Prevent This From Happening to YOU!
State audit revealed that more than $1.7M in cash that was paid to the city of Hartshorne for utility payments went missing from July 2009 to July 2016. The audit stated that the former city treasurer did not make any deposits of the cash she received for the utility payments during this time.
Also discovered during the audit, was the misuse of the city’s credit card. Allegedly, the former Hartshorne city clerk purchased more than $80,000 in personal items or services as well as misappropriated over $18,000 in court fines.
Prevent This From Happening to YOU!
Supervise employees closely when they are working with cash. Studies show that when supervision is lax, theft and fraud rates go up. Be sure to have more than one person handling the cash. Rotate two or three employees in those positions.
Be sure to control cash receipts. Use serially pre-numbered receipt slips and conduct weekly audits on all cash transactions. Have the receipts balanced by someone other than the person receiving the cash.
Get a lock box. By having customer payments sent directly to a bank lock box, cash doesn’t pass through employee hands and employees don’t have the opportunity to steal it.
When issuing corporate credit cards, make sure to set expectations at the start of what is expected of employees when it comes to card usage. Establish a policy that vividly explains the responsibility of the card holder, the types of expenses for which the cards may be used and the type of documents (detailed) one should submit for each expense.
Make Sure Your Clients Take a Proactive Approach To Protecting Their Business Should a Loss Occur
Make sure your clients have crime insurance. Take the steps to ensure that your clients are covered by calling Berkley Crime.