Tully Risk & Assurance Audit

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Site conducted
Document Number
Conducted on
Prepared by
Location

CASH HANDLING

Cash Office Float

Perform a Register Float balance with Cash Office Manager - does the Office Float Balance? (Record value of Office Float, individual register floats usually should be approx $300 at end of day with a max limit of $1,500). Include all registers not used in the safe.
NOTE: Physically check office float on the day and agree to the safe ledger check
Has the safe check ledger been completed on a daily basis?
Sample Size: 1 week
Is there evidence of the site manager performing a random count per week of the safe check ledger?
Sample Size: 8 weeks
Have the Daily Float Register Forms been completed. Ensure the declared float value equals the amount from the previous days closing value for each Till. Use the Tills - " Tender Declaration" as the verification for the $ amount.
NOTE: Company policy is that POS floats are to be $300 unless authorised by the Area Manager. However this is a rolling balance...the till is not put back to $300 at the end of each day
Sample Size: 2 weeks

Postings

Are Safe Drops being performed regularly to ensure POS does not contain more than $1,500? Spot check this on site visit.
Note: Circumstances where customer has paid for large amount but this will be processed and subsequently banked
Sample Size: on day of visit
During the 'end of day process' is under/over banking performed correctly and due to valid reasons? Has the till variation report been signed off for variances greater than $20 as evidence of investigation

Admin

Obtain a copy of the safe combination holders form (safe key holders if no combination safe). Does this match to the current authorised personnel who have access to the Store's and the two key safe?
Sample Size: on day of visit
Has the safe combination been changed as per policy? Policy: The safe combination must be changed when: 1. Anyone who knows a combination ceases to have access to the safe 2. An authorised person returns from leave and the interim combination holder is no longer required to hold the safe combination 3. A combination holder leaves the Site or Company- Any time it is believed the safe combination security has been compromised...... Each time the safe combination is changed the Safe Combination Holders form is to be filled out, printed and placed in a plastic sleeve on the inside of the safe door. If a new combination holder is added include them on the existing form.
Sample Size: 2 months, enquiry

Petty Cash & Social Club Funds

Do the petty cash receipts held reconcile to the petty cash report? If not, what investigation and action has the store taken.
Does the store have social club funds? If yes: 1. are the social club funds separated from the store funds? 2. Are they locked up/secure?
If the store has social club funds is the 'Social Club Monthly Reconciliation Sheet' completed and reviewed by 2 separate individuals.
Sample Size: 2 months
If the store has a social club funds is the 'Social Club Quarterly Review' completed by Store Manager and reviewed by the General Manager.
Sample Size: 1 quarter

SECURITY

CASH OFFICE

Is the location of the Safe kept secure at all times when unattended
Is the Safe kept locked in line with policy? POLICY = 1. When the office is unattended 2. When the office door is opened or unlocked 3. Outside of trading hours
Sample Size: on-site
Are all register floats locked in the safe?
Sample Size: on-site
Sight the yellow 'Cash collection Summary' and check that it has been completed appropriately. If change is provided by Armguard/Security Co. then sight the cash docket provided.
Sample Size: 2 weeks

Front End

Are all POS not used signed off and locked. If retail layout are barriers errect.

Back Dock

Is the receiving area closed and secured when unattended?

General

Are CCTV cameras and monitors working? (where applicable)
Is the CCTV DVR recorder working and is the date/ time correct? (where applicable, not all stores have DVR recorder)
Does the Store Manager / Duty Manager know how to use the CCTV and review the CCTV footage? - Ask the Manger to demonstrate (where applicable - not all stores have DVR recorder)
Is there a sign visible to customers and staff advising that CCTV is active in the store?
After hours call out sheet:- Review alarm panel for authorised users. Ensure staff who have left are no longer listed.
Key holder information sheet:- Review the key holder information sheet. Are the contacts/after hours call our details current? NOTE: If the key holder is on leave the sheet must be updated.
Have all team members listed signed the sheet? Are all permanent keys accounted for on the register?
Has the Store Manager hand-over checklist been completed if there has been a change in Store Manager?
Sample Size: on-site, as for the latest copy
Has user access been removed for terminated employees? Obtain user maintenance list for store from IT and confirm it has been actioned.
NOTE: This report is currently N/A until notified by Frank Schmitt
Sample Size: 3 months

