If your church or ministry is finding success and growing, the chances are they will be the target of those who wish to bring them down with fraudulent or deceptive means. Today’s world is seeing many churches, ministries, and non-profit organizations shutting down as a result of not being forewarned about the dangers of financial […]
Our Fraud Awareness in the Church series continues with a two-part series on Fraud Prevention Programs. PSK in cooperation with the National Association of Church Business Administration (NACBA) conducted a survey to determine the extent of fraud awareness in the church environment. We asked churches to respond to these statements: “Our church has established a formal program for managing fraud risk.” “Our church has […]
Our Fraud Awareness in the Church series continues as we look at Payroll Fraud and Phantom Employees. We asked churches to respond to these statements: “Someone not involved in the payroll preparation process distributes paychecks or direct deposit stubs.” “We review direct deposit account information for duplicate accounts.” Survey Results – Very few churches do any kind of employee […]
Part 3 of our series on Cash Disbursements. In our recent Fraud Survey, we asked churches to respond to this statement: “Our church has established an “approved vendor” list. All payments for goods or services are made only to vendors on the list.” Survey Results – Only 20% of the churches surveyed reported using an approved vendor list. […]
Our Fraud Awareness in the Church series continues with a 5-part series on Cash Disbursements. When churches finally get around to considering their exposure to fraud, they almost universally focus on the cash receipts or the inflow part of their cash processes. Without doubt, many churches have been hit by fraudsters skimming from the offering plates. But in […]
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 […]
Part 6 of our series on Segregation of Duties. In our recent Fraud Survey, we asked churches to respond to this statement: “We present a list of authorized check signers to the leadership team/elders, etc. for review at least annually.” Survey results – Approximately 55% of respondents reported reviewing their bank accounts and related signature information at least […]
Part 5 of our series on Segregation of Duties. In our recent Fraud Survey, we asked churches to respond to these statements: “Our church has a formal policy describing the characteristics required for participation on the count team, including limiting related individuals and restricting the same individual from participating in more than one component of the process.” “Church […]
Part 4 of our series on Segregation of Duties. In our recent Fraud Survey, we asked churches to respond to these statements: “Our church does not allow an individual who serves on the count team, is involved in check preparation, or is involved in general ledger and financial statement presentation to participate in the bank reconciliation process.” “Someone […]