Document 6EebeB7qv1k1pp9q8yOBLj5g

FILE NAME: Thane (THAN) DATE: 1974 June 7 DOC#: THAN012 D OCUM EN T D ES C R IP T IO N : Industrial Sales Bulletin to All Salesm an R E International Talc Co TO: ALL INDUSTRIAL SALESMEN 6-7-74 FROM: PHIL KIZER - KANSAS CITY ./ :- 'J ' AaJ s SUBJECT: INTERNATIONAL TALC CO. T-226-2 Cyprus M inerals (United S ie r r a T alc) has i th at In te r n a tio n a l Talc Corporation has sc t ie s to R.T. V an d erb ilt C orp., in New Yor markets products tender the A sb estin e X, I t i s not known a t p resen t whether or o f N ytal t a lc s w i l l con tin u e to marke$ under the trad e name o f A sb e stin e , momentum fo r change in th at many oi must change su p p liers immediately^ present your asbestos free ta lc impson-Hayward duction f a c ililational Talc e t c . , trade name, an d erb ilt producers :ernajtlonal products t e , there i s now a frs o f A sb estin e products an opportune time to United S ierra. There*s a lso been a change S ie r r a has purchased R.T. V. C aliforn ia. These product ca lled Westal 202, 301, cu larly put our souther th at most t a lc s movin considered C aliforn i Talc production, in that United 's ta lc producing f a c i l i t i e s in ere produced by V anderbilt were 201, and 404. This should p a r ti- . in a favorable ta lc p osition in ; ocas, Oklahoma, and L ou isian a are Attached is a cro products produce^ cross referenc Vanderbilt ta ance supplied to us by United S ierra showing lous ta lc manufacturers. P lease use th is Set replacement o f the In te r n a tio n a l, and Westei I f you hav h e sita te th is oi q u estio n regarding rep lacem en t, p le a se do not prcting your lo c a l Cyprus M inerals r e p r e s e n ta tiv e or Sine P h il FK:kc attachment k'J Z t A EXHIBIT NO.>, 5 <-/.$ '0(, SubJ. U Stipulation of Confidentiality & Order, S**U, r o i * G rit* M tfnatrUs, ami, Jack County, M Catt Mo. #00-CV-20705< THAN 010473 SUMMARY OF REVIEW I . financial review We review ed the Branch Operating Statem ent as o f June 30, 1976 and.compared i t to same period a year ago. - " Comparative F in a n cia l A nalysis S ix Months Ended June 30 -i ./ - ' r .t- Gross P ro fit (Regular S a les) _1_9_7_5 24.4 197V7v'j?./ ^23 L f Other Costs and Income Z1 11^ n2"" S e llin g Expenses Net Warehouse and D e liv e r y Adm inistrative Expenses T otal Operating Expenses Operating P r o fit R.O.A.M. The f in a n c ia l s t a t i s t i c s <re sta t Regular s a le s have been increase been in c r e a se d b> 15 p ercen t Gross P r o f it percentage on rj only 1 p ercen t as compared fc the company. fcreentage o f regular s a le s . f^PTercent and d ir e c t s a le s have cmparable period m 1975. The es has been reduced, however, tn lercent reduction experienced by The accounts r e fle c tin ; veTe: . a) Other Cos the stani able v in 19 a n t d iffe r e n c e s between 19~5 and 1976 Sme which were lower in a l l accounts p lu s v a r ia n c e changed fTom a .4 percent unfavor1975 to a .7 percent favorable variance jng expenses were lower prim arily due to a reducflary ex p en ses from 5 .4 p ercen t in 1973 to 4 .6 per976. I I . SALES -- We d e b it and 10 c r e d it s a le s orders fo r co m p leten ess, accuracy, tim liif^ ^ ^ S f p r o c e ssin g , and adherence to company procedure. Our t e s t s did n ot I f is c lo s e any s ig n if ic a n t d e v ia tio n s from procedure. However, the fo llo w in g s it u a t io n was n oted . The branch so ld 100 lb . bags o f P & G P ie r c e on a s p e c ia l prom otion to three customers but kept the m a te r ia l in the warehouse and d e liv e r e d i t as needed. The d e liv e r ie s were made by u sin g a B i l l o f Lading as a shipping document. EXHIBIT N O .L . o fC o ftfW * * 1 * * if A.?. Gr** jaction Cou*y. HAR 000010(2a) Page two Denver Audit 136-010-6 Recommendation: The d e liv e r ie s were properly c o n tr o lle d and adequately c r o ss-r e fe r e n c e d . However, a s a le s order T-5017 should have been prepared for each d e liv e r y . The s a le s order should be marked "Shipping Papers Only - Customer M aterial". Shipments made during the au d it were handled in th is maimer. I l l , RECEIVING REPORTS 4^- . Our review o f a sample o f r e c e iv in g rep o rts processed J ^ t|||^ ^ j$ p r il 10 and May 30 in d ica ted a problem in the tim ely processijpg^fvjdqduments. E ight o f the 15 documents s e le c te d required over processed through inventory. Jr COMMENT: Two o f the documents fo r the r e c e ip t Warehouse 10C were delayed due to a la ck o f not id e n