Internal Control Manual

IMA-KOREA REGION

MWR DIVISION

INTERNAL CONTROL

MANUAL

TABLE OF CONTENTS

1. Army Recreation Machine Program2. Bar Regulations

3. Beverage Controls

a. Cash Controls

b. Sales Accountability

c. How to take a Bar Inventory

d. Physical Security4. Quick Shot Bonanza Bingo Program

5. Breakage/Spoilage Accountability

6. Cash Deposits and Safe Security

7. Cash Register Operation

a. DA Form 4082 (Daily Cashier's Record)

b. Change Fund Issue and Turnin

c. Overage and Shortage Logs

8. Check Cashing and Charge Cards Acceptance Procedures

9. Department of the Army & Eighth United States Army Standards10. Document Control

11. Draft Beer Accountability

a. Sales Accountability

b. Expected Sales Method

c. Keg Scales

d. Draft Beer Control Meters

e. Flow Meters

f. Beer Foam Control Devices

g. Cooperage

12. Employee Meals

13. Fixed Assets

a. Requirements

b. Depreciation

c. Property Accountability

14. Inventory Control

a. Physical Inventories

b. Perpetual Inventories

c. Sensitive Item Inventories

d. Central Storeroom Requisition

e. Stock Record Cards/Bin Cards

f. Inventory Turnover Rate

15. Key Control

a. Key and Lock Custodian

b. Key Depository

c. Master Inventory List

d. Key Control Register

e. Permanently Issued Keys

f. Inventories

g. Forms

16. Management Information Systems

a. RecTrac

b. GoIfTrac

c. ALPMS

17. NAF GPC card18. C.A.R.E. EDI

19. Petty Cash

20. Proper Usage of Accounts

21. Sales Accountability

a. Sales Accountability Tests

b. Variances

c. Scatter Sheets

d. Bar Sales Accountability

e. Food Sales Accountability

f. Cover Charge Accountability

22. Standardized Recipes and Cost Cards

23. Surprise Inventory/Cash Counts

24. Time and Attendance25. Checklists

1. Army Recreation Machine Program (ARMP)

1. References:

a. AR 215-1, Chapter 8.

b. ARMP SOPs OP-F002; OP-FOO3,OP-FOO4,OP-FOO5,OP-FOO7, and OP-C020.

2. Recreation Machine Operations:

a. General:

(1) Recreation machines may be installed and operated in overseas MWR activities unless prohibited by local laws, SOFAs, or other local agreements.

(2) The ARMP machines and equipment are owned and maintained by ARMP. No other activity contracts for the provision or maintenance of ARMP property are authorized, under any circumstance.

(3) Participating MWR facility personnel must have a general understanding of and comply with governing Army regulations and ARMP's management policy and internal controls.

(4) ARMP provided equipment and keys are handreceipted to the MWR facility manager, or other responsible authority, for control and accountability.

(5) All keys must remain locked in a controlled safe when not in use.

(6) ARMP equipment is serviced at ARMP's discretion. This includes preventive maintenance and regular repairs provided by either ARMP personnel or a separate contractor of ARMP's choosing. Facilities must contact the local ARMP field office whenever service is required on any ARMPsupplied assets.

(7) If machine vandalism is a result of facility's machine area control neglect, costs to repair or replace damaged equipment are charged to the facility.

b. Change Funds:

(1) Maintaining an adequate and convenient change fund significantly impacts revenue. ARMP recommends change fund amounts based on historical statistics. Generally, a change fund that is 120% of the largest average gross drop is sufficient.

(2) The location must provide coins in exchange for bills (and bills for coins) to patrons in any reasonable amount requested.

(3) The change fund must be separate from any other change funds maintained by the location.

c. Patron Payment Vouchers:

(1) Machine status and claim validity must be determined when a patron asserts payment is due from a tilted machine.

(2) Refer to ARMP SOP OPCO20, "Machine Directed Pay/Patron Payment Voucher (PPV) Preparation" for specific instructions and completed Patron Payment Voucher examples.

(3) Forms must be prechecked by a location representative to ensure information is correctly recorded. Only correctly completed, valid, signed claims are reimbursed.

(4) After an ARMP technician has verified the Patron Payment Voucher, it is given to the ARMP representative for location reimbursement during the regularly scheduled cash collection.

d. Maintenance:

(1) Facility representatives have two basic responsibilities during machine maintenance:

(a) Note beginning and ending door meter readings. (Door meter verification must be annotated on the Machine Report).

(b) Ensure that funds integrity is maintained while the machine door is open.

(2) A facility representative will be available whenever a technician needs to open a machine to perform service.

(3) The technician and machine interior must be clearly visible to the facility representative at all times during maintenance.

(4) The location representative must verify Machine Report machine door meter reading accuracy, sign Machine Report certification, and ensure that machine door is locked before leaving the machine area.

e. Hopper Refills:

(1) The facility provides necessary funds for hopper fills from their change fund.

(2) Coin counters must be used to count the number of coins required for the fill. The count must be witnessed and verified by three individuals: the ARMP technician, facility representative; and the command representative/witness.

(3) The facility representative must sign the Hopper Refill Voucher, retain original (white copy) and first (green) copy in a secure place, and submit both copies for reimbursement during next scheduled cash collection. NOTE: BOTH copies MUST be presented to receive reimbursement.

f. Patron Payment Vouchers (PPV):

(1) Technicians must review PPVs before correcting the machine collection.

(2) Overpayments on PPVs are the facility's responsibility. NOTE: ARMP will only reimburse the correct amount.

(3) The ARMP representative will not accept a PPV for reimbursement if it has not been properly completed and verified by an ARMP technician.

(4) If an ARIVIP verified PPV is not submitted at the next, regularly scheduled cash collection, the ARMP cash collector can refuse reimbursement.

g. Cash Collection/Funds Deposit:

(1) Cash is collected by a cash collection team that includes a representative from

the activity and the ARMP. (Under no circumstances are cash collections to be conducted unless both representatives are present).)

(a) Normally, cash is collected once weekly. Based on volume of play at the activity, collection frequency is adjusted at the discretion of ARMP in coordiantion with the community commander.

(b) Keys are issued to the collection team and are secured and/or accounted

for at all times. Both collection team members record and verify meter reading unless an electronic data collection system is used.

(c) Monies collected are not counted or rolled in the presence of patrons.

Machine areas are closed to patrons during collection either by closing the room or roping off the area.

(d) Both collection team members verify and initial the deposit slips.

(e) All original collection and deposit documents are forwarded to the ARMP

office.

(f) All keys are returned to the key control custodian prior to the end of the day.

(g) The local command will provide command representatives for periodic,

unannounced cash collection observations. Observations should be made at least once per quarter in each location. The local command will coordinate with the local ARMP field office after the observations have been completed and communicate any issues identified during the cash collections to the ARMP field office manager.

(h) The ARMP will privide effective control and accountability of funds through

its system of internal controls during the drop process and through subsequent independent analysis. These control will consist of the two party drop team to prevent theft, periodic unannounced CFSC audit team observations of cash collections to ensure adherence to ARMP SOPs, and systmatic review of each cash collection to reconcile cash and coin counts with documented meter readings. All variance exceptions to established parameters will be researched, evaluated, and reconciled. Additionally, where resources permit, regular rotation of cash collectors and technicians will be practices.

(2) The facility will deposit funds in currency only (no checks). Deposit tickets are not valid unless prepared by the ARMP representative. Deposits must be made no later than close of business the day after the cash collection is completed.

(3) The facility must request a military police/armed guard escort when deposit total is equal to or greater than $5,000, IAW AR 2152, Chap. 78, para. g (5).

h. Bill Changers:

(1) Bill Changers must be secured either to the floor, a wall, or a slot machine stand without restricting machine door access.

(2) Funds are part of the facility's change fund. The facility assumes responsibility for bill changer funds security. Bill changer keys should be retained in a safe when not in use and strictly controlled by the facility manager.

(3) Customer claims of shortchanging are the facility's responsibility, not ARMP's. If facility suspects a bill changer malfunction they should: shut down the

machine; place an "Out of Order" sign on the bill changer; and call the ARMP field office to request maintenance.

(4) The facility manager should maintain a bill changer money transfer ledger (see example exhibit A).

ARMY RECREATION MACHINE PROGRAM

Bill Changer Money Transfer Ledger

METER

READINGBILLS REMOVED

$1 $5 $10 $20 $TOTAL COINS

ADDEDNOTES

I

Exhibit A Bill Changer Money Transfer Ledger

2. BAR REGULATIONS

1. Reference: AR 215-1, Chapter 7.

2. The minimum age for the purchase of alcoholic beverages by any patron of the overseas military retail system is 18. Decision on a higher minimum age is based on international treaties and agreements and the local situation. USFK has set the age at 20.

3. Only NAFI employees will dispense and serve alcoholic beverages on a military installation.

4. All employees involved in selling alcohol will be trained within 30 days of hire and then at least annually, on subjects such as the effects of alcohol, how to identify intoxication and what to do when a person becomes intoxicated. Managers will use the Alcohol Sellers and Intervention Program (ASIP) or other approved programs. This training will be documented in the employees' file.

5. Alcohol may not be given away as prizes. The only exception to this will be wine products that are given away to eligible club patrons to accompany dinner on their wedding anniversaries, birthdays, or similar occasion.

6. No more than one drink will be served to a customer for consumption at a time. Serving alcoholic beverages to an intoxicated customer is prohibited.

7. Reduced prices or providing unlimited alcoholic beverages for MWR promotional activities, such as happy hour, are prohibited. Activities may conduct food promotions where the price of an alcoholic beverage is included in the meal/event. Customers must be given the choice, however, of a nonalcoholic beverage substitute.

