Embezzlement at church happens more often than leaders like to admit. In order to prevent fraud from occurring at your congregation, here are five practical tips.
• Split up financial duties. Never have the same person writing checks and reconciling bank statements. The more eyes on the church’s finances the better.
Who commits church fraud?
- 42% are Treasurers
- 15% are Administrators
- 11% are Pastors
• Require mandatory vacations. Make sure the people who handle the church’s finances take a break each year. It’s hard to maintain a fraud if other people have access to the books and bank statements.
• Don’t be eager to sign checks. Sign checks only when all information is entered on the check and supporting documentation is available. Never pre-sign a check or make checks out to cash.
How do they commit fraud?
- 29% use checks
- 23% use cash
- 21% use credit cards
• Keep and eye on credit cards. Keep a close eye on credit card statements to ensure they are used for official business only.
• Be careful when spending money. Maintain competitive bidding for major purchases and contracts. Create policies for cash disbursements, expenses and travel, purchasing guidelines, petty cash, and conflicts of interest.
Statistic source: Church Mutual