isa on sales & receivable

Step Reference:2400-1

Paper File? Yes

Entity Name: MV Reethi Rah Resort Private LimitedEngagement Name: MV Reethi Rah Resort Private Limited - 2009 Completed By:Rajith Nuwanpriya/LK/ABAS/PwC 01/28/2010

Period End: 12/31/2009 Reviewed By: Jatindra Bhattray/LK/ABAS/PwC 02/13/2010

Status: ReviewedTitle: (ISA 315, 330, 500) Understand and evaluate control activities: Revenues and Receivables Process

Details

Tailored Procedures

Results:

Understanding and evaluation of control activities

1.Room revenue

One&Only Reethi Rah is home to 130 private villas discreetly placed along the shore – with 98 Beach Villas secluded by lush tropical greenery,and 32 Water Villas set above the clear, protected waters of the lagoon. Among the largest resort villas in the world, each is detached, expansiveand equally luxurious. Room charges range from US $ 800 to US $ 6,500, which will vary between the seasons. 65% of the revenue to the totalrevenue is contributed by accommodation income. "OPERA" on-line reservation system is used by the Company for accommodation income.

2. Outlet revenue (Dining)

One&Only Reethi Rah mainly has four outlets to provide dinning services to the guests, which are Reethi Restaurant, Tapasake, Fanditha and Rah bar.Villa dinning service is also available to provide villa dinning services to the guest. "MICROS" software is used in all the outlets to record outlet revenue.Further, "MICROS" has interface with "OPERA" system. Outlet revenue contributes 20% to the total revenue of the resort.

3. Other revenue

Boutique, SPA, transport, sports & recreation and other income contribute 3%, 4%, 5%, 2% and 1% of the total revenue respectively .Reethi Rah Boutique outlet mainly sells Maldivian souvenirs and valuable gift items. SPA provides beauty studio, fitness centre, Yoga and

wellness journeys. The resort transfers the guest from Male' airport to resorts via sea and air. For which, guests are charged US $ 260 + 10% fuel chargefor adults and US $ 130 + 10% fuel charge for children per trip. Sports & recreation income is generated by land sports, water sports, excursions and tennis.Other revenues mainly include staff shop and staff bar. Except SPA, "MICROS" system is used to record the revenue at each serviceoutlet. "SPA SOFT" is used in SPA to record revenue which has interface with "OPERA" on line system.

1. Rooms rates, applicable to travel agentsSales and Marketing department and sent to the reservationscredit management cycle for rates process

2. Reservations staff enters the room rates into the system

Start

1

Rooms rates are applicable totravel agents & others

customers are decided by theS&M dept and sent to the

reservations

Refer sub-processes

“Rates”

2

Reservations enters the ratesinto the system

Refer sub-processes

“Rates”

3

Reservations’ staffs enter thereservation details to the front

office system

Receive thereservations through

travel agent anddirectly

Front officesystem (“Opera”)

Room Revenue Cycle

3. Guests can make an early reservation via travel agentsCentral) Kerzner InternationalWebsite / e-mails. Once reservation is approved by Reservation ManagerConfirmation of reservation letter and request for credit card number are sent tocustomers via e-mail. Booking is guaranteed on the receipt of credit Card number andsecurity code from the customer

2

3

Reservations’ staffs enter thereservation details to the front

office system




Guest check-In

4

Registration cards for all thecheck-ins at the time of

check-in are printed

Registration cards

Registration cards

Mark the check-in time in theregistration card & signed bythe guest & the front officemanager and enters thedetails in the front office

system.

5



Night audit process takesplace & recognize the roomrevenue for the respective

date.

6

Guest ledger

the guests, check-in and checksystem.The Company enters into contract with tour operatorsthe Director of Sales and Marketingroom is confirmed before signing of the contractOnce the reservations are confirmedto the front office system ‘OPERA’(block) the rooms and prepare check

4. When the guests walk- into the front officesystem and print the Registration card forms

5. Registration card is signed by the guest and handed over to the Front officeRegistration card is signed by Front Office Manager or assigned official and guestprofile is updated by front office staff after acknowledgement of Front Office Manageror assigned official. If the guests come via travel agenttravel agent for the room charge on the same day of arrival of the guest

6. Night Audit Process takes place every day and once the process is runoccupied room folios is charged and the revenue is recognized in thefollowsRoom folio number Dr

Room revenue Cr


Night audit process takesplace & recognize the roomrevenue for the respective

date.

