Ok, so you read about Segregation of Duties (SOD)from the AICPA. (see that post here).

My turn.

Imagine the one who enters invoices for payment and writes the check. Imagine further, this same person reconciles the bank account. The results COULD be disastrous. Yes, we should trust each other, but we must be accountable. (wrote about that here).

Enter the SOD principle. Simply stated, no one person should have control over any financial cycle. What this looks like for your church varies based upon the size of your staff. The fewer you have, the more creative you need to be to get others involved.

The SOD principle is the bedrock of control systems in your church that protects you – the CBA or Accountant, the Finance Secretary, the Bookkeeper, as well as the Staff. It protects the Pastor. It protects the Church. It’s a big deal.

Next to the Master Finance Document (see that post here), this document is next in importance as all other controls are based upon how your church executes the SOD principle.

We’ve all heard the embezzlement stories where someone defrauded their church of thousands. Chances are their controls were weak (or not being followed) in this area. A well thought out and executed SOD process is key to protecting your church.

In fact, the first two control documents to put together are the Finance Master and the SOD Grid for each Financial Process. Then, write the policies for each Financial Process.

In my next post, we’ll take a look at a sample SOD grid you could apply to your church.