DRAFT DOCUMENT Best Management Procedures

For LACCD Bookstores Operations

LOS ANGELES COMMUNITYCOLLEGEDISTRICT

Bookstore Policies
and Procedures Manual

DRAFT COPY

April5, 2013

1

1/21/2019

DRAFT DOCUMENT Best Management Procedures

For LACCD Bookstores Operations

Table of Contents

Preface 3

Code of Ethics 4

Sample Vision and Mission Statement 5

Cash Management Controls 6

Cash Management 6

Change Bank Management 7

Assignment of cash to cashiers 8

Cash pulls during the day 8

End of Shift assignment 8

End of day routines 9

Cashier Manuals 10

Basic Cashiers 10

Basic Cashier – Cash Transactions 10

Basic Cashier – Charge Sale 11

Basic Cashier – Check Sale 11

Merchandise Rentals 11

Advanced Cashiers 12

Cash Refund Management 12

Receipts 13

Bookstore Cash Room Safe – Routine Procedures and Policies 13

Bookstore Cash Room – Access 14

Buy Back Routines 14

Inventory Controls 15

Receiving – Chain of Custody Procedures 15

Merchandise Returns – Procedures 16

Stock Controls 17

Access to the Bookstore 17

Year –End Inventory Routines 18

Pricing Controls 18

Pricing Routines 19

Mark Downs 19

Procurement of Retail Merchandise 19

Ordering merchandise for resale 19

Textbook Adoptions 20

Orders for merchandise requested by College Departments 20

Orders placed on the internet 20

Special Orders 21

Labor Controls 21

Record Keeping, Payment Processing, and Bookkeeping 22

Record Keeping Procedures 22

Material Fee Processing 23

Bookkeeping -Accounts Receivable 23

Customer Services 24

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DRAFT DOCUMENT Best Management Procedures

For LACCD Bookstores Operations

A. Preface

This manual has been prepared to address specific issues relating to the operation of the Los Angeles Community College District Bookstores. It has been written in coordination with the Business Officeand Accounting Policies and Procedures Manual which was released in 2012.

Information isprovided forthe most common Bookstore transactions, and frequentlyused forms are also included assample exhibits. Careful attention and adherenceto theseprocedureswill enhanceinternal controls andreducethe amountof time required to process similar type of requestsand transactions used for all District Bookstores.

This manual will be revised regularlyas procedures changeor topicsare added and deleted. Ifmoredetailis needed on aparticular Bookstoretopic, itis recommended that the Bookstore Manager’s Groupbe consulted. TheDistrict AccountingOfficemayalso serve as a sourceof additionalinformation.

B. Code of Ethics

Per Board Rules (Chapter 1, ArticleII,Page7)District employees shall adhereto the followingethical standards:

(a)Exercise duediligenceinthe ethical performanceofhis or her duties and model ethicallyresponsible behaviorat all times

(b)Facilitate aclimateof trust and mutual support through actions that demonstrate respect for reason, freedom of expression, and the right to dissent. Avoid knowinglymakingfalseormalicious statements about other employees or students

(c)Use careand integrityinsharinginformation,guard privacyrights of all individuals, and avoid disclosinginformation about colleagues or students obtained in the courseofprofessional serviceunless disclosureservesa compellingprofessionalpurposeoris required bylaw

(d)Avoid enteringinto or continuingrelationships with other employees or students that create or sustain conflicts of interest,such as thosethat maybe viewed as harassment, unequal powerrelationships, or thoseof asexual nature

(e)Avoid enteringinto or continuingrelationships that create or sustain conflicts of interest as theyrelateto contractual obligations forand with theDistrict andits colleges andwhich maylead to personal gain

C. Sample Vision - Mission Statement

Vision

The College Bookstores serve as an essential resource and advocate for the academic mission of the College and offer a self-sufficient enterprise operation within the Los Angeles Community College District.

Mission

The Los Angeles Community College District Bookstores provides products required for the academic pursuits of the students and is vital for academic success. The Bookstores also provides optional items which support campus life and promotes student achievement.

D. Cash Management Controls

Although the ultimate responsibilityforcash management of the collegelies with the College President, theoperationalresponsibilityfor Bookstorecash collections, deposits, maintenanceof proper recordsand the timelypreparation of cashcollection reports to theDistrict Offices lies with the Bookstore Manager, Enterprise Manager,ordesignee.

When referencing the Bookstore Manager, Enterprise Manager, or designee, this manual will use the word “Manager.” Abbreviations for Bookstore will be (BS) and Business Office is (BO).

It is also the responsibilityofthe Manger to ensurethat complete accountingrecords aremaintained forauditpurposes and thatproper controls arein place forthe safeguardingof District funds. All cash, checks and credit card slips shall be received in theBookstore facility except for approved off site special fundraising events.