6

Guest ledger

At the time of Guestcheck-out


Guest directed by atravel agent

NoPrint a folio information bill for

both room charges & otherservices consumed & obtain

guest acknowledgement

8

Folio information bill forboth room charges &

other services (1)

Print a folio information bill forroom charges & otherservices consumed

separately

7

Yes


Folio information billfor room charges (2)

Folio information billother servicesconsumed (3)


other services (1)

Folio information bill

Any disputesin billing

Reconfirm with therelevant restaurant

bills, bar bills etc andconfirm/correct the

charges accordingly

If the dispute cannot beresolved, reverse the revenuefrom system with the approval

of proper official

Yes OR

In "ACCPAC"Guest ledger Control A/C - Dr

Room revenue A/C - CrDuring night audit process, night auditor checks the following transactions in the frontoffice system ("OPERA"),

Reservation correspondence of guests with the amount charged in the system

Daily check-in and check-

Bed tax calculation

7 & 8. At the time of Check-outfolio information bills for (a)generated and only (b) is forwarded for guest acknowledgement because the roomcharges are borne by the travel agentIf the guest is not directed by a travel agentroom charges and other services rendered are printed and forwarded for guest’sacknowledgement.If the guest agrees with the particulars of the bill hecard, etc as the acknowledgementDouble entry in "OPERA and ACCPAC

services consumedseparately

7

system (“Opera”)Folio information bill

other servicesconsumed (3)


other services (1)

Folio information billother servicesconsumed (3)

Any disputesin billing

Reconfirm with therelevant restaurant

bills, bar bills etc andconfirm/correct the

charges accordingly

If the dispute cannot beresolved, reverse the revenuefrom system with the approval

of proper official

9

Yes OR


Credit approvedguest

No

Raise the invoice in 2copies on receipt of thepayment & handoverone copy to the guest

11

Guest ledgerinvoiceNO

Billing voucher (ifguest \is directedby a travel agent)

Authorized letter,if the guest is acooperate guest

Yes

Citi ledger

Guestledger

Front office cashierselects the payment

mode as citi

10

Citi ledger

Citi ledger

Citi ledgerinvoice

Finance dept openreceivable accounts forcredit guests and printthe citi ledger invoice.

12

10

Refertreasury

processes

City Ledger A/C - DrRoom folio/Guest ledger - Cr

If the settlement is done by guestCash A/C - DrRoom folio/Guest ledger - Cr

9, 10 & 11.If there is any dispute of the bill the front office Cashier reconfirms withrelevant restaurant & bars and solve it immediatelyrebate the revenue from the system with approval of Front office manager or assignedofficial. The guests are charged only for agreed amount and the billing process takesplace the normal way.

Upon receiving the acknowledgement from the guest the Cashier check whetherhe/she is a credit approved guest or not and if the guest is entitled for credit heshould have the travel Agents voucher or email correspondence as to confirm that andafter checking the said documents the Cashier selects the settlement mode as Citi andprint a folio invoice.If the guest doesn’t have credit approval the Cashier generates the folio invoice in twocopies and hand over one to the guest

12. Once the folio invoices are sent to the accounts department every day

Citi ledger

Citi ledger

Citi ledgerinvoice

Finance dept openreceivable accounts forcredit guests and printthe citi ledger invoice.

12

Send the citi ledgerinvoices to the

customer

Swift copy forpayment

AR raises thereceipt through the

system

13

Receipt for thepayment

Receipt for thepayment

AR credits the guest’sindividual receivable

amount with the receiptamount

14

Citi ledger

End

Accounts Department opens individual receivable accounts for each travel and systemautomatically passes the credit room folio and debits the account citi ledger and raisesCiti Ledger Invoices.Credit Manager or AR Assistant tallies the manual invoice with Citi Ledger Invoicethere is any discrepancy such as excess or deficitManager.

