I am the treasurer for a local youth sport organization and after auditing and reviewing records I found that aprox $8000 in registration funds were unaccounted for, pretty much missing. ($8000 of the $20,000 received was missing.) This person also handled other fundraising monies but I didn't even attempt to audit those records. (don't know if I really want to know at this point). This took place over a 2 month period.
I took it to the executive board who then took it to the individual who handled these funds. All registration was done in cash. The individual reviewed the records and said they don't know where it went. I have the receipt book that shows that the funds were paid and he collected the money. After a few weeks with no response I got together again with the board who again went to the person who had no answers. They asked me to draw up a promissory note allowing him to pay back the money to the organization. No fees or interst. He signed it and a payment schedule is set. Discipline issued was a suspension of the position on the board.
Of course they don't want to call it embezzlement but unaccounted funds. They think this person just wasn't organized and lost track of the money. The individual has been a board member for 3 years. Whereas, this is my first year on the board. I wanted to keep accurating accounting records by account and which is not something they previously had.
My question is: Is this how this should be handled or should I be concerned as the treasurer of the board. Is there anything else we need to do.
I would like to issue a statement to the members of the orginazation. I feel as a non profit organization we should have some type of due diligance and duty to report this misconduct. Would that be legal? I would use position titles and not actual names.
I appreciate any feeback.
Thoughts?
I took it to the executive board who then took it to the individual who handled these funds. All registration was done in cash. The individual reviewed the records and said they don't know where it went. I have the receipt book that shows that the funds were paid and he collected the money. After a few weeks with no response I got together again with the board who again went to the person who had no answers. They asked me to draw up a promissory note allowing him to pay back the money to the organization. No fees or interst. He signed it and a payment schedule is set. Discipline issued was a suspension of the position on the board.
Of course they don't want to call it embezzlement but unaccounted funds. They think this person just wasn't organized and lost track of the money. The individual has been a board member for 3 years. Whereas, this is my first year on the board. I wanted to keep accurating accounting records by account and which is not something they previously had.
My question is: Is this how this should be handled or should I be concerned as the treasurer of the board. Is there anything else we need to do.
I would like to issue a statement to the members of the orginazation. I feel as a non profit organization we should have some type of due diligance and duty to report this misconduct. Would that be legal? I would use position titles and not actual names.
I appreciate any feeback.
Thoughts?
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