To ensurethat aproper accountingof District funds occurs, all collections of cash in the Bookstore mustbedeposited with the campus Business Office on the daycollected orno later than themorningof thesubsequent business day.

The Manager must ensure that the Bookstore sales and refund policies follow best management procedures. This includes that procedures are in place so that custody of money disbursements can be tracked and that there are procedures in place to control the flow of cash from the point at which it is accepted at the register all the way to the point at which is it transferred to the Business Office cashier or deposited in the bank. In addition, there must be verifiable and adequate controls to insure that the reporting of sales to the District is correct.

Cash Management

  1. Cash which is used for Bookstore (BS) starting funds must be ordered from the Bank by a College Financial Administrator, Associate Vice President, or Vice President of Administrative Services. It cannot be ordered by the manager. The College Financial Administrator, Associate Vice President of Administrative Services may delegate this duty to a supervising employee within the Business Office but shall not relinquish accountability. Procurement of cash from the bank is normally handled by the Business Office (BO).
  2. The BO cashiers are responsible for counting and managing the cash received from the Bank.
  3. The transfer of funds from the Business Office cash room to the Bookstore Cash room must be approved in writing from a Vice President, Associate Vice President, Bookstore Manager, or Assistant Bookstore Manager. Approval will be required each time cash is requested to fill refund cash vouchers, and starting change fund bags.
  4. Employees may not change personal cash during their work shift. All cash exchanges must be made at either the Business Office front counter or from a Bookstore cashier. At no time may LACCD employees commingle personal cash with that of the College’s Bookstore cash.
  5. Funds transferred to the BS which are released by the BO for starting registers are counted each day in bundles of $150.00
  6. These bundles are signed by both the BS cashier and the BO cashier and counted and placed into bags which are placed in the safe. BO cashiers may also hand over the bags with the $150 in the bags. (sample #10A,1)
  7. Each business day, the bags are counted to ensure that they contain $150.00 each. The count along with the name of the person, date, time are recorded on a log. This log remains in the BS cash room. (sample #10A,1)
  8. The breakdown of currency is constant within each bag and each bag contains the same denominations of coin and currency. (the standard break down will be posted in the BS cash room BS Cash Room)
  9. A log will also be updated each day showing the amount of total bags and the amount of total cash on hand in the safe. Colleges may opt for the personnel in the Business Office to maintain daily cash counts in the Bookstore safe. (sample #10A,1)
  10. A cash resister shall be used whenever possible to report transfer of inventory to the customer. These transactions should bekeyed into theregister andeachcustomer will be provided with a registerreceipt. (SeeEducation Codesections 72600 and 76065).

Change Bank Management

  1. The Change Bank which is maintained by the BS is counted each day by a supervisor or designee. The amount contained in the bank is recorded each day along with name, date, time and signature. The amount of funds in the change bank will vary according to campus. Campus may individually select the change fund amount. (sample #15A,1)
  2. If the Change Bank needs to be brought into denomination alignment the person counting the bank must remove the cash and transact the change request with the BO cashiers. This is considered a swap of cash and it may be done once per day or when ever needed. The Manager shall assign a person to perform this assignment.
  3. The counting of cash to correct the Change Bank and the counting of cash for the refund packets only occurs in the Bookstore Cash Counting Room.
  4. When making change from the ‘Change Bank’, the person handing this transaction must fill out a form which indicates the name, date, time and amount of change made. (sample #16A,1)

Assignment of cash to cashiers

  1. Cashiers will ask a manager or supervisor to pick up starting cash till from the BS safe in the cash room. This may be either a return from a break or the starting fund.
  2. If the cash is being picked up as a starting fund the cashier must either count the fund in the Bookstore Cash Counting Room or as necessary they can count the cash at the cash register station.
  3. The cashier will annotate on the cashier tracking tag (or alternate tracking documentation) their the cashiers name, date and amount of money that they are starting with. (Sample #11B,1)
  4. During the day the cashier tracking tag shall remain with the cash in the cash bag.
  5. The cash bag will remain along with the cashier at all times. At the end of the shift the cashier will pull the till, and bag and take all of the cash along with checks and other documents to the BSCR.

Cash pulls during the day

  1. If a cash pull from the cash register is requested by BS management, the cashier will count out a pre-assigned amount of cash and place it in a designated envelope or bag which shall contain the name and amount on the envelope or bag. The Manager will annotate on the cashier tracking tag or similar form that they have removed cash from the till including date, time, amount, signature. Some Campus opt to pull all bills except for $200.00. This money needs to be counted out and recorded on a cashier receipt.
    The Manager may also issue a receipt to the cashier with the same information. This receipt will remain with the cashier until the end of the day or cashiers shift is over. The manager will obtain a second person to walk with them to pull the cash from the cash registers. (sample #13A,1)
  2. According to the volume of sales for the day, it is recommended that cashier tills not contain more then $3,000.00. It is also recommended that cash in the registers be pulled at least two times per day.
  3. If the cash pulls are released to the BO, the BO cashier must maintain a log showing the date, time, number of envelopes/ bags, along with signature indicating that the envelopes / bags were received. (sample # 12A,1)