STOCK CONTROL

Stock Control

Note: Questions relate to physically sighted deliveries ONLY. If no deliveries, then mark as NA
With the exception of warehouse deliveries, is the purchase order checked against the supplier invoice or delivery docket against packs, pallets or boxes prior to the completing the direct delivery and letting the driver leave?
Are ALL physical products received checked off against the supplier invoice or delivery docket? Is the invoice/delivery docket stamped, dated, and signed by the person receiving?
If there are any discrepancies (e.g. difference in qty or length), did the Receiver action any adjustments required? Example of actions that can be taken: Circle variance/mark docket. When processed, contact supplier (if 2nd delivery expected PO filed in PO folder) or raise a negative PO to credit variance.
Are all direct suppliers Invoice/Purchase Order adjustments captured in POS system correctly? i.e. stock receipted into the POS system?
Review up to 12 invoices/ delivery dockets held in Garden, Retail and Timber (up to 4 from each). Are there any invoices / delivery dockets for stock delivered in full prior to yesterday which have not been processed through the system? Note: Receipting in the system with 24 hours of stock received.
Outstanding Purchase Order Report Are there any old dated entries on the “Outstanding Purchase Order” report? If yes how many? Note: Question PO's outstanding 1 month overdue or more.
Has the wastage been captured completely and correctly? Physically sight the bin and if product in there identify how it has been reported, what stock adjustment code was used. 1. Select 5 damaged goods and trace through to stock adjustment report. 2. Review (SOH) stock adjustments for the last 2 weeks and sight that the damaged stock code is being used. See if there is a link to a supplier claim - discussion with Store Manager.
Sample Size: 2 weeks & on-site
Review the Stock Adjustment Report for the previous 2 weeks. Were there any unusual and/or high value or quantity adjustments processed? Did Management investigate these?
NOTE: The Store Manager must investigate adjustments of $200 or more. General Manager or Group Operations Manager must approve adjustments that are $2k or more. NOTE: the Stock Adjustment Report must be reviewed daily by the Store Manager, signed and filed for 3 months as evidence of review.
Sample Size: 2 weeks
Is the daily price override report reviewed, signed & filed for 3 months by the Store Manager?
Sample Size: 2 weeks
Review the Credit Note and Refunds Report from the previous two weeks for large quantity or high value Refunds. Have all excessive refunds or anomalies been documented as investigated? The Store Manager must investigate claims for $200 or more, sign and file the reports.
Sample Size: 2 weeks
"Refund Register: Sight the refund register located near POS and review to see if refunds are documented. Sight sign off by Supervisor/Manager for refunds greater than $50 and Store Manager signature for refunds greater than $200.
Sample Size: on-site
Sight daily reconciliation of refund register to refund report with evidence of manager review.
Sample Size: 2 weeks
Print the suspended/deferred/parked sales report for 2 registers. Have all suspended sales been actioned (recalled and cancelled)?
NOTE: Look at previous days z report identify any suspended sales on POS. Sight POS suspended sales that are greater than a day old. NOTE: This is a daily control. Risk of not processing a sale (inventory being held in system for sale) by the person doing End of day process.
Select 5 (max.) orders despatched in Retail and Timber. 1. Has a delivery docket been generared for each order? 2. Does the quantity on delivery docket match the pick slip?
Sample Size: on-site
Select last 5 deliveries already despatched. Have these deliveries been converted to invoices in the system? NOTE: Use same sample as above. Risk: stock delivered not invoiced
Yard Slip Reconciliation- Are yard slips presented by customers being reconciled daily to yards slip issued? - Are yard slip reconcliations conducted to identify drive offs? If so, has there been follow. Note: Yard slips are usually reconciled at the end of every day.
Sample Size: 1 week
Review the trading floor and identify if there are any empty shelves. Check the system to see if these lines have zero physical SOH in store systems? Sample size of 10 lines. Document details of exception where nil product physically but system SOH says that there is a quantity of stock.
