#106 CHECKLISTS * ( revised 6/1) security and theft

Checklist
Security and theft prevention

It is our responsibility, above all, to provide the equipment, a facility, and operating procedures for a secure environment for our customers, employees and vendors. The following is a checklist we follow to insure security and to avoid company theft.

Do you have firm store hours?


Yes, we do not open the doors to green garden gates until the selected time and we close the gates on the selected time. We move customers politely out of the store when the store officially closes.

Opening the store based on who is knocking on the door is a bad idea. Employees need time to prepare for the day and get ready to put their best foot forward. Letting people in early disrupts that time for mental preparation. It is also a dangerous security issue when the store is not fully staffed. Conversely, insisting that employees hang around for the last customer to wander around the flowers past closing time is just awful and also dangerous from a position of security. Stick with your published hours!

What is your method for securing the gates and doors and windows?

We have both automatic and manual gates. The automatic gates close and lock with the automatic mechanisms. The manual gates are locked by hand with a padlock. We have installed good hardware to do this. We do not want to use chains at all in locking our gates. All the doors have keyed bolt locks and twist locks from the inside. There are no locks on the handles. Each section leader is assigned the task of securing the gates, doors, and windows in their own area. A follow-up check is made by the store manager or floor manager at the time of closing.

Who has the keys to the gates and doors of the store?

The manager has the complete set of locks for the building and the grounds. Another complete set is given to each one of the four partners of green garden gates. The manager may designate the floor manager to have a complete set.

We see no reason to have a bunch of employees with keys, since the manager or floor manager is on the premises at all times.


Are the keys common to all locks?

Yes, we have made all the keys common to all the gates and doors, with the exception of the manager’s private residence. We have purchased a set of additional cores and common key padlocks for these locks on our doors and gates.

In the event that all the locks are to be change immediately. That change can be done easily by the manager or floor manager.

Are any extra keys and locks stored in a secure location?

Yes. The extra common lock cores, keys, and padlocks are kept in that manager’s private floor safe.

Who is allowed to enter the store before and after business hours?

There are employees who, at times, will have to have access to the store at odd hours. For example, it may be necessary to accept a late load of product. This can be done with permission of the manager or floor manager. However, no keys will be given to the employee for this purpose. The manager or floor manager will unlock the gates or doors and be present to secure the gates and doors when the task is completed.

Do you have an alarm system?

Yes, we have an alarm system for the store, using both motion and beams. An audible alarm sounds and notifies the manager by telephone or text, as well as the security company. They communicate with each other during the incident as to a plan of action in case of a possible break in.

Who has codes to the alarm?

The manager and floor manager. The codes are also given to one of the four partners of green garden gates charged with overall security responsibility for the stores.

Keys and alarm codes can be difficult for owners when too many people have access to them. We just keep it simple and deny anyone access to green garden gates unless a manager or floor manager is present

Do you have security cameras?

Yes, we have high resolution cameras fixed on the cashier areas, the entrance and exit doors, the safe areas, and the vehicle exit areas. The images are backed up and store for a period of thirty days on the equipment and another thirty days in the server of the local security camera company that services the store. The manager or floor manager and one of the four partners have the access codes to view the real time or history of the cameras.

We use cameras sparingly. They make the employees just plain uncomfortable if they are constantly monitored. The employees must be assured that a manager is not just constantly watching them for violations. That action breeds discontent.

Do you have a safe?

Yes, we have three safes. We have two small round floor safes located near the manager’s day office in the blockhouse. One safe is to store deposits, large amounts of money captured during the sales day and petty cash. The other floor safe is for the manager’s use for private items such as keys, alarm combinations or highly sensitive material. We also have a large combination “gun safe” located also in the first floor of the blockhouse for the storage of cash register tills and extra change.

Gun safes look so darned secure but they are easy to break. Just knock it over and take a skill saw and a carbide blade and saw a hole in the back. Only store change in the gun safe or you will be surprised when you walk in one morning! When installing a floor safe, lace heavily into the concrete around the canister, lots of re-bar so the safe cracker will have to lift up half the concrete floor to get it out.

Where is the money stored?

The tills boxes are stored in the gun safe, along with extra coinage. The paper money for the tills are bundled and stored in the floor safe and removed the next morning to place in the tills for the business of that day.

