Embed Size (px)
DESCRIPTION
Stock Auditor December 200
Citation preview
ISSN 1471 - 0471
THE MAGAZINE FOR THE INSTITUTE OF LICENSED TRADE STOCK AUDITORS ISSUE 80 December 2008
In This Issue
Page 3 From the ChairPage 4 Money LaunderingPage 7 Interview with the PresidentPage 10 GIFTPage 11 Training & examinationPage 12 MasterclassPage 14 Nice to meet you - Page 16 56th AGM
www.iltsa.co.uk
F.L.V.A Banquet, Norbreck Castle, BlackpoolThe I.L.T.S.A. Council held their last meeting to coincide with the FLVA AGM and seminar.
Next Training Course - March 13th to 15th Clarion Hotel, Blackburn
The council ofmanagement of theI.L.T.S.A. wish allmembers a very MerryChristmas and ahappy, and prosperousNew Year
BlademasterBlademasterSafety KnifeSafety Knife
A little help fro
m your stocktaker
www.iltsa.co.uk
Free - to allmembers
StockAuditor
STOCKAUDITOR2
This magazine is published by the Institute of Licensed Trade Stock Auditors. Whilst welcoming any contributions, the editorreserves the right to alter or amend them if necessary.
Any opinions expressed are not necessarily those of the Council and are accepted only on that understanding. No part of this magazine may be reproduced or transmitted without written permission of the publishers.
Printed by :- Pickles Printers, Halifax, West Yorkshire 01422 353239All Subsciptions payable in advance. Published 6 times per year post free Annual Subscription £24.00
© Institute of Licensed Trade Stock Auditors 2008
FromTheEditorChris Swift
Tel:- 01422 [email protected]
Steve BerryF.I.L.S.A.� 01968 670600
President� [email protected]
Trevor PerrottF.I.L.S.A.� 01483 829437
Treasurer� [email protected]
Ron FosterF.I.L.S.A.� 01793 704186
Regional Reps.� [email protected]
Rita BroadbentF.I.L.S.A.� 01274 870989
Stocktaking Equipment
Mike MurdochF.I.L.S.A.� 01254 247496
Chair, Exam & Training
Chris SwiftF.I.L.S.A.� 07768 962354
Marketing, Mag Editor
Anton EllenderF.I.L.S.A.� 01303 277382
Membership Benefits
Richard GraftonF.I.L.S.A.� 01305 813225
Many thanks to the members andothers who have made this issuepossible:- Gordon Andrews, Steve Berry,George Giles, Jonathan GlennyGreyeye Technology, Martin Harper,Mike Murdoch, Helen Smith, PaulSteele and Diane Swift.Thanks also to Peter Hodgson, RitaBroadbent and Amy Swift for proofreading this issue. Deadline for the February issue is
17th January 2009.
ContributorsLinda Arthur
It is with great regret that Councilhave accepted the resignation,with immediate effect, of LindaArthur.
Along with Council I am sure thatyou would want to wish Linda allthe best in her new venture andthank her for her hard work in thepast on your behalf.
Money Laundering Regulationsagain dominate this issue. Like itor not they are here to stay andwe must all register and complywith the regulations. Helen Smith,Senior Policy Adviser with HMRCmet with Council to discuss ourreservations. Questions asked atthat meeting are detailed on page4. Our advice remains that if youhave not already registered youmust register with HMRC as soonas possible.
In this issue are two schemes withcommissions payable to ourmembers for introductions. Youmay be able to use these withyour clients enabling them tosurvive through the recession.
As mentioned at the AGM there isa complementary ‘blademaster’ forevery member enclosed with thisissue. If you would like a supply ofthese for your own clients theycan be supplied at the promotionalcost of 90p ( Plus VAT ). To obtainthat price we have to purchase inquantities of at least a thousandso lease allow two to three weeksfor delivery.
Many thanks to all thecontributors who have made thisissue of the magazine possible –remember any future contributionswould be most welcome. In theFebruary issue will be aninteresting article on RSI -repetitive strain injury which oneof our members had a badexperience with.
All that remains for me to do is towish you all, on behalf of yourCouncil, a very merry Christmasand a happy and prosperous NewYear.
35 Pubs a weekclosing .....Recession is not a word any of uswant to hear, however it would beremiss of us to ignore the fact thatwe are heading towards a deep andlengthy recession which may be verydifficult to get out of. In therecession of the early 90s, publichouses were thought to be the firstbusinesses to be hit but most outletscame through that difficultperiod and survived to trade another day. Already this time we arenow hearing of public houses closing at the rate of 35 per week.
There have been calls for the government, through the all party beergroup chaired by John Grogan M.P., to look at the cheap sales of liquorfrom the supermarkets. Other trades have suffered in the past fromencroaching supermarket giants. The milkman, the baker and thefishmonger have all but disappeared from the main street. I am of thebelief that the public house trade as we know it is now a sitting target forthe conglomerates of retail to pick off at ease. How long will it be beforethe signage outside the public house bears the names Asda, Sainsbury &Tesco? I fear those days are drawing near. It could also be mooted thatthe standards within our public houses have dropped to such low levels inrecent years we only have ourselves to blame. Whatever course is takenthe fact remains that the hierarchy within the pub industry must find theanswer very quickly before the ship really starts to sink.
The other legislation to hit us recently is the moneylaundering regulations, we as stocktakers have to
register with HMRC as account service providers.We, on the Council have gone into great detail
over this with HMRC asking whether we have toregister or not. According to HMRC we do, and
there will be no reprieve. As an Institute wehave to comply with the law. It may well
help get rid of the cowboy stock auditorsthat have plagued us for years, it ishowever down to us to report such to
the HMRC.
Christmas is upon us once more and is abit of relief from the doom and gloomwhich surrounds us all at present, may Itake this opportunity to wish all our
members a Merry Christmas and amuch better New Year in 2009.
