Newspapers / Philanthropy journal of North … / May 1, 1994, edition 1 / Page 5
This page has errors
The date, title, or page description is wrong
This page has harmful content
This page contains sensitive or offensive material
May 1994 Philanthropy Journal of North Carolina Embezzle Continued from page 4 ing checks represented cash in an investment account that had been set up for MAP. The bookkeepers then gave the monthiy statements and canceied checks to the executive director, who filed them. Simmons says the money was accounted tor in the monthly finan cial statements as being in invest ments. “The financial statements we received didn’t specify the kind of investment account, hut we had always had [certificates of deposit] and most of us assumed that was where the money was invested,” he says, “We had never given permis sion for a change.” Simmons says he can see how the funds were lost, hut still finds it hard to heheve they were. “You migbt expect something like this from a board that wasn’t getting monthly statements or where the treasurer wasn’t attending meet ings,” he says. “But the statements came out like clockwork, we looked at actual expenses to those budget ed, and we sometimes generated questions.” An active and involved board is one of the best protections against embezzlement, says Terry Simon with KPMG Peat Marwick in Greensboro. He is the partner in charge of the higher education and nonprofit practice in the Garolinas. “Embezzlers hide what they’re doing by holding back information,” he says. “So he on the lookout for late or untimely reporting or evasive answers. See the budget before the year begins and the budget-to-actual during the year and imderstand why discrepancies exist. Require board approval for large or unusual trans actions. “When an organization is very small, a clear segregation of duties can be difficult, so it’s important that the executive director be involved and provide oversi^t,” he says. “If all this isn’t done, there’s potential for a lot of trouble.” Sometimes, Simon says, a board may choose to set up a separate audit committee to provide this kind of financial oversi^t. Quillen agrees that board involve ment is essential to ensure the impeccable credentials of the agency and to keep its reputation uneompro- mised. “If you don’t ask questions about things you don’t understand, you’re guilty of mismanagement,” he says. Quillen of the United Way says that a board should get reports on a regular basis that detail how the financial controls are being put into effect. The treasurer should explain at least once a year how the monthly reconciliations are conducted. Checks should he reviewed regularly to make sure the required signatoes are there. “The bank won’t do it for you,” he says. Says Simon, “These actions pro tect the organization from bankrupt cy and deficits, as well as from embezzlement. Both cause your organization to lose its reputation and the trust of its contributors.” So what happened at MAP? “We thought we had a good sys tem, hut it obviously had holes in it,” Simmons says. “I’ve never served on a volunteer board where the people weren’t friends or at least liked the people they were working together with toward a common god. Stephen was a longtime supporter, and that gave me a feehng of security. I guess the lesson is that no matter how trustworthy someone is, you’ve got to double-check everyone.” In mid-February, Charlotte’s non profit community received news of another incident in their sector when John CroweU, at the time executive director of Parents for Drug Free Youth, was arrested for allegedly embezzling at least $25,000 from the group between January 1991 and August 1993. The two incidents serve as a les son to board members of the impor tance of fulfilling their responsibili ties. A key issue is what members should do if they suspect that there has been improper financial activity on the part of a volunteer or staff member. First, advises the United Way’s Quillen, ask enough questions in an open forum to make sure that it is not a systemic problem. 'Then, talk privately with the president — or another top official if you suspect the president — about your suspicions. 'Then, you may want to call in an out side auditor to clarify the situation. If illegal activity may be involved, you have the option of contacting the police. Groups sometimes may choose not to do so and instead nego tiate to get the money returned. Others, however, feel it is more important to set an example and as a result do go to the authorities. However, it is up to the district attor ney’s office to decide whether to prosecute on criminal charges. It is up to the board to decide whether to file a civil suit against the person or persons. Boards must be prepared to respond quickly any time anyone makes an accusation about mishan dling of funds. “All the media has to report is that someone made the accusation, and that can he devastating for an agency,” Quillen says. “You must immediately investigate every com plaint, no matter how seemin^y siHy or small and assure your principal funders that money is being handled responsibly. “Good accounting practices and controls can help you through this, but you must be prepared to investi gate immediately and release your findings,” he says. “Otherwise, the situation can kill your reputation.” According to MAP board member Mary Hopper, the organization was open in all its communications about the missing funds, and actively and directly contacted aU contributors. As a result, she says, in its annual solicitation to individual supporters in late 1993 and early 1994, MAP raised more than twice the amount raised the previous year. Duck Continued from page 4 is among those who are trying des perately to reverse that trend. A new book, “Carteret Waterfowl Heritage,” is a manifestation of Dudley’s dream. Part of the proceeds are earmarked for the Core Sound Waterfowl Museum at Harker’s Island. “Every area wants its own his toric identity,” said Dudley, a Morehead City dentist who grew up on the White Oak River that forms the Carteret-Onslow county border. “All the development of historic preservation so far has been in other parts of Carteret County. It was time for something to come Down East. “It’s a natural outgrowth of my interest in waterfowl, decoys, and interest in old photographs.” Dudley sees a recent surge in interest in decoy carving and collect ing as the foundation of a campaign to preserve Down East heritage. He has some attentive comrades in the Harker’s Island area, where for six years a December decoy festival has attracted visitors who previously wouldn’t have ventimed there outside the summer season. The Down East car vers had studied the exhibits and festivals of carvers in the Tide water Virginia area. That led to the forma tion of a carvers’ guild, and the Harker’s festi val, which brought in 7,500 people in Decem ber. The waterfowl muse um is being planned for The Point, a piece of land with a breathtaking view of Core Sound and the dis tant Cape Lookout. Its 16 acres, donated by the U.S. Park Service, are expected to include tr^s and a waterfowl habitat. The museum al ready is open in tem porary quarters in what was a doctor’s office. It will take $1.2 million to build the permanent quarters, and $200,000 a year to run it. The book, pub lished last year, covers the hunt clubs and guides as well as the carvers. It includes 32 pages of color plates on decoys, hunt ing equipment and waterfowl postage stamps, and covers the exploits of a couple of non-native enthusiasts who visited the area — Franklin D. Roosevelt and Babe Ruth. So far, about 800 people — with a passion for preservation — have donated more than $200,000. For more information or to join the museum, or purchase the book, call (919) 728-1500, or write Core Sound Waterfowl Museum, P.O. Box 556, Harker’s Island, N.C. 28531. This is what a dollar bill looks Kke after a fund raising campaign. A campaign that’s inefficient can rob your project for administration costs. Fund-Master 7.0 fund raising software can help you coordinate your fund raising activities by letting you reference prospects, donors, gifts, pledges, mailing fi-e- quency and other information. It also lets you generate reports and personalized letters. So things get done more efficiendy. Find out more about Fund-Master 7.0. Call 1-800-950-2999 or fix us at 317- 849-5280. Ask fi^r a firee demonstration disk. Both are free. More of the money you raise can go to whatever you’re raising it for. And not to administration. Master Software Corporation, 5975 Castle Creek Parkway, North Drive, Suite 300, IndianapoHs, Indiana 46250. Master Software Corporation Name: Organization:. Address: City: State: Zip:. Phone: My computer takes □ 31/2" □ 51/4" disks. I’m interested in □ Single User □ Multi User system. (16) J
May 1, 1994, edition 1
5
Click "Submit" to request a review of this page. NCDHC staff will check .
0 / 75