"Review Timber Cutting Record (see example attached) at Trade desk and ensure that daily records are kept of Timber cuts ( example 6m cut to two 3m lengths) and stock is adjusted in AX system. Evidence of AX system adjusted is the daily SOH report.
Select 1 week sample and sight Timber Cutting Record to SOH Report to ensure adjustments have been put through in POS"
Review the Negative Stock report reviewed by the Store Manager. Identify whether the negative stock corresponds to the stock adjustments report of the following day and whether the correct codes are used to process the negative stock adjustment. See if the same stock is appearing for mulitple days as this is evidence of the report not being cleared.
NOTE: Negative stocks must be printed, reviewed, signed off, and filed daily.
Sample Size: 1 week
Price Integrity - Test scan a selection of 15 products from different categories to ensure the correct price is on display. Note down how many price errors were found?
Obtain the last 2 product withdrawals/recalls (within the past 6 months). 1. Have the products been actioned/removed from show as per the initial instructions? 2. Have the products been actioned as per most recent instructions (i.e. held in quarantine, dumped, returned to vendor or shelf, relabelled etc.)? 3. Has the recall poster been put up? 4. Has the recall folder been updated this?
NOTE: Obtain list of products from Frank Schmitt. Ensure you sight the recall folder, recall quarantine area and poster for recall.
Sample Size: 6 month period
Outstanding Sales Orders: 1. Review the Outstanding sales order report to see if action has been taken and management have reviewed the report? 2. Identify the oldest order - How many days has the order been outstanding for the customer?
NOTE: you should not see any orders older than 1 month if it has being actioned appropriately (in most cases).
Review the "Stock Return Label" to identify the oldest repair/claim. How many days have the items been waiting repair/claim?
NOTE: Timeframe within 7 days is reasonable to take action and try to resolve. More than 7 days is considered not good customer service.
Select 5 items (max) in the credit/returns area. Sight if follow up action has been taken... Has the return authority (RA) been obtained (where applicable) for the item selected?
Possible action we expect Store Management to take: Has the supplier been contacted for return or replacement or waiting for warehouse to come back on what to do. If no RA, this will be a discussion with the Store Manager.
NOTE: An RA (reference #) is provided by the supplier. If financial reimbursement is required this reference is quoted. Not everything will have an RA (IHG HO is working on credit policy and procedures at the moment).
Example of products that require RA are: expensive power tools, lawn mowers, higher value items.
Customer/Store Items awaiting Repair - Hazardous Substances 1. Are there any items awaiting credit/repair that require fuel to operate or contain hazardous substances e.g. petrol, gas, flammable substances? 2. If yes, Is the item/s free of fuel/hazardous substance?
Water Efficiency Label - WELS; Walk through the plumbing display section selecting a random 10 items ( not in package) and check if there is a water efficiency labelling sticker attached to the product or details noted on the shelf ticket?
NOTE: WELS products are; Lavatory equipment, Urinal equipment, Taps intended for use over a basin, sink ot tub (excluding over a bath), showers for personal bathing, flow controllers, clothes washers - including combination washers/ dryers, the dryer function of combination washer/dryers and dishwashers.
Where a water label is not attached, has the supplier been contacted to obtain a replacement label?
Sight that single use plastic bags are not in use by store. Single use plastic bag ban state specific legislation.
Notes: Victoria (legislative effective from 1 Nov 2019), question only applicable from 1 Nov 2019 onwards.
NSW - this question is not applicable, no legislation present. QLD, ACT, TAS, WA, NT - legislation is effective. Question is applicable.
Catalogue - only for stores with catalogue. Obtain the apology notices which correspond to the current brochure/ advertisements. Are they displayed as required? NOTE: obtain the latest bulletin to see whether there was an apology notice prior to audit
Margin Report - Is the Margin Report reviewed by the Store Manager (note daily report).

