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Inventory Procedures Manual

The policy statement and procedures adopted


herein supersede and repeal any previous
versions of this document.

Duly adopted : July 1, 2008

Revision Date: April 1, 2013


Next Review: January, 1, 2014
Table of Contents
Inventory Schedules ....................................................................... 2
Inventory Counts............................................................................ 3

Suggested Inventory Procedures ....................................... 3


Food and Retail Inventory Pricing Guidelines ........................ 4
Par Levels ....................................................................................... 5
Food Spoilage ................................................................................. 5
Damaged Retail Merchandise .......................................................... 5
Spoilage Documentation ................................................................. 6
Preventing Loss of Inventory .......................................................... 6
Securing Inventory ......................................................................... 6
Invoices .......................................................................................... 6
Rotating Inventory ......................................................................... 7
Transfers ........................................................................................ 7
End of Season Transfers ................................................................. 7
Vending .......................................................................................... 7
Staff Guidelines .............................................................................. 8
Deliveries ....................................................................................... 9

Blanket Purchase Order Tracking Forms .............................. 9


Cash Control Incident Reports ......................................... 9
Daily Inventory Counts ................................................................... 9

Register and Retail Supplies .......................................... 11


Variances................................................................ 11
Appendix A Inventory Schedule ...................................... 12
Appendix B Glossary ................................................... 13
Appendix C Specialty Food List....................................... 13
Appendix D Special Order Policy ..................................... 13
Philosophy
The creation of inventory management procedures is important to our agency for many reasons.
They allow for consistency between the facilities, simplification of processes, accountability for
our staff and a resource for inventory information. Following these procedures will provide tools
to better run agency food and retail operations and will help lower resale costs. The procedures
outlined in this manual are considered minimum standards. Anytime a procedure in this manual
is not followed a Cash Control Incident Report must be completed and routed.

Inventory Schedules
Procedure Number 001
Date 4/1/13

Small facilities (locations carrying under $10,000 in retail merchandise at the peak of the year)
will count retail items monthly.
 BWP  PICP  WCP
 FBCP  Splash Island  CCIC
 IOP  JICP  Climbing Wall
 MHEC  Splash Zone

Large facilities (locations carrying over $10,000 in retail merchandise the peak of the year) will
count retail items twice a year.
 WW
 FBFP
 CRM
 MPP
 HFOL
 Campground
If a small facility’s inventory variance is 5% or greater for 2 consecutive counts, that
location must count weekly until two consecutive counts have an inventory variance of
less than 5%.
If a large facility’s inventory variance is 5% or greater for 2 consecutive counts, that
location must count quarterly for one year. It is recommended that staff conduct spot
counts periodically between full inventory counts.Food:
Snack bar/Concessions locations will count all food monthly.

Convenience store locations will count their food quarterly. This includes the following
locations:
 James Island County Park Campground
 Cooper River Marina

Because PODs are secured and not easily accessed, inventory counts are not required to
be conducted quarterly on inventory stored in the POD. For the Holiday Festival of
Lights, the inventory will be counted at the beginning and end of the light show. All
other locations will conduct counts at the end of the calendar year and the end of the
fiscal year.

A master timeline is included as an appendix to this manual. This timeline will be set
each March for the calendar year.

Inventory Counts
Procedure Number 002
Date 4/1/13

Inventory counts are important for many reasons. They provide us with a mechanism to
analyze our business, help us make good management decisions, help us monitor
shrinkage, and assist in determining our cost of goods sold and net income. It is
imperative that inventory counts are executed accurately and in the prescribed timeframe.

Inventory counts must be completed after business on the last day of the month or before
starting business on the first day of the month unless otherwise directed by the master
time line (see Appendix 1). Store managers are encouraged to do as much counting in
storage areas as possible before the store closes on the day of inventory. It is at the
facility manager’s discretion whether or not they wish to close the store early to complete
these counts.

