SOP For Controller's Periodic Check List For Full Service Hotels

SOP Number: Finance and Accounting – 22

Department: Administration

Date Issued: 8-Aug-2021

Time to Train: 25 Minutes

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 the 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:

1. Daily

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

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 M3 daily report.

h. Review daily bank balance for current cash position.

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

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

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

2. Weekly

a. Review all over 60 day accounts, returned checks and charge backs for collection efforts.

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

c. Review Check book Accounting Report with department head.

d. Review petty cash reimbursement.

e. Attend and participate in weekly sales strategy meeting.

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

3. Monthly

a. Review all outstanding wage advances.

b. 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.

c. Reconcile individual capital expenditure summaries to the general ledger and ensure compliance to  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 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 full year forecast.

l. Ensure that all franchise fees, management fees and royalties are paid in accordance with the management and franchise contracts.

4. Other Periodic Requirements

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 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 Record Retention Policy at least annually to ensure compliance with state and federal guidelines.

g. Review and update the contracts and leases on file on a regular basis.

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 in accordance with 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 of one another, to ensure night audit controls are at an optimum.

Training Summary Questions:

Q1. Who should approval  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?