8. Inhouse promotions, such as coupons, free samples or any other similar means of offering free or reducedprice alcoholic beverages to promote or advertise the sale or consumption of specific brands of alcoholic beverages are not authorized.

9. Bonafide beverage tastings are authorized.

10. Privately owned alcoholic beverages will not be brought into any facility where alcoholic beverages are sold by the drink.

11. Alcoholic beverages may not be transported off the installation for use at offpost catered functions.

3. BEVERAGE CONTROLS

1. Reference: DA Pam 230-5-3.

2. Beverage controls are divided into three categories:

Cash controls

Sales accountability and beverage inventories

Physical security

3. Cash Controls.a. Cash controls ensure that all cash assets are protected from loss through carelessness and dishonesty. The following steps can ensure a smooth auditable flow between change funds, cash receipts and related documents:

(1) At the beginning of the shift the bartender should:

(a) Pick up and sign for the change fund. This is done on a DA Form 4082 (Daily Cashier's Record) prepared in duplicate. The original is retained in the safe and one copy serves as a bartender's receipt.

(b) If guest checks, or any other prenumbered forms, are issued to the bartender, these will be controlled by using the applicable section of the DA Form 4082.

(2) During the work shift the bartender should:

(a) Ring in all sales individually at the time of purchase.

(b) Collect the cash.

(c) Make change.

(d) Provide receipts if required. If sale rung up in the cash register is visible to the customer, a receipt is not required.

(3) At the end of the work shift the bartender should:

(a) Remove the cash from the register and leave the register drawer open.

(b) Count cash in the presence of the manager or cashier, in the cashier's cage or manager's office.

(c) Complete the DA Form 4082.

(d) Ensure that any errors are properly documented

(4) At the end of the work shift the manager or designated representative will:

(a) Take a register reading.

(b) Verify cash count.

NOTE: No register operator will read their own register.

4. Sales Accountability and Bar Inventories.a. Bar sales accountability controls permit management to monitor each bartender's effectiveness in maintaining established standards.

b. Bar inventory usage figures determine expected sales. The dollar difference between expected sales and actual sales is considered overage or shortage.

Beg Inv. + Issues in - Transfers out - End. Inv. = Inventory used x Selling price = Expected Sales; Inventory used x Cost price = Total cost

c. Each bar should be considered as a separate operation with its own sales accountability. No bartender will share an inventory or a cash drawer with another bartender.

d. Maximum allowable variance for alcoholic beverage service is 2%.

e. Bar Sales Accountability Forms (Enclosure 3-1) can be designed by the local activities and at a minimum should include:

(1) Bottle weight in ounces (tare weight). To determine the tare weight of a bottle, place the bottle on a mechanical bar inventory weighing scale. Considering the bottle size (i.e. 750 ml, Lt., etc.) rotate the outer ring of the scale until the ounce contents number of the bottle lines up with the indicated "0". The ounce content of a 750 ml bottle is 25, and a liter bottle is 33. This number also indicates the tare setting number. Tare weights should be recomputed periodically.

(2) Brand Name of the beverage.

(3) Beginning Inventory of each item.

(4) Received/Transferred items are those that have been issued to, or transferred out of the bar during that specific operating period.

(5) Ending Inventory of each item.

(6) Ounces/Bottles Used:

Beg. Inv + Issues in - Transfers out - End Inv = Inventory used

(7) Sales Price is the selling price of one unit.

(8) Sales Total Inventory used (F) x Sales price (G )= Total sales (H)

(9) Cost Price Is the cost price per sales unit.

(10) Cost Total Inventory used (F) x Cost price (1) = Total cost (J)

(11) Key Subtotals The subtotal of the expected sales of all items rung up on a specific key.

(12) Key Subtotals The subtotal of the cost of all items used for a specific key.

(13) Closing Register Readings Attained from the register tape at the completion of the shift.

(14) Opening Register Readings Attained from the register tape at the beginning of the shift.

(15) Sales per Register The difference between the closing and opening register readings.

(16) Expected Sales Per Inventory Brought down from the subtotals (K).

(17) Difference is the main purpose of completing the sales accountability. It is the difference of the actual sales as per the register and the expected sales as per the inventory. (O - P)

(18) Variance % is the difference (Q) - the total sales (P) x 100. As stated above, the maximum allowable variance is 2%.

(19) Variance Explanation explains any notable differences.

(20) Inventoried By is the signature of the person conducting the inventory. The inventory may NOT be completed by the bartender for whom the sales accountability is performed.

(21) Verified by should be signed by the manager upon review of the inventory.

(22) Bartender's Signature shows the bartender's responsibility for the inventory during the period for which the sales accountability was performed.

f. A bartender's variance log is maintained on each bartender. This log contains the data that is pertinent for your operation, to include name or location and date of bar operation, cash overages or shortages and results of bartender inventories. A variance log identifies bartender trends and is an effective management tool when coordinating personnel actions with your servicing CPAC, if necessary.

g. A number of factors can cause a discrepancy between expected and actual bar sales:

(1) Incorrect serving size.

(2) Lack of accountability on soft drink sales and juices.

(3) Spillage.

(4) Improper documentation of errors or returned drinks.

(5) Tare weight inconsistencies.

(6) Incorrect pricing.

(7) Nonstandard bar recipes.

(8) Incorrect inventory or extension.

(9) Poorly calibrated scales.

h. Causes of discrepancies should be determined and documented on the sales accountability statement. Bartenders who do not perform within acceptable standards should be counseled and rechecked on their next shift. Continued shortages/overages in excess of the maximum variance (2%) warrant further counseling and possible personnel action in accordance with CPAC guidelines.

5. Physical Security.a. Bar beverages and supplies should be stored under lock and key. The keys to the bar areas should be controlled through the use of a key control log; accessible only by authorized employees (supply clerks/managers).

b. A perpetual inventory is maintained for sensitive and high dollar-value items. This includes all beer, wine and liquor items (See Inventory Control)

PROGRAM CODE

KD-KGLOCATION CODE

S4CIUB NAME

CAMP LONG CLUBDATE

20 SEP 01

BT

WT

(OZ)

(A)BT

SZ

(A)P

A

RDESCRIPTION

(B)BEGIN

INVEN

(C)REC

TRAN

(D)TOTAL

AVAIL

SALE

(CD)END

INVEN

(E)USED

(F)SALES

PRICE

(G) (H)COST

PRICE

(I) (J)

BTOZBTOZBTOZBTOZOZEATOTEATOT

(KEY #1) BAR

MINIATURES LIQ

SCOTCH WHITE HORSE2.500.47

SUB TOTAL

(KEY #2) WELL BRANDS

BAILEY'S IRISH CREAM552.500.70

IRISH MIST LIQUEUR552.500.65

GIN GILBEY'S25252.500.40

GIN GORDONS262062.5015.00 0.321.92

GIN SEAGRAMS333122.505.00 0.32.64

RUM BACARDI AMBER10102.500.18

RUM BACARDI SILVER181082.5020.00 0.191.52

VODKA GILBEY'S25252.500.26

VODKA SMIRNOFF12122.500.30

VODKA GORDONS12662.5015.00 0.412.46

TEQUILA OLMECA SILVER2.500.86

BOURBON JIM BEAM333032.507.50 0.30.90

BOURBON TEN HIGH11212.50 0.37

WHISKEY SEVEN CROWN2622.500.40

SUB TOTAL (KEY #2)62.50

(K)7.44

(L)

(KEY #3) CALL BRANDS

TEQUILA OLMEGA GOLD2.750.84

SCOTCH J & B RARE2.750.58

GIN BEEFFEATHER30302.750.40

GIN TANQUERAY25252.750.52

BOURBON JACK DANIELS26262.7 0.33

WHISKEY WILD TURKEY1052.75 13.75 0.361.80

SUB TOTAL (KEY #3)13.75

(K) 0.291.80

(L)

SAMPLE DA FORM 4535-R

Enclosure 3-1

PROGRAM CODE

KD-KGLOCATION CODE

S4CLUB NAME

CAMP LONG CLUBDATE

20 SEP 01

BT

WT

(OZ)BT

SZ P

A

RDESCRIPTIONBEGIN

INVENREC

TRANTOT

ON

HANDEND

INVENUSEDSALES

PRICECOST

PRICE

EACHEACHEAEACHEAEATOTEATOT

(KEY #7) BEER

BUDWEISER 12/24 CAN1.500.30

BUDWEISER 12/24 BTL1209030 1.5045.00 0.309.00

BUDWEISER LITE 12/24 CAN1.500.30

BUDWEISER LITE 12/24 BTL603030 1.5045.00 0.309.00

BUDWEISER ICE 12/24 CAN1.500.30

BUDWEISER ICE 12/24 BTL12121.500.30

MILLER LITE 12/24 CAN1.500.30

MILLER LITE 12/24 BTL65605 1.507.50 0.321.60

COORS 12/24 CAN1.500.32

COORS 12/24 BTL85805 1.507.50 0.301.50

COORS LITE 12/24 CAN1.500.30

COORS LITE 12/24 BTL12010020 1.5030.00 0.255.00

O'DOULS 12/24 CAN1.500.30

O'DOULS 12/24 BTL661.500.41

OB 12/24 CAN1.500.86

OB 12/24 BTL1.500.30

KINGS BURY 12/24 CAN1.500.37

DRAFT BEER 12 OZ1.250.13

DRAFT BEER 16 OZ1.500.17

PITCHER BEER 60 OZ4.950.62

ICE HOUSE 12/24 BTL1.500.31

SUB TOTAL135.00

(K)26.10

(L)

(KEY #8) BEER0.33

MICHELOB 12/24 CAN1.750.33

MICHELOB 12/24 BTL25186 1.7510.50 0.331.98

RED WOLF 16/20 BTL1.750.35

ICE HOUSE 16/2010101.750.36

SUB TOTAL10.50

(K)1.98

(L)

SAMPLE DA FORM 4535R

PROGRAM CODE

KD-KGLOCATION CODE

S4CLUB NAME

CAMP LONG CLUBDATE

20 SEP 01

BT

WT

(OZ) BT

SZ P

A

RDESCRIPTIONBEGIN

INVENREC

TRANTOTON

HANDEND

INVENUSEDSALES

PRICECOST

PRICE

BTOZBTOZBTOZBTOZOZOZTO

TOZTOT

(KEY #14) SUNDRY

PEANUTS COCKTAIL 12/121.500.30.

