Conduct A Night Audit: D1.HFO - CL2.06 Trainee Manual

Conduct a night audit
D1.HFO.CL2.06
Trainee Manual
D1.HFO.CL2.06
Trainee Manual
Project Base
William Angliss Institute of TAFE

555 La Trobe Street
Melbourne 3000 Victoria
Telephone: (03) 9606 2111
Facsimile: (03) 9670 1330
Acknowledgements
Project Director: Wayne Crosbie

Chief Writer: Alan Hickman
Subject Writers: Evelyn Collins and Linda Wilson
Project Manager/Editor: Alan Maguire
DTP/Production: Daniel Chee, Mai Vu, Jirayu Thangcharoensamut
© William Angliss Institute of TAFE 2012

All rights reserved. No part of this publication may be reproduced, repackaged, stored in a retrieval
system or transmitted in any form by any means whatsoever without the prior permission of the
copyright owner.
This booklet was produced by William Angliss Institute of TAFE to be used for the ASEAN Australia
Development Cooperation Program (AADCP) Phase II: “Toolbox Development for Tourism Divisions:
Front Office, Food & Beverage Services, Food Production” Project.
Disclaimer
Every effort has been made to ensure that this booklet is free from errors or omissions. However, you
should conduct your own enquiries and seek professional advice before relying on any fact, statement
or matter contained in this book. William Angliss Institute of TAFE is not responsible for any injury, loss
or damage as a result of material included or omitted from this course. Information in this module is
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Table of contents
Introduction to trainee manual........................................................................................... 1

Unit descriptor................................................................................................................... 3
Assessment matrix ........................................................................................................... 5
Glossary ........................................................................................................................... 7
Element 1: Identify the role of a night auditor .................................................................... 9
Element 2: Process internal financial transactions .......................................................... 19
Element 3: Verify occupancy position of the property ...................................................... 29
Element 4: Contribute to management decisions ............................................................ 35
Presentation of written work ............................................................................................ 41
Recommended reading................................................................................................... 43
Trainee evaluation sheet................................................................................................. 45
© ASEAN 2012
Trainee Manual
© ASEAN 2012
Trainee Manual
Introduction to trainee manual

To the Trainee
Congratulations on joining this course. This Trainee Manual is one part of a „toolbox‟
which is a resource provided to trainees, trainers and assessors to help you become
competent in various areas of your work.
The „toolbox‟ consists of three elements:
A Trainee Manual for you to read and study at home or in class
A Trainer Guide with Power Point slides to help your Trainer explain the content of the
training material and provide class activities to help with practice
An Assessment Manual which provides your Assessor with oral and written questions
and other assessment tasks to establish whether or not you have achieved
competency.
The first thing you may notice is that this training program and the information you find in
the Trainee Manual seems different to the textbooks you have used previously. This is
because the method of instruction and examination is different. The method used is called
Competency based training (CBT) and Competency based assessment (CBA). CBT and
CBA is the training and assessment system chosen by ASEAN (Association of South-
East Asian Nations) to train people to work in the tourism and hospitality industry
throughout all the ASEAN member states.
What is the CBT and CBA system and why has it been adopted by ASEAN?
CBT is a way of training that concentrates on what a worker can do or is required to do at
work. The aim is of the training is to enable trainees to perform tasks and duties at a
standard expected by employers. CBT seeks to develop the skills, knowledge and
attitudes (or recognise the ones the trainee already possesses) to achieve the required
competency standard. ASEAN has adopted the CBT/CBA training system as it is able to
produce the type of worker that industry is looking for and this therefore increases
trainees chances of obtaining employment.
CBA involves collecting evidence and making a judgement of the extent to which a worker
can perform his/her duties at the required competency standard. Where a trainee can
already demonstrate a degree of competency, either due to prior training or work
experience, a process of „Recognition of Prior Learning‟ (RPL) is available to trainees to
recognise this. Please speak to your trainer about RPL if you think this applies to you.
What is a competency standard?
Competency standards are descriptions of the skills and knowledge required to perform a
task or activity at the level of a required standard.
242 competency standards for the tourism and hospitality industries throughout the
ASEAN region have been developed to cover all the knowledge, skills and attitudes
required to work in the following occupational areas:
Housekeeping
Food Production
Food and Beverage Service
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Trainee Manual 1
Front Office
Travel Agencies
Tour Operations.
All of these competency standards are available for you to look at. In fact you will find a
summary of each one at the beginning of each Trainee Manual under the heading „Unit
Descriptor‟. The unit descriptor describes the content of the unit you will be studying in the
Trainee Manual and provides a table of contents which are divided up into „Elements‟ and
„Performance Criteria”. An element is a description of one aspect of what has to be
achieved in the workplace. The „Performance Criteria‟ below each element details the
level of performance that needs to be demonstrated to be declared competent.
There are other components of the competency standard:
Unit Title: statement about what is to be done in the workplace
Unit Number: unique number identifying the particular competency
Nominal hours: number of classroom or practical hours usually needed to complete
the competency. We call them „nominal‟ hours because they can vary e.g. sometimes
it will take an individual less time to complete a unit of competency because he/she
has prior knowledge or work experience in that area.
The final heading you will see before you start reading the Trainee Manual is the
„Assessment Matrix‟. Competency based assessment requires trainees to be assessed in
at least 2 – 3 different ways, one of which must be practical. This section outlines three
ways assessment can be carried out and includes work projects, written questions and
oral questions. The matrix is designed to show you which performance criteria will be
assessed and how they will be assessed. Your trainer and/or assessor may also use
other assessment methods including „Observation Checklist‟ and „Third Party Statement‟.
An observation checklist is a way of recording how you perform at work and a third party
statement is a statement by a supervisor or employer about the degree of competence
they believe you have achieved. This can be based on observing your workplace
performance, inspecting your work or gaining feedback from fellow workers.
Your trainer and/or assessor may use other methods to assess you such as:
Journals
Oral presentations
Role plays
Log books
Group projects
Practical demonstrations.
Remember your trainer is there to help you succeed and become competent. Please feel
free to ask him or her for more explanation of what you have just read and of what is
expected from you and best wishes for your future studies and future career in tourism
and hospitality.
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Unit descriptor
Unit descriptor
This unit deals with the skills and knowledge required to Conduct a night audit in a range
of settings within the hotel and travel industries workplace context.
Unit Code:
D1.HFO.CL2.06
Nominal Hours:
25 hours
Element 1: Identify the role of a night auditor

Performance Criteria
1.1 Describe the activities undertaken by a night auditor
1.2 Describe the responsibilities of a night auditor
1.3 Locate the position of night auditor within the enterprise
1.4 Identify the experience required by a night auditor
1.5 Interpret enterprise policies and procedures that apply to the delivery of night auditor
functions
1.6 Identify and explain the role of communication in night auditor activities
Element 2: Process internal financial transactions