Attendants and volunteers must be accompanied by a supervisor when counting


inventory. It is advisable to have at least one consistent supervisor involved in inventory
counts in order to ensure items are counted the same way at each inventory. Be sure to
look closely at inventory sheets to determine the appropriate unit of measure for items
(i.e. case, box, sleeve, individual, etc.) See Appendix E for a detailed list.

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Suggested Inventory Procedures
Procedure Number 003
Date 4/1/13

Following is a general guideline to follow when counting inventory:

Use a typed list of the items to be counted. It is imperative that once storerooms, vending
rooms, etc. are counted, no items are moved in or out of that area without the inventory
counts being adjusted. It is suggested that you start counting at the beginning of a wall,
the top shelf of a shelving unit or refrigerator, or at any end, etc. Continue on the same
level to the end of the wall, shelf, etc. counting every item. It is important that you count
all items at this time. It is very likely that you will forget to go back and count it later.
An example: You are counting food items and you come across resale sundry items,
count them now. Don’t leave a shelf or level before finishing the count. If a situation
arises that requires your immediate attention, leave your count sheet where you stopped
counting. It will mark the place to start counting again. Don’t jump from one area to
another. You should have a plan that leads you from one area to the next. This helps to
ensure no areas are completely left out of the inventory process. Write the SKU#,
description of the item, and number counted for any items not printed on your inventory
sheets before entering your end of quarter count. This will ensure that these items and
their values are accounted for, and will eliminate the problem on future counts.

Food and Retail Inventory Pricing Guidelines


Procedure 004
Date 4/1/13

Food (prepared and prepackaged)


 Individual food prices to be established based on overall cost of goods and will
not exceed 40% cost per item.
 Monthly cumulative cost of good margins should maintain a range of 25-35% cost
per operating account line.
 Menu pricing will be evaluated and adjusted on an annual basis
 All costing on prepared items will include a 15% Q factor to account for
incidentals including seasoning, napkins, oil, straws, etc…
 Similar items will be equally priced at all facilities
 Menus and product options do not have to be equal at all facilities
 New menu items/options shall be pre-approved prior to being added to menus
 Cash apron operations will use a rounding formula to establish pricing
 Taxes will be included in overall pricing

Retail (sundry, bait/tackle, alcohol, grocery, consignment)


 Individual retail prices to be established based on the overall cost of each item
which included freight charges and will at least maintain the following gross
margin (GM) operating ranges

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Sundry 45-55%
Bait/tackle 25-35%
Alcohol 30-40%

 Gross margins to be reviewed and adjusted as needed during each new delivery
and at the conclusion of each inventory count period (monthly or quarterly) in
order to maintain the above ranges
 Consignment items will maintain a minimum margin of 30%
 Taxes will NOT be included in overall pricing
 Additional guidelines have been established for any special order purchases. See
appendix D.
 Where possible UPC codes are the acceptable form of inventory tracking
 Major changes with new retail selection or merchandizing shall be pre approved
prior to ordering.
 Cash Apron operations will use a rounding formula to establish pricing
 Facilities carrying the same item need to coordinate price changes. The higher
price will prevail. Locations that feel that price is too high can either put the item
on sale or transfer their inventory to another facility.

Par Levels
Procedure Number 005
Date 3/1/12

Each park will establish written par levels to assist in food ordering. Setting par levels
means determining a minimum quantity to have on hand for each item you have in stock.
This will prevent facilities from running out of products and will also prevent excess
ordering which can lead to spoilage and theft. Par levels are also an important tool if part
time employees are involved in the ordering process as they give general guidelines for
quantities to order. Par levels will need to adjust seasonally.

Food Spoilage
Procedure Number 006
Date 2/24/11

Anything purchased for resale that is taken out of inventory and is not sold or transferred
is considered spoilage. Spoilage levels are used as a management tool to track the
amount of waste to make sure that it is within acceptable levels. Excessive spoilage will
inflate food costs and cut into the net profit of your operation.

Each park will have a spoilage log that must be completed and verified by a supervisor at
the end of each day. Spoilage will be entered into the point of sale system on or before
the last day of the month.

