http://www.timesunion.com/AspStories/story.asp?storyID=905547
Summary
This article criticizes the failing money-tracking measures of the trash bag sales of the Public Works Department in Saratoga Springs. The accounts clerk Joy Karam was arrested for stealing nearly $45,000 from the operation. The department was slow to remit sales receipts to the Finance Department, and did not track the number of bags it had for sale after the City Council enacted new control measures for the department in December 2008. Joy Karam later pleaded guilty and returned the money and was sentenced to five years' probation.
Connection
It is amazing that a government department fails to do its cash control. All businesses, especially retail stores should have strict policies to deal with everyday cash income. In the accounting book, the methods are little bit too old. Except for supermarkets, most of the retail stores are using point-of-sale terminals which save them a lot of works. Even that, businesses should do a sales summary on daily bases. The other big problem is spending. Some businesses don't even notice that there are short on cash until the end of the month. As accountants, they should check their bank accounts on a weekly or even a daily bases.
Reflection
I worked on an accounting firm last week. Most of its customers are small businesses or individuals who have lots of financial activities. There is a company that does bank reconciliation statement twice a year. I feel sorry for the owner. He might not know that his business is in serious trouble since last September. They should be more responsible as businesses owners, especially when their businesses are based on cash transactions.