Embezzlement can strike anywhere, even in places we hold sacred. In May, a former employee of Christ the King Catholic Church in Tampa admitted to stealing $775,000. This shocking case highlights the need for stringent financial controls in houses of worship.
What Happened?
Heather Darrey, while serving as the parish’s records and finance manager, executed a complex scheme. She generated authorized bank checks for the parish’s vendors, destroyed them after they were signed, and replaced them with handwritten checks payable to herself. The theft, which occurred over five months, was revealed during an audit, showing a loss of $775,196.90.
Darrey previously admitted to stealing a smaller amount from the church and begged them not to contact authorities. She used the stolen funds for personal expenses, including luxury goods and mortgage payments. When confronted, she admitted her guilt and has agreed to a plea deal, which includes full restitution and potential imprisonment of up to 20 years. You can read the full article here
Preventing Embezzlement
Embezzlement can have devastating effects on your house of worship. To ensure you do not become a victim of such a crime, it’s crucial to implement robust financial controls. Here are five tips to help you strengthen your financial oversight and prevent embezzlement:
- Implement Strong Financial Controls
Establish multiple layers of oversight for financial transactions. Ensure that no single individual has control over all aspects of financial management.
- Regular Audits
Conduct regular, independent financial audits. External audits can detect discrepancies that internal reviews might miss, providing an unbiased assessment of financial health.
- Segregate Duties
Separate financial responsibilities among different individuals. For example, one person should handle incoming funds, another manage accounting, and a third oversee disbursements.
- Transparent Reporting:
Maintain transparent financial reporting to your congregation. Regularly update them on the financial status of the organization and major expenditures, fostering an environment of trust and accountability.
- Encourage Whistleblowing
Create a safe, anonymous way for employees and volunteers to report suspicious activities. Ensuring there are no repercussions for whistleblowers can help uncover fraud early.
The case of embezzlement at Christ the King Catholic Church serves as a stark reminder of the vulnerabilities that can exist within your house of worship. By implementing strong financial controls, conducting regular audits, segregating duties, maintaining transparent reporting, and encouraging whistleblowing, you can protect your house of worship from similar incidents.
Prevention is always better than response!
Simon Osamoh serves as the editor of Security Connections and is nationally recognized for his work in safeguarding houses of worship. He began his career in England, spending 14 years as a detective specializing in serious and organized crime before leading Counter Terrorism at the Mall of America in Minnesota. Simon founded Kingswood Security Consulting and the Worship Security Academy, aimed at providing security solutions to houses of worship. He is the author of two Amazon bestselling books and the host of the Church Security Accelerator Podcast. For submissions or topic ideas, reach out to Simon at sosamoh@worshipfacility.com
