You are currently subscribed to the PCUSANEWS listserv of the Presbyterian Church (U.S.A.).
=========================================================== This story located at: http://www.pcusa.org/pcnews/2006/06498.htm
06498 October 3, 2006
Investigation shows embezzlement totaled $132,837
Insurance, restitution will recoup money stolen by former treasurer
by Bill Lancaster
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.
The report of the General Assembly Council's (GAC) Audit Committee to the council Sept. 29 said that Golliher had admitted embezzling funds from the church. "The embezzlement of funds was discovered through the normal bank reconciliation process," according to the report.
The audit, which covered the period from October 2004 - shortly after Golliher was hired - through June, 2006, showed that $102,000 had been diverted into Golliher's personal bank account, $8,925 had been disbursed from bank accounts that could not be reconciled or documented, and $21,912 had been taken by misuse of a corporate credit card.
Golliher stole the $102,000 by first requesting authority to open a new bank account at J.P. Morgan Chase in October 2005. She then initiated checks payable to Chase and told the church she would hand-carry the checks to the bank.
However, Golliher deposited the checks in her personal account, according to the audit report and to Joey Bailey, deputy executive director for shared services and chief financial officer of the PC(USA).
Golliher covered $42,000 of these transactions with "inappropriate journal entries" in the general ledgers, according to the report.
Of the $21,912.16 taken through the credit card, $19,879 was obtained through cash advances and $2,033.16 through charges for her personal use.
The additional missing $8,925 was discovered through reconciliation of cash and gift cards used for the 217th General Assembly last June in Birmingham, AL. "Ms. Golliher was responsible for initiating controls to safeguard the funds and gift cards to ensure the assets of the church were not at risk for loss or misappropriation. Ms. Golliher did not develop appropriate controls and is considered to be responsible for $8,925.00," according to the report.
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."
The press release added that "All materials from the internal investigation have been shared with the local authorities in order to assist with their criminal investigation into the theft of church funds."
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.
Bill Lancaster is associate executive presbyter for mission for Foothills Presbytery.
=========================================================== You are currently subscribed to the PCUSANEWS listserv of the Presbyterian Church (U.S.A.).
To unsubscribe, send a blank message to
mailto:PCUSANEWS-unsubscribe-request@halak.pcusa.org.
To update your email address, send your old email address and your new one to mailto:PCUSANEWS-owner@halak.pcusa.org.
For questions or comments, send an email to mailto:PCUSANEWS-owner@halak.pcusa.org.
To learn more, visit http://www.pcusa.org/pcnews/
Presbyterian Church (U.S.A.) 100 Witherspoon Street Louisville, KY 40202 (888) 728-7228