Ask the right questions

May 2017 Newsletter

HOTEL INTERNAL AUDITS & SURPRISE PROPERTY INSPECTIONS

WHAT WE DO
Audit Hotel is focused on how to better manage your property by reviewing your existing operational procedures with best practices commonly found throughout the hospitality industry. We verify compliance of your standard operating procedures and provide a comprehensive review of internal control procedures for each department of your hotel. We do surprise property inspections which often uncover items previously unknown to ownership.

We are hospitality Accounting experts! And offer a wide level of experience and knowledge to each engagement .
Learn More About Us

HOW YOU BENEFIT

VALUE

You benefit in many ways by having an expert hospitality professional conduct a surprise property inspection of your hotel. We bring industry standard best practices, economizing existing procedures with more efficient ways to get problems solved, and get an inside look on how well your hotel is being managed.

We apply quantitative scoring to audit results for comparison between multiple properties. We also provide a narrative report identifying each issue found with the recommended corrective action needed.

Our audits and inspections are independent and objective, and enhance detection of potential fraud by evaluating and improving effectiveness of risk management. We introduce new technology to improve your standard operation procedures (SOP) to achieve better operational efficiency and internal control.

Our consulting services can be expanded as needed during the course of the engagement based on the initial findings. We price our audits to allow multiple visits per year to your hotels.

Click Here To Learn More

FALSE INVOICE SCAMS

Is your company following invoice processing best practices?  This is a common scam, someone in a position of trust, creates and approves invoices from a fictitious company which purport to supply goods and services to the hotel, and then pocket the money.
In order to reduce the occurrence of theft from false invoice scams, here are some basics for purchasing, receiving, and processing payments for goods and services that should be reviewed and/or implemented:
Separation of Duties – Ensure that payment documents are processed with different people involved.  Best practices is to have different people:
  • Approve purchases
  • Receive ordered deliveries
  • Approve invoices for payment
  • Review and reconcile financial records
Accountability, authorization, and approval.  Ensure that you authorize, review and approve invoices for payment based on signed agreements, contract terms, and purchase orders.  Best practices:
  • Verify receipt of goods and services to against contract , purchase order and invoice.
  • Obtain pre-approval of consulting agreements.
  • Monitor that invoices are paid timely.
  • Reconcile ledgers for accuracy of recorded transactions.

Security of Assets.  Once you receive your purchased goods, secure them in a safe location.  Periodically count your inventory, and compare results with amounts shown on previous counts.

Review and reconciliation.  Your reconciliation activities confirm that paying for approved purchases and that you have been billed correctly.

Using proper internal controls, you can ensure that goods and services are received, and payments are properly processed.

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CLICK HERE TO SCHEDULE YOUR AUDIT TODAY!

Give us a try and see for yourself.

Visit us at: www.audithotel.com

Call now to schedule your audit!
Call John at:
(424)­ 235­-4506

john@audithotel.com

creditcardtheft small

April 2017 Newsletter

HOTEL INTERNAL AUDITS & SURPRISE PROPERTY INSPECTIONS

WHAT WE DO
Audit Hotel is focused on how to better manage your property by reviewing your existing operational procedures with best practices commonly found throughout the hospitality industry. We verify compliance of your standard operating procedures and provide a comprehensive review of internal control procedures for each department of your hotel. We do surprise property inspections which often uncover items previously unknown to ownership.

We are hospitality Accounting experts! And offer a wide level of experience and knowledge to each engagement .
Learn More About Us

HOW YOU BENEFIT

VALUE

You benefit in many ways by having an expert hospitality professional conduct a surprise property inspection of your hotel. We bring industry standard best practices, economizing existing procedures with more efficient ways to get problems solved, and get an inside look on how well your hotel is being managed.

We apply quantitative scoring to audit results for comparison between multiple properties. We also provide a narrative report identifying each issue found with the recommended corrective action needed.

Our audits and inspections are independent and objective, and enhance detection of potential fraud by evaluating and improving effectiveness of risk management. We introduce new technology to improve your standard operation procedures (SOP) to achieve better operational efficiency and internal control.