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Spoilage values will be included as a note on the quarterly income statements.

Damaged Retail Merchandise


Procedure Number 007
Date 2/24/11

When shipments arrive, all items should be checked to make sure they are unbroken and
are in working order. If an item is found to be defective or damaged, contact the
company from which the item was purchased to see if you can get a credit or replacement
item. Broken items that are not reimbursed or replaced by the seller must be taken out of
inventory in the retail software and disposed of. At the manager’s discretion, items with
minor defects can sometimes be sold at a discounted price.

Spoilage Documentation
Procedure Number 008
Date 3/1/12

Any single event that causes an inventory loss of $50 or more will be reported on a Cash
Control Incident Report. This includes expired products.

Preventing Loss of Inventory


Procedure Number 009
Date 4/1/08

All breakers that support food freezers, ice cream carts, etc will be labeled. Park
management should contact maintenance staff to determine the best method for labeling
breakers.

A preventative maintenance schedule will be established for all freezers with Facility
Support Maintenance. Consider installing a power loss alarm on freezers and ice cream
carts when possible.

Securing Inventory
Procedure Number 010
Date 4/1/13

All freezers and storage must be secured and access to these areas must be limited.
Inventory storage areas where possible will have a specific key for doors and master
locks rather than using an All Door key or a 2046 key.

Invoices
Procedure Number 011
Date 3/1/12

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Invoices must be submitted to HQ ready for payment within 5 days of receipt. If an
invoice is being disputed, it should still be paid. If you have a credit on your account
make sure that it is applied to your next invoice. All credits must be used by the end of
the fiscal year. Credits that cannot be applied to an invoice should be refunded to
CCPRC by check. Invoice totals must be zero by the end of the fiscal year.

All retail items received for resale will be keyed into the inventory management software
on or before the last day of the month.

Rotating Inventory
Procedure Number 012
Date 4/1/08

The rule for inventory rotation is first in, first out. When deliveries are received, the old
product will be moved to the front and the new product will be placed in the back.
Rotating your stock will reduce spoilage. All food will be labeled with a delivery date to
ensure that all products are rotated appropriately.

Transfers
Procedure Number 013
Date 3/1/12

Anytime resale merchandise is moved from the location in which it was purchased to
another location for sale it is considered a transfer. Transfer can happen within one
facility (i.e. WW Calypso Kitchen to WCP snack bar) or between different facilities (i.e.
Folly Beach County Park to Mullet Hall).

All transfers will be done in CLASS. The transfers must be done in CLASS at the time
the transfer occurs. The sending facility is responsible for completing the transfers. It is
the responsibility of the receiving facility to make sure the items are now in your
inventory. The Operations Administrative Services Manager (OASM) will process
transfers by the 10th of the month.

End of Season Transfers


Procedure Number 014
Date 3/1/12

If your park closes for a season, all food and retail items should be transferred to other
open facilities whenever possible as long as the items are sellable. Food that cannot be
stored or transferred will be documented as spoilage. Unopened cases may be able to be
returned to the vendor if you contact the vendor within 30 days of the original order. End
of season transfers must be completed within 2 weeks of closing for the season.

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Vending
Procedure Number 015
Date 3/1/12

Any CCPRC owned vending machine must follow these procedures:

1) Establish bottle pars sheets for each machine (EX. 20-pepsi, 30-waters, 40-
gatorade)
2) Establish coin pars, a recommendation of 75% full per machine; for each column.
3) Maintain vending product inventory under Class POS prepackaged food inventory
category. All vending deliveries shall be entered at time of delivery. All non
vending products should be transferred into the correct account at time of
delivery.
4) All physical drink transfers to be completed in Class and recorded in the transfer
log.
5) Restocking to be completed using the vending par sheet. Drinks shall be restocked
to the established par and that number recorded on the par sheet.
6) When collecting machine deposits a separate bag shall be used for each machine.
All monies shall be collected minus the established par.
7) Restocked vending product shall be entered into Class POS vending terminal
using the restocked numbers from the par sheet and should match monies
collected. The difference will be considered over/short.
Example= if 20 bottles were restocked, in class 20 bottles will be sold,
monies collected should equal revenue for 20 bottles.
8) At the end of each month an inventory will be taken of each machine and
stockroom(s). This count should match class inventory levels.
9) Large bottle or deposit revenue variances shall be researched in an effort to
determine a corrective action.