ViewFromTheChair
Taking Stock BooksGoods Received BooksBar Requisition Books
Allowance BooksFlexible Dipsticks
Sectional DipsticksInstitute Ties
Membership ListsSelf - inking stamps
OFFICE DETAILS
Tel :- 01422 [email protected]
Brockwell HeightsBrockwell Lane
TriangleSowerby Bridge
HX6 3PQ
George Giles Tel:- 0191 386 7699
ILTSA CALENDAR 2009
AVAILABLE FROM THESECRETARY
F E L L O W S H I P
STOCKAUDITOR 3George Giles
Any member, with the requisiteseven years full membership, canapply for fellowship. Pleasecontact the Secretary for details.Any applications will then beplaced on the agenda for theApril Council Meeting.
2009March 11th Refresher Day
12th Examinations
March 13th Training Course
May 15th 56th AGM Dorset
STOCKAUDITOR4
MoneyLaundering
Money LaunderingMoney LaunderingRegulations 2007Regulations 2007
1. Why do few accountants of(chartered or certified) have anyknowledge of this legislation,certainly the need for us to registeras ASPs?
A. All accountants, auditors and taxadvisors were covered by the MLRs2003 but the only ones that weresupervised were some members ofspecified professional bodies - thosein part one of the schedule 2 of theregulations…
All members or associate members ofall the professional bodies listed inthis schedule will be aware of theMLRs 2007 and will have beencontacted by their professionalbodies.
2. Why can’t HMRC use it’s databaseof businesses and write to allaccountants and business advisers?
A. We have used our records andwritten to all VAT registered tradersin the VAT notes. We have includedinformation in the employers’ bulletinand agents’ updates and in agents’and employers’ briefings andpresentations. We will be writing totax agents reminding them of theirresponsibilities under the MLRs.
3. What about the ‘part-time’ stocktakers out there who do not seem tobe registered for VAT and tax? Forexample: licensees, retired areamanagers etc. Do we report peopleto you who we suspect / know areworking as stock takers and do wehave to give our name.
A. It does not matter how many hourssomeone is working as an ASP, whatmatters is whether they are carryingout accountancy services “by way ofbusiness”. In most cases someonewill be able to decide this quite easilybut there will be circumstances whenthe situation is not clear and we havecovered this in the registrationguidance MLR 9 section 3 para 3.4.
Businesses providing tax advice oraccountancy services in thecircumstances below are not withinthe scope of the regulations becausethey are not considered to be carriedout “by way of business”;
� in house and not to a third party
� within a group for anothermember or part of that group, orotherwise to a related party, on anon-commercial basis.
Local community and voluntarygroups, registered charities,foundations, trusts and other bodiesestablished on a not for profit basisproviding TCSP, MSB and ASPservices that are free to the end userare not within the scope of the MLRsbecause they are not carried out by‘way of business’.
Volunteer advisers providing theirservices free to these organisationsand employees of these organisationswill also fall outside the scope of theMLRs when providing tax advice oraccountancy services.
It is up to you whether you reportsomeone if you think they are notalready supervised by FSA or a
designated professional body andhave not registered with HMRC ifthey are required to do so. We dohave confidential hot lines if you wantto make an anonymous call.
4. Will there come a time when it willbe illegal to trade without this licenceand will there be any enforcement?A. From 1st January 2009 it will beillegal to provide accountancyservices “ by way of business” in theUK without being registered withHMRC unless you are alreadysupervised for MLR purposes by FSAor a designated professional body orare not required to register.Businesses have until 1st January2009 to be on the register and shouldgive us 45 days to process theirapplication.
Some bookkeepers and accountantsthat are not already supervised by aprofessional body will not be requiredto register with HMRC in thefollowing circumstances. see MLR 9para 7.1.7
Firms or sole practitioners acting asASPs, when all their customers areASPs that are supervised by HMRC ora professional body listed in Appendix1 MLR 9, providing:
� They do not deal directly with thecustomer of the supervised firm(s)
� They are included within thescope of the AML procedures of thesupervised firm(s), includingsuspicion reporting procedures andappropriate training; and
Helen Smith, Senior Policy Advisor with HMRC attended our Councilmeeting in Blackpool in mid November. She answered many questionsthat we put to her and stated that she was prepared to help the Instituteformulate a risk analysis that could be adapted by our members. Thewhole issue is far more complex than was at first thought.
MoneyLaundering
STOCKAUDITOR 5
� Both businesses provideevidence in the form of a writtencontract to confirm that thearrangement covers compliance withall the AML requirements in respectof the entire customer relationship.
We will be policing the register butfirst we have been carrying out anawareness campaign contactingtrade associations and businessesand advertising in the press andcarrying out trade presentations etc
5. Will the need for stock takers to beregistered be reviewed.
A. No. However, HM Treasury will belooking at applications to becomesupervisory authorities fromprofessional bodies that are notalready supervisors and ILTSA maywish to apply.
6. How many stock takers haveregistered or are in the process ofregistering?
A. We do not know because wecannot identify them from theapplication form. However 7,000 ASPsin total have registered with HMRC.We estimate there are about 40,000already supervised by one of theprofessional bodies.
7. Exactly what records do youexpect us to keep?
A. You will need to keep records ofthe customer due diligence checksmade, and information held oncustomers and details of transactionsto demonstrate compliance with theMLR 2007. You should also keeprecords of any internal disclosuresand documentation relating towhether or not to submit a SuspiciousActivity Report.
These records will be crucial in anysubsequent investigation, enablingyour business to produce a sounddefence against any suspicion ofinvolvement in money laundering orterrorist financing, or charges of
failure to comply with the MoneyLaundering Regulations.