PAYROLL

Recording of shifts

"Select 2 full time or part time and 1 casual (if available) employees for review. Are selected staff clocking in and out of the payroll system? Times are not overridden in pay roll. Are comments entered in payroll Timecard to justify any amendments.
Verify the daily exception report is being printed and any schedule adjustments have been reviewed, signed off by the Store Manager and these exceptions have been correctly applied to the payroll system.
Verify the weekly employee transactions and totals report is printed, hours have been verified to the payroll report and Store Manager has signed these off.
Sample Size: 2 weeks
Ensure all reports have been stored in a secure location that is accessible only to the Store Manager.
Verify for 2 full time and 1 part time employee, roster contract has been completed and signed by the employee and manager and that the roster contract has been correctly applied in the payroll schedule
Award Conditions Conduct inquiry with 2 truck drivers on how they manage their meal breaks. Award Conditions
"Rostered Hours: Are the current week's and next week's rosters on display on the noticeboard/available to all staff?
Personnel files for award employees are stored in a secure locaton. Identify letter of offer, right to work verification is stored.
Verify leave form for 2 full time and 1 part time employees are stored on file and entered on the payroll system.
"Select a sample of 3 employees in the store working on Visa. For each employee check that the no. of hrs worked for the last 2 rostered weeks worked agree to Visa working hour restriction.
i..e if Visa restricts employee to work 20 hrs check last 2 rostered weeks worked and note down number of hours worked and compliance with Visa (yes/no)"

SHE

Test question may not impact scoring Company Licences & Insurance Review the Work Request book in store. Select a sample of 5 random contractors and compare the name in the book to the listing of approved contractors. If any of the samples do not agree to the listing take a picture of the page and inquire the reason behind it. It maybe possible that a subcontractor of a company we use such as 'Recomm' did not write the correct name. This requires further discussion and inquiry. For all sampled contractors not on the list ensure the following documentation is maintained by the store: - Public liability insurance document - Workers compansation/accident insurance Waiting to obtain contact list for Penrith, Katoomba, Glendale Note: JV stores have no central listing as yet form IHG and is work in progress. In such case for the 5 sampled contractors inquire with the store if they have the approrpriate documentation: - Public liability insurance document - Workers compansation/accident insurance
Background: IHG head office maintains a list of approved contractors for which the appropriate documentation are kept (public liability, workers compensation/accident insurance, professional indemnity). However, it is the managers responsibility to ensure the contractor they hired is on the list.

There are 2 scenarios that could result in store not using the list and not being known by the Company Store Team (IHG head office):
1. If it is a new vendor this will be identified as it will require Frank Schmitt (operations support manager) to approve the vendor. But if the vendor was set up a significant time period ago it is possible for this payment to be processed and not made known to the central company store team (Frank and team).
2. We are aware that IHG IT have subcontractors to assist company stores with data/IT issues. It is IT's responsibility in such case to ensure they hold the sufficient paper work. If 1 of the samples is this please take a picture so that we can investigate further with IHG IT team.
Perform a walkthrough of the store (lunch room, offices, trade desks) and sight if the electrical equipment have been tested and tagged within the past 12 months?
High Risk Requirements Review the work request form book and select the last 3 high risk tasks (documented over a 6 month period). Review the corresponding documentation in the permit to work book. Identify and key variances.
Safety Signage Requirements - Safety Notice Board Is all the required safety signage displayed as per the state specific Safety Noticeboard Layout? Note: Please note each state has different safety board and this has been updated for FY20.

