This week in my home state, a story broke of a band booster treasurer who embezzled nearly $34,000 from her organization. Over a period of twenty-one months, she issued herself unauthorized booster club checks and used the funds for her own personal benefit. The sad truth is that this is not an isolated incident. Booster club embezzlement is a crime that is widespread among organizations from coast to coast.
How Can a Booster Organization Insulate Itself from Embezzlement?
The best way to prevent theft and fraud is to make it difficult to commit theft and fraud. Sounds simple, doesn’t it? Well, as simple as it sounds, this is where many booster organizations fail. They do not build proper checks and balances into their operating procedures.
Transparency is the foundation of a booster organization’s financial integrity. Therefore, separate financial roles and reporting among two or more people. Auditors refer to this as separation of duties.
Here are five best practices to help booster organizations separate financial duties: