Metropolitan Council concludes two-day meeting

His Beatitude, Metropolitan Herman, delivers his opening address to members of the Metropolitan Council on June 13, 2006 in the Saint Sergius of Radonezh Chapel at the Chancery in Syosset, NY.

SYOSSET, NY [OCA Communications] — The Metropolitan Council of The Orthodox Church in America, under the chairmanship of the Primate, His Beatitude, Metropolitan Herman, met at Saint Sergius Chapel at the Chancery here Tuesday and Wednesday, June 13-14, 2006.

After an opening Service of Intercession, Metropolitan Herman delivered his address.

He particularly noted that the investigation being conducted by the law firm of Proskauer Rose is still very active and ongoing. For a number of reasons, he added, receiving an interim report at this time would not be in the best interest of the Church. He affirmed that the services of Proskauer Rose have been retained on behalf of the entire Orthodox Church in America.

The Very Rev. Paul Kucynda, acting treasurer, presented and distributed his report and distributed an updated financial report prepared by the Very Rev. Stavros Strikis, comptroller.

Father Kucynda then introduced Mr. William Arnold, CPA, of Lambrides, Lamos, and Moulthrop, the accounting firm engaged by the Church to undertake audits for the fiscal years 2004-05. Mr. Arnold noted that Mr. Steve Lamos, who has conducted the audit, was unable to be present. Mr. Arnold read Mr.
Lamos’ prepared notes.

Mr. Arnold reported that the accounting firm had completed its review of all annual and special appeals for the years between 2001 and 2005 as requested by the Holy Synod. The fiscal 2004 audit is nearing completion. Because all information had to be checked against the compilation reports for fiscal years 1999, 2000, 2001, 2002, and 2003 in order to establish accurate opening balances for 2004, the process took more time than expected.

Following Mr. Arnold’s report, Father Strikis responded to a number of questions.

It was further noted that according to the Financial Guidelines established last fall, the comptroller is directly responsible to the treasurer, who in turn is responsible to the Metropolitan. Prior to this, the comptroller was directly responsible to the Chancellor.

Council members reviewed the minutes of the May 18, 2006, teleconference meeting. It was noted that the Statute of The Orthodox Church in America does not specifically provide for absentee ballots in the Metropolitan Council’s voting process. Thus, the vote taken during the teleconference meeting might be considered by the New York State Attorney General’s Office to be invalid. That is the civil authority whose requirements must be satisfied. Upon the advice of the law firm of Sahn Ward & Baker, PLLC, who represent The Orthodox Church in America to the Honesdale National Bank in the matter of the loan, Father Kucynda reported that the vote should be recast. The re-vote would take place during the Wednesday-morning session.

The Very Rev. Eugene Vansuch, executive director of the Fellowship of Orthodox Stewards, offered a detailed report to council members. He distributed a packet of promotional materials, which includes the current issue of The Steward and a recently developed informational brochure. He also provided an update concerning his visits to dioceses and parishes.

The Very Rev. John Dresko, director of development, reported that he is working diligently to develop relationships that may provide major gifts in the future. He suggested that a “Bill of Donor Rights” be established as a part of the “Best Practices” document. He stressed the need for and volunteered to compose a “Bill of Donor Rights.” He also affirmed the need for specific software to be added to the Church’s computer system that would be applicable to his work.

On Tuesday evening, the Very Rev. Vladimir Berzonsky, rector of Holy Trinity Church, Parma, OH, and Metropolitan Council clergy representative of the Diocese of the Midwest, presented a talk titled “Learning from Our Current Situation.” [The text of his presentation will be posted on the OCA web site at ]http://www.oca.org.]

The second day of the Metropolitan Council meeting opened with a review by Father Kucynda of the process by which the Metropolitan Council approved the acquisition of the $1.7 million loan from the Honesdale National Bank. The bank’s legal representative requested that the vote be recast, as noted during Tuesday’s deliberations. A vote was taken. The loan was approved, with 13 council members voting yes, 3 voting no, and 2 members abstaining.

A discussion on various aspects of the loan, including methods and means for repayment, ensued. It was stated that there is no penalty for pre-payment. It may be to the advantage of The Orthodox Church in America to sell the Martin Drive property and use the proceeds to pay down the principal of the loan. No action was taken at this time.

