Accounting Policies and ProceduresDelaware North Companies, Inc.

1300 - INVENTORY

Title: Off-Site and Consigned Food & Beverage Inventory

Number:1355.01

Effective:3/1/09

Revised:7/8/16

Responsible:Corporate Accounting

POLICY

Units that store inventory off-site or Units that send product to off-site locations on consignment must maintain detailed records of that inventory and include it within regular physical inventory counts.

PURPOSE

To ensure all inventory owned by DNC is included within its inventory balance per the General Ledger.

SCOPE

All Unit locations

ROLES & RESPONSIBILITIES

Unit General Manager

  • Responsible for authorizing all consigned inventory agreements.

Unit Food & Beverage Manager

  • Responsible for maintaining all consigned inventory agreements and ensuring compliance with consignment agreements.
  • Responsible for maintaining a detailed Off-Site Inventory Listing and Consignment Inventory Listing.
  • Responsible for performing counts of Off-Site or Consigned inventory, or for confirming such inventory values.

PROCEDURES

Off-Site Inventory

Note: Off-Site Inventory is inventory that is owned by DNC that is not physically on site.

  1. Any inventory stored at an off-site location will be maintained within a detailed Inventory Listing by the Unit Food & Beverage Manager, whether it be the Unit’s normal Inventory Tracking System or within a manual Inventory Listing.
  2. All inventory additions/subtractions (i.e. purchases/transfers) to/from the off-site location will be updated monthly (minimum) by the Unit Food & Beverage Manager to ensure the inventory detail of the off-site location is materially accurate.
  1. All off-site inventory locations will be included within the Unit’s normal physical inventory process (See Policy 1352.02 – Food & Beverage Inventory Physical Count) or confirmed at each period end for which there is a physical inventory. See “Confirming Inventory Balances” below.(CR 2A.5.1.4)

Consigned Inventory

Note: Consigned Inventory is inventory owned by DNC (“consignor”) that is held off-site on consignment at a consignee’s location.

  1. The Unit General Manager will authorize all consignment agreements.
  1. The Unit Food & Beverage Manager will maintain all authorized consignment agreements in an appropriate file and ensure compliance with consignment agreements.
  1. Any inventory on consignment will be maintained within a detailed Inventory Listing, whether it be the Unit’s normal Inventory Tracking System or within a manual Inventory Listing.
  1. All inventory additions/subtractions (i.e. transfers/sales) to/from the consignment location will be updated monthly (minimum) to ensure the inventory detail of the consignment location is materially accurate.
  1. All consigned inventory locations will be included within the Unit’s normal physical inventory process (See Policy 1352.02 – Food & Beverage Inventory Physical Count)or confirmed at each period end for which there is a physical inventory. See “Confirming Inventory Balances” below.(CR 2B.5.1.4)

Confirming Inventory Balances

Note: If off-site or consigned inventory is not counted during the normal physical count process, the inventory levels must be confirmed with the third party (i.e. the off-site commissary/warehouse or the consignee). However, off-site or consigned inventory will be counted by a DN associate that does not have authority to order inventory at least once per year.

  1. The Unit Food & Beverage Manager will determine if off-site or consigned inventory will be counted or confirmed. If counted, See Policy 1352.02 – Food & Beverage Inventory Physical Count. If the off-site or consigned inventory is to be confirmed, the Unit Food & Beverage Manager will prepare an Inventory Confirmation Form (F1355.01A) and send it to the off-site commissary/warehouse or the consignee.
  • Best Practice: In order to facilitate a faster response from the consignee or off-site commissary/warehouse, the Unit Food & Beverage Manager should contact the appropriate person and notify them of the Inventory Confirmation. In addition, the form should be sent in advance with the date of cut-off clearly communicated.
  1. The Off-site Warehouse or Consignee will return the completed Inventory Confirmation Form (F135501A).(CR 2A.5.1.2) (CR 2B.5.1.2)
  1. The Unit Authorized Individual will receive the Inventory Confirmation Form (F1355.01A) back from the Consignee or off-site Warehouse. See Policy 1351.03 – Food & Beverage Inventory Quantity Adjustments for inventory adjustments to the system or listing.(CR 2A.5.2.1) (CR 2B.5.2.1)

EXCEPTIONS

NONE

RECORDS

FORMS

  • F1355.01A – Inventory Confirmation Form – Food & Beverage

DETAILED PROCEDURES

  • How to complete an Inventory Confirmation form

RETENTION

All documentation in this section will be retained for a period of 6 years or in accordance with applicable contracts, whichever is the greatest length of time.

Parties listed will be responsible for retention of the corresponding document:

NONE

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