PEANUTS HONEY ROAST1.500.30

SALTED MIXED NUTS 12 OZ1.500.30

MIXED NUTS 12/12 FISHER1.500.30

M & M PLAIN CHOCOLATE1.500.32

CANDY 6 OZ MUSKETEERS1.500.30

CANDY MILKY WAY BAR 6 PKG1.500.30

CANDY KRACKEL HERSHEY1.500.86

CANDY MR TWIX PKG1.500.37

M &M PEANUT 16 OZ1.500.17

CANDY SNICKERS PKG1.50 0.31

SUB TOTAL(K)(L)

KEY 2KEY 3KEY 7KEY 8TOTAL

CLOSING REGISTER READING (M)62.5013.75133.5026.10235.85

OPENING REGISTER READING (N)00000

SALES PER REGISTER (O)62.5013.75133.5026.10235.85

EXPECTED SALES PER INVENTORY (P) 62.50(K)13.75135.0026.10237.35

DIFFERENCE (Q)(1.50)

VARIANCE % (R) .6%1. SALES PER REGISTER $235.85

VARIANCE EXPLANATION (S)2. COST OF SALES (Tot all L's) $37.32

1 BOTTLE BUDWEISER BROKEN.3. PROFIT (1. LESS 2.) $198.53

COST OF GOODS (2. / 1.) = % 16%

INVENTORIED BY: (T)VERIFIED BY: (U)

NAME OF BAR: MAIN BAR DATE: 20 SEP 01NO.PAGE__ OF____ PAGES

Bartender's Signature: (V)

SAMPLE DA FORM 4535R

4. QUICK SHOT BONANZA BINGO PROGRAM

1. Reference: AR 215-1

DOD Financial Management Regulation 7000.14-R, Volume 13

U.S. Army Community and Family Support Center Bingo Manual

2. Quick Shot Bonanza Bingo is similar to instant win games, but it is played much like regular bingo. The numbers are called and verified prior to each session. Quick Shot Bonanza Bingo is played with folded bingo cards printed on special paper, perforated along the edges and sealed at the top. Only 24 numbers are called prior to each session and there are 12 different winning patterns, each with a prize assigned to it. All bingo cards are sequentially numbered within a series of 9,000 and are available in several different colors.

3. Authorized patrons:

a. All military members (regardless of rank), installation civilian personnel and

their families 18 years of age and older.

b. Bona fide guests 18 years of age and older.

c. Employees working in a MWR activity may participate in bingo sponsored

by an unrelated activity, if they are otherwise eligible.

4. Unauthorized patrons:

a. MWR managers.

b. The DCA (or equivalent)

c. All employees of the sponsoring activity and their immediate family members.

d. Volunteers serving as callers or monitors at the sponsoring activity.

e. Commanders may impose additional local restrictions as considered appropriate.

5. Facility procedure:

a. Determine the length of your session: daily, weekly, or monthly. Daily sessions add more excitement with new numbers being posted each day, while monthly sessions may become stale for the players. Weekly sessions are the most common.

b. Before the regular session starts, post 24 numbers, the first five numbers called for each of the letters B, I, G, and O and the first four numbers for the letter N. The numbers are verified by the Bingo Manager and a disinterested party (customer) and annotated on a Bingo Verification Sheet with signatures from both parties (Encl. 4-1).

c. Once the numbers are verified, the next session of Quick Shot Bonanza Bingo session can commence. The numbers are posted on a bingo board and/or flyer with the pattern/prize schedule for the bingo player to easily see and use (Encl. 4-2).

d. Begin the next session of Quick Shot Bonanza Bingo.

e. Quick Shot Bonanza Bingo cards may be purchased and redeemed each day during normal operating hours. All card sales are final.

f. Employees will sell Quick Shot Bonanza Bingo cards in numerical order, starting from the beginning serial number.

g. All cards must be date stamped at the time of sale.

h. The player, with a Dauber, ink pen or similar item, MUST permanently mark Quick Shot Bonanza Bingo cards. No bingo chips may be used to mark the Quick Shot Bonanza Bingo cards.

i. No player can use the same number to make more than one pattern on a card. If multiple patterns can be made without using the same number, it is a multiple winning card and should be awarded the appropriate prize for each winning pattern.

j. When a player has a winning pattern, he or she can cash it in for the prize, once the card has been verified.

k. Players have seven (7) calendar days from the day a card was date stamped to collect their prize.

5. Internal Controls:

a. All Quick Shot Bonanza Bingo cards will be kept in a secure location and treated as if they were money.

b. Management of each location with Quick Shot Bonanza Bingo will maintain a perpetual inventory of all cards received, all cards transferred out, all cards at point of sale (on DA Form 4082), and all cards sold (Encl. 4-3, 4-4).

c. All cards sales are final. This is for the customers protection as well as the facility. The customer will count the cards before he/she leaves the point of sale. The facility is not responsible for discrepancies after the customer leaves the point of sale.

d. Only personnel employed by the sponsoring activity may control and sell Quick Shot Bonanza Bingo.

e. Bingo cards will be pre-numbered.

f. Quick Shot Bonanza Bingo cards will be date stamped at the time of sale.

g. At the start of the shift, the cashier will sign for the starting and ending number of the Quick Shot Bonanza Bingo cards and the total number thereof verifying that all cards in between are in place on DA Form 4082. At the end of the shift, management will review the numbers of the bingo cards. The difference between the starting number and the ending number is the total number of cards sold. This number should match the number of cards that were rung up on the cash register and the cash received (Encl. 4-5, 4-6).

h. If multiple activities at the same installation are sponsoring Quick Shot Bonanza Bingo, different colors should be used by each activity to determine where it was purchased.

i. Variances must be tracked by individual cashier; any variance must be explained in writing and employee counseling initiated.

6. Quick Shot Bonanza Bingo Winners:

a. When a bingo card is turned in by the customer for a prize award, the card must be validated. Cards are not valid if any number is torn out or if the card is mutilated to the point where the numbers can not be read.

b. Bingo cards may only be awarded a prize payout at the activity in which it was purchased.

c. Players have seven (7) calendar days from the day a card was date stamped to collect their prize. Winning tickets are no longer valid and can not be redeemed after seven (7) days.

d. If the above criteria are met, confirm that the right bingo numbers and prize sheet are being used to validate the numbers in the winning pattern on the given card. Facility personnel will verify the winning pattern.

e. A prize sheet is filled out and signed by the winner (Encl. 4-7).

f. Winning cards are attached to the daily paperwork and retained with the Daily Activity Report (DAR) by the facility for three years.

g. Copies of winning cards will be made available upon request.

Enclosure 1

5. BREAKAGE AND SPOILAGE

1. References:

a. DA PAM 230-5-2.

b. DA PAM 230-5-3.

c. DOD 7000.14-R, VOL 13.

2. In the event that Breakage and Spoilage is found in the storage, kitchen, or bar area, DA Form 4080 (Transfers Between Activities) or FoodTrak Transfer Between Activities will be used to notify CAO.

3. In the case of broken or spoiled storeroom stocks, an audit trail must be established. The bin cards must be adjusted indicating the amounts broken or spoiled and a DA Form 4080 initiated (Enclosure 5-1).

4. Raw food and beverage items thought to be spoiled or obsolete will be inspected by management. A request to write off these items as spoilage or obsolescence will be approved in writing by the DCA. A copy of the authorization will be filed with the DA Form 4080. The value of these items will be transferred from the COGS account (GLAC 454) to the Resale Merchandise Spoilage, Breakage, and Obsolescence Expense account (GLAC 654).

5. When unprepared food is judged spoiled, a post veterinarian statement will be obtained and attached to the DA Form 4080.

6. Leftovers will NOT be transferred to spoilage. This is a direct result of improper forecasting/planning and therefore will be considered a direct COGS.

7. Trimmings from meat and vegetables will be absorbed into the cost of doing business and will NOT be transferred to spoilage. (SEE Chapter 21)

8. The issuing and receiving activity will keep file copies of the DA Form 4080.

9. Management must ensure that all breakage and spoilage is discarded the day it is written off.

TRANSFERS BETWEEN ACTIVITIES

For use of this form, see AR 215-5; the proponent agency is USAFACFUND

010TRANSFER NUMBER

100

INSTALLATION (Name & Address)

CAMP CASEY

STOCK NUMBERDESCRIPTIONUNITQUAN-

TITYUNIT PRICEAMOUNT

001Ground BeefIbs101.2612.60

002Hamburger Bunspkg51.155.75

TOTAL:2.4118.35

DATE

2-Jan-01ISSUING ACTIVITY

Food Cost of Goods, GLAC 454SIGNATURE OF MANAGER

DATE

2-Jan-01RECEIVING ACTIVITY

Breakage & Spoilage, GLAC 654SIGNATURE OF MANAGER

2-Jan-01TRANSFER AUTHORIZED BY

Prirno's ClubSIGNATURE

DA FORM 4080, JUN 73

Enclosure 5-1

6. CASH DEPOSITS AND SAFE SECURITY

1. References:

a. AR 2151, Appendix G.

b. AR 3805.

2. Daily cash receipts may be retained at the activity until the total onhand amounts to $500 or until 7 days has elapsed since the last deposit. Deposits must be made on the last business day of the month, regardless of the amount.

3. The bank deposit slip will be prepared in triplicate:

a. Original deposit slip is retained by the bank.

b. The duplicate will be sent to CAO with the Daily Activity Report.

c. The triplicate will be retained by the activity and attached to their copy of the Daily Activity Report.

4. Daily cash receipts are deposited:

a. In the local bank as soon as possible after the close of the business day.

b. Over the counter if the time of deposit coincides with banking hours.

c. In the night depository if the deposit is made before or after banking hours.

d. If no night depository is available, each deposit is held in a locked safe and deposited at the start of the next business day.

5. Cash receipts will not be used to increase the amount of the change fund. If an increase in the change fund is authorized, a check will be requested by the activity, issued to the activity through the CAO, and cashed at the local bank.

6. Daily cash receipts and cash funds must be stored in a locked, fire resistant safe with a combination threetumbler lock until they are deposited. File cabinets specifically designed as security containers that are fire resistant and have the same type of lock are acceptable.

7. Regardless of the type of container, it must be chained or otherwise secured to the building (if it weighs less than 500 pounds) and checked before the building is closed to ensure that it is locked. Open safes are never left unattended.

8. Combinations must be changed:

a. When placed in use.

b. Whenever an individual knowing the combination no longer requires access.

c. When the combination has been subject to possible compromise.

d. At least annually.

e. When taken out of service. Builtin combination locks shall be reset to the standard combination 50-25-50; combination padlocks shall be reset to the standard combination 102030.

9. Each combination change is recorded on Standard Form 700 (Security Container Information) (Enclosure 6-1). The first page is affixed to the inside of the lock drawer of the container. The combination is then detached and placed in the SF 700 envelope, sealed and deposited with the installation MP's or security officer. All original Standard Form 700's will be hand delivered (NOT SENT THROUGH DISTRIBUTION). Only personnel listed on the SF 700 will have access to the combination.

10. A Fund Authorization Letter (Example at Enclosure 6-2) prescribes the exact amount of each change fund. The fund authorization letter is prepared by the Financial Management Director and approved by the DCA and should be attached inside the safe containing the appropriate change fund. This documents the amount of funds that should be in the safe at all times. If an independent audit were to take place, this would inform the auditors how much money that the location is authorized and responsible for.

11. Change funds may be maintained for daily operations such as check cashing, foreign currency exchange and cashier banks. Change funds and other cash funds in excess of $100 are kept in a locked safe.

12. Locking file cabinets, other than an approved security container equipped with a three-tumbler combination lock, are not adequate for holding cash in excess of $100.

13. Keys to locking file cabinets used to safeguard less than $100 will not be stored in unlocked containers (i.e. desks) nor given to unauthorized personnel. Containers will be checked before the close of business to ensure they are locked. Locks on those containers will be changed whenever personnel with keys are no longer authorized access.

14. Standard Form 702 (Security Container Check Sheet) (Enclosure 6-3) will be used as a checklist for all security containers and safes of the DCA. This form will be conspicuously displayed on all security containers and safes and will be completed whenever a security container is opened or closed.

15. Standard Form 702 (Security Container Check Sheet) will be annotated with the date, time and initials of the individual when the container is opened and when the container is locked. It will also be annotated by a witness in the "Checked By" column. If a safe is not opened, it will be reflected on Standard Form 702 to include time and initials of the individual checking the safe at the end of the day. It is recommended that the SF 702 be retained at least 24 hours following the last entry.

16. Upon discovery of an open/unattended security container, individuals listed on Standard Form 700 attached to the inside of the container will be notified.

SECURITY CONTAINER INFORMATION1. AREA OR POST2. BUILDING3. ROOM NO.

INSTRUCTIONSAREA 1, CAMP CASEY1150CASHIER

1. COMPLETE PART I AND PART 2A (ON END

4. ACTIVITY (DIVISION, BRANCH, SECTION OR OFFICE5. CONTAINER NO

OF FLAP).

PRIMOS COMMUNITY CLUB1

2. DETACH PART 1 AND ATTACH TO INSIDE OF

6. MFG & TYPE7. MFG & TYPE LOCKDATE COMINATION

CONTAINER.

CONTAINERCHANGED

3. MARK PARTS 2 AND 2A WITH THE HIGHEST

12-Oct-01

CLASSIFICATION STORED IN THIS CONTAINER

9. NAME AND SIGNATURE OF PERSON MAKING CHANGE

4. DETACH PART 2A AND INSERT IN ENVELOPE

5. SEE PRIVACY ACT STATEMENT ON REVERSE 6.1 RODNEY N. SMITH s/Rodney N. Smith

10. Immediately notify one of the following ersons, if this container is found open and unattended.

EMPLOYEE NAMEHOME ADDRESSHOME PHONE

101-2 BLDG 5, DAELIM APT, SEOUL, KOREA

SUK, I.M.02-734-7896

BLDG 1205, RM 134, CAMP CASEY

PAUL SIMPSON723-8989

1. ATTACH TO INSIDE OF CONTAINER STANDARD FORM 700

CONTAINER NUMBER

COMBINATION

_3__ turns to the (Right)(Left) stop at 30

_2__ turns to the (Right)(Left) stop at 50

_1__ turns to the (Right)(Left) stop at 25

_1__ turns to the (Right)(Left) stop at 10

WARNING

THIS COPY CONTAINS CLASSIFIED INFORMATION

WHEN COMBINATION IS ENTERED.

UNCLASSIFIED UPON CHANGE OF COMBINATION.

"The portion to the left is inserted Into an envelope."Enclosure 6-1

EANCHGCA 24 October 2001

SUBJECT: Schedule of Authorized Cash Funds for Nitewatch 11 Club

Program/Location: KG/R4:

DOLLARS($)WON

1. Petty Cash Fund

2. Change Fund2,400.00100,000

3. Slot Machine Fund

125,000.00

4. Check Cashing Fund

5,000.00

5. WON Conversion Fund

6. Bingo Fund2,500.00

TOTAL FUND$134,900.00

100,000WON

ISSUED BY: ___________________

DAVID J. WATSON

Director, Community Activities

RECEIVED BY: ___________________

CHONG, OK CHA

Club Manager

Enclosure 6-2

SECURITY CONTAINER CHECK SHEET

TO (if required) THRU (if required)

CERTIFICATION

I CERTIFY, BY MY INITIALS BELOW, THAT I HAVE OPENED, CLOSED OR CHECKED

THIS SECURITY CONTAINER IN ACCORDANCE WITH PERTINENT AGENCY

REGULATIONS AND OPERATING INSTRUCTIONS.

MONTH/YEAR DEC 2001

DATEOPEN BYCLOSED BYCHECKED BYGUARD CHECK

(if required)

INITIALSTIME INITIALSTIMEINITIALS TIME INITIALS TIME

12/01NLC0900BNT2330BNT2330

STANDARD FORM 702

Enclosure 6-3

7. CASH REGISTER OPERATION

1. Reference: AR 2151, Appendix G.

2. Where available, cash registers will be used to record all sales. Receipt voucher

(DA Form 1992) will be used to record any sales not rung through a register (i.e., room rental fee).

3. The sales amount displayed on the register should be easily seen by the customer. For food and beverage operations, internal controls are satisfied by using a cash register that visually displays the sales amount and can be observed by the customer OR by providing the customer with a prenumbered imprinted or written guest check. All other sales transactions will be documented by providing the customer with a pre-numbered sales receipt, imprinted guest check, or with a register kickout tape.

4. Register Change Fund Issue:

a. Will be signed for by the register operator on DA Form 4082 (Daily Cashier's Record) (Enclosure 71).

b. Pre-numbered cash control documents (guest checks, tickets, etc.) will be issued to the register operator at the same time as the change fund using the Form Accountability portion of the DA Form 4082.

c. Once the register operator's signature is received, the DA Form 4082 will be placed in the safe as a receipt for the issued change fund.

5. Only one person will be assigned to a cash register drawer, except for head cashiers in the performance of their duties. If the cash register has more than one cash drawer, then each operator must have his or her own key to the register control for the drawer.

6. Over-rings (ringing up of more than the transaction amount) or underrings (ringing up of less than the transaction amount) are not to be adjusted by subtracting or adding to a later customer sale. They will be voided and verified on the cash register tape and initialed by the cashier's supervisor. The correct sale will be subtracted from sales and explained on the DA Form 4082 (Daily Cashier's Record) and forwarded along with the voided kick-out tape.

7. Cash registers will not be operated with the drawer left open.

8. At the close of business, cash registers will be emptied of cash. The drawers will be kept open with the register controls locked.

9. Cash register readings are essential to internal controls. It involves determining the cash register total recorded sales. Only the manager or his or her representative will take the reading. Cash register operators will not take readings. The cash register will be read at the change of each cash register operator's shift.

10. Clear registers only at the end of the month.

11. Register tape will be attached to the DA Form 4082 as supporting documentation for the register sales.

12. Register Change Fund Turn-in:

a. Individual cashiers will account for change funds, prenumbered cash control documents, and cash receipts. Cashiers are relieved only upon a cash count.

b. Register sales and prenumbered cash control documents will be reconciled with cash collected

c. Unused prenumbered cash control documents will be recorded in applicable blocks of DA Form 4082 (Enclosure 7-2).

d. Used prenumbered cash control documents will be attached as supporting documents to the DA Form 4082.

e. When cash accountability is transferred, the person accepting the cash will verify and document the amount on DA Form 4082. This will be in the presence of the person who relinquishes control.

13. Cashiers will not keep overages. Nor will anyone be required to make up shortages unless that person is held liable as a result of an investigation by proper authorities. Cash overages and shortages will be recorded on DA Form 4082.

14. Overage and shortage logs will be maintained on all employees that handle cash (Enclosure 7-3). Entries will be made for every shift that the cashier completes. If there is no overage or shortage for that shift, it will be annotated as such. Overage/shortage logs identify cashier trends. A cashier who balances every shift with no overage or shortage is just as suspect as one with constant fluctuations. Excessive cash overages/shortages may be grounds for disciplinary action.

15. Overage/shortage logs should include:a. Facility Name.

b. Month/Year.

c. Employee Name

d. Total Register Accountability (recorded sales).

e. Total Cashier Accountability (cash turnedin).f. Overage/shortage in dollars and percentage.

g. Expected Bar Sales Per Inventory where applicable

h. Inventory Over/Short in dollars and percentage where applicable

i. Explanations for variances over I %.

j. Monthly totals.

ACTIVITY/LOCATION

COMM CLUB, CAMP CASEYDAILY CASHIER'S RECORD

For use of this form, see AR 215-5; the proponent agency is USAFAC DATE

12-Nov-01

I. CASHIER ACCOUNTABILITYCHANGE FUND ISSUED

I hereby acknowledge receipt of change fund shown. I accept full responsibility for

the change fund and will turn in this change fund plus all revenue from this

activity's operation to a duly authorized representative of the NAFI at the

completion of my shift.CASH

$200.00 RECEIVED BY (Cashier's signature)

s/Inna Bartender

II FORM ACCOUNTABILITY

FORMBEGINNING NOENDING NOFORMBEGINNING NOENDING NO.

DA 1992123456123460

III REGISTER ACCOUNTABILITY

KEY12345678TOTAL

CLOSING

READING

OPEN READING

REGISTER

CORRECTIONS

NET REGISTER

ACCOUNTABILITY

IV CASH COUNTCASHIER ACCOUNTABILITY

V.

QUANTITYDENOMINATIONAMOUNT

TOTAL CASH AND CHECKS

LESS CHANGE FUND$ 200.00

NET CASH

ADD: TOTAL CREDIT CARDS

COUPONS REDEEMED

OTHER REDEMPTIONS

CHARGES

TOTAL CASHIER ACCOUNTABILITY

LESS: REGISTER ACCOUNTABILITY

CASH OVER (SHORT)

CERTIFICATION FOR TURN IN OF CASH, ACCOUNTABLE ITEMS AND FORMS

TURN IN BY (CASHIER) RECEIVED BY (SUPERVISOR)

TOTAL CASH

REMARKS

DA FORM 4082, FEB 84

Enclosure 7-1

ACTIVITY/LOCATION

COMM CLUB, CAMP CASEYDAILY CASHIER'S RECORD

For use of this form, see AR 215-5; the proponent agency is USAFACDATE

12-Nov-01

I. CASHIER ACCOUNTABILITY CHANGE FUND ISSUED

I hereby acknowledge receipt of change fund shown. I accept full responsibility for the change fund and will turn in this change fund plus all revenue from this activity's

operation to a duly authorized representative of the NAFI at the completion of my shift.CASH

$200.00 RECEIVED BY (Cashier's signature)

s/Irna Bartender

II FORM ACCOUNTABILITY

FORMBEGINNING NOENDING NOFORMBEGINNING NO ENDING NO.

DA 1992123456123460DA 1992123455123460

III REGISTER ACCOUNTABILITY

KEY12345678TOTAL

CLOSING

READING1,223.50325.60752.65

OPEN READING1,023.00320.00683.95

REGISTER

CORRECTIONS0.000.000.00

NET REGISTER

ACCOUNTABILITY200.505.6068.70274.80

IV CASH COUNTCASHIER ACCOUNTABILITY

V.

QUANTITYDENOMINATIONAMOUNT

920.00180.00 TOTAL CASH AND CHECKS$ 476.50

12110012100 LESS CHANGE FUND$ 200.00

146.007100 NET CASH$ 276.50

5011050.00 ADD: TOTAL CREDIT CARDS$ -

430151175 COUPONS REDEEMED$ -

4001104.00 OTHER REDEMPTIONS$ -

350.051.75 CHARGES$ -

1CHECK4010 TOTAL CASHIER ACCOUNTABILITY$ 276.50

LESS: REGISTER ACCOUNTABILITY $ 274.80

CASH OVER (SHORT)$ 1.70

CERIFIFICATION FOR TURN IN OF CASH, ACCOUNTABLE ITEMS AND FORMS

TURN IN BY (CASHIER)

Ima BartenderRECEIVED BY (SUPERVISOR)

D.A. Boss

TOTALCASH$476.50

REMARKS

DA FORM 4082, FEB 84

Enclosure 7-2

EMPLOYEE CASH OVERAGE/SHORTAGE LOG

FACILITY

MONTH/YEAR

EMPLOYEE NAME

TOTAL CASHIERREGISTERCASHEXPECTED BAR SALESINVENTORYEXPLANATION

DATEACCOUNTABILITYACCOUNTABILITYOVER/SHORT%PER INVENTORYOVER/SHORT%OVER 1%/2%

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

TOTALS

EMPLOYEE SIGNATURE

DATE

VERIFIED BY (SUPERVISOR)

EXPLANATIONS

*Note: Explanations required when

overall cash is over 1% or bar inventory

is over 2%.

Enclosure 7-3

8. CHECK CASHING AND CHARGE CARDS ACCEPTANCE PROCEDURES

1. References:

a. AR 21060.

b. AR 2151.

c. USFK REG 6081.

d. Eighth Army Strategic Action Plan.

2. Receiving of Personal Checks At each check cashing point, the following Privacy Act statement or a similar statement will be prominently displayed. NOTICE TO CHECK CASHIERS: DISCLOSURE OF SOCIAL SECURITY NUMBER (SSN) AND OTHER PERSONAL INFORMATION IS SOLICITED BY AUTHORITY OF SECTION 3012 AND 8012, TITLE 10, UNITED STATES CODE, AND IS MANDATORY IF YOU WISH TO CASH A CHECK. ALL INFORMATION FURNISHED, INCLUDING SSN, WILL BE USED TO IDENTIFY WRITERS OF CHECKS.

3. Cashing of Personal Checks:

a. Authorized personnel may cash one personal check, not to exceed the amounts authorized by local command, per day for a small fee at designated MWR activities throughout Korea. These checks must be drawn on American banks or U.S. military banking facilities, and may be cashed depending upon the availability of check cashing funds.

b. Personnel that are within 60 (sixty) days of their ID card expiration date will not be allowed to cash checks at any MWR facilities.

c. Only the sponsor or the spouse of the sponsor may cash checks at designated MWR facilities.

d. No second party checks will be accepted at any MWR facilities.

e. An employee who cashes or accepts a check will initial the check on the upper right hand corner.

f. Dishonored Return Checklist verification will be accomplished for all personnel eligible to cash checks. Employees accepting checks at any MWR facilities for cash or payment will be responsible for verifying the eligibility of the check presenter.

g. Positive verification will be made to ensure patron eligibility (e.g., transit personnel or Eighth Army) status of the person cashing the check, to include:

(1) Valid official ID card.

(2) TDY orders.

h. All checks will be stamped payable to the NAFI facility cashing the check.

i. Personal checks must be preprinted or corrected and verified against a valid I D card with the below listed information:

(1) Name.

(2) Current rank/grade.

(3) Current unit address.

(4) Local work/home phone number

(5) Social Security Number (SSN)(6) ID card expiration date (annotated on front of check).

j. When received, a check will be immediately endorsed on the reverse side. A rubber stamp stating "FOR DEPOSIT ONLY TO THE ACCOUNT OF " (bank account number of fund) will be used.

k. All check cashing/receiving facilities will be notified by telephone of any person who has a returned check and is not on the current Dishonored Checklist.

l. Korean nationals (non-family members) and third country nationals will not be allowed to cash checks in any MWR facilities, which includes bank checks.

4. Returned Checks:

a. The Chief, Financial Management Division (FMD) is responsible for notifying the Check Control Office (COO) of all returned checks.

b. A returned check charge is authorized for an administrative expense associated with collecting dishonored checks in the amount of $31.00 ($25.00 MWR administrative fee and a $6.00 military banking facility assessment fee).

c. The Financial Management Division will provide a list to all check cashing/receiving activities of the names of individuals with outstanding uncollected checks.d. If a returned check is not redeemed within seven (7) days from receipt of notification by FMD, any person having a returned check will be placed on the Dishonored Checklist for a period of not less than 1 year.

5. Collection Procedures:

a. The Chief, FMD, will establish centralized check collection procedures.

b. The amount due to the US Government as a result of dishonored checks will be involuntarily collected from a soldier's pay in accordance with DoDPM, Table 775, Rule 6, from a civilian in accordance with AR 2151, paragraph 43.

c. A seven (7) day written notification of a dishonored check debt would normally be required to collection from a soldier's pay. However, that requirement is waived whenever the soldier has previously consented to a voluntary collection from his/her pay.

d. When a dishonored check has not been redeemed by the specified date, the FMD will prepare a DD Form 139, Pay Adjustment Authorization, for the amount of the dishonored check and a $31.00 service charge and send it to the Military Pay Section of the 175th Finance and Accounting Office (FAO) for collection from the soldier's pay. Attached to the DD Form 139 will be a copy of both sides of the dishonored check and a copy of the dishonored check notification memorandum sent to the soldier. Once the DD Form 139 has been released to the FAO for collection, the soldier will not be permitted to redeem the dishonored check.

e. The DD Form 139 issued for the collection of dishonored checks for all retired personnel will be mailed to:

Department of Defense

Defense Finance & Accounting Service

Cleveland Center

P.O. Box 99191

Cleveland, OH 441991126

6. For personnel who have separated from the US Government, FMD will continue to collect the debt through the IRS Offset Program or a similar program.

7. Bank Check Endorsement Procedures:

a. The following procedures will be followed for endorsement of all bank checks.

