It’s always a shock when you hear about it. A trusted volunteer, league administrator, or coach is stealing from the local youth sports league. Unfortunately, this is a reality and something that every parent and league administrator should be aware of. So what can we do? The repercussions of not catching this type of fraud ahead of time is dire. We have done our best to compile a list of best practices to protect Youth Sports against Embezzlement.
How to Protect Youth Sports Against Embezzlement?
How can fraud in youth sports and other extra-curricular organizations be prevented? While every organization operates differently and processes need to be customized to the organization, following are suggestions that are applicable to every organization.
Run Background Checks to Protect Youth Sports Against Embezzlement
Background checks are an incredibly important and useful tool to highlight any criminal convictions for previous offenders. Criminal histories, from financial crimes to assaults or even worse, are highlighted in background check reports. This is critical information for any youth sports organization who wants to keep its staff, volunteers and child participants safe.
Use an Electronic Payment System
The best way to keep tabs on the flow of money through your league is through an online payment system. Never, never, never allow coaches or administrators to collect money in-person. Advertise this to all of your vendors, coaches, administrators, and families.
An easy payment process to set up is PayPal. If you’re using a league management software for your website, chances are that this software has a payment processor as well.
Recognize the Behavioral Red Flags Demonstrated by Fraud Perpetrators
The most common red flags identified by respondents as warning signs displayed by the perpetrator before a fraud was detected were as follows:
- Living Beyond Means
- Financial Difficulties
- Unusually Close Association With a Vendor
- “Wheeler-Dealer” Attitude
- Control Issues; Unwillingness to Share Duties
- Divorce/Family Problems
- Irritability, Suspiciousness, or Defensiveness
- Addiction Problems
There are several things participants can require of youth sports groups to help eliminate the chance of financial and personal crimes.
- Establish a Board of Directors and Institute a “Closely Held Relationship” Rule
- Ask for Monthly Intake and Expenditure Reports and a Year-End Report
- Require Clean Record Keeping and Have an Oversight Committee
- Conduct Background Checks on Organizers, Coaches and Volunteers
The key takeaways from the tips above are a good system of checks and balances (internal controls) and transparency. By implementing even one of the tips above, you reduce the risk of a fraud happening to your organization. Implementing multiple tips exponentially reduces fraud risk.
In conclusion, preventing fraud from happening in any organization is not rocket science – it’s common sense and good business.
TeamSafe Screening | Youth Sports Background Checks in Westlake, OH
Today the majority of coaches and youth sports volunteers are required to undergo some form of background screening. The requirements for background screening vary from state to state however; there are recommendations for specific reports that will provide the necessary information you need to keep your athletes safe from predators and help you hire people you can trust.
TeamSafe Screening – Key Elements to Consider
- You can access reports with a one-click search selection from your computer 24/7.
- The results are accurate and if there is a negative result or any question regarding the report; TeamSafe will have the report confirmed by an experienced investigator.
- The pricing is competitive.
- There is an experienced staff available to answer your questions.
- TeamSafe is a company that stays current with regulatory changes.
- TeamSafe is FCRA compliant and provides all the necessary paperwork you need.
Click Here to Apply.