| Recently, I had to fire an employee who had | | | | required for check signatures. |
| stolen money from our office. She wasn't caught | | | | 3. Prohibit pre-signed checks and signature stamps |
| in the act, and I wouldn't have missed the money. | | | | - At the very least, every time you write a |
| I only found out because she had a guilty | | | | check, know exactly what you are paying for. |
| conscience. She had overspent her bank account | | | | 4. Enforce job rotation and vacation policies - It is |
| during Christmas, and had some personal financial | | | | suggested that employees take at least five |
| problems. When I found out and offered to | | | | consecutive days off for vacation; having |
| advance her a small loan on her salary-a bad idea | | | | someone else who can step in to do their job is |
| which I rarely do-she broke down and admitted | | | | good in case of emergencies, and a fresh pair of |
| to the theft. I appreciated her honesty, but had | | | | eyes can usually spot any wrongdoing during |
| to fire her immediately. | | | | someone's absence. |
| According to an article in the American Academy | | | | 5. Bonding employees - Employee bonds are |
| of Family Physicians newsletter, "a recent study | | | | insurance policies that reimburse you for your loss |
| of community health clinics found that more than | | | | if the employee commits fraud or embezzlement. |
| 40 percent had experienced some type of | | | | Bonding also serves as a deterrent to financial |
| financial crime during the previous five years." Not | | | | crime because bonding companies prosecute |
| only that, this was supposedly underestimating the | | | | perpetrators. |
| problem, as it is frequently an unreported crime. | | | | 6. Issue receipts for cash collected - In this era of |
| Fortunately, the article had six clear steps to help | | | | frequent co-pays, cash can accumulate quickly at |
| prevent embezzlement: | | | | a practice. Whether you use an automated |
| 1. Check candidates' references and job histories - | | | | receipt system or an old fashioned booklet with |
| Supposedly, many embezzlers are repeat | | | | carbon copies, make sure receipts noting the |
| offenders, so a thorough vetting of all applicants is | | | | date, amount received and the patient's name are |
| suggested; if you haven't got the HR department, | | | | scrupulously kept. |
| you can always outsource this step. | | | | I found these steps both easy to implement, and |
| 2. Review individual expenses - It's smart to have | | | | very effective. Making each employee involved in |
| one person order supplies, another to verify | | | | the process accountable for their co-workers, as |
| receipt, and a third to sign the checks for | | | | well as for themselves, left me feeling more |
| payment; also occasionally spot-check expenses | | | | confident that this problem won't occur in the |
| to be certain they are legitimate; for a larger | | | | future. |
| practice it even makes sense to have two people | | | | |