Not too long ago, General Liability claims for injury were our most common claims. Now… embezzlement claims have taken the lead!
While there may be numerous reasons for this shift, PTA, PTO and Booster Clubs need to make it a point to both prepare for and protect themselves from embezzlement.
Here are the top five actions you can take to help protect your PTA, PTO or Booster Club from embezzlement:
1. Remember the power of TWO
When there is only one person involved with your PTA, PTO or Booster Club’s money, it can be easy to lose track of funds and even be tempting for this person to steal. This is why we say to remember the power of two! Two people should always count the money and sign the receipts verifying the amount. Two signatures should also be required on all checks. Speaking of check, by the way, never sign a blank check or a check made out to “cash.”
2. Get familiar with your bank
One mistake parents can make is to take their organizations funds home with them. When PTA, PTO or Booster Club projects are on-going, it can be even more tempting to bring the money home with you because it’s just more convenient. Doing this, however, is a bad idea. In order to help protect yourself and your organization, never take money belonging to the Organization home. Instead, deposit money into the bank daily.
3. Checks are the way to go
To help keep track of your organization’s money, it is best to pay all bills by check instead of cash. And as convenient as debit and credit cards are, checks are still a better option. AVOID debit or credit card use.
4. Bring in a third person
Having someone outside of your organization help review and sign bank statements on a regular basis will help keep your organizations funds on track throughout the year. Have a non-signer physically receive, review and sign the bank statements monthly. In addition to this, conduct an annual audit/financial review of the books. Doing this will help protect you and your organization and will quickly bring things to light when numbers aren’t matching up.
5. Purchase our Embezzlement Insurance
Although there may be various safeguards set up to protect your funds, there is still a large risk of someone embezzling your money. Embezzlement Insurance is set up to protect your money and other cash equivalents against embezzlement, robbery, and theft.