I.

ACKNOWLEDGMENT

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II. INTRODUCTION

Villa Nilda Garden Resort a family-owned business, was founded by Nilda

Ogayco on November 26, 2015. It is located on Ferriols Street, Barangay Lizada,

Toril, Davao City. The owner was inspired to invest in such business because of

the nearby resorts in their neighborhood. As of now they have a total of 15

employees both for the restaurant and the resort. The resort has an area of 8,000

square meters where stands amenities such as KTV Bars, billiard and table tennis

area, restaurant, and function halls. Their lodging facilities include 8 rooms, 3

function halls, 9 cottages, and 4 umbrellas. They have a wide range of services

including organizing events, catering for events held within the resort, and selling

of resort merchandises.

The resort highly upholds quality customer service and to ensure its consistency

they regularly gather feedback from their customers. As part of their continuous

improvement, they are planning to have additional function halls in the future. Also,

they recently renovated their restaurant to better serve their customers.

III. ORGANIZATIONAL CHART

Manager

Front Desk Employee

(receptionist / cashier )

Cook and 2 Waiters

3 House Keepers and

3 Janitors/ Maintenance

Security Guard

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IV. FLOWCHARTS
Booking Process

GUEST

BOOK

ONLINE PERSONAL

RECEPTIONIST

PROCESS AND
RECORDS RESERVATION
OR PAYMENT

CHECK-IN
OR
CHECK-OUT

Merchandise

Check Inventory = by the front desk employee

Confirm to manager purchase

Receive, Check, and Record = by the front desk employee

Items (Double checked by the manager)

Display

Guest

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 Supply Chain of the Restaurant and Catering Services

Exhibit 1

Raw materials Supplier Producer Customer

Exhibit 2

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 V. Question and Answer:

Interviewee: Ms. Nikki A. Ogayco ( Manager )

Q: What is the process in the booking confirmation/reservation?

A: The customer must pay 50% of the price of the room or cottage as
downpayment for reservation.

Q: Does the company has an official website and email? If yes, can the
customers access the website for online reservation?
A: Yes, the purpose of our website is for queries only. In case of room or cottage
reservation, they can reach the contacts provided on the website and pay
through money remittance or pera padala, still at least 50% downpayment.

Q: Is it also possible to make a reservation through email?

A: The website only contains pictures and information (prices, contact number,
location of the resort, etc.). When it comes to reservation, we recommend the
customer to call us directly for further details on how to reserve.

Q: What is the process in cash collection? Who is responsible for this?

A: We are using manual billing process. The assigned receptionist is the one
who collects the payment.

Q: How about the billing process? How does it start? If manually done, what is
the process?
A: We prefer the payment first basis for a group of customers who pays
individually. But sometimes we consider the group to pay upon check out if only
one of them is going to pay for the whole group. The assigned receptionist is the
one who collects the payment and right after the customer entered the resort, it
shall be remitted to and signed by the management.

Q: If performed in computerized system, what is the specific system the

company use?
A: This is not applicable.

Q: Who prepares the OR?

A: The management prepares the OR.

Q: What are other methods for reservation?

A: Personal or through call, still involves 50% downpayment.

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Q: Who approves the billing ?
A: The management.

Q: Who prepares the billing ?

A: The receptionist.

Q: Who prepares the Cash Receipts?

A: It's either the cashier or management.

Q: Is there any control already implemented by the company with *regards to the
revenue cycle?
A: We’re still processing or deciding on what internal control the management
should implement. The resort is on developing stage and we improve base on
experience.

Q: Have you encountered any fraudulent acts in the process?

A: Yes, our previous receptionist did not declare the right number of persons in a
group checking in.

Q: What are some of the problem(s) that you have encountered in billing your
customers?
A: Usually, customers complain about over or under charging of bills to pay.

Q: What are the documents involved in billing the customers?

A: Only official receipts.

Q: What are the minor revenue centers?

A: Food and beverages. We also have ktv, billiards, and pingpong.

