007, a reconstituted Parish Finance Council has been assisting Msgr. Cullen in implementing the recommendations from the 2004 Report as well as the new policies and procedures set forth in the Diocese's revised Parish Administration & Finance Manual.

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