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