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

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!