Rockford church treasurer indicted

Former church employee indicted for embezzlement, child pornography

Excerpt:

The U.S. Attorney's Office says Beise worked as church council treasurer at Cross Evangelical Lutheran Church from 1998 to 2006.

The indictment alleges that Beise embezzled the more than $240,000 from the church by depositing church funds into his personal bank account and writing checks from the church account to pay personal expenses.

It also says investigators believe he used the money to help fund the construction of his $600,000 home, pay credit card bills, and buy jewelry and season tickets to sporting events.

Comments: Simple controls would have prevented the embezzlement. Notice this phrase: "... by depositing church funds into his personal bank account and writing checks from the church account". Controls needed (most churches have them by way of common sense!):

1. Separate the depositing and the check writing functions (and persons). The one who deposits and reports the deposits must be distinct from the one who pays the bills by writing the checks!
   
2. In most churches the "Financial Secretary" handles the counting and depositing function while the "Treasurer" handles the bill paying function.
   
3. Other basic controls:
   
   
   
   1. All monies must be prompted counted and deposited. At least 2 non-related people should be involved in the counting and recording. A rotation of counters should be in place to somewhat randomize the makeup of the counting teams.
      
   2. The deposit should be made by at least the Tuesday after the Sunday collections.
      
   3. The deposit amounts should be promptly reported to the treasurer (with the board members copied)
      
   4. The treasurer should not be able to handle any cash. He writes the checks and balances the checkbook. Prompt reporting (monthly in a small church, more frequently in large ministries) should be provided all officers.
      
   5. A ledger of all checks written should be provided to all officers.
      
   
   

The above process should be documented and audited. These simple steps would have prevented this embezzlement. Churches and other non-profits often have lose controls and are susceptible to financial mismanagement and fraud.