Georgia Church Insurance

Keeping Safe When Using Moveable Carts

There are numerous areas within your ministry that present a variety of safety concerns, and the use of moveable television carts should be added to your list.

Whether it’s a nursery, Sunday school or an after-school program, most religious organizations have programs that involve children. Many of these programs utilize a television with a video cassette player or DVD player for entertainment and education purposes.

Accidents involving televisions on carts are not uncommon. Recently, a 6 year old sustained a fatal injury when he attempted to climb onto a moveable cart and the television fell off striking him on the head. Another tragic accident occurred when a teacher asked an 8-year-old student to push a television cart from one room to another. The cart tipped when the wheels hit an object. The television fell onto the boy’s leg causing permanent damage.

Simple steps help prevent accidents

If you have a television and other equipment on a moveable cart, there are some steps you need to take to help prevent accidents from occurring:

• Always secure televisions and audiovisual equipment to moveable carts by using a strap or mounting brackets
• Make sure the carts are rated for the size and weight of the equipment
• Don’t allow children to play on moveable carts even if the equipment is strapped or mounted to the carts

Don’t allow children to move the carts around without supervision

For more information or to get a free quote for church insurance in Georgia please call 1-877-77GoAIB or 1-877-774-6242 or fill out the following online application and one of our team members will contact you shortly.

Fraud in the workplace isn’t limited to huge corporations such as Enron and WorldCom. In fact, small businesses, including religious organizations, are all-too-easy targets for occupational fraud.

And the damages are greater for small businesses, where the average loss from employee theft is $127,500, vs. $97,000 for large companies.

Fraudulent crimes perpetrated against religious institutions are on the rise and on the front pages of newspapers across the country.

• The administrator of a church in Pennsylvania stole nearly $100,000 of church funds over a 14-year period by falsifying vouchers and payments and forging pastors’ signatures.
• The former pastor of an independent congregation in Missouri plead guilty to felony fraud when he absconded with funds that may have exceeded $30,000. More than 100 church envelopes were found in the garbage behind his home.
• A Tampa, Fla., church authorized its minister to withdraw church funds on his signature only. He did just that, pocketing $6 million of the congregation’s funds.

“Any non-profit organization, like a religious organization, that tends to place a lot of financial control with one person with little or no oversight and little or no separation of financial duties is going to be significantly more susceptible to internal fraud,” said John Warren, associate general council of the Association of Certified Fraud Examiners.

So who perpetrates such crimes? All too often, it’s an individual so trusted that he or she has a high level of access to the worship center’s funds and financial dealings. The FBI describes the profile of an embezzler as a bright person who has been on the job five to six years, provides above-average performance and is highly motivated, valued and trusted.

Embezzlement occurs at worship centers of all denominations and sizes, in large cities and small towns. The underwriters of accountants’ professional liability insurance attributes the increasing number of embezzlement claims in recent months to the tough economy and rising unemployment.

“Religious organizations are particularly vulnerable because they handle a lot of cash, which provides easy access and opportunity for abuse,” said Nick Hodson, partner, Global Investigations and Dispute Advisory Services of the accounting firm Ernst & Young. “There’s probably a higher level of trust and that tends to mean there are less intrusive controls that would help safeguard the worship center.”

Prevention is key

Although it’s impossible to create an environment that’s entirely risk-free, you can minimize the potential for fraud through planning and diligent execution of good business practices that remove temptation and opportunity for fraudulent activities. Let’s review the basic steps every business should take to safeguard assets.

Personnel

• Check the references of potential employees very carefully. When in doubt, conduct a credit check and criminal background check.
• Develop a policy that establishes high standards for conduct and clearly outlines duties. Make sure that the appropriate people have read the policy, understand it and sign off on it. Keep one copy for your files and give a copy to employees for their files.
• Establish exacting personnel and volunteer procedures for access to and management of organization assets.

Risk assessment

• Risk assessment is a first step toward developing a sound plan that will address the needs and systems specific to your worship center.

• On a regular basis, conduct an audit of existing financial systems and practices to identify weak areas that could invite deception.
• Track the flow of assets in and out of your organization to determine control points.
• Analyze financial data in your books and records to make sure that all transactions reconcile. It’s best to use a computer program to track finances. These programs allow records to easily be reviewed and tracked.
• If you don’t have the resources to assess risk and develop a preventative program, hire an accountant with experience in workplace theft or a fraud investigator. Fraud studies published by the Journal of Accountancy show that up to 80 percent of fraud cases can be detected simply by asking the right questions — the questions a professional will ask.

Loss prevention program

Your loss prevention program comprises primarily the development of safeguards and processes to strengthen weaknesses in your system. The key is to keep bookkeeping processes as simple as possible to help reduce error and confusion.

• Your loss prevention program should be compatible with your worship center’s financial goals and plans. For instance, the goal for the growth and scope of your youth ministry might necessitate making funds for that program available to the youth minister. However, he or she will need to be accountable for appropriate record keeping and documentation of expenditures.
• Limit the number of bank accounts your organization maintains and the number of people who are authorized to sign checks. Two signatures should be required for checks over a predetermined amount such as $1,000.
• Transfer of large sums of money into or out of different accounts should not be permitted without written consent of two persons.
• Checks should be pre-numbered but not pre-signed or “signed” with a signature stamp. Blank checks or partially completed checks invite confusion and mishandling.
• The original corresponding invoice and a receipt should be provided for each cash withdrawal. Create a standardized form to document any cash handling.
• Ask members to place offerings in a sealed envelope with their names and dates recorded on the outer envelope.
• When checks or cash arrive via the offering plate or by mail, a list and tally of the collections should be made, and they should be deposited promptly — daily when possible. At least two people should be present when the offering is counted.
• Checks should be stamped “For Deposit Only” to discourage tampering.
• Establish division between people who collect funds, keep books, write checks and manage the bank accounts.
• Bank statements and accounting records should be balanced on a monthly basis.
• Maintain records on assets, equipment and supplies.
• Limit the number of worship center keys made available to staff or parishioners and record the names of people who have keys. Keys should be marked “Do Not Duplicate.”

Should you suspect fraud is being perpetrated, don’t try to handle it yourself.

“Call an accountant with fraud experience, a fraud examiner or a lawyer,” Warren said. “It can be a delicate process; you may not want to tip off the person under suspicion early in the investigation. You need an expert who knows how to investigate fraud and how to preserve evidence, if there will be legal action. Plus, you don’t want to violate the legal rights of the person being investigated.”

For more information or to get a free quote for church insurance in Georgia please call 1-877-77GoAIB or 1-877-774-6242 or fill out the following online application and we will contact you shortly.