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I'm not a believer in having variance reports in poker. I believe if the rack is short the dealer needs to make it up. If the rack is over put it on the slide and drop it (I am ok with a variance for the rack being over). I am more concerned with the players being protected than the casino, because the casino can protect itself by requiring the dealer to make the rack right if he shorts it. This becomes more of a concern in LA rooms where the dealers keep any overage (the rack is theirs); in those rooms it is very important that the dealer be clear that they aren't stealing from the pot.
I'm not real fond of this the dealer makes up a shortage thing because it slows the game when every down your new dealer has to count your rack to the $. Counting the rack to to close enough can be done with a quick eyeball.
If my room expected me to make up every small shortage, I would stop my game and count my rack down to the last dollar every down.
And I agree with Al about the $ in $ out thing. And while you refer to thios as a pit procedure, it seems to me that I have always seen the pit games operate the other way . . . with both the money going in and the money going out be placed in front of the rack. (except craps where the procedure involves dropping the money to the boxperson)