Professional Documents
Culture Documents
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ADMINISTRATION
POLICY NO. SUBJECT ISSUE DATE
DUE DATES CONTROLLERS PERIODIC CHECKLIST BACKGROUND INVESTIGATIONS OF EMPLOYEES INTERNAL AUDIT LOCAL STANDARD OPERATING PROCEDURES
AD04 AD05
12/01/05 12/01/05
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POLICY To define dates and times that reports are due to the Tecton corporate office. RESPONSIBILITY It is the responsibility of the General Manager to insure that all reports are delivered in a timely fashion. SCHEDULE REPORT Weekly Managers Report General Managers Critique Financial Statement Balance Sheet & Supplemental Star Report End of Month Sales Report Full Year Forecast Capital Projects Recap Controllers Checklist CST Trend Report Cash Flow 4 Weeks Management Fee DUE DATE Monday 10th of Month 10th of Month 10th of Month 10th of Month 10th of Month 10th of Month 10th of Month 10th of Month 10th of Month Monday 10th of Month TIME Noon Noon Noon Noon Noon Noon Noon Noon Noon Noon Noon Noon METHOD E Mail Multiple copies delivered Multiple copies delivered Multiple copies delivered Multiple copies delivered Multiple copies delivered Multiple copies delivered Multiple copies delivered Multiple copies delivered Multiple copies delivered E Mail Made payable to Tecton
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POLICY The Controller is to establish a review of key procedures to safeguard the financial operation of the hotel and to assist in the compliance with the Key Financial Controls. RESPONSIBILITY It is the responsibility of the Controller to ensure that reviews are in concurrence with the frequency indicated. PROCEDURE The Controller and/or Assistant Controller is to review the following procedures as indicated: 1. Daily a. Follow up on Accounting Department discrepancy reports (Night Audit and General Cashier). Correspond with Night Audit (if applicable) through daily log book. Review all guest ledger adjustments, paid outs and gift shop discounts. Review management house charges; route to Executive Committee for approvals. Review daily revenue report. Review credit limit report after reviewed by Accounts Receivable and approved by the Front Office Manager. Review security reports. Review credit approval for groups. Review guest ledger control figure to ensure it balances to guest ledger and its corresponding general ledger balance.
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Review daily bank balance for current cash position. Receive and review Executive Secretarys city ledger payment log; verify with account receivables posting of payments worksheet to ensure daily posting. The same applies to Advance Deposits. Sign off and verify all account receivable adjustments and credit card adjustments. Review daily over/short report and ensure departmental follow up and adherence to policy. Review room discrepancy reports.
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Weekly a. Review all over 60 day accounts, returned checks and charge backs for collection efforts. Review wage progress reports at Executive Committee meeting. Review deviations with Department Heads, i.e., where productivity goals are not being achieved. Distribute computer overtime reports to respective E.C. members. Distribute weekly revenue comparison to forecast and budget report. Review audit of time punches for each department on a rotating basis at least one per pay period. Review audit of employee tips reported for minimum wage reporting and declaration at least one department per pay period. Review petty cash reimbursement. Attend and participate in weekly sales strategy meeting. Review invoices and other backup for accuracy when checks are signed.
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Review city ledger transfer and control card. It should balance to city ledger and its corresponding general ledger balance. The clearing account should be zero. Review income journal and other night audit work for accuracy, including advance deposit reconciliation.
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Monthly a. Review wage statistics reports for incorrect coding. Resources of bad codes to correct. Review all outstanding wage advances. Reconcile all balance sheet and bank accounts prior to the close of the following month. Ensure any outstanding items in A/R clearing accounts and miscellaneous receivables clear by next closing. Reconcile individual capital expenditure summaries to the general ledger and ensure compliance to Tectons Capital Expenditure Policy. Ensure that credit meeting is held with the proper personnel. Review the tax exempt report and ensure that all Sales, Use and Occupancy Taxes are paid timely and accurately. Ensure that all trade out reports are prepared accurately. Ensure all cashier banks are counted on a surprise basis at least once a month. Review all contracts for accuracy. Audit General Cashiers safe at least twice per month on a surprise basis. Review gift shop period markdown report for excessive or unusual markdowns. This can be an indication of improper buying and/or pricing procedures. Balance food and beverage purchases with the Chef and Director of Food and Beverage to ensure that all invoices are accounted for before closing the period. Advise Human
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financial
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Corporate
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Review general ledger transactions. Participate in (Accounting Representative) and review all inventories. Review/test liquor pars and potentials. (Perform more frequently if beverage cost is out of line.) Verify that budgeted price increases are implemented as scheduled and review changes to pricing strategy as necessary. Review pro-forma on all proposed pricing changes to evaluate full impact. Prepare and submit full year forecast prepared on a line-by-line basis. Involve Executive Committee in preparation of projections ensuring trends are utilized. Review most recent forecast to actual results to critique and improve accuracy. Test Food and Beverage receiving practices. Ensure that all franchise fees, management fees and royalties are paid in accordance with the management and franchise contracts. Review banquet service charge balance.
