CONTINENT HOTELS & RESORTS ACCOUNTING P & P MANUAL - ver.

004/2011

ACCOUNTING
POLICIES & PROCEDURES
MANUAL
No.004 ver.001/2011

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CONTINENT HOTELS & RESORTS ACCOUNTING P & P MANUAL - ver.004/2011

OBJECTIVES OF THE MANUAL

This Departmental Operational Manual is to be used by all department staff members. It

explains our department policies and procedures, rules, regulations, and standards of
performance.

The manual includes definitions of the operational function of each department section
and the scope and duties of each team member.

By referring frequently to the manual, we can ensure that we maintain a consistently high
standard of performance in our daily operations.

To be an effective tool, employees, department and division heads, and the general
managers should constantly review the manual. All suggestions received from staff
members on ways to improve the manual will be carefully considered and changes
implemented upon approval.

UPDATING THE MANUAL

The organizing of the Departmental Operational Manual is one of the key

responsibilities of Division Heads and their respective Heads of Department. The
General Manager will approve the manual.

This manual is prepared using Microsoft Word 98 software to simplify the process
of updating information.

Information contained in the manual should be updated at least once a year. Manuals
are updated using the following procedures:

1. The Head of Department reviews materials contained in the manual to

determine whether updates are needed.
2. A complete review of the manuals must be performed annually by March 31.
3. Bring recommended changes to the attention of the Division Head or executive
member.
4. The Division Head approves changes and proposes them to the General Manager.
5. Once the changes have been approved, the Division Heads implements them.
6. The Division Head updates the relevant computer disks, issues updated printed
inserts, and sends the inserts to all holders of the manual.
7. All policy changes require the approval of the General Manager.

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MANUAL REVISION & APPROVAL RECORD

SECTION REVISED
DATE REVISION DEPT HEAD G.M.
SECTION
COMPLETED PAGE #S AUTHOR’S SIGNATURE SIGNATURE
TITLE
NAME

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TABLE OF CONTENTS
TOPIC ITEM PAGE
OBJECTIVES OF & UPDATING THE MANUAL 2
MANUAL REVISION & APPROVAL RECORD 3
TABLE OF CONTENTS 4
ORGANIZATIONAL CHART 8
STAFFING GUIDE 9
Accounting Division Manager 11
Assistant Chief Accountant 13
Cost Controller 15
Management Information Systems (MIS) 17
General Cashier 19
Credit Officer 20
Income Auditor 22
JOB DESCRIPTIONS
a) Audit of Sales Revenue Report 23
Food & Beverage Cashier 25
Logistics Manager 27
Purchasing Manager 28
Purchasing Officer 29
Storeroom Supervisor 30
Food Storekeeper 31
Beverage Storekeeper 32
Receiving Clerk 33
Secretary 35

CREDIT POLICIES
1. Department Objectives 37
2. Credit Policy for Front Office 38
a) Reservations Procedures 38
b) Guest Check-In Procedures 38
c) Abbreviations to be Used 39
3. Credit Application Procedures 40
4. Credit Limit Summary 41
POLICIES & PROCEDURES 5. Charge Procedures
a) For Company Accounts 42
b) For Credit Cards 42
c) For Personal Accounts 44
d) For Travel Agents 45
e) For Airlines 46
f) For Banquets 47
g) For Government Accounts 49
h) For Embassies 50
i) For House Accounts 51
k) For Registered House Guests 52

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TABLE OF CONTENTS
TOPIC ITEM PAGE
Continued…Credit Policies

5. Credit Policy for Walk-in Guests 53

6. Credit Policy for Paid Outs 54
7. Credit Policy for Personal Checks 55
8. Credit Policy for Travelers Checks 56
9. Collector's Procedures 57
10. Credit Policy for Outlets 58
11. Policy for Cash Payment at Outlets 59
12. Credit Policy for Shops / Tenants 60

ACCOUNTS RECEIVABLE
1. Credit Procedures for Room Reservations 61
2. Credit Procedures for Front Office 63
3. Catering Credit Procedure 65
4. Credit Policy for Groups & Conventions 66
5. Credit Approval for New Accounts 68
POLICIES & PROCEDURES 6. Credit Review 69
7. Deposit of Checks etc. 71
8. Credit Collection & Reminder Letters 72
9. Late Charges Letter 73

PURCHASING
1. Purchasing Policies 74
2. Purchase Requisitions 78
3. Purchase Orders 80

F&B COST CONTROL

1. Department Objectives 82
2. Processing of F&B Invoices 83
3. Direct Issue for Food Items 84
4. Store Purchase for F&B 85
5. Daily Storeroom Issues for F&B 86
6. Daily Report on F&B Costs 87
a) Food Cost 87
b) Beverage Cost 87
c) Credit to Food and Beverage Cost 87
7. Stocktaking Procedures 89
a) Physical Count of F&B and General 90
b) Physical Count of Food Items in 90
c) Physical Count of Beverage Items at
Bar Outlet(s) 90
d) Control Over Slow Moving Stocks 90

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TABLE OF CONTENTS
TOPIC ITEM PAGE

CASH ADVANCED / PAID OUT

1. Department Objectives 92
2. Cash Advanced to Guests 93
3. Paid Out Vouchers 94
4. Refund of Credit Balance to Guests 95

FOREIGN CURRENCIES & TRAVELERS CHECKS

1. Department Objectives 96
2. General Procedures 96
3. Foreign Currency Exchange Voucher 97
4. Payment by Traveler's Checks 98

GUEST DEPOSITS
POLICIES &
1. Department Objectives 99
PROCEDURES 2. Procedures for Deposits 99
3. Procedures for Prepayment 100
101
OFFICER'S CHEQUES
103
PERSONAL CHEQUES
105
PHYSICAL INVENTORY
106
REBATES
1. Rebates at the Front Desk from Guest Ledger 107
2. Rebates from City Ledge 108

INTERNAL AUDIT CHECKLIST 109

LIST OF FORMS & AUDIT CHECKLIST IS ON THE NEXT PAGE

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LIST OF ACCOUNTING FORMS & AUDIT CHECKLIST

TOPIC ITEM PAGE

AC-001 Guest Invoice

AC-002 (Non-Guest) Invoice
AC-003 Officer's Check
AC-004 Room Service Bill
AC-005 Restaurant Guest Check
AC-006 Request for Check
AC-007 Receipt of Payment
AC-008 Progress of Payment & Approval (PPA) Certificate
AC-009 Purchase Order
ACCOUNTING AC-010 Journal Voucher
FORMS AC-011 Gift Certificate Authorization
AC-012 Daily Revenue Report
AC-013 Daily Flash Report for Food Cost
AC-014 Cashier's Envelope
AC-015 Cashier's Daily Record
AC-016 Food Costs Reconciliation Statement
AC-017 Beverage Costs Reconciliation Statement
AC-018 General Supplies Reconciliation
AC-019 Store Requisition
AC-020 Summary of Goods Received
AC-021 Summary of Officers' Duty & Entertainment Expenses

Purchasing & Receiving Audit Checklist

Front Office Audit Checklist
Account Receivables Audit Checklist
Accounts Payable Audit Checklist
AUDIT Payroll Audit Checklist
CHECKLIST Housekeeping Audit Checklist
General Accounting Audit Checklist
Point of Sales Audit Checklist
Food & Beverage Department Audit Checklist
Store & Issuing Audit Checklist
General Items
Food & Beverage

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ACCOUNTING DEPARTMENT
STAFFING GUIDE

Accounting Staff Summary Budget Actual

Accounting Division Manager 1 1

Assistant Chief Accountant 1 0
Accounts Secretary 0 1
F&B Cashier Supervisor 1
Assistant F&B Cashier Supvr. 0 1
F&B Cashiers 12 12
Credit Manager 1 1
Credit Supervisor 0 1
Credit Officer 0 1
Collector 1 2
AR Supervisor 0 1
AR Officer 1 1
Income Auditor 2 1
Night Audit Supervisor 0 1
Night Auditor 2 2
MIS Manager 1 1
Accounts Payable Supervisor 1 0
AP Junior Supervisor 0 1
Paymaster / General Cashier 1 1
Bookkeeper 0 1
Property Controller 1 1
Cost Controller 1 1
Cost Control Officer 3 1
SUBTOTAL 30 33

Logistics Manager 1 1
Purchasing Manager 1 1
Purchasing Officer 1 0
Receiving Supervisor 0 1
Receiving Clerk 2 2
Stores Supervisor 1 1
Stores Officer 0 1
Storekeeper 2 2
Secretary for Logistics 0 1
SUBTOTAL 8 10

Total Staff 38 43

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ACCOUNTING DEPARTMENT

JOB DESCRIPTIONS

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JOB DESCRIPTION

Job Title : ACCOUNTING DIVISION MANAGER

Section : Accounting Department
Reports to : General Manager

PURPOSE

Ensures that all financial data and reports are timely, accurate and within
generally accepted accounting principles. Produces cash flow analysis, annual
operating and capital budgets, and analytical reports as needed. Ensures all country
and city taxes, licenses and permits are filed and paid on a timely manner. Advises
the General Manager on financial matters. Interacts with corporate office and is a
member of the Executive Committee.

DUTIES & RESPONSIBILITIES

1. Ensure that staff in all accounting areas are adhering to set standards in the
performance of their duties.

2. Supervise month end closing procedures.

3. Assure that the daily report is ready for distribution by 11:00 am, review and
approve the report for accuracy.

4. Review and approve check creation edit report before they are finalized.

5. Approve all manual check requests, verifying the validity and amount.

6. Review A/R aging with the supervisor and comment on accounts over 60 days.
Amounts over 60 days should not be more that 5% of total A/R aging balance.

7. Assure that the General Cashier’s daily cash count balances with the total bank
balance.

8. Review the payroll forecast for the rest of the year based on occupancy and F&B
projected business.

9. Update the latest estimate (revenues and expenses) to show what we can expect
to happen based on solid factors such as occupancy percentage and unexpected
expenses.

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10. Responsible for the preparation of financial reports needed by the owner and
by the corporate office.

11. Coordinate and prepare the hotel’s annual budget plan, and once approved,
ensure data is inputted into the general ledger.

12. Prepare daily cash flow by inputting all transactions such as the Account Payable
payments, bank transfers, and from our account, payroll and other
disbursements.

13. Attend and participate in department staff meetings and Executive Committee
meetings.

14. Responsible for the training and development of Accounting staff.

15. Coordinates all internal and external audits.

16. Complete all other duties that are assigned by the General Manager and/or the
Corporate Office.

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JOB DESCRIPTION

Job Title : ASSISTANT CHIEF ACCOUNTANT

Section : Accounting Department
Reports to : Accounting Division Manager

PURPOSE

Assist the Accounting Division Manager to ensure that all daily work is performed in a
timely manner and in accordance with hotel standards. Ensures that all deadlines are
met when reporting month- end figures to corporate office.

DUTIES & RESPONSIBILITIES

1. Under the direction of the Accounting Division Manager, assure that all areas are
adhering to set standards in the performance of their duties.

2. Review balance sheet reconciliation.

3. Assure that the daily report is ready for distribution by 11:00 am, review and
approve the report for accuracy.

4. Review all rebates, paid outs and miscellaneous charges on a daily basis,
review all concession payments, check for backups and that the agreed
commission rate is deducted.

5. Review and follow up outstanding checks, goods received without invoice and
outstanding payable reports on a weekly basis.

6. Review A/R aging with the Supervisor and comment on accounts over 60 days.
Amounts over 60 days should not be more than 5% of total A/R aging balance.
Assure that the daily in- house guest balance is being reviewed and verified for
sufficient credit approvals.

7. Assure that the General Cashier’s daily cash count balances with the total bank
balance. The General Cashier’s bank must be counted at days’ end and count
sheet must be submitted for approval.

8. Review the payroll forecast for the rest of the year based on occupancy and
F&B projected business. Update on a monthly basis or whenever there is a
considerable change that will affect the financial results for that given period.

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9. Update the latest estimate (revenues and expenses) to show what we can expect
to happen based on solid factors such as occupancy percentage and unexpected
expenses. This report must be approved by the Accounting Division Manager for
distribution on a monthly basis.

10. Assist the Accounting Division Manager in the preparation of financial reports
needed by the owner and by the corporate office.

