Preventing Cash Shortages

Monitor your site shortages	Monitoring shortages at each site will point out which gambling premises may have problems that require attention. An organization may also want to monitor its employees. If a site is experiencing excessive cash shortages, do not ignore the problem. Take action! Supervise the conduct of games. Review prize receipts for clear and complete information, a valid ID, and names and signatures of winners. Develop strong working relationships with gambling employees. Continually support employees by supervising them directly, reviewing procedures and changes, rewarding them for jobs well done, and providing additional oversight and training.
Review your internal controls	Are internal controls being followed? Is there enough separation of responsibilities in handling the receipts, so that the organization has checks and balances to verify the amounts deposited with the amounts reported? For good internal controls, the person who counts the cash, completes the deposit slip, and makes the deposit should not be the same person who is responsible for reporting that information on the Schedule B2. A seller may not complete the final audit of a game for reporting on the Schedule B2.
Limit access to gambling product and cash	Limit access to the gambling product and cash. For example, buy a safe for nightly security of the cash from closed games and games in play. Lock up all unplayed, in-play, and closed games. Inform sellers to secure the games when the games are left unattended, and get receipts when cash changes hands (for example, between lessor and gambling manager).
Check games in play	Designate an organization member, employee, or volunteer who is not a seller to select and spot check games in play. The person should: Count all the unsold tickets, redeemed winning tickets, and the cash drawer. Subtract the unsold ticket count from the total ticket count of the game to get the gross receipts. Subtract the redeemed winning ticket amount from the gross receipts amount to get the net receipts. Compare the net receipts to the cash on hand, less the starting cash bank. They should match. If a large variance in a game occurs, investigate. Review the LG861 Site Control/Tracking and Auditing of Paper Pull-Tab Game form. Determine who has been selling from the game since it was placed out for play or the last spot check was made. Interview sellers and remind them that cash shortages are not tolerated. Review prize receipts, as described below.

Additional strategies for when cash shortages persist

Change your internal controls	If cash shortages continue in spite of spot checks, establish stronger internal controls. To strengthen the organization’s internal controls, make each seller or group of sellers responsible for a separate game or games. This procedure helps to secure the game and can identify a specific person if shortages occur. Assign sellers their own paper pull-tab games to sell. Lock and secure the game. Allow no one other than the seller access to the game. Keep receipts in a locked bank bag in a safe when the seller is not working.
Audit games every shift	This is similar to spot checking. Ask each seller to audit the games at either the beginning or the end of the work shift. The seller should: count the cash drawer, unsold tickets, and redeemed winning tickets, and record the information on a control form and sign it. The next seller should audit the same game and sign the control form to confirm the accuracy of the previous shift. Suggestion: Someone other than the sellers should periodically compare the cash to the LG861 tracking form. This review ensures the accountability of the sellers.
Review your prize receipts	Look for clues that may indicate a problem. Does one person’s name continually appear on prize receipts for most of the major winners in a game? Is this person a regular customer? A friend or relative of the seller? An unfamiliar name? Are date and time or signature lines frequently left blank? Is the signature for the same player consistent? Is the information legible? Is the time that is listed on the prize receipt during business hours? Are the dates on the prize receipts prior to or after the dates the game was in play?
Make changes at the premises	If cash shortages continue, consider other options. Install a paper pull-tab dispensing device. If the space is leased, the lessor may provide the cash bank. Install security cameras and watch the tapes. Discontinue gambling at the site and notify the Gambling Control Board of the reason for terminating the lease.