Preventing theft of revenue

Preventing Theft of Revenue

Wednesday, April 12, 2023 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.


Specific operating procedures• 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 ofdesignated 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



• 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



• 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



• Do not give check signers access to petty cash

• Write all checks to specific company or person



• 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


Questions

CommentsWednesday, April 12, 2023 BAC-4131 Food and Beverage Management II: Prevention of Theft of Revenue Slide 32 /31

Documents

Preventing theft of revenue