Preventing theft of revenue

Preventing Theft of Revenue

Monday, October 29, 2012 BAC-4131 Food and Beverage Management II: Prevention of Theft of Revenue Slide 1 /31

Recap of Revenue Control
• What is the server banking system.
• What is the cashier banking system.
• What is Standard revenue and
differentiate it from the Actual revenue.
• What are reports generated through
the Micros POS.
• What are the various procedures used
in Micros POS.

Scope
• Thefts by Bartenders.
• Theft by misuse of beverage products.
• Thefts by cashiers.
• Prevention methods.
• Employee thefts from guests.
• Control of Cash after Collection.
• Employing other revenue control tactics.


Bartender Theft—Cash
Register
• No ring sales
• Under-ringing
• Bunched sales
• Substituting bottle sales for drink sales
• Misusing guest checks


Bartender Theft—Cash
Register
• Substituting stolen bank checks or credit
card vouchers
• Mixing revenue with tips
• Borrowing from the register
• Stealing from other bartenders


Control Procedures for handling
Cash


Specific operating procedures
• The cash drawer is to be kept closed
when not in use.
• The bartenders tip jar at no time will be
close to the POS.
• Only one bartender shall have access to
one POS ownership of the machine
should be maintained.


• Bills under specific denomination should
be under the tray and bills received from
the guest should be in front of him till the
transaction is concluded.
• The revenue collected information should
not be in any case be accessible to the
bar tender or cashier.
• Each server should have separate access
to the system.

• Each sale must be rung in proper
sequence and without bunching or
totaling.
• Each POS operator should have a printed
copy of the procedures in the use of
equipment.


• Equipment should be switched off and
emptied by its roller bearing drawers to
avoid damage.
• Voids, Over rings should be reported
immediately.


• Detail tapes should be kept in stock and in
sufficient quantity.
• The audits should be frequent and at
random.
• Managers should monitor the operation
frequently as routine.


• Financial information should be studied
on a random basis.
• Bartenders should not be allowed to
accept:
• IOU’s, PDC’s, or any co-laterals.
• Have minimum personnel accessing
financial information.


• All checks should be accepted with
verification.
• Draw sales data at the end of any meal
period and keep record.
• Internal revenue should be recorded
immediately.


• Bell alarms should be disregarded.
• The equipment should be located in a
central area convenient to guests and in
view of the management.
• Equipment should be locked if the
operator is not present at the machine.


Bartender Theft—Beverage
Products
• Under pouring drinks
• Diluting liquor
• Substituting lower-quality liquor for call
brands
• Pouring drinks from private bottles
• Misrepresenting sales as spilled,
complimentary, or returned


Bartender Theft—Beverage
Products
• Collusion with beverage servers
• Collusion with food production employees
• Pouring free drinks


Server Theft-Cash
• Reusing guest checks
• Understating, deleting, overstating totals
• Falsely claiming lost checks or guest
walkouts
• Collecting revenue for a beverage charge
and stealing the money.


Server Theft
• Lying about a dissatisfied guest
• Pocketing revenue from unrecorded food
or beverages.


Guest Theft
• Taking advantage of server errors
• Walking out before paying the bill
• Disclaiming transfer charges
• Theft of property
• Passing worthless checks


Guest Theft
• Using fraudulent credit cards
• Passing counterfeit currency
• Short-changing cash-handling employees


Accepting Checks
• Maintain list of unacceptable personal and
business checks
• Consider check approval services
• Require guests to present identification
• Accept checks only for the amount of the bill
• Refuse postdated or two-party checks


Accepting Checks
• Inspect checks for legibility, accuracy, and
signs of tampering
• Do not accept checks marked “For
Deposit Only”
• Have guests sign checks in presence of
designated staff
• Mark checks “For Deposit Only” upon
acceptance

Approving Credit Card
Payments
• Complete all required authorization
procedures
• Follow credit card imprinter instructions
• Clearly transfer card numbers onto voucher
• Have guests sign vouchers and guest
checks
• Do not make loans on credit cards


Preventing Theft of Bank
Deposit Funds
• Compare deposit amounts with daily income
records
• Deposit “other income” in form of check
• Separate deposits for nonrecurring transactions
• Do not allow person opening mail or preparing
the deposit to deposit funds
• Require employees to be bonded


Deposit Funds
• Monitor adherence to proper procedures
• Mark checks “For Deposit Only” upon
receipt
• Return checks marked “NSF” to bank for
collection
• Send “account closed” checks to
collection agency


Deposit Funds
• Change safe combination periodically
• Require uninterrupted vacations for cash
handlers


Preventing Theft When Bills
Are Paid
• Pay bills by check
• Compare purchase order, invoice,
receiving report
• Develop check-issuing control procedures
• Have check signer mail check


Are Paid
• Do not give check signers access to petty
cash
• Write all checks to specific company or
person


Are Paid
• Mark invoices “paid” after processing
• Investigate outstanding checks
• Arrange returned checks sequentially
• Reconcile bank statements
• Establish petty cash control procedures


Bookkeeper Theft
• Altering sales records
• Removing cash from petty cash fund
• Recording lower charges than billed
• Showing higher than actual discounts
• Falsely claiming “NSF” or “account
closed”
• Preparing checks payable to oneself
• Manipulating statement reconciliations

Bookkeeper Theft
• Overstating expenses
• Overpaying a supplier’s invoice
• Resubmitting previously paid invoices
• Setting up a “dummy” company
• Padding the payroll
• Adding overtime
• Converting unclaimed payroll checks


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