Once Upon Internal Control.

(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…)

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.

(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…)

(previously posted at my other blog, Nonprofit Update)

 See this article for a sad illustration of disbursement fraud.  The specific technique was opening credit card accounts in the name of the company and then using the account for personal expenses. 

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People who study fraud tell us there is a “fraud triangle”. Remember discussing the fire triangle when you were in Boy Scouts or Girl Scouts? Just like you need to have heat, fuel, and oxygen to kick off a fire, you need to have opportunity, motivation, and rationalization to kick off a fraud incident.

I have written a series of posts on my other blog, Nonprofit Update, about the fraud triangle.

I combined the posts into one page so you can see all the discussion together. See the Fraud Triangle.

(previously posted at my other blog, Nonprofit Update)

What could you do when there aren’t enough staff to have someone other than the bookkeeper prepare the bank reconciliation?  Bank recs are complicated.  For many small organizations, the staffing is so thin that there is no one other than the bookkeeper who has the skills to prepare them.  What to do when you just can’t split up those duties?

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

Maintain dual control over the offering! You hear that unending refrain from us accountants.

Document those disbursements!  Another routine comment you hear.

One story in scriptures has a good illustration of the first control along with missing the boat on the second idea.  Jehoiada, the priest during the reign of King Joash, did a good job on the dual control over the offering and not so great on accountability for the disbursements.

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The impact of a fraud incident in a local church is devastating. The repercussions spread out like the ripples of a rock thrown into a calm pond.

I have written a series of posts on my other blog, Nonprofit Update, about a major fraud at a church near me. I have a number of friends who worship there, so this disaster is quite real to me.

I combined the posts to one page so you can see the discussion chronologically. This series is called the Tragedy of Fraud.