Northlands loses more than $1M annually in parking revenue due to skimming
Northlands fired without cause all 38 parking cashiers after two separate audits revealed employees skimmed more than $1 million per year from parking fees at Northlands, president and CEO Tim Reid said Friday.
Over the past few months, an internal and independent external audit was performed on parking services at Northlands.
"Unfortunately the result of these audits provided compelling evidence that theft within the department was occurring on between 12 to 19 per cent of all transactions, which amounted to an annual shrinkage estimated to be in excess of $1 million," Reid said.
Reid said the audit reviewed 20 employees and concluded half of those "were not following the transaction process."
However, to investigate further to pinpoint the sources of the theft, which Reid described as systemic, would cost more than $400,000 and create even more lost revenue, he said.
Instead Northlands decided to let go all of its parking lot cashiers and contract out the parking services to IMPARK.
Some of the employees, who say they had nothing to do with the missing money, are upset.
Sonia Phillips wondered why Northlands didn't wait for the results of a police investigation. She and the other cashiers had their jobs terminated in a meeting Monday, Phillips said.
"I was shocked. I couldn't believe it that they were terminating us," Phillips said. "When I heard the reason, I was even more shocked because I couldn't believe that much money was missing and this is the first that we were hearing about it."
Phillips said Northlands had recently put new policies in place, including a restriction on personal items including food, in the parking booths.
Phillips said she made $10.20 an hour until minimum wage jumped $1 on Oct. 1.
"There are a lot of students and retirees that are in these jobs and people who just need an extra paycheque for their household," she said.
No complaint received by police
Northlands is aware the allegations could affect former employees' chances to be hired elsewhere. The severance will reflect that.
"I want to be very specific. We know there are some great people in that mix," said Reid, adding that the changeover was supposed to be an internal matter.
On Friday morning, Edmonton police said they have yet to receive a complaint. But Reid told reporters that Northlands is providing information to police and the organization's board is aware legal action may be taken.
"Our position has been very clear with the board, and the board has been very clear with us, that we can prove that there is theft, or that there is criminal intent, that we will take legal action," Reid said.
Northlands is a non-profit, volunteer organization which hosts K-Days and operates Northlands Park Racetrack and Casino, EXPO centre and Rexall Place, home to the Edmonton Oilers and other professional and amateur sports teams.
The Oilers will be moving to the new Rogers Place arena in downtown Edmonton in the fall of 2016.