Q: Is there a Guest Check or Server’s Check that initiates the food and beverage
order taken from the guest, and represents as an invoice given to the guest?
A: We use order slips in getting the food orders of the guests or customers. In
the resort, we use a logbook to record the guests, their cottage or rooms, and
also their bills to pay.

Q: Who totals the guest checks?

A: The front desk employee is assigned to receive the orders and also compute
all the bills.

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Q: Who shall prepare the necessary legal document for sales along with the
various internal control vouchers needed?
A: It also the front desk employee’s job.

Q: Who has the responsibility of verifying the total shown on the cash register
tape against the total cash receipts? Also the totals from serialized guest
checks?
A: The manager verifies all the data.

Q: Are the unit prices recorded on the guest checks verified by an employee
from the price list? Who is responsible?
A: The front desk employee checks it first and then the manager reviews it.

Q: What is the process of the restaurant and catering services?

A: The flowchart as illustrated in Exhibit 1 shows the multistage service process
of the restaurant and catering services of Villa Nilda Garden Resort. It follows the
make-to-order process, a process that is activated only in response to an actual
order. The management prefers this because it does not require a large number
of ingredients in inventory. Furthermore, this type of process reduces food or
ingredients spoilage and waste of resources. To lessen the customer’s waiting
time for the food preparation, some ingredients are semi-cooked and it only needs
to be thawed. Hence, when a customer places an order, that’s the time their orders
will be cooked. Once orders are ready, the employees would deliver it to the
customers’ table.
Moreover, the time needed to respond to a customer varies for each meal on the
menu. The average lead time is about 20-30 minutes depending on the customer’s
placed order. The servers make it a point to inform the customer about the
preparation time as to avoid complaints.

Q: What about the overall inventory management? From the merchandise to the
food?
A: For Villa Nilda Garden they have lot of in-stock inventory when it comes to the
resource needs of their Restaurant. Raw materials such as rice, pork, beef,
chicken and especially the spices that is used in the kitchen. The resort exhibits
flexibility in the production of their viands in their restaurant. Furthermore, they
used fixed order quantity model that means the actual ordering is triggered by
inventory dropping to a specified level of inventory. Also, the resort always had a
safety stock specifically on their restaurants. For example, if the supply of drops
to 20 kilos, or for meat 10 kilos, an order will be sent to the supplier to ensure that
there will be no stock-outs.

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VI. Internal Control Questionnaire

Billing to Customers

QUESTIONS Yes No
1. Are the following duties distributed:
a. approve billings?
✔
b. prepare billings?
c. accepting payments?
2. Is the billing performed by a personnel independent of cash
✔
receipts?
3. Are the unit prices recorded on the guest checks verified by
✔
an employee from the price list?
4. Are invoices pre-numbered and subsequently accounted
✔
for?

Cash

QUESTIONS Yes No
1. Do deposit slips have an official depository bank number
✔
preprinted on the document?
2. Are logs of receipt book issuances maintained and
✔
reconciled?
3. Are receipts deposited daily? ✔
4. Are there controls to ensure each cash disbursement is
properly vouchered and approved by the proper authorities ✔
before the disbursement occurs?
5. Are funds that are not deposited by the end of the day
✔
secured (safe) overnight until the next business day?
6. Are timely corrective actions taken in cash discrepancies? ✔
7. Do you segregate the activities of receiving, depositing,
✔
recording, and reconciling of cash receipts?
8. Is deposit documentation signed and dated by preparer? ✔

Management

QUESTIONS Yes No
1. Has management established overall objectives in the form
of a mission statement, goals or other written operating ✔
statement(s)?
2. Have objectives been clearly communicated to all
✔
employees?
3. Are personnel files maintained for all employees? ✔
4. Are vacation and sick leave approved by supervisors? ✔
5. Are appropriate time records maintained for all leave? ✔
6. Are all employees given a performance evaluation? ✔

