Internal control

discussions and comments on internal control for local churches

Feature length Cartoons, Internal control

Index of cartoons.

by Jim Ulvog

Two cartoons provide visual explanations of how to structure internal controls at a local church.  Each of them consist of two shorter clips with an intro and extro. Here is an index of how the cartoons are organized with links to each one.   This gives a picture of how the individual cartoons are structured:

 

Internal control

“4 Tips to Prevent Fraud at Faith-Based Organizations”…

by Jim Ulvog
Photo courtesy of DollarPhotoClub.com
Photo courtesy of DollarPhotoClub.com

… is the title of a great article by James B. Jordan to help churches and other faith-based charities protect their contributions from theft and protect volunteers from temptation.

Setting up internal controls is difficult in small organizations, even more so for local churches. The place churches routinely have the most difficulty is keeping control over contributions between the time gifts go into the collection plate until a deposit is ready for the bank.

Mr. Jordan’s tips:

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Internal control

Looking for ways to beef up internal controls in a small organization?

by Jim Ulvog
Image courtesy of DollarPhotoClub.com
Image courtesy of DollarPhotoClub.com

Small charities usually cannot afford enough staff to put in place great internal controls. If you want a few ideas on how to make modest improvements at low cost, Charles Hall suggests How to Lessen Segregation of Duties Problems in Two Easy Steps.

(Cross post from my other blog, Nonprofit Update.)

Second set of eyes on bank statements

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Internal control, Other stuff

Live example of a fraud fiasco

by Jim Ulvog

“Going to meet your Maker with the fresh scent of theft on your hands is not a good way to go…”

is how Charles Hall starts his story of a long ago fraud – Stealing While Dying.

We’ve all seen the situation where the bookkeeper does the main bookkeeping, receives the bank statements, reconciles the accounts, and is an authorized check signer.

In this situation, the most-honest-and-nicest-person-you’ll-ever-meet bookkeeper starting stealing lots of money when she became gravely ill.

His story took place in a for-profit business, but it could easily happen in any church.

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Internal control

Price cut on my newest e-book, “Tragedy of Fraud”

by Jim Ulvog

Price reduced to only $0.99, now available here.

“Tragedy of Fraud – The Ripple Effects from Fraud and the Wages Earned” describes the tragic consequences from fraud.

There are ripple effects that spread out to harm innocent bystanders. The perpetrator draws a wide range of well-deserved wages that will be paid in full.

The book looks at two fraud incidents to learn what happens after a fraud is discovered. One took place in a local megachurch and the other in the mayor’s office of a small city.

This book is a compilation of blogs posts that have been previously published at Nonprofit Update and Attestation Update. The posts have been edited slightly and reorganized for easier reading.

Major sections of the book:

  • Tragedy of Fraud – The Ripple Effects from the Embezzlement Fraud in a Local Church.
  • Wages of Fraud – Consequences from the Corruption Fraud in a Mayor’s Office.
  • Why is it Difficult to Find Fraud? – The lack of documentation inside an organization makes it even more difficult to identify a fraud scheme.
  • The Fraud Triangle – A discussion of the three sides of a fraud triangle. That’s the idea that three components need to be present for a fraud to take place – opportunity, motivation, and rationalization. Great danger is in play when all three factors are present.

The other book I have available at Amazon is Once Upon Internal Control.

Internal control

Some traps church business administrators need to avoid

by Jim Ulvog

(cross-post from my other blog, Nonprofit Update.)

The urgency of things that must be addressed now can take focus away from bigger issues that have long-term payoff.  Verne Hargrave, CPA, of PSK has started a good series on traps that business administrators can fall into because of tyranny of the urgent.

Looks to be a very helpful series. Would be worth your time to visit his blog regularly. Maybe even set it up on your RSS feed.  I’ll highlight it occasionally.

Ten Things to Avoid  in Church Administration starts the discussion. Mr. Hargrave points out a few problems that can arise if tyranny-of-the-urgent takes over your life: (more…)

Internal control

“Once Upon Internal Control” is available on Kindle platform

by Jim Ulvog

My tale on internal control done well and poor at two churches is now available in Kindle format at Amazon.

Price is $0.99.

You can read the book on your Kindle device, on any smart phone with a Kindle app, or on your computer using the Kindle-for-PC application.

At Amazon, search for my name, Ulvog, or the book title, Once Upon Internal Control.

Or click here to go directly to the book.

Internal control

Keep track of your church’s equipment and property – how and why

by Jim Ulvog

(cross-posted from my other blog, Nonprofit Update.)

A local church should keep track of its equipment, improvements to property, and building.

You will definitely need that information if you have an audit, review, or compilation of your financial statements.

A far more common reason to accumulate that information is for insurance purposes. In the event of a tragedy such as earthquake, tornado, or hurricane, you will need to have some detail records to present to you insurance company to get full recovery for your loss. (more…)