FINANCIAL DEPARTMENT

POSITION :
INCOME AUDITOR

A. GENERAL GUIDELINES

The Income Auditor is a member of the Accounting Staff and works under
the supervision of the Controller and Assistant Controller.

In General, he audits and controls all personnel of the hotel related to

income/revenue such as Front Office Cashiers, Night Auditors, Restaurant
Cashiers and the General Cashier. The Income Auditor must ascertain
that all daily income, that should be received by the hotel has actually
been recorded and he has to complete or establish that various reports
truly reflect the revenue and balances of the hotel.

1. RESPONSIBILITIES

- Ensure that all complete reports and documents are received

from the Night Auditor each day. Reports or documents should
not be missing.

- Audit the daily revenue and non-revenue reports as follows

 Computer final balancing report amounts are compared and

matched with the various vouchers, recapitulations and
reports which were previously audited by the Night Auditor.

- Audit the daily payment column on the final balancing report and
compare it to the backup.

- Verify and ensure that the guest ledger is balanced daily.

- Prepare and distribute the report, folios and vouchers to the

various departments which rely on the reports for their work.

- Verification of adjustments and paid-outs are submitted to the

Controller for approval.

- Prepare the daily Profit & Loss statement and upon approval,
distribute it to the appropriate departments.

- Reconcile and complete the General Cashier report.

- Undertake the regular administrative and accounting controls.

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FINANCIAL DEPARTMENT
POSITION :
INCOME AUDITOR

- Complete and verify the balances of the following daily/monthly

reports:

 Over & short report (the Controller or Assistant should be

informed of any important over/short difference of more than
$50).

 Advance deposit detail control report.

 Guest ledger balance control report.

 Payment per type control report.

 Any month-end inter charge code transfers.

 Complimentary room control report.

 Occupancy tax control report.

 Detail miscellaneous charge code report.

Submit month-end reports to the Assistant Controller for the monthly

closing. It is the responsibility of the Income Auditor to insure, prior to
submitting the report, that they correspond to the other departmental
reports (if applicable).

2. DUTIES

2.1. The Income Auditor has to verify that all the required reports and
supporting documents have been received from the Night Auditors.

- The “final” report is run from the computer automatically during

the night audit update of the daily work.

- Detail posting reports by charge codes.

- All cashiers report from the previous day.

- All house account summaries with the appropriate backups. The

house accounts should be closed daily by the Night Auditor.

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FINANCIAL DEPARTMENT
POSITION :
INCOME AUDITOR

- All vouchers:

 Adjustments
 Telephone
 Paid-out
 Mini-bar
 Garage charges
 Day use
 Valet / Laundry
 Miscellaneous charges

- Accounts receivable folios and credit card folios with respective

backups.

- Food & Beverage recapitulation with backups.

- All restaurant checks to be filed.

- Final daily F & B system report of F & B machine tapes.

2.2. Audits the daily revenue / and non-revenue report (D-Card) totals

- Total detail report per type of revenue and / or non-revenue

should agree with the corresponding backup and the final
balancing report.

- The above should be completed for all revenue accounts, such as

:

 Room
 Food & Beverage
 Telephone
 Valet / Laundry
 Mini-bar
 Garage
 Swimming pool
 Other income
 Other departments (if any)

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FINANCIAL DEPARTMENT
POSITION :
INCOME AUDITOR

- As well as to all non-revenue accounts, such as:

 Tax
 Tips
 Clearing Accounts

- Analyze and control the following :

 Number of rooms occupied, average rate

 Number of covers, average checks
 Tips
 Other income, Food & Beverage and other
 American Plan

2.3. Audits the daily adjustments to revenue and paid-outs

- All vouchers corresponding to adjustments and paid-outs must

have a complete written explanation detailing the reason for the
adjustment.

- All adjustments must include the signatures of the Clerk and the
Front Office Manager or the Assistant Manager and in some
cases, the Department Head.

- Paid-outs should contain the above signatures in addition to the

signature of the guest (all paid-outs should not exceed US$50
except for taxis etc.)

- All front desk adjustments should be signed by the guest.

- Total vouchers per type of adjustments / rebates should match

the final balancing and the audit summary per shift and per
Cashier.

- Once the verification is complete, the Income Auditor submits

the vouchers and backup to the Financial Controller and then to
the General Manager for approval.

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FINANCIAL DEPARTMENT
POSITION :
INCOME AUDITOR

- Upon return from the General Manager, the adjustments and

supporting documentation are filed into the corresponding daily
income envelopes.

- In the case of a contract with an airline of a company stipulating

disbursements by the hotel to crew members or to employees of
the company, the approval of the Financial Controller and the
General Manager is not necessary due to the existence of a
contract previously approved. The above paid-outs are verified
(exchange rate, etc….) and matched to the final balance and then
transmitted directly to A/R.

2.4. Audit the daily payment column on the final balancing report
making sure the backup balances.

2.5. The Income Auditor insures that the guest ledger is in balance by
completing the corresponding report and matching the balance to the
total of the status report generated by the computer.

2.6. Prepares and distributes various reports, folios and documents to the
departments concerned.

- Prior to distribution of any documents or reports to other

departments, the Income Auditor should ascertain that the
amount stated corresponds to the final balancing report.

- Insure that the A/R Department receives all the folios, backup
and reports for all direct bill amounts transferred.

- Verify that the total direct billing on the final balancing report
agrees with the backup.