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Inventory

QUESTION Yes No
1. Is there separation of duties between persons who handle
the inventories and those handling:
a. Inventory records? ✔
b. Sales billings?
c. Recording of purchases?
2. Are the policies established to ensure that inventories are
✔
not stockpiled or to prevent over-ordering?
3. Are the inventories properly maintained in the Stock Room? ✔
4. Is a central storeroom and receiving station maintained? ✔
5. Are materials released from the storeroom only on receipt of
✔
approved requisitions?
6. Are the storerooms or storage areas properly safeguarded
or controlled to prevent access to materials by unauthorized ✔
persons?
7. When inventories are to be taken, are adequate written
✔
procedures prepared?
8. Are obsolete, damaged, and slow-moving items reported to
✔
a responsible person?
9. Are purchases made by requisition/purchase order only? ✔
10. Is there proper cutoff of inventory receipts and issues during
✔
inventory counts?
11. Is a physical inventory taken periodically and at least
✔
annually?

Authority
QUESTIONS Yes No
1. Have managers been provided clear goals and direction
✔
from the governing body or top management?
2. Are there adequate policies and procedures for authorization
✔
and approval of transactions at the appropriate level?
3. Are sufficient training opportunities to improve competency
and update employees on new policies and procedures ✔
available?

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VII. FORMAT 1

AREAS FOR POTENTIAL RISK RECOMMENDATION MANAGEMENT

IMPROVEMENT RESPONSE

The resort have It prevents the Provide more Manager:

insufficient business in employees to increase We will consider it
employees. completing tasks, it the labor force of the and it sounds great
would lessen their business. invest in employing
Most of the productivity, and the more since it is
employees are business won’t be really difficult and
assigned to two or able to maximize confusing to monitor
more tasks. It slows their full capacity. all the staff’s output
down the process of This may lessen the everyday
rendering services. expenses as to the
salaries and wages
but may lead to a
lower revenue and
profit.

It lacks internal An employee Take time to review Manager:

control such as assigned to a lot of each output and monitor It is likely that we’re
segregation of task may commit a the employees as much going to install
duties. lot of error in as possible. more cctvs, and as
recording. much as possible
The front desk Accounting fraud and separate and keep
employee is the misappropriation of all the documents
receptionist and also assets may also to be safe and in
the cashier. The likely to happen. order to have a
employee is also the basis when there a
one who receives, problem in the
checks, and records future.
the assets acquired
or delivered only to
be checked or
monitored by the
manager after.
The resort does not There is a possibility The management Manager:
use proper that there would be a should use proper We will take this
documents when duplicate orders and documents such as matter more
purchasing goods for increasing the risk of purchase order and seriously since it
their inventory. a surprise increase purchase requisition to covers important
price. avoid these kind of detail between the
errors. seller and the
buyer during
transacting.

VIII. Recommended Flowchart

Manager

Receptionist Receptionist
(for booking/ also merchandise) (receiving food orders)
Cashier Cashier

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IX. Conclusion

Villa Nilda is an up and coming hub for rest and relaxation in Toril District,
Davao city. With its well-maintained facilities and affordable amenities, Villa
Nilda has already attracted many customers despite being in operation for 3
years. Despite being a new resort, Villa Nilda already has the capability to
accommodate many guests especially during peak season through a well-
thought off capacity management. The design of their products and services is
directed towards the needs of their customers. Having the biggest space area
of 8 000 square meters, they soar above their competitors with a wide array of
facilities that their customers can enjoy at an affordable price. Aside from
these, they also offer decorations services which are difficult to imitate by
competitors.

Although the employees are trained well and the management ensures they
give their best, and even though they use proper documents, still the resort has
the following areas of improvement: the amount of employees and segregating
their duties. In light of this, the following are recommended: first, the resort
should employ more workers and assign those who are fit for the task or
services needed. Having more employee means they can segregate duties, such
as the cashier and the receptionist are different personnel. This lessens the
possibility of an employee to commit fraudulent acts. This would also aid in
properly executing assignments and ensuring that tasks would be finished on
time.

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