Weight Limit Debate Still Hot In Youth Football

Even after our original blog was posted addressing the weight limit debate in youth football, we are still seeing heavy traffic and commentary on this subject. Read the Blog Here. What are your thoughts?

Sports Organization Embezzlement Claims On The Rise

Sadler Sports & Recreation Insurance has studied its internal claims data under the Crime Policy from 1999 to 2010 and found that reported claims for its sports leagues have increased by 681% starting in 2009. Other blog postings have suggested that the bad economy is behind the sudden increase.

Now is the time for all sports organizations to implement risk management controls such as:

* requiring joint signature on checks

* requiring bank account and credit card reconciliation by someone not authorized to deposit or withdraw

  * conducting an annual audit of financial affairs and taking an equipment inventory

Source: Sadler Sports & Recreation Insurance

Safeguards Against Volunteer Theft In Sports Organizations

We have seen a trend of a growing number of theft occurrences against youth sports organizations by their trusted directors, officers, and other volunteers. Theft can take the form of embezzlement or the taking of equipment.  Evidence of such increasing rates of theft can be found by viewing the recent claims paid out by our insurance carriers as well as media accounts.

 The primary reasons for volunteer theft are dire financial circumstances often attributed to the poor economy and gambling addiction.

Youth sports organizations present the perfect opportunity for theft because most aren’t run as a true business as limited controls are in place. Furthermore, such organizations are often run by a small group of volunteers who have build up a great deal of trust among one another.

 To follow are some common sense controls that can help to limit volunteer embezzlement and theft of equipment:

 1. Require a countersignature on all checks or checks over a certain amount.

 2. Require bank statement reconciliation by someone who is not authorized to deposit or withdraw.

3. If you allow the use of credit or debit cards, make sure that the monthly statements are reviewed by someone who is not authorized to use the card.

4. Collect checks instead of cash during fundraisers.

5. Keep detailed inventory records of all equipment and require a log to be kept when equipment is assigned or checked out.

6. Create an audit committee to review all financial records, account statements, and to take an inventory of all equipment.

In addition to these safeguards, all sports organizations should carry a Crime Insurance policy that covers Employee Dishonesty, Forgery And Alteration, and Theft Of Money & Securities. Such policy should be specially endorsed to cover theft by employees and officers.