11. Assist the Accounting Division Manager in preparation of the hotel annual
budget plan, and once approved, ensure data is inputted into general ledger.

12. Prepare daily cash flow by inputting all transactions such as Accounts Payable
payments, bank transfers, and from our account, payroll and other
disbursement.

13. Complete all other duties that are assigned by the Accounting Division Manager
and/or the General Manager.

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JOB DESCRIPTION

Job Title : COST CONTROLLER

Section : Accounting Department
Reports To : Accounting Division Manager

PURPOSE

Cost Control is responsible for the accounting of food and beverage costs and other
expenses. The position of Cost Controller is critical as it relates to the hotel's profit
goal. Therefore, the Cost Controller (CC) should have extensive knowledge of
accounting systems, F&B, and food production, as well as strong leadership
capabilities. The CC supervises the Cost Clerk and reports to the Accounting
Division Manager. He/she also works with the Accounts Payable Department and the
Income Auditor.

DUTIES & RESPONSIBILITIES

1. Ensure that the Purchasing Department records and checks all purchases so that
the best quality and the best available price are obtained.

2. Inspect the receiving area periodically to verify that receiving procedures are being
followed.

3. Inspect all store rooms at least once daily and personally check the items
contained in the store rooms against bin cards, meat tags, etc., to ensure that
store-room procedures are being observed.

4. Prepare the daily Food & Beverage sales and cost (daily flash cost) reports.

5. Ensure staff are accurately performing assigned work and that items for expense
charges are correctly posted.

6. Work with the Executive Chef to ensure that items listed on the menus are ordered
and that supplies received are of the highest quality.

7. Update the menu-costing quarterly and report the results to the Food & Beverage
Manager with proposed sales prices and percentage cost of each dish.

8. Conduct food testing with the Chef of new products available in the market.

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9. Prepare food analyses when new menu items are added or when requested by
the F&B Manager.

10. Conduct spot-checks on portion control so that consistent portion sizes are
maintained.

11. Work with F&B Cashier Supervisor to ensure that all food/beverage taken out of
kitchen/bars are supported by a captain's order and that guest checks have
correct prices.

12. Take monthly inventories of food/beverage, general storeroom, and bars.

13. Finalize the month-end cost board by the 3rd working day of the following month.

14. Complete the month-end report by the 6th working day of the following month.

15. Prepare a report on the comparison of the hotel's prices with the leading competing
hotels in the area, and submit to Management each month.

16. Conduct market surveys twice a month and report the results to the Accounting
Division Manager.

17. Spot-check the house-use/entertainment checks and report to the Accounting

Division Manager every month- end.

18. Maintain the highest standards of discretion, honesty, business ethics and
devotion to duty.

19. Complete other duties that are assigned by the Assistant Chief Accountant
and/or by the Accounting Division Manager.

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JOB DESCRIPTION

Job Title : MANAGEMENT INFORMATION SYSTEMS (MIS) MANAGER

Section : Accounting
Reports to : Assistant Chief Accountant

PURPOSE

To ensure that all computer related software and hardware are working smoothly to
support daily hotel operations.

DUTIES & RESPONSIBILITIES

1. Check and monitor the operation of all computer hardware and ensure that all
systems are installed and working properly.

2. Ensure all systems have correct contracts for maintenance as required.

3. Train selected hotel staff to take on major responsibilities.

4. Control user ID passwords and profile periodically.

5. Maintains technical and user documentation support system, newsletter, etc.

6. Inform all Department Heads on current computer related issues (i.e. news
release, MIS trends and virus activities).

7. Test all software approved by Management.

8. Check and ensure that by close of day, Micros and Fidelio is running smoothly
and that close- of-day reports are printed properly.

9. Check all hotel interface and ensure that all interface PCs are working properly
(Micros, TESA, PABX, Meridian Mail).

10. Check and ensure that the Internet is on function mode and ensure incoming
messages are printed accordingly.

11. Ensure that Federal Computer Juru Data is working.

12. Maintain up to date computer hardware (PC work station, Micros, Printer act).

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13. Investigate and report the software and hardware problems to concerned
vendors or suppliers.

14. Perform related duties and special project assigned.

15. Establish and maintain effective employee relations.

16. Contribute toward hotel activities as directed.

17. Perform and maintain EDP daily checklist.

18. Maintain and support Cyber relations.

19. Back up all files at the end of the day.

20. Complete other duties that are assigned by the Accounting Division Manager
and/or the General Manager.

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JOB DESCRIPTION

Job Title : GENERAL CASHIER

Section : Accounting Department
Reports To : Assistant Chief Accountant

PURPOSE

The main responsibilities of the General Cashier are to collect all daily receipts, make
bank deposits, maintain records relating to payrolls, and prepare and pay payroll on a
timely basis.

The General Cashier/Paymaster maintains petty cash funds. Amounts paid through
petty cash should not be numerous and only for minimal amounts. Large amounts are
never paid from the petty cash fund. The Accounting Division Manager or Assistant
Chief Accountant must approve disbursements made from petty cash before
payments are made.

DUTIES & RESPONSIBILITIES

1. Collect and count outlet cashier and front office remittances daily.

2. Receive payments made for local collection, direct settlement by outsider, or cash
and checks that are mailed. Record payments in the general cashier daily report.

3. Pay out money using petty cash vouchers with the approval of the
Accounting Division Manager or Chief Accountant. When the General Cashier's
fund is almost depleted, prepare a request for petty cash reimbursement.

4. Prepare and make the daily bank deposits.

5. Prepare General Cashier's daily report.

6. Count petty cash fund weekly and fully account for disbursements.

7. Prepare bank reconciliation.

8. Assist with other accounting job functions and assignments.

9. Complete other duties that may be assigned by the Assistant Chief Account
and/or by the Accounting Division Manager.

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JOB DESCRIPTION

Job Title : CREDIT OFFICER

Section : Accounting Department
Reports To : Assistant Chief Accountant

PURPOSE

The Credit Officer reports to the Accounting Division Manager and Assistant Chief
Accountant. The Income Auditor and the General Cashier provide source documents
for the Accounts Receivable department. Debit entries may originate from the guest
ledger, credit card vouchers, employee ledger, and arcade. The Credit Officer must
verify that charges have been balanced on the trial balance report, done daily to avoid
discrepancies. Once all the charges have been recorded on the daily record summary,
the charges are then posted to the subsidiary ledger that must balance with the general
ledger.

DUTIES & RESPONSIBILITIES

1. Ensure the charges that are debited to various accounts are accurate and posted
on a timely basis.

2. Compute the city ledger account balances and send these statements as soon as
possible.

3. Separate the travel agent accounts, city ledger, credit card, and employee
ledgers.

4. Ensure the necessary information concerning overdue accounts is submitted to

the Accounting Division Manager and the Assistant Chief Accountant for follow-
up.

5. Control cash flow by recording, posting, and balancing the advance deposit
reports.

6. Respond to guest and other customer queries regarding account disputes.

7. Ensure that billing statements are in agreement with contracts.

8. Verify that subsidiary ledgers are in agreement with the appropriate control
accounts and prepare trial balance analysis of ledgers.

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9. Prepare reports and analyses concerning accounts receivable.

10. Complete other duties that may be assigned by the Assistant Chief Accountant
and/or by the Accounting Division Manager.

OTHER DUTIES

At the start of each day, the Credit Officer receives the previous day's
accounts receivable charges from the Income Auditor. The charges include city
ledger as well as credit cards from Front Office and F&B outlets. The folio and
voucher totals must be balanced with accounts receivable daily.

Payments received through the Front Office will be credited to the correct
ledger account.
When the Credit Officer encounters such things as illegible signature on
restaurant check or incomplete addresses from Front Office folio, the Credit
Officer immediately brings them to the attention of the Income Auditor, Assistant
Chief Accountant and Accounting Division Manager.

In order to oversee credit card companies' charges, the Credit Officer must be
familiar with the rules, regulations and procedures pertaining to the use of credit
cards. The Credit Officer also arranges the billing of group businesses. These
bills and statements must be mailed within two days after guest checkout.
Reminder letters should be sent to overdue accounts in accordance with
instructions in the credit manual. Aging of trial balance analysis should be
prepared within three working days after month's end.

The Credit Officer receives a copy of payments that are mailed to the General
Cashier. This list shall be used as posting reference. Payments received by bank
transfers should be credited to the relevant account.

Other credits to city ledger accounts (such as rebates, allowances, and write-
offs) must be approved before they are posted.

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JOB DESCRIPTION

Job Title : INCOME AUDITOR

Section : Accounting Department
Reports To : Assistant Chief Accountant

PURPOSE

The Income Auditor is responsible for the audit of all daily hotel income, and is
supervised by the Assistant Chief Accountant and the Accounting Division Manager.
Major duties include verifying records of revenue-producing outlets as well as the
night audits. Other duties involve checking for the records of F&B cashiers, Front
Office Reception and Night Auditor.

DUTIES & RESPONSIBILITIES

1. Check daily revenue against supporting documents such as guest folio,

vouchers, and guarantee letters.

2. Audit the daily cash summary prepared by the General Cashier by filling up the
clearance column next to general cashier figures. Analyze the cash
over/shortage, and review the general cashier and bank reports.

3. Prepare the earnings journal which is derived from the manager’s report, F&B
revenue reports, and cash receipt journal from the general cashier report.

4. Check that all rebates/adjustments were fully approved by authorized persons then
prepares rebate/adjustment journal.

5. Prepare daily report of operations for Accounting Division Manager’s review and
signature.

PROCEDURES

1. Review Revenue Report (Manager Report) prepared by the Night Auditors and
compare room charges in preparation for the daily morning/operation meeting
between the General Manager, Accounting Division Manager, F&B Manager,
Front Office Manager, Sales & Marketing Director, Executive Housekeeper, and
Chief Engineer.

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2. Audit charges to city ledger, travel agent, credit card, and employee ledger listed on
accounts receivable envelope.

3. Verify that charges are properly approved and the proper vouchers are submitted.

4. Forward all necessary guest folio, vouchers, and supporting documents to

Accounts Receivable.

Audit of Sales Revenue (Managers Report)

The purpose of auditing sales revenue (trial balance from system) is to ensure that
departmental totals shown are in agreement with departmental summary of sales.

When auditing sales revenue the Income Auditor will:

1. Compare room earnings shown on the trial balance with room charges on the
night audit report. There must be no discrepancies in this report.

2. Review and distribute miscellaneous charge vouchers to appropriate departments.

Because the vouchers can be used as multi-purpose vouchers, the Income
Auditor must identify which vouchers are income and accounts payable.

3. Paid-out vouchers must be approved and balanced with total paid-out

reports. Any irregularities are to be brought to the attention of the Accounting
Division Manager.

4. Total telephone calls must be balanced with the telephone operator’s records.
Vouchers for house-use calls should be sent to the person who made the call for
explanation. In addition, the all vouchers for house-use long-distance and house
facsimile are to be approved by the General Manager, and Accounting Division
Manager.

5. Laundry and valet charges must be balanced with the Laundry Department
records.

6. Clearance accounts must balance out to zero by comparing the total sales (trial
balance) report and cashier's daily report.

7. Reception cash reports must balance with the trial balance report (cash sales
clearance less paid out) and verified with General Cashier’s daily report.

8. Prepare the Daily Sales Report as soon as possible for the Accounting Division
Manager’s signature. Send copies of the report to the General Manager and
Department Heads.

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9. The Income Auditor reviews all rebate vouchers from the previous day for
approval. The total must balance with the trial balance report and is then
entered to the rebate journal.

Vouchers should be forwarded to the Accounting Division Manager and General

Manager for approval. Rebate vouchers that do not have proper authorization or
adequate explanation should be brought to the attention of the Accounting
Division Manager for follow-up.

10. The Income Auditor controls the numerical sequence of vouchers and of
restaurant checks that are issued to the F&B cashier. Missing bills and
vouchers must be reported to the Accounting Division Manager for further
action.

11. The Income Auditor prepares the journal vouchers from the earnings, rebates,
and adjustments journal for posting to the general ledger, in preparation for the
end-of-month closing of the books.

