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	Forensic Audit Faults Diocese in Armstrong Investigation Living Church Foundation October 24, 2007 http://www.livingchurch.org/publishertlc/viewarticle.asp?ID=3894 The Rev. Don Armstrong did not intend to violate or evade tax laws, according to the results of a forensic audit undertaken at the request of a lawyer retained by Fr. Armstrong. The 40-page report, which was presented during a press conference Oct. 23 at the parish where Fr. Armstrong serves as rector, concluded that parish auditors failed to advise the vestry properly about regulatory issues and certain accounting functions of the parish, but in sworn depositions vestry members stated that they were informed about and approved of Fr. Armstrong's compensation and benefit package on an annual basis. A parish trust fund which the Diocese of Colorado accused Fr. Armstrong of improperly using to pay for his children's college education "is whole and no funds have been distributed from the trust since 2000," the report stated. In August, an ecclesiastical court found Fr. Armstrong guilty of financial misconduct, including failing to maintain proper church financial records and diverting church endowment money to himself and his family. Upon the advice of legal counsel, Fr. Armstrong did not cooperate with the diocesan investigation or attend the ecclesiastical trial. He and a majority of the parish left The Episcopal Church and joined the Convocation of Anglicans in North America in March. "While mistakes were made, there is no support for the public accusations of fraud and theft leveled against Fr. Armstrong," said the Rt. Rev. Martyn Minns, missionary bishop of CANA. "I am reassured by these findings and also by the willingness of the church's leadership to acknowledge their own culpability and complete whatever changes necessary to their operating system recommended by this report." For different reasons, both Bishop Minns and the forensic auditor criticized the diocesan investigation which included a forensic audit otherwise known as the Betzer Report and a confidential briefing to the vestry and legal counsel of Grace and St. Stephen's by L. Martin Nussbaum, a lawyer retained by the diocese. The Betzer report "concluded that 'not all of the information needed to complete the investigation had been received nor have they had the opportunity to discuss their findings with Father Armstrong, the wardens, the treasurer and/or the vestry of Grace Church," wrote Robert D. Johnson, a certified public accountant based in Colorado Springs. "Missing within her investigation and report is the explanation surrounding many of the disbursements especially within the area of the discretionary fund as to their business related purposes and relevant facts from information not available during her investigation, such as the personal income tax returns of the Armstrongs." The forensic audit conducted by Mr. Johnson includes a point-by-point rebuttal on five of the six counts alleged by the diocese. The only charge not covered by the report was "violation of temporary inhibition," a canon law issue which Mr. Johnson said he was not qualified to address. A statement released Oct. 23 by the diocese said Bishop Robert O'Neill would pronounce ecclesiastical sentence next week and has reported the results of the diocesan investigation to the appropriate legal authorities. He "expressed his confidence that the criminal justice system will respond appropriately."
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