Audits & Fraud
Hopefully you have a trusted Finance team overseeing your contributions and finances. However, even the most honest workers need checks and balances. Do regular audits and reviews to help keep your team accountable and guard against fraud.
Pastor & Assistant Falsifying Timecards
Wednesday, March 21, 2018 Hey Fletch … A pastor here at the church allows his assistant to work overtime and then they don’t put it on the assistant’s timecard. I have warned both of [...]
Ultimate Tax Avoidance?
Monday, March 19, 2018 Hey Fletch … Someone who is a supposed tax expert emailed me the following letter in response to a question: “If you buy everything you need or want in the [...]
Stolen W-2s: Follow-up
Friday, March 16, 2018 Hey Fletch … There was a column on January 14, 2018 that all of a church’s W2s vanished. Some insurance policies have coverage for this and the church may have [...]
Stolen W2 Statements for All Staff
January 14, 2018 Hey David … A shipping firm claimed they left the W-2s for all of our employees at the church’s front door. No signature was required and they left the package at [...]
Audit and Review Infographic
When was your last church audit? What process do you use for both your internal and external audits? Regular audits help your church identify strengths, weaknesses, opportunities and threats. A proper audit schedule also [...]
What I Learned from a Certified Fraud Examiner
We’ve all seen the tragic headlines about churches becoming the victims of fraud. To borrow some real-life examples: “Father and Son Pastors Plead Guilty to Stealing $3.1M from Church,” “Nebraska Archdiocese Sues Nun Accused of [...]
How to Get Ready for a Financial Audit
The number of Americans calling themselves Christians has dropped sharply in recent years, according to a new Pew Research Center survey---while the population of religiously unaffiliated adults is on the rise. This trend is driven [...]
Defining Internal Controls Over Financial Reporting
The Center For Audit Quality, a non-profit group based out of Washington D.C., has published a great guide on Internal Controls. While the term "Internal Control" can seem imposing to a church, the concepts in [...]
Don’t Become a Statistic: Four Tips for Preventing Fraud
Fraud takes many different forms in today’s culture, from health care fraud to identity theft to the focus of this article: occupational fraud. There are many ways fraud can be committed at a not-for-profit organization, [...]
Church Embezzlement
The numbers just did not add up. A few years back I was working with a church that was struggling financially, yet their giving was strong. They shouldn't have been struggling to make budget. I [...]
How to Launch a Risk Management Program
“What event might occur that could take out our church?” Drop that question at the next staff meeting and you’ll feel the tone of the room take a nose-dive. No one likes to talk about [...]
Handling Cash
Consider the following scenarios: (1) A newspaper headline reads: “Sticky Fingered Deacon Pads Wallet with Offering Plate Funds.” Nobody wants this humiliating portrayal of their church to appear in the paper. (2) A senior pastor dreads [...]
Financial Statements Matter
“What is more, he (Titus) was chosen by the churches to accompany us as we carry the offering, which we administer in order to honor the Lord himself and to show our eagerness to help. [...]
Is Your Data Secure?
Think for a moment. Where do you keep information about your congregants or donors? In an Excel file on someone's desktop computer? An Access database housed on your laptop? If someone were to steal your [...]
Dashboard Indicators for the Church: Why They are Important, and Where You Should Start
In high school, a friend gave me a ride home from work late at night. We stopped for gas and I noted that her oil light was on. When I asked her about it, she [...]