Please keep your business recordsfor five years, beginning on the dateon which the business relationshipends or, in the case of occasionaltransactions, five years from the dateof completion of the transaction.Records can include any of thefollowing:
� original documents
� photocopies
� on microfiche
� in a scanned format
� computerised or electronic
8. What records will HMRC expect tosee ?
A. Examples of business records theofficer is likely to want to see include: � anti-money laundering policiesand procedures
� policy statement showingbusiness’s risk assessment of itscustomers, products and services
� internal audits of compliance withinternal anti-money launderingprocedures and controls
� external auditor’s report where itrelates to compliance with anti-money laundering legislation � compliance reports in relation toanti-money laundering legislation
� bank statements relating torelevant business
� copies of and references to theevidence of a customer’s identity andthe supporting records of customerdue diligence measures and ongoingmonitoring� staff anti-money launderingtraining manuals
� records of all transactionscovered by money launderingregulations
� job descriptions of the seniormanager responsible for compliancewith anti- money launderinglegislation
� records/copies of suspicioustransactions, action taken, copies ofany Suspicious Activity Reportssubmitted to the Serious OrganisedCrime Agency and anycorrespondence from themconcerning consent
HMRC will look at Suspicious ActivityReports for anti money launderinglegislation purposes only and not fortax purposes.
9. Do we need to keep a record ofwho the owner/ manager is?
A The Money LaunderingRegulations specify the customer duediligence (CDD) steps you must takewhen you establish a businessrelationship with a customer, or carryout transactions that have a risk ofmoney laundering attached. You mustalso identify owners of thebusinesses or entities you deal with.For some customers or situationswhere there is a higher risk of moneylaundering or terrorist financing, youare required to carry out enhanceddue diligence (EDD). Where you havea continuing business relationshipwith a customer, you must undertakeongoing monitoring (OM) of thecustomer’s activities.
10. How do we inform HMRC of anyperson or persons who we aresuspicious of ML ing
A. Businesses in the regulated sectorand their employees must discloseinformation to SOCA when they knowor suspect, or they have reasonablegrounds for knowing or suspecting,that someone is engaged in moneylaundering or terrorist financing. Youcan make such disclosures bycompleting and sending a SuspiciousActivity Report (SAR).
Businesses (unless they are anindividual with no employees) mustappoint a nominated officer toreceive disclosures from theiremployees, and have policies andprocedures in place for employees tomake such disclosures to the
MoneyLaundering
STOCKAUDITOR6
nominated officer. These disclosuresneed to contain as much informationas possible about the customer,transaction or activity.
The nominated officer or proprietorsubmits SARS to SOCA using theSARs online system or sendingreports electronically, by fax, firstclass post or courier.
11. Would I be implicated, identified,in the possible future courtproceedings?
A. There is a very remote possibility.The Home Office is aware that aperson making a SAR that anotherperson is engaged in moneylaundering puts himself at risk ofreprisals from the suspected person.There is therefore a great need toprotect the identity of those makingSARs in these circumstances. LawEnforcement Agencies will minimisethe number of occasions where theidentity of a person, or a firm, makinga SAR is revealed in prosecutionevidence or disclosed to the defenceas unused material under the CriminalProcedure and Investigations Act1996. Law enforcement andprosecutors will make everyreasonable effort to avoid using SARsor SARs derived material, whilstcomplying with the law and reservingthe right in exceptionalcircumstances to proceed with acase even where such disclosure isnecessary. For example, obtainingproduction orders from disclosinginstitutions under POCA or the Policeand Criminal Evidence Act should bethe preferred option so that theevidential chain could begin with theproduction order rather than the SAR.
12. How often will HMRC want tovisit and will they have to make anappointment?
A. The interval between visits willvary depending on: �the size and complexity of yourbusiness�types of customers �past compliance with anti-moneylaundering regulations.
In most cases we will contact you byphone to arrange a visit at aconvenient time for you.
We will write to you confirming: � the date and time of the visit
�who we want to speak to
� the information we will require
� the records and documents thatwe will want to see.
In exceptional circumstances we mayvisit without an appointment. Whenwe arrive we will give a reason forthe unannounced visit and identifyourselves.
13. Will they want to see takingsfigures for each outlet and whatother information do they expect tosee ?
A. The focus of the visit will be onyour business’s risk sensitive anti-money laundering policies andprocedures to make sure theysuccessfully manage and reduce themoney laundering and terroristfinancing risks faced by yourbusiness.
During a visit we will always:� check that the information held
on the HMRC register is correct� check that the right peoplewithin Money Service Businessesand Trust or Company ServiceProviders have undergone the fit andproper test
� ask you to explain how your risksensitive anti-money launderingpolicies and procedures work
� answer any questions you have onyour legal responsibilities under anti-money laundering legislation
� look at your risk assessment of thebusiness’s customers, products andservices
� look at the anti-money launderingpolicies, procedures and training youhave implemented to manage andreduce the risks you have identified.
We may also:� examine transaction records andrelated documents to check that thecustomer due diligence measureshave been adequately applied.
� evaluate your systems foridentifying and reporting suspiciousactivity to the Serious OrganisedCrime Agency.
�check that your staff are aware ofthe law relating to money launderingand terrorist financing and aresufficiently trained to recognise anddeal with suspicious activity�ensure you have adequate
systems in place to manage yourcompliance with the MoneyLaundering Regulations 2007.
14. At the moment there is no legalrequirement for businesses to have astock take carried out – if a businessis ML surely they are just going tostop using stock takers or use anunregistered stock taker.
A. Possibly. But do you really want tohave money launderers ascustomers. Generally customers willonly be aware of the requirements ofthe regulations when you carry outany customer due diligence. Mostcustomers will be familiar with this asfinancial institutions are alreadyverifying ID for all customers.
The Next Step ...
By now most stocktakers should beregistered with HMRC as ASP’s - thereare a few exceptions to this ruling but ifyou are in any doubt contact the ILTSAoffice.
Whilst the deadline for registration haspassed, if you have not yet registered,I would advise you to registerimmediately.
