Fall 2012 issue of Horizons

∙ Periodic, independent spot checks of inventory items being received during the delivery process

The club should also consider utilizing a starter to aid in verifying greens fees and cart usage. Not only would a starter help the accounting department track proper billings, but he/she would also help to regulate the pace of play and greet members and their guests at the first tee. Loaning equipment to members is also a common practice in the pro shop. Loaned equipment promotes potential sales of merchandise and creates goodwill with members and their guests; however, the items are often “lost” and not returned. One practice to consider is billing the member’s account (or credit card) upon loaning the equipment and crediting the account upon return of the equipment. The pro shop should also verify the equipment returned is the same as was issued. Summary There is no question that lack of adequate segregation of duties is an issue for most clubs. Hopefully, your club decides to address the issue by implementing some of the compensating controls outlined above to mitigate club risk.

∙ Independent review and spot checks of the physical inventory count

∙ Independent approval of all modifications to perpetual inventory records

∙ Quantify and investigate all discrepancies (ie, demo clubs, write-offs, missing inventory, etc.)

Pro Shop Considerations The pro shop can play a major role in ensuring your club is accounting for (and collecting on) all of its golf activities. Requiring members to check in at the pro shop gives the club the opportunity to verify the greens fee and cart rental. It also improves traffic and merchandise sales. The electronic tee sheet could then be sent to accounting daily to be reconciled with the actual greens fees and cart rentals billed to the members.

RubinBrown’s Hospitality & Gaming Services Group Many hotels, country clubs, retailers and gaming operations seek out RubinBrown’s accounting, consulting, and tax services.

Jeff Sackman, CPA – St. Louis Manager & Private Clubs Segment Chair Hospitality & Gaming Services Group 314.290.3406 jeff.sackman@rubinbrown.com

Greg Osborn, CPA – Denver Managing Partner, Denver Office 303.952.1250 greg.osborn@rubinbrown.com

Todd Pleimann, CPA – Kansas City Managing Partner, Kansas City Office 913.499.4411 todd.pleimann@rubinbrown.com

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