13. Upon receiving the payment by bank transfer advice the Cashier raises a Receiptthrough system.Bank A/C - Dr

Travel agent or Citi ledger A

14. When cashiers raises the receipt though system

End

Business Process:

Ref.No.

Sub-process/Transac-

tion

Description of control activity, including its objective Informationprocessingobjective

C, A, V, R

Contribution toFinancialStatementassertions

C, A, CO, EO,RO, VA, CL

Frequencyof the

control

PorD

A or M

3 Booking The confirmation registration forms are signed by the guest as confirmed,confirmed by the Reservation manager and entered in the system.

C,O A,E,R/O D P

5,6 Night audit Revenue relevant to the rooms are recognised at the time of night auditprocess and the front office system is automatically updated .

V,C A,V,CO,C,R/O,E D P

3,8 Ledger maintenance All the room income has been credited in the system on the same day , in thesame order. Accounts receivable also get update. Guest ledger for a room hasto be closed in OPERA to open a another “Guest Ledger” for that room

C C,A,V D P

8,9 Ledger maintenance At the end of the day, all ledgers are updated in the OPERA . V,A,C A,C,V D P

Ledger maintenance All the transactions are uploaded by the income Auditor in accounting system(ACCPAC) on a daily basis. Assistant Director of Finance reviews, approvesand authorizes the report. Daily MIS report (Flash report) is generated from"opera" for management purpose. A R Excutive prepares monthlyreconcilation between ACCPAC and OPERA for Citi ledger.

C, A C ,A ,CO D,M P

Start

Guest walk-into the outlet

Take the orderfrom guest as

per Menu

1

Kitchen OrderTicket

Pick up menuprices from the

“MICROS” system

“MICROS”system

Open a “check” in the“MICROS” system,enter the order and

save.

2 1

The KitchenOrder Ticket isprinted at the

kitchen

3 1

Restaurant Revenue Process

1. Guest makes the order selected from the menu

2. The orders made by the guests are entered by the outlet waiter in to the system byopening a ‘check” in the MICRO System and savethe system itself.

3. Once a check is saved in the system, a Kitchen Order Ticket is printed at the kitchenautomatically. The number of checks opened in the system indicates the number of

Kitchen OrderTicket

Pick up menu

prices from the“MICROS” system

“MICROS”system

enter the order andsave.

2 1

The KitchenOrder Ticket isprinted at the

kitchen

3 1

“MICROS”system

Serve the orderand print the bill

4

Outlet bill

Obtainacknowledgement

from the guest

5 1

Acknowledgedoutlet bill


Select the room folionumber and select thesettlement mode as citi

in the system.

6

“MICROS”system

“OPERA” systemGuest ledger

Through the systeminterface the particular

Guest ledger in OPERA


Acknowledged billshanded over to finance

department for nightaudit process

tables opened during the day.

4. The order is served to the guest and raise a bill by the outlet waiterRates applicable for each Mini bar item have been decided by the Fare entered in to the MICRO System by the IT Manageris selected for billing, the system automatically picks the unit price

5. The outlet waiter obtains the guest's acknowledgementthe guest) in the bill. A copy of bill is handed over to the guest

6 & 7. The outlet Cashier enters the room number and select the settlement mode as Citiand the room folio is debited and the relevant outlet revenue account is creditedautomatically in both system ("MICROS'' andinterface with "OPERA".


Select the room folionumber and select thesettlement mode as citi

in the system.

6

“MICROS”system



Guest ledger in OPERAis updated.

7


Acknowledged billshanded over to finance

department for nightaudit process

8 1

Night auditor checksthe MICROS sales &

OPERA sales andrecognize revenue and

close the day

9 1

Collection from the guestfor all the consumption aredone at once at the time of

check out and the stepsare described in the room

revenue function

Refer “RoomRevenueProcess”

End

Refertreasury

processes

8. At the end of the closure, the signed bills are handed over to the night auditor alongwith the MICRO’s day financial reports to verify the signature and posting of theincome.