I would suggest that you do not buy out the bank in change. Try to keep minimum amounts in the gun safe

"I once asked an employee to go to the bank and get a 100 dollars worth of singles. Several hours later she returned with some other employees packing in these big canvas bank sacks. She thought I meant a hundred dollars worth of pennies!"


Who has access to the money in the safes?

The manager or floor manager opens the safe and provides the stored paper currency for the cashier to stock the tills. If there is a reason to store large amounts of money in the floor safes gathered from sales during the day, the manager or floor manager opens the safes and secures that money.

Make the rounds to the tills several times on a busy day to empty the extra cash.

Who has the safe combinations?

The manager and floor manager as well one of the four partners of green garden gates

Who has access to petty cash?

Petty cash is stored in the store floor safe. The manager or floor manager have access to this safe and are responsible for the balance of the petty cash.

It is so easy to hand out petty cash and neglect to account for it. Audit the petty cash often and insure that receipts justify the petty cash disbursement. Theft can occur so easily with petty cash

Who can sign checks and withdraw savings?

The manager can sign checks to a value amount up to 600.00. Any amount larger has to be co-signed by the manager and the professional accountant in the community that has been designated by green garden gates. There are no savings accounts for green garden gates that are accessible to the manager. All draws on any savings accounts are done by approval from one of the four partners assigned to that task.

Who physically deposits the money?

Only the manager or floor manager.


Do you have a night deposit process?

Yes, we use the night deposit all the time. We don’t want cash and deposits around overnight. Night deposits are the responsibility of the manager or her assistant.

For the protection of our employees who night deposit, take a look at the physical night deposit area of the bank. Is it lighted or dark? Is it in a remote location or near traffic and people? Is the employee able to deposit easily from the vehicle? Is the deposit drop near the store or does the employee have to drive a long distance? All of these factors can spell real danger for the employee

When are the night deposits made? Is the night deposit area safe and secure?

They are made at random times during the day and evening to a well lighted deposit drop

An older woman, an owner of a garden store for many years, would always do the deposits after she left work that evening, nearly exactly the same time every day. She would put the bag ( a bright red deposit bag, by the way) into the same outer shopping bag walk out of her store alone in the dark to her car that was parked a long distance from the store. She would drive a long distance to the bank deposit, get out of the car and walk over the deposit bin, fumble with her keys and then drop the bag into the bin. That whole description spells disaster or death for that woman some day

Deposit at different times
Do not walk out of the store alone
Be sure the walking area to the vehicle is well lit
Change up the way the bag is hidden
Drive up and deposit. Never get out of the vehicle
Drive away if something looks suspicious
Have the deposit key ready when you approach the bin


Who counts and balances the daily tills and prepares the deposits?

It is the job of the designated head cashier to count and ready the drawers as well as balance the drawers. The manager or store manager is responsible for auditing the money, balancing the daily sales and signing off on the accuracy of the balancing and counting. The manager is responsible for preparing the deposits, with the help of the head cashier. All handling of money is done behind a locked door with limited or no access.

A word about balancing and preparing the tills. Some owners insist that the tills are to be balanced and the next days prepared at the end of the day. This is the wrong time to do this when the employee is tired from a long day. Close out the day sometime in the afternoon to allow balancing and preparing while the employee is fresh and alert. Extra till boxes can be purchased to accommodate loading for the next day.

Who has access to the computer data stored in our equipment?

Our store computers store the entire range of current and historical data about the operation of green garden gates of Oklahoma and, in fact our entire store network. There are elaborate filters of this material that allow all employees to view only the parts of the data needed for their specific tasks. Only the manager has ability to view the entire store data and some critical data from other stores for her comparisons. Employees who have responsibilities and need specific information are allowed at a certain level and not any farther. Their personal access codes allow them to enter those levels. Customers also have an access code that will let them into gardening information and internet sites only. The nursery manager can view his or her orders arriving and the sales for the department. Cashiers can view till balancing records. Processors of plants can view the numbers of amounts of work that has been done or needed to be done.

Are the computer records backed up off site?

Yes, a contracted server company automatically backs up the date the instant it is entered into the computer. That company can recover the data instantly in case of a malfunction at the store. Also, the backup will be stored at the main hub office of green garden gates.

Are the computers safe from personal use?

All employees of green garden gates are not allowed to use our computers for personal use, with the exception of viewing internet sites that are related to gardening. The manager has some flexibility on this matter with a broader definition of work and research performed by employees for the green garden gates.

Where are hard copy business and financial records stored? Are they secured properly?

