Most organizations whether religious, charitable, community or residential have faced a chilling moment of revelation- she stole our money. She was embezzling our funds right under our noses. How could he betray our trust?
Unfortunately it is as common as the cold. It should be expected as the preacher talks about sin every Sunday and stealing is one of those that is right up there with adultery. But invariably a group feels violated, betrayed and stabbed in the heart.
There are always reasons like the janitor that takes food from the unlocked church kitchen refrigerator to feed his kids. Sometimes the lady who writes the checks has been to the casino once too many times and is just a wee bit short on the monthly rent. Then there is also the rationalizing pastor who doesn’t believe the congregation values him enough or at least not in the salary and benefits part of his paycheck.
Keith Hamilton, a Baptist author and writer, says you can’t close the barn door after the horse is out, spilled milk just has to be cleaned up and not put back in the bottle. In other words, an ounce of prevention is worth a pound of cure.
Hamilton has issued 10 new commandments for charitable organizations such as churches to prevent embezzlement.
Conduct that audit. Sure there are lots of reasons not too such as being able to afford one. For larger organization a professional audit is a must to guard the most precious asset possessed its name, reputation and integrity. Most smaller groups at least have several people that can act as an internal review committee authorized to look at all of the details. It is preferable that this be done by an independent, outside auditor. Upon finding rat droppings contact the authorities to help clean the nest.
Comply with IRS guidelines concerning financial reports and reporting. This is about transparency. As the Bible says it is the children of darkness who prefer the dark. All receipts whether designated or un-designated are subject to the control and will of the organization. They are responsible for all of them and should be accountable for all of them.
Two Signatures required for every check. How about on-line banking? OK how about two signatures on the paper printout. Also signing blank checks is a no no. The church secretary or the pastor’s secretary and especially not the financial staff administrator should not be designated as a signer. Granted this makes it hard. By the way, that is the point.
A Clear and Adhered to Church Treasurer Job Description. Hard to fill, right. No one wants the thankless job of being the organizational policeman. The sin eater for staff and congregation alike. Best way to get an old geezer reputation is to cross the pastor, staff or chairman of the deacons. The Treasurer has no conflict of interests. He does not receive the money for deposit, count it, or spend it. His position is above the fray. He is the umpire that knows how the game is played and keeps it honest for all sides.
Funds Secured From Plate to Account. Get it to the Bank on time and without any lapses or responsible guardianship. Seal the bag and strip search the ushers if need be. Just kidding about the ushers.
Unrelated Rotating Individuals Receive the Offering. Even the Mafia knows that routine gives opportunity. A rotation and a mixing of individuals will help as Paul says to keep things honest in the sight of all men.
While we have the Ushers turning Also Rotate the Counters and Checkers. The Treasurer is not the offering counter. She may be present but a couple of other people who change off is even better.
Small Change Also Counts. The best practice is to itemize the receipt. List out the dollars, quarters, dimes, nickels and pennies on the deposit slip. The slip should be retained for audit.
What Happens at the Church Should Be Stored At the Church. Not gossip of course but the financial records. The Church as any other business operation should have the records on site and not in member homes. There is a name for people who like to keep the evidence at home. It is crooks. Contribution records for individuals are to be given at tax time to every contributor. By the way it isn’t unspiritual to render unto Caesar that which is Caesar’s.
Compare Current Receipt and Spending Patterns over Time. The best way to know growth and health is by comparing one annual exam against another. Why are there more offerings this year than last? Has the ratio of currency offerings changed in relation to regular check giving? Sudden and unexplained increases or decreases could be a red flag.
It is hard to be a Treasurer but he or she should take the lead to recommend to the church a simple and transparent system of processes to protect his good name. He should be backed up by the financial leadership team and above all the pastor. Can a scandal break out in their Church? The first church fight recorded in Genesis was about the offering. Somebody got killed.
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