Once registered all businesses willhave to carry out a risk assesment andput in place anti money launderingprocedures. In the next issue ofthe’Stock Auditor’ will be details of howto carry out a risk assesment andexactly what records must be kept.
PresidentsPage
STOCKAUDITOR 7
An Interview withAn Interview withthe President the President Steve Berry F.I.L.S.A.
President Steve Berry recently decided to stand down asChairman of the committee for training and examinations.Following many years of involvement with the exams andtraining courses and 25 years in various positions on theCouncil of Management Steve was asked:
In the next issue of the ‘Stock Auditor’ Steve will continue this interviewdetailing where he sees the trade and this profession in five years time.
The Profession has changedconsiderably since I began myapprenticeship. In fact, one of thepubs I did in Manchester at the timewas only licensed to sell beers, winesand porter so the stock listing wasquite limited, as you would expect.Even the ones that carried a fullinventory of stock, bottled beerranges were quite small, as wereliqueurs and table wines. Mineralswere stacked in wooden cases,horizontally, similar to crisps andalcopops were unheard of. The onlyfood stocktaking was in hotels orrestaurants, as very few publichouses or clubs offered meals at thattime.
Results were calculated by usingready reckoners, which was amammoth task, especially on a multibar unit. Over the years, thingschanged with the introduction ofcalculators and our lives becameeasier. More recently, computershave given us the opportunity toprovide clients with far moreinformation than they ever receivedbefore.
The job hasn’t changed. Attention todetail and accurate results are as
Many of the working men’s type ofclub have met their demise throughinept administration and the inabilityto foresee that it was essential togenerate profitability in order tomaintain, improve and move thebusiness forward. Most publichouses were owned by breweries orprivately, with few operating undertenancy arrangements. Multipletenancy groups have only come intobeing in recent years, when thegovernment introduced the policythat breweries could only own alimited amount of licensed premises.
Discounts were nowhere near ascompetitive as they are today and Ifind the current situation farcical withthe amount of discounting that isavailable on such a highly taxedproduct. When the list price of
standard lager can be in the region of£10.70 ex VAT per gallon, cost pricesas low as £4.60 ex VAT can be seenon some clients’ invoices. Some highprofile establishments can be sellinga pint of beer for around what theypay for a gallon.
paramount as ever. Clients expectus to help them make a success oftheir businesses, especially in thecurrent climate when legislationand higher costs are an everincreasing burden on licensees. It isimportant that we help them asmuch as possible in order to retainand maximise their business.
How do you think the Trade haschanged since you startedstocktaking?
The trade has changed immenselyover the last forty years. Apart fromthe structure of licensed premises,drinking habits are no longer themonopoly of the working man. Drinkdriving, eating out, family pubs,healthy attitudes, homeentertainment, cheaper off tradeprices and morerecently thesmoking ban haveall played asignificant part inthese changes.
While night clubsstill entice the younger drinkers, thedays of the clubs that were able toafford top range cabaret artists andmajor pop acts are long gone,except for a few in large cities.
Do you think the Profession haschanged since you began in1964?
...‘Results were calculated by...‘Results were calculated byusing ready reckoners, whichusing ready reckoners, which
was a mammoth task,was a mammoth task,especially on a multi bar unit.’especially on a multi bar unit.’
Turn to page 8 to continue thisinterview.
Members
STOCKAUDITOR8
While in most cases, clients cannothave the luxury of passing on thesediscounts to customers in order tomaintain their profitability, the ontrade, especially supermarkets, areable to discount heavily. I find itunbelievable that the list price for 2dozen cans of standard lager by amajor brewer is 28.53 plus VAT (33.52inc VAT) is being sold for £13 percase in a local supermarket.
The list price of Carlsberg Specialcans is £59.15 ex VAT (69.50 inc VAT)2.90 per can at cost price, is on salefor £1.24 per can.
The list price for Becks Bier is 28.13(£33.05 inc VAT) yet can be seen for£11.96 for 24 bottles.
It is no surprise that some tenants aretempted to buy out of tie when theysee the disparity with the prices theyhave to pay, compared to the offersthat are available from supermarketsand cash and carry operations. Theseprices incidentally, are still producinga profit for the off trade retailer.
New legislation is expected early inthe New Year in Scotland. TheJustice Secretary has pledged to set
Continued from page 7
a minimum price for a unit of alcoholto stop supermarkets and shopsselling cheap beer, cider and spiritsto curb underage and binge drinking.Like many of these decisions, ifproved successful, it would notsurprise me if it spreads to the rest ofthe UK. It will be interesting to seewho benefits financially from thisexercise, whether it is thegovernment in excise duty or theretailers with increased profits.
Steve Berry F.I.L.S.A.
20092009MembershipMembershipCardsCardsQualified members can choosefrom two styles of membershipcard this year.
The card comes with either theInstitute logo as shown or youcan send a photograph ( digitalpreferred ) to personalise yourcard.
An interview with the President ( continued )
Change to theChange to theV.A.T. RateV.A.T. RateAs you will be aware thestandard rate of V.A.T. wasreduced to 15% on the 1stDecember 2008.
Very few of us will have beenable to get around all our clientsso an adjustment may well benecessary. At the risk ofteaching you all how to suckeggs a worked example of
21 Nov to 30 Nov 1 Dec to 20 Dec Total
Gross Takings £ 11,750.00 £ 23,000.00 £ 34,750.00
Net Takings £ 10,000.00 £ 20,000.00 £ 30,000.00
V.A.T. due £ 1,750.00 £ 3,000.00 £ 4,750.00
V.A.T. rate 17.50 % 15.00 % 15.83 %
Transition rate of 15.83 % calculated by dividing the V.A.T. payable ( 4750 ) by the net takings ( 30000 ) = 15.83 %
variable V.A.T. rates is producedhere. In this example thetransitional V.A.T. rate would beset to 15.8 %. On the next stockthe rate would be set back to15.0%.