9. Night auditor checks the MICRO's sales with OPERA sales for the particular outletsIf there is any discrepancy noted, night auditor marks in the check list which is resolvedby the income auditor in the following day. if notclose the day in the "MICRO".Double entry in "OPERA and ACCPAC"Roomfoilo/Guest ledger A/C - DrFood/Beverage/Wine income A/C - Cr

Collection from the guest for all the consumption are done at once at the time of checkout and the steps are described in the room revenue functionprocess

Business Process:

Ref.No.


tion


C, A, V, R

Contribution toFinancial Statement

assertionsC, A, CO, EO, RO,

VA, CL

Frequencyof the

control

PorD

AorM

2 Ordering A check is opened in the MICRO system for every order received. A,C A,C,R/O,E M P A

3 Ordering Kitchen Order Ticket is automatically printed at the kitchen, A V D P A

5,6 Billing Outlet bills are acknowledged by the guest as confirmed. C,A E,R/O,V D P MGT

8 Night audit process Night auditor checks the MICRO's sales with OPERA sales for theparticular outlets and discounts given by the outlets with properapproval. If there is any decrepancy noted, night auditor marks in thecheck list which is resolved by the income auditor in the followingday. if not, recognize the revenue for the day and close the day in the"MICRO".

C,A A,V D P MGT

1. Guest buys goods in Boutique outlets

Start

Guest buys goods inBoutique outlet

1

Enter Room No of theguest & the items

details into “MICRO”and print the detail bills

2

Detail bill

Detail billBill is acknowledged byboth guest and officer of

“MICROS”

Acknowledge bills isforwarded to Finance

Boutique Revenue Cycle

Credit cardpayment

Collect paymentthrough credit card

machine

4

Yes

No

Credit card receipt

2. Outlet official enters room number of the guestprints the detail bills. Prices of the items have already been added into the system andwhen the Outlet official enters the items' details into the systemautomatically. Hence the "MICRO" has interface withfolio and outlet revenue get updated in "OPERA

3 & 4. If the guest wishes to pay by credit cardmachine. "MICRO" and "OPERA" record the collection thorough credit card and updates

Detail billBill is acknowledged byboth guest and officer of

boutique.

3

Acknowledge bills isforwarded to Finance

dept

6

Front Office“OPERA”


Guest ledger in OPERAis updated includingcredit card payment

5

7

Detail bill

Discrepanciesidentified

Close the daytransactions and

recognize the revenue

8

Night audit checks theMICRO’s bill with

OPERA

2

EndNo

Give the notification toincome auditor & Credit

Rectify thediscrepancies nextworking day and

End

Yes

Credit cardpayment through credit card

machine

4

Yes

No

Credit card receipt

the room folio. Detail bill and credit card payment slipguest. Copy of both bill and card payment slip are given to guest

5 & 6. Copy of acknowledged bill, credit card receipt and details transaction details areforwarded to Finance department for night audit process

7, 8, 9 & 10. Night auditor checks the MICROOPERA for the particular outlets. If there is any discrepancy notedthe check list which is resolved by the income auditor in the following dayrecognize the revenue for the day and close the day in theDouble entry,

Discrepanciesidentified

Close the daytransactions and


8

EndNo

Give the notification toincome auditor & Credit

manager

9

Rectify thediscrepancies nextworking day and


10

End

2

Yes

Close the daytransactions

11

End

`

Refertreasury

processes

Room folio A/C - DrBoutique revenue A/C - Cr

If it is consignment sales, depend on the contractACCPACBoutique revenue A/C - DrParticular consignment payment A/C - CrIf it is posted to room folio, collection from the guest for all the consumption are done atonce at the time of check out and the steps are described in the room revenue functionPlease refer room revenue process.

Business Process:

Ref.No.


tion


C, A, V, R



Frequency of thecontrol

PorD

AorM

7,10 Night audit process Night auditor checks the MICRO's sales and credit cardcollection with OPERA for the particular outlets. If there is any

C,A A,V D P MGT

discrepancy noted, night auditor marks in the check list which isresolved by the income auditor in the following day. if not,recognize the revenue for the day and close the day in the"MICRO".

