While any organization that deals with money, including a church, places a great deal of trust in those who are responsible for handling the money, it is also a good idea to be cautious. Churches especially tend to believe that they can trust the treasurer to handle finances appropriately, but even those within a church are subject to temptation. In the midst of difficult times, it can be too easy for a treasurer serving a church that does not audit its finances to take advantage of that church.
One possible way that a treasurer might attempt to steal from a church is by not paying church bills in order to cover his or her theft. A case where this occurred involved a treasurer who did not pay church insurance premiums. Unfortunately, one of the premiums that went unpaid was the insurance that covered employee theft. Because the treasurer did not pay the premiums, the policy was eventually cancelled, meaning that no coverage was available for the thefts.
It is also possible that an employee who is committing theft may choose not to pay other bills in order to cover the theft. One bill that a dishonest treasurer may choose to avoid is employment taxes. If a church does not pay these when due, they will eventually have to be paid and will likely accrue additional interest and penalties. Seeking a church insurance quote and purchasing insurance to cover loss may help, but if the insurer cancels the policy due to a dishonest employee’s nonpayment, the insurance will not help your church.
When one individual has enough authority to be responsible for the entire financial operations of a church, opportunities to take advantage of the trust of the church body are simply too many. All that it might take to prevent such a significant loss is to conduct an annual audit by an independent auditor. An independent auditor can help ensure that a church’s money is going where it is supposed to go and can quickly discover any problems that may arise. Conducting audits of church finances can not only boost the likelihood a church will remain solvent, but it can also help ensure that a church will be successful with reaching its goals.