1 Chuck Cullen, CPFM, CAPP Director of Parking Consulting Services The Consulting Engineers Group, Inc. Do You Manage Your Parking Revenue Control System.

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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???