The Anglican Diocese of Grafton broke protocol by keeping files on child abuse allegations in its registry rather than referring them for independent scrutiny.
The diocese's view that the attention of the professional standards director was not warranted in these cases was described during a royal commission hearing on Tuesday as demonstrating the diocese was not fully committed to investigating allegations.
The northern NSW diocese is the focus of hearings in Sydney as the Royal Commission into Institutional Responses to Child Sexual Abuse looks at the response to claims of abuse at the North Coast Children's Home in Lismore.
Former Anglican Diocese of Grafton acting registrar Anne Hywood told Tuesday's public hearing a November 2012 audit identified matters in the registry that should have been referred to professional standards director Michael Elliot.
While she said she understood the need to keep information relating to victim settlement claims in the registry, she was surprised to find abuse complaints that included sexual allegations.
"These matters should be dealt with at arm's length from the leaders of the diocese," she said.
Ms Hywood said she identified complaints that should have been referred immediately but had been managed by the bishop, registrar and diocesan advocate.
"Therefore the protocol had not been followed," she said.
Two letters from victims detailing horrific abuse allegations at the Lismore home were received at the registry in 2011.
Yet 18 months later, the complaints had not been referred, Ms Hywood said, making her "particularly furious".
The commission heard the Grafton Diocese engaged Mr Elliot on an hourly basis because it didn't feel there were sufficient matters to warrant engaging him for longer.
Ms Hywood said that showed the diocese was not committed to ensuring the professional standards process was conducted properly.
Since then, Mr Elliot has been engaged on an annual salary.
The hearing continues.
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