2.1 Verify that all relevant financial transactions have been posted
2.2 Validate transactions and charges that have been posted
2.3 Post charges to guest accounts
2.4 Reconcile posting of transactions within the areas of responsibility
2.5 Identify and resolve discrepancies in the posting of internal charges
2.6 Implement requirements of internal financial systems and controls
2.7 Check room status and reconcile variations
2.8 Secure, record and prepare funds for banking
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Unit descriptor
Element 3: Verify occupancy position of the property

3.1 Check and validate room status
3.2 Investigate discrepancies in room status
3.3 Adjust internal records to reflect actual room status
Element 4: Contribute to management decisions

4.1 Prepare management and operational reports
4.2 Distribute reports internally according to enterprise requirements
4.3 Monitor and evaluate night auditing duties to provide feedback to management on
opportunities for improvement
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Assessment matrix
Assessment matrix
Showing mapping of Performance Criteria against Work Projects, Written
Questions and Oral Questions
Work Written Oral

Projects Questions Questions
Describe the activities undertaken by a night

1.1 1.1 1 1
auditor
1.2 Describe the responsibilities of a night auditor 1.2 3 2
Locate the position of night auditor within the

1.3 1.3 2,6 3
enterprise
Identify the experience required by a night

1.4 1.4 1,2,7 4
auditor
Interpret enterprise policies and procedures

1.5 that apply to the delivery of night auditor 1.5 4 5
functions
Identify and explain the role of communication

1.6 1.6 5 6
in night auditor activities
Verify that all relevant financial transactions

2.1 2.1 8 7
have been posted
Validate transactions and charges that have

2.2 2.2 9 8
been posted
2.3 Post charges to guest accounts 2.3 10,11 9
Reconcile posting of transactions within the

2.4 2.4 12,13 10
areas of responsibility
Identify and resolve discrepancies in the 13,14,

2.5 2.5 11
posting of internal charges 15
Implement requirements of internal financial 16,17,

2.6 2.6 12
systems and controls 18,19
2.7 Check room status and reconcile variations 2.7 20 13
2.8 Secure, record and prepare funds for banking 2.8 21 14
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Assessment matrix
Work Written Oral

Projects Questions Questions
3.1 Check and validate room status 3.1 22 15
3.2 Investigate discrepancies in room status 3.2 23,24 16
Adjust internal records to reflect actual room 3.2 25,26

3.3 17
status
4.1 Prepare management and operational reports 4.1 27 18
Distribute reports internally according to

4.2 4.2 28,29 19
enterprise requirements
Monitor and evaluate night auditing duties to

4.3 provide feedback to management on 4.3 30 20
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Glossary
Glossary
Term Explanation
Person who controls the accuracy of guests and non

Night Auditor guests accounts and provides reception service
overnight.
Auditing is the process of checking and reviewing all

Auditing financial and non-financial transactions to determine
their accuracy.
Recording the details of a financial transaction such as a

Posting
charge or a payment on a guest‟s account.
Settlement or payment of the guest account, usually at

Account Settlement
the time of departure.
Total of all monies owed to the venue by entities other

Accounts receivable
than in-house guests.
Accounts payable Money owed by the venue.
Pre-payments made by the guest, usually to secure a

Advanced Deposits
reservation for a room.
An electronic or computer system (PMS: Property

Automated systems management system) requiring a minimum amount of
handwritten information.
Average daily rate Measures the average rate earned for each room sold.
The summarised amounts for the cash, credit cards,

Banking report cheques, foreign currency and EFTPOS taken for the
day.
A book keeping term referring to the accounting book or

books where summarised details of transactions are first
Journal
entered. Journal entries are later transferred or posted to
ledgers.
Setting out procedures for managing the likelihood of

Risk management
risk within the hotel operation.
Room Status Status of all the rooms in the hotel at any point in time.
An account or record of guest charge and personal

Guest folio
details.
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Glossary
Term Explanation
Small fridge or area in the hotel room where food and

Mini bar beverages are stored. Guests are charged to use this
product.
Property management system - computerised front

PMS
office system used within an accommodation hotel.
Checking the codes and numbers of an account to make

Validation
sure it is correct.
Discrepancies Errors that can occur.
Docket Another term used to describe a record of a transaction.
A specified amount of money broken down into various

Float
denominations used by cashiers during their shift.
A fee paid to an agency (usually a specified percentage)

Commission
as compensation for generating business to the hotel
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Element 1:
Identify the role of a night auditor
1.1 Describe the activities undertaken by a night
auditor
Introduction
Night auditing is a control procedure which is undertaken on a regular basis to ensure
accuracy of guest and non-guest accounts. It is also called the „end-of-day close‟ or „end-
of-day processing‟. This process is usually conducted overnight on the 23:00 - 07.30hrs
shifts.
The transactions and records may relate to arrivals
and departures, food and beverage, mini-bar, laundry
and other services, inter-departmental vouchers,
foreign currency activities and all types of payment.
The Night Auditor will have to identify and rectify
discrepancies which may relate to incorrect posting,
errors in guest folios, computer errors and errors in
source documentation. The work will impact on a
number of financial systems including petty cash,
floats, debt or control and banking procedures.
The Night Auditor will also have to prepare reports which may relate to occupancy, sales
performance, breakdown by department, commission earnings, supplier activity, sales
returns, commercial account activity and foreign currency activities.
The activities undertaken by a night auditor

The main function of the night auditor's role is to audit the financial transactions; the
process of checking and reviewing all financial and non-financial transactions to
determine accuracy. The process of night audit usually occurs during the overnight shift
and will also require the night auditor to fulfil some reception duties, possibly also
cashiering, portering and even room service or housekeeping duties.
The main activities of the night auditor are to identify any errors, correct them and ensure
all guest accounts and departmental charges are accurate. The Night Auditor will
reconcile all financial transactions in the establishment, reconcile the cash registers
balancing all transactions and, when the audit is complete, roll over the business date and
post the nights‟ accommodation charges.
The night auditor will also produce a number of reports which allow the other departments
to plan their activities. These reports include projected occupancy reports, arrival and
departure reports, departmental revenue reports and in-house guest list to name a few.
Generally a hotel or resort with an electronic cashiering system will post charges to a
guest account at the time of consumption through a Point Of Sale [POS] system; charges
are posted directly to a guest‟s account.
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Properties without a POS system will have a cash register at the outlet to process the
guest charge and then each department will transfer the charges incurred that shift to the
front office or front office cashier who would then post them to the guests‟ folio.
There are several internal management reports which will be generated, such as the
Arrival and departures report, no show reports, the trace or special request or a
departmental report.
It is up to the night auditor to post the room rate each night to all room accounts and
report any discrepancy. The Room Rate Variance report, which provides a listing of all
occupied rooms sorted by room rate code, is used to verify room rate.
It is important to check room rate variances so that the correct rate is posted to each room
and therefore reflected correctly in the daily revenue and occupancy figure.
The night auditor may have to provide general front
office services, including check-in and check-out of
guests, dealing with room allocation, account
settlement and other specific guest services related
to accommodation and rooming requirements. Even
if the night auditor does not undertake any of the
reception tasks, they need to be conversant with
these duties, particularly reception and cashiering
duties, as it is these departments‟ work that the night
auditor is auditing.
The night auditor will be responsible for reconciling the cash and preparing the cash for
banking. This will include counting, sorting and preparing the cashier floats. The float is
the „starting‟ bank; a pre-set combination of notes and coin. The total amount will vary
from location to location; a cashier with EFTPOS capabilities will need a substantial float.
The float is collected, signed for, checked for accuracy and placed in the till drawer ready
for use.
1.2 Describe the responsibilities of a night auditor

