Because of our involvement in fraud prevention we make it a point to keep up with the latest news by periodically searching the web for news stories.  It seems like the pace of fraud occurrence is quickening.

Here are two recent stories of church embezzlement:

• Church employee charged with embezzlement
• Firefighter and church deacon accused of embezzlement

PSK is not involved in any of these situations so I have no idea about anyone’s guilt, innocence or the ultimate outcome of the cases.  But, I am sure of one thing; no church or ministry wants to make these types of headlines.

To avoid this kind of publicity we have been urging, almost pleading with churches to take this situation seriously.  A “clear and present danger” exists and every church should immediately perform an analysis of their current management structures to determine their vulnerabilities to fraud.

This does not have to be complicated.  For example, a great start would be to simply hold a brainstorming session with key employees and volunteers. The meeting agenda could be organized around a few key questions.  For example you could start with the revenue streams of your church:

• What are our church’s different sources of revenues? (Offerings, counseling fees, tuition, fund-raising events, etc.)
• Do we have processes in place to effectively and safely account for ALL sources of revenues?
• Who is involved in the money collecting, counting, recording, and depositing processes?

PSK LLP has provided this article as a resource to help churches prevent fraud.
We can help you with your specific needs by calling us at 817-664-3000 (Toll Free: 800-424-5790) or email Verne at verne@pskcpa.com