In December 2009 a furtherchange to the V.A.T. rate will comeinto affect. Please refer to yourown software program as to howthey deal with variable V.A.T.rates.
STOCKAUDITOR 9
MembersOpportunity
GIFT is the name of a new anddifferent buying group. It stands forGrowing Independent Free Trade.
It offers National discounts ( of up to+£210 / brl. off Invoice ) to independentoutlets.
�All members receive the samediscounts.�It costs nothing to join. �There’s no contract and no volumetargets. �All prices are constantly underreview and will continue to improveas we grow.
In addition to drinks discounts thereare a range of other suppliers (fromaudio visual to utilities) alreadyappointed by the group. Thesesuppliers and brokers can offer termsfar better than you could negotiate asindividuals.
National terms have been secured onwines, spirits and minerals with fourdifferent suppliers. They’ve noobligation to buy from these suppliersbut we’re confident you will find theprices to be very competitive.
GIFT stands for GrowingIndependent Free Trade and
that’s exactly what we’re doingby getting better prices for free
trade pubs, clubs, bars andhotels
Alan Spelling – Stocktaker andpublican for 25 years:
“I’ve been recommendingmy customers to the GIFTgroup for some time now.On average my customers
drinks GP’s are up 12%.. Bydoing this for my customersthey feel greater loyalty tome as their stocktaker and
business advisor”.
Example prices (ex vat)
Carlsberg 11g £ 54.43Smirnoff Red 1.5lt £ 17.80Coke BIB 7lt £ 30.37Magners 568ml £ 14.00
No contracts, no ties, no targets.All discounts are off-invoice.
ILTSA stocktakers receive thefollowing recognition payments;
For each 100 brl + outlet £ 100For each 200 brl + outlet £ 250For each 300 brl + outlet £ 400
To find out more contactJonathan Glenny on
07824 34165401895 473063
Buy better toBuy better tobeat the crunch!beat the crunch!
“GIFT stands forGrowing IndependentFree Trade and that’sexactly what we’re doingby getting better pricesfor free trade pubs,clubs, bars and hotels “
EARN £100 FOR ANINTRODUCTION
Well known for providing good qualityand value since 1934, the Les Routiersname has gained a deservedreputation, both on the continent andin the UK as a symbol of good foodand drink, hospitality and excellentvalue-for-money. In the UK thecompany has undergone a number ofchanges and in 2007 it was acquired bythe IPA Group and ipa Purchasing.
Over the coming 2 to 3 years Les Routiers areaiming to increase the number of their member establishments (known as ‘Associates’)to at least 1,500 and are looking for people to actively recruit new Associates.
And this is where ILTSA comes in….
LES ROUTIERS WILL PAY ILTSA MEMBERS £100 COMMISSIONFOR EACH AND EVERY NEW ESTABLISHMENT THEY SIGN UPTO BECOME A LES ROUTIERS ASSOCIATE.
The opportunity to become a Les Routiers Associate is open to a wide range of food anddrink-related businesses ranging from speciality food producers and farm shops to bedand breakfasts, hotels, restaurants, cafés, pubs and inns.
To qualify as a Les Routiers Associate, establishments should offer clean, comfortablefacilities, good quality food and/or drink, good service and value-for-money. Onceaccepted, they will receive a handsome plaque for the exterior of his premises togetherwith a certificate of membership as well as all the marketing and purchasing benefitsavailable to Les Routiers Associates.
Proposal to ILTSA members
ILTSA members are in an excellentposition to act as Les Routiers Inspectorsand sign-up businesses as Associates.Then, as soon as the necessarydocumentation has been completed andforwarded to the Les Routiers office, LESROUTIERS WILL PAY £100 COMMISSIONTO THE RELEVANT ILTSA MEMBER.
It’s as simple as that.
Les Routiers will supply all relevantstationery to interested ILTSA membersincluding brochures/information packs,guide books and Les Routiers businesscards. In addition, a comprehensivechecklist and full instructions will beprovided to make sure that
For further details of this scheme, pleasecontact:-Ian Gauld at Les Routiers on 01372 466 966or email: [email protected]
STOCKAUDITOR10
MemberOpportunitySubscriptionsSubscriptionsIn view of the current economicsituation it was agreed at theNovember meeting thatsubscriptions for 2009 would be heldat the same rate for a further year.Enclosed with this magazine is asubscription renewal form and astamped addressed envelope.Although not due until January,prompt payment would be mostappreciated. A VAT invoice will beissued on receipt. If you want aphotograph printed on yourmembership card please let theoffice have a digital image.
There was much debate on thesubject of ‘retired member’ status.It was thought that rigid rules werenot needed as every case should beconsidered on its merits. Basicallyretired members status is formembers who have wound downtheir businesses but wish to stay incontact with the Institute. Retiredmembers retain many of the benefitsof membership but they obviouslywill not be included in the membersbrochure or on the website. Theywill also not be listed whenenquiries are received in the office.
TrainingCourse
STOCKAUDITOR 11
My first experience at the helm ofbeing responsible for the latestexaminations, refresher day andtraining course was an onerousone and daunting to say the least.My thanks to Steve Berry for thehard work over the last few yearsthat put in place a very goodeffective lecturing team andsyllabus for our Institute. I stillfound him a hard act to follow butwe had a very good trainingcourse as the critiques testified.
We held the last course at theHermitage Park Hotel, Coalville inLeicester. The hotel looked liketwo separate buildings - onehousing the bedroom and theother the bar, kitchen and facilities- linked by a sort of greenhousethat acted as the restaurant andbar area. Quite strange as I havenot seen anything like it before,but it seemed to work well andwas light and bright.
We only had four people on theRefresher day and theExaminations. So if you arereading this and know you areready or have been a member fora long time now is the time to bookyour place on the nextexamination in March. We aregetting to the stage that many Pubcompanies, Accountancy firmsand our Industry in general arelooking towards qualified StockAuditors to carry out work, ratherthan the many cowboy stocktakers out there. Time to TakeStock and get qualified.!!