Our consulting services can be expanded as needed during the course of the engagement based on the initial findings. We price our audits to allow multiple visits per year to your hotels.

Click Here To Learn More

TRENDING NOW - HOTEL IDENTITY THEFT

Trending now in the hospitality industry is a surge in guest credit card theft among hotels.  Guest service will always be priority number one, but protection of guest personal information and credit card data is just as important.

 

With the adoption of the new Payment Card Industry security standards (PCI), hotels not in compliance with the security standards risk higher processing fee surcharges, guest data breach, and increased charge backs from fraudulently used cards.  Merchants are now being held to a higher standard then before, facing immediate chargebacks for fraudulent transactions.  A data breach can be even worse with the responsibility falling back to the source.

 

In order to reduce the occurrence of theft of credit card data, the following best practices should be reviewed and implemented:
  • Shred unneeded credit card data such as old guest folios containing credit card information, registration cards, and pre-authorization letters.
  • Do not imprint or copy credit cards, do not keep copies to use for charge back inquiries..
  • Eliminate using fax machines for credit card data and utilize secure password protected e-fax systems instead.
  • Ensure your property management systems do not display the entire credit card number.
  • Establish procedures for monitoring credits, charge backs and the number occurring.
  • Reduce the number of people who have access to guest data.
  • Ensure all employees who work with guest credit cards, sign a written PCI compliance policy.

It is important to verify that good procedures for PCI compliance are in place and being followed.

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CLICK HERE TO SCHEDULE YOUR AUDIT TODAY!

Give us a try and see for yourself.

Visit us at: www.audithotel.com

Call now to schedule your audit!
Call John at:
(424)­ 235­-4506

john@audithotel.com

cash count

March 2017 Newsletter

HOTEL INTERNAL AUDITS & SURPRISE PROPERTY INSPECTIONS

WHAT WE DO
Audit Hotel is focused on how to better manage your property by reviewing your existing operational procedures with best practices commonly found throughout the hospitality industry. We verify compliance of your standard operating procedures and provide a comprehensive review of internal control procedures for each department of your hotel. We do surprise property inspections which often uncover items previously unknown to ownership.

We are hospitality Accounting experts! And offer a wide level of experience and knowledge to each engagement .
Learn More About Us

HOW YOU BENEFIT

VALUE

You benefit in many ways by having an expert hospitality professional conduct a surprise property inspection of your hotel. We bring industry standard best practices, economizing existing procedures with more efficient ways to get problems solved, and get an inside look on how well your hotel is being managed.

We apply quantitative scoring to audit results for comparison between multiple properties. We also provide a narrative report identifying each issue found with the recommended corrective action needed.

Our audits and inspections are independent and objective, and enhance detection of potential fraud by evaluating and improving effectiveness of risk management. We introduce new technology to improve your standard operation procedures (SOP) to achieve better operational efficiency and internal control.

Our consulting services can be expanded as needed during the course of the engagement based on the initial findings. We price our audits to allow multiple visits per year to your hotels.

Click Here To Learn More

CONTINUOUS AUDITING REALLY WORKS

The old saying “OUT OF SIGHT OUT OF MIND” is very true when it comes to enforcing good policies and procedures. Okay, we just had our annual audit and the hit list is very long. What to do next? Most will do very little as they all know your not returning to reinspect again until next year. This is why “Continuous Auditing” matters the most and really works!

Audit Hotel provides continuous random property inspections that are “one day” audits. That means you pay less and have more frequent audits and inspections. We offer pricing based on continuous auditing to keep employees on their toes. If they know your coming back anytime soon, it makes the difference.

Here is how it works. We perform a detailed property inspection and internal audit of you hotel. If it is the first time visit these typically require 3 days to complete depending on the size and complexity of your operation. This is the good part, we then do routine “one day” followup audits, whereby we return on a random basis and verify previous issues have been fixed, and standard operating procedures are being followed. Upper management will decide when these return dates happen based on manager schedules and any criteria they like.

We establish custom detailed “Self­Audit” checklists for hotel department staff to do to stay ontrack, and be ready for our next return inspection. We provide onsite training to department managers for each of your standard operating procedures.