1. SPA treatments rates are decided by Manager of SPA and entered into the systemPlease refer rate process.

Start

Guest reserve theservice over thephone or through

email

Allot the time inthe system

based on guestrequest

2

SPA Revenue Process

Request from theguest “SPA SOFT”

system

Consultationform

Consultationform is filled andacknowledged

Acknowledgedconsultation

form

SPA treatments rates aredecided by Manager of

SPA and entered into thesystem

1

Refer sub-processes

“Rates”

2. Guest reserve the service via phone and mailthe treatment and time, block the time to particular therapist in the system

the systembased on guest

request

2




7

Request from theguest “SPA SOFT”

system

Consultationform

Consultationform is filled andacknowledgedby the guest.

3


form


form

Serve the guest andsigned the

consultation form bytherapist

4

Service completedconsultation form

Service completedconsultation form

“SPA SOFT”system

Service invoice isacknowledged by

guest

6 Acknowledged invoicehanded over to front

SPA materialsales

Therapist signs out system forcompleted service and select theroom folio number & select thesettlement mode as citi in the

system. If there is any sales of SPAmaterial, enters the material codeinto the system. Raise the invoice

5

Service invoice

Service invoice

3 & 4. Guest signs the consultation formwants. Consultation form is handed over to the therapist and which is also signed bytherapist, who does not serve any treatment without having consultation form and at theend of the service, therapist signs out in to the system as well

5, 6, 7 & 8. When therapist signs out system for completed service and selects the roomfolio number & select the settlement mode as citi in the systemSPA material, enters the material code into the systemsales in "OPERA" and "SPA soft" gets updated simultaneously through interfaceRaised invoice is acknowledged by guestsettlement at the time of check out.




7

Service invoices

Printed serviceinvoices handed overto finance departmentfor night audit process

9

Night auditor checksthe SPA SOFT sales &

OPERA sales andrecognize revenue and

close the day

10

Collection from the guestfor all the consumptionsand services are done atonce at the time of check

out and the steps aredescribed in the room

revenue function


End

Service invoice isacknowledged by

guest

6 Acknowledged invoicehanded over to front

office for the settlementat the time of check-out

8

sales

5

Service invoice

Refertreasury

processes

9. Printed invoice in "SPA soft" is sent to finance department for night audit process fromSPA reception.

10. In the night audit process, Night auditor checks the SPA SOFT salesand posting to the room polio. Recognize revenue and close the dayprocess is almost nil.Double entry,Room folio A/C DrParticular Income Cr

Collection from the guestfor all the consumptionsand services are done atonce at the time of check

out and the steps aredescribed in the room

revenue function


End

Refertreasury

processes

Business Process:

Ref.No.


tion


C, A, V, R



Frequencyof the

control

PorD

AorM

2,3 Reservation Treatment is only served to the guest who reserved previously.System shows the guset details and staff allocated for thattreatement once it is reserved.

A,C A,C,R/O,E Multiple P A

3 Servicing Treatment is only served the guest who has signed the consultationform.

A V D P MGT

5, 10 Night audit process Invoices are generated by the system. System generates invoice,once Therapist signs off in the system at the end of the serviceserved to guests. Night auditor checks the SPA SOFT sales &OPERA sales and complimentary services given by SPA. If there isany discrepancies note, he informs to SPA Manager, Credit Mangerand Income Auditor for following up.

C,A C,E,R/O,V D P MGT

1

Reservations’ staffs enter thereservation details includingtransfer way to the resort to

the front office system




Guest check-In

2

Front office staff charges thetransfer income to the

concerned room no at thepoint of check in.



3

Print the daily event reportand checks whether thetransfer charges were

charged to all check in guest.

Daily event report

Start

Transport Income Cycle

1. Reservations’ staffs enter the reservation details including transfer way to the resort tothe front office system at the time of reservation. For more details of reservationrefer room revenue process number 3.

2. Front office staff charges the transfer income to the concerned room no at the point ofcheck in of the guest. Room folio and transfer income is updated in the

3. Front office staff prints the daily event report at the end of the day and checks whetherthe transfer charges were charged to all check in guests


3

Print the daily event reportand checks whether thetransfer charges were

charged to all check in guest.

