http://www.sun-sentinel.com/news/local/palmbeach/sfl-pchurchside30sep30,0,976495.story
Accountability a matter of trust; practices vary from church to
church
By James D. Davis
Religion Editor
September 30, 2006
American churches generally have moved toward more financial
accountability in the past five years, as money scandals of Enron,
WorldCom and other large corporations have come to light. Many churches
have internal audits, and some have outside audits.
"The big struggle in a church environment is trust," said Clare Chapman,
vice president for administration and finance at the National Council of
Churches. "Whenever something happens in the news, all the denominations
take a double look at things."
But church practices still vary widely. The United Methodist Church -- a
"connectional" body, where churches link up under bishops -- has
elaborate auditing standards. The denomination's Florida Conference has
its nine district offices use the same accounting software.
Southern Baptist churches, on the other hand, prize their independence,
making for a patchwork of money practices. Most congregations have
oversight through finance committees; some have chief financial
officers. But they may issue financial reports weekly or monthly or
quarterly.
Even tight standards don't always immunize religious groups. The
connectional Presbyterian Church (U.S.A.) has congregations report to
the national General Assembly as well as local offices. But this past
summer, the group fired a national financial officer after determining
that more than $100,000 was embezzled from the general operating fund.
"It can happen to any denomination," said Simeon May, CEO of the
National Association of Church Business Administration. More often than
the big-ticket thefts, he said, are smaller cases where a church
bookkeeper takes $10,000 or $15,000. "You don't hear about those because
the church doesn't want the publicity, and often the person makes
restitution," May said.
In the Roman Catholic Church, the Rev. Thomas J. Reese, a senior fellow
with the Woodstock Theological Center at Georgetown University, said
many parishes have lay-led finance councils, and most dioceses have
parishes send annual income reports.
But many bishops order a comprehensive audit only when a new pastor
arrives, Reese said. Most bishops don't want the expense of constant
financial monitoring, he said.
Some Protestant organizations issue their own guidelines. The respected
Evangelical Council for Financial Accountability sets out Seven
Standards of Responsible Stewardship on its Web site, www.ecfa.org.
Items include audits, truth in fundraising and avoiding conflicts of
interest.
Simeon May, who teaches church accounting classes,
recommends separation of duties at church. Someone who deposits funds,
for instance, shouldn't be the same one who enters the amounts in
accounting records. And, he said, at least two people should pass the
offering plate. "Most people trust churches, and the congregation trusts
the people on staff," May said. "They should make sure to leave no
reason for anyone to question their actions. And they should remove
temptation."
James D. Davis can be reached at jdavis@sun-sentinel.com or
561-243-6600, ext. 4730.
Copyright © 2006, South Florida Sun-Sentinel