Staff Guidelines
Procedure Number 016
Date 3/1/12

The following practices are prohibited in all CCPRC food and retail establishments:
 Eating behind the counter
 Taking food without purchasing it
 Eating food that has been “spoiled”
 Creating staff specials (employees may order from the provided menu just like
any other customer)
 Bringing cups from home to get free soda
 Park Attendants ringing up their own food purchases
 Park Attendants making their own food
 Not wearing shoes

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 Per DHEC, any drinks behind the counter must have a lid
 Staff may receive the staff privilege discount or the store discount, but may not
combine discounts
 Only appropriate staff will be allowed in the food and retail establishments during
open hours
 Staff may only receive discounts on single serve food items and sundry items.
Boating, fishing, RV and camping supplies, alcohol, special orders and
consignment items are not discounted
 No bags or purses allowed in concessions areas.

In addition:
 Purses and bags are subject to search
 Staff making purchases while in uniform must be able to provide a receipt on
request.

Deliveries
Procedure Number 017
Date 4/1/08

All deliveries must be verified by a designated authorized staff member and signed off
on. Be sure to check for the condition of product, check the expiration date of the
product and the quantity received. Compare the item count with the number listed on the
invoice.
Blanket Purchase Order Tracking Forms
Procedure Number 018
Date 3/1/12

These tracking forms are posted in Excel in the Food and Retail Folder and are a great
management tool for tracking purchase order balances, helping determine the cost of
goods sold, and making sure invoices are paid. These forms or a similar tracking form
must be filled out by seasonal facilities by the 5th of the month. This tracking form may
be located in Excel by following the path OPS-Park OPS-Food and Retail

Cash Control Incident Reports


Procedure Number 019
Date 2/27/09

Anytime irregularities of inventory management occur, a Cash Control Incident Report is


required. For example:
 Failure to complete timely inventory transfers
 Failure to complete inventory counts on the prescribed date
 Any time a procedure in this manual is not followed

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Daily Inventory Counts
Procedure Number 020
Date 3/1/12

This procedure applies to facilities with inventory behind the counter (i.e. food
operations.) Each location will complete a Daily Inventory count of at least 5 items. The
items counted may change at the manager’s discretion, but should be counted for at least
1 consecutive week. Counts will be keyed in to the excel form and compared with sales
from the day using a Group Item Sales report. The Food and Retail Coordinator will
audit the forms for patterns or problem areas and provide feedback to facility staff.
Problems/patterns in inventory counts will be addressed by facility management.

Register and Retail Supplies


Procedure Number 021
Date 1/27/12

Shopping bags, tissue paper, tags and register supplies should be charged to
Miscellaneous Supplies. Make sure to break out the charges on your PO so that they are
not included in your resale cost. These items are not entered as inventory in the
inventory management software.

Variances
Procedure Number 022
Date 3/1/12

When it is determined that a food or retail operation cannot adhere to the specified
procedures for inventory management, the Manager or Supervisor must submit a written
memo to the FRM, Assistant Directors and Division Director for review. The memo
must state the reason the facility can not comply with the procedure in question as well as
any new procedures to be instituted. If a variance from the established procedures is
granted, a memo will be sent to the manager or supervisor stating exactly what procedure
is waived and any new procedures to which that facility or operation must adhere. The
memo granting a variance shall become part of the Inventory Management Procedures
Manual. No procedures in this manual are allowed to be altered or changed without the
express written consent of the Division Director.

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Appendix A Inventory Schedule

2013 Inventory Schedule

Following are the dates on which inventory counts must be completed. Please notify the
FRM and Division Director if you are unable to conduct your inventory counts on these
dates.