12. Complete other duties that are assigned by the Assistant Chief Accountant
and/or by the Accounting Division Manager.

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JOB DESCRIPTION

Job Title : FOOD & BEVERAGE CASHIER

Section : Accounting
Reports to : Income Auditor

PURPOSE

Receive and process all payment methods for restaurant and bar guest checks,
courteously and efficiently in accordance with hotel standards. Settle all guest checks
in the computer system and maintain accountability for all financial transactions.

DUTIES & RESPONSIBILITIES

1. Maintain complete knowledge of all menu and drink prices in outlets as well as
P.O.S. and manual systems and procedures.

2. Be familiar with table/seat/station numbers, room capacity, hours of operation and

house counts, hotel facilities and hotel services.

3. Obtain assigned bank and ensure accuracy of contracted monies. Obtain

change required for expected business level, keep bank secures at all times.

4. Set up and organize work station with designated supplies, forms and resource
materials and maintain cleanliness at all times.

5. Courteously acknowledge all guests arriving/departing the outlet, however busy

and whatever time of the day.

6. Access all functions of the P.O.S. system in accordance to specifications. Restock

journal tape and change ribbons as needed, input orders into system and
distribute to servers.

7. When system is down, obtain manual checks and follow all accounting
procedures.

8. Process all payment methods in accordance with accounting procedures and

policies.

9. Settle all checks opened under own ID. Settle all servers checks before
leaving, report open checks to outlet supervisor/manager.

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10. Complete designated closing reports in the P.O.S. system.

11. Pay out tips to the designated staff and document, following accounting and legal
requirements.

12. Count bank at the end of shift and secure bank.

13. Legibly complete designated cashier reports and distribute in accordance with
accounting procedures.

14. Balance and drop receipts according to accounting specifications.

15. Complete other duties that may be assigned by the Income Auditor and the
Assistant Chief Accountant.

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JOB DESCRIPTION

Job Title : LOGISTICS MANAGER

Section : Logistics Department
Reports To : Accounting Division Manager

PURPOSE

To seek out and negotiate the most beneficial terms and competitive prices for the
supply of top - quality goods required by the Hotel. Establish and maintain quality
control measures for the receipt of goods from all suppliers. Ensure accurate and
updated records are maintained throughout the department.

DUTIES & RESPONSIBILITIES

1. Review weekly function sheet.

2. Monitor goods received in the loading dock.
3. Ensure proper placement of beverage products in the storeroom and assist
Storekeeper with food products.
4. Purchase all general items as needed to maintain the general storeroom par
stock in accordance with established par stocks.
5. Purchase other general items as needed for all direct issue departments,
based on the originating department’s purchase request.
6. Control slow moving items in storeroom.
7. Maintain file of price quotations for all general items
8. Maintain purchase requisition files.
9. Maintain vendor communication
10. Coordinate pick-ups as necessary from vendors.
11. Approve selected general storeroom requisitions.
12. Process purchase request from departments.
13. Complete other duties that may be assigned by the Accounting Division Manager
and/or by the General Manager.

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JOB DESCRIPTION

Job Title : PURCHASING MANAGER

Section : Logistics Department
Reports To : Logistics Manager

PURPOSE

To oversee the daily Purchasing, Receiving and Store operations.

DUTIES & RESPONSIBILITIES

1. Implement daily working schedule of Purchasing Staff.

2. Monitor and direct staff work activities at Purchasing.

3. Check daily purchase summary and store report that is received by the Receiving
and Store Clerk.

4. Follow up on Purchase Requests and contact suppliers prior to negotiations.

5. Ensure open and effective communication between team members.

6. Promptly report discrepancies and problems to the Logistics Manager.

7. Conduct market surveys twice (2x) a month.

8. Complete other duties that may be assigned by the Accounting Division Manager
and/or by the General Manager.

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JOB DESCRIPTION

Job Title : PURCHASING OFFICER

Section : Logistics Department
Reports To : Purchasing Manager

PURPOSE

To monitor and organize daily Purchasing, Receiving and Store operations

DUTIES & RESPONSIBILITIES

1. Implement daily working schedule of Purchasing Staff.

2. Monitor and direct staff work activities at Purchasing, Receiving and Store.

3. Check daily purchase summary and store report that is prepared by the Receiving
& Store Clerk.

4. Follow up on Purchase Requests and contact suppliers prior to negotiations.

5. Ensure open and effective communication between team members.

6. Promptly report discrepancies and problems to the Logistics Manager.

7. Complete other duties that may be assigned by the Accounting Division Manager.

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JOB DESCRIPTION

Job Title : STOREROOM SUPERVISOR

Section : Logistics Department
Reports To : Logistics Manager

PURPOSE

The Logistics Manager supervises Storekeepers. The Storekeeper maintains the

perpetual inventory record, and is responsible for producing monthly departmental
consumption reports of all items. At month-end, the Storekeeper compares physical
inventories with the book figures and accounts for differences.

DUTIES & RESPONSIBILITIES

1. Open the storeroom by 8:30 a.m. daily and prepare any necessary things to be
done.
2. Prepare the general store list or purchase requests when stock falls below the
established par. Make sure that incoming goods are supported by general store
list.
3. Ensure the accuracy of actual stock against bin cards.
4. Regularly reports any slow moving items to the Cost Controller.
5. Keeps the general storerooms clean at all times.
6. Receives incoming goods from the Receiving Department and verifies with the
receiving records. Fills out bin cards accurately and completely.
7. Makes sure that items leaving the storerooms are supported by proper
requisitions.
8. Does not permit anyone in the storerooms except authorized Department Heads.
9. Ensures that items are kept on the shelves and arranged according to the aging
report and inventory sheet.
10. Conducts a physical inventory at each month-end.
11. Issues goods according to a FIFO system.
12. Complete all other tasks that are assigned by the Purchasing Manager
and/or by the Accounting Division Manager.

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JOB DESCRIPTION

Job Title : FOOD STOREKEEPER

Section : Logistics Department
Reports To : Storeroom Supervisor

DUTIES

1. Open the storeroom by 8:30 a.m. daily to issue food to kitchen.

2. Ensure that all food issued to all outlets/kitchens are supported by properly
authorized requisitions.

3. Receive incoming goods from Receiving and compare with receiving records
prior to filling- out the bin card.

4. Keep all items on the shelves according to inventory cards. Additional items
should be shelved in groupings of similar items.

5. Issue a Purchase Request if stock of goods goes down below the established par.

6. Rotate slow moving items regularly -- especially fresh fruits and vegetables, to avoid
spoilage.

7. Check the refrigerator temperatures and report to the Logistics Manager if

temperatures are incorrect.

8. Keep the storeroom area and refrigerators clean at all times.

9. Take a physical inventory at the end of every month.

10. Know and practice accident prevention rules in the storeroom area.

11. Complete all other tasks that are assigned by the Storeroom Supervisor and/or
by the Purchasing / Logistics Manager.

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JOB DESCRIPTION

Job Title : BEVERAGE STOREKEEPER

Section : Logistics Department
Reports To : Storeroom Supervisor

DUTIES

1. Open the storeroom by 8:30 a.m. daily and prepare equipment and tools.

2. Issue beverages to outlets and make sure that items leaving the storeroom are
supported by authorized requisitions.

3. Record all beverages received or issued on bin cards.

4. Issue a Purchase Request if stocks below the established par.

5. Organize items on the shelves according to inventory cards. Additional items

are to be shelved according to classification numbers.

6. Keep the storeroom and wine refrigerator clean at all times.

7. Check the refrigerator temperatures and report to the Logistics Manager if

temperatures are incorrect.

8. Do not permit anybody in the storeroom except authorized department heads.

9. Record all incoming/outgoing empty bottles and report the results every month-
end to the Cost Controller.

10. Take a physical inventory every month-end.

11. Ensure that all empty bottles are returned from the Hotel’s various outlets back to
the store.

12. Complete other tasks that are assigned by the Storeroom Supervisor and/or by the
Purchasing Manager.

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JOB DESCRIPTION

Job Title : RECEIVING CLERK

Section : Accounting Department
Reports To : Logistics Manager and Cost Controller

PURPOSE

The Receiving Clerk is responsible for ensuring that the products provided to the hotel
are of the best quality available before they are unloaded and delivered. Receiving
Clerk must have knowledge of merchandising and quality control, and possess high
levels of honesty and administrative skills. The Receiving Clerk reports to the Cost
Controller.

DUTIES & RESPONSIBILITIES

1. Check order sheets of goods expected to be received that day and ensure that
incoming goods are properly inspected and documented. Without a market list,
purchase order etc., the Receiving Clerk has no authority to accept goods.

2. Physically examine and approve the actual goods for quantity, quality, weight,
price, etc., and verify the accuracy with the purchase order.

3. Obtain the original supplier’s packing slip which must be stamped and signed, and
attach it to the receiving record for later comparison with the purchase order.

4. Inform the Chef immediately of the arrival of meat, poultry and seafood. All meat,
seafood, and poultry is tagged on arrival. The top of the meat tag is stapled to
the unit of meat, seafood, or poultry while the bottom part is sent to cost
control office with the original packing slip and receiving record/supplier’s
invoice.

5. To receive engineering parts or machinery, these items must be checked with one
of the chief engineering representatives. Engineering personnel must initial the
original packing slip and receiving reports to approve receipt of the goods.

6. All hotel goods leaving the premises such as returning empty bottles, repairs,
or goods borrowed by other hotels must also pass through this department. An
out-going record must be filled-out and signed by a security department witness.
Nothing is authorized to leave the hotel premises without an out-going record.

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7. If there is no invoice or packing slip accompanying incoming goods received,

one must be made out and signed by the Receiving Clerk and the Delivery
Person.

8. After all incoming goods have been inspected and receiving records verified, the
goods should be forwarded to the storeroom or the department concerned.

9. In case of short delivery, an outstanding order list shall be filled-out and sent to
Purchasing with a copy to the Executive Chef and Cost Controller.

10. At the end of each day, a daily receiving report must be completed and include:

• Food Section
• Beverage Section
• General Supplies and others

11. A copy of this report is to be sent to:

• Cost Controller with original packing slip, receiving report and, if available,
invoice.
• Department Concerned
• Receiving File
• Storekeeper

12. Complete other duties that are assigned by the Logistics Manager and the Cost
Controller.

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JOB DESCRIPTION

Job Title : SECRETARY

Section : Logistics Department
Reports To : Logistics Manager

PURPOSE:

To implement daily administration, maintain files, and assist other associates to

complete their work assignments.

DUTIES & RESPONSIBILITIES

1. Type work assigned by the Logistics Manager and other team members.

2. Set up and maintain filing system and files.

3. Contact suppliers for daily purchase.

4. Maintain the department’s daily attendance record.

5. Forward memos, approval requests, and other documents to other departments

as required.

6. Ensure office supplies are adequate and prepare store requisitions.

7. Record appointments made with or by Suppliers.

8. Complete other duties that are assigned by the Logistics Manager and
Purchasing Manager.

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ACCOUNTING DEPARTMENT

POLICIES & PROCEDURES

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POLICIES & PROCEDURES

Department : Accounting
Task : CREDIT POLICY

DEPARTMENT OBJECTIVE

To minimize Credit Risk and a high percentage of Accounts Receivables, our aim is to
adopt a very tight Credit Policy. Credit Policies are to be set forth by the Credit
Committee comprising of the following officers:

1. General Manager

2. Chief Accountant

3. Rooms Division Manager

4. Director of Food & Beverage

5. Director of Sales & Marketing

6. Sales Manager

7. Credit Manager

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POLICIES & PROCEDURES

Department : Accounting
Task : CREDIT POLICY

CREDIT POLICY FOR FRONT OFFICE

The Front Office procedures in this section only go so far as those that interrelate with
those of the Credit Department. Front Office operational reference should be made
with the Front Office Manual.

1) Reservation Procedures

When a reservation is received by mail, telephone or telex, it is essential that the

reservation form/screen be fully completed with the following information obtained
from the guest:

a) Family Name (Surname) and initials whenever appropriate, inc. gender (Mr.,
Mrs., Ms.) number of guests inc. children, if any
b) Arrival and Departure Dates
c) Type and Number of Room(s) Required
d) Room Rate
e) Arrival Information. If toward 6:00 p.m., hold guaranteed late arrival
f) Full Name, Address and Telephone Number of Company
g) Special Request for Services
h) Billing Instructions (i.e. Full Company Charges or if for Room Charges only)
i) Confirmation Requested
j) Reservations Clerk initials should be written on R/C

2) Guest Check-In Procedures

1. The Receptionist should ask the guest to complete the registration card and
this must include the passport or Indonesia Identification (KTP), credit card
and/or other payment arrangement.

