Petty Cash Count

Updated Revised Audit-F-B1-Acceptable Accounts Receivables Percentages - Aging

______GM Signature

______Date

Point Value20

Upon review, the following percentages are what Island Hospitalityconsiders minimally acceptable:

100% below 60 (all in current and 30-60) except for 3rd party wholesale or Cartus which can be as high as 90 days (all in current, 30-60 and 60-90)

Current: 75%

30-59: 20% (can be as high as 25% if current is 75%)

60-89: 4.5% (can be as high as 5% if nothing above 90)

90+: 0.5 %

If any account is over 120+days (including brand specific accounts (such as Hilton Honors, Marriott Rewards, etc), e-commerce (such as Expedia) and walks), it is required that Barbara Bachman be notified in writing. Notice must be present in file. Also, all points are automatically forfeit unless written permission to be over credit limit from Barbara Bachman is present in file.

To Evaluate:

Review Summary Aging Report and calculate outstanding percentages.

Review the detailed aging by invoice.

Mark “NO” if any 1 category is above allowable %.

Updated Revised Audit-F-B2-A/R Accounts Do Not Exceed Approved Credit Limits

______GM Signature

______Date

Point Value 20

•All active account balances should be within the credit limits established by the Island Hospitality Accounts Receivable Department.

All active accounts on the aging report have been approved by the Island Hospitality Accounts Receivable Department. A letter of approval from the corporate office MUST be in the file located with the DB Application, Purchase Order, Letter of Authorization, etc. A Master List of Approved accounts is acceptable in place of an approval letter.

To Evaluate:

•Upon arrival at hotel, call corporate office for approved list. This will have each account’s current approved limits.

Compare each account in A/R to the list of approved accounts provided by the IH Accts. Rec. department.

If the current amount owed is greater than the established credit limit, this will be marked “NO”.

If account is close to (but not over) the established credit limit, the hotel is advised to contact the IH AR Specialist to request more credit on the account; however, points will not be assessed.

For unapproved accounts, the limit is ZERO.

If any one account is over the credit limit then all points are forfeited.

Updated Revised Audit-F-B3-Mailing is Timely and Collection Efforts For Accounts Receivable are Properly Documented

______GM Signature

______Date

This question is made up of 2 parts

Total Point Value25

1-Initial billing value: 10pts

2-Collection efforts: 15 pts

If 100% of the AR accounts with balances are below 60 (all in current and 30-60) except for 3rd party wholesale or Cartus which can be as high as 90 days (all in current, 30-60 and 60-90), then AR files will NOT be evaluated and all points will be awarded. If any 1 account is outside of the guidelines noted above, then all accounts outside the guidelines will be evaluated. Points will be awarded on a percent correct basis.

All actions taken within the account MUST be logged. Any collection log may be used as long as it contains the following:

Who was contacted?

Who (from the hotel) did the contacting?

How was the contact made?

Date of contact?

What was communicated?

What folios (or invoices) were involved in the contact?

F-B3-1-Initial billing-All folios are billed in a timely fashion, based on the account parameters at the time credit is requested. In most cases billing should be completed no less than once a week. All bills are expected to be billed out within 7 days of the bill entering A/R. (Please note that these are week days NOT business days).

To Evaluate:

Audit all files over 60 days. Audit active direct bill files collection efforts for initial billing of all active invoices/folios.

Initial and subsequent billings MUST be noted on a collection log in each A/R file.

Missing,late incomplete or improperly filed collection efforts will be marked “NO” for the applicable account.

Folios without proof that they were initially mailed within 7 days will be marked “NO” for the applicable account.

Total points earned for this question will be based on the percent of accounts that are correct.

F-B3-2-Collection efforts- Island Hospitality requires collection efforts be made on all accounts with balances every 7 days.

Weekly collection efforts can take the form of mailings or collection calls with the following exceptions:

Collection calls (person to person contact in the form of phone conversations, emails, visitations, etc) must be made minimally:

-at least once prior to the folio hitting 14 days,

-at least once between the 14- 30 day mark (prior to the 30 day mark) and

-at least once between the 30-60 day mark (prior to the 60 day mark).

If the invoice has not been paid prior to hitting 60 days, the collection calls must then be done weekly. The GM MUST be directly involved in the collection effort for all folios over 60 days.