Introduction
The night manager would be performing front office manager duties during their shift. The
night auditor would follow the same procedure as other Front Office staff, attending a
briefing or handover, logging on to the computer system, checking for updates and staff
memos. Staff Memos will have information about changes in policy, events or security
alerts.
Responsibilities of a night auditor

A night auditor also takes the duties and responsibilities of the night manager at the front
desk. These include:
Supervising or conducting the security checks within the establishment, checking all
floors and exit doors and public spaces
Collecting the room service orders, especially the breakfast orders, and posting the
charges to the guests‟ accounts
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Prepare express checkout folios or room accounts with appropriate envelope and
have them placed under the door of each room listed as an expected departure for
guests who have requested an express checkout
Process the establishment's newspaper
requirements and place the order
Process any payments, early departures, deposits or
pre-payments
The night auditor will receive and process all the
floats and re-establish the pre-set combination of
notes and coin
At the conclusion of the night audit process, the night
auditor will roll the business date and process the
room charges for the night and then process the in-
house reports for distribution to departmental managers and supervisors
In the case of emergency during the night shift the night auditor would take
responsibility at the premises
In the management role at the front desk the night auditor would be required to deal
with guest queries and complaints
The night auditor would also be responsible for organising night staff meetings and
hand over discussions.
Duties of the Night Auditor

Most businesses conduct an audit monthly or quarterly but accommodation venues audit
each night because of the number of financial transactions and non-financial transactions
in a single day. A hotel or resort may have several different outlets, which can mean many
areas to balance and an increased margin for errors.
Before the night audit can be commenced the night
auditor will process late arrivals and any no shows,
and post all outstanding charges and payments.
Finally the night auditor processes the floats and
balances the shift, collecting all receipts and
batching them, separating them into each type of
charge, cash, credit card or account charge. A
printout of the journal copy for each posting code is
then reconciled against each voucher (or receipt) to
each posting.
If the establishment has an electronic cash register system all source data will be stored
electronically. If not, and the night audit is to be completed manually then departments will
have „deposited‟ their source documents, balance sheets and takings (money) with the
front office at the end of each shift, such as after breakfast, lunch and dinner in the
restaurant or at the end of morning or checkout shift and the afternoon or check- in shift.
Any errors in guest accounts need to be tracked and corrected before the guest departs,
and there is a need to check and monitor any outstanding accounts such as corporate
accounts. Following internal codes of conduct, policies and procedures the night auditor
must ensure that all guest accounts are accurate. Verification that guest account postings
match source documents or electronic records needs to occur and this will also include
posting any late charges such as an overlooked mini bar account.
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After posting all departmental charges a night auditor will take each guest account and
post the accommodation charge and check that the quoted room rate is still applicable.
For example, has the guest asked for extra services that will change the room rate such
as an extra rollaway bed or an extension of stay?
If there is a discrepancy between the guest information and room rate to be charged, the
night auditor must determine which is correct and make appropriate adjustments,
ensuring that the adjustment is documented. A night auditor will also check the status of
each room to ensure the reports are given to Housekeeping, and used by Front Office the
next day in order to accurately reflect whether a room is occupied, vacant, clean or dirty.
The guest folio file will be checked against the final, most up to date, room status report of
the day produced by Reception or Housekeeping. The status of each room on the room
status report will be compared to the guest folio file to see if guest information is filed for
that room.
When using a computerised system the room charge
can be added simultaneously by selecting the "post
room charge option'. When all the departments have
balanced, the record of charges posted that day by
each department is printed and compared to the
departmental totals with the Banking report totals. Any
discrepancies then need to be tracked and corrected.
When this function is conducted on a computer the
system will not continue with the night audit until all
discrepancies are corrected.
The final task of the night audit involves several
internal management reports which will be generated,
such as the arrival and departures report, the trace or
special request or a departmental report.
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1.3 Locate the position of night auditor within the

enterprise
Introduction
The night auditor usually reports to the Front office manager and, because they work
often through the night, a night auditor can also take the night manager‟s position, which
means the night auditor manages the hotel or resort overnight, especially if the general
manager lives off site. The night auditor is responsible for providing management with
reports on the financial activity of each department, reports and statistics of all financial
activity of the establishment and the statistics of guests‟ financial activity. These reports
and statistics will allow a quick response to potential problems or losses and provides
accurate information on which to base business decisions.
Front Office organisational chart
Front Office
Manager
Night Auditor Duty Manager
Reservations
Reception
Revenue Concierge
Cashier
management
Call centre Allotments for

Tour groups & Porter Door person
Telephonist Corporate
Valet Parking
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1.4 Identify the experience required by a night

auditor
Introduction
An important part of the role of the front office and the
night auditor is to maintain the financial records. This
requires numeracy and bookkeeping skills and
accountancy knowledge. Financial records are a set of
accounts that show what income a business has
received and what expenses a business has incurred.
Financial records will also keep track of business assets
and liabilities.
Skills and experience

The night auditor will also need experience with all the duties of the front desk, checking
guests in, allocating rooms and issuing keys, explaining the location of the room and
updating the guest reservation. The correct use of the front office accounting system
includes handling cash and adhering to the cash control procedures and posting of
charges and internal protocols relating to validation of charges and their allocation to the
correct accounts/folios. All types of payment methods will have to be processed, including
corporate accounts with fixed rate contracts. The front office will also require staff to have
competent computer skills to operate a computer based property management system
and to monitor internet bookings. They are need to have the ability to take reservations,
including the operation of the front office reservation and other electronic systems. The
night auditor will also need staff management and guest services skills since as the night
manager the night auditor will need to handle guest complaints or answer guest requests.
1.5 Interpret enterprise policies and procedures