- Follow the same procedure for the credit cards.

2.7. The Income Auditor prepares the daily Profit & Loss statement or, if
this report is not available on a daily basis, the daily revenue reports.

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FINANCIAL DEPARTMENT
POSITION :
INCOME AUDITOR

- The Income Auditor prepares the P & L statement daily. The

report should contain revenues from all revenue generating
departments such as rooms, food, beverage, miscellaneous food
& beverage, telephone, laundry, mini-bar etc.

The report should give actual figures, budget figures and last
years figures and should accumulate month-to-date figures as
well.

The completed report is approved by the Controller or Assistant

Controller and distributed to the General Manager, the Executive
Assistant Manager, all department heads and to all outlet
managers as well as any other staff which need or use
information contained in the report.

2.8. The Income Auditor reconciles the General Cashier’s daily work.

- All deposit slips stamped by the bank are added by the Income
Auditor and balanced with the General Cashier’s total deposit to
the bank.

- The Controller or Assistant Controller should be immediately

informed of any discrepancies.

- The income audit section of the General Cashiers report is then

completed using the Front Office shift closing recap competed
by the Cashiers, the Food and Beverage recap and the checks
received by mail listing.

- The total is then balanced with the final balancing report.

- Print the daily report and compare the total to the month-to-date
journal voucher verifying it balances to avoid problems or delays
at the month-end closing.

2.9. The Income Auditor undertakes the regular administrative and

accounting controls as follows :

- Control the Front Office and Food & Beverage Cashier’s bank
by unannounced audits.

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FINANCIAL DEPARTMENT
POSITION :
INCOME AUDIT

- Ensure the proper filling of all the documents and reports,

including the restaurant machine tapes.

- Monitor and control issuance of the restaurant checks by

maintaining a logbook. Order checks when needed.

- Monitor and control the inventory of guest safe-deposit boxes

prepared daily by the Front Office Assistant Manager and the
General Cashier respectively.

- Any other matters related to revenue and guest payments.

- Once a week, verify the daily comparison report between the

Housekeeper’s report and the Front Office report. The daily
comparison report is prepared and printed daily by the Assistant
Front Office Manager and remitted to the Income Auditor before
9:00 A.M. Any differences must be investigated and include a
written explanation.

- Once a week, verify the room rates as shown on the room-

revenue / Night Clerk’s report to the published tariff. Any
difference in the above must be accounted for by a written
approval from the General Manager unless the difference can be
explained by special or pre-established rates.

- Regularly, verify the detail trial balance report of all the guest’s
accounts by room number and amount. Particular care should be
given to inactive accounts (no charges within the last 24 hours)
in order to prevent room charge postings to unoccupied rooms
not being paid and to detect walkouts.

- For each of the controls previously listed, any discrepancies or

improprieties are noted and the conclusions are brought to the
attention of the Controller in the form of a report.

- For all matters related to credit policies and procedures, such as

paid-outs, rebates, credit agreements and credit cards, the Income
Auditor should consult the credit manual in which he/she should
be thoroughly familiar with.

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FINANCIAL DEPARTMENT
POSITION :
INCOME AUDITOR

- The Income Auditor must investigate and follow up, either

personally or with the Front Office Manager, on any missing
checks or folios.

- A report must be completed daily dealing with the results of the

investigations performed by the Income Auditor for the
Controller or Assistant Controller, who will handle the necessary
follow-up.

- The Income Auditor monitors restaurant walkouts. Each

walkout is researched and verified that there is no method to
determine the guest’s name and /or billing address.

- Adjustment vouchers are completed for unresolved restaurant

walkouts and submitted to accounts receivable.

- All restaurants checks are maintained on file in numerical

sequence.

- The Cashiers are audited on a monthly basis.

- The Income Auditor accompanies the person in charge of

collecting money from pay phones, coke and coffee machines,
etc.

- All necessary revisions are posted.

- All daily reports are filed into the final guest ledger binder.

- Arrangements are made for the microfilming of the final guest

ledger (if applicable).

- Housekeeping reports are filed.

2.10.Month-end procedures

- The following are some major points that the Income Auditor
should check and verify concerning the integrity of the figures
prior to issuing the month-end report.

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FINANCIAL DEPARTMENT
POSITION :
INCOME AUDITOR

- The Income Auditor has the responsibility to balance the

following figures:

 Total advance deposits must balance with the MTD advance

deposits on the computer report.

 Total advance deposit payments must balance with the MTD

total payments.

 Occupancy tax report net rooms must balance with the daily
revenue report.

 MTD over/short report must balance with the MTD total in

the General Cashier report.

 Miscellaneous, once detailed and the accounts allocated,

must balance with the daily non-revenue report.

 The receivable clearing accounts must balance with the A/R

recap.

- Submit the finalized spreadsheets tot he Assistant Controller.

- Front Office cash and food & beverage cash must equal the cash
balance on the final balancing report.

- Tips paid out must equal the amount listed on the food and
beverage report.

- At month-end, the following amounts must balance with the

rooms division :

 Number of complimentary rooms

 Number of occupied rooms
 Number of maintenance rooms
 Number of vacant rooms
 Number of guest.

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FINANCIAL DEPARTMENT
POSITION:
INCOME AUDITOR

This Job Description is not exhaustive and not limited to the guidelines above

Employee Name:

Signature: Date:

Head HR

Signature: Date:

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