Leaving messages and sending emails do not count as collection call as they are not the same as speaking with a person or receiving a response.

EVERY mailing and EVERY contact with the account regarding billing MUST be noted on the collection log. If email is used as contact, it is best to place the entire email (with response) in the file.

Each entry must be completely filled out answering the following questions:

Who was contacted?

Who (from the hotel) did the contacting?

How was the contact made?

Date of contact?

What was communicated?

What folios (or invoices) were involved in the contact?

All collection logs and efforts must be filed properly on the right hand side of the AR file.

For all balances over 60 days, dispositions must be sent to the corporate office weekly. These dispositions must explain the collection efforts for the week for each balance over 60+. These dispositions are compiled at the corporate office to be distributed to the owners and company president and VPs. If the disposition is sent late it is the same as not being received as it will not be added to the compilation. Disposition forms are to be kept with the collection logs.

To Evaluate:

Audit all files over 60 days. Review direct bill files for collection efforts log. Check dates of contact and billing to determine that collection efforts are being made within the timely billing guidelines.

All collection efforts MUST be noted on a collection log in each A/R file.

Missing ,late incomplete or improperly filed collection efforts will be marked “NO” for the applicable account.

Unpaid folios that do not have collection efforts logged weekly with at least one person-to person collection call logged prior to 30 days, between 30-59 days and weekly thereafter will be marked “NO”for the applicable account.

Unpaid folios over 60 days that do not have collection calls without direct GM involvement weekly after the bill hits 60 days will be marked “NO” for the applicable account.

Total points earned for this question will be based on the percent of accounts that are correct.

Updated Revised Audit-F-B4-DB apps & actives are complete and properly filed in AR file

______GM Signature

______Date

This question is made up of 2 parts

Total Point Value20

1- DBapps value: 10pts

2-Actives value: 10pts

F-B4-1 –IS AN APPLICATION, LETTER OF AUTHORIZATION, WALK LETTER OR PURCHASE ORDER PRESENT IN ALL AR FILES THAT WERE EXAMINED?

The Set Up File is the front 2 sections of the separated Classification Folder.

The left portion of the inside folder should include the direct bill application (or other approved form pf promise of payment (such as walk letters or Insurance Letters Of Authorization), direct bill approval, and an AR Call/Collection Log.

All A/R accounts must have either an application, letter of authorization, walk letter or purchase order.

All DB Applications, letters of authorization, purchase orders, etc MUST be current and MUST be approved by the corporate office in writing prior to the guest incurring cost under the direct bill account. (Note: Walk letters do not need to be approved by the corporate office).

Accounts that were established prior to IH acquiring the property management contract are exempt from the requirement for 1 year after the takeover date. Properties have a 1 year exception from the date of take over to get new DB applications in place unless an exception is granted by the corporate office.

All Direct bill applications should be updated and approved by the corporate office every 2 years.

For: Letter of Authorization-All guest payments covered by insurance coverage must have a completed Letter of Authorization by the agent representing the claim that includes:

•Claim Number,

•Approved Stay Dates,

•Approved Rate

•Adjusters Phone Number

•Correct Billing Address

•Claim Adjuster’s Name.

•The Letter of Authorization must be SIGNED by the agent.

•

Open-ended dates are NOT acceptable! Completely filled out new letters of authorization are required if any changes are necessary (including dates, rates, etc).

To Evaluate:

Audit all files over 60 days. Mark “NO” for the applicable account if no application, letter of authorization, walk letter or purchase order is not present or is obviously missing required items such as signatures, etc.

Mark “NO” for the applicable account if any folio falls obviously does not follow guidelines set out by the direct bill application, walk letter, etc. This includes charging unapproved incidentals when documents specify room and tax only. It also applies to any folios that are billed outside of the approved billing dates per the application, walk letter, etc.

Mark “NO” for the applicable account if proof of corporate approval is missing from file for any DB application, letter of authorization, or purchase order.

Total points earned for this question will be based on the percent of accounts that are correct.

F-B4-2-Set Up File-Actives

The Set Up File is the front 2 sections of the separated Classification Folder.

All unpaid invoices must be positioned on the inner right side of the classification folder and must include complete folio back-up (showing each and every charge being billed) for each invoice. The amount of the folios present must match the amount per the PMS statement for each account.

All active credits MUST be properly cleared from account within 7 days. If an extension is granted from the corporate office, written proof of this extension MUST be present in file. Backup for all actives credits must be present as well.

