Cashroom chaos: take up references

Advice to check CVs and references of applicants for cashroom positions in light of experiences with certain individuals

The Journal, May 2005, page 39

The Guarantee Fund Department has become aware of serious cashroom problems arising where a particular individual has been employed as cashier and has then left. In one case accounting records were lost covering a considerable period. In another the accounting records were seriously in arrears and the available records were unreliable.

It must be stressed that, in the case of this individual, the initial standard of work appears to have been satisfactory but deteriorated. The individual has been noted to move from one practice to another, in permanent employment or offering a temporary or agency service.

In the cases which have come to the Society’s attention, the extent of the problem has only become clear when the individual leaves the practice. Clearly, the solution is for proactive involvement by the designated cashroom partner, which should highlight problems as they arise.

The practices involved have been left with a massive task to correct and recreate records. The time and expense involved in this exercise has been considerable, without taking into account the cost of chargeable time lost while attention was focused on the accounting problems and dealing with subsequent Guarantee Fund inspections, interviews and reinspections.

The Department is also aware of cases where cashroom staff, who have been dishonest in one practice, then find employment in another solicitor’s cashroom.

One way to counter such problems is for practices to ensure they both request and take up references when employing new staff, and that they make due enquiry about any gaps in employment records.

In addition, where applicants claim to be members of a relevant body, this should also be verified. In relation to cashroom staff, many will be members of the Society of Law Accountants in Scotland (SOLAS) and will be entitled to use the initials SLA or designation “Scottish Law Accountant”. While membership of such a body is not a requirement for employment, it is of concern that some individuals claim to be members when they are not. Membership can be checked through SOLAS; contact details can be found at www.solas.co.uk or through the Society.

References should also be taken up when engaging self employed individuals or businesses to provide cashroom services.

The risk to client funds and your practice’s reputation and financial wellbeing is significant. Please do not overlook these simple and basic measures to protect them.