that apply to the delivery of night auditor
functions
Introduction
A Hotel or Resort will establish procedures for managing financial system accuracy and
security to help reduce the likelihood of theft or loss.
Cash transactions
An important feature of cash security is the counting of cash
out of the guests‟ or public‟s view. Cash counting and
balancing procedures are best undertaken in a secure
environment, such as a locked room so the guests don‟t see
the amount of cash. Venues cannot force staff to pay for the
loss of money or other assets because of failure to follow
procedures. It is the venue‟s responsibility to enforce
procedures. However, if loss should occur (because a staff
member didn‟t follow procedure), it is likely to result in disciplinary action against that staff
member.
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Credit policies
The accounts department needs the following information from companies before a credit
facility can be established:
Reference from the company‟s bank
References from other entities with whom they trade (companies already extending
credit)
Company director‟s authority. Company directors must sign the credit application form
stating that if the company becomes insolvent the directors will be personally liable for
any charges not paid.
This information is then passed on to a credit agency that specialises in this type of work.
When approved, it is set up in the establishment‟s
debtor‟s section and given an account code. The
company will be added to the establishment‟s list of
approved companies, which is distributed to the
reservations department. This procedure is important
because it helps reduce the likelihood of a house limit, set
by the venue, which is the amount a guest or company
can charge to their account before some form of payment
must be made.
The credit card companies set a floor limit. A floor limit is a set limit on how much a venue
can allow a guest to charge to their credit card before authorisation by the credit card
company must be sought. House and floor limits are established to reduce the venue‟s
and credit card companies‟ exposure to potential losses. A credit check report is produced
each night. This report lists all the accounts whose totals are near to or in excess of their
limit. Those guests or companies whose credit limit is reached or are in excess are asked
to make a payment (all or some of the outstanding balance) on their account, thereby
ensuring credit is maintained and the establishment does not expose themselves to
losses.
All transactions of the day must be supported by written documentation. This
documentation includes vouchers, receipts, guest folios, dockets, adjustment or correction
slips, printed reports, registration cards, control sheets
and auditing documents or any other source document.
All source documents are kept by the venue for a
minimum of seven years. It is stored for legal reasons
and stored in such a way that it is easy to access and
retrieve. It is usually kept in a bag (referred to as a “day
bag”) or box identified by date and stored in the back
office on a monthly basis. Cashiers and accounts staff
may have to refer to these documents to answer guest
queries. Each month‟s documents are later placed in long-term storage.
All businesses are required to have emergency management and protocols during an
emergency, usually reflected in the organisational chart. For Hotels or Resorts in areas
where natural disasters such as hurricanes, tsunamis, floods or earthquakes may occur,
the venue has to have procedures and policies to ensure the safety and security of guests
and staff. Management need to have comprehensive risk management procedures
documented.
A hotel or resort will usually have procedures to handle situations where guests‟
behaviour is dangerous to themselves or other guests.
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Risk management
What is the process when commencing a night audit run and the
computer goes down? Prior to commencing the run, the night
auditor would have made a back-up copy of all the information
and stored it on a separate disk. Thus if there is a problem it will
only be necessary to input all transactions which have taken place
since the back-up time to make the system‟s information current.
Many computerised systems will automatically print basic reports
on a regular basis in case of a system failure.
In most emergency situations, the front desk or telephonist is called, either by a guest or
colleague. In the event of an emergency, front desk supervisors are responsible for calling
emergency services (the fire brigade, ambulance and police). When receiving information
advising of an accident or illness, it is important to convey information and get assistance.
A regular practice drill needs to be performed to establish all staff know their
responsibilities and routine in case of evacuation. Guests and staff members‟ welfare is
the main priority in a hospitality establishment in the event of an emergency.
Enterprise policies and procedures will cover protocols for the safety and internal security
of guests and property and this may include working with the security staff. The venue will
have security systems including cameras and electronic key use tracking software.
Management staff will have discretionary authority when dealing with guests and
resolving complaints. This may include a complimentary item to a guest whose complaint
is upheld. Staff will have internal rules to follow to protect the image or reputation of the
establishment. Contravention may involve staff management and perhaps a discipline
process. Staff will have protocols to follow when offering discounts or rooms free of
charge.
1.6 Identify and explain the role of communication

in night auditor activities
Introduction
The night auditor will most commonly communicate with printed or written documents, as
the auditor works at night often through the night, and most staff work during the day.
Communication
When a cashier makes or identifies a mistake they generally do not have the authority to
delete any transaction, because there is a need to preserve the audit trail. So if a mistake
is made the cashier will have to perform a negative or reverse posting, removing the
mistake from the guest‟s copy and moving the mistake and the correction to a new
account screen or page. The cashier will complete a correction or adjustment slip which is
either handwritten or added to an electronic account.
As the night manager the night auditor will have all the responsibilities for staff supervision
and instruction with verbal instruction. This will involve running staff meetings or briefings.
The night auditor will communicate with management through the reports and statistics
that are generated and relate to the financial and non-financial activities of the venue.
This information is distributed to staff who need the information to better do their jobs or to
management to be used to make business decisions.
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Work Projects
It is a requirement of this Unit that you complete Work Projects as advised by your
Trainer. You must submit documentation, suitable evidence or other relevant proof of
completion of the project to your Trainer by the agreed date.
1.1 & 1.2 Contact a local Hotel or Resort and request a site visit to observe the night
audit procedure.
1.3 & 1.4 Research, using the internet, hotel or resort organisational charts and identify
two [2] job descriptions for the night auditor and locate their position in the
organisational chart. Who do they report to? Who are they responsible for?
1.5 Research policies for secure money handling and processing and identify
some measures a Hotel can take to prevent mishandling of funds.
1.6 Mrs. Kang has settled her account and departed. The night auditor has to post
a late charge to Mrs. Kang‟s credit card as she neglected to pay for her mini
bar account. Draft an email explaining to Mrs Kang what has been done and
why.
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Summary
Identify the role of a night auditor
Night auditing is a control procedure which is undertaken on a regular basis to ensure accuracy of
guest and non-guest accounts. It is also called the „end-of-day close‟ or „end-of-day processing‟.
The transactions and records may relate to arrivals and departures, food and beverage, mini-bar,
laundry and other services, inter-departmental vouchers, foreign currency activities and all types of
payment. The night auditor will have to identify and rectify discrepancies which may relate to
incorrect posting, errors in guest folios, computer errors and errors in source documentation. The
work will impact on a number of financial systems including petty cash, floats, debtor control and
banking procedures. The night auditor will also have to prepare reports which may relate to
various areas as well as supervising the operation of the Front desk overnight.
The night manager would be performing front office manager duties during their shift.
Accommodation venues audit each night because of the large number of financial transactions
and non-financial transactions in a single day. A hotel or resort may have several different outlets,
which can mean many areas to balance and an increased margin for error.
The night auditor usually reports to the Front office manager and, because they work often
through the night a night auditor can also take the night manager‟s position, which means the
night auditor managers the hotel or resort overnight, especially if the general manager lives off-
site.
An important part of the role of the front office and the night auditor is to maintain the financial
records. This requires numeracy and bookkeeping skills and accountancy knowledge. The night
auditor will also need experience with all the duties of the front desk and be competent to manage
the reception staff who work the night shift.
A Hotel or Resort will establish procedures for managing financial system accuracy and security to
help reduce the likelihood of theft or loss. Enterprise policies and procedures will cover protocols
for the safety and internal security of guests and property. This may include working with the
security staff.
The night auditor will most commonly communicate with management in writing through the
reports and statistics.
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Element 2:
Process internal financial
transactions
2.1 Verify that all relevant financial transactions
have been posted
Introduction
The night auditor will check all financial transactions
and verify that all charges have been posted
accurately. Guest may make advanced deposits to
secure their booking. This may be part of the room
charge or the guest may pay the whole amount of the
room charge. These payments have to be posted
onto the guest account putting the account into credit
until the guest arrives and then the night auditor will
post a room charge.
Financial transactions
Guests who choose to pay with cash will be asked to pay for their accommodation and
leave a security deposit at check-in. During the guests stay they may pay off part of their
account and each payment means an adjustment to the guest account and receipts
generated to verify the posting.
If guests leave credit card details or charge account details this is a secure or guaranteed
method of payment and ensures the venue will be paid. These guests will be able to
charge items to their room accounts, such as food and beverage, entertainment, room
service, mini bar, gift shops, sporting facilities, disbursements, laundry, functions, meeting
rooms and then settle at check-out by authorising payment. The posting will normally be
done at the point of sale verified with a transaction number or receipt number.
Once a night auditor has completed posting charges to guest accounts he/she will check
the outstanding balance or amount owed on each guest folio. This is then compared to
the establishment‟s predetermined floor limit for each method of payment specified by the
guest on check-in. If any accounts are over the limit the guests must be contacted first
thing in the morning.
If a guest has booked with a travel agent or taken a package deal the hotel will issue a
voucher for use to secure services such as breakfast or a meal in a restaurant. Some
guests may use gift cards or vouchers to pay for services. These still need to be
processed through a cash register to establish an audit trail and verify the payment.
Complimentary services or services offered free of charge may be offered as part of a
complaint settlement or as part of a package deal. Once again these services need to be
processed through the cashier system to establish the audit trail. Vouchers or
complimentary certificates need to be checked for currency or expiry date.
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2.2 Validate transactions and charges that have