When a guest intends to settle his own bill by cash or check, the word
Personal Account should be marked on the registration card.

2. If the guest will settle by credit card, the Receptionist should ask the guest
politely to see his/her credit card and then print the applicable credit card
voucher and return the card to the guest.

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3. The Receptionist should do the following:

Check the Name and Expiration Date

Obtain the Approval Code through the POS machine or by calling the
Credit Card Company

If handling a Company Account, the Receptionist should not accept any

Credit Agreement without the approval of the Credit Manager. If a
Guarantee Letter is not available upon check-in, the Receptionist should
ask the Front Office Manager or the Credit Manager for approval, of if
after normal office hours, the approval of the Assistant Manager

3) Abbreviation to be used after the Name of a Foreign Guest

For example, Max Smith should be typed as Smith, Mr. Max or Smith, Mr. M. In this
case, Reception should create a separate folio with the abbreviation after the Guest
Name.

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POLICIES & PROCEDURES

Department : Accounting
Task : CREDIT POLICY

CREDIT APPLICATION PROCEDURES

a) All Credit Participants are requested to fill in the Credit Application Form correctly
and completely.

b) The completed Application Form should be returned to the Hotel or the property.
For the applicant's reference bank, we should ask for their bank reference
number.

c) In the event the Reference Letter is not submitted, then the assistance from our
bank will be requested to obtain the above-mentioned letter.

d) The reply received will be the basis for either of the following:

- Credit Approval
- Need to obtain more specific information
- Credit Refusal

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POLICIES & PROCEDURES

Department : Accounting
Task : CREDIT POLICY

CREDIT LIMIT SUMMARY

No. Name of Card Floor Limit Phone/Fax for Authorization

Zero (usr cat 90) Phn: 521-6000 - 521-6666
1 AMEX Card Omron Fax: 521-6888
Zero (usr cat 90) Phn: 570-1255 - 570-6711
2 Diners Card Omron Fax: 570-0663
3 BCA Card Zero (usr cat 90) Phn: 520-9020 - 571-0288
JCB Card Omron Fax: 570-7005 - 571-1303
Visa Card
Master

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POLICIES & PROCEDURES

Department : Accounting
Task : CREDIT POLICY

CHARGE PROCEDURES FOR COMPANY ACCOUNTS

The following points should be observed:

Credit will be issued only for Bonafide Companies (such as Oil Company,
BUMN, etc.) who have completed the required Application Form and provided
the required bank account information. Credit facility will be validated by
confirmation with their bank references.

The Company has established its credit facility with the Hotel upon
satisfying the requirements of the Credit Committee.

The Letter of Guarantee from such company in favor of the guest is

submitted to the Hotel.

The Guarantee Letter was checked with such company validating the guest
concerned and the payment terms.

CHARGE PROCEDURES FOR CREDIT CARDS

1) The following Credit Cards are acceptable:

- AMEX Card
- Diners Card
- Visa Card
- Master Card
- JCB
- BCA Card

2) When the guest pays and signs his credit card charge slip, the Front Office
Cashier or the Outlet Cashier should check the following:

a) The card should be properly imprinted with the name and number clearly
readable.

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b) The signature on the charge slip is not different from the signature on the card.
c) Expiration Date. The credit card should still be valid.
d) The account number should not appear on the blacklist.
e) The amount should not exceed the floor limit.
f) Approval Code is written on the charge slip.

3) In case of the unavailability of the approval code, the following authorization

services should be called immediately:

AMEX Card Phone 521-6666

No.:
Dinners Card Phone 570-1255
No.:
BCA Card Phone 520-9020
No.:
JCB Card Phone 520-9020
No.:
Visa Card Phone 520-9020
No.:
Master Card Phone 520-9020
No.:

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POLICIES & PROCEDURES

Department : Accounting
Task : CREDIT POLICY

CHARGE PROCEDURES FOR PERSONAL ACCOUNT

1) Generally, no credit or signing privileges will be extended to any individual without

approval from:

- General Manager
- Credit Manager
- Director of Sales & Marketing
- Front Office Manager
- Chief Accountant

2) Thus, the Reception should always ask for a deposit with the amount depending on
the length of stay.

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POLICIES & PROCEDURES

Department : Accounting
Task : CREDIT POLICY

CHARGE PROCEDURES FOR TRAVEL AGENTS

1) The Receptionist should request the guest to present the Travel Agent's
Accommodation Voucher upon check-in and should attach the same to the guest
folio. At times, a copy of the voucher may have been received in advance with the
reservation correspondence.

2) A further check on the following points should be made at the same time:

Check the credit worthiness of the Travel Agency

Check to see if the Hotel accepts vouchers from such Travel Agency and if
not, to contact the Credit Manager
Check to see if the Travel Agency is on a cash basis or not.

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POLICIES & PROCEDURES

Department : Accounting
Task : CREDIT POLICY

CHARGE PROCEDURES FOR AIRLINES

1) For Airline Companies booking lay over passengers, the Front Office should request
the passenger to submit an accommodation voucher when checking-in, which shall
be attached to the guest folio.

The account should be considered a Personal Account with charges payable at

check out by the guest, unless the charges had been guaranteed by the airline.

2) For Delayed Flights. Upon receipt of the manifest, the Front Office should indicate
the room number assigned to the passenger and the amount that they can charge
as agreed by the hotel with the airline.

3) Front Office should prepare photocopies of the manifest with the necessary
information and should send copies to all outlets, the Front Office Cashier and the
Accounting Department

4) Master Folio should be prepared for the following:

Room Charges
Meal Charges depending on the arrangement with the airline
Individual Charges account, normally for alcoholic beverages and IDD calls.

The charges to the "portion" of the above account should indicate the proper billing
instructions such as the name of the airline; the amount allowed by the airline for
the room rate and the food.

5) The Front Office should inform the passenger of the arrangement made between
the Hotel and the Airline specially with regard to the mode of payment for
Personal Charges which shall be strictly on cash basis, unless otherwise advised
by the airlines.

6) For Airline Crew.

Separate master accounts should be prepared for room charges and
allowances and the individual's extra charges. Please note that Crew
Allowances are different from one airline to another.

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POLICIES & PROCEDURES

Department : Accounting
Task : CREDIT POLICY

CHARGE PROCEDURES FOR BANQUET

1) The Banquet Manager must coordinate with the Credit Manager to determine the
status of an account prior to making any acceptance of the function on credit and on
the manner and mode of payment.

2) The Banquet Manager is responsible for arranging the credit. Before executing
an order, he should have the cooperation of the Credit Manager to establish the
credit status of the organizer.

3) The payment for the function will be determined as either of the following method:

Credit Facility

A deposit equivalent to 10% of the estimated function cost should be paid upon
signing of the contract.

A 50% deposit is required prior to the function. If the deposit is not received within the
24-hour required period, then the Hotel has the right to release the function order unless
the client has an approved credit facility.

The rest of the balance should be settled within 2 weeks after the invoice is received.

Non-Credit Facility

A deposit equivalent to 10% of the estimated function cost should be paid

upon signing of the contract. A second payment of 25-50% should be paid upon
signed confirmation.

One hundred percent (100%) of the balance should be paid not later than 48
hours after the function.

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4) Billing Procedures

Billing should be made within 24 hours after the charges have occurred.

The Statement with the supporting documents should be sent on the day
following the function by the collectors who should ask for payment upon
the presentation of the Statement of Account for the function.

If the function is cancelled or rescheduled for any reason, the client will be
charged using the following method:

72 hours before the function - 30% of payment received

48 hours before the function - 50% of payment received
Less than 24 hours - 80% of payment received

In case no deposit is received according to the above method, then the General
Manager or the F&B Director will be required to sign the contract.

5) Weddings

Deposit of Rp. 3,000,000 net. Place reservation is not refundable.

2nd payment: 50% from total charges to be received 3 months before event.
Cancellation fees will be applied in the event of a cancellation:

2 to 3 months before event - 50% from 2nd payment

1 to 2 months before event - 75% from 2nd payment
Less than 1 month - 100% will be charge

Last payment should be paid within 2 weeks before the event and not
refundable.

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POLICIES & PROCEDURES

Department : Accounting
Task : CREDIT POLICY

CHARGE PROCEDURES FOR GOVERNMENT ACCOUNTS

1) All guests guaranteed by the Government should be provided with a Guarantee

Letter.

2) The Contact Person who provides the authorization and is responsible for the
payment of the charges should also be clearly mentioned in the Guarantee Letter.

3) Alcoholic drinks and IDD calls are normally not guaranteed.

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POLICIES & PROCEDURES

Department : Accounting
Task : CREDIT POLICY

CHARGE PROCEDURES FOR EMBASSIES

When a guest presents himself as an Embassy staff account and requests that his bill
be charged to his office, then a written confirmation or authorization from the
Embassy concerned should be requested.

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POLICIES & PROCEDURES

Department : Accounting
Task : CREDIT POLICY

CHARGE PROCEDURES FOR HOUSE ACCOUNTS

House Accounts consist of the following:

Room Commission is the account used for charging the total commission on what
we should give to the travel agent.

Difference in Exchange is account used for charging the difference in the exchange
rate.

Room Adjustment is account used for charging the charges for the room due to the
guest not checking-in with no information provided.

Credit Balance is account used for charging the over payment.

A&P Difference is the special account used for charging the promotion fee.

Credit Card Commission is account used for charging the credit card commission
that we give to the card center.

Phone Meter Late Charges is account used for charging the unpaid F&B, laundry
and extra bills.

Weekend Plus is the account used for charging for breakfast (with the charges
included in the room rate).

Mini Bar Late Charges is the account used for charging the unpaid mini bar. The
following accounts are transferred to the general ledger on a monthly basis.

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POLICIES & PROCEDURES

Department : Accounting
Task : CREDIT POLICY

CHARGE PROCEDURES FOR REGISTERED HOUSE GUESTS

1) The Front Office should print and distribute the In House Guest List and Credit
Check Report to each section concerned daily.

2) Through these lists, we can control the checkout date and balance of each guest
folio to prevent guest checkout without payment at the cashier counter.

3) When the account of the guest who has established credit reaches Rp
1,000,000.00, or if the guest has been in the hotel for three (3) days without any
payment, whichever comes first, then the Credit Department should:

- Send a note or reminder to the guest

- Upgrade the credit limit if necessary

4) If there is no payment received the following day, then the 2nd reminder letter should
be sent to the guest.

5) If after the 2nd reminder and there is still no payment, then the Credit Manager
should notify the Chief Accountant of the situation. A personal approach with the
guest should be attempted. If necessary, Security will be posted outside the room
or the room will be double-locked with the assistance of the Front Office Manager.

6) Permanent guests whose accounts are chargeable to their companies shall be billed
at the end of every 2 week period or every month through Accounts Receivables.

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POLICIES & PROCEDURES

Department : Accounting
Task : CREDIT POLICY

CHARGE PROCEDURES FOR WALK-IN GUESTS

Walk In Without Luggage

1) Reception must ask for the length of stay and based on this information, full pre-
payment or a substantial deposit should be obtained. This must be done
tactfully in order not to loose the guest. The deposit payment required in cash
should cover the room and meal charges (1 night deposit = Rp400,000).

2) Front Office should inform all outlet Cashier Supervisors and the Credit
Manager as soon as possible.

Walk In With Luggage

1) To be clearly noted on the registration card and guest folio as walk-in.

2) Returning guest with a good credit reference should not be asked for a deposit.

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POLICIES & PROCEDURES

Department : Accounting
Task : CREDIT POLICY

CHARGE PROCEDURES FOR PAID-OUTS

This is not applicable to some properties.

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POLICIES & PROCEDURES

Department : Accounting
Task : CREDIT POLICY

CREDIT POLICY FOR PERSONAL CHECKS

1) Personal checks will not be cashed for registered guests and will not be accepted
as payment for the guest bill unless with the approval of the General Manager and
the Chief Accountant.

