SOP Finance and Accounting – Controller’s Periodic Check List For Full Service Hotels

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Hotel Controller’s Periodic Check List For Full-Service Hotels

Purpose of Controller’s Periodic Check List For Full Service Hotels:

The Controller is to establish a review of key procedures to safeguard the financial operation of the hotel and to assist in compliance with the Key Financial Controls. It is the responsibility of the Controller to ensure that reviews are in concurrence with the frequency indicated. 

Controller’s Periodic Check List For Full Service Hotels SOP Procedures:

The Controller and/or Assistant Controller are to review the following procedures as indicated:

Daily Checklist

Review all guest ledger adjustments, paid-outs, gift shop discounts, housekeeping discrepancy reports, and night audit logs.

b. Review management house charges; route to Executive Committee for approvals.

c. Review daily revenue report.

d. Review credit limit report after reviewed by Accounts Receivable and approved by the Front Office Manager.

e. Review security reports.

f. Review credit approval for groups.

g. Review PMS daily report guest ledger, city ledger, and advance deposit control figures to ensure they balance to PMS detail. Verify PMS ledger balances with the M3 daily report.

h. Review daily bank balance for current cash position.

i. Review the city ledger payment log and verify with account receivables posting.

j. Sign off and verify all accounts receivable adjustments and credit card adjustments.

k. Review daily over/short report and ensure departmental follow-up and adherence to policy.

Weekly Checklist

a. Review all 60-day accounts, returned checks, and chargebacks for collection efforts.

b. Review labor reports at Executive Committee meetings. deviations with Department Heads, i.e., where productivity goals are not being achieved. Distribute overtime reports to respective E.C. members.

c. Review the Checkbook Accounting Report with the department head.

d. Review petty cash reimbursement.

e. Attend and participate in weekly sales strategy meetings.

f. Review invoices and other backups for accuracy when checks are signed.

Monthly Checklist

a. Review all outstanding wage advances.

b. Reconcile all balance sheets and bank accounts before the close of the following month. Ensure any outstanding items in A/R clearing accounts and miscellaneous receivables are clear by the next closing.

c. Reconcile individual capital expenditure summaries to the general ledger and ensure compliance with Capital Expenditure Policy.

d. Ensure that credit meetings are held with the proper personnel.

e. Review the tax-exempt report and ensure that all Sales, Local, and Occupancy Taxes are paid timely and accurately.

f. Ensure all cashier banks are counted on a surprise basis at least once a month and retain evidence of the count. Review all contracts for accuracy.

g. Audit the General Cashier’s safe at least twice per month on a surprise basis and retain evidence of the count.

h. Review 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.

i. Prepare monthly financial statement package and send to Corporate.

j. Participate in (Accounting Representative) and review all inventories. Research major cost variances.

k. Prepare and submit a full-year forecast.

l. Ensure that all franchise fees, management fees, and royalties are paid by the management and franchise contracts.

Other Periodic Checklist

a. Follow up on response to internal audit program. Inspect for compliance with appropriate action to be taken.

b. Coach and counsel department associates and managers as needed. Update goals and development plans via rap sessions and annual reviews.

c. Complete the Controller’s audit once a year. Audit other areas as needed.

d. Conduct a complete payroll payoff twice a year. e. Periodically require bids on supply purchases.

f. Review adherence to the Record Retention Policy at least annually to ensure compliance with state and federal guidelines.

g. Review and update the contracts and leases on file regularly.

h. Review Sales, Front Desk, and Catering Bonus Worksheet and Annual Executive Committee Bonus Worksheet.

i. Ensure all real estate taxes and mortgage payments are paid by the management contract.

j. Ensure all Owner’s payments are paid promptly.

k. Ensure the medical employee/employer calculations and deductions are correct.

l. Once a year, the Controller and the Assistant Controller will work (at a minimum) one-night audit shift each, separate from one another, to ensure night audit controls are at an optimum.

Training Summary Questions:

Q1. Who should approve daily management house charges?

Q2. What should be included in a weekly review?

Q3. What is the estimated time it will take for your outstanding items to clear?

Q4. How will the Controller and Assistant Controller be able to ensure an audit is conducted efficiently?

SOP Number: Finance and Accounting SOP – 22
Department: Administration
Date Issued: 8-Aug-2021
Time to Train: 25 Minutes

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