been posted
Introduction
All transactions should be traceable through an audit trail. This means a transaction will
have a code or number attached which identifies it individually. In a hotel or resort the
transaction is either paid and a receipt issued or signed for with a hard copy signature or
an electronic signature or perhaps by pin number or password.
Validation
Transactions are validated by checking the code or numbering system of an item on a
guest account and linking it to a hard copy or electronic cash register record which will
also include a time stamp and server ID. This ensures allocation of monies and charges
to correct accounts, departments and budget and forecast reports.
The night auditor may take a representative sample of guest accounts and individually
check them for accuracy of charges and validate the record. As a hotel or resort has
many guests a computerised system will also check but the night auditor has to factor in
human error in data entry. Often a guest will pick up a mistake at the point of sale or when
they check their advanced bill and question a charge.
All charges made through the hotel‟s system will have a transaction code or identification
and a docket or reference number or code ensuring only legitimate charges are posted.
Non-monetary charges also need to be validated to credit or debit the correct supplier of
the complimentary service or free of charge item.
Posting screen from Micros Fidelio OPERA PMS
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2.3 Post charges to guest accounts

Introduction
The various departments in the venue keep track of those goods and services consumed
by guests. Adding charges or payments is called 'Posting' to the guest account. Posting
charges to guest accounts includes operating the in-house system to record legitimate
charges against appropriate guest accounts.
Posting
Posting is the record of the details of a financial transaction which can be a charge or a
payment on a guest‟s account. Charges are posted to a guest‟s account when each
department transfers the dockets for charges incurred in the outlet to the front office, or if
the charge has been processed on a POS terminal it is charged directly where it occurred.
Alternatively if processed during the night by the night auditor, this may occur if the guest
has used a service from a third party provider.
A credit charge decreases the balance owed by a guest and a debit charge increases the
balance owed by a guest to a hotel or resort.
All guest charges post to one or more folios once the guest is in-house. In a Computer
Property Management System for example the Micros Fidelio OPERA system, the term
“window” is an alternate name for a folio. We use the term “window” because when
viewing a guest folio to the screen, staff are able to see multiple folios that appear like
windows.
Multiple windows or folios are used if the guest is sharing a room or if a third party is
paying part of the account. For example Mia Lee is cabin crew for a major airline. Her
airline pays for her accommodation and meals when she is away from her home city and
Mia pays for extras such as the in-house movie she watched and the chocolate bar she
ate from the mini bar.
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2.4 Reconcile posting of transactions within the

areas of responsibility
Introduction
Reconciling an account means proving or documenting that an account balance is
correct.
We achieve this by comparing guest accounts with
departmental and cashier reports in hard copy or electronic
form and any source documents.
After posting all charges a night auditor will take each guest
account and post the accommodation charge shown on the
folio. The night auditor will check that the quoted room rate is
still applicable. For example, has the guest asked for extra
services that will change the room rate, for example, an extra
bed or an extra guest sharing the room?
If there is a discrepancy between the guest information and
room rate to be charged, the night auditor must determine
which is correct and make appropriate adjustments, ensuring that the adjustment is
documented. A night auditor will also check the status of each room to ensure the reports
are given to Housekeeping and used by Front Office the next day so as to accurately
reflect whether a room is occupied, vacant, clean or dirty.
The guest folio or account will be checked against the final, most up to date room status
report of the day produced by Reception or Housekeeping. Any discrepancies will be
monitored and fixed.
If the room status report indicates that a room is occupied, there should be guest
information in the guest folio file for that room. A common discrepancy occurs when a
room is shown as occupied on the status report, but there is no information in the guest
file. This generally occurs when an incorrect room number has been written on the guest
folio and the guest information has been misfiled or the guest has been transferred to
another room.
It is up to the night auditor to ascertain which room the guest is occupying. If unable to do
this, the night auditor must leave a message for Housekeeping or Reception explaining
the discrepancy.
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2.5 Identify and resolve discrepancies in the

posting of internal charges
Introduction
Depending on the type of discrepancy located, it is often necessary to record the type and
amount of the discrepancy, especially if the error is on a guest‟s account. Many
establishments use a docket or a voucher called a credit voucher to document the
adjustment. This will record not only the type of charge and amount being corrected, but a
description or explanation as well.
Discrepancies
Discrepancies can be recorded using a guest folio discrepancy report. This records all
discrepancies on guest accounts for one day. At the end of the day the night auditor will
file the report with the rest of the daily documentation for later reference and checking. If
to correct an error a charge needs to be added to a guest‟s account, then the appropriate
docket or electronic comment is used to explain the change.
Some common discrepancies include:
If the guest name does not match room given this is checked with the front Office or
reception desk to check any room changes. The guest may be a share arrangement
and the second name is not listed on the system. The guest may be a 'passer-by' a
day visitor to a guest registered in the house. If the staff cannot confirm the guest as a
registered guest then they will be asked to pay for all services as they are received
If incorrect prices have been posted staff will enter a
correction which is processed when the total charge
for an item is removed from the account. This is
managed by a negative post to a separate window or
folio. If the amount has been entered correctly but
the quantity is incorrect then an adjustment is
processed when the total charge for an item is
altered.
The staff with supervisory status will usually have the authority to complete these
processes.
All guests will have a copy of their account to review either electronically or in hard copy.
This is a policy to check accuracy and adjust any inconsistencies. To resolve incorrect
postings, such as postings to incorrect guest folios, staff will need to remove the charge
and postings cannot be deleted but can be corrected and hidden from the guest account
by a negative post.
To negative post an item is moved to a new window or folio then staff repost the item as a
negative quantity or negative $ amount writing „ Posting error‟ in the „Reference‟ or
supplementary field or section.
If a guest exceeds their house/guest limits with excess charges staff will ask the guest to
settle part or all of the account and may list the guest as „Cash Only‟ until the situation has
been rectified.
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System errors can be difficult, especially with electronic systems. In this case the usual
process is to revert to a manual system. A hard copy template of documents and manual
cashiering systems needs to available as backup.
2.6 Implement requirements of internal financial