Father Kucynda went on to inform council members that he had received a legal opinion concerning personal liability of Metropolitan Council members with regard to financial mismanagement if such is found during the investigation and audits. Though personal liability of Metropolitan Council members might be a legitimate issue, generally it is considered as such when it is found that a member acted in a deliberately inappropriate way in regard to his or her duties. It was recommended that at this time, it would be preferable if Metropolitan Council members not attempt to answer any specific questions about the investigation until it is completed. This is also true concerning the reviews or audits performed by the accounting firm of Lambrides, Lamos, and Moulthrop. The attorneys added, however, that Metropolitan Council members can affirm that they have been made privy to information concerning the release of the former chancellor, as well as the oral interim audit reports, without sharing specific details at this time.

Matushka Mary Buletza Breton, CPA, distributed materials for review and presented her report titled “Best Practices Document and Amendments.”

Matushka Mary noted that she had been asked to review the draft of “Best Practices” that had been discussed by the members of the Holy Synod of Bishops and the Metropolitan Council, as well as other groups within the Church. She noted that “Best Practices” is simply the codification of common sense and that good business practices should exist within the Church as the best way to steward God’s gifts.

Matushka Mary offered a review of the “Best Practice Principles for Nonprofit Financial Accountability,” prepared by Protodeacon Danilchick. She emphasized that this is a set of working documents, subject to revision, approval, and implementation by the Metropolitan Council. At this time, the principles contained in the working documents will be implemented immediately. At their fall 2006 meeting, members of the Metropolitan Council will review the implementation process, make revisions, and adopt a final document as the administrative operating policy of the Orthodox Church in America. She emphasized that this does not supplant hierarchical authority, but rather establishes a baseline for operations.

Highlights of “Best Practices” principles include: (1) assurance of clear and decisive financial accountability; (2) adoption of ethics and conflict-of-interest policies; (3) implementation of appropriate financial controls; (4) the conducting of regular independent financial audits; (5) assurance of the transparency of financial data and performance; and (6) the maintenance of knowledge of emerging nonprofit issues. Also reviewed was the “Ethics Policy” outline. This policy would be agreed upon and signed by all employees and agents of the Church.

It was emphasized that reviews of “Best Practices” should take place on a regular basis, and that revisions or amendments should be made when necessary.

In reviewing and discussing the summary of the “Conflict-of-Interest Policy,” Matushka Mary noted that those who might have a conflict of interest, defined as “interested persons,” are understood to be those persons, family members, or affiliated organizations who might have existing or potential financial or other interests that impair or might reasonably appear to impair that person’s independent and unbiased judgment in the discharging of his/her responsibilities to The Orthodox Church in America.

Matushka Mary also outlined the “Whistleblower Policy” and expressed the thought that the Church even needs to go beyond what such a policy provides for. “Audit Committee Principles and Standards” was also reviewed and discussed, as was the “Document Retention Policy.”

A motion was passed by council members “to adopt the presented draft practices/policy documents as ‘working documents’ and that they be implemented immediately. Further, the implementation of the draft document will be reviewed by the Metropolitan Council at its 2006 fall meeting, which will also examine, revise, and adopt the final documents.”

Dr. Richard West, lay representative from the Diocese of the Midwest, presented a statement and introduced a motion that reads: “The Midwest Diocesan Council and Council of Deans, having unanimously directed their representatives to ask the Metropolitan Council to urge the Holy Synod to reconsider its decision to extend the time between All-American Councils from three to five years and return the periodicity to three years, [asks that] the Metropolitan Council accept this recommendation for presentation to the Holy Synod.” The motion passed.

Matushka Mary Buletza Breton spoke concerning the approved loan, the question of repayment, and the concerns that were raised by members of the Metropolitan Council. She noted that what is important is to create a strategy to repay the loan, since the Metropolitan Council is the responsible body in this matter. She expressed the thought that if we are going to be committed as members of the Church, and if we want the Church to move forward, we need to work together and to move on. She offered her services to assist with the strategy process; Metropolitan Herman gladly accepted her offer.

In response to a question as to the status of ownership of Saint Catherine the Great Martyr Church, Moscow, Russia, Metropolitan Herman responded that the Russian Orthodox Church owns the property and loans it to the Orthodox Church in America for use as the OCA’s representation church to the Moscow Patriarchate.

In answer to a question concerning the appointment of a new chancellor, Metropolitan Herman replied that the matter is under review.

