T HE A RCHDIOCESE

OF

A GANA

CHANCERY OFFICE
196B Cuesta San Ramon Hagta, Guam 96910-4334 Tel: (671) 472-6116, (671) 562-0000 Fax: (671) 477-3519

July 31, 2014

Statement by Archbishop Apuron on Finances

With the advice of the Finance Council and Deloitte and Touche for transparency and
accountability, I wish to communicate the economic problems evidenced by the initial review of
Archdiocesan entities. This step has not been taken lightly, as we have been trying to get
information for some years from the entities involved but with no significant results.
In particular, the report of Deloitte and Touche noted the following significant accounting
deficiencies in The Catholic Cemeteries of Guam, Inc.:
1.
2.

3.
4.
5.

that The Catholic Cemeteries of Guam, Inc. had incorrectly included in its assets,
land which was not in its own name; thus, overstating its assets, and using this
property to secure a loan;
that construction costs were duplicated, incorrectly overstating its assets by $3.8
million, and that the construction contracts needed to verify the exact costs were
missing. More than seven months after the report, construction documents
showing the exact costs have yet to be produced.
that the accounting is not in conformance with accounting principles generally
accepted in the United States of America because there is no way to distinguish
between what has been paid and what is due, and between principal and interest.
that depreciation was never recorded and we are dealing with an estimate which
is unacceptable in accounting as it could involve a violation of fiduciary
responsibility.
that The Catholic Cemeteries of Guam, Inc., did not allocate money for long term
care liability, and this is not correct accounting. After almost one year this
matter has not yet been corrected despite recommendation, causing an increase of
liability of at least $800,000.

Deloitte and Touche concluded that since we dont know the correct amount of the long term
care liability, we dont know the correct depreciation, we dont know the correct allowance for
doubtful accounts, we dont know how much revenue in a specific year has been overstated an
audit is at the moment impossible.
Deloitte and Touche did not issue a report on the Cathedral but the Archdiocesan Finance
Officer documented a series of accounting improprieties that can be produced as well.

(Page 2 Archbishop Statement)

This report is released, under the advice of Deloitte and Touche and the Archdiocesan Finance
Council, to begin a process of reorganization and reordering. I am being proactive in moving the
Archdiocese forward to ensure proper financial accountability and integrity. We are committed to
fulfill our obligations and the intentions of our contributors.
Given the gravity of the situation, I was compelled to take urgent measures changing
administration in order to end this state of affairs which is detrimental to the Archdiocese
canonically and financially in the entities involved. This decision, contrary to speculations, deals
only with the matter of good administration and my canonical responsibility with the
management of archdiocesan temporal goods. As I have previously stated, we will release
shortly the full financial reports and financial reviews for all diocesan entities.
As in the past, when we faced grave matters, I addressed them through a pastoral letter; this
happened when we faced the danger of casinos being established on the island, or when I forbade
the use of the Cathedral-Basilica and other Catholic churches for civil marriages, or when I
addressed the issue of abortion and the defense of the family. I will soon publish a pastoral letter
preparing us for the fiftieth anniversary for our Archdiocese. We Guamanians are renowned for
our hospitality and dialogue. Let us begin all together the process of renewal, reconciliation,
reordering and moving forward.
Servus Tuus,
/s/Most Rev. Anthony S. Apuron, OFM Cap., D.D.
Archbishop of Agana
Attachment: Deloitte & Touche Catholic Cemeteries Report