systems and controls
Introduction
Internal financial systems and controls designed to keep
strict control over the accounting process are necessary so
that all transactions can be accounted for and so that the
venue does not lose money through theft or poor control.
All transactions of the day must be supported with written
documentation and include vouchers, receipts, guest
folios, dockets, registration cards and any source
documents to name a few. All cash monies need to be
counted and kept in a secure location.
Cashiers float
The float is signed out at the beginning of a cashier‟s shift
and signed in at the end of the shift to help the venue keep track of the location of all
floats and to reduce the likelihood of loss. It also makes people accountable for their float.
Balancing the cash register at the end of a shift, and submitting the monies and receipts,
will enable monitoring of the accuracy in transactions. Some establishments do blind drop
and a third party checks and balances the cash register monies. This may include
checking petty cash allocations and receipts for accuracy. EFTPOS machines and
computerised cashiering systems will produce an internal check identifying any
imbalances.
Docket control
Docket control is a financial control system that helps keep track of all dockets issued to
guests by the venue. Many venues maintain a docket numbering system to ensure that all
dockets are accounted for, even those that are subsequently cancelled. In those venues
where this occurs, it is not uncommon to find that the night auditor is responsible for
accurately recording the numerical sequence of the dockets issued to each department
each day. That department then becomes responsible for the dockets issued to them on a
daily basis. Each docket must be used to record charges incurred by guests. Spare
dockets are returned to the night auditor at the end of the trading day along with any
cancelled dockets. Each of the venue‟s outlets completes a control sheet, issued with the
actual dockets, on which all docket numbers are listed. As a docket is used, the cashier in
that venue records on the control sheet the transaction details in a similar way to the
information contained on any other source document. While docket control procedures
seem tedious, it does help reduce the opportunity for theft or fraud on behalf of
establishment employees.
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Debtor control
While night audit is often responsible for identifying and reporting to management those
accounts that have reached or exceeded their credit limit, it is not usually their
responsibility for the follow up of unpaid accounts. In cases of a guaranteed booking
where the hotel has payment details then staff post a late charge or a delayed charge. A
delayed charge would be recorded on a guest‟s account after a guest‟s departure.
Delayed charges are sometimes necessary because not all charges reach reception
before the guest checks out.
At the end of each month, a statement for company accounts (city ledgers) is sent to each
company with an outstanding account balance. Credit terms, when companies are
expected to settle, are usually 7, 14 or 30 days. The statement will list all charges incurred
during the past 30 days, any payments received, and any outstanding balance from
previous accounting periods.
If a guest departs and the venue then learns that a guest has outstanding charges, if it is
less than $10.00 for a local guest or $50.00 for an overseas guest, then the venue will not
seek restitution. Instead, the venue will “write off” the lost revenue, usually because of the
cost involved in retrieving payment. Also, the effect of sending an incorrect account to a
guest may not be worth the money the establishment may receive.
2.7 Check room status and reconcile variations

Introduction
If the room status report indicates that a room is occupied, there should be guest
information in the guest folio file for that room.
Reconcile Variations
A common discrepancy occurs when a room is
shown as occupied on the status report, but there
is no information in the guest file. This generally
occurs when an incorrect room number has been
written on the guest folio and the guest information
has been misfiled or the guest has been transferred
to another room. Since the Room Charge is posted
to all registered guests, it is necessary to check
that all rooms have the correct rate attached. Some
guest's rates change during their stay. For
example, a convention attendee may stay after the
convention concludes and the convention rate
finishes and the standard rack rate is charged.
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2.8 Secure, record and prepare funds for banking

Introduction
The banking report contains the summarised
amounts for the cash, credit cards, cheques,
foreign currency and EFTPOS transactions
managed during that shift. The night auditor would
have checked all balances recording „unders‟ and
„overs‟. „Unders‟ refers to having less physical
money than the computer says we should have.
„Overs‟ refers to having more physical money than
the computer says we should have.
Prepare Funds
Before funds are taken to the bank a banking summary needs to be completed. This
summarises the amounts of cash, credit cards, cheques, foreign currency and EFTPOS
taken for the day or banking period. The amount of the float is removed from the cash
takings of the day and the total amounts are written on a banking envelope. The cash
amounts by denomination are written on the banking envelope and the amounts and other
documentation are placed inside.
The Banking report is included and the funds are ready to be placed in the banking
satchel or bag and banked.
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Work Projects
2.1 Detail the financial transactions that need to be verified.
2.2 Describe the purpose of validating transactions that have been posted.
2.3 What sort of companies provide systems that allow charges to be posted to guests‟
accounts? Use the internet for assistance
2.4 In your own words, describe the process of reconciling transactions posted.
2.5 Identify and resolve discrepancies in the posting of internal charges.
2.6 Research the Cashier‟s Float
How much money is there?

How do they change foreign currency?
How is it reimbursed?
2.7 Discuss the term „Room Status‟ from a hospitality point of view.
2.8 Research secure banking funds:
What types are there?

