Cash and Bank

I OBJECTIVE

To establish a standard method of accounting for Hotel’s Cash and Bank controlling.

II PROCEDURES

Petty Cash Payments

Petty Cash payments are disbursed by the General Cashier, out of his general fund. Consequently, the Controller together with the General Manager, should determine such maximum limits for their respective operations, setting them to the smallest possible figure in accordance with local conditions. The General Cashier will be instructed in writing as to the limit established, preferably not to exceed US$50 or equivalent in local currency.

Pre-numbered and controlled Petty Cash vouchers will be prepared for each payment, to which any supporting documents will be attached.

Petty Cash payments must be approved in advance by the Controller. In cases, where the Controller is the recipient, the prior approval should be obtained from the General Manager. At the time when these payments are reimbursed to the General Cahier, the General Manager should initial all petty cash vouchers.



Cash Purchases by Purchasing Agent



Although it is necessary to reimburse the Purchasing Officer, cut of Petty Cash, for small cash purchases made by him.

In this case, the General Cashier must previously obtain from the Receiver and attach to the original, the duplicate delivery order(s) duly receipted by the storeroom, checked and approved as to quantities, quality price, and arithmetical accuracy. (This practice will prevent the possibility of a Payment Voucher being opened in the name of the Purchasing Officer covering the same disbursement.)



Bank Transfer Order



Using Hotel’s Check is discouraged, and instead of that the Hotel should use Bank Transfer Order (BTO) to make it is more safe and easier in controlling

Bank Transfer Orders are issued for the following purposes in general:

(a) In payment of supplies and services, for which Purchase Vouchers have been prepared numbered and recorded in the Voucher Register. This includes reimbursements of petty cash disbursements by the General Cashier.
(b) In payment of commissions to Travel Agents.
(c) To transfer funds between bank accounts
(d) To the order of the General Cashier, for:
Reimbursement of exchange

Provisional (or permanent) increases in House Banks

Payroll disbursements



Payment to Supplies and Services Covered by Payment Vouchers

When a Payment Voucher is approved for payment, the BTO is prepared and the number of the BTO entered in the space provided for that purpose in the upper left hand corner of the Purchase Voucher.

The BTO, together with Voucher, is passed on to the Controller who verifies that the payment is properly documented, signs the BTO and the voucher, and passes it on to the General Manager for the second signature on the check.

The General Manager signs the BTO and the voucher and returns it to the Controller or the secretary, for personal delivery or mailing.



Discounts for Prompt Payment

(e) If the hotel is financially able to get the benefit of discounts for prompt payment. It is the duty of the Controller to control disbursements so as to obtain every available discount.
(f) Invoices for purchases subject to an allowance for prompt payment should be clearly identified and filed by date of discount payment. A red sticker or highlighter in which the discount date is written will serve that purposes.
(g) The discount obtained will also be recorded in the space provided in the Payment Vouchers, showing the gross amount per voucher, rate and amount of discount, number and amount of check.


Petty Cash Reimbursements



Petty Cash disbursements must be reimbursed at least once each week and on the as day of each month. More frequent reimbursements will be made if such payments are numerous or in large amounts, notwithstanding the efforts that must be made to avoid that occurrence.

In order to obtain a reimbursement of amounts paid on Petty Cash Vouchers, the General Cashier will prepare a list, in original and one copy, in strict numerical sequence, of all such payments to be reimbursed. Except for payroll advances, each Petty Cash voucher issued must be included in the nest following reimbursement.

The lists will contain the following information:

Voucher number

Data

Paid to Amount

Account to be charged



Reimbursement lists will be numbered consecutively, starting each year with number one, even though the corresponding disbursement voucher will have the consecutive number applicable to its entry in the Voucher Register.



The original, together with the vouchers and supporting documents, will be turned over to the Voucher Register clerk to be processed for payment. The duplicate will remain in the General Cashier’s fund until it is reimbursed, at which time it will be filed by the General Cashier together with previous disbursements.



When the Controller signs a check reimbursing Petty Cash payments, he will immediately cancel or cause to be cancelled by his assistant or secretary each voucher and attachment, using a PAID rubber stamp or a perforating machine.



The original of the Petty Cash reimbursement list, together with all attachment, will be filed separately by reimbursement numbers



Cash count and bank reconciliation



Physical counts for cash in safe box should be done at list 2 times per month. The first time is not pre-informed to General Cashier and can be taken at any time. The second time should be done at the end of the month. The physical count is conducted by an accountant who is not directly involved in cash and bank transactions, and will be taken note on a standard form.



As a minimum standard all bank accounts will be reconciled on a monthly basis with the General Ledger, and all reconciling items are to be properly identified and resolved as soon as practicable. Bank account reconciliations are to be performed by an accountant who is not directly involved in cash and bank transactions. Bank account reconciliations are to be completed in standard form.



The Hotel Controller is personally responsible for examining all cash count minute, bank account reconciliations which are to be signed by the Controller as his/her acceptance of responsibility for the accuracy of the information contained therein.

A copy of the cash count minutes and bank account reconciliations are to be held on file for review by the General Manager, and internal as well as external auditors