464 TM12

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Chapter 12 Preventing Theft of Revenue Planning and Control for Food and Beverage Operations Sixth Edition (464TXT or 464CIN)

Competencies forPreventing Theft of Revenue: 

Competencies for Preventing Theft of Revenue Describe some of the ways bartenders can steal, and identify precautions managers can take to reduce this kind of theft. Explain how shopper services work and why food and beverage operations use them. Describe some of the ways food and beverage servers and other staff can steal, and identify precautions managers can take to reduce this kind of theft. (continued)

Competencies forPreventing Theft of Revenue: 

Competencies for Preventing Theft of Revenue Describe some of the ways guests can steal, and identify precautions food and beverage managers can take to reduce this kind of theft. Describe cash control procedures appropriate for food and beverage operations. (continued)

Bartender Theft—Cash Register: 

Bartender Theft—Cash Register “No ring” sales Underringing Bunched sales Substituting bottle sales for drink sales Misusing guest checks Substituting stolen bank checks or credit card vouchers Mixing revenue with tips “Borrowing” from the register Stealing from other bartenders

Bartender Theft—Beverage Products: 

Bartender Theft—Beverage Products Underpouring drinks Diluting liquor Substituting lower-quality liquor for call brands Pouring drinks from private bottles Misrepresenting sales as spilled, complimentary, or returned Collusion with beverage servers Collusion with food production employees Pouring free drinks

Server Theft: 

Server Theft Reusing guest checks Understating, deleting, overstating totals Falsely claiming lost checks or guest walkouts Collecting revenue for a beverage charge and stealing the money Lying about a dissatisfied guest Pocketing revenue from unrecorded food or beverages

Guest Theft: 

Guest Theft Taking advantage of server errors Walking out before paying the bill Disclaiming transfer charges Theft of property Passing worthless checks Using fraudulent credit cards Passing counterfeit currency Short-changing cash-handling employees

Accepting Checks: 

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. (continued)

Accepting 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. (continued)

Approving Credit Card Payments: 

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: 

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. (continued)

Preventing Theft of Bank Deposit Funds: 

Preventing Theft of Bank 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. Change safe combination periodically. Require uninterrupted vacations for cash handlers. (continued)

Preventing Theft when Bills Are Paid: 

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. (continued)

Preventing Theft when Bills Are Paid: 

Preventing Theft when Bills Are Paid Mark invoices “paid” after processing. Investigate outstanding checks. Arrange returned checks sequentially. Reconcile bank statements. Establish petty cash control procedures. (continued)

Bookkeeper Theft: 

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 (continued)

Bookkeeper Theft: 

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 (continued)