Tuckshops and other businesses

Most comments within this section apply to any trading activity run by the P&C or by subcommittees, such as uniform shops and stationery shops.

Tuckshops are a common activity of many P&Cs. The P&Cs purpose for the tuckshop should be very clear — either to provide quality products at the lowest possible price as a service to the school community or to provide products at a price the market can stand in order to raise funds. Some P&Cs reach a compromise position between the two purposes.

Whatever its purpose, the tuckshop is required to comply with financial management procedures. The financial transactions are many, often involve a large turnover and need to address daily operations and monitor profit and loss.

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Accounts

If the P&C wishes to have a subcommittee overseeing the activity of the tuckshop, open a separate bank account to be operated by the members of the subcommittee.

Alternatively, transactions relating to the tuckshop may be recorded in a separate column in the cash receipts and cash payments book of the main P&C account.

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Accountable forms

Accountable forms include purchase orders, receipt books and chequebooks. The P&C treasurer supplies these and they are entered on the P&C master register of accountable forms.

However, if the subcommittee organises its own accountable forms, the subcommittee must also keep a register of accountable forms for audit purposes.

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Recording income

Record income in an appropriate column in the cashbook. Supporting documents include receipts, bulk receipts, takings book, cheques, cash registers, the cash sales sheet, credit card/EFTPOS payment and banking.

The P&C and/or subcommittee treasurer must keep a cashbook
All money received by the P&C should have an official receipt issued for it immediately it is received.
Bulk receipts for the tuckshop daily takings should be pasted in a takings book.

If a cash register is used in the activities of the P&C, follow standard procedures.

Cash sales sheet

Where cash registers are not available, using a cash sales sheet may help to track the sales and check takings. This is how a cash sales sheet works.

Create one cash sales sheet for each sales point.
Sales staff tick off individual sales.

At the end of the sales activity, total the amounts to show how much cash should be on hand.

See how a cash sales sheet record works.

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Recording expenditure

Neither a paid convener nor the principal can be signatory for the tuckshop account. The treasurer pays all accounts by cheque. Remember to take advantage of discounts wherever possible.

At all times

Support all payments with original invoices. If a photocopy has to be used, make sure it is endorsed not previously paid.

If a mistake is made while writing cheques, write cancelled across both the cheque and butt and leave the cheque in the chequebook.

After payment, mark invoices paid to prevent double payment. File invoices and dockets in cheque-number order after payment. Pasting them in a scrapbook is ideal. The auditor will require this record.

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Receiving goods

The tuckshop convener is in charge of recording how much has been spent and ensuring that these goods or services are received.

This checklist shows what the convener should do as goods are delivered to the tuckshop.

Check that all goods listed on the invoice have been received into tuckshop stock.
Stamp the invoice with a Goods received/date stamp and sign the invoice to show the check has been carried out.
Return any substandard stock and obtain a credit note from the supplier.
Check all invoices for quantity ordered, price charged, credit for returned goods, discounts and other calculations. Errors do occur in suppliers' invoices and, unless detected, can contribute to a trading loss.
Give certified and checked invoices to the treasurer.

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Purchase orders

Tuckshops must use purchase orders to obtain goods and services. You can use a petty cash float for purchasing minor or emergency items.

Stock control

The control of stock is an important function of the P&C and an understanding of the way stock is consumed can aid in the reordering process and expense management.

If stock records are not maintained accurately, the gross profit of the P&C may be over- or understated, giving rise to false expectations for the future. Stock control is an important factor in maintaining reasonable gross profit percentages (see Gross profit).

Stocktaking

You must complete a stocktake at least every quarter. Carry out the first stocktake at the end of term one and then at the end of each subsequent term. Monthly stocktakes can be carried out if considered necessary. One person should count while another checks and records.

To help with stocktaking, prepare stock sheets in advance and printed with items that are regularly carried in stock. Prices used to calculate the value of stock are entered after the stock is counted and must be the cost price.

Avoiding losses

Small and seemingly insignificant daily wastage can very easily result in losses for a tuckshop. Losses or wastage occur mainly through:

spoilage of perishables
end pieces of small goods, for example ends of cheese or hams, that are consumed by staff or voluntary help
over-ordering of foodstuffs such as buns, bread, pies, which are then thrown out or given away
high consumption of products by staff
pilfering.

Stock management

Tuckshops that return good profits have strong management to ensure the following.

Perishables such as milk are turned over regularly.
There is no over-supply of daily foodstuffs or loss of end pieces of foods.
Consumption of goods by staff is strictly regulated.

All stock needs to be rotated so that older stock is sold first.

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Trading statements

See Trading statements in Procedures and processes.

Security

Tuckshop keys should be retained by the tuckshop convener, the principal and the cleaner.
Restrict entry to the tuckshop to tuckshop staff and volunteers.

Children under 12 years of age are not covered by the voluntary workers insurance held by most P&Cs.

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