Posts Tagged parish collections

Bookkeeper denies theft as U.S. church struggles with money controls / Associated Press on Cruxnow.com

A bookkeeper has pleaded not guilty to charges that she stole nearly $200,000 from a Catholic church and school in Albert Lea, marking the latest incident suggesting to some observers a problem with lax financial controls in American Catholicism …

“The latest charge of shoddy financial controls comes against the backdrop of a 2006 study by Villanova University, which found that 85 percent of dioceses in the United States had experienced some form of embezzlement within the previous five years, mostly at the parish level …

“A retired U.S. Postal Service inspector and lifelong Catholic named Michael W. Ryan has examined money management in the Church in the United States. His estimate is that Catholic parishes in the the country may lose as much as $90 million annually due to inadequate controls over the collection plate.”

By Associated Press on Cruxnow.com — Click here to read the rest of this story.

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From the collection basket to the bank: Lax practices mean lost money / National Catholic Reporter

Sin and the Trinity.

“These are two elementary points of Catholic theology in the work of Michael W. Ryan, a retired U.S. Postal security specialist, who has spent more than two decades alerting church authorities to fixing accounting lapses in parish collections.

“First, sin.

“Ryan has focused since 1988 on what he calls the point ‘between the collection basket and the bank deposit.’ The resident of Milton, Mass., worked for the postal service in security, and knew from first-hand experience that, even with top-of-the-line procedures in place, there will be at least some postal employees tempted to embezzle.

“‘It only takes a second to scoop up a bunch of twenties,’ warns Ryan.

“There are parallels between the neighborhood post office and the local Catholic church. Both deal in cash payments. Both involve people with access to cash. But, says Ryan, ‘there is much more control over a postal clerk.’

“Ryan notes that there are people who will steal from the collection basket.”

By Peter Feuerherd, National Catholic Reporter — Click here to read the rest of this story. Michael Ryan is a Voice of the Faithful® trustee. Click here to read about VOTF’s extensive work on financial accountability and transparency in Catholic parishes and dioceses.

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Financial misconduct in parishes is all too common / Cruxnow.com

Behind the sensational headlines about a New York priest (Rev. Peter Miqueli) accused of pilfering church coffers to pay for an extravagant lifestyle – “Priest paid his male ‘sex master’ from collection plate: lawsuit,” as the New York Post put it — is the surprisingly common accusation of a trusted employee or volunteer stealing cash from a parish …

“Miqueli’s case is tailor made for tabloid coverage, but it’s hardly unique. This year alone, a number of high-profile embezzlement cases involving Catholic institutions have been made public. While the reporting to civil authorities has increased, resulting in more publicity about such cases, one thing hasn’t changed: Pastors are too trusting and unwilling to implement strict financial controls.”

By Michael O’Loughlin, Cruxnow.com — Click here to read the rest of this story.

Voice of the Faithful’s Financial Accountability & Transparency Working Group’s long-time efforts in this area at the diocese and parish levels can be reviewed at votf.org under Programs/Financial Accountability.

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Voice of the Faithful applauds Boston Archdiocese’s program for helping secure parish donations against theft

Catholic Church reform movement Voice of the Faithful applauds the Archdiocese of Boston’s parish “Offertory Collection Controls Initiative,” which helps make sure Sunday donations make it to the bank. The pilot project was initiated in Brockton, Mass., in July. “It’s been a long time coming – more than 25 years by my counting,” said VOTF member Michael Ryan.

Ryan has been advocating at least that long for more secure practices for parish collections. He is a retired federal law enforcement official with experience in conducting financial audits and security. He also wrote Nonfeasance: the Remarkable Failure of the Catholic Church to Protect Its Primary Source of Income, which was published in 2011.

The Church’s Canon Law requires that administrators ‘exercise vigilance so that the goods entrusted to their care are in no way lost or damaged.’ (Canon 1284 §2)

“Despite Canon Law, easy opportunities for theft exist throughout the Church’s parishes and dioceses,” Ryan says. “Considering there are more than 17,000 parishes and nearly 200 dioceses in the U.S., you can see the potential enormity of the problem. The U.S. Conference of Catholic Bishops could end that nearly Conference-wide vulnerability by simple decree (under provisions of Canon 455), but for reasons best known only to them, they have steadfastly refused to do so.”

Statistics back up Ryan’s concern. A 2007 Villanova University study estimated that 85% of responding dioceses discovered losses and thefts within the previous five years. Eleven percent of these reported losses of more than $500,000. A 2014 University of Cincinnati study found that 64 percent of small businesses, which parishes resemble in size and number of employees, say they experience employee theft, but only 16 percent of them report it. And National Catholic Reporter said in a 2012 story that, “according to the most modest estimates, at least $89 million donated each year by the people never gets to the intended Catholic cause or recipient due to theft.”

Ryan has long contended that parish practices as simple and low-cost as using tally sheets, multiple counters and secure collection bags could significantly cut down on the possibility of theft from parish collections. These are exactly the practices the Archdiocese of Boston is now promulgating with its “Offertory Collection Controls Initiative.”

The initiative is explained in its “Offertory Collection Controls: Responsible Stewardship” video (https://player.vimeo.com/video/133384564?badge=0), in which Cardinal Sean O’Malley, archbishop of Boston, said, “We want to make sure that the whole process is safe and transparent so that all the people’s donations will be properly cared for and banked.” The archdiocese plans to implement its initiative at all parishes during the 2016 fiscal year.

VOTF already counts the Boston archdiocese as among the most financially transparent dioceses in the country. Ryan, an active member of VOTF’s Financial Accountability & Transparency Working Group, said he is hopeful Pope Francis’ renewed emphasis on financial accountability and transparency will be fully accepted and embraced by the USCCB and its members.

VOTF’s Financial Accountability & Transparency Working Group’s efforts can be reviewed at votf.org under Programs/Financial Accountability.

Voice of the Faithful®: Voice of the Faithful® is a worldwide movement of faithful Roman Catholics working to support survivors of clergy sexual abuse, support priests of integrity and increase the laity’s role in the governance and guidance of the Church. More information is at www.votf.org.

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