To evaluate:

Audit all files over 60 days.

Mark “NO” for the applicable account if any required item is missing, incomplete or not in the appropriate location in the file

Mark “NO” for the applicable account if any non-active folios are present in the actives section.

Total points earned for this question will be based on the percent of accounts that are correct.

Updated Revised Audit-F-B5-Paids are complete and properly filed in AR file

______GM Signature

______Date

Total Point Value10

The Paids file should be the back 2 sections of the separated Classification Folder.

A copy of the check, all remittance advise (if original s are present remittance in file must be originals) and proof of PMS posting (a paid invoice summary or transaction report showing the payment of the individual folios) is to be attached to the folios covered by the payment. The paid folios must be removed from the active section.

If an adjustment is made on the account, the proof of PMS posting (a paid invoice summary or transaction report showing the payment of the individual folios) is to be attached to the folios. For adjustments & refunds that total $50 or more (cumulative over 30 days), properly completed, corporate approval MUST be present as well.

Island Hospitality does not permit payments to be applied to anything other than what is stated to be paid by the payer on the remittance statement or check stub without prior written approval from the corporate office (and usually from the payer as well. The permission from the payee must be in writing ). Any violation of this policy will result in the forfeiture of all points for this question and will be reported to the corporate office immediately upon discovery.

To evaluate:

Audit all files over 60 days.

Mark “NO” for the applicable account if Paids are not in the appropriate location (Preferably in order from most current back), if copy of check, proof of PMS posting, remittance or folios paid are missing or if anything that does not belong in the paids files is found in the paids file.

Mark “NO” for the applicable account if any adjustment exceeding $50 (cumulative over 30 days) has been performed without prior written approval from the corporate office or if written approval is not present in file.

Mark “NO” for the applicable account for any mis-paid or misapplied payment and set point value earned to zero for the question.

Total points earned for this question will be based on the percent of accounts that are correct.

Updated Revised Audit-F-B6 - Separation of Duties in AR Checklog

______GM Signature

______Date

Total Point Value15

There are other areas of the hotel that require a separation of duties. For the current audit, we are only checking the following:

AR Checks – One management associate (preferably the GM) will be responsible for opening the mail, recording checks in the A/R check register, and tracing the payments to invoices the following day.

A different associate must post the payments. Each person MUST sign the check register to prove that they have performed the duties of their section appropriately. 2 different signatures MUST be present on the A/R check register for each check logged to prove separation of duties.

To Evaluate

Check AR log and posting clerks listed on PMS printouts to check compliance.

Mark “NO” if duties are not logged or are not separated.If “NO”, all points are forfeited.

Updated Revised Audit-F-B7 – All checks received by Mail or for the A/R are registered on the A/R check log

______GM Signature

______Date

Total Point Value10

Every check listed on a bank deposit slip, must first have been listed properly on an applicable check log.

All accounts receivable checks and all checks received by mail should be entered on the Island Hospitality AR/ Mail Check Log. The log must be filled out entirely. The log entry should be signed by the manager opening the mail, and the manager posting the payment.

Checks received through the mail are entered on the AR/Mail Check Log. A check logged on the AR/ mail check log MUST demonstrate separation of duties. This log is hand written so that one person signs to the opening of the mail and one person signs to the posting of the check.

ALL Checks logged (regardless of which register they are logged to) MUST have a copy of the check present.

To Evaluate

Review the checks listed on depositslips for the deposit samples audited. If less than 3 checks were deposited within the sample set, evaluate the last 3 checks logged from the last audit forward. If no checks are logged since last audit, question is N/A.

Next, use the Mail, AR and Front Desk check logs to confirm correct posting and documentation.

Points are deducted for each check not listed or each check improperly listed on a registeras a percentage of checks listed up to 10 points.

If less than 3 checks are evaluated, each check is worth 5 points per check up to 10 points.

Updated Revised Audit-F-B8- No advance deposits on hand with past due arrival dates.

______GM Signature

______Date

Total Point Value10

No advance deposits should be in the Advance Deposit Ledger after the arrival date or reservation cancelation.

All advance deposits where the guests do not show for their reservations are posted to no show revenue. For cancelled reservations with advance deposits, the deposit should either be refunded to the guest or should be posted as revenue depending on the booking rules for the reservation.