With each visit, we provide a detailed scoring that includes benchmarking so you can rank how your hotel is doing. In addition with each visit, Audit Hotel performs a detailed review of your internal control policies and procedures to find and prohibit the occurrence of fraud.

What a great way to get your internal audit program established and at low cost! We provide continuous auditing cheaper then doing annual audits.

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CLICK HERE TO SCHEDULE YOUR AUDIT TODAY!

Give us a try and see for yourself.

Visit us at: www.audithotel.com

Call now to schedule your audit!
Call John at:
(424)­ 235­-4506

john@audithotel.com

IMPORTANCE OF HOTEL INTERNAL AUDIT

IMPORTANCE OF HOTEL INTERNAL AUDIT

October 2016 – In This Issue:

IMPORTANCE OF HOTEL INTERNAL AUDIT

Internal audits provide a number of important services to company management. These include detecting and preventing fraud, testing internal control, and monitoring compliance with company policy and government regulation.

Most hotel companies lack the staff to create an internal audit policy or carry out audits to combat these problems or they assign duties to the controller making one annual visit to each hotel using a standard check list. Some companies have a compliance manager to enforce existing SOP’s, whom lack the experience to perform having never worked many of the line level positions in a hotel.

Designing a internal policy with the intention of reducing fraud does no good if not followed. And does it sound realistic if you visit the hotel only once per year? We recommend frequent audits of at least two per year and sometimes quarterly, with detailed scoring and ranking often tied to the general manager bonus structure.

Planning Your Internal Audit requires a professional with hands on experience that has worked the same line level positions your policy is designed to monitor and control. Having an outsourced internal audit brings new life blood into your organization with fresh ideas and a new set of eyes to see with.

Your business likely cannot afford to create an internal audit department, but, our audit services cost less and are more effective then your own attempting your own in-house solution. We price our audit fees to allow more frequent visits to your hotels.

Try us for one of your hotels. What a difference it makes to have regular audits of twice per year or more, it really works!

The Benefits of Continuous Monitoring and Auditing

The Benefits of Continuous Monitoring and Auditing

Continuous auditing is fairly straightforward: Audit performs auditing activities on a frequent repeated basis to provide ongoing assurance and more timely insight into risk and control issues.

Continuous monitoring is also straightforward: It is essentially a process that falls under management’s responsibility, in which key business process transactions and controls are constantly assessed and validated. This permits ongoing insight into the effectiveness of controls and the integrity of transactions running within them.

Hotel general manager’s tend to be focused primarily on day to day operational issues like guest service and selling rooms. Most do not have a professional background that helps them to fully understand the impact of controls and control deficiencies and to know how to move ahead with continuous monitoring, or identifying how to establish them.

In times of economic uncertainty, the benefits to hotel owners can be particularly significant and the risks of fraud and error often increase. By implementing continuous monitoring there can be proven quantifiable reductions in revenue loss and occurrences of fraud.

Audit Hotel can establish continuous monitoring at your property, which will help reduce potential losses due to fraud that are often discovered when its too late.

Protect your hotel and call me today.

Accounting

We Create ACCOUNTING Custom Reports at LOW Cost

Many Accounting users are not utilizing their full potential and can benefit by having an expert build custom reports.

We specialize in creating custom Accounting reports like these:

-daily flash reports
-detailed daily reports with prior period; budget comparisons for all revenue departments
-financial statements with custom cpor statistics for controllable costs
-labor reports with hours, wages, and average hourly
-budgets with prior period comparisons
-TOT & Sales Tax reconciliation reports
-Labor custom reports
-multi-property reports
-cash flow deposit reports

We can create reports the way you like them to be.

We can do these remotely at considerable cost savings or come to you.

Let a true hospitality professional assist you with your Accounting needs.