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Other Periodic Requirements a. Follow up on response to internal audit program. Inspect for compliance with appropriate action to be taken. Coach and counsel department associates and managers as needed. Update goals and development plans via rap sessions and annual reviews. Complete Controllers self evaluation once a year. needed. Audit other areas as
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d. e. f. g.
Conduct a complete payroll payoff twice a year. Periodically require bids on supply purchases. Verify accounts payable via vendor letters at least annually. Make surprise counts of selected cashiers drawers in use on a quarterly basis. Review adherence to Record Retention Policy at least annually to ensure compliance with state and federal guidelines. Review and update the contracts and leases file annually. Require telephone audit to be completed annually. Complete Quarterly Sales and Catering Bonus Worksheet and Annual Executive Committee Bonus Worksheet. Ensure all real estate taxes and mortgage payments are paid in accordance with the management contract. Ensure all Tecton and Owners payments are paid promptly. Update Accounting S.O.P. Manual as direct from Tecton. management and enact policies. Educate hotel
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At least quarterly, test and verify the accuracy of all payroll taxes, deductions and accruals. Ensure the medical employee/employer calculations are correct. Once a year, the Controller and the Assistant Controller will work (at a minimum) one night audit shift each, separate of one another, to ensure night audit controls are at an optimum.
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POLICY All employees are to have background checks performed prior to a final offer of employment. RESPONSIBILITY It is the responsibility of the property Human Resources Department to see that a complete and thorough investigation is made of all employees. When a promotion or transfer into a cash handling or high guest access position is made, additional background checks should be performed. High guest access positions are housekeepers, engineers, bell persons, storeroom clerks and receiving clerks. PROCEDURES ALL EMPLOYEES: Reference check with at least three prior employers, if applicable, with determining reasons why they left each of their jobs. Verify dates of employment, pay and rehire status. Obtain as much information from the direct supervisor or department head. If the applicant is still employed, his or her present employer should not be contacted unless advance approval is obtained from the applicant. In the event of employment, materials directly related to the interview process should be retained as a permanent part of the employees record. CASH HANDLING EMPLOYEES, SECURITY OFFICERS & HIGH ACCESS POSITIONS: An outside reference/background verification company may be used for these searches. The employee must give written authorization to proceed with this investigation. The investigation should include: Credit Check Arrest record check in each city or state for the past 5 years Verification of college degree, if applicable If the reports surface inconsistencies or discrepancies, they should be verified. Once verified, appropriate action should be taken by the Director of Human Resources and the General Manager after consulting Corporate Human Resources.
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POLICY Every property is to be audited by a Tecton representative at least once each year.
PROCEDURE 1. The property will be notified at least one week in advance of a scheduled internal audit. The Tecton representative will perform the audit with the Controller and General Manager. Accounting staff and department heads may also be interviewed during this process. Within one week the property will receive the graded audit. Within two weeks a response is to be prepared with action plans and due dates as to when the property will be in compliance.
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TOTAL CASH BANK ACCOUNTS _170.00_ Total ________ Deduct _______% Score
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10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 5.00 5.00 HOUSE BANKS _225.00_ Total ________ Deduct _______% Score
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Is cash over/short report distributed daily to managers along with a month end recap?
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Are write-ups issued for overs/shorts exceeding $50 per month, or consistent smaller overs/shorts or missing drops?
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Is GM notified if unexplained over/short > $100 and is Corporate notified if it involves missing drop and also prior to termination of an employee due to over/short?
