Please read the mini case study below and answer the three questions at the end to the best of your ability:
1/ When the front office experiences issues where the audit is out of balance, what are the typical causes of being out of balance?Also, where should you look to identify these problems?
2/ Based on the case study, what are the causes of departmental totals being out of balance?
3/ Create a step-by-step front office audit job list that will handle Robert’s difficulties, guarantee the audit is always in balance, fast posting of revenues, and correct management reporting.
The Dolphin Bay Resort’s general manager is Robert Boyle. The 400-room resort is situated on a half-mile stretch of some of the best beach in the state. The resort also offers a swimming pool, tennis, golf, and many other leisure activities. The resort has an occupancy rate of over 80% during the high season. The resort runs with an occupancy rate of around 40% during the off-season. Hence, it is crucial that expenses be kept to a minimum at all times while revenues be increased at the busiest period of year. The resort’s front desk is semi-automated and employs electronic posting machines.
About a month ago, Robert took over as general manager and noticed that there was an issue at the front office. He was receiving inaccurate front office audit reports every two to three days, particularly when it came to account balances. In essence, Robert lacked faith in the accuracy of the front office audit. The revenues that department managers were reporting in their point-of-sale systems didn’t always seem to be credited to their revenue centers on the right days, according to Robert, who was also hearing this from department managers. The master account posts might be a day late at banquets, which made this especially true. Robert was worried that the occupancy and room status information might not be accurate as a result. Revenues might be impacted by this.
The front office audit team reports to you as the new controller at the hotel. Robert has requested that you create a strategy to guarantee that the front office audit is consistently balanced and that revenues and occupancy are reported accurately.
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