INT-ACCT-2.2.2

Discrepancies, the Monthly Close and Fraud

Shows how to investigate a cash discrepancy methodically, what a monthly close involves, and what fraud actually looks like aboard a yacht. Explains why a discrepancy must be reported rather than absorbed, and why good process protects the crew member as much as the owner.

You count the safe on the last day of the month. The float should hold EUR 1,157.65 in cash. You count EUR 1,150.65. Seven euros are missing. It is late, you are tired, and nobody would ever notice seven euros. What you do in the next five minutes tells you everything about the kind of professional you are.

Investigating a Discrepancy

Expected cash: float 3,000.00 − receipts 1,842.35 = 1,157.65. Counted: 1,150.65. Shortfall: EUR 7.00.

Work the causes in order of likelihood, not in order of drama:

Cause Typical signature Check
Arithmetic or keying error Amount is a transposition (e.g. 7.00, 9.00, 90.00) Re-add the cash book by hand
A receipt not yet entered Cash gone, paperwork in a pocket Search pockets, bags, other crew
Rounding on a currency exchange Small, recurring Re-check the FX slip and effective rate
A tip or delivery fee added at the door Cash paid exceeds receipt face value Ask the crew member who paid
Cash advanced and not logged A slip was never written Check the advance slips
Misappropriation Pattern, not a one-off Escalate; do not investigate alone

Fix the process, report the number. A discrepancy is reported, never absorbed — do not put your own EUR 7.00 in the tin to make it balance. That is falsifying a record, even when the motive is good.

The Monthly Close

  • Cut off spend on the agreed date; late receipts go to next month with a note.
  • Count cash with a witness; reconcile every card line; clear or flag every unmatched item.
  • Post all coded spend; chase invoices received but unpaid so the accrual is right.
  • Produce the monthly report: spend by cost code, budget vs actual, variances explained, discrepancies disclosed, open items listed.
  • Send it to the captain and management company on time, every month, without being asked.

Fraud — What It Actually Looks Like

Fraud aboard is rarely dramatic. It looks like:

  • Personal items slipped onto a ship's card, "to be repaid".
  • Inflated or duplicated receipts, or a receipt re-submitted twice.
  • Kickbacks from a supplier — the discount that goes to you rather than to the yacht.
  • Skimming small amounts from the float or from guest change.
  • Taking from a gratuity pot before it is properly distributed.
  • Invoices from a vendor connected to the person approving them.

Why Small Borrowing Ends Careers

The amount is irrelevant; the breach of trust is the whole point. A yacht is a small, gossiping industry with reference checks and long memories. A crew member dismissed for EUR 40 of unauthorised spend is not sacked for the EUR 40 — they are sacked because nobody can now believe any figure they ever wrote.

Onboard Notes

  • Good process protects you. A witnessed count and a clean audit trail are what stop an accusation sticking.
  • If you suspect a colleague, do not confront them and do not investigate alone. Report to the captain, in writing, with the evidence.
  • If you make a mistake, disclose it before it is found. That distinction is the whole difference between an error and a scandal.

Practice questions

5 questions
scenariocore

scenario · core

Your float is EUR 3,000.00 and you hold receipts for EUR 1,842.35, but the safe counts EUR 1,150.65. What is the discrepancy, and how do you investigate it?

recallcore

recall · core

What does a monthly close involve?

recallcore

recall · core

Give five realistic examples of what fraud looks like aboard a yacht.

oralstretch

oral · stretch

Why does a small amount of borrowing from the ship's money end careers, when the sum involved may be trivial?

scenariostretch

scenario · stretch

You notice a crew member has submitted the same restaurant receipt twice in two different months. What do you do?

Independent study. xplor is not an IAMI- or PYA-accredited GUEST training provider. This course covers the ground assessed in GUEST Unit 21; it awards no GUEST unit, certificate or Certificate of Competency and does not count toward one. It is not tax, legal or accounting advice.

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