Some diocese officials said the exclusion stemmed from John Cardinal O'Connor's annoyance over President Clinton's veto of a bill that would have outlawed certain late-term abortions.

Instead, she and her staff advised him and other diocese officials, in many meetings and phone calls, for a year free, she said.

Instead, diocese officials investigated the allegation on their own, as was the policy at the time.

The direct contact finally came during a meeting on Tuesday between diocese officials and representatives of Mr. Hynes.

The new fund-raising campaign, Forever Marymount, is being supported by diocese officials, but they have not changed the proposed June 30 closing date.

The diocese is seeking restitution and also expects insurance to cover the loss, diocese officials said earlier.

An audit after her death found about $300,000 in school money unaccounted for, diocese officials said.

He said diocese officials had been concerned about the publicity that Mr. Cellura's arrest would generate, but understood the necessity of prosecuting the cases.

One diocese official recalled a meeting at which Cardinal O'Connor told a donor he did not want his money, just his advice.

Mr. Gianforcaro added, "I will discuss with the diocese officials the nature of what I have from Mr. Hanley."