Hard copies of the general store records are stored in the manager’s personal residence in a storage room designed for that purpose. There are only hard copies of employee records and they are stored under lock and key in that same storage space in the manager’s personal residence. Keys to this locked information are given to the partner designee assigned to personnel issues.

Who has access to store financial records?

Only the manager of the particular store, the designated local accountant and the partner assigned to the financial business of green garden gates. The manager also has access to the records of other green garden gates in the network.

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Do you have charge accounts at green garden gates?
We do not. All sales are cash, check, debit or credit card.

In these days of credit, debit and gift cards, we see absolutely no need to ramp up our staff to maintain charge accounts

Who reviews the payables?

Payables are review and approved by the store manager in consultation with a designated assistant and overseen by one of the four partners and the designated local accountant.

Some garden stores owners freely allow all employees to see the daily sales figures of the store. They believe that with this information, the employees are spurred on to increase the sales. This is bad business. It advertises to the employees and to gossip with their friends about the amount of money passing through the store each day. That information can lead to a robbery or burglary or another kind of theft for a person desperate for cash.



Who balances and reconciles the checkbook?

The store manager in consultation with the local accounting firm and overseen by one of the four partners.

Is there an internal audit done at the store?

Yes, we conduct frequent outsourced spot internal audits throughout the season and a full outsourced accounting audit at the end of each season.


Do you use and communicate code words to the staff if there is a security danger?

Yes, we have devised a few simple phrases for security problems; robbery, unruly customers etc.

All employees have walkies for communication. When they hear, for example the words “the birds are in the trees” they know to move directly where the money is stored and stay there until they are notified to leave. Some robbers can fleece a store of money so easily by disrupting the routine of employees and it can happen within minutes.

"My little garden store got hit twice by a band of gypsies that work the area. They were after money and personal valuables and they are stunningly slick on how they do it. They arrive in several carloads with lots of small children and fan out all over the store. They pretend to speak no English, cause great commotion and draw the all the employees away from places where the money is located, back rooms, employee lockers, spare till storage and checkout registers. Several of the group then move toward those areas and grab what is visible and move off. The rest will follow, load up the cars and leave. This all happens in a flash, no more than fifteen minutes.

After those incidents, I devised a plan. When they arrive, I relay a coded message to all employees. Each person has been pre-assigned a money or valuables source area to secure. They go to the area and stand there until the all clear is given. The manager and floor manager then handles their issues on the floor. Soon they see that those areas are secured and they leave. Works like a charm."

Sally Mantrus
garden store owner
Indiana

Do you use shoppers to spot security concerns?

Yes, we have developed a small network of customers who are trained to look for security issues. They are invited to the store frequently for a general or specific observation that we have concerns about. They are given gift certificates to various community businesses for their work. The manager is the only person who knows the shoppers, their schedules for store visits, and their tasks at the store.

We recognize that statistically, thirty percent of employees steal from their employer and that sixty percent of employees, under stress of financial need and given the right opportunity, will steal from their employer. Our goal at green garden gates is to reduce the opportunities for employee theft and more importantly, with policies and procedures, protect our employees from the suspicion of theft. We understand that some of our employees may get into financial trouble. We stay close to to our employees and are available to help them financially in various ways. This attention to employees can make the difference between an honest employee or an honest and hard working employee who was forced to steal.

green garden gates allows their customers to access the parking lot before the store is opened. What about employee accessing the main store before the opening of the store?

We have designated one entrance door into the retail store for the employees. It is locked before store opening and can be accessed by the employees "g-card". (the g-card is discussed in entry #115, time clocks. If the employee leaves the company, the computer system is immediately re-set to void any functions of that particular g-card.

How can we trust our store manager?

First, we screen potential managers carefully. Since this position has the most exposure for employee theft, we seek and expect the highest honest standards. We interview previous employers extensively, search and analyze their personal backgrounds and score their financial and emotional stability. The potential candidates submit to a battery of tests, which includes a profile of honesty. We set policies and procedures that require direct overseeing of store operations; store receipts, inventory control, accounts payable and payroll management. We audit the pattern of personal spending of our managers in order to spot unusual purchases or acquisitions of personal items outside the range of their salary capability. We pay attention to their adherence to theft preventative policies for their employees. We conduct spot store audits of their store operations.

Do you have an ethical conduct theft policy and is it posted for all to see?