(1) All payee identification information must be recorded on the front of the check as well as the initials of the person authorizing the cashing of the check in the upper right hand corner. As a minimum the payee's name, SSN, rank/grade, unit address currently assigned, telephone number and the initials of the cashier in the upper right hand corner will be recorded on the front of the check.

(2) Do not write, sign or stamp any information on the reverse side of the check.

(3) Do not use purple or red ink for your endorsement. Black or blue ink is preferred.

b. Managers at all levels will be responsible for strict compliance of all bank check endorsement procedures as outlined in the above.

8. Charge Cards Acceptance Procedures:

a. AMEX and VISA/MC may be used and accepted in Eighth Army MWR facilities. Decisions to implement the AMEX and VISA/MC program should be based upon business volume and customer expectations. It is Eighth Army policy that charge cards will be accepted at all category C MWR facilities as a standard business operating practice. Facilities located in remote and isolated areas and/or those with low sales volume might be excluded. The cost to logistically support the program may preclude implementation.

b. Implementation of the charge card program should transcend the entire spectrum of Eighth Army MWR, e.g., clubs, bowling and golf (to include pro shops and resale activities), arts & crafts, recreation centers, child care, youth services and support group services divisions and the MWR support center.

c. "Floor Limits" will be used with the charge card program. These are the maximum purchases, which can be charged to a specific charge card without obtaining an authorization code. Floor limits are established in order to facilitate use of the charge card. Under no circumstances will purchases be broken up into smaller amounts in order to avoid getting an authorization code. Specific floor limits are $200 for AMEX and $100 for VISA/MC.d. Electronic checker machines (Easy Checkers) are available for use at high volume facilities in order to automatically prepare charge vouchers and to assist in obtaining authorization codes for purchases over the floor limits.

e. Charge cards will not be used in cashier' cages to issue dollars or won to customers. Charge cards will not be charged in order to provide cash to any customer. Charge card sales will be limited to the amount of purchase only.

9. Enrollment Procedures in Eighth Army AMEX/VISA/MC Charge Card Program: Facility managers are required to obtain approval from their Support Group/Area Command DCA/DPCA/ADCFA prior to participation in the charge card acceptance program.

10. Daily Activity Report (DAR) and Summary of Charges Procedures:

a. Facility managers operating a charge card program must submit a DAR as required by AR 215-1, Appendix G, paragraph a and h. Charges will be annotated as credit sales (GLAC 302). Attach a copy of Summary of Charges (credit company report) with a copy of the all charge vouchers. Frequency of submission will be daily as provided in DoD Financial Management Regulation 7000.14, paragraph A040102 A. However, DARs may be submitted weekly if the weekly sales volume is $500 or less.

b. Summary of Charges will be filled out on the same frequency as the DAR as specified in paragraph 10a above. Completed summary of charges with a copy of all charge vouchers attached will be mailed using the Korean postal system using the postage paid envelope to the credit card company.

11. Procedures for Obtaining Authorization Codes: Facility personnel will call the designated numbers for AMEX and VISA/MC in order to obtain an authorization code when a need exists to exceed the floor limit. The code, once obtained, will be written on the charge voucher and the transaction routinely processed.

9. DEPARTMENT OF THE ARMY & KORO STANDARDS FY 04

1. References:

a. AR 2151, Chapters 4, 10, and 11.

b. AR 21550.

c. DoD 7000.14-R.2. Department of the Army Standards:Golf and Category C Bowling Centers NIBD

> 18%

Green

> 9% but < 18%

Amber

< 9%

Red

Clubs NIBD

> 8%

Green

> 4% but < 8%

Amber

< 4%

Red

Category B facilities:

> 0

Green

< 0

Red

Budget Variance:

> 15%

Red

> 10% but < 15%

Amber

< 10%

Green

3. KORO Standards: Korean Region Office has established MWR Business Financial Standards in order to measure and monitor the financial performance of revenue generating activities. These standards apply to all "business or revenue generating" activities, regardless of category. The standards, which incorporate most of the DA "benchmarks" and are more restrictive than the DA standards, are as follows:

a. Cost of Goods Sold

Standard

Dining Room & Theme Food (Dept 11 & 26)

< 40% of Sales

Snack Bar & Fast Food Opns (Dept 14)

< 35% of Sales

Bar & Theme Beverage (Dept 01 & 25)

< 22% of Sales

Bowling Pro Shops (Dept 39)

< 75% of Sales

Golf Pro Shops (Dept 39)

< 75% of Sales

Other Resale (Dept 96)

< 55% of Sales

Miscellaneous Sales (Dept F2)

< 50% of Sales

Miscellaneous Sales (Dept F3)

< 65% of Sales

b. Labor Cost

Standard

Dining Room & Theme Food (Dept 11 & 26)

< 42% of Sales

Snack Bar & Fast Food Opns (Dept 14)

< 35% of Sales

Club & FB&E Locations

8% of Total Revenue

Bowling

*(see below)

Golf

> 20% of Total Revenue

Other Resale

> 5% of Total Revenue

Others (e.g., snack bar in Rec Center)

> 5% of Total Revenue

e. *Standards for bowling are based upon number of lanes.

Lanes

Labor Standard

NIBD Standard

32

< 45% of Total Revenue

> 25% of Total Revenue

14

< 50% of Total Revenue

> 20% of Total Revenue

1012

< 60% of Total Revenue

> 20% of Total Revenue

68

< 70% of Total Revenue

> 5% of Total Revenue

4

< 80% of Total Revenue

> 0% of Total Revenue

10. DOCUMENT CONTROL

1. Reference: DOD 7000.14-R, Volume 13, Appendix A.

2. Nonappropriated fund activities will send all source documents to the local CAO within two working days after receipt or issue, and the CAO must receive them by the third working day after receipt or issue.

3. Documents will be date stamped by the local CAO to track all late documents that are received by the activity. Monthly, the local CAO will issue a late document report listing each activity, type of document, and number of days late.

4. The CAO will be notified of assigned transmittal letter (TL) control numbers prior to using them to ensure that TLs are posted properly.

5. Submit TLs (Enclosure 10-1) in duplicate (original for CAO and duplicate for acknowledgment) with the following information:

a. Transmittal control number on the transmittal letter.

b. Date prepared.

c. Sender's address will include installation, program, and location codes.

d. Printed name, date, telephone number and signature of person preparing the TL.e. Description of various documents.

f. Must be marked "FINAL" or "F" on the final transmittal letter next to the control number for each accounting period. An example is shown at Enclosure 10-1.

6. The last Transfer Between Activities (DA Form 4080), Request for Issue or Turnin (DA Form 3161), and Requisition and Invoice/Shipping Document (DD Form 1149) for each accounting period will also be marked "FINAL or "F".

TRANSMITTAL OF CAO DOCUMENTS

TO:FROM: (Program/Location/Trans #)

175TH FINCOM, ATTN: EAFC-CAOKD-KA-M2 0033 (FINAL)

UNIT 15300, APO AP 96205LONG BOWLING CENTER

ITEM #DOCUMENT DESCRIPTION# OF ITEMSDATEVOUCHER#

1DAILY ACTIVITY REPORT120-Sep-01

2CASHIER'S RECORD (DA FORM 4082)320-Sep-01

3DAILY BANK DEPOSIT SLIP (Dollar)120-Sep-01

4DAILY BANK DEPOSIT SLIP (Won)120-Sep-01

5EMPLOYEE MEAL SHEETI20-Sep-01#1351

6TBA'S (DA Form 4080)120-Sep-01

7PARTY CONTRACTS

8GUEST CHECKS

9BINGO ACTIVITY REPORTS

10NAF RECEIPT VOUCHER (DA Form 1992)

11SLOT MACHINE ACTIVITY REPORT

12

13

14

15

16

17

18

19

20

AUTHORIZED SIGNATURE: (Activity Manager)DATE:

TO:FROM:CAODATE:

1__________ I have received the above listed documents and verified that documents stated were

enclosed and complete.

2__________ I have received the above listed documents. The following documents are returned

for correction.

3__________ I have not received the above-listed documents.

ITEM NUMBERREMARKS

"SAMPLE ONLY"

SIGNATURE/TELEPHONE NUMBER

Enclosure 10-1

11. DRAFT BEER ACCOUNTABILITY

1. Reference: DA PAM 23053.

2. The industry average loss per keg of beer is approximately $50. If a facility uses 20 kegs over the course of the month, they have potentially lost $1000, or $12,000 for the year. There are many methods of accounting for draft beer; some are more labor intensive and some are more costly.

3. When determining draft beer accountability needs, several things need to be taken into consideration: size of facility, number of taps, and volume of draft beer. In a small operation, the cost of a system may exceed the amount lost through waste and pilferage.

4. The methods listed below begin with the least expensive/most labor intensive to most expensive/minimal labor expense.

a. EXPECTED SALES METHOD

(1) Accountability factors:

(a) 1/2 Keg (Usually referred to as a "keg") = 15 1/2 gallons = 1,984 fluid ounces

(b) Type of draft beer used: Brand A x $cost

(c) Type of glassware:

12 ounce glass with 1/2 foam head or 10 ounces of beer per glass

60 ounce pitcher with 1 1/4 inch foam head or 50 fluid ounces of beer per pitcher

(d) Waste Factor = 5%

(2) Computations of Expected Sales:

(a) Total expected fluid ounces from keg: 95% yield X 1984 ounces/keg = 1885 ounces

(b) Expected glasses from I keg = 1885 fl. oz. = 1885 ( 10 # fl. oz./glass = 189

(c) Expected revenue per keg = 189 X $1.00/glass = $189

3. Sales accountability for draft beer will be based on the total number of glasses drawn from the total of beer keys from start to finish of the keg. This is documented in a logbook for accountability. For daily retail sales accountability purposes, the (draft sales per register will be compared to the total expected sales.