Daily event report

Daily event report

4

Night auditor checks the no ofarrivals and transfer income

booked in the system.

5

At the end of the day night, ifany discrepancy is identified,

night auditor forwards thereport to income auditor for

corrections.



revenue function

End

Refertreasury

processes

4. Night auditor checks the no of arrivals and transfer income booked in the system withreference to daily event report.Guest ledger A/C - DrTransfer income A/ C -Cr

5. At the end of the day night, if any discrepancy is identifiedreport to income auditor for corrections. Discrepancy is corrected in the following day bythe Income Auditor.



revenue function

End

Refertreasury

processes

Business Process:

Ref.No.


tion


C, A, V, R

Contribution toFinancial Statement

assertionsC, A, CO, EO, RO,

VA, CL

Frequencyof the

control

PorD

AorM

4,5 Night audit process Night auditor checks the no of arrivals, departures and transfer incomebooked in the system with reference to daily event report. At the end ofthe day night, if any discrepancy is identified, night auditor forwards thereport to income auditor for corrections. Discrepancy is corrected in thefollowing day by the Income Auditor.

C,A A,V,C Daily P MGT

1. Sports and recreation manager receives guest requests for the activities over the phone

Receive the guestrequest over phone

“OPERA”system

Start

Guest request

`

Guest request

1

Sports and recreationmanager receives guestrequest for the activitiesover the phone. Prepare

guest request.

2

Arrange the requestedactivities to the guest andserve the guest according

to the request.

``

3

Sports and recreationmanager enters all the

services charges by selectingroom folio number in the

MICRO system

“MICRO”system

Sports and recreation income cycle

He/she prepares guest request for activities preferred by the guest

2. Sports and recreation manager arranges the requested activities by the guestwho are responsible for the activities, serve the guest according to the request

3. Sports and recreation manager enters all the services charges by selecting room folionumber in the MICRO system. Room folio in OPERA and revenue generated by theactivities in both system gets updated.

“OPERA”system

3

Sports and recreationmanager enters all the

services charges by selectingroom folio number in the

MICRO system

“MICRO”system

4

Print the detail bill and getthe acknowledgement

from the guest

Acknowledge bill

5

Copy of acknowledged billis sent to front office for

collection.`

`

6

Copy of acknowledged billand details of transactions

for the day are forwarded toFinance dept for night audit

process.

Acknowledge bill

Acknowledge bill

TransactionDetails for the

day``

Night auditor checks theMICROS income & OPERA

income and room folioupdation and recognize

revenue and close the day

4 & 5. Print the detail bill and get the acknowledgement from the guestacknowledged bill is sent to front office for the collection

6 & 7. Copy of acknowledged bill and details of transactions for the day are forwarded toFinance dept for night audit process. Night auditor checks the MICROS incomeincome and room folio updation and recognize revenue and close the day

6

Finance dept for night auditprocess.

TransactionDetails for the

day``

Night auditor checks theMICROS income & OPERA

income and room folioupdation and recognize

revenue and close the day

7 1



revenue function

End

Refertreasury

processes

Business Process:

Ref. No. Sub-process/Transac-

tion


C, A, V, R


C, A, CO, EO, RO,VA, CL

Frequencyof the

control

PorD

6,7 Night audit Copy of acknowledged bill and details of transactions for the day areforwarded to Finance dept for night audit process. Night auditor checks the

C,A C,A Daily P

MICROS income & OPERA income and room folio updation and recognizerevenue and close the day . Further, he checks the discounts andcomplimentary services given by them.

Introduction

Staff shop and bar income

Room rates

1. Sales and marketing department gathered necessary information such as past room ratesrate, market demand and future guest arrivals etc.. from internal and outsides sources

2. Consider seasonal demands and decide the room rates based on information gathered

Start

Necessary informationare gathered from

internal and outsidessources.

1

Consider the demandperiodically and decidethe rates by DoS&M,

DoF & GM.

2

Rates decided aredocumented and signedby the GM, Dos & DoF.

