The One-Cashier Friday Shortage
The utility billing office of a suburban county processes about 240 counter payments on a typical day, averaging $18,500. Two cashiers normally work the counter: one receives cash and issues receipts; the other prepares the daily deposit and reconciles the cash drawer. On a Friday in July, one cashier calls in sick. The supervisor asks the remaining cashier to handle the counter alone and prepare the deposit because the bank courier arrives at 3:30 p.m. and the supervisor has a budget hearing. At 4:10 p.m., the cashier reports a $120 cash shortage. During reconciliation, a customer calls to say she paid $200 in cash for a water bill but her receipt shows $100. The cashier says the customer probably misread the receipt and notes that the shortage is small compared with the day's receipts. The supervisor is tempted to write off the $120 as an over/short item and correct the customer's account after the hearing. The county's cash-handling policy requires same-day resolution of material differences and prohibits one person from collecting and preparing the deposit, but the office has no written exception procedure.
1. What should the supervisor do immediately after the shortage and customer dispute are reported?
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Treat the matter as unresolved, not as an over/short write-off. Secure the cash, receipt copies, terminal records, and deposit slip; recount with a second person; pull the customer's payment record and any available video; compare receipt numbers and the deposit detail. Do not let the cashier leave with records or correct the account alone. Contact the customer, verify the $200 claim, and if the receipt is wrong, correct the account promptly. Because one person collected and prepared the deposit, the supervisor must assume either error or misappropriation is possible. Escalate to the finance officer or auditor under policy. Document the timeline and preserve evidence. Writing off $120 without investigation would destroy evidence and could conceal a larger problem. The customer's discrepancy and the cash shortage on the same day are correlated facts, not coincidences to dismiss.
2. Identify the control failures and design practical fixes for a two-person office.
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The failures are: no segregation when one cashier handles collection and deposit preparation; no documented exception procedure; supervisor absence without a backup; after-the-fact reconciliation; and no dual count. Practical fixes include cross-training a third person, even from another department, to prepare deposits; requiring dual custody or a supervisor count for deposits; using pre-numbered receipts and a daily receipt log; reconciling daily with two signatures; installing camera coverage; rotating duties; and creating a written exception form approved before solo handling. If a single person must handle cash, require same-day independent verification of the deposit by someone who does not collect. Perform surprise cash counts. The goal is not to accuse the cashier but to make theft or error detectable and to ensure the county can explain what happened.
3. How should the supervisor handle the customer and the cashier fairly while the investigation continues?
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The supervisor should tell the customer that the discrepancy is being reviewed, give a specific follow-up time, and correct the account if the payment is verified. Avoid suggesting the customer misread the receipt without checking. For the cashier, avoid a public accusation; obtain a written statement, review records, and follow personnel policy. If evidence points to a control breach rather than dishonesty, address it through training and discipline as appropriate. If evidence suggests misappropriation, escalate and preserve the cashier's rights. Fairness means neither writing off the shortage to avoid conflict nor assuming guilt because a shortage occurred. Document each step, because the county may need to defend its handling to the customer, the auditor, or an employment tribunal.