Physical inventory

What is a Physical Inventory System?  

A physical inventory is conducted when a person actually looks at and records all the gambling product in play and unplayed at the end of the month. The purpose of the physical inventory is to detect missing or stolen games and identify recordkeeping errors by verifying the perpetual inventory record.

Who Should Conduct the Physical Inventory?  

The physical inventory is conducted by someone going to each premises, and other locations such as a storage shed, where unplayed games are kept. The person makes a list of all inventory—games in play and games not yet played—for paper pull-tab games, tipboards, paddletickets, bingo paper, and raffle tickets. 

• For good accountability, the physical inventory must be done by someone other than the person who maintains the perpetual inventory records or who controls the inventory on a daily basis. 
• Do not assume that the “physical inventory” compiled by your software is accurate. It must be verified by going to the site to ensure that the inventory is actually there. 
• A physical inventory must be conducted on the last day of each month or the first day of the next month before the start of play. 
• The person or persons taking the physical inventory must sign and date, in ink, the inventory sheet after completing the inventory list.
  

Physical Inventory Information

Bingo—Use form LG903, Physical Inventory Control/Bingo Paper Monthly Summary. 

Raffles—Use form LG821, Physical Inventory/Raffles.

Paper pull-tabs, tipboards, and paddletickets—For each game in play and for games not yet played, list the following on the LG846 Physical Inventory/Paper Pull Tabs, Tipboards, and/or Paddletickets Monthly Report: 

• name of the game 
• part number 
• serial number 
• manufacturer ID 
• cost of the game, not including sales tax 

The physical inventory balance does not include closed games or games returned to the distributor for credit.

Verifying and Reporting the Physical Inventory 

The month-end physical inventory record must be compared to the perpetual inventory record. Investigate and correct any differences. 

• For each site, enter the total value of the ending physical inventory on the LG100A. 
• The total amount must also include: 
  • the cost of bingo paper, whether paid or not, from the LG903; and 
  • the cost of raffle tickets from the LG821. 
• Include the physical inventory in the gambling report presented to your organization’s members at the next monthly meeting. 
  

Required Forms to Use 

Paper pull-tabs, tipboards, and paddletickets - LG846 

Bingo - LG903 

Raffle tickets - LG821