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Is mail opened by Executive Secretary with checks logged and restrictively endorsed?
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Does Controller tie validated deposit slip to deposit daily and verify check log to deposit on spot basis?
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Are general cashier duties properly segregated to avoid malfeasance including unclaimed wages?
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Does the Controller verify that overs/shorts are properly investigated by department heads?
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Are petty cash slips signed by department head if less than $25 and by ED member if greater than $25?
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Is petty cash reimbursement log approved and signed by Controller and General Manager?
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Do credit meetings and minutes include the following: accounts over sixty days returned checks charge backs collections agency update plans and actions
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Are statements mailed within two business days of transfer to city ledger?
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Are Group accounts transferred within three business days and individual accounts at checkout?
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Are advance deposits processed per SOP? Are employee advances and miscellaneous receivables reviewed and cleared promptly?
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Does accounts receivable review and approve requests for direct bill and review master bill set up and banquet event orders prior to check-in?
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Are all write-offs approved by Controller and department head with GM approval over $500?
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Are write-offs posted to proper account, i.e. if policy violation to bad debt expenses by offending department?
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Are all adjustments, credits, paid outs reviewed and approved daily by EC?
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Are all accounts over 180 days removed from accounts receivable?
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Are credit card adjustments done manually with Controller initials on slip after review of original charge (or is credit card transmission detail signed off)?
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Are only accounting and gift shop permitted to process credit card credits?
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Does Controller / Assistant Controller review credit card transmission detail for duplicate credits weekly?
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Are all CHARGE BACKS logged and responded to or written off in the prescribed amount of time?
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Is a tracking log in place to ensure that CHARGE BACKS are responded to in a timely manner?
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A/R ADJUSTMENTS / CHARGE BACKS 140.00_ Total ________ Deduct _______% Score
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Are all invoices approved by department head, General Manager and Controller?
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Are expense checkbook balances approved each month by EC members and adjusted for forecasted sales?
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Are 2 bids required annually for all recurring purchases in excess of $1,000?
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Are procedures in p lace to ensure credit is received for shortages or damaged goods?
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Is log maintained to verify check sequence and ensure all checks are posted?
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Are all payments made only from invoices vs. statements or appropriate check requisitions?
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Do all non-incorporated persons providing services over set amounts receive a 1099?
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Are all cash payments to employees, such as bonuses, processed through payroll?
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Are invoice numbers input to ensure duplicate invoices are not paid (if no invoice number is listed, date of service should be input as invoice number)?
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Are properly approved capital requisitions used for all capital expenditures and are three bids attached?
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Are proceeds from disposition of fixed assets deposited in the FFE account and are dispositions noted on capital requisitions and/or balance sheet package?
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Are lunch breaks monitored by department managers to ensure breaks of adequate duration?
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Are weekly labor schedules completed department heads showing actual costs scheduled costs?
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Is report showing employees approaching overtime run and reviewed by Controller and department heads?
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Do all employees punch the time clock according to schedule and are schedules updated by managers daily so manual punches are kept to minimum?
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Are schedules input into time clock system to ensure that time clock controls are effective?
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PAYROLL COST CONTROL 110.00_ Total ________ Deduct _______% Score Section 1 Page 23
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Are tips declared by employees and properly documented tied into POS? If no POS system, are they tied to house charges and credit cards?
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Are employee signed reports signifying receipt of paychecks filed in a secured area?
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Are manual schedules itemizing banquet service charge allocations verified as to math and reasonableness to service charge collected?
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Are all management PAFs within guidelines approved by reviewer and next superior?
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Are all banquet and room service, service charge distribution approved by Corporate?
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Are all management bonus and incentive plans approved by Corporate and are taxes properly withheld? Are management salaries reviewed to ensure non-exempt status is identified?
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Are deductions not taken tracked by payroll and resolved within one week?
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Are all payroll deduction authorizations maintained in personal files or in binders by type of deduction?
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Are benefit deductions taken on vacation weeks (when paid in advance) and collected when employee is on leave?
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Are perishable food inventories labeled and dated upon arrival and is stock rotated to avoid spoilage? Are accurate written records maintained for all food & beverage credits? Are food and beverage invoices reviewed by Chef and/or F&B Director? Are storeroom pars in place for ordering purposes and are storerooms sufficiently organized? Is storeroom calibrated? scale in use and regularly
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Is point-of-sale menu file adequately updated for price changes and to ensure open keys are minimized? Are entertainment card and coupon discounts regularly audited for proper backup and proper discounted amounts? Are check control procedures in place for buffets?
