Part 7 of our series on Segregation of Duties. In our recent Fraud Survey, we asked churches to respond to this statement:

“Our church requires volunteers to collect, administer and account for special event receipts using a written report developed to properly account for such events.”

Survey Results – Once again, a little over one-half of our respondents are in compliance with this fraud prevention measure.

KEY: Many churches farm out the reporting of special event accounting and require little or no accountability from their volunteers.

A significant example of this took place in our region a few years ago.  It took place within our local school district, but the same thing can and has happened at churches. A sports booster club held two annual fundraisers.  Some agitated parents (whose children evidently didn’t make the team…) discovered or were tipped off to the fact that checks received during the event were deposited in the club bank account.  However, cash received was deposited in the coach’s personal account.  The parents didn’t report it to the school district first – they turned him into the newspapers!