tify any other unusual circumstances^ c le r k being on v a c a tio n during p art o f the^ caused the problem. The Operations date stamp a l l r e c e iv in g rep orts when tl would have been our recommendation e r a tio n s Manager, id e n t if y whether home o f f i c e . of Potash at "ets. We could an the inventory which could have th at the clerks iht to Kansas C ity . This pon a n a ly s is by the Opis at the branch or the TV. IMPREST CHECKS Our review o f im prest cl procedural d eficien cies in our review . a. We noted two c being charged( Drayage Exp n May - July did n o t d is c lo s e any he fo llow in g problems were id e n tifie d ic h the c o s t o f c it y d e liv e r ie s was 2165, F reight Expense, rather than 2166, We su g g ested th at the Operations Manager ^accounting department to transfer the charges "2165 to account 2166. We a lso su g gested th at the k ^__ Manager review the im prest checks w r itte n betTee:* J^.anUagr^and May which were coded to account to determine further changes are required. charges t o t a l l i n g $155.00 were paid to the fr e ig h t payment jlaitfbetween June 8 and Ju ly 5. COMMENT: The O perations Manager sta te d that the fr e ig h t payment plan w i l l be term inated on August 30, 1976. Subj. to Stipulation of Confidentiality * Order Stmlt.el / 4.A Green fc/rueruriea.e* <-. Jack County. MO. HAR 000011(2a) Page three Denver Audit 136-010-6 CREDIT AND COLLECTION We performed an in depth review o f the J u ly 30, 1976 Aged T r ia l Balance w ith the Branch Manager and the O perations Manager. Procedures fo r "the review and approval o f a l l s a le s on open account were e x c e lle n t 'The .. Branch Manager i s a c t i v e l y pursuing the c o lle c t io n o f p a s t dueTaccoiints and is working v ery c l o s e l y w ith s a l e s p erson n el to m aintaia^ c^ tom e.ts in '*a cu rren t s t a t u s and w ith in e s t a b lis h e d c r e d it l i m i t s . a We noted in our r ev iew th a t some custom ers had e x c e e d e ^ q r ^ ^ t i i m i t s because o f the in f la t io n a r y impact on the c o s t o f m e r c h a n d ise ^ We a ls o noted several in sta n c e s where approval to exceed or jifeangeSgi^credit lim it r eceiv ed over the telep h on e was n ot documented, e x ^ jp a n o ta tio n on the customer card. Recommendstions: a) C redit lim it: i c a l l y and any changes s e n t to review and approval. reviewed periodnager for his b) The Ope sending a confirm ation to the received over the telep h o tj^ ^ ^^anager should consider Manager fo r any approvals VT. INVENTORY MANAGEMENT We reviewed the July 30. Manager to i d e n t if y th ose p shown on Schedule A valued and the Branch Manager them. the Branch Manager and O perations were slow moving. Those items ,582 were id e n t if ie d as slow moving -:ould make a s p e c ia l e f f o r t to s e l l We a ls o noted th a t lower turn than ac processing the in u n til the re c e i prepared. iu r ia te in warehouse IOC was r e f le c t in g a ir ie n c e d . T his was due to the s a le s OTder tr a n sfe r betw een 10C and 10A b ein g delayed and p rod u ction order fo r warehouse 10C were The s -le s order to tr a n sfe r the prod-'.M beeef vareh ou se 10C and 10'. -ruould be prepared a t the time namerc>.'*ndii'e i s p h y s ic a lly -A?d. VII. We conducted a s a f e t y in s p e c tio n o f .t h e branch and review ed appropriate docum entation. The fo llo w in g e x c e p tio n s were noted: 1. A sb estos f ib e r s were on the f lo o r where the m a te r ia l was sto r e d . 2. S a fe ty p a l l e t s were n ot a v a ila b le to move c h lo r in e c y lin d e r s . Subj to Spulauoit of ConfidentuJity Order, Soule, et ai. v. A.P. Refractories, C* Mo JWO-CV-207056 etaL.Jackson County. WO. HAR 0000l2(2a) Page four Denver Audit 136-010-6 VIII. COMMENTS; The fo llo w in g a c tio n co rrected the noted d e f ic ie n c ie s . a. The a sb e sto s was so ld the day a fte r our au d it and removed from the warehouse. -j- b. S a fe ty p a lle t s were obtained a t no c o st from th e'c h lo r in e su p p lie r . ; > f TRANSPORTATION j^Bl ^ ----------- We reviewed the d r iv e r s log for the one o v e r -th e -r o a d nriYg$~ror the month o f J u ly . The fo llo w in g e x c e p tio n s were noted 1 . The d r iv e r was not documenting the p re-trjj inspection. 2. The summary s e c t io n o f the log was for 3 days, COMMENT: The e x c e p tio n s were d isc u ssed wij during our audit. Subi- SnpuUiio o f ConWernisV * O nto Sud*, el aL <.? c """ C ue So OO-CV-MTOS HAR 000013(2a)