Reducing The Risk of Embezzlement

Can the risk of embezzlement be reduced? If so, how? The good news is that there are number of steps that church leaders can take to reduce this risk, and most of them are quite simple. Consider the following:

1. Implement an effective system of internal control. The first and most effective deterrent to embezzlement is a strong system of "internal control." Internal control is an accounting term that refers to policies and procedures adopted by an organization to safeguard its assets and promote the accuracy of its financial records. What procedures has your church adopted to insure that cash receipts are properly recorded and deposited, and that only those cash disbursements that are properly authorized are made? These are the kinds of questions that are addressed by a church's system of internal control. A table in this newsletter addresses a number of common weaknesses in church internal control that increase the risk of embezzlement. The table provides helpful suggestions for responding to these weaknesses.

Log In For Full Access

Interested in becoming a member? Learn more.

View All
from our store
Church IT

Church IT

Learn how to find the best solutions when choosing software and hardware for your church.
Church Finance

Church Finance

Learn about budgeting, financial reporting, tax compliance, insurance coverage, and more.
Understanding Labor Laws

Understanding Labor Laws

Regulations that pertain to hiring, firing, paying, disciplining, and supervising ministry employees.
Reducing the Risk

Reducing the Risk

Keep your church safe from child sexual abuse.

ChurchSalary

ChurchSalary

Let ChurchSalary do the work. Get personalized compensation reports for staff and pastors.