Date Created: January 23, 2024

Last Updated: February 1, 2024

Overview

Athletics Golf Pro Shop maintains an inventory in their store and their storage facility.  Inventory is tracked in the Club Profit System and updated monthly by the Golf Head Pro.  Inventory pricing updates are completed by the ticket office staff in the vivenu POS system.  The inventory system and the vivenu POS system do not interface so sales must be manually updated in the Club Profit System to update inventory counts and value. A physical inventory count is completed at the end of the season and at the end of the fiscal year.  Additional processes and controls for ordering, storage, and access are in place to protect inventory and to prevent opportunities for fraud or theft.

Criticality:   High

Frequency:   Other

Turnaround:   Other

Golf Head Pro:  Responsible for placing orders, monitoring inventory levels and updating inventory counts in the Club Profit System each month as product is sold or physical inventory is completed.  Reviews any pricing or delivery discrepancies and addresses with vendors.  Provides pricing updates to the Ticket Office Staff for updating vivenu.  Maintains security of storage facility where larger inventory items are stored.

Asst. Golf Professional:  Receives product at the store, verifies item counts and pricing on orders.  Identifies items for return to vendors (damaged, wrong item, etc.) and manages the return process.  Places inventory on the selling floor.  Performs inventory counts for semi-annual inventory.

Pro Shop Staff:  Assist in completing inventory counts, records sales in the vivenu POS system.  Monitors inventory on the sales floor.

Ticket Office Staff: Update selling prices in vivenu POS system as directed by Golf Head Pro.

Financial Transaction Center (FTC):  Responsible for processing vendor invoices and credits timely and recording inventory adjustment entries.

  • vivenu POS system
  • Club Profit System entries
  • Kuali Financial System
  • Invoices, credits, returns and packing slips from vendors
  • vivenu POS System
  • Club Profit Inventory Tracking System
  • Kuali Financial System (KFS)
  • OAS Reporting Dashboard (KDW)
  1. Credits and returns can make tracking and reconciliation challenging.
  2. Physical inventory counts could contain errors.
  3. Pricing issues may exist in item records in Club Profit due to manual entry.

Ordering Product:

  1. The Golf Head Pro places an order(s) for items in the fall for delivery in the spring.
  2. If orders exceed establish buying limit of $10K, orders are directed to a secondary approver (Matt Baughan ; jmb72@cornell.edu [Buyer]; Jeff Hall; jwh33@cornell.edu [Primary Approver], Department GM).
  3. When orders are delivered, the Asst. Golf Professional counts the items received to ensure accuracy of item SKU, pricing, and counts.
  4. Golf Head Pro enters quantities received in the Club Profit System to update inventory on hand.
  5. If PO does not match order as received, Asst. Golf Professional contacts vendor directly. to request an adjustment or credit memo. Credit invoices are sent to Golf Head Pro, and the credit is applied against the next invoice.  If a credit is expected and it is not reflected on the next invoice, the Golf Head Pro contacts the vendor for a corrected invoice.
  6. Vendor bills the Golf Pro Shop and submits invoice to the SSC for payment.
  7. SSC team verifies 3-way match of vendor invoices to the receiving documents and PO in KFS and processes invoices for payment.

Annual Physical Inventory Count:

  1. Golf Head Pro prints the count inventory sheets from the Club Profit System to be used to conduct the physical inventory counts.
  2. Golf Professional counts the physical inventory in the store and the storage location and updates the count inventory sheets.
  3. Golf Head Pro updates the Club Profit System with inventory count amounts.
  4. Variances are reported to Athletics finance team and recounts are done to verify differences and confirm an error was not made on the physical count.
  5. Once final, the Golf Head Pro scans the inventory count sheets and the inventory on hand reports and sends to the SSC for recording any adjustments in the GL.

Shared Services Center (SSC):

  1. The SSC compares the manual count inventory sheets by supplier to the Inventory on Hand reports to check for discrepancies.
  2. If variances are identified, the SSC contacts the Golf Head Pro for resolution.
  3. COS is calculated in an Excel file by the SSC staff due to Golf having two separate systems for sales and inventory.
  4. The SSC records the inventory adjustment to COS in the KFS general ledger.

Key Risks

Key Controls

Risk of the same individual ordering and receiving product, allowing opportunity for fraud

1.       Ordering and receiving processes are segregated to two different individuals at the Golf course.

Risk of individuals having too much control in the inventory process.

1.       One individual counts the product and another updates the inventory system.

2.       Variances in physical counts to on hand amounts are investigated and reported to the Golf Head Pro and are corrected in the point of sale system.

Risk of inventory misappropriation

1.       Due to the size of the location, physical counts are only done twice annually.

2.       Only the Golf Head Pro has access to the storage facility.

3.       The Golf Pro Shop is locked and alarmed after hours, however there is no security camera in the store.

Value of inventory could be incorrect due to costing entry errors

1.       Each time an invoice is received, the cost of the item is verified and updated by the Golf Head Pro.  This cost is reflected on the inventory on hand report and can be verified in the extended inventory cost.  The point of sale system will show the history of costing updates.  Inventory is costed at last price paid.

Returns may not be credited by the vendor

1.       Product is not generally returned.  If a return is necessary, the credits are reflected in the account. Golf Head Pro can see the credits on the statement and can ensure that the credit is used against the next invoice.

Cornell Finance Staff

  • Monitor inventory values, adjustments and fluctuations to identify possible fraud
  • Monitor inventory value on hand to ensure inventory is being managed appropriately (is value on-hand consistent with best practices).
  • Monitor inventory turns to identify slow moving merchandise that may need to be eliminated from the inventory portfolio.
  • Monitor Pro Shop profits/losses to identify any changes.
  • KFS – Kuali Financial System
  • OAS – Oracle Analytics Server, financial reporting tool (formerly known as OBIEE)
  • GL – General Ledger
  • SSC – Shared Services Center that processes financial transactions for Athletics

Flow Chart - Golf Pro Shop Inventory Management

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