4. When a keg runs dry and a new keg is brought on line, the register will be rung-out. The closing and opening readings for the draft keg will be recorded in the logbook along with the date, time and manager's initial. Draft beer sales will be rung up on the designated key. Each keg line will be separately tracked in the logbook. At the close of a shift, when the register is rung-out, the closing reading for the draft beer key will be computed by taking the closing reading less the opening reading to determine draught beer sales. Total draft beer sales will be divided by the glass-selling price for that shift to determine the number of glasses used for that shift. Total usage for the shift will be recorded in the usage column in the logbook.

b. KEG SCALES

(1) A keg platform scale is needed for this process.

(a) Total weight of a keg is approximately 162 lbs. including the weight of the container.

(b) Weight of beer only, is 1984 fl. oz. = 124 lbs.

(c) Expected revenue per lb. of beer sold := $189 ( 124 = approximately $1.50 per lb.

(2) The bar inventory clerk enters the weight of the keg beer tapped on beginning column.

(3) Any additional full kegs that must be added to the inventory during the bartender's shift will be recorded at 124 pounds received.

(4) After the bar is closed, the bar inventory clerk will weigh the total number of pounds of draft beer tapped subtracting the weight of the container from the total weight.

(5) The difference between the beginning inventory, plus kegs received, minus ending inventory, is the amount used. Multiply the number of pounds to the nearest 1/4 pound by $1.50 to calculate the expected sales.

(6) Compare the expected sales against the cash register total draft beer sales. The difference is the variance. If the variance exceeds 5% for draft beer sales, it must be explained in writing and appropriate disciplinary actions taken.

c. DRAFT BEER COUNTERS

(1) Draft Beer Counters (DBC) can eliminate careless pouring, unauthorized free beers, and bartender theft. They are used to count the number of ounces dispensed rather than the number of beer containers dispensed. This does not require a bartender to hit a button prior to pouring. Whatever draft beer is poured and counted throughout the shift is what the bartender is accountable for. The draft beer counters replace the existing beer faucets and are easily installed.

(2) Meter readings are taken manually at the end of the bartender's shift and compared to actual sales using an automated spreadsheet.

(3) Once managers are aware of how much draft is poured every shift, they can compare it to how much draft is sold every shift. Any unacceptable variances between the cash register readings and the draft beer counter readings should be cause for concern.

(4) Managers are expected to determine if variances are by wild beer (foamy beer poured down the drain) or wild bartenders (sloppy pouring, unauthorized beers; cash skimming or personal consumption). If the problem is with foamy beer, have the beer distributor correct the problem. If the problem is with employees, they should be re-trained and disciplined appropriately to prevent similar occurrences in the future.

(5) Draft beer counters work very well in conjunction with draft foam control detectors.

d. POURING PROCEDURES

(1) Pour normally, filling container with beer and proper size head.

(2) A red light will flash for every 10 ounces of beer dispensed.

(3) Since the DBC is being used in your operation to count the number of beer ounces dispensed, rather than the number of beer containers dispensed, there is no need for bartenders to press either the #1 or #2 button before pouring. If the Draft Beer Counter was calibrated to two different size beer containers (i.e., button #1: 12 ounce mug & button #2: 60 ounce pitcher) then the bartender would be required to press the appropriate button before opening the beer faucet.

e. DRAFT FOAM CONTROL DETECTORS

(1) The Draft Foam Control (DFC) prevents C02 from entering the beer line at the end of a keg. This device will keep the line filled with beer when the keg becomes empty. When a new keg is tapped and the DFC is reset, liquid beer will pour foam-free as soon as the faucet is opened.

(2) The DFC will stop beer from foaming when a new keg is tapped. It will not, however, cure foamy beer problems caused by warm temperatures, improper C02 pressure, dirty beer lines or worn parts.

f. FLOW METERS

(1) Small turbine-style flow meters are installed in the cooler onto the beer lines, out of sight from the customer. The meters accurately register the amount of beer dispensed through each faucet for every shift. Managers take cash readings and compare the amount of beer sold to the amount of beer poured from the reports generated by the control system.

(2) This system requires professional installation.

g. MECHANICAL BEER SYSTEM This is probably the most accurate method for maintaining draft beer accountability. Each drawn beer is portioned controlled and metered. The meter records how many beers have been drawn and this can be compared with the cash register reports to determine sales accountability. This system also allows management to determine the size of foam head to be poured with every size of glass or by pitcher. A turn of the key secures the device; preventing tampering by unauthorized personnel.

h. COOPERAGE

(1) When kegs are delivered to a facility, a deposit is paid for the actual keg container. When kegs are returned to the vendor, a credit is issued. This must be broken out when posting to General Ledger Accounts (GLAC's). If not the cost of the deposit/credit is incorporated into the COGS.

(2) Review the invoices carefully to determine amounts of charges and credits in connection with returnable containers.

(a) Debit GLAC 128 with the charges of deposits

(b) Credit GLAC 128 with returns to vendors

(c) Credit GLAC 128 for any containers sold to customers

(d) Debit GLAC 128 for any returns by customers.

(3) At month end, CAO will adjust the ending balance to the dollar value of the physical inventory of containers taken by the NAFI. GLAC 741, Deposits Lost Expense, will be debited for any amount lost on containers due to breakage or loss.

12. EMPLOYEE MEALS

1. Reference: DA PAM 230-5-2.

2. Employee meals may be provided as a convenience to employees within a facility and are not intended to be a benefit of employment.

3. Each installation should develop a detailed internal employee meal SOP prescribing proper procedures to include amount of employee discount. Recommended employee meal discount is one authorized meal per shift, at 50% of the retail price, providing it does not go below the cost of the preparation of the meal.

4. Employees must be on the clock to be eligible for a discounted meal. Carryout meals are not authorized.

5. Appropriated fund employees are not authorized employee meals.

6. DA Form 5069 (Employee Meal Register) will be used to record the amount of cash collected for employee meals and provide departmental accounting data to the CAO (Enclosure 12-1).7. DA Form 5069:

a. Is prepared by the cashier.

b. The head cashier or activity manager is the control point.

c. The number block should be completed using a sequential number for each day of the accounting period. This enables a tracking process to account for all days of the month.

d. Each employee will print their name, enter the full cost of the meal, enter the exact amount they are paying, and sign their name on DA Form 5069.

e. The cashier operating the register will ensure that the information the employee enters is correct, total both columns print his/her name at the bottom and sign the form.

f. The cashier will ring up the full amount on the cash register and the discounted amount will be deducted on DA Form 4082 (Daily Cashier's Record).

g. Operating department in Section C of the form should break out total money received.

h. The completed form will be forwarded with the Daily Activity Report to CAO.

i. A file copy will be retained by the activity.

8. If the cash register has the capability to record employee meals and reflect the amounts discounted on the register tape, DA Form 5069 is still required by CAO to determine the employee meal expense by department. It is recommended that management review these records to validate that employees taking a discounted meal are authorized and on the clock.

EMPLOYEE MEAL REGISTER

For use of this form, see DA PAM 230-5-2; the proponent agency is ODCSPERNUMBER

001

SECTION A - GENERAL INFORMATION

ANNEX

KN-JC-62INSTALLATION

CAMP CASEYMEAL

LUNCHDATE

I0-Oct-01

SECTION B - EMPLOYEE MEAL INFORMATION

PRINTED NAMEREG PRICEWORK AREAAMOUNT PAIDSIGNATURE

Robert Kim5.50Kitchen2.75s/ROBERT KIM

Paul Song610Kitchen310NPAULSONG

Susie Park7.00Bar3.50 s/SUSIE PARK

TOTAL AMOUNT PAID

9.25

PRINTED NAME AND GRADE OF COLLECTING OFFICIAL

PETER PARK, Head CashierSIGNATURE OF COLLECTING OFFICIAL

s/PETER PARK

SECTIION C - COST OF GOODS SOLD TRANSFER

ACCOUNTING

DEPARTMENT USEBAR

DEPARTMENTFOOD

DEPARTMENTADMINISTRATIVE

DEPARTEMENTOTHER

SPECIFYTOTAL

$3.50$5.75$9.25

REMARKS

DA FORM 5069, JAN 87

Enclosure 12-1

13. FIXED ASSETS

1. References:

a. DOD 7000.14R, Volume 13, Appendix A.

b. AR 2151, Chapter 12.

2. Nonappropriated fund fixed assets are defined as tangible properties purchased or donated to a NAFI that have a life expectancy of two or more years and cost $1000 or more. Examples are land improvements, building alterations, renovations, and furniture, fixtures and equipment.

3. Fixed assets are recorded at cost plus any fees that are incurred to put the asset in place: installation, freight, testing, etc.

4. Like items that are purchased in multiple units, with an individual cost of at least $100, and a total cost that exceeds $1,000 or more may be treated as fixed assets. An example would be the purchase of three vacuum cleaners at $400 each. These items may be immediately expensed or determined to be fixed assets since they meet the two year/$1,000 minimum requirement. This decision is made at the discretion of the fund manager.

5. The straight-line method of depreciation is used for determining the monthly depreciation expense. This method takes the total value of the asset and evenly divides it by the anticipated useful life of the asset. Salvage value will not be considered. A reliable source for determining the useful life of the asset is the experience with similar assets.

$22.520=$2815/year = $234.58/month

8 year useful life

depreciation expense

6. NAF fund managers serve as accountable officers for all NAF property and will:

a. Receive or confirm receipt of purchased items through receiving reports, in accordance with the terms of purchase.

b. Establish fixed asset inventory system of identification in coordination with CAO.

c. Redistribute or dispose of excess NAF property in the most effective way.

d. Report losses in writing to CAO and cooperate in, or conduct, necessary investigations.