3

Decided rates list

Decided rates list

Decided rates list issent to cooperate officeUS. It is approved by

Approved rates list

Room rates process

3. Decided rates are documented and signed by the General ManagerFinance of the resort.

Rates decided aredocumented and signedby the GM, Dos & DoF.

3

Decided rates list

Decided rates list

Decided rates list issent to cooperate officeUS. It is approved by

Cooperate office

4

Approved rates list

Rates applicable totravel agents are sent to

travel agent for theirconfirmation

5

Rate confirmation

Create necessary ratecodes in the system

6


Rates slabs are enteredinto the system under

the rates codes created.

7

Approved rates list

4. Decided rates list is sent to cooperate office. Rates are approved by cooperate officeapproved with the Budget by board of Directors.

5. Rates applicable to travel agents are sent to travel agent for their confirmation

6. Once they confirm the rates codes are created in the system.

7. Rates applicable for particular codes are entered into the system

6

Rates slabs are enteredinto the system under

the rates codes created.

7

Rates entered ischecked by the nextreservation official.

8

Night auditor checks thesystem arrival list withthe correspondence

every day and confirmthe correctness.

9

Roomrevenue

activity no 3

Roomrevenue

activity no 6

8. Next reservation official (other than , who enters the rates) checks the accuracy of the rates entered in the system

9. At the end of the day, night auditor checks the arrival list and rates with the correspondencenight auditor marks in the check list which is forwarded to credit manager and income audit for following up

Night auditor checks thesystem arrival list withthe correspondence

every day and confirmthe correctness.

9


Daily event reports includingguest arrival details & rates

prepared by relevant dept and itis reviewed & discussed by GM,

DoF & DoS by following day.

10

activity no 6

End

10. Daily flash report including arrival details and rates are reviewed and discussed by General ManagerFinance and Director of Sales and Marketing by the following day

Business Process:

Ref.No.


tion


C, A, V, R


C, A, CO, EO, RO,VA, CL

Frequencyof the

control

PorD

AorM

3 & 4 Room rates Decided rates are documented and signed by the General Manager, A,V A,O Annually P M

Director of Sales and Marketing and Director of Finance of theresort. Decided rates list is sent to cooperate office. Rates areapproved by cooperate office (Kerzner in US). Decided rates areapproved with the Budget by board of Directors.

9 Room rates At the end of the day, night auditor checks the arrival list and rateswith the correspondence. If there is any discrepancy, night auditormarks in the check list which is forwarded to credit manager andincome audit for following up.

C,A,V C,A,EO Daily P M

N/A System control Reservation staffs only have access to rates changes. R A,O N/A P A

Outlet menu prices

Boutique items prices

SPA treatement charges

Transport charges

Sports and recreation charges

Staff shop and bar

Credit management

Validation of control activities

Business Process:

Ref.No.

Validation Procedures Results WeaknessIdentified?(Yes/No)

[Link]

Report to Client(Yes/No)

3 The confirmation registration forms are signed by

the guest as confirmed by the Reservation manager

and entered in the system.

We examined the guest registration forms to ensure

the occurrence of the transaction.

We selected 60 guests arrived during August ,

September and November 2009 and examined the

guest registration forms.

No exception noted

No No

5,6 Revenue relevant to the rooms are recognised at the

time of night audit process and the front office

system is automatically updated . During night audit

process, night auditor checks the following

transactions in the front office system ("OPERA"),

Reservation correspondence of guests with the

amount charged in the system.

Daily check-in and check-out

Bed tax calculation

W reperformed the night auditor works and decided

to observe the night audit auditor work.

We repeformed the night auditor work for 50 guest.

We examined the rates with correspondence and

raised to OPERA. We observed the night audit work

on 10 January 2010.

ss

No exception noted

No No

3,8 All the room income has been credited in the system

on the same day , in the same order. Accounts

receivable also get update. Guest ledger for a room

has to be closed in OPERA to open a another “Guest

Ledger” for that room.

We checked the revenue recognition from OPERA to

We checked the 60 days revenue recognition with

OPERA.

No exception noted.

No No

ACCPAC.

