Question

Luann Buell works as a teller for a local Credit Union. When she arrived at work on Thursday, the branch manager, Mike Stokey, asked her to get her cash drawer out early because the head teller, Jim Best, was conducting a surprise cash count for all the tellers. Luann’s drawer was $50 short and her reconciliation tape showed that she was in balance on Wednesday night. Jim asked Luann for an explanation and Luann immediately took $50 out of her wallet and handed it to him. Luann explained she needed the cash to buy prescriptions for her son and pay for groceries and intended to put the $50 back in her cash drawer on Friday, which is pay day. She also told Jim that this was the first time she had ever “borrowed” money from her cash drawer and that she would never do it again.

For your main discussion post, identify the ethical considerations of this case from both Luann’s (teller) and Jim’s (head teller) perspectives. What options does Jim have to address this problem? Assume Jim chooses to inform the branch manager, how should he approach the issue with his boss? Additionally, brainstorm at least four ideas to safeguard cash on hand at the credit union (petty cash, teller drawer cash, and vault cash) from employee theft and mismanagement.

Answer 1

Luann's (teller) act of taking $50 from cash drawer of redit Union was ethically incorrect in multiple aspects listed below:

• Being a teller does not give right to withdraw cash from cash drawer for pesonal use.
• Luann made a incorrect rconciliation tape showing that she was in balance on Wednesday night. This is absolutely incorrect and misrepresentation of facual data. Had the surprise check not taken place, nobody would have come to know of this withdrwal of cash for personal use.
• This was an incidence that was caught due to the surprise check. However, possibility of such pesonal withdrawals from cash drawers in past cannot br ruled out for amounts unknown.

From Jim's (head teller) point of view,

1. This incidence is indicative of loophole in cash management system of Credit Union.
2. JIm's action on this case will showcase Credit Union's tolerance to employee theft and mismanagement and set as an example to othe employees.
3. Jim not only needs to set a system to reprimand this behavior but also a system that leave no scope for such misuse of cash

Jim can report this incidence to branch manager Mike Stokey as is with a detailed surprise check report of all tellers alongwith the said shortage. The report should document the said shortage and written explanation from Luann duly signed by her. Jim can also report to the manager if any past records of such shortage if any found in past examation. Jim should be ready with some pointers to safegurad cash of Credit Union.

Ideas to safegurad cash of Credit Union from employee theft and mismanagement:

1. Increase frequency of surprise physical checks of cash drawers.
2. Lay down an improved standard opeating procedure with appropriate fines to employees in case of such misuse of cash. For example, employee in default can be charged twice the amount of shortage found as a deduction from his/her salary.
3. Employee's can be rotated within various roles designed in the organisation.
4. Two level cash verification can be introduced on a daily basis to bring in further assuarance of cash balances.