2) Check cashing by non-guest is strictly prohibited unless authorized by the General

Manager and the Chief Accountant.

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POLICIES & PROCEDURES

Department : Accounting
Task : CREDIT POLICY

CREDIT POLICY FOR TRAVELERS CHECKS

1) The Travelers Checks must not have been reported lost or stolen.

2) This must be counter-signed in front of the Cashier upon settlement of the bill.

3) Only acceptable travelers checks in acceptable foreign currencies are to be

cashed and all checks will be converted to Rupiah.

4) If the Cashier is in any doubt or is confused, then he should refer the matter to the
Assistant Manager.

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POLICIES & PROCEDURES

Department : Accounting
Task : CREDIT POLICY

COLLECTORS' PROCEDURES

1) Delivery Book must be prepared daily showing the date, the account number,
name of the company and the amount.

2) Collection Report will be prepared daily listing the companies to be visited

including the list of payment. This report should be made in 2 copies: the original
will be submitted with the payment and kept by city ledger, while the second copy
will be for Income Audit.

3) Collection problems should be discussed at least weekly.

4) The Credit Manager will send collection letters periodically.

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POLICIES & PROCEDURES

Department : Accounting
Task : CREDIT POLICY

CREDIT POLICY FOR OUTLETS

1) The Cashier should ensure that the charge slip is properly imprinted and signed
by the guest.

2) If settled with an expired credit card, the Head Waiter or Guest Supervisor should
be notified and he should explain to the guest that his/her credit card has expired
or has been recalled, as the case may be. Payment must then be made on a cash
basis. Checks are not accepted as payment in the restaurants or bar unless a prior
arrangement had been made and approved.

3) If foreign currency is used as payment, then the Front Office Cashier should make
the payment manually.

4) Outlet Cashier should check the abbreviation after the guest name before direct
posting to the room. If there is any deviation and the Outlet Cashier is not able to
post the payment directly, then this should be posted manually by the Front
Office Cashier.

5) If the guest prefers the bill to be charged to his/her room, then the Outlet Cashier
should ask for the guest card or room number.

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POLICIES & PROCEDURES

Department : Accounting
Task : CREDIT POLICY

POLICY FOR CASH PAYMENT AT THE OUTLETS

1) Cash payment should be posted immediately.

2) The restaurant check must be presented to the guest for cash payment with the
top copy given to the guest after the payment.

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POLICIES & PROCEDURES

Department : Accounting
Task : CREDIT POLICY

CREDIT POLICY FOR SHOPS / TENANTS

1) Shop rental should be paid by the 10th of each month.

2) New tenants should pay a security deposit equivalent to two (2) months of the
total rent.

3) Telephone and other charges related to the office will be charged at the
beginning of the following month and should be paid before the end of the same
month.

4) If there is a request for a credit facility in the restaurants, then they should be
referred to the Credit Department who will give a Credit Application with the hotel
or property. The credit facility will be extended or denied based on the information
in the credit application.

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POLICIES & PROCEDURES

Department : Accounting
Task : ACCOUNTS RECEIVABLE

INTRODUCTION

Accounts Receivable is the part of the Accounting Department that organizes the
amounts due to the hotel from guests. Accounts Receivable works under the
supervision of the Accounting Division Manager. Accounts Receivable is headed by
an Accounts Receivable Supervisor (CREDIT OFFICER) and is responsible for
keeping records of outstanding accounts and sending statements on a timely basis.

CREDIT PROCEDURES FOR ROOM RESERVATIONS

1) For billing of all new accounts that are not included in the hotel’s accounts
receivable list, prior approval must be obtained from the Accounting Division
Manager.

2) Credit should not be extended to any organization or individual that has an

unsatisfactory history with the hotel or its associates.

3) Letter of Authorization

i. For existing accounts in the Hotel’s Accounts Receivable list: a letter of

authorization for billing purposes must be received prior to arrival unless
approved by the Accounting Division Manager.

ii. For new accounts: a letter of authorization must be requested and

Accounts Receivable must be notified immediately. After checking the credit
worthiness of an account, Accounts Receivable will determine the amount of
credit that may be extended to the account.

iii. Letters of authorization are distributed as follows:

Original Copy to the Accounts Receivable Section.

First Copy to be attached to the registration card.
Second Copy to be retained by the Reservations Department.

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4) A letter of authorization can be accepted only from the organization responsible for
payment.

There will be no exceptions.

5) A letter of authorization should include the following:

Name of Company
Billing Address
Name of Person Authorizing the Billing
Designation
Name of Guest
Period of Stay
Description of Charges

6) Unless listed in the Hotel’s existing accounts receivable list, travel agent
vouchers should be routed to the Accounting Division Manager for approval.

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POLICIES & PROCEDURES

Department : Accounting
Task : ACCOUNTS RECEIVABLE

CREDIT PROCEDURES FOR FRONT OFFICE

1) For billing of new accounts, prior approval must be obtained from the
Accounting Division Manager.

2) Credit will not be extended to any organization or individual that has an

unsatisfactory history with the hotel or its associates.

3) Upon registration, credit approval for accounts receivable must be noted on

registration cards of expected check-ins.

If a guest request accounts receivable billing, front office personnel must

obtain all billing information and forward it to the Accounts Receivable /
Controller for approval prior to acceptance. Upon approval, a Letter of
Authorization is required.

If the guest indicates that the account is to be settled by cash or credit card,
his credit card must be imprinted on the charge voucher. The voucher
should be stapled to the back of the registration card.

In handling a Company Account, the Receptionist should not accept any

credit agreement without approval from the Credit Manager. If the Guarantee
Letter is not available upon check-in, the receptionist should seek the Front
Office Manager's or Credit Manager's approval. If after normal office hours,
and the FO and Credit Manager are not present, then the Assistant Manager's
approval must be obtained.

4) Front Office staff must check that the guest name, street address, company's
name and other information are written legibly on the registration card.

5) Walk In Guest:

Upon registration, a minimum of one night’s deposit is required either by cash

or credit card.

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If the guest does not possess a credit card and pays cash for the one
night deposit, he must be informed that he will not be extended credit and
should pay cash when patronizing the hotel’s facilities unless he maintains a
credit balance in his account.

Travel Agency’s Voucher:

Any voucher presented on arrival without prior approval shall be routed to

Accounts Receivable (Controller) for approval.

Unless approved by the Accounting Division Manager, unknown travel

agency's vouchers should not be accepted for billing.

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POLICIES & PROCEDURES

Department : Accounting
Task : ACCOUNTS RECEIVABLE

CATERING CREDIT PROCEDURE

1) New accounts must be checked by Accounts Receivable (Controller).

2) Accounts Receivable should be notified immediately of questionable accounts

so a thorough credit check may be carried out to clarify doubts.

3) Full deposit is required one week before each of the following functions
unless otherwise approved by the Accounting Division Manager:

Weddings, dinners, cocktail receptions of unverified individuals or

organizations.
Groups that depend financially on registration fees, contributions,
grants, or fellowships.
Any organization or business which has an unsatisfactory financial history
with Continent International.

4) Catering Contract:

The following terms and conditions should be included in a catering contract:

Terms of Payment
The policy of immediate billing shall be applied. The clause, "Immediate
settlement upon presentation of bill," must be on the catering contract that
is to be signed by the organizer.

Billing Address
The billing address should be verified and included in the
contract.

Accountability
Organization and organizer’s name must be legally binding and no
fictitious names are to be used. Companies and societies are registered
and can be checked by Accounts Receivable. The person signing the
catering contract and the bill must be a legal representative of the
company or society and therefore, would bind the organization legally into
paying the bill.

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POLICIES & PROCEDURES

Department : Accounting
Task : ACCOUNTS RECEIVABLE

CREDIT POLICY FOR GROUPS AND CONVENTIONS

1) For billing of all new accounts: prior approval must be obtained from Accounts
Receivable. If in doubt, Accounts Receivable shall be notified immediately so that
a thorough credit check can be carried out to ascertain the credit worthiness of
accounts.

2) For existing accounts: the Sales department should check with Accounts
Receivable for the outstanding balances owed by the travel agent or convention
organizer before extending further credit.

3) Unless otherwise approved by the Accounting Division Manager, full payment is

required for the following groups and conventions:

Group tours booked by unknown entities.

Groups or conventions that are financially dependent on collection of
registration fees.
Organizations that have unsatisfactory history with CHRI or any Hotel under
CHR, or its associates.

If a travel agent or a convention organizer is unable to prepay in full, a legally

binding banker’s guarantee is required.

4) Contract

If credit has been extended, the following terms and conditions must be included in
the contract:

Terms of Payment
A thirty (30) day credit term is normally extended. The Accounting Division
Manager must approve any variations. If full pre-payment is required, then
the pre-payment schedule must be included in the contract.

Billing Address & Contact Person's Name

The billing address and contact person's name shall be verified and included
in the contract. Post Office Box addresses are not acceptable.

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Accountability

To make a contract legally binding, it must include the following:

I hereby agree to the above terms and conditions:

Accepted for and on behalf of the tour Accepted for and on behalf of the
operator/organizer (Hotel Name)

Signature Signature
Print Name: Print Name:
Position: Position:
Name of organization: Name of organization:

Date: Date:

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POLICIES & PROCEDURES

Department : Accounting
Task : ACCOUNTS RECEIVABLE

CREDIT APPROVAL FOR NEW ACCOUNTS

1) Applicants usually submit written requests for credit accounts.

2) An applicant must satisfactorily complete a credit application and include credit

references.

3) The Accounting Division Manager checks the applicant's credentials and

credit worthiness through:

Published lists of bankruptcies and travel agents lists.

Credit reference checks, inquiring through the registry of companies and
business for local accounts, or through firms that offer credit reference
services. For overseas companies credit references would be made through
(name of local reference company).
Audited late accounts.
Legal counselors and advisors.
Credit checks with other hotels.
Any other means that is legal and appropriate.

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POLICIES & PROCEDURES

Department : Accounting
Task : ACCOUNTS RECEIVABLE

CREDIT REVIEW

The credit check reports are produced daily to assist Accounts Receivable in
detecting possible delinquent accounts and taking appropriate action early. These
reports shall be reviewed as prescribed below.

Credit Check Report:

The Credit Check Report (in-house guest outstanding) lists the hotel guests whose
expenditures exceed Rp. 5.000.000.

The Accounts Receivable Supervisor reviews this report daily.

The Accounts Receivable Supervisor reviews and agrees to all the details of the
Credit Check Report (in-house guest outstanding) on the registration card. In
addition, Accounts Receivable must ensure that the billing instructions on the
registration card are updated on the Front Office system especially if one guest
account is to be settled by another guest.

Any exceptions noted (change in method of payment, different credit card to be

used for checking or payment), must be resolved.

The Accounts Receivable Supervisor also reviews the credit check (in house guest
outstanding) report to ensure that the individual hotel guest's expenditure doesn’t
exceed the hotel's credit policies.

If a guest's expenditure exceeds or is nearing the credit limit, the Accounts

Receivable Supervisor shall carry out the appropriate procedure depending on the
mode of payment.

If Payment is by Credit Card

Accounts Receivable obtains additional credit approval from the credit card
company.

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If Payment is by Cash

Accounts Receivable obtains additional cash deposits from the guest.

If Payment is by a Company Account

Accounts Receivable obtains approval from the company to exceed the credit
limit.

Upon completing the credit review procedures prescribed above, the Accounts
Receivable Supervisor signs the reports and sends them with the standard letters to
the Accounting Division Manager for review and subsequent dispatch.

The Accounting Division Manager and General Manager must sign the standard
letters.

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POLICIES & PROCEDURES

Department : Accounting
Task : ACCOUNTS RECEIVABLE

DEPOSIT OF CHECKS

1) The Accounts Receivable Supervisor totals the day’s collection of checks,

bank drafts, and transfers, and ensures that the total corresponds with the total
on the city ledger remittance report (computer reports each printout).

2) The Accounts Receivable Supervisor places one copy of the city ledger
receipts report, the checks, bank drafts, and electronic transfers into an envelope
and deposits the envelope in the depository safe which is controlled by the
General Cashier. One other person must witness the depositing of the receipt's
envelope.

3) The Accounts Receivable Supervisor records the deposit on the cashier deposit
summary and signs it. A witness is required to formally confirm the Accounts
Receivable Supervisor’s entry on the summary.

