ChurchSafety

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The first thing every church needs to understand (and believe) is that they're not immune to financial misconduct. The "We don't need to worry about that here" mentality is the reason why so many churches have been the victims of embezzlement. Even if your church isn't being victimized (right now), implementing a system of internal controls will ensure that your finances aren't at risk in the future.

Here are a few basic principles pertaining to the implementation of internal controls:

Even if you trust every leader at your church (every usher, every money-counter, and so on) you probably wouldn't feel comfortable giving all of them a copy of your house key—or access to your bank account. Even if you trust them completely, there's no reason to provide such unlimited access to your possessions. In the same way, no one should be given unlimited access to the church's assets.

Internal controls are like checks and balances—or an accountability system. Not only do internal controls make your church's finances safer, but the knowledge that your church has a system in place will also serve as a deterrent—removing the temptation for a leader to embezzle or to "borrow" funds temporarily.

A system of internal control not only protects your church's assets, but it protects church leaders from unfounded accusations. If a church leader is wrongfully accused of embezzlement, he will be glad the church's internal controls have made such a charge impossible.

If you are worried about offending someone who has been serving dutifully for years (which is often the case), then make sure you emphasize that the changes have nothing to do with any individual. Rather, the changes are necessary for ensuring the financial security of the church in the present and future.

Good-intentioned leaders and volunteers should welcome the implementation of internal controls. At first the new practices might seem inconvenient, but in the end, your leaders will be less susceptible to false accusations. And they will understand that you have the church's best interest at heart.

Documenting your church's internal control policies is a vital step. This communicates that you are serious about implementing these practices, and it will encourage your leaders to abide by the new restrictions—even if they might seem tedious or unnecessary.

In addition to implementing a system of checks and balances, and limiting access to accounts and cash supplies, churches need to consider finding a local CPA to perform an annual audit of their finances.

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