March 31*
April 30
May 31
June 30* **
July 31
August 31
September 30*
October 31
November 30
January 2*
February 28
* = the dates for facilities that are on the quarterly count system.
** = End of fiscal year count

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Appendix B Glossary

Glossary

Cost of Goods Sold (COGS): The cost of obtaining and producing the goods sold in a
business. The following formula can be used to calculate COGS:

(Beginning inventory + purchases + transfers) – Ending inventory = Cost of Goods Sold

Gross margin: the amount of contribution to the business enterprise, after paying for
direct fixed and variable unit costs, required to cover overheads (fixed commitments) and
provide a buffer for unknown items.

Inventory: a list for goods and materials, or those goods and materials themselves, held
available in stock by a business.

Inventory Variance: The value of goods your inventory management software says you
have on hand minus the amount you actually have on hand as determined by a physical
inventory count.

Net Income: the income that a business has after subtracting costs and expenses from the
total revenue.

Par Levels: determining a minimum and maximum quantity to have on hand for each
item you have in stock.

Shrinkage: the loss of products between point of manufacture or purchase from supplier
and point of sale. 48.5% of shrinkage is due to employee theft and 31.7% due to
shoplifting.

Spoilage: any item purchased for resale that is taken out of inventory and is not sold or
transferred.

Total Income: Net Sales minus cost of goods sold. This will tell you the total profit made
before all other expenses are deducted.

Transfer: Anytime resale merchandise is moved from the location in which it was
purchased to another location for sale.

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Appendix C Specialty Food List
Date 03/15/13

Specialty food defined as: Any food items having to be priced higher than market value
in order to satisfy variances of reduced price when employee discounts are applied.

Facility manager compile a list by facility. Items must be approved and maintained on
this running list in order to qualify as a specialty food item.

All Facilities:
PEPS Starbucks Coffee Frappaccino
PEPS Starbucks Mocha Frappaccino
PEPS Starbucks Peppermint Frappaccino
PEPS Starbucks Coffee Italian Roast
PEPS Starbucks Double Shot
PEPS Starbucks Double Shot Espresso & Cream
PEPS Amp Tall Boy
PEPS Amp Traction
PEPS Jeff Gordon 24 Energy Drink

Campground:
CA&C Pepperoni Hot Pocket Single
CA&C Hot Pockets Breakfast Single
CA&C Pancake/Sausage on a Stick
CA&C Sausage Egg & Cheese

CRM:

COST Starbucks Frappucino VIST Chef Boyardee


COST Café Steamers VIST Dinty Moore Stew
COST Chicken Pot Pie VIST Hormel Meals
COST Lean Cuisine VIST White Castle
COST Tuna Fish VIST Steak Biscuits
VIST Nathans Hotdogs VIST Hot Pockets
VIST Ham & Cheese Wedge CA&C Welch’s Juice Drinks
VIST Turkey & Cheese Wedge CA&C Vienna Sausage

Mt. Pleasant Pier:


All smoothie options
American classic tea
Nantucket Lemonade

HFOL:
Any Fresh Bakery Items

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Appendix D Special Order Policy
Date 2/24/11

The purpose of this policy is to ensure consistency among the various parks when
handling special orders from patrons. For clarity purposes, a special order is defined as
any item that a CCPRC facility does not normally stock in its inventory and is ordered
solely for immediate sale to a customer. The following guidelines are to be used when
dealing with special orders.

Special orders are marked up no less than 20% above the total cost granted to CCPRC.

Shipping costs are the responsibility of the customer and factored into the total cost.

Customers are responsible for all costs incurred for returned merchandise.

Special orders can be placed only by CCPRC employees authorized to purchase resale
items.

Special orders can be placed only with established CCPRC vendors.

Special orders are rung into the register under either:


 Special Order Open Sundry
 Special Order Open Boating/Fishing
 Special Order Open RV/Camping Supplies

Special orders shall be open to all customers and CCPRC employees.

CCPRC employees receive no additional discounts on a special order.

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