How secure are they?
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Summary
Process internal financial transactions
The night auditor will check all financial transactions and verify that all charges have been posted
accurately. Guests may make advanced deposits to secure their booking. This may be part of the
room charge or the guest may pay the whole amount of the room charge. These payments have
to be posted on to the guest account, putting the account into credit until the guest arrives and
then the night auditor will post a room charge.
All transactions should be traceable through an audit trail. This means a transaction will have a
code or number attached which identifies it individually. In a hotel or resort the transaction is either
paid and a receipt issued or signed for with a hard copy signature or an E signature or perhaps by
PIN number or password.
The various departments in the venue keep track of those goods and services consumed by
guests, adding charges. This is called 'Posting' to the guest account. Posting charges to guest
accounts includes operating the in-house system to record legitimate charges against appropriate
guest accounts.
Reconciling an account means proving or documenting that an account balance is correct.
We achieve this by comparing guest accounts with departmental and cashiers‟ reports hard or
electronic copy and any source documents.
After posting all charges a night auditor will examine each guest account and post the
accommodation charge shown on the folio. The night auditor will check that the quoted room rate
is still applicable. For example, has the guest asked for extra services that will change the room
rate - an extra bed, an extra guest sharing the room?
Depending on the type of discrepancy located, it is often necessary to record the type and amount
of the discrepancy, especially if the error is on a guest‟s account. Many establishments use a
docket or a voucher called a credit voucher to document the adjustment. This will record not only
the type of charge and amount being corrected, but a description or explanation as well.
Internal financial systems and controls keep strict control over the accounting process and are
necessary so that all transactions can be accounted for and so that the venue does not lose
money through theft or poor control. All transactions of the day must be supported with written
documentation and include vouchers, receipts, guest folios, dockets, registration cards and any
source documents to name a few. All cash monies need to be counted and kept in a secure
location.
If the room status report indicates that a room is occupied, there should be guest information in
the guest folio file for that room.
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Element 3:
Verify occupancy position of the
property
3.1 Check and validate room status
Introduction
Part of a night auditor‟s duties is to prepare operational reports of an informative and
statistical nature. These are used by both staff and management in the daily running of
the establishment.
When compiling reports the night auditor will perform a
number of simple, basic calculations using standard
industry formulas to produce the statistics required.
The basic statistics used include:
Occupancy Percentage
Double or Multiple Room Occupancy
Average Room Rate
Average Rate per Guest.
Where there is a computerised system many of these
statistics will be calculated automatically.
Occupancy
This measures the percentage of rooms occupied or sold in a property. It can be used to:
Indicate how successfully the Sales and Front Office staff are selling rooms
Measure the volume of business generated by guests in revenue-producing
departments, comparing sales figures with the occupancy
Provide information for management on which to base budgetary considerations.
The formula to calculate Occupancy Percentage is:
No. of rooms occupied

x 100 = Occupancy Percentage
Total no. of rooms available
Example
The occupancy rate of a hotel which has 141 rooms occupied of its 186 available rooms
is: 141/186 x 100 = 76%
It must be remembered that room occupancy may be calculated differently according to
the way in which out-of-order rooms and free-of-charge rooms are handled. Find out what
the policy is in your establishment before calculating room occupancy figures.
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Double or multiple room occupancy

This statistic is used to determine linen and guest amenity requirements, food and
beverage stock requirements and potential revenue in outlets. There are two methods for
calculating this ratio:
Option 1
Number of guests - Number of rooms occupied

x 100 = Multiple occupancy %
Number of rooms occupied
Example
(198 - 141)/ 141 x100 = 40.4% of all occupied rooms have more than one person in them
Option 2
Number of paid guests

= Average guests per room occupied
Number of rooms occupied
Example
198/141 = 1.4 guests per room
Average room rate

It is used to show how much, on average, each occupied room is generating in revenue
and is a very important statistic when forecasting future room revenue. It is used to
determine sales strategies and marketing promotions.
The formula is:
Net room revenue/Number of rooms occupied = Average room rate
Example
The average room rate per room occupied is based upon the total amount of revenue
divided by the number of rooms that were occupied.
$22,500/141 = $159.57
Average rate per guest

Indicates how much, on average, each guest spends or pays for accommodation. It can
be used to show spending patterns of particular types of guests, especially when used in
conjunction with Food and Beverage information. This statistic is not used as frequently
as occupancy percentage and average room rate.
Net rooms revenue/ Number of guests = Average rate per guest
Example
The average rate per guest is based upon the total amount of rooms revenue divided by
the number of guests staying in the hotel.
$22,500/198 = $113.64
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3.2 Investigate discrepancies in room status

Introduction
If there is a discrepancy between the guest information and room rate to be charged, the
night auditor must determine which is correct and make appropriate adjustments,
ensuring that the adjustment is documented. A night auditor will also check the status of
each room to ensure the reports given to Housekeeping (and used by Front Office the
next day) accurately reflect whether a room is occupied, vacant, clean or dirty.
Discrepancy
The guest folio file will be checked against the final, most up-to-date, room status report of
the day produced by Reception or Housekeeping. The status of each room on the room
status report will be compared to the guest folio file to see if guest information is filed for
that room.
If the room status report indicates that a
room is occupied, there should be guest
information in the guest folio file for that
room. A common discrepancy occurs
when a room is shown as occupied on the
status report, but there is no information in
the guest file. This generally occurs when
an incorrect room number has been
written on the guest folio and the guest
information has been misfiled or the guest
has been transferred to another room. It is
up to the night auditor to ascertain which
room the guest is occupying. If unable to
do this, the night auditor must leave a
message for Housekeeping or Reception
explaining the discrepancy.
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3.3 Adjust internal records to reflect actual room

status
Introduction
The room status report provides details of the state of
each room. This can be linked to the movement report
which shows actual departures and expected arrivals.
Internal records will reflect actual room status. Room
status files are constantly updated as the front office
checks people in and out and housekeeping update the
rooms ready for sale.
Room Status
All guests who are registered in the establishment are included in the „In-house Guest
List‟. It lists basic details of guests such as arrival and departure dates, room and folio
number, number of guests, special packages and any other details deemed necessary by
an establishment.
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.
Room status is checked against registration
and reservation documentation and is often
printed for reference and electronic files are
frequently updated and offer an accurate list
of rooms available for sale. Other operational
reports reflecting room occupancy, such as
housekeeping reports which may include „in-
house activity report‟, „departure report‟, are
used in conjunction with the room status
reports.
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Work Projects
3.1 Research why Room Occupancy is an important statistic to know
3.2 & 3.3 Discuss the meaning of Room Status
List all the terminology used to describe the status of rooms
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Summary
Verify occupancy position of the property
Part of a night auditor‟s duties is to prepare operational reports of an informative and statistical
nature. These are used by both staff and management in the daily running of the establishment.
If there is a discrepancy between the guest information and room rate to be charged, the night
auditor must determine which is correct and make appropriate adjustments, ensuring that the
adjustment is documented.
The room status list will indicate which rooms in the establishment are vacant clean or dirty,
occupied clean or dirty, out or order or currently being serviced. Room status is checked against
registration and reservation documentation and is often printed for reference. Electronic files are
frequently updated and offer an accurate list of rooms available for sale.
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Element 4:
Contribute to management decisions
4.1 Prepare management and operational reports
Introduction
The best method of communicating information is in the form of
reports. The actual creation of reports will depend on who needs
to know what information. Morning shifts will require different
information to afternoon shifts. Apart from the room status report
there are:
Daily room revenue summary report
To provide a summary of accommodation revenue and the number of guests staying in
the property.
Daily revenue report
Is a summary of all revenue earned in the property that day. It can also be called the Daily
Operations Report or Daily Activity Report or the sales and performance report, including
foreign currency activity.
In-house activity report
This report is prepared for staff information in all areas of the establishment. It indicates
the number and type of guests arriving, staying and departing the establishment that day.
It will often indicate major groups, conferences or other activities taking place within the
establishment.
The in-house activity report will also include outlining rooms occupied, expected
departures and stayovers, expected arrivals, walk-ins and no-shows, rooms available,
percentage occupancy by room and beds, free of charge (FOC) rooms, out-of-order
rooms and single and multiple occupancy.
Arrival and departure lists
This is an essential report for Housekeeping and Front Office. It is sometimes compiled as
two separate reports depending on the size of the property and the number of arrivals and
departures. This includes a special packages report to record the number of packages
and type of packages booked.
In-house guest list
This report lists all guests who are registered in the establishment. It lists basic details of
guests such as arrival and departure dates, room and folio number, number of guests,
special packages and any other details deemed necessary by an establishment.
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Special requests report

