SOP For Checking Bank Accounts

SOP Number: Finance and Accounting – 09

Department: Cash Control

Date Issued: 28-Jun-2021

Time to Train: 25 Minutes

Purpose of Checking Bank Accounts:

All bank accounts must be set up as per the Management Agreement. It is the responsibility of the Financial Controller and General Manager to ensure that the resolutions are up to date with current signatures and that all bank accounts are reconciled in the following month.

Checking Bank Accounts SOP Procedures:

The Operating Account disbursements (checks, wire transfers or other banking transactions) will be based on the following guidelines:

A. All disbursements are to comply with the Accounts Payable Policy, Invoice and Check Processing.

B. Whenever possible, the checks should not be prepared and signed by the same person.

C. A daily running balance is to be maintained. Checks should never be prepared if it will create a negative balance. Checks are not to be prepared and held until funds are available.

The signatories on the Operating Account will be two (2) of the following:

• President

• Vice President of Finance

• Regional Controller

• General Manager

• Controller

2. One (1) signature on the Manager Account is acceptable with the following guidelines:

A. Account is imprest at an amount approved by the Hotel Management.

B. Account is reimbursed weekly.

Approved signatories are one of the following:

• General Manager

• Controller

3. Travel Agent Accounts should be set up for only those properties where the franchiser does not have centralized travel agent payments. One signature is acceptable with the following guideline:

A. Checks may not be prepared and signed by the same individual.

B. Authorized signatories are one of the following:

• General Manager

• Controller

4. Capital Accounts will be set up at the Owner’s request to control the purchase of capital or construction. The same guidelines apply to the Operating Account.

5. Bank Resolutions should be set up as: “Corporate Name d/b/a Property Name”. Checks should have the name of the property imprinted and the property address.

Training Summary Questions:

Q1. What is the purpose of the Checking Bank Accounts SOP?

Q2. Explain the process for Operating Account disbursements?

Q3. Who are the valid signatories on the Operating Account?

Q4. Can the cheques be prepared and signed by the same individual?