Investigation shows embezzlement totaled $132,837

From the Presbyterian New Service: Investigation shows embezzlement totaled $132,837

LOUISVILLE — The total amount of funds embezzled by Judy Golliher, a former associate director of finance and accounting for the Presbyterian Church (U.S.A.) was $132,837, according to the report of an internal audit released last week. A preliminary investigation had shown $102,000 missing.

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A denominational press release stated that “The embezzlement was discovered on June 27, 2006 in the normal preparation of bank reconciliations by GAC staff. When confronted, Ms. Golliher admitted to embezzlement and her employment was terminated.”

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Mary Lynn Walters, Audit Committee chair, told the council that the committee will be working with the accounting firm of Crowe Chizek to review internal controls and provide training in fraud detection for staff, according to the press release.

"The loss is expected to have no impact on Presbyterian mission causes, due to insurance coverage and potential restitution,” according to the release. Bailey said in an interview that the PC(USA) would seek restitution from the bank.

I saw the full report on this episode as a Mission Support Services Committee member at the GAC meeting last week. As any of you who deal with such matters know, it is impossible to stop someone in a responsible position from embezzling money. The critical question is whether or not you have the mechanisms to detect it once it has happened. Often it can take months and years to uncover. However, the GAC staff caught the embezzlement through the routine monthly bank reconciliations just a few short months after it started. Over the past two years of service on the GAC, I have been routinely impressed with the thoroughness of the support services folks.