4) The Accounts Receivable Supervisor retains a second copy of the city ledger
report and the payment advice for filing.

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POLICIES & PROCEDURES

Department : Accounting
Task : ACCOUNTS RECEIVABLE

CREDIT COLLECTION & REMINDER LETTERS

Each month, the system prints a monthly Accounts Receivable Aging Analysis Report.
The Accounts Receivable Officer will update this report manually from the daily
receipts.

The Accounts Receivable Supervisor reviews the updated report daily for delinquent
accounts, and uses an appropriate standard letter to communicate with the customer.

Reminder Letters:

1. Within the first week of a month, following the closing of accounts receivable, the
computer prints standard reminder letters for those accounts which are over 30
days, 60 days, or 90 days old.

2. Reminder letters are submitted to the Accounts Receivable Supervisor who

decides whether to send these letters.

3. Reminder letters relating to Director's accounts should not be dispatched.

Outstanding Directors’ accounts should be brought to the attention of the
Accounting Division Manager for his action.

4. Standard letters are printed in duplicate with the original sent to the customer,
and the second copy filed.

30-day letter - normal mail - to be signed by Accounts Receivable

60-day letter - registered mail - to be signed by Accounts Receivable

90-day letter - registered mail - to be signed by Accounting Division

Manager

Over 90 days- registered mail - to be signed by the General Manager

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POLICIES & PROCEDURES

Department : Accounting
Task : ACCOUNTS RECEIVABLE

LATE CHARGES LETTERS

If late charges are less than Rp. , the hotel would write off the charges. If
the amount is greater than Rp. then a reasonable attempt is made to
recover the balance.

If the guest has a forwarding address, the Accounts Receivable Supervisor

issues a late charge letter requesting settlement. If no forwarding address
exists, then the hotel writes off the charges.

If after 60 days from the issuance of the late charge letter no settlement is
made, the hotel writes off the charges.

All write-offs must be approved by the Accounting Division Manager and

the General Manager.

The Accounts Receivable Supervisor will prepare a monthly listing of all

accounts written off.

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POLICIES & PROCEDURES

Department : Accounting
Task : PURCHASING / LOGISTICS

DEPARTMENT OBJECTIVES

To ensure that purchasing decisions are made in the Hotel’s best interest and free of
influence from personal, private, financial and other considerations.

PURCHASING POLICIES

1. HOTEL SUPPLIERS AND GIFTS TO EMPLOYEES

a) Definition of Suppliers

A supplier is any individual, proprietorship, partnership, corporation, or other

business organization that furnishes or offers any property, goods, rights or
services. The term "supplier" also includes an agent or representative of a
supplier.

b) Employee Relationships with Suppliers

Employees must avoid any direct or indirect interest, financial or

otherwise, or relationship with suppliers that affects the objectivity and
independence of their professional conduct, or which could reasonably be
misunderstood in such a manner as to embarrass the hotel or be financially
detrimental to the hotel's well-being.

The normal policy of the company is not to enter into a supplier contract
with employee-owned businesses. This policy also covers businesses owned
by immediate family members of employees. Where special circumstances
exist, it is the responsibility of employees to make a full disclosure in writing to
the Accounting Division Manager and the General Manager, and to receive
written approval from them.

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c) Definition of Gift

The term gift refers to any tangible item, present, service, purchase at a price
lower than that which is widely available, favorable benefits or any other thing of
value which results in the transfer, either directly or indirectly, from any
present or prospective supplier or customer or any intermediary to any
employee directly or indirectly.

d) Gift Policy

The Company policy is that employees shall not solicit, accept or agree to
accept a gift at any time of the year.

Employees who receive gifts must promptly notify their Division Head and
return the gift to the giver explaining that Company policy prohibits their
accepting gifts.

Employees who receive hampers must send the hampers to the Human
Resource Department for disposal. A letter noting this fact and explaining
the Company’s gift policy must be sent to the donor by the Director of
Human Resources.

If a letter regarding a prohibited gift is necessary, the Accounting Division

Manager should be notified. The notification should include the name of
donor, description of gift, its estimated value, the disposition of the gift and
whether the donor was aware of the Company’s gift policy.

e) Operating Principles

Employees of the Accounting, Purchasing, and Receiving Departments and

other employees determined by the Management, must sign an
undertaking to comply with the hotel’s gift policies.

All purchasing of goods must be centralized at the Logistics Department.

No orders should be placed with suppliers without completed requisition

forms.

The basis for selection of suppliers must be the best price for the best
quality and required quantity of goods supplied. A bidding system should be
used.

Objectivity and a lock of bias must be maintained in the selection of

suppliers.

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f) Tender System for Fresh Food

The tender system is be applied for the purchase of the following categories
of fresh foods:

1. Seafood
2. Vegetables
3. Fruits.

The objective of the system is to encourage more competitive suppliers to

service the Hotel to obtain better "value" in purchases.

On a monthly or quarterly basis, depending on the food item, the three (3)
most competitive regular suppliers should be invited to submit tenders for
the supply of required food items. If regular suppliers are unable to meet the
hotel’s requirements, then "reserve" suppliers should be asked to submit
tenders.

All tenders should be submitted in correct tender documents and addressed

to the Accounting Division Manager.

Based on the tenders received, the Purchasing Manager would award the
contract to the supplier with the lowest quote assuming that the quality,
quantity and delivery schedule of the hotel can be met. The contract
period should be one month for seafood, and quarterly for fruits and
vegetables. The period of the contract depends on the volatility of prices.

After the contract has been awarded and the suppliers are notified, a copy
of the tender document is sent to the Accounting Division Manager for
review to ensure that the contract has been properly awarded. The
Accounting Division Manager checks the:

1) Price paid in the previous contract period.

2) Prices quoted by other suppliers who were not awarded the contract.

g) Supplier Selection

The following procedures should be applied to select and approve new

suppliers. A few suppliers are invited to submit pre-qualifying tenders, and the
Purchasing Committee, which should comprise of the following, makes the final
selection:

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- Food and Beverage Manager

- Executive Chef
- Logistics Manager
- Accounting Division Manager

1) The Logistics Manager conducts a general survey of prospective suppliers

in the market and compiles a list of the more reputable suppliers.

2) The Logistics Manager interviews prospective suppliers and obtains

background information. If possible, references should also be obtained
from other hotels.

3) Tenders must be made on the tender form with reference to the specific food
item.

4) The Logistics Manager conducts an initial review of the tenders received

and presents a short list to the Purchasing Committee for final selection.

5) The selection of suppliers is based on the following:

a. Quality of food supply samples must be tested and approved by the

Chefs.
b. Reputation of the suppliers.
c. Quality of service provided by the suppliers.
d. Ability of suppliers to meet the hotel’s orders on time.
e. Quoted prices.

6) New suppliers are subjected to a trial run for three (3) months, after
which unsuitable suppliers are replaced.

7) A list of new suppliers for each category of food items and their quoted
prices is prepared and copies are distributed to the Logistics Manager, F&B
Cost Controller, F&B Manager and Store.

8) Quotations obtained are kept in the quotations file. Historical data on

purchase price and suppliers should be maintained by food categories.

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POLICIES & PROCEDURES

Department : Accounting
Task : PURCHASING / LOGISTICS

PURCHASE REQUISITIONS

a) Direct Issue Food Requisition

The respective Chefs prepare requisitions for perishables and items not in stock
for the various kitchens.

The Executive Chef who indicates the Account Number for the charges
should approve the food purchase requisitions.

The requisition to be sent to the Logistics Department must be received no later

than 3:00 p.m., for items to be delivered the following day.

b) Store Purchase Requisition (Food And Non-Food)

The Storekeeper checks the stocks daily and determines which items
require replenishment.

Store requests all items according to par stock then forwards the request
to Purchasing.

c) Supplies Requisition

The Division Head must approve requisitions for supplies and individual
departments (including store) should prepare the Purchase Requisition.

d) Capital Expenditure Requisition

The Division Head must approve all capital expenditures and must prepare
the Requisition indicating the account number for the expense.

The Controller then checks the request against that of the approved capital
expenditure budget. If the expenditure is itemized on the capital expenditure
budget, the Controller will note on the requisition that the expenditure complies
with the approved budget.

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If an item does not comply with the approved capital expenditure budget,
the Accounting Division Manager investigates the justification for the variance.

Capital expenditures approved by the Controller must be sent to the

General Manager for approval.

Upon approval of the General Manager, Purchasing prepares the Purchase

Order.

This is signed by the Logistics Manager, then by the Controller then by the General
Manager before the Purchase Order is sent to the supplier.

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POLICIES & PROCEDURES

Department : Accounting
Task : PURCHASING / LOGISTICS

PURCHASE ORDERS

a) Direct Issue Food Requisition

The Logistics Department places orders verbally with selected suppliers. The
suppliers and purchase prices are recorded on the food requisition request.
Copies of the Purchase Orders are sent to the Receiving Department to await
receipt of the goods.

b) Store Purchase Food Requisition

The requisitions that are approved by the Department Head must be received
from Store before any orders are placed.
Orders are made verbally and the names of suppliers recorded on the store
purchase requisition. Orders are placed only with approved suppliers.
Any change in suppliers or purchase price is noted on the store purchase
requisition and a copy is returned to the store.

c) Store Purchase (Non-Food), Capital Expenditure, and Other Supplies

When appropriate requisition are received, the Purchasing Department assigns

them a number and the requisition is registered.
The Logistics Manager enters the names of the suppliers and prices of items
ordered on the requisition. The Logistics Manager must be aware of current
market prices of all frequently ordered items to ensure that suppliers' prices do
not vary greatly.
If items requested have not been previously sourced, a minimum of three
(3) quotations must be obtained and a supplier chosen based upon their ability
to meet required quality, quantity, and price specifications.
When approvals have been obtained, the Logistics Manager prepares the
Purchase Orders and obtains approval from the Controller.

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Purchase orders should be distributed as follows:

* First copy Supplier
* Second Accounts Payable Supervisor.
copy
* Third Purchasing Department as a control for
copy outstanding orders.
* Fourth Department that requests the purchase.
copy
* Fifth copy Receiving Department.

When the receiving report is obtained from the Receiving Department, the
outstanding purchase order is updated. Completed purchase orders are
removed and filed in individual supplier files.
The Purchasing Department must follow-up on all partial deliveries.
When invoices for non-food stock items are received from the receiving or
Accounting section, these invoices should be checked to ensure that the goods
have been received. Once receipt has been approved, the invoice is signed
by the Purchasing Manager and then sent to the Accounting Department.

d) Cash Purchases

The Purchasing Manager maintains a petty cash fund that is used to purchase
only the miscellaneous items ordered that cannot be obtained from regular
suppliers. The petty cash must be kept on the imprest system. The petty cash
float amount is determined by Management and is currently set at Rp. 3 Million.
Purchase of non-supplier items must not exceed at any time the limits set
by Management.
Claims for petty cash reimbursement should be made on a petty cash voucher
that must be approved by the Purchasing Manager. Such claims should not
exceed the fund. Claims for petty cash reimbursement must be supported by
a petty cash voucher, receipt or invoice, and sent to the Accounting
Department with the reimbursement request.
Petty cash disbursements should be summarized by expense code.
Once payment is made, the voucher and support documents are stamped "paid"
and filed by the Accounting Department.

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POLICIES & PROCEDURES

Department : Accounting
Task : F & B COST CONTROL

OBJECTIVES

The main objective of the F&B Control (Cost Controller) is to assist in controlling
the cost and inventory of food and beverage items. The main functions of the F&B
Cost Controller are:

1. To ensure that goods have been received and at the correct prices.

2. To present timely reports on the daily and monthly F&B costs of the various
outlets.

3. To maintain proper inventory control over F&B and operating supplies and
ensure compliance with the Hotel's policies and procedures relating to
purchasing, receiving and issuing of such items.

4. To carry out regular stocktaking of F&B and operating supplies.

5. While the Cost Controller is not responsible for F&B costs, it is the
Controller's responsibility to identify which outlets are incurring high F&B cost and
to assist the F&B Manager to investigate reasons for such deficiencies and
institute corrective measures.

