Our Blog

by Mary Stange – Client Advisor

We are continuing our review of the importance of internal controls in Church Finances, and key processes. Churches and Schools regularly host special events, from pancake breakfasts to school plays. Please find some of our top process improvements for financial transactions at Special Events. 

Special Events and fundraisers are designed to attract others to your cause. I didn’t live too far from my local Church at one point in my life, and I regularly walked there on Sundays. One particular Sunday, following the Church Carnival, I saw someone’s wallet and cards carelessly strewn in a pine tree at the end of my street. Very clearly the result of a theft, and with the proximity to the Church it was also a good bet that the theft occurred at the Carnival. A good illustration of why it’s important to review financial transactions at special events. We certainly can’t prevent personal liabilities like a pick-pocket, but when it comes to financial transactions at special events, we can do our best to engage internal controls.

1. Is your event authorized to deal in cash transactions?
   1. Limit the number of areas that allow for cash transactions. For example limiting cash transactions to the ticket booth, and the food tent.
   2. Cash boxes should be manned by two dedicated cash transaction volunteers at all times.
2. If there are cash transactions taking place, ensure there is a secure location for the on-site bank to be set up.
   1. Ensure there are adequate volunteers to run the bank and that two volunteers are present in the bank at all times.
   2. Regular shifts should be communicated with times to refresh cash boxes.
      1. In the instance of very popular events, it might be necessary to prep two cash boxes; one for circulation and one to count and reset at the end of the shift.
      2. The amount of petty cash that the box starts with should be the same throughout the event.

1. The box should be reset with appropriate small bills for the same total ahead of the next shift.
2. These real-time shift reports will also allow the volunteer coordinators to check in from time to time on the profitability of the event.

1. Can you enable volunteers to use electronic transaction methods?
   1. Merchant Services, where can a card be swiped? You would want to be aware of transaction fees before agreeing to offer electronic payments.
2. Auctions get their own bullet point. There are typically several components to an auction. The silent auction as well as a live auction. It is important to enable your volunteers with appropriate auction software to help them set up registered attendees ahead of time as well as all of the auction items.
   1. In this instance, you can require a check or card for payments at the end and clearly communicate that to attendees. If you do offer cash, limit the available cash stations to one.
   2. The on-site bank needs to be staffed throughout the evening and reliable data entry performed as the results for auction items come in.
   3. An on-site bank supervisor needs to be present to answer any questions or help resolve any issues that come up with auction items.
3. Late night Deposits should be accompanied by a police officer. Most parish or school communities have a member of law enforcement in their community. This can be a means for them to volunteer their time.
   1. One staff member should be assigned to ride with the police officer; driving straight to the bank to drop off the evening deposit in the late-night drop box of your banking institution.
      1. As someone who has ridden along with a parish policeman for a night drop, it is a comforting security to have the police officer open their car door and stand at attention while you drop the deposit into the box at the bank.