Post on 26-Mar-2015
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Chuck Cullen, CPFM, CAPP
Director of Parking Consulting ServicesThe Consulting Engineers Group, Inc.
Do You Manage Your Parking Revenue Control System or Does It Manage You?
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Do You……
Compare the bank receipt to the Daily Report total, and say everything’s is OK?
Anytown Bank
Receipt For
$18,184.25
February 31, 2007
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Do You…
Fail to properly maintain equipment?
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Do You….
Omit using counters because they are unreliable?
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Do You… Look at reports without really
examining what the numbers mean?
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Chuck’s Parking Management Law #1
If you are not using your revenue control system as designed, it is using you.
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Too Often….
Install a revenue control system and then “fit” you operation to meet the ability of the system
Place too much reliance on the revenue control system
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Chuck’s Parking Management Law #2
A Revenue Control System is not a replacement for management.
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Statistics
91% of thefts involve asset misappropriations
88% of misappropriations involve cash
5% of revenues are lost annually through occupational fraud
Source: Association of Certified Fraud Examiners-2006
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Recent Examples
Los Angeles, CA: $530,755 in missing tickets (fake validations)
Dayton, OH: $250,000: (garage supervisor used fake bank stamp)
Miami, FL: $??? (selling extra spaces for “OTSK”)
Mount Kisco, NY: $30,000 in quarters from meters over 9 months
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What is Parking Revenue Control? Collection and depositing of
revenue without loss or deception
Revenue Control is an art Art: elements or events
responding in an unpredictable manner
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What is Auditing?
Auditing is the verification of revenue control polices and procedures
Auditing is a science Science: elements or events
responding in a predictable manner
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Why Do We Need Revenue Control
1. Reduces theft of revenue• limits those who will steal• prevents some who may steal
2. Enhances customer service3. Curbs unemployment of parking
administrators
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Chuck’s Parking Management Law #3
Nothing is as inevitable asa theft whose time has come.
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The Real Problem Parking is a business that is not designed
to be controlled Has no fixed inventory Accepts cash payments Offers discounts (validations) Varies fees Uses third parties (valet) to provide
service Pays a person $25,000 to process
$250,000 or more
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The Quote
“There has never been a system devised that couldn’t be beat when the temptation is there, and the temptation will always be there.” Bruce Miller Miller Parking 1962
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Chuck’s Parking Management Law #4
It’s not the revenue that
needs to be controlled –it’s the people!
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Goals of Parking Revenue Control
Manage people Purchase appropriate equipment Maintain equipment Verify transactions
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Parking Revenue Control Theory
Theft of revenue is a crime Crime = Motivation + Opportunity Good management can reduce the
motivation Good revenue control can reduce the
opportunity Good auditing ensures good revenue
control
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Motivation To Steal
External Life altering experience (death,
divorce…) Financial hardship Addiction
Internal Unfair treatment “Get even”
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Three Components of Revenue Control
People customers cashiers supervisors senior administrators
Places your facilities
Things equipment
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People
Cashiers Employ good personnel practices
Hire the best people Train employees Apply policies fairly and consistently
Managers zero tolerance for theft administer policies fairly document
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Places
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Places
Look for “escape clauses” low curb height perimeter fencing unlocked chains open equipment cabinets tightness of gate arms metal signs around entrances or exits unintentional gaps others?????
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Things (Equipment)
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Chuck’s Parking Management Law #5
The hidden flaw never
remains hidden
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Things
Equipment to complement services Service
How good How fast How much
Software Secures the data & programming Generates usable reports Collects and processes data accurately
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Secure Power
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Parking Revenue Control in Action
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Monthly (Contract) Parking
Separate revenue from access control
Compare the number of permits sold to the number of valid permits in system
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Monthly Account ReconciliationDIVISION OF PARKING
MONTHLY RECONCILATION REPORT
Facility: Month: Year: Date:
Prepared By: Approved By:
# Sold Value Total Date # Sold Amount# Monthly Permits -$ # Monthly Permits -$ # Monthly Permits -$ # Monthly Permits -$ # Monthly Permits -$ # Monthly Permits -$ # Monthly Permits N/C -$ -$ Total Permits Issued -$ Permits Valid - ReportDifference ( + / - )Explain if other than 0
Total -$ Sold Summary Totals -$
Difference -$
Permits Sold Summary Deposit Summary
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Pay At Exit
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Typical Entry Lane
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Pay At ExitReconciliations
1. Revenue2. Tickets3. Counters4. Audit
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1. Revenue Reconciliation
Compare revenue to fee computer to bank deposit
Review & document shortages AND overages
Examine checks for appropriateness and verify with bank deposit form
Verify credit card charges
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Sample:Revenue Reconciliation
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2. Ticket Reconciliation
Tickets represent inventory Audit exceptions (voids, manual
transactions, lost, spoiled or special-rate) Unaccounted For Tickets
previous overnight inventory + # tickets issued - # tickets collected - current overnight inventory
0
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Sample:Ticket Reconciliation
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Ticket Reconciliation
Starting # Ending # # TicketsEntrance 1 119902 120834 933Entrance 2 10292 10495 204Total Tickets Issued This Report Period 1137Plus Number Of Previous Overnighters 12Total Tickets Accountable For This Period 1149Number Of Tickets Sent To City Treasurer 1135Tickets Outstanding For This Report 14Current Number Of Overnighters 11Rate 31,32,33 Tickets 1Ticket Difference 2
Ticket Reconciliation
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3. Counter Reconciliation Entrance Lane
# tickets issued = ticket counter # monthly entries = monthly count transient count + monthly count = gate
count lane count = gate count = ticket count +
monthly count illegal count = 0
Exit Lane same as entrance except # of
transactions replace # tickets
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Sample:Counter Reconciliation
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Counter ReconciliationEntrance Lane 1
Last Ticket # 120834 End Ticket Count 207599First Ticket # 119902 Start Ticket Count 206667Total Tickets 933 Total Ticket Count 932
End Monthly Count 116928Access Computer Start Monthly Count 116885
Count 43 Total Monthly Count 43
End Gate Count 281410Total Tickets Start Gate Count 280435+ Computer 976 Total Gate Count 975
Total Ticket Count 932 End Lane Count 355497Total Monthly Count 43 Start Lane Count 354523
Ticket + Monthly 975 Total Lane Count 974
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4. Audit Procedures
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Questions???