Emergency Management - Fire Maintenance & Hazard ID Requirements

Have all fire extinguishers, hoses, hydrants and blankets (where applicable) been tagged as tested within the last 6 months?
Do all fire extinguishers have a fire equipment sign located above them to indicate their position?
Is there a plan of the building on display that indicates the location of fire equipment and the evacuation assembly area? (This should include all buildings on the overall site). Also review any off site locations.
Are all fire exits, fire paths and fire equipment free from obstruction?
Emergency evacuation boards - Are all the required information per the attached Emergency Control Organisation (ECO) on the board? All states have the same requirement.
Firewarden Competency Select a sample of the following from the notice board: - the Chief fire warden; and - one fire warden team member and check warden competencies. Warden competency can be in the following forms (course attendance list, register or certificate) "
Fire impairment permits Ask the Store Manager if they had any fire impairments in the financial year. If yes, sight the completed Fire impairment notification template. If no, ask the manager what they would do if they had a fire impairment? Store Manager needs to know the following 2 details: - completing the 'Fire Protection & Security Impairment Form' - Location of where this can be found
Are all fire exit signs illuminated?

Safety Packs & Checklists

"Was the Risk and Safety Pack completed in full for the previous month?
"Was the last scheduled Emergency Evacuation Drill completed as required within last 12 months? Sight the evacuation review form.
Daily Safety Checklists - Truck and Crane Truck Were checks completed for the previous 7 days for the Truck and Crane Truck Pre Start Checklists Checklists are to be completed for each day the truck or crane truck is in use.
Daily Safety Checklists - Forklift/Stock Picker & Side Loader. Were checks completed for the previous 7 days for the following Ride On Forklift/Stock Picker & Side Loader Pre Operational Check? Checklists are to be completed each day equipment is used. "
Daily Safety Checklists - Walkie Lift Truck, Electric Pallet Jack Were checks completed for the previous 7 days for the Walkie Lift Truck, Electric Pallet Jack or other like equipment Pre Operational Checks? Checklists are to be completed each day equipment is used.
Daily Safety Checklists - Machines in Timber Department/Plant Were checks completed for the previous 7 days for the Daily Checklist of Machines in Timber Department/Plant and Equipment such as the Radial Alarm Saw, Altendorf Saw, Spida Saw, Drop Saw, D076 fork lift, D120 crane truck, paint mixers, key cutters? Select a sample of 1 products? Checklists are to be completed each day equipment is used. "
Daily Safety Checklists - Store BBQ Were checks completed for the previous 7 days for the Store BBQ Pre Operational Checks? Checklists are to be completed each day equipment is used.
Truss Plant Checklist Were checks completed for the previous 7 days for the Nail Gun Pre-Operational Checks? Checklists are to be completed each day equipment is used.
Truss Plant Checklist Were checks completed for the previous 7 days for the IHG SWOP Hand Circular Saw Operational Checks? Checklists are to be completed each day equipment is used. "
Truss Plant Checklist Were checks completed for the previous 7 days for the IHG SWOP Jib Crane Operational Checks? Checklists are to be completed each day equipment is used.
Truss Plant Checklist- Were checks completed for the previous 7 days for the Blue Jig & Button Chord Press Pre-Operational Checks? Checklists are to be completed each day equipment is used.
Truss Plant Checklist - Were checks completed for the previous 7 days for the Wall Frame Line Pre-Operational Checks? Checklists are to be completed each day equipment is used.
Truss Plant Checklist Were checks completed for the previous 7 days for the Mango Saw Pre-Operational Checks? Checklists are to be completed each day equipment is used. "
Truss Plant Checklist - Were checks completed for the previous 7 days for the Truss Shed & Yard Checks? Checklists are to be completed each day equipment is used. "

Licences

Driver's Licence- Do drivers of company delivery vehicles hold current driver's licenses on them or in their training file? Select a sample of 3. Note: Check the D075 Licence and Equipment Authorised User Register kept in store.
High Risk Licence- Do operators using applicable machinery have a current "High Risk Work Licence" on them or in their training file? Select a sample of 3. Note: Check the D075 Licence and Equipment Authorised User Register kept in store.

