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  Parish Leader Rebuts Accusations

CBS 4
April 1, 2007

http://cbs4denver.com/topstories/local_story_091205440.html

(AP) Colorado Springs, Colo. ‐ The rector of a conservative breakaway Episcopal parish told parishioners he is confident he will be cleared of accusations of financial misconduct.

All questioned financial transactions have "sound explanations and have been handled appropriately," the Rev. Donald Armstrong said in the letter to parishioners Friday.

The Colorado Diocese suspended Armstrong in January and barred him from the property of Grace Church and St. Stephen's Parish in Colorado Springs, the largest Episcopal parish in the state.

Grace and St. Stephen's Episcopal Church
Photo by The CBS

On Monday, parish leaders voted to leave the denomination and join a Nigerian-linked missionary diocese, leading to Armstrong's return. Parish leaders said they were upset over the liberal direction of the national church, including its position on homosexuality.

Armstrong said in his letter that some of the diocese's questions relate to his taxes. He said he has submitted his taxes to the IRS for evaluation, and the church's financial records were being subjected to an independent forensic audit.

He wrote that an audit by the bishop found no money missing.

Armstrong said in his letter that some of the diocese's questions relate to his taxes.

No decision has been made about pursuing criminal charges, diocesan spokeswoman Beckett Stokes said Friday.

Bishop Robert O'Neill had no comment on Armstrong's letter, Stokes said in an e-mail. "We will continue to pursue the matter through the appropriate canonical process," Stokes said.

Regarding scholarships granted to his children, Armstrong said it was a common practice in the church, with arrangements handled by the church financial wardens.

The general use of church's discretionary fund, which in the past was available for such things as treating people to coffee and dinner, stopped "some time ago," and the fund is now used only for the poor, Armstrong wrote.

Armstrong wrote that the parish would stop its practice of granting pay advances to staff after learning that Colorado laws do not allow such advances or loans.

The letter said a full report would be presented to the parish April 14.

Not all members of Grace and St. Stephen's Parish have joined the breakaway. Some made plans to begin meeting at a nearby college chapel, starting this weekend.

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