7. Property loss includes all NAF property that is lost, damaged, or destroyed by causes other than fair wear and tear. Properly completed physical inventory documentation is considered notification in writing. As soon as the CAO is notified, the shortages will be removed from the property control records. This does not constitute relief from property accountability.

8. Property items or combinations of items valued in excess if $2000 that have been lost, damaged, or destroyed for causes other than fair wear and tear are dropped from accountability records only after an investigation is conducted.

9. Minor operating losses require no investigation and inventory levels are adjusted as required. If losses of low-cost items are repeated, there is cause for a review of inventory controls and an investigation, if appropriate.

10. All NAF property is inventoried annually and upon change of fund manager or accountable officer.

11. The U.S. Army NAF Risk Management Program (RIMP):

a. Will be notified within 24 hours, by message or telephone, of any property loss under the self-insured programs when the entire loss exceeds $5,000. Telephone reports will be confirmed within 48 hours by written notice of loss in memorandum format. Information copy of message reports will be sent to the MACOM.

b. Notice of loss of less than $5,000 by mail, will be in memorandum format. Routine notices are sent as soon as possible, but no later than 60 days, after a loss. Normally RIMP does not accept claims that are filed more than 60 days after knowing of the loss.

14. INVENTORY CONTROL

1. References:

a. AR 215-1, Appendix G.

b. DOD 7000.14-R, Volume 13.

c. DA PAM 230-5-2.

d. DA PAM 230-5-3.

2. Fund employees under the direct supervision of the activity manager or a designated representative perform physical inventories monthly for merchandise purchased for resale and consumable supplies. All other NAF property is inventoried annually and upon change of fund managers or accountable officer.

3. Physical inventories are required as of the last business day of each month.

4. The members will work in pairs. One person will inspect and count the items; the other will enter the count on the list The person designated to inventory should be someone other than the responsible person; i.e., bar inventories should be taken by someone other than the bartender However, the bartender should help conduct the inventory in his or her respective area of responsibility.

5. Cutoff dates for sales, issues, returns adjustments, and transfers between departments must be established so the inventory lists will be accurate.

6. Merchandise delivered during the inventory will not be counted unless the purchase and payment have been or will be recorded as of the inventory cutoff date.

7. Merchandise sold during the inventory will be included in the inventory count unless the related sale and receivable or money received have been or will be recorded as of the inventory cutoff date.

8. Inventories will be conducted and listed separately for each department.

9. Each inventory includes a visual count of merchandise and comparison of the results to the balances carried forward on accounting records.

10. Open and partial containers (such as coffee, spices, etc.) in the kitchen production areas will not be included on the monthly inventory. However, processed cuts of meat will be inventoried regardless of their location.

11. Bar condiments and garnishes are charged to cost of goods at the time of issue.

12. To arrive at unit prices, use the moving average method or the firstin, firstout method. The cost averaging method is the preferred method for NAFI activities.

13. DA Form 5060 (Central Storeroom Requisition) is used to issue all food and bar items from the appropriate storeroom (Enclosure 14-1). Personnel authorized to issue food and bar items should be limited.

14. All issues should be posted to DA Form 1991 (Stock Record Card) or to FoodTrak on a daily basis. This will create a perpetual inventory. While merchandise is in the storeroom, it will be maintained and documented by FoodTrak, Stock Record Cards (Enclosure 14-2), or a Perpetual Inventory Sheet (DA Form 5066) (Enclosure 14-3).

15. Perpetual inventories of sensitive and highdollar value items including food, liquor, beer, wine and tobacco products will be maintained. Specifically:

a. A physical inventory is performed daily.

b. DA Form 1991 (Stock Record Card) or an approved mechanized system (FoodTrak) will be used to maintain perpetual inventory stock records.

c. Inventory documents are posted daily to reflect opening inventory, transfers in and out, and ending inventory.

d. Quantities sold are reconciled with the cashier's scatter sheet, or summary of sales recorded for that cashier.

e. Variations are explained in writing by management.

16. Sensitive Item inventories are used to control high cost or high use items. This method of daily record keeping will give the current balance for a particular item or items. This information can be recorded on DA Form 5066 (Perpetual Inventory Form).

a. The number of items controlled should be between 5 and 15 within a food operation.

b. Information for sensitive items inventories can be recorded on DA Form 5065. The reverse side of this form can be used for yield conversions.

c. Inventory documents must be reviewed daily by management.

d. Variances must be investigated and explained in writing. Managers must sign the form and indicate the type of corrective action taken when applicable.

e. The form should be completed by kitchen personnel and reconciled with the scatter sheet by administrative personnel.

f. Retain the completed form on file for future reference and audits.

17. The acceptable inventory turnover rate for food and beverage is 1 to 1. This measures the efficiency of inventory control. A ratio of 1 to 1 means that the entire inventory is turned over once within the month. High inventories unnecessarily tie up operating funds, cause excessive storage costs, make monthly inventories more difficult and may result in stock becoming outdated.

Inventory Turnover Ratio = Cost of Goods Sold Average Inventory

Average Inventory = Beginning Inv. + Ending Inv.

2

CENTRAL STOREROOM REQUISITION

For use of this form see DA PAM 250-5-2; the proponent agency is USAFAC

REQUISTION NUMBERDEPARTEMENTDAY OF THE WEEK AND DATE

012KITCHENWEDNESDAY, 1 DEC 01

QUANTITY REQUESTEDDESCRIPTION OF ITEMUNIT OF ISSUEQUANTITY ISSUEDUNIT COST TOTAL COST

20COFFEELBS201.0020.00

10RICELBS100.606.00

6BEETS#10 CN62.0012.00

TOTAL COST

$38.00

REQUESTED BYISSUED BYRECEIVED BY

J. JONES, CHEF SUE INGRAM, STOREROOM CLERKL. SMITH

DA FORM 5060

Enclosure 14-1

RANCH DRESSINGNA NA

NOMENCLATURESELLING PRICESTOCK OR PART NUMBER

LOCATIONUNIT 50

MAXIMUM STOCK LEVEL

MAIN STOREROOMLB 20

MINIMUM STOCK LEVEL

VENDORSFREIGHT RATESPRICE

NAPPA VALLEYNA1.25

KRAFTNA1.32

DATEREFERENCEON ORDERINOUTBALANCECOSTCOST

5/1/2001151231.251.25

5/8/20018111.25

5/15/20015161.25

5/22/2001 313 1.25

DA FORM 1991, 1 JUN 73STOCK RECORD CARD

NOTE: THE ABOVE IS A PARTIAL REPRODUCTION.

Enclosure 14-2

PERPETUAL INVENTORY

For use of this form, see DA PAM 230-5-2, the proponent agency is TAGO.

ANNEXINSTALLATIONPERIOD COVERED

ITEM DESCRIPTIONUNITBEGINNING INVENTORYRECEIVEDISSUES OR TRANSFER OUTTOTAL AVAILABLEENDING INVENTORY TOTAL USAGEUSAGE COSTS

UNIT COSTTOTAL COST

TOTAL

SIGNATURE OF PERSON CONDUCTING INVENTORYSIGNATURE OF APPROVING OFFICIAL

DA Form 5066, Aug 82

Enclosure 14-3

15. KEY CONTROL

1. Reference: AR 19051, Appendix D.

2. Key and lock control is an important element to an activity's crime prevention. Poor key and lock control gives the impression that no one cares and invites theft. All keys and locks MUST be controlled, inventoried, and issued to the user if they are to be an effective device for protecting property and controlling access to work areas. Key control is the most basic of internal controls and the requirements are as follows:

a. Appointment of key and lock custodian and alternate.

b. Physical control of all keys and locks.

c. Continuous inventory of all keys and locks.

d. Periodic inventory verification.

3. Key and Lock Custodian:

a. Each activity must nave a primary key and lock custodian. An alternate custodian is not mandatory but is recommended and should be considered. The key custodians will be:

(1) Appointed in writing to receive, issue and maintain accountability for activity keys.

(2) Educated in proper local key control procedures.

(3) Responsible for maintaining a key control register at all times to ensure continuous accountability for keys of locks used to secure government property.

(4) Listed on an access roster.

4. Key Custodian:

a. All keys and locks must be controlled by the key and lock custodian. These include:

(1) Padlocks and keys securing government property or facilities.

(2) Door keys (offices, supply areas, warehouses, lockers, etc.).

(3) Vehicle keys (ignition and door).

(4) Combination locks are NOT included.

b. The use of any master key system or multiple system is PROHIBITED.

c. U.S. Government key-operated, pin-locking deadbolts which project at least 1 inch into the door frame or tumbler type padlocks will be used.

d. Padlocks and keys not in use will be secured in a locked container.

e. Every locking device will have a duplicate key stored in the key box. The key custodian will maintain one key to every, locking device on hand at all times (All keys to a lock will not be issued).

5. Key Depository:

a. A lockable container is required to secure all keys. This could be a filing cabinet, safe, or a key depository made of a least 26guage steel, equipped with a tumbler type locking device; and permanently affixed to a wall. The key depository will be located in a room where it is kept under 24hour surveillance or in a room that is locked when unoccupied.

b. Access to the key depository must be stringently controlled. An access roster, signed by the key custodian, listing all personnel authorized to issue/receive keys will be posted on the exterior of the key depository. Only those personnel on the access roster will access the key depository. The fewer the number of personnel with access to the key depository, the better the security.

6. Forms: Master inventory List: (Enclosures 15-1)

a. The most difficult task of key and lock control is to identify all locks, locking devices, and keys. The key custodian must know how many keys and locking devices are in the activity, where they are located, and how many keys or combinations are in the system. A master inventory list is prepared to include the following:

(1) Serial number of the key or lock.

(2) Location of the lock (be specific).

(3) Total number of keys maintained for the lock.

(4) Hook number (optional).

b. This list will be secured in the key depository.

c. There is no required format for this inventory list. Use what