All the transactions are uploaded by the income

Auditor in accounting system (ACCPAC) on a daily

basis. Assistant Director of Finance reviews,

approves and authorizes the report. Daily MIS

report (Flash report) is generated from "opera" for

management purpose. A R Executive prepares

monthly reconciliation between ACCPAC and OPERA

for Citi ledger and it reviewed by Assistant Director

of Finance and approved by Director of Finance.

We examined the citi ledger reconciliation between

ACCPAC and OPERA.

We examined the following months citi ledger

reconciliation between ACCPAC and OPERA during the

year 2009.

Reviewed Approved

by Ass.DoF by DoF

March v v

July v v

August v v

October v v

November v v

December v v

Month

No exception noted.

No No

Business Process:

Ref.No.


[Link]


8 Night auditor checks the MICRO's sales with OPERA sales for

the particular outlets and discounts given by the outlets with

proper approval. If there is any decrepancy noted, night auditor

marks in the check list which is resolved by the income auditor in

the following day. if not, recognize the revenue for the day and

close the day in the "MICRO".

We checked the revenue recognition from MICROS to OPERA

and to ACCPAC.

We reperformed the night auditor works and checked the

revenue recognition from MICROS to OPERA and to ACCPAC

for 60 days.

No exception noted.

No No

Business Process:

Ref.No.


[Link]


7,10 Night auditor checks the MICRO's sales and credit card

collection with OPERA for the particular outlets. If there is

any discrepancy noted, night auditor marks in the check list

which is resolved by the income auditor in the following day.

if not, recognize the revenue for the day and close the day

in the "MICRO".

We checked the revenue recognition from MICROS to

OPERA and to ACCPAC.



for 60 days.

No exception noted.

No No

Business Process:

Ref.No.


[Link]


5,10 Invoices are generated by the system. System generates

invoice, once Therapist signs off in the system at the end

of the service served to guests. Night auditor checks the

SPA SOFT sales & OPERA sales and complimentary services

given by SPA. If there is any discrepancies note, he informs

to SPA Manager, Credit Manger and Income Auditor for

following up.

We checked the revenue recognition from SPA Soft to

OPERA and to ACCPAC.

We reperformed the night auditor works and checked

the revenue recognition from SPA Soft to OPERA and to

ACCPAC for 60 days.

No exception noted.

No No

Business Process:

Ref.No.


[Link]


4,5 Night auditor checks the no of arrivals, departures and transfer

income booked in the system with reference to daily event report.

At the end of the day night, if any discrepancy is identified, night

auditor forwards the report to income auditor for corrections.

Discrepancy is corrected in the following day by the Income

Auditor.

We checked the revenue recognition from OPERA to ACCPAC.


revenue recognition from OPERA to ACCPAC for 60 days.

No exception noted.

No No

Business Process:

Ref. No. Validation Procedures Results WeaknessIdentified?(Yes/No)

[Link]

Report toClient

(Yes

6,7 Copy of acknowledged bill and details of transactions for the day are

forwarded to Finance dept for night audit process. Night auditor

checks the MICROS income & OPERA income and room folio updation

and recognize revenue and close the day . Further, he checks the

discounts and complimentary services given by them.

We checked the revenue recognition from MICROS to OPERA and to

ACCPAC.



for 60 days.

No exception noted.

No No

Staff shop and Bar

Business Process:

Ref.No.


[Link]

Report to Client(Yes/

8,9,10 Night auditor checks the MICRO's cash and credit sales with OPERA

and check the staff account updation in OPERA. If there is any

discrepancy noted, night auditor marks in the check list which is

resolved by the income auditor in the following day. if not, recognize

the revenue for the day and close the day in the "MICRO".

We checked the revenue recognition from MICROS to OPERA and to

ACCPAC.



for 60 days.

No exception noted.

No No

Room rates

Outlet menu prices

Boutique items prices

SPA treatement charges

Transport charges

Sports and recreation charges

Staff shop and bar

Credit management

Attachments:

Price Changes

Top 10 Tour Operators rate validation

Categorisation

Area 2400 - Revenue and receivables process

Status & Maintenance

Status: ReviewedMaintenance

Edit History:

isa on sales & receivable

Documents