Hotel Fraud: Opportunities Galore

Hotel Fraud: Opportunities Galore

One of the leading reasons that hospitality companies experience high levels of fraud is that the industry’s culture tends to focus much more on providing better customer service than on the internal financial controls that go into running a hotel. Superior customer service equals higher profits! The hotel general manager spends more of his or her time meeting and greeting guests than monitoring the operational details of the hotel. Technology is wonderful, but provides the appearance that the system takes care of everything, when if fact most details are hidden from view and often never reviewed leaving the door open for fraud.

Top hotel fraud threats:
– Bogus travel agencies
– Phantom employee
– “Comp” fraud
– A/R misappropriation of payments
– Guest refund & adjustments fraud
– Inventory theft
– Credit card fraud by employees

The important lesson here is that properly designed internal controls can never be tight enough in a hotel. Dishonest employees and guests seem to always find new ways to steal. Often going on for months or years undetected.

While customer service is truly the ultimate priority, neglecting anti-fraud controls is bound to shrink the bottom line and keep hard-earned revenues from flowing to the bottom line. A simple solution is to bring in a third party professional once or twice a year to keep your hotel on track!

Back Office Accounting System Review

Back Office Accounting System Review

The back office accounting review starts with a comprehensive review of the IT technology systems used by your back office, general ledger system, PMS, POS, time system, and payroll processing. We provide recommendations for cloud based applications and lower cost solutions commonly used by other hotels.

The inspection continues with an analysis of monthly close procedures, such as the booking of adjusting journal entries (AJE), financial statement preparation and reporting using the Uniform System of Accounts for the Lodging Industry.

In addition we inspect procedures for bank statement reconciliation, prepaid expenses, fixed asset booking, accounts payable and invoice processing, accruals, LT debt and other liabilities. We review the process used for annual budget, CapX budgeting, and long-term planning.

The back office accounting review can apply to single or multiple properties.

IMPORTANCE OF HOTEL INTERNAL AUDIT

CREATE BETTER SOP’s THAT IMPROVE THE BOTTOM LINE

Standard Operating Procedures SOP’s provide direction, improve communication, reduce training time, and improve work consistency.

Does your hotel have SOP’s?

If you answered No, then try our SOP development service. We review your operations and provide assistance with developing custom SOP’s that fit your hotel.

How good are your SOP’s? Try our SOP review services. We verify existing SOP’s with onsite property inspections, to see how well they are being followed by your employees. Most hotels have SOP’s but they are out of date and not verified. We provide assistance with development of SOP’s as needed based on the final review of your hotel operations.

Are you experiencing reduced ranking on TripAdvisor with low guest reviews? Try our guest service review to see why your hotel is experiencing low guest satisfaction reviews and how to make immediate improvements.

We have lots of experience with identifying Guest Service issues and can help establish SOP’s resulting in much better placement of your hotel. It is critical to have good SOP’s that spell out company policies for guest service policies such as: employee empowerment, dealing with guest complaints, adjustments and comps, responding quickly, offering special amenities, responding to online reviews, providing review links to satisfied guests, and turning a bad guest experience into a positive one, showing the guest you truly care.

Try our guest service review & training which can help you establish solid company policies to keep your employees doing the right thing, time after time again and again, and improve your hotel ranking. It only takes one bad review to knock down your placement. Usually, its one new employee that was never trained properly that creates the issue. Having good SOP’s will reduce this from happening and get your team in the right direction.

Most hotel managers and department managers don’t have the time and expertise to get this done.

Audit Hotel specializes in these areas and can make all the difference.

Join me in your SOP review by clicking on the link below.

SCHEDULE YOUR AUDIT TODAY!

M3 LINK DASHBOARD and OUTSOURCED HOTEL M3 ACCOUNTING

ACCOUNTING DASHBOARD and OUTSOURCED HOTEL ACCOUNTING

ACCOUNTING DASHBOARD

We specialize in setting up custom Accounting dashboards for one or more locations with the following cloud based reporting:

PMS daily report importing
financial statements with custom cpor statistics for controllable costs
time & attendance with hours, wages, and average hourly
budgets with prior period comparisons
Smith Travel STR reports
Revinate guest comment reporting
graphs & charts
We can create custom reports based upon your needs.

We work remotely at considerable cost savings to you.

Let a true hospitality professional assist you today.