This lists all special requests required by guests and is detailed by department. For
example, if a guest needs a rollaway bed it would go to housekeeping's report. The
electronic system provides an accurate „trace‟ report for each department. A trace is an
electronic message to request a service from a specific department.
Commission-related reports
This may include items such as travel agents commission report and lists all commissions
payable for the reservations they have booked. This report is supplied to travel agents
and third party booking agents to confirm commissions paid.
4.2 Distribute reports internally according to

enterprise requirements
The final duty of the night audit shift is the generation and distribution of activity reports
which summarise the financial trading period, usually corresponding to the statement of
financial performance and identifying statistical information about current and expected
occupancy and forecasting projections
The reports are distributed to specific departments depending
on requirements and planning needs within the venue.
Departments use these reports for forecasting staff needs,
planning rosters, planning renovations, and purchasing
supplies. For example the room service butlers need to
receive the expected arrivals report to identify any expected
VIPs so that rooms and amenities are all ready. Food and
beverage may need to check on the number of group arrivals
that require special breakfast service and adjust staffing to
meet the need.
Back-up reports have to be done to source the information
needed to bring all transactions up to date in case of
electronic or computer failure. The hotel can still operate
during a computer failure by using these reports and
reverting to a manual system.
Reports may be generated nightly, weekly, monthly, yearly or for any other accounting
period, depending on the information contained in the report and venue requirements.
Reports need to be distributed in a timely manner because they help management do
their jobs. The information contained in the reports is often used to plan operational
activities, set new (sales) targets and plan promotional activities.
The guest feedback report is an important report for management to draw up a profile of
guest patterns. Using this, advertising campaigns can be tailored and targeted to specific
markets. Management can improve facilities and services for guests depending on guest
patterns. Information which may be included in the guest market breakdown:
Source of reservation
Market segment
Postcode of guest
Average rate per guest or market segment
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Length of stay
How guests learned of the establishment - promotional source
Materialisation of travel agent, airline, corporate and group allotment bookings
Number of reservations for package deals.
4.3 Monitor and evaluate night auditing duties to

provide feedback to management on
Generally Hotels and Resorts have a meeting of all departmental heads if not daily then at
least once a week. The departmental heads will meet and compare revenue reports and
other performance indicators. The Night Auditor‟s duties are monitored by management
daily through the timely issuing of these reports and the efficiency and accuracy of the
guest accounts. One of the measures that may be used to evaluate the night auditor‟s
role is the level of customer complaints received about guest charges.
The main function of the night auditor's role is to audit the financial transactions of the
hotel or resort; the process of checking and reviewing all financial and non-financial
transactions to determine the accuracy of the posting process. This may expose bad
practices or difficult procedures. If cashiers are all making the same error, the night
auditor may recommend a change of procedure or an update of system to prevent the
error. Also there may be opportunities for training to improve practices. Some errors may
indicate a need for improved induction of cashiering staff. For example, if a cashier is not
given the correct information and a report is completed in a pink ink it may not be legible
or legal. These documents then
need to be completed with black or
blue ink.
Auditors may be monitored by
external entities such as banking or
government regulators and the
reports that are produced measure
the auditor‟s performance and are
sent to the Hotel or resort
management. These regulators may
Identify issues and set a time frame
for completion.
© ASEAN 2012
Trainee Manual 37
Work Projects
4.1 Prepare a report to identify the number of people who use a particular service or are
grouped for a purpose each day for a week (or a time span recommended by your
Trainer). It could be the number who travel on your bus or train carriage or it could
be the number of people in a hobby class you attend or a religious service.
Categorise your findings and average your figures.
4.2. Research the risk procedures of some local Hotels or check the internet to make a
list of what to do when the computer goes down and you have to perform a manual
night audit.
4.3. Research the banking regulations in your area and establish the requirements for
qualification to conduct a financial audit.
© ASEAN 2012
38 Trainee Manual
Summary
Contribute to management decisions
The best method of communicating information is in the form of reports. The actual creation of
reports will depend on who needs to know what information. Morning shifts will require different
information to afternoon shifts.
The final duty of the night audit shift is the generation and the distribution of activity reports which
summarise the financial trading period usually corresponding to the statement of financial
performance and identifying statistical information about current and expected occupancy and
forecasting projections.
The Night Auditor‟s duties are monitored by the management daily through the timely issuing of
these reports and the efficiency and accuracy of the guest accounts. One of the measures that
may be used to evaluate the night auditor‟s role is the level of customer complaints received about
guest charges.
© ASEAN 2012
Trainee Manual 39
© ASEAN 2012
40 Trainee Manual
Presentation of written work

1. Introduction
It is important for students to present carefully prepared written work. Written presentation
in industry must be professional in appearance and accurate in content. If students
develop good writing skills whilst studying, they are able to easily transfer those skills to
the workplace.
2. Style
Students should write in a style that is simple and concise. Short sentences
and paragraphs are easier to read and understand. It helps to write a plan
and at least one draft of the written work so that the final product will be well
organised. The points presented will then follow a logical sequence and be
relevant. Students should frequently refer to the question asked, to keep „on
track‟. Teachers recognise and are critical of work that does not answer the
question, or is „padded‟ with irrelevant material. In summary, remember to:
Plan ahead
Be clear and concise
Answer the question
Proofread the final draft.
3. Presenting Written Work

Types of written work
Students may be asked to write:
Short and long reports
Essays
Records of interviews
Questionnaires
Business letters
Resumes.
Format
All written work should be presented on A4 paper, single-sided with a left-hand margin. If
work is word-processed, one-and-a-half or double spacing should be used. Handwritten
work must be legible and should also be well spaced to allow for ease of reading. New
paragraphs should not be indented but should be separated by a space. Pages must be
numbered. If headings are also to be numbered, students should use a logical and
sequential system of numbering.
© ASEAN 2012
Trainee Manual 41
Cover Sheet
All written work should be submitted with a cover sheet stapled to the front that contains:
The student‟s name and student number
The name of the class/unit
The due date of the work
The title of the work
The teacher‟s name
A signed declaration that the work does not involve plagiarism.
Keeping a Copy
Students must keep a copy of the written work in case it is lost. This rarely happens but it
can be disastrous if a copy has not been kept.
Inclusive language
This means language that includes every section of the population. For instance, if a
student were to write „A nurse is responsible for the patients in her care at all times‟ it
would be implying that all nurses are female and would be excluding male nurses.
Examples of appropriate language are shown on the right:
Mankind Humankind
Barman/maid Bar attendant
Host/hostess Host
Waiter/waitress Waiter or waiting staff
