Profit and Loss Reviews
As well as our core business of financial and operational audits we have been also asked on occasions to carry out forensic P&L reviews on specific hotels.
It is likely that you will already carry out regular business review meetings where variances in P&L results against forecasts and budgets can be discussed but you are heavily reliant on what the Financial Controller and General Manager tell you. It is unlikely that you will have the time to actually check what you are being told.
We can visit hotels and review P&L results in detail, checking that nominals are accurate against actual invoices, accruals are acceptable, food and beverage purchases match stocktake results, margins are accurate, revenue recorded in the PMS matches the P&L etc.
Financial Investigations and accounts checks
Over the last three years we have helped a range of businesses with financial investigations including;
• A large FTSE hospitality company who required help in sifting through documentation as part of a financial investigation
• A local authority that required help with preparing a catering tender;
Barrow Borough Council have a number of venues throughout the town where the catering and bars are out sourced. These include the Forum, which is a theatre and events venue, a museum and a leisure centre.
The contractor in place had been running the food and beverage concessions for approximately 20 years.
The remit for Hospitality Audit Services Ltd was to work out a trading account for the catering and bar activities so that a market rent could be assessed.
Sometimes you may require short term help to resolve an issue. We can carry out financial investigations and checks, interrogate accounts and generally provide an additional service to your current employees who may be too busy for a one off project.
Financial investigations – Ad hoc help
There are other areas where we could help your business;
• We carry out General Managers hand over checks so that an incoming General Manager is fully aware of the financial status of the business he is taking over
• We can provide help in writing Standard Operating Procedures and mapping processes
As Head of Internal Audit at Mint Hotels, Chris Pearson was heavily involved in writing and implementing new standard operating procedures.
One such area was the control and authorisation of credit card refunds. New spreadsheets were rolled out throughout the group so that an explanation had to be given for any refund, and all refunds had to be authorised by senior management.
This procedure was regularly checked with a specially written audit program
A new procedure was also written to cover third party credit cards to make sure that the group conformed to PCI (Payment Card Industry) standards while keeping the risk of fraudulent cards being used to a minimum.