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F & B KITCHEN / RESTAURANT CONTROLS 130.00_ Total ________ Deduct _______% Score
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Does accounting monitor bottle-for-bottle requisitioning, bottles breakage and bottle stickering two times per month?
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Is use of shot glass required for all mixed drinks and is this procedure monitored?
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Are dupes printed at registers to ensure all products served is posted? Non POS properties is red lining being done?
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Are dupes reviewed and cancelled at service bars? Non POS properties is red lining being done?
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Are banquet event orders verified to guest checks by catering to ensure all items are properly billed?
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Are banquet checks, BEOs and contracts signed by guests and on file?
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Are inclusive banquet packages adequately documented as to breakdown of revenues and approved prior to function?
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Does night audit verify additions and extensions on banquet checks and proper coding on banquet summary?
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Is there a procedure in place to verify banquet covers plated to banquet covers billed?
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Are banquet consumption sheets maintained and compared to bar revenue for reasonableness?
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Is consumption factor for translating liter liquor bottles to drinks served at least 25 drinks per bottle?
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Are discrepant rooms reports documented and investigated timely? Are front office and back office computer systems backed up nightly and is there off-site backup?
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10.00 10.00 FINANCIAL ANALYSIS BALANCE SHEET & REVENUES 215.00_ Total ________ Deduct _______% Score
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Is sales tax reconciliation inclusive of all taxable items and are variances to general ledger immediately investigated?
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Is sufficient documentation of tax exempt sales filed with reconciliation (including evidence of payment by tax exempt body?) Are sales tax payments made timely?
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FINANCIAL ANALYSIS SALES TAX 70.00_ Total ________ Deduct _______% Score
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Are leases subject to three bids for lease, three bids for purchase and lease vs. buy analysis?
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Are all contracts not within scope of property-only approval (i.e. less than one year, cancelable within 30 days notice, within management agreement provisions), approved by Corporate?
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Is there an LSOP on file regarding hotel travel policy specifying per diem amount?
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Are journal entries well organized with sufficient backup to explain entry?
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Are reconciliations sufficiently analytical to show that ending balances are accurate?
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FINANCIAL ANALYSIS RECORD KEEPING 90.00_ Total ________ Deduct _______% Score
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SUBJECT LOCAL S O Ps
Date issued: 12/01/05 Effective date: 12/01/05
POLICY This is to outline the formal procedure for preparation, approval and maintenance of LSOPs.
RESPONSIBILITY It is the responsibility of the Controller to monitor compliance and maintain current files on all Accounting LSOPs that affect their area.
PROCEDURE 1. When a Tecton Accounting Standard Operating Procedure cannot be implemented because of limited number of staff or lack of technology, an LSOP must be developed to accomplish the intended control. An LSOP may be developed to deal with specific issues not already covered by a Tecton SOP. At no time may an LSOP contradict or supersede any Tecton SOPs. They must have a policy statement, responsibility and procedure and be approved by Corporate before implementation. All LSOPs must be written in the same format as Tecton SOPs. They must have a policy statement, responsibility and procedure and be approved by Corporate before implementation. The Request for Exception From Policy form must accompany the LSOP submitted.
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TECTON HOSPITALITY
REQUEST FOR EXCEPTION FROM POLICY HOTEL NAME: ___________________________________ DATE: ______________
POLICY FROM WHICH EXCEPTION IS BEING REQUESTED: _____________________ _________________________________________________________________________ _________________________________________________________________________ 1. REASON FOR REQUEST: ________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ 2. WHAT IS THE BENEFIT THE PROPERTY WILL GAIN MAKING THIS CHANGE? ____ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ 3. WHAT ARE THE POTENTIAL RISKS INVOLVED IF THIS CHANGE IS IMPLEMENTED? _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
APPROVALS:
DIRECTOR OF FINANCE
EXECUTIVE VP - OPERATIONS
DATE OF FINAL APPROVAL PLEASE ATTACH THE LOCAL STANDARD OPERATING PROCEDURE WHICH WILL REPLACE THE POLICY BEING ALTERED.
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