10 Practices to minimize theft of ministry monies

1. Rotation

Volunteers and employees who help with counting the offering should be rotated on a regular basis.  No one should stay in the role indefinitely and the use of multiple, unrelated people will make it more difficult to skim dollars from the offering.    Routes should also be rotated…how do we take the money from collection in the auditorium to the office or counting room.  When it comes to rotation, also rotating who takes the money to the bank and the routes which they use to take the money to the bank. 

2. Safes

Cash and checks should be kept securely in a locked safe until it is delivered to the bank.  Get a safe with a drop slot so that it doesn’t require someone to open it to make a deposit into it.  Have a policy that the safe is only opened by two people and the combination is limited to a few people who do not have a key to the room the safe is kept.  

3. Two-Person Rule

The cash handling policy should have a strict two person rule, stating that there will always be a minimum of two people when cash is handled, counted or transported.  The two people should not be related and should not have personal financial issues.

4. Background/Credit Checks

In today’s society it is only wisdom to perform a background check on all church employees and volunteers but people who have access to church funds should also be subjected to a credit check.  

5. Watch for Warning Signs

There are many signs you can watch for but a few to think about are:

• Only one person has access to offering, cash, checks and check log.
• Person with access doesn’t take vacations and guards against someone else doing their job.
• Person with access is living beyond their means.
• Person with access has personal financial issues.
• It is difficult to get financial summary from responsible person.
• There is inadequate supervision of person(s) handling cash.

6. Act on Suspicion

If you have a gut feeling, take the time to investigate and act on your instincts.  

7. Supervision/Management

Whether that oversight is of employees or volunteers, it is critical to have good supervision of those who deal with church funds.   Make your presence known, ask questions and insist on timely financial reporting.  Management and supervision is a crucial aspect of financial controls.

8. Policy and Procedures

The first step in any effort of control is to write policies and procedures.  Spend some time thinking through how your organization would like to control the handling of, and access to, church funds.   The more eyes on the books, the more likely it will be for someone to notice irregularities.

9. Training

Employees and volunteers who help with counting the offering, or assisting in the church office, should be trained at least annually on the policies and procedures that relate to church funds.  

10. Audits

Church audits are expensive, there is no question, but it is critical that the church takes the steps to conduct thorough church audits on a regular basis.