CONDUCT A NIGHT AUDIT

D1.HFO.CL2.06

Slide 1
Element 1
Identify the role of the night auditor

Slide 2
1.1 Describe the activities undertaken
by the night auditor
Night auditing is

 A control procedure which is undertaken on a regular basis

to ensure accuracy of guest and non-guest accounts

 Rectify errors to guest accounts

 Process to complete ‘end of day close’ and roll the date

 Preparation of monies for banking

 Produce reports for management planning

 Manage the Front Desk operations overnight.

Slide 3
1.1 Describe the activities
undertaken by the night auditor
Night auditing is
 Manage the Front Desk operations overnight

 Reception duties - e.g. late check in, walk-ins and

departures

 Customer requests for housekeeping, room service or

porter services.

Slide 4
1.2 Describe the responsibilities of a
night auditor
11:00 pm - Night Audit Shift

 Handover with afternoon Reception [check-in] Shift

 Open Cashier

 Count Night Audit Float

 Reception and other duties

• Answer phone, answer guest queries, taking

reservations, security checks, processing late charges
and no shows, processing outstanding charges and
payments.

Slide 5
1.2 Describe the responsibilities of a
night auditor
 Count floats for AM and PM shifts

 Audit and balance all financial transactions

 Prepare documentation

 Batching

 Reconciliation

(continued ……)

Slide 6
1.2 Describe the responsibilities of a
night auditor
 Balance all departments

 Balance all shifts

 Verify and Post Room Rates

 Perform Close of Day Procedures

 Generate and Distribute Audit Report.

Slide 7
Class activity

 Batching

 Refer to handout 1 for class activity.

Slide 8
1.3 Locate the position of the night
auditor
07:00
AM Shift

Front Office
15:00
Manager
PM Shift

23:00 Night Auditor Duty Manager

Night Audit
Shift
Reservations
Reception
Revenue Concierge
Cashier
management

Call centre Allotments for

Tour groups & Porter Door person
Telephonist Corporate

Valet Parking

Slide 9
1.4 Identify the experience required
by the night auditor

 Accountancy skills

 Numeracy and bookkeeping skills

 Front Office reception skills

 Customer relations skills.

Slide 10
1.5 Interpret enterprise policies and
procedures that apply to the delivery of
night auditor functions

 Policies for handling cash

 Policies for handling Credit charges

 Policies for contract corporate charges

 Policies for risk management.

Slide 11
1.6 Identify and explain the role of
communication in night audit
 Reports

 Verbal instructions to staff

 Messages to Guests

 Documents advising late charges

 Memos. Arrivals report from Micros Fidelio OPERA

Slide 12
Element 2
Process internal financial transactions

Slide 13
2.1 Verify that all relevant financial
transactions have been posted.
 All financial transactions are checked to verify charges
have been posted accurately

 Check source documents.

Slide 14
Class activity

 Identify the Source document and whether the

transaction is a debit or credit on the guest account

 Use handout 2

Slide 15
2.2 Validate transactions and charges
that have been posted
All financial transactions should have a traceable audit
trail.

 Cash register record

 Coding links
Posting screen from Micros Fidelio OPERA

 Time stamps

 Reference description

 Complimentary items.

Slide 16
2.3 Post charges to guest accounts
Posting is the addition of charges to a guest account

 Posting charges to Guests’ accounts

 Amounts are linked to Departments and services.

Guest folio from Micros Fidelio OPERA

Slide 17
2.4 Reconcile posting of transactions
within the areas of responsibility
Compare Cash register record to a Guest account entry

 Docket numbers

 List the types of charges a guest will add to their account

then identify which department the charge will be posted
from.

Slide 18
2.5 Identify and resolve discrepancies
in the posting of charges
Discrepancies:

 Room status check

 Matching the room registration to a

guest name

 Incorrect prices posted

 Guests identifying mistakes

Slide 19
2.6 Implement requirements of internal
financial systems and controls
Internal financial systems keep strict control over the
accounting process:

 Cashier’s float

 Docket control

 Debtor control.

Class activity: Process foreign currency

Slide 20
2.7 Check room status and reconcile
variations
Guest account charge linked to an incorrect room

 Incorrect room number supplied by Guest

 Mistake at Point Of Sale (POS)

 Guest has had a room move not recorded accurately.

 Room rate alters due to extended stay.

Slide 21
2.8 Secure, record and prepare funds
for banking
Sort (batch) and check all monies

 Banking summary report

 Count and separate coins and notes by denomination

 Complete banking envelope place the takings inside.

Slide 22
Class activity

 Refer to Handout 3

 Complete the banking envelope.

Slide 23
Element 3
Verify occupancy position of the
property
What is occupancy and how is it calculated?

Slide 24
3.1 Check and validate room status

Basic statistics used to validate room status

 Occupancy Percentage

 Multiple room Occupancy

 Average room rate

 Average rate per guest.

Slide 25
Class activity

 Calculating Occupancy

 Using Handout 4 calculate the occupancy percentage

and average room rate.

Slide 26
3.2 Investigate discrepancies in room
status
The night auditor posts all room charges to guest
accounts and must verify the rate is accurate

 Room status report

 Guest folio and reservation information

 Discounts and entitlements.

Slide 27
3.3 Adjust internal records to reflect
actual room status
The room status list will indicate which rooms in the
establishment are:

 Vacant - an empty room but may not be

ready for sale

 Ready vacant - clean and inspected by

housekeeping as ready for sale

 Dirty occupied - occupied by an in-house guest, but

not serviced by housekeeping today

 Clean occupied - serviced by housekeeping

 Dirty out of order- a room where maintenance or renovation

is occurring.

Slide 28
Element 4
Contribute to management decisions

Slide 29
4.1 Prepare management and operational
reports
 Daily room revenue summary report

 Daily revenue report

 In-house activity report

 Arrival and departure lists

 In-house guest list

 Special requests report

 Commission-related reports.

Slide 30
4.2 Distribute reports internally according
to enterprise requirements

Financial trading reports are distributed to

departments

 Forecast staff needs

 Planning for purchasing

 Meet guests’ needs.

Create a distribution list to departments in the hotel and

identify which reports each may need.

Slide 31
Class activity

Using the departures report on the next slide, identify

what information from the departures report would
each of these departments need to know:

 Breakfast restaurant

 Room Service

 Housekeeping

 Porters

 Security.

Slide 32
Class activity

Slide 33
4.3 Monitor and evaluate night auditing duties to
provide feedback to management on
opportunities for improvement
 Reports available on time

 Reconciliation of financial transactions for accuracy

 No guest complaints

 Accuracy of posting

 Training of cashiers

 External auditors or regulators.

Slide 34