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POLICIES & PROCEDURES

Department : Accounting
Task : F & B COST CONTROL

PROCESSING OF F&B INVOICES

F&B invoices are sent to the Cost Controller to ensure that:

Invoices are processed only for items that have been received;

That requisitions for such items have been authorized;

And procedures followed correctly.

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POLICIES & PROCEDURES

Department : Accounting
Task : F & B COST CONTROL

DIRECT ISSUE FOR FOOD ITEMS

1) Daily records from the Receiving Department should be checked against suppliers’
invoices.

2) The Cost Controller or Cost Control Staff must check the unit cost stated on the
invoices against approved price listings that are obtained from Purchasing.
Receiving checks invoices for arithmetic accuracy and for acknowledgment of
delivery.

3) If discrepancies occur, the Cost Controller checks prices with the suppliers and the
Purchasing Manager. If suppliers have over charged, the Cost Controller prepares
the request-for-credit memo. Invoices must be adjusted to the correct price before
payment is made.

4) If the unit costs of items are not as stated on the approved price listing, invoices
must be routed back to Purchasing for their approval and confirmation of
transactions and purchase price. Purchasing should record their approval on the
invoices. Where differences arise, the cost controller notes the correct amount
on the invoice and obtains a credit memo for the difference from the supplier.

5) The Cost Controller must approve all invoices before they are sent to Accounts
Payable.

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POLICIES & PROCEDURES

Department : Accounting
Task : F & B COST CONTROL

STORE PURCHASE FOR FOOD & BEVERAGE

1) The Cost Controller must check invoices received from the Store for accuracy.
Prices must also be checked against the approved price listing to ensure that
suppliers have charged correct prices.

2) The Receiving Department must check invoices for proof of receipt of the goods.

3) Invoices must be approved by the Cost Controller, and then sent to Accounts
Payable for processing.

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POLICIES & PROCEDURES

Department : Accounting
Task : F & B COST CONTROL

DAILY STOREROOM ISSUES FOR FOOD & BEVERAGE

1) Storeroom Food Requisition forms that the Cost Controller receives from the
Store are checked to ensure that they have been authorized and that the kitchen
concerned has received the goods.

2) Unit costs stated on storeroom requisitions are checked against the unit costs on
approved price listing. Where differences are noted, clarification is sought from
Storekeeper. The Cost Controller also checks the arithmetic on the storeroom
requisition.

3) F&B bin cards should be updated with the quantities of the issued items, and used
as a check against physical count quantities.

4) The total value of food issued to various outlets should be summarized on the
Daily Food Report.

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POLICIES & PROCEDURES

Department : Accounting
Task : F & B COST CONTROL

DAILY REPORT ON FOOD & BEVERAGE COST

The Cost Controller is responsible for providing costs of F&B consumed daily and
incorporating them in the Daily Sales Report (Daily Flash Cost).

1. Food Cost
The two main components for the cost of food consumed daily are direct issue
and storeroom issue (storeroom requisition).
The cost of direct food issues is obtained from the daily receiving record of
food purchased.
The cost of food that the Store issues to the various outlets is obtained from the
daily food storeroom issues.

2. Beverage Cost
The daily issues of beverage items to the various bars and outlets are recorded
on the daily record of beverage purchased and issued.

3. Credit to Food & Beverage Cost

Food costs described in this section are not included in the cost of sales as there is
no matching revenue. These costs are included in the operating costs under the
following headings:

a) Complimentary Fruit Baskets - Requisitions for fruit baskets are made using the
direct issue food requisition. The cost of complimentary fruit baskets is charged
to the room's expenses.

b) Staff Meals - Food issued in the staff canteen is charged to staff meals as an
operating expense, according to information obtained from the daily direct
issues and daily food storeroom issues.

c) Officers Checks - Officers Checks refer to charges for meals consumed by

Senior Managers who have privileges at the various outlets. Officers Check
forms are used to document these meals. The costs of Officers Checks are
charged as staff meals.

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d) Entertainment Checks - Entertainment Checks refer to charges for F&B

consumed by Senior Managers and their business guests during the course of
their duties in the entertainment of clients (government, travel agents, etc.).
Entertainment Checks forms are used to document these expenses. The costs
of Entertainment Checks are charged as entertainment expenses.

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POLICIES & PROCEDURES

Department : Accounting
Task : F & B COST CONTROL

STOCKTAKING

1) The Cost Controller must ensure that stocks are counted regularly and that stock
records are accurately kept so that they reflect the physical quantities of stock on-
hand.

2) In beverage outlets and kitchens, Stocktaking determines the cost of sales.

3) Frequency of Stocktaking should be done as follows:

F&B store Monthly

F&B kitchen Monthly
Beverage: Liquor and Wine at outlet Monthly
Room, F&B and General Supplies Monthly
Room, F&B Operating Equipment Every six (6) months

4) Storekeepers, Outlet Managers, and Kitchen Sous Chefs complete monthly

stocktaking.

5) Cost Controller, Storekeeper, Stewards and Outlet Managers should conduct

stocktaking of F&B Operating supplies.

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POLICIES & PROCEDURES

Department : Accounting
Task : F & B COST CONTROL

STOCKTAKING PROCEDURES

1. Physical Count of F&B and General Store

a) The Cost Controller should sign quantity counts on the stock cards (bin cards).
b) Quantity counts should also be recorded on a stocktaking sheet.
c) The Cost Controller and Storekeeper should be involved in stocktaking.

2. Physical Count of Food Items in Kitchens

a) The Sous Chef works with the Cost Controller to complete the stocktaking.
b) The physical count or weight of items are recorded on stocktaking sheets. The
Sous Chef countersigns the stocktaking sheet.
c) The Cost Controller evaluates the stocks.

3. Physical Count of Beverage Items at Bar Outlets

a) Bartenders must accompany the Cost Controller during stocktaking.

b) Quantities of liquor and wine are measured to one-tenth of a bottle.
c) Differences between physical count and stock analysis bin cards should be
summarized into a short report that is distributed to the following:
1. Purchasing
2. Accounting (Controller)
3. Cost Controller
d) The Purchasing Manager and the Storekeeper must investigate differences and
provide explanations for their occurrence. Copies of these reports should be
sent to the Cost Controller and the Accounting Division Manager.

4. Control Over Slow Moving Stocks

a) Guidelines should be set to identify slow-moving goods - for example: Items that
have not moved for more than three months should be considered slow moving.
Consideration of shelf life and the quantity of stocks-on-hand should be taken
when setting guidelines.

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b) Slow-moving stocks should be identified in the stocktaking.

c) The Storekeeper and the Sous Chefs should be notified of slow - moving
stocks and they shall follow up with the user department to clear the stocks.

d) Where necessary, slow-moving stocks may also be highlighted at the weekly

F&B meeting.

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POLICIES & PROCEDURES

Department : Accounting
Task : CASH ADVANCED / PAID OUT

DEPARTMENT OBJECTIVES

1) The cash advanced/paid out should not be considered as a right but as a service to
the guest, to enable them to meet minor payments, e.g. taxi, stamps, etc.

2) The cash refunds, paid out to the guests are only for the balance of his/her prepaid
advanced deposit.

3) The exchange of credit cards for cash is strictly prohibited. Any employee doing
so will be responsible for the refund of the full amount to the hotel if the credit
card is found to be invalid.

4) All Cash Advanced / Paid Out Vouchers must be approved by an authorized

person.

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POLICIES & PROCEDURES

Department : Accounting
Task : CASH ADVANCED / PAID OUT

CASH ADVANCED TO GUESTS

1) Cash Advances extended to the guest at their request, are extended as a service to
them. Cash Advances are not considered a loan to the guest.

2) Cash Advances to the guest should be restricted to Rp. 100.000.

3) Cash Advances to the guest not exceeding Rp. 100.000 must be approved first
by the FO Supervisor before making the cash payment to the guest. The approval
must be in writing on the “Paid Out Voucher.”

4) If the Paid Out is more than Rp. 100.000 but less than Rp. 200.000, it must be
approved by the FO Manager or in his absence, the Assistant FO Manager. The
voucher must however, be presented to the FO Manager for his/her counter
signature as soon as possible.

5) Cash Advance exceeding Rp. 200.000 must be duly approved by the FO

Manager and countersigned by the General Manager as soon as possible but not
later than the next day.

6) A 5% surcharge is to be levied on Cash Advanced to the guest who settles his

account by approved credit card. In this instance, two sets of vouchers must be
prepared. One for the Cash Advance, and the other a “Miscellaneous Voucher” for
the 5% surcharge on the cash advance.

7) The Cashier should ensure that receipt of all Cash Advance made to guests are
duly acknowledged by the guest concerned. This must be evidenced in writing by
the guest signing the paid out and miscellaneous vouchers.

8) Cash Advances made to guests must be posted immediately to the guest folio.

9) Failure to comply with these instructions will render the Cashier liable to make good
if these Cash Advances cannot be recovered from the guests.

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POLICIES & PROCEDURES

Department : Accounting
Task : CASH ADVANCED / PAID OUT

PAID OUT VOUCHERS

1) Paid Out Vouchers must be prepared by the Cashier in support of any cash
advances made to guests. The following details must be duly stated there on:

a. Date
b. Name of Guest
c. Room Number
d. Amount in Local Currency
e. Explanation for Advance
f. Signature of Guest
g. Signature of Approving Officer
h. Signature of Cashier

2) The Original voucher will be kept together with other checks and vouchers in the
Guest Folio. All duplicate vouchers should be forwarded to the Night Auditor at the
end of the shift.

3) Paid Out Vouchers must be issued in strict numerical sequence, and only one book
should be in used at any one time.

4) The FO Manager, Assistant FO Manager or the Duty Manager must duly authorize
all cancelled vouchers and amendments to the voucher by signing the vouchers.

5) The approving officer should ensure that the adequate explanations for the
cancellation or alteration of vouchers are stated clearly on the voucher and
duly initiated by the Cashier concerned.

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POLICIES & PROCEDURES

Department : Accounting
Task : CASH ADVANCED / PAID OUT

REFUND OF CREDIT BALANCE TO GUESTS

1) Refund of Credit Balances (for Personal Account Only) to guests must be effected at
the time the guest checks out and upon their request only.

2) Refund of Credit Balances (for Other Accounts) to guests must be effected through
city ledger by the Accounting department and not by the Cashier at the front desk.

3) Refund of Credit Balance (for Personal Account Only) to guests must be supported
by paid out vouchers and a copy of the folio, and duly approved by the Duty
Manager or FO Manager/ Assistant FO Manager.

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POLICIES & PROCEDURES

Department : Accounting
Task : FOREIGN CURRENCIES AND TRAVELLER’S CHECKS

DEPARTMENT OBJECTIVE

To ensure that proper procedure are laid out for the exchange of foreign currencies
and traveller’s checks in the hotel.

GENERAL PROCEDURES

1. Exchange Rate of the foreign currency and traveller’s checks to local currency is
provided as a service to hotel guests only. Front Office staff should establish the
guest’s identity and room number before effecting any foreign currency or
traveller’s cheques transactions.

2. Settlement of guest account in cash must be effected in local currency only.

Therefore it is essential that all foreign currencies or traveller’s checks accepted
in settlement of guest accounts should be converted into local currency before
accepting them for payment.

3. All transactions conducted for exchange of foreign currencies and traveller’s checks
must be supported by a “Foreign Currency Exchange” form.

4. There will be instances where guests may insist on paying by foreign currencies or
traveller’s checks. In such instances, the Front Office staff must obtain the approval
of the Front Office Manager/Assistant Manager before he/she exchanges the
foreign currency, and must also prepare the Foreign Currency Exchange voucher.

5. No foreign currency or travellers’ checks can be accepted by the Food & Beverage
outlets. Some guests may insist on paying by foreign currency or traveller’s
checks. In such instances, the Front Office cashier must obtain the approval of
the Duty Manager before he/she effects the foreign currency exchange.
Procedures for converting must be observed. The cashier can go personally to the
Front Office to do the exchange if it is required, or need a waiter or waitress to do so
on in behalf of the guest.

6. No foreign currency coin is accepted.

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POLICIES & PROCEDURES

Department : Accounting
Task : FOREIGN CURRENCIES AND TRAVELLER’S CHECKS

FOREIGN CURRENCY EXCHANGE VOUCHER

1. All transactions conducted for the exchange of foreign currencies and traveller’s
checks must be supported by a “Foreign Currency Exchange” form (Forex form).