Yes, we outline in the document what constitutes stealing from green garden gates and the consequences for them with this bad behavior. We explain why it is important for each employee to notify the manager of such activity of a fellow employee and to inform them about safeguards we will use to shield that employee from retribution. We are firm in this document that green garden gates has “zero tolerance” for employee theft.

Do you remind employees of the cost of theft to the business and to their personal jobs?

We emphasize this in the employee manuals and as part of the ethical conduct policy that is posted. We want them to understand that theft can hurt their direct personal paycheck, sometimes dramatically

Who can enter the store complex before and after business hours?

The entering of the complex other than business hours is strictly forbidden for employees, vendors, truckers, and outside service people without the express permission of the manager or floor manager or in the case of an extreme emergency. Absence an emergency, if any of them is required to enter the store, they must be accompanied by the manager or floor manager.

Are codes, keys, and passwords tightly controlled?

Yes


Are store tools, equipment and operating supplies tightly controlled?

Yes, each section leader of a specific area of the store is issued a small toolbox. That section leader is responsible for those tools. Larger hand tools are controlled by the specific section leader and he or she is responsible for all of them.

We make every effort to avoid “borrowing” tools from one place to another in the store. Tools just end up getting lost very fast. It cost a little more in initial purchasing but there is good payback in keeping the tools from getting lost or stolen.

Are all purchases made at the registers?

Yes, no transactions for product purchases are made unless they go through a cash register. All employees and customers must go through the cash register when making purchases.

Lots of money has been stolen from companies that allow employees to take money transactions away from registers alone in a corner somewhere. Our store shoppers especially watch for this activity

Do you allow employee friends “visiting” them while they are working at the store?

Yes. However the manager monitors the frequency and length of time of the visitors.

A visit from friend at the store is almost always innocent. However, sometime it can be an opportunity for the friend to “case” the place in order to jump the fence that night to steal. We watch this activity closely

How about discarded products? How is the “dumpster diving” controlled?

Each section leader, under the watchful eye of the store manager and floor manager, is allowed to discard product that is not salable. Those products are placed near the discard area for any employee to use personally. We make every effort to watch for good products discarded and later gathered by employees. Discards are recorded immediately and monitored for patterns of product discards.

How about the personal use of company computers, fax machines, copy machines, telephone use, etc?

Each employee has access to this equipment on a limited basis. They are issued a code to access that activity and it is recorded. Long distance calls on company telephones require the express permission of the manager or floor manager.

How about the use of other company equipment, tools, machines, vehicles?

No piece of equipment can be used outside the workplace without the express permission of the manager or floor manager.

How about cheating on the time clock?

We have installed a modern time management system in the green garden gates stores that monitors carefully any discrepancies. Each employee is assigned a personal code for the time clock and must have the g-card in his or her possession to record the hours worked. Loaning the g-card to another employee to “punch me in” is immediate grounds for dismissal. Any mistakes or failure to clock is reconciled and approved by the manager or floor manager during that business day

How do you control “rat holeing”?

Rat holeing is a practice where employees store away in a secret location at the store, products and plants that he or she would like to purchase but must wait until they have the money to pay for it. We forbid rat holeing. All products must be purchased that day at the registers.

How about property of the store that is issued to employees for their work tasks?

All the items, uniforms, tools, walkie talkies etc are recorded and kept in the employee’s file. We require them to sign a statement that they have received this merchandise and the cost to them if the items are damaged needlessly or lost. When the employee leaves green garden gates, the final check is not issued until this merchandise is accounted for.

What is the role of “silent shoppers” in the control of employee theft?

We use them. We make it clear to all employees that shoppers may be in the store from time to time and they will take action and set up situations to test the employees honesty.

How about theft by employees to other employees?

We require that all personal items be stored in their locked lockers or those items be stored in their locked vehicles during the working hours. We make it understood that the employees with be monetarily fined if personal items are found around the store rather than in their lockers or in their vehicles. There are exceptions to this. For example, coats or boots that have to be removed and later put on during the workday.

Who watches the store manager? Who watches the floor manager?

These two people, especially the store manager, have total keys to the city. They are in the best position to take from green garden gates in lots of ways. We charge the manager with monitoring the activities of the floor manager at all times. We charge the local accountant, and the partners of green garden gates with the monitoring of the business activities of the manager. If either one has knowledge of nefarious activity of the other and that activity is unreported, they will be terminated immediately and ushered to the door as soon as one of the partners can be at the store to take the action.