End of Shift assignment

  1. If the cashier is closing at night and the store is closed the cashier may count the till and the bag at the register.
  2. At the end of each dayor when a cashier’s shift is over and the register will not be used for the rest of the day a cash register readings (ZReports)shallbeprinted and provided to the BO cashier for reconciliation.
  3. The taking of the Z reports will be supervised by the manager, or designee. .
  4. If the register is tracking sales by cashier, the reconciliation report shall be accomplished by an independent person separate from that of the cashier. It is recommended that this person be the BO cashier.
  5. If the register is tracking sales by register, the reconciliation report shall be accomplished by a person who did not use the register. It is recommended that this person be the BO cashier.
  6. Registers which report reconciliation reports via DBM in a digital format to a data base manager may reconcile to the digital data. It is recommended that a separate reconciliation be made to the Z tape to insure continuity of sales from one sales period to the next.
  7. A unitsupervisor or manager mustbenotified of anycash overages or shortages. A cash shortageor overagelogmustbemaintained byunit supervisors indicatingdate, name ofcashier or cashier number,amount, and reasonfor any shortages or overages.
  8. The cashier will annotate on the tracking tag the amount of money in the till and bag. This will not include the total of checks and other transaction instruments.
  9. The cashier will inform a second cashier that they need to validate the cash counts. The second cashier will count the money and validate by placing their signature on the tracking tag or on a count tabulation sheet if tags are not used. .
  10. When both cashiers have finished the counts they will request that the money be placed in the safe if the BOcashiers have left for the day. A manager or supervisor will assist and open the safe to receive the bag of cash and other transaction documents.

End of day routines

  1. If the BO cashier is available, the BS cashier can immediately transact with the BOcashier and transfer the funds for a 3rd count and deposit.
  2. At the time that funds are transferred a receipt of the tacking tag will be removed signed, dated, and handed to the person releasing custody of the funds. If using this form the tag contains a number which is linked to the original tag. (See Sample 11B,1)
  3. In the event that the bag is held overnight, the next normal day the opening manager or supervisor will pull all of the bags from the night before and turn them into the BOfor processing.
  4. At the time that the bags are moved and released to the custody of the BOa second receipt of the tracking tag will be removed, signed, dated and handed to the person making the transaction. (See Sample 11B,1)
  5. The tracking tag receipts should be retained for at least a few weeks so that if there is any issues the person making the transaction and show and demonstrate the funds were transmitted and signed for.

Cashier Manuals

  1. Cashier manuals are available and pertain to the specific type of registers being used in the store. All cashiers receive training on the use of the register and are assigned different skill levels. The levels are basic and advanced. (sample #9A,1)
  2. All cashiers will receive basic cashiering instructions which includes written manuals and on the job training.
  3. Cashiers will be shown best management practices in handling cash and must demonstrate adequate cash management skills to be assigned a cash register.

Basic Cashiers

  1. Basic cashier assignments include general sales, and rentals.
  2. Basic cashiers may accept checks, charges, and cash. Each of these tender types is entered into the register after the line items purchases are entered. SKUs entered by hand or by wand are acceptable.
  3. Each item entered on the register should appear on the customer screen for validation. It also must show on the cashier screen.
  4. Some stores have loss prevention systems which require that each item be scanned this will ensure that the sensor is deactivated and will not set off the alarms.
  5. Once the individual items are entered in the register the cashier presses the subtotal key and the customer must make a decision as to what tender will be used.

Basic Cashier – Cash Transactions

  1. If making cash transaction the cash is set on the tray and change is counted back to the customer. Once the transaction has been made the cash on the tray is placed in the till.
  2. If the cashier is greater then $20.00 the bill is validated to make sure that it is a legal form of currency. This is done by visually checking the bill. Sometimes a “counterfeitdetector”pens is used but it is important to note that these devices are easilyfooled ifthebills aresprayedwith household products suchas hairspray. Use of blacklights to detect certain features of thebills that arenot visibleto thenakedeye will work better.
  3. Cashier training shall include discussions on counterfeit bills. It is strongly recommended that for $50 and $100 dollar bills that the cashier asks a second cashier or manager to validate the authenticity of a bill.
  4. If the cashier is suspicious about the authenticity of a bill, he/she can refuse to accept it. If a cashier is sure he/she has been presented with a counterfeit bill, they should summon their manager, inform the customer that we must keep the bill, and then notify the Sheriff. The customer should be asked to wait for the Sheriff so that they can provide information about the bill.
  5. For each transaction, a cash register receipt must be printed and handed to the customer. This is also an excellent time to remind the customer about the Bookstores return policy.

Basic Cashier – Charge Sale