By Frank Newman on 11th March 2015
Unfortunately theft from clubs remains a significant problem. Today, somewhere, someone is stealing from a club. Those that don’t have good systems will become a victim sooner or later, just as those who leave the windows and doors to their house open will one day find their TV, and everything else, gone.
Clubs in particular need good systems because it’s a cash business. System audits are not done to get rid of managers or to catch them out on something. They are about working with the club manager and committee to prevent fraud and make it easy to identify when it does happen. System audits:
– Establish a clear money trail. You should be able to track the flow of every dollar that passes through the Club. I call it a money snail trail.
– Make sure things are done efficiently by using the latest technology.
– Make things more transparent. Every club has the gossips. Making things totally transparent takes oxygen from those who having nothing better to do than undermine the good work of others.
All clubs should have their management systems reviewed at least once every three years. That review will reveal any holes that can be exploited and reveal which systems are not being put into practice.
Committees are not doing their job if they are not regularly reviewing their systems. Club officials have a responsibility to protect club property. Good systems protect club cash.