2. The Forex form must be prepared in two copies and include the following details:
Date
Name of Guest
Room Number
Country of Issue
Amount in Foreign Currency
Exchange Rate
Amount in Local Currency
Signature of Guest
FO Cashier’s Name
Serial Number

3. The Forex form must be prepared at the time the Cashier receives the foreign
currency or traveller’s checks from the guest. All foreign currency and traveller’s
cheques in the custody of the Front Office staff must be supported by the vouchers
at all time.

4. A separate form must be used for each guest. The Front Office staff should not
add the exchange amount of two or more guests into one Forex form.

5. All unused lines on the form must be cancelled immediately by drawing a line
across the next line after the last entry and diagonally across to the bottom of the
voucher.

6. The original copy of the form must be given to the guest.

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POLICIES & PROCEDURES

Department : Accounting
Task : FOREIGN CURRENCIES AND TRAVELLER’S CHECKS

PAYMENT BY TRAVELER'S CHECKS

Traveler’s checks may be accepted as payment of guest accounts or in exchange for

local currencies. They are as good as cash if cashed by the rightful owner. If a guest
wishes to pay by traveller’s cheques, the following procedures must be observed:

1. Front Office staff must ensure that the guest’s name and room number agree with
that on the computer screen or his/her registration card.

2. Front Office staff must ensure that the guest countersigns the traveller’s checks in
his/her presence. This signature should match before accepting the traveller’s
checks for exchange. If the signature does not match, the Front Office
Manager/Assistant Manager must be informed.

3. When the guest has already countersigned traveller’s checks, request the guest to
sign again on the back of the check and compare to signature. If the signature does
match, inform the Front Office Manager/Assistant Manager immediately.

4. Request the guest for his/her passport politely and establish positive
identification by checking the photograph and signature on the passport. Explain
to the guest tactfully that this procedure is necessary to protect him/her against
unauthorized use of his/her traveller’s check.

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POLICIES & PROCEDURES

Department : Accounting
Task : GUEST DEPOSITS

DEPARTMENT OBJECTIVE

To ensure that proper procedures laid out for the receipt of advance deposits and
prepayment from the guest before check-in.

PROCEDURES FOR DEPOSITS

1) When a guest checks-in with light luggage or without any luggage at all, it is the
hotel’s policy to obtain an advance from the guest if he/she is paying in cash. The
amount is US $ 250 per day.

2) If the mode of payment is by credit card, the Front Office staff should ensure that an
imprint of the credit card is made and signed by the guest. Approval from the credit
card company for all these transactions must be obtained.

3) All deposits received by the Cashier should be posted to the guest folio immediately
and a copy of the guest folio should be given to the guest as acknowledgement of
the deposit received. A Miscellaneous Voucher will be issued as proof that
prepayment has been received and recorded.

4) The Credit Officer will print a High Balance report daily, highlight those accounts
that have to be monitored and hand this report to the Front Office Manager for
further action. The Front Office Manager together with the FO Supervisor will follow
up to ensure that those paying cash should always have an adequate Credit
Balance in their accounts.

5) If at the time of checkout, the guest desires to stay on, a fresh advance will have
to be taken from him/her.

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POLICIES & PROCEDURES

Department : Accounting
Task : GUEST DEPOSITS

PROCEDURES FOR PREPAYMENT

1) Prepayment is monies received in advance before the arrival of the guest.

2) These prepayments should be channeled to the Accounting Department that will

prepare a “Guest Prepayment Form” in support of such prepayment.

3) The Accounting Department shall then forward these prepayment forms to the
Reservations Office that should, upon receipt, proceed to make the necessary
reservations, if no previous reservation had been made. After this is done, the
Accounting Department has to post the prepayment to the guest account or folio.

4) The guest concerned must settle any remaining debit balance on the guest folio
upon check out.

5) No refund of prepayment made by a Travel Agent, Airline or company should be

given to the guest. Any refund of prepayment or unused balance, if any, will be
made directly to the Travel Agent, Airline or Company by the Accounting
Department.

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POLICIES & PROCEDURES

Department : Accounting
Task : OFFICERS CHECKS

DEPARTMENT OBJECTIVE

To ensure that proper procedures laid out for the signing of Officer's Checks by the
Hotel Executives, are adhered to by all staff concerned.

Hotel Executives are only authorized to sign on the Officer's Checks when on duty. The
only exception will be the Executives who are living in the Hotel. The Officer’s Checks
can only be used for food and soft drink consumption.

PROCEDURES

1. Separate lists of Hotel Executives authorized to sign the Officer’s Checks will be
maintained and compiled by the Accounting Department with the General
Manager’s approval. The list will be revised from time to time.

2. Three lists of Officer’s Checks Entitlement shall be kept:

a. Officer’s Check list 1
b. Officer’s Check list 2
c. Officer’s Check list 3

3. Officer’s Check list 1 will contain the names of executives who are authorized to
sign in all outlets, they are the:
a. General Manager
b. Accounting Division Manager
c. Director of Human Resources
d. Director of Sales
e. Executive chef

4. Officer’s Checklist 2 will contain the name of executives who are entitled to sign in
only one or a select few outlets. Persons usually authorized by the General
Manager to do so could include the:
a. Front Office Manager
b. Housekeeping Manager
c. Assistant Chief Accountant
d. Purchasing Manager
e. Senior Sales Manager.

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5. Officer’s Checklist 3 will contain the name of musicians who are entitled to sign
in the bar/lounge only. These musicians can only consume soft drink when on
duty.

6. Please ensure that the Officer’s Check is signed before the Officer leaves the
outlet.

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POLICIES & PROCEDURES

Department : Accounting
Task : PERSONAL CHECKS

DEPARTMENT OBJECTIVE

To spell out the procedures to be followed by all concerned regarding the acceptance
of Personal Checks, especially for the Front Office and Food & Beverage Cashiers.

PROCEDURES

1. No Personal Check is to be accepted in settlement of the hotel bill or in exchange

of cash.

2. However, under “exceptional circumstances” i.e. when a guest has no other

means of payment, a Personal Check can be accepted. In such cases, the standing
instructions must be strictly observed.

a) Any acceptance of a Personal Check for payment of the hotel bill must be duly
approved by one of the following:

General Manager
Accounting Division Head / Assistant Chief Accountant
Front Office Manager / Assistant Manager
F&B Manager

Authorization must be in writing, and done by one of the above executives by

signing on the reverse side of the check.

b) The officer in charge shall approve only if the guest is found to be credible, or
through an evaluation of the guest’s credit worthiness.

c) A check presented for the payment of charges will be accepted only for the
amount of the bill. Without any exception, no cash is to be given out for
Personal Check received.

d) A check with an amendment or alteration will not be accepted. For post dated
checks, please request the guest to issue a fresh check in your presence.

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e) Check the legibility and accuracy of all written information on the check.
Signature must be legible or guest concerned must write his/her name (in
block letters) under the signature. Verify that the figure and amount written in
words are the same.

f) The signature on the check must match the signature on the registration card
or other acceptable identification (such as passport), if available. If they do not
match, reject the check and ask the guest to sign a new one, then name, full
address, passport/identity card number and guest folio/check number must be
clearly stated on the reverse side of the check.

g) Third party checks are not acceptable. All checks must be payable to the
Hotel or Company name. Without any exception, the maker (drawer) of the
check must issue the checks in your presence.

3. Executives are not allowed to cash cheques unless the General Manager or
Accounting Division Head has approved the transaction.

4. Foreign Checks are not acceptable.

5. Failure to comply with any of these instructions will render you liable for any losses
sustained by the Hotel.

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POLICIES & PROCEDURES

Department : Accounting
Task : PHYSICAL INVENTORY

OBJECTIVE

To ensure that monthly inventories are conducted on food, beverage and operating
supplies.

PROCEDURES

1. Cost Controller

a. Coordinate schedule of inventory with the Department Heads concerned.

b. Release the final schedule of inventory and inventory forms to be used.
c. Assigns representative from Accounting department to conduct the inventory.
d. Assigns Department Heads to witness the inventory.
e. Evaluates report and ensure the accuracy of the inventory report before
summarizing all the reports for the month end closing.

2. Department Heads

a. Assigns staff to assist in the inventory.

b. Witnesses the inventory and gives feedback to the Accounting Department Head.

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POLICIES & PROCEDURES

Department : Accounting
Task : REBATES

DEPARTMENT OBJECTIVE

To define which persons are authorized to sign Rebate vouchers, and the
circumstances where Rebates can be authorized. It is important that efforts are made
to maximize revenue by rebating only when an error has been made, or when it is
absolutely necessary to maintain large customer accounts.

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POLICIES & PROCEDURES

Department : Accounting
Task : REBATES

REBATES AT THE FRONT DESK FROM GUEST LEDGER

Upon receipt of a complaint of the guest, or identification of an inadvertent

overcharge, the Front Office Cashier will assess the situation to determine if the rebate
is appropriate. When in doubt, the Front Office Cashier Supervisor is to be consulted.
The Front Office Manager, Manager on Duty or Assistant Manager should be called to
handle the case.

In the case of F&B revenue, F&B Manager must authorize rebates. The guest must
always sign the rebate voucher.

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POLICIES & PROCEDURES

Department : Accounting
Task : REBATES

REBATES FROM CITY LEDGER

a. Room - Transient
Must have the approval of FO Manager

b. Room - Group
Must have the approval of Director of Sales and FO Manager

c. Food & Beverage

Must have approval of F&B Manager

d. All Incidental Charges

Must have approval of the Accounting Division Head

The only exception to the above will be rebate due to errors with contract rates on rooms
and food & beverage. If a rate is billed incorrectly and not in accordance with the
prevailing contract, the Credit Officer will prepare the rebate with the proper
explanation and send it to FO Manager, Accounting Division Head and General
Manager for approval.

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POLICIES & PROCEDURES

Department : Accounting
Task : INTERNAL AUDIT CHECKLIST

OBJECTIVES

The Objectives of providing the Internal Audit checklist are as follows:

1. To make sure that Management of the Hotel operates the Hotel according to set
Policies and Procedures.
2. To make sure that Management of the Hotel implements the Internal Controls.
3. To make sure that Management of the Hotel operates the Hotel very efficiently.
4. To make sure that Management of the Hotel maintains the Standards of Quality.
5. To make sure that all staff of the hotel are working as per their Job Description.
6. To constantly improve Internal Controls.
7. To give warranty to the owner that the Management of the Hotel maintains their
assets tightly.
8. To make sure that the owner feels secure with their assets.

PERSONS RESPONSIBLE FOR THE CHECKLIST

A. Front Office Checklist

Front Office Manager or Assistant Front Office Manager

B. Food & Beverage Checklist

Food & Beverage Manager or Assistant Food & Beverage Manager

C. Point of Sale Checklist

Income Auditor or Night Auditor

D. Housekeeping Checklist
Executive Housekeeper or Assistant Executive Housekeeper

E. Purchasing / Receiving Checklist

Chief Accountant or Cost Controller

F. Accounts Receivable Checklist

Financial Controller or Assistant Financial Controller

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G. Accounts Payable Checklist

Financial Controller or Assistant Financial Controller

H. Payroll Checklist
Financial Controller or Assistant Financial Controller

I. Store & Issuing Checklist

Financial Controller or Assistant Financial Controller

J. General Accounting Checklist

Financial Controller or Assistant Financial Controller

CONDUCTING THE AUDIT CHECKLIST

The persons responsible for the checklists mentioned above should conduct the audit
checklist by observing the activity of his department and ticking off his observations on
the checklist in the next section of this manual. He either indicates a yes or a no in the
area provided in the checklist.

If the activity is a match with the command stated in the list, then he should tick a "yes".
Otherwise, he should tick a "no". He can then provide his comments in the column
provided in the list for his observations.

SCHEDULE OF THE CHECKLIST REPORT

The checklist report should be submitted to the Corporate Office every three (3)
months.

INTERNAL AUDIT BY THE CORPORATE OFFICE

The corporate office will double check and make sure that the report sent is accurate.

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ACCOUNTING DEPARTMENT

FORMS

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ACCOUNTING DEPARTMENT

AUDIT CHECKLIST

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