Despite fostering a unique environment and healthy business practices, every type of business has inherent dangers. Anywhere that hires employees must face the threat of employee theft, and your Lodge is no different. Mitigating this risk, however, can be a relatively easy process if you examine common employee theft occurrences and prepare accordingly.
Employee theft incidents to prepare against
While you may trust all Lodge members and employees, employee theft does occur. Often, employees can successfully steal money from their employer by going after small amounts over a long period of time. Whenever cash is involved, the strength of your controls weaken further.
How you can defend your Lodge against employee theft
To combat employee theft and member theft, try the following tactics:
- Consider using tests and software marketed under the label “profile analysis” or “personality assessment” when hiring employees.
- Maintain regular audits. On top of an annually scheduled board audit, consider hiring a third party financial professional as well.
- Require two signatures on checks. This prevents anyone from tampering with the check and ensures the correct party receives it.
- Consider how frequently you make bank deposits. More significant sums may mean a trip to the bank every other day or daily.
- Reconcile your bank account quarterly, if not monthly. Assign this task to an individual who is not also responsible for deposits, withdrawals or signing checks.
Implementing multiple tips from the list above and executing them perfectly will not always guarantee a smooth road ahead. Whether money is lost to an over-night tragedy or year-long operations, you want to be able to get back to business with as little stress as possible.
Ensure you can defend your Lodge with the proper insurance coverage. Look at your options for Employment Dishonesty (Fidelity) coverage in your insurance policy. This coverage ensure your Lodge can recover from a variety of losses such as fraudulent funds transfer, shoplifting or embezzlement.