With regard to the Church lands in Alaska, Father Isidore, clergy representative from the Diocese of Alaska, reported that three properties have been sold or transferred since His Grace, Bishop Nikolai, became presiding hierarch of the diocese. Two sales involved properties that otherwise could have been taken through adverse possession. The third transaction involved an acre-for-acre land exchange, so that a water system could be installed in one of the villages. Father Isidore also referred to the land sale in Kodiak that was entered into during the administration of the late Bishop Innocent, but completed after the arrival of Bishop Nikolai.

Father Isidore further reported that Grace Oakley was hired to review the Alaska lands and was entrusted with developing an extensive review of previous inventories and providing a definitive inventory of lands in the diocese’s possession. She has assured the diocese that all titles are now secure. He noted that the Alaska Lands Account commission was formed during the episcopacy of His Eminence, Archbishop Gregory, now retired. At that time, it was decided that the funds would be divided three ways: between the Diocese of Alaska, Saint Herman’s Seminary, and The Orthodox Church in America. Bishop Nikolai changed this form of administration of Church lands in the Diocese of Alaska. Instead of this form of support for the Central Church Administration, the diocese now tithes to The Orthodox Church in America, providing more than would be available through the income from the lands. Father Isidore further noted that the total amount of land is less than 1,000 acres, divided principally between two villages.

Metropolitan Herman noted that this had previously been a source of income for The Orthodox Church in America and that Bishop Nikolai changed this provision on his own authority. This was brought to the attention of the Holy Synod of Bishops, although no further action has been taken. At this time, Bishop Nikolai, as diocesan bishop, is maintaining direct oversight over Church lands in Alaska.

Dr. Faith Skordinski introduced her presentation, titled “Where Do We Go From Here?” She began by stating that she would facilitate a discussion, rather than give a lecture. She observed that no one member of the Metropolitan Council has all the answers to the question of where the Church should go from here, but that the council members can provide a map or blueprint, drawing on their experience of the Church in looking to the future.

Dr. Skordinski invited council members to divide into two small discussion groups for approximately 30 minutes, with each group appointing a moderator and scribe. The groups were asked to discuss four themes: (1) Name three positive aspects about the Metropolitan Council, and name three aspects of the Metropolitan Council that can be improved; (2) Name three concrete actions that the Metropolitan Council can take to regain trust among the faithful; (3) Name three concrete actions that might be asked of the faithful during these extraordinary times; (4) Reviewing everything the council had heard over the past day and a half, list three things the Metropolitan Council needed to prepare for in the future.

After the individual discussion groups, the council members reviewed their reactions to Dr. Skordinski’s suggested themes. Both groups had arrived at similar conclusions, which included the need for more frequent meetings of the Metropolitan Council; the need for more complete and accurate reports; the need to release press releases concerning the latest developments in a timely manner; the need for greater frequency of financial reports, both to the Metropolitan Council and the Church at large; the need for more clarity concerning the relationship between the Metropolitan Council and the Holy Synod of Bishops; the need for clarification concerning the role of the Administrative Committee, and the need for patience as the current issues continue to be addressed.

In order to convey to the faithful, as well as the broader public, the unity that had evolved as the meeting progressed, and to summarize the decisions made during the two-day meeting, Father Matthew Tate was authorized to draft a press release on behalf of the entire Metropolitan Council.

Prior to adjourning the meeting, Metropolitan Herman stated that consideration will be given to convening more frequent meetings of the Metropolitan Council.

He noted that the next regular meeting of the Metropolitan Council will be held on November 10, 2006. An additional meeting has been tentatively scheduled for September 28-29, 2006.

Council members participating in the meeting included the Very Rev. Vladimir Berzonsky, the Very Rev. Theodore Boback, the Very Rev. Sergei Bouteneff, Archimandrite Isidore [Brittain], Mr. Daniel Crosby, Mr. Michael Gregory, the Very Rev. George Hasenecz, Ms. Minadora Jacobs, Mr. Robert Kornafel, the Very Rev. John Onofrey, Mr. Gary Popovich, the Very Rev. Philip Reese, the Very Rev. Gregory Safchuk, Mr. Richard Schneider, Dr. John Schultz, Ms.
Eleana Silk, Dr. Faith Skordinski, the Very Rev. Igor Soroka, the Very Rev. Matthew Tate, the Very Rev. John Tkachuk, Dr. Richard West, the Very Rev. Michael Westerberg, the Very Rev. Constantine White, Dr. Alice Woog, and Mr.
John Zoranski. The Very Rev. David Brum served as secretary to the meeting.