KeyControl

August 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

HOTEL KEY CONTROL

Hotel key-less room entry is a game changer using the latest radio -frequency identification (RFID) technology, allowing guests to head directly to their room and unlock the door using mobile smart phones.

 

Having solid key control polices and procedures is vital to avoid negligence when a crime is committed, and protecting hotel assets and reducing fraud.  Hotels are often missing basic key control procedures to monitor master keys usage, access doors to inventory, and controlling the Emergency Fire master key that will override an occupied guest room with secured deadbolt.

Many key control procedures are eliminated with use of the newer RFID lock systems.  Such as daily key in/out log sheets, which are replaced by assigning each employees their own unique arm band, pods, or master keys and the system tracks each time the key is used.  However, like most new technologies, management often relies on the automation to handle everything, and the key control procedures can disappear.  Example: room attendants share master keys for daily room assignments, since turn over is high and new employees are not assigned their own unique key when hired, and no key log is used.  Management will tell you the system takes care of tracking all keys used and no key logs are necessary, but in fact the key usage is not being tracked.

Other common issues are cuts to reduce installation costs when upgrading to new key lock systems, whereby some storage rooms and admin doors do not get the upgraded locks.  When this happens, then both manual key control procedures and automated procedures become very important to implement and maintain.

Regular audits and testing of standard operating procedures is needed to verify that proper key control is being used, monitored by management, and working.  Remember the old saying “out of sight out of mind” don’t rely on technology to manage your key control.

Audit Hotel performs a detailed review of key control on site during each of our hotel inspections and internal audits.  We walk the property with management testing the various key control procedures being used, and recommend improvements.

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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

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

Explaining Risk Management

Explaining Risk Management

Simply put, Risk Management is about:

Understanding all the possible things that might happen. Estimating the consequences of those events and situations, how they might affect our ability to achieve our objectives, and the likelihood of those effects. Determining whether those consequences are acceptable or desirable. Taking action to modify, as best we can, the consequences and/or their likelihood.

What we do for you…
– Implement segregation of duties to reduce risk of error or inappropriate actions. No one person has control over all aspects of any financial transaction.
– Make sure transactions are properly authorized by a person with approved authority.
– Ensure records are routinely reviewed and reconciled, by someone other than the preparer, to determine that transactions have been properly processed.
– Make certain that equipment, inventories, cash and other property are secured physically, counted periodically, and compared with item descriptions shown on control records.
– Provide employees with appropriate training and guidance to ensure they have the knowledge necessary to carry out their job duties with an appropriate level of direction and supervision.
– Document policies and procedures and making them accessible to employees to provide day-to-day guidance to your staff and continuation of duties in the event of prolonged employee absences or turnover.