First Aid

Number of trained first aiders - The following ratios are recommended: • low risk workplaces – one first aider for every 50 workers-this applies to corporate offices. • high risk workplaces – one first aider for every 25 workers- this applies to stores. Does the store have the required number of First Aid attendants? Note: Check D133 Store first aid team poster on the safety notice board.
BR-L14 – First Aid Certificates - First Aid Qualification. Do all staff on the First Aid listing hold current first aid qualifications (i.e. certified in the last 3 years)? Note: Check first aid training register. Note: Check first aid training register

Hazardous Goods

Review storage and display of Hazardous Goods to ensure it complies with regulations Do Schedule 5 & 6 Poisons meet display requirements? Are these goods located in the correct area out of the reach of children and away from non-compatible items? About 1.2 m off the floor unless it has a safety cap. Note: Go to store aisles, gardening, painting and domestic cleaning.
Review access to Material Safety Data Sheets (MSDS) Check 2 staff members and ensure they can access the MSDS via the Chemwatch site. Were the 2 staff members able to access the Chemwatch site?

Traffic Management - Trade Yard

Are pedestrian crossings clearly marked?
Is there clear warning of load shifting equipment hazards?
Is there external controlled speed limits in place for trucks, customer's or visitor's vehicles to the site?
Are truck loading/unloading areas clearly marked? Note: Check line marking is clear and not faded worn. Check signage and portable traffic management cones being used.

Training Records

Training Records - Select 3 employees (ensure 1 employee is trade yard staff) and determine what equipment is used by these members of staff. Do all selected employees have the relevant training sign off on file to verify the safe use of each piece of equipment used? Conduct the following 3 checks: 1. check store training register 2. check trade yard PPE staff box located near saw cutting equipment (for only trade yard staff) i.e. gloves, ear muffs and safety glasses 3. check site health & induction D024 process and D125 SOP sign off by individual employee and line manager.

Risk Management

High Potential Incident Obtain the HPI (High Potential Incident) Register from Heidi 2 weeks prior to the audit. Select 1 sample for testing in store. On site testing - for the sample selected sight that the ICAM form is completed. Do a page turn to ensure form appears complete but ensure that corrective action is documented and status of open/complete is noted in the ICAM form. Note: The same sample can also be used for the procedure noted below for 'Incident Register'.
Incident Register Obtain the Master Incident Register from Heidi 2 weeks prior to audit. Review register to identify if there are any incidents logged for the store. If unsure contact Heidi directly to confirm sample. Select one sample to test in store. On site testing - for the sample selected sight corresponding incident register. Note: All the same columns completed in the Master Incident Register should be completed in the incident register kept in store. Particularly pay attention to corrective action noted."
Hazard Register Sight a copy of the latest completed SHE (Safety health & Environment) monthly pack for the store this is saved in shared drive and also printed and kept filed. Select 1 hazard reported in the pack and sight corresponding hazard register. Note: Ensure the hazard register is completed, particularly pay attention to corrective action noted."

GENERAL COMMENTS

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Tully Risk & Assurance Audit

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Cash Office Float

Postings

Admin

Petty Cash & Social Club Funds

CASH OFFICE

Front End

Back Dock

General

Stock Control

Recording of shifts

Emergency Management - Fire Maintenance & Hazard ID Requirements

Safety Packs & Checklists

Licences

First Aid

Hazardous Goods

Traffic Management - Trade Yard

Training Records

Risk Management

Related checklists

Tully Risk & Assurance Audit

Free Tully Risk & Assurance Audit Checklist

Go digital today!

Convert your paper checklists into digital forms

Cash Office Float

Postings

Admin

Petty Cash & Social Club Funds

CASH OFFICE

Front End

Back Dock

General

Stock Control

Recording of shifts

Emergency Management - Fire Maintenance & Hazard ID Requirements

Safety Packs & Checklists

Licences

First Aid

Hazardous Goods

Traffic Management - Trade Yard

Training Records

Risk Management

Related checklists