By Roy L. Wesley
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A burglary contract does not cover robbery; and a robbery contract will not cover burglary, and neither policy will cover losses resulting from the felonious taking of property where there has been no violence or threat of violence. A theft or larceny policy would be required to obtain coverage for these types of losses. Used by permission of the publisher from The Protection of Assets Manual. Copyright 1985. The Merritt Company, Santa Monica, California 90406. Financial Considerations 39 What Time Period Is Covered?
H o w is anyone to know? That is the question. How and why does this happen? Unfortunately, many employees try to beat the system if they can. The reasons are numerous: the desire for more time off; dissatisfaction with the work, with company policies, or the pay scale. Payroll manipulation takes place when 1. 2. 3. 4. one employee punches in or out for another employee; an employee in the payroll department changes hours worked; employees falsify premium overtime hours to receive higher weekly paychecks; and someone in the payroll department creates p h a n t o m employees and pays them on a regular basis with checks he signs.
If these excesses continue unabated, there will be no profits. Expense reports should be submitted as soon as possible after trips. All money must be returned or accounted for. Employees should not be allowed to undertake subsequent trips without having shown proper accountability. Obviously there are exceptions to rules, especially with regard to traveling salespeople. However, some attempt must be made to hold these individuals accountable and their accounts should be scrutinized closely. CHECK-SIGNING DEVICES As an organization increases in size, the need for automation becomes more acute.
A Guide to Internal Loss Prevention by Roy L. Wesley