It is a tough examination and onthe last one there was a candidate
who hit a brick wall and gave up,but the standard of what wascompleted was very high. Indeedwe had the next candidate to beawarded the George Webberaward on this course - GerrySkeels, so well done Gerry, a verygood paper and high marks.
The days are long and hard, beingon your feet all day and lecturingor helping other lecturers is quiteexhausting and draining - I wouldrather be at work !!. That beingsaid the rewards are great. Takingpeople through the course andknowing that you have impartedsome knowledge to most. Seeingtheir faces as all the pieces of thejig-saw dropped into place andthey know the why and the whatand the problem areas we allencounter in our Industry and thesolutions to those problems is verysatisfying indeed.
We had 12 people through the lastTraining Course of very mixedbackgrounds, also unusual thatthere were no Licensees present.We had one gentleman from a big
Pub Company with 24 yearsexperience and he sent a verypositive email saying he had learnta lot and would now insist that ontransfers they (and he would talkto all other BDM’s) would only usequalified Stock Auditors in future.This statement coupled with theexcellent critiques that rated thiscourse as one of the best, incontent and lecturers and ease oflearning, of the last few years isgratification enough.
My thanks to all who helped makethis course as good as it was:Chris Swift, Pat Simmons andAnton Ellender. On the plus sidewe also made a little money forthe Institute. This course was awin win course for all concerned.
Examination and trainingExamination and trainingcourse report ....course report ....Mike Murdoch F.I.L.S.A.
March 2009 TrainingCourse
Bookings now being taken 13th to 15th March 2009
Clarion HotelBlackburn
Syllabus and booking form nowavailable from the [email protected]
or from the websitewww.iltsa.co.uk
MembersPage
STOCKAUDITOR12
Step One What profit are we making at present ( 1 )Cost SP per Sales G Profit G.P. % Margin pt
drink Ex VAT (margin )
£9.02 Fosters £2.50 8 £17.02 £8.00 47.0 % £1.00£9.39 Bulmers £3.00 8 £20.43 £11.04 54.0 % £1.38£8.13 JS Smooth £2.30 8 £15.66 £7.53 48.1 % £0.94£8.08 Tetley cask £2.30 8 £15.66 £7.58 48.4 % £0.95£3.33 Wine glass 250ml £2.95 3 £7.53 £4.20 55.8 % £1.40Step Two Proposed reduction in selling prices ( 2 )Cost SP per Sales G Profit G.P. % Margin pt
drink Ex VAT (margin )
£9.02 Fosters £2.20 8 £14.98 £5.96 39.8 % £0.74£9.39 Bulmers £2.60 8 £17.70 £8.31 47.0 % £1.04£8.13 JS Smooth £2.10 8 £14.30 £6.17 43.1 % £0.77£8.08 Tetley cask £2.10 8 £14.30 £6.22 43.5 % £0.78£3.33 Wine glass 250ml £2.50 3 £6.38 £3.05 47.8 % £1.02Scenario 1 ( 3 )
100 units sold at both the actual sales price and the proposed priceCost Actual Prices S.P. Sales Ex Total Cost Tot Sales
£9.02 Fosters £2.50 8 £17.02 £902.00 £1,702.13£9.39 Bulmers £3.00 8 £20.43 £939.00 £2,042.55£8.13 JS Smooth £2.30 8 £15.66 £813.00 £1,565.96£8.08 Tetley cask £2.30 8 £15.66 £808.00 £1,565.96£3.33 Wine glass 250ml £2.95 3 £7.53 £333.00 £753.19
£3,795.00 £7,629.79 £3,834.7950.3 %
Cost Proposed charges S.P. Sales Ex Total Cost Tot Sales
£9.02 Fosters £2.20 8 £14.98 £902.00 £1,497.87£9.39 Bulmers £2.60 8 £17.70 £939.00 £1,770.21£8.13 JS Smooth £2.10 8 £14.30 £813.00 £1,429.79£8.08 Tetley cask £2.10 8 £14.30 £808.00 £1,429.79£3.33 Wine glass 250ml £2.50 3 £6.38 £333.00 £638.30
£3,795.00 £6,765.96 £2,970.9643.9 %
To maintain cash margin £3,834.79 less £2,970.96 = £ 863.83Divide the loss in margin of £ 863.83 by the margin achieved to get 29.07578sales would have to increase by 29% to maintain gross profit ( cash margin )
129 Drinks needed to be sold to maintain cash margin ( 4 ) Cost S.P. Sales Ex Total Cost Tot Sales
£9.02 Fosters £2.20 8 £14.98 £1,164.26 £1,933.39£9.39 Bulmers £2.60 8 £17.70 £1,212.02 £2,284.92£8.13 JS Smooth £2.10 8 £14.30 £1,049.39 £1,845.51£8.08 Tetley cask £2.10 8 £14.30 £1,042.93 £1,845.51£3.33 Wine glass 250ml £2.50 3 £6.38 £429.82 £823.89
£4,898.43 £8,733.21 £3,834.7943.9 %
Following on from the excellent article by Neil Johnson in the last issue, but still on the subject of happy hours,I detail a method that could be used to quantify the impact of such promotions.
It never ceases to amaze me that when trading conditions worsen the automatic response by licensees is todrop their selling prices thus reducing their already tight margins and putting further pressure on theirbusiness. One of my clients recently suggested that he was looking at reducing the price of certain productsthrough the afternoon as he was aware of a significant drop in turnover.
The danger of such activity is that it does notencourage new customers in to the unit but merelylowers the profit contribution from the regulars thatare already using the facilities. It could be furtherargued that the relatively small amounts beensuggested will do little to encourage new trade.
The client however wanted to see what the effect onhis business would be. The first step was to extractthe margins presently being obtained, apply thereduced sales price and see what the change to thegross percentage profit would be. From this simpleexercise it was plain that it would result in a 7% dropin percentage. See (1) and (2).
That however is not the full picture as that would onlyapply if ALL sales were to be at the reduced prices. Ithen decided to use a hypothetical sales figure of 100units of each product sold throughout the afternoon.By applying the sales figures to both the actual retailprice and then the reduced price it appeared that thecash margin reduced by £863.83. In this example ifthat loss is applied to the cash margin we see thatsales would have to increase by 29% just to maintainthe same cash profit. See (3)
This figure can be checked by applying sales of 1.29to the above figures. The cash margin is the same asthe original but the Gross profit percentage achievedis at the lower percentage calculated. See (4).
By clearly showing the client that he would have toincrease his trade by almost a third just to maintainhis profit the idea was shelved. Many licensees oftenimplement reductions such as this and then cannotunderstand why their gross profit has suffered. Byusing calculations such as these you can explainmathematically why it is not a good idea. Hope thishelps.
Chris Swift F.I.L.S.A.
Is it worth running ‘Happy Hour’ promotions ?Masterclass ...Masterclass ...
13STOCKAUDITOR
MembersOffer
InstituteInstituteTiesTiesAn ideal Christmas present for theman who has everything - onlyavailable to qualified members.
Available in two designs - shownhere - both are available in timefor Christmas from the Instituteoffice.
SpecialSpecialChristmas OfferChristmas Offer
£ 7.00 for 1 design
£ 12.50 for both designs
( Price includes V.A.T. and postage& packing )
Design 2
Design 1
Christmas Christmas Trivia ( 1 ) Trivia ( 1 ) The colours in Santa Claus’ suit,red and white, were the creationof artist Haddon Sundblom.Sundblom was commissioned bythe Coca-Cola Company toredesign Santa Claus, although,Thomas Nast was the first artistto illustrate Santa Claus.
Australian priests suggestsaying “Happy Christmas”instead of Merry Christmassince “merry” often referred todrinking alcohol.
Father Christmas has twoaddresses, Edinburgh and theNorth Pole. Letters addressed toToyland or Snowland go toEdinburgh, but letters addressedto the North Pole have to besent there because there isreally such a place!
In the nineteenth century, theBritish Post Office used todeliver cards on Christmasmorning.
At midnight on Christmas Eve1914 firing from the Germantrenches suddenly stopped. AGerman brass band beganplaying Christmas carols. Early,Christmas morning, the Germansoldiers came out of theirtrenches, approaching the alliedlines, calling “Merry Christmas”.At first the allied soldiersthought it was a trick, but theysoon climbed out of theirtrenches and shook hands withthe German soldiers. The trucelasted a few days, and the menexchanged presents ofcigarettes and plum puddings,sang carols and songs. Theyeven played a game of Soccer.
STOCKAUDITOR14
Competition
Food & Drink Quiz !Food & Drink Quiz !There were no totally correct answers tothe last quiz - Perrott the Purse is veryhappy. Thanks to the members whoattempted the questions.
1. What can be an island, a sweater or apotato ? The answer I had in mind wasJersey but one or two of you plumped forArran which I have allowed
2. In what month would you go to Munich forthe beer festival ? Again I have allowedSeptember as the Octoberfest starts inSeptember.
3. What country originated the term ‘plonk’with respect to wine ? Australia
4. Who appears with lamb chop ? SheriLewis
5. What food item is used in a famous annualrace at Olney ? Pancakes
6. How many legs has a lobster ? 8
7. Which food item is consumed most byhumans around the world ? Rice - one ortwo went for potatoes but when you thinkof the population of Asia and China
8. What tree does a date come from ? Palm
9. What traditionally is served with pork pieand mushy peas in Yorkshire ? Mint sauce
10. What is Mirin ? A mild sweetJapanese rice wine used in cooking
11. What is the main ingredient of Hoi Sinsauce ? Plum
12. What exactly is in Chinese five spiceCinammon, Anise pepper, Anise, fenneland clove
13. What two spices come from the sameplant ? nutmeg and mace
14. What is obtained from cassava ? tapioca
15. What type of vegetables are broccoli,brussel sprouts, cabbage and cauliflower ?brassicas
16. What are cervelat, mortadella andzampone examples of ? Continentalsausages
17. In French cooking what is a quenelleforcemeat of poultry or fish, pounded,sieved, creamed and shaped, thenpoached
18. What three fruits are found in Vimto ?Grape, blackcurrant and raspberry
19. Which well known chef runs the SavoyGrill, the Boxwood Café and the Maze ?Gordon Ramsay
20. What are ‘angels on horseback’ ? oysterswrapped in bacon
21. What colour was coca-cola originally ?Green
22. How many pints in a traditional flagon ? 2pints
23. Huller, saaz and cascade are varieties ofwhat ? Hops
25. What does Staropramen mean in itsnative language ? Old spring
26. If a dish is cooked ‘florentine’ what is itcooked with ? Spinach
27. Which brewer was the first to introducethe ‘widget’ to its can of beer ? Guinness
28. How many loaves and how many fish didJesus use to feed the 5000 ? Five loaves andtwo fishes
29. What type of pastry is used for choux ?Profiteroles - I gave you the answer andwanted the question
30. What name is given to the smokeyflavoured German beers from Franconia ?Rauchbier - its like drinking kippers
31. How does Kolsch differ from Pilsner ?This really got you going, it’s nothing todo with its colour or town of origin Kolschis top fermented (Like English ales ) Pilsis bottom fermented (like most lagers )
32. What spirit replaces vodka turning aBloody Mary into a Bloody Maria ? Tequila
33. What three grapes are used in theproduction of champagnes ? Pinot noir,Pinot meunier and chardonnay
34. How many teaspoons are there in atablespoon ? three
35. What cocktail consists of vodka, tia mariaand cola ? Black Russian
36. In 1996 what took over from Coca-cola asthe most recognised brand name in the world? As this is a food and Drink quiz I am notaccepting Microsoft or Sony, try MacDonalds
37. If you were drinking Gull lager that hadnot been exported which country would yoube in ? Iceland
38. How many years must Cognac be aged tobe designated XO ? Minimum 6 years
39. What is the nationality of the brewerGrolsh ? Dutch
40. What is wasabi ? Edible root used inJapanese cookery - similar tohorseradish but hotter.
Christmas Christmas Trivia ( 2 )Trivia ( 2 )England has only known seven
white Christmases in the entire
twentieth century. (The
definition of a white Christmas
in England is when one
snowflake falls on the roof of
the London Weather Centre.)
Every year since 1947, the
people of Oslo, Norway have
given a Christmas tree to the
city of Westminster, England.
The gift is an expression of
good will and gratitude for
Britain’s help to Norway during
World War II.
According to a 2006 survey, 7
out of 10 British dogs get
Christmas gifts from their
doting owners.
In the British armed forces it is
traditional that officers wait on
the men and serve them their
Christmas dinner. This dates
back to a custom from the
middle Ages.
It is a British Christmas
tradition that a wish made while
mixing the Christmas pudding
will come true only if the
ingredients are stirred in a
clockwise direction.
Santa has to visit 822 homes a
second to deliver all the world’s
presents in one night!
Last but not least: More people
prefer Brussels sprouts than
Christmas pudding! (But they
go soggy with custard!!)
Nice to Nice to meet you !meet you !I grew up in Rotherham, South Yorkshire and have had alove of pubs from as early as I was old enough to getserved. Much to my delight my Mum and Dad bought apub in the mid 80’s, so from the age of 22 I have lived andbreathed the pub life.
In 1992 when leases came into being, they progressed toa better pub in Tickhill – Doncaster. I left my job at BritishSteel in 1995 and joined them to develop the business fulltime. 8 years on and a new era later myself and mypartner bought a Free house in North Yorkshire, whichbrings me up to date and my new career as a stockauditor.
Through out my career I have always developed myself inthe industry, through the BII, where I am a Companion,Yorkshire Treasurer, Membership DevelopmentConsultant, and through taking qualifications. As aprofessional licensee I always valued the expertise andknowledge of our trusted stock auditor. Iwent on the ILTSA course in 2007 andhave now realised exactly how criticala professional stock audit can addvalue to a business. My views onstock auditing have changeddramatically, as a licensee I had aparticular interest in allowances!!Now I get really excited aboutdiscussing business performance withlicensees – How times have changed.
What I have really taken from my timein the licensed industry is the worth ofprofessional qualifications andindividuals who can really add value toyour business, hence why joiningILTSA was a must for me.
The past 18 months have been amassive learning curve for me, havinga small community pub with nocomputer, I have been on the ILTSAcourse, studied Excel at College for 6months and have been training 2 daysa week with another ILTSA memberSteve Jones of Jones Accountantsand Stock Auditors who has been agreat source of help to me.
Moving forwards I will be taking myexams, building up the business andhope to be an active member of ILTSA.
Martin Harper
NewMembers
15STOCKAUDITOR
Institute Date StampsInstitute Date Stamps� Personalised with your company
details
� Changeable date
� Please order from the secretary
� Allow six weeks for deliveryPrice £ 35.00 ( inclusive of post andpacking and V.A.T.)
Best practice with regardBest practice with regardto licensed trade stockto licensed trade stockvaluations at change ofvaluations at change ofbusiness ownershipbusiness ownership
Members are advised to make use of the Institute’s bestpractice when conducting changeover valuations.
Adherance to the guidelines may prevent arguments at a later date.Further copies of the guide can be obtained from the Secretary byemail [email protected] or can be downloaded from themembers’ section at www.iltsa.co.uk
56thAGM
STOCKAUDITOR16
www.iltsa.co.uk
Residential Training Seminars13th to 15th March 2009
Training courses held in March andOctober - Full details on
www.iltsa.co.uk
For further details on all aspects of the Institutecontact the Secretary, Diane Swift
on 01422 833003Always look for the letters F.I.L.S.A. & M.I.L.S.A. Tel:- 01684 878042
To many the AGM starts with theFriday trip – a chance to meet upwith old friends and hopefullymake new ones. As with recentyears we have planned for arelaxing and enjoyable outing. Wewill be picked up by coach on theFriday morning from theSpringfield and take the short tripto the scenic seaside resort ofBridport.
Bridport is home to the PalmersBrewery. The Old Brewery hasbeen in operation since 1794,surely something of a record initself. Yet another of its claim tofame is that part of the brewerybuilding is still thatched. Foundedby the Gundry family, local ropeand net makers, the business wasacquired in the late nineteenthcentury by the Palmer brothers,John Cleeves and Robert Henry. Ithas since been handed down fromgeneration to generation and once
again twoPalmerbrothers arerunning thebusiness,John isChairman andManagingDirectorwhilst Cleevesis Sales andMarketing Director.
From the outside, the brewery haschanged very little in the lasthundred years, its present waterwheel was constructed in 1879, ata Bridport foundry and is still ingood working order. After whatpromises to be an interesting triparound the brewery we willadjourn to a nearby hostelry forlunch and perhaps a few drinksbefore sauntering around the oldport. The quirky named museumof string may be worth a visit.
Heading back to Wareham midafternoon this promises to be atrip not to be missed. Bookingforms for the AGM will be in thenext edition of the Stock Auditorbut please make a note in yourdiary now !
The A.G.M. is an excellent way tonetwork with fellow members -often another member may wellhave the answer to a problem thathas been worrying you - manyproblems have been solved over apint at the bar.
The 56th A.G.M.The 56th A.G.M.Wareham, Dorset15th - 16th May 2009
