It has nothing to do with concrete blocks and mortar. Cranes and bulldozers are not involved, and it has no reference to the facility where you make your deposits or take out a loan.  The first time you encounter it, you may think you’re ahead of the game.  What it may all mean is the foundation for a scam to steal hard earned cash from the register.  Building a bank, also known as “padding the register” is part of a theft scheme and you may never know it without a keen sense and knowledge of how it’s done and the skills to do something about it.

At a big box home center this week my wife and I picked out base cabinets for our laundry room.  We needed two but there was only one in a box on the large shelf.  I was about to ask if there was another cabinet in stock but luckily I found a second one that had been a display model and was marked down 10%.  Yeah for us. 

I met with a potential client this past week.  It was a referral from a current client that knows I can help this business with their many in house “issues”.  The manager of the business said that he suspected an employee of stealing and perhaps bringing drugs into the workplace.  When I asked, “What makes you say that?”  He then related that the employee in question changes addresses, moving from friend to friend.  One of those former roommates told him that his employee frequently brought home unpaid merchandise for them all to share.  There were also unexplained cash shortages on the community cash register during the shifts the employee was working. 

As an industry we are facing the continuous rise of commodities that adversely affect our businesses.  The rising price in grains and feed affect the price of raising cows, pigs, and chickens increases price for milk, eggs and of course the meat and poultry.  Efficient use of these staples in our restaurants is essential in remaining competitive in the marketplace.  This translates into food cost.  We can’t afford to waste the food we sell either in the inefficiencies of converting raw product into sales– or theft. 

In these trying times, every penny added to the bottom line counts heavily towards profitability. We search in ways to cut costs and still give the customer the experience that will keep them satisfied and coming back. It is one of the reasons loss prevention is so important and yet so over looked. Profit and Loss statements are scrutinized and one very important element that can be a drain on profitability may be overlooked because it becomes so routine – banking fees.

Two weeks ago I wrote about a city employee in Monroe, LA who stole thousands of dollars from her employer while collecting cash payment for lodging and shelter rentals at a city facility (see "Financial Controls Somewhat Limited", Jan.11, 2011).  I mentioned the absence of financial accountability and audit processes as a key ingredient in the “theft triangle”.   Because of the lack of accountability, there was a perceived low risk of detection, which lead to motive for stealing the cash. 

 This article from Monroe, LA reports the theft by a city worker.  She worked at a city park venue where she collected the payments for lodging and shelter rentals since 2004.  When the payments were in cash, she stole it.  Her thefts totaled thousands of dollars.  She allegedly issued receipts, but did not turn in the cash to City Hall. 

The Shift Manager of the fast food restaurant sat in his car, under a shade tree in a parking lot. On the floor board are unused disposable deposit bags and a used deposit bag that had been sealed with last night’s closing deposit. The manager had sliced open the deposit bag and the passenger seat is littered with the contents - ones, fives, tens, twenties, and change. He will use one of the unused bags to make a new deposit. The manager counted the funds several times, his stress level mounting. The amount is not enough to match a deposit slip for a deposit dated two days ago. Two days ago? What is going on here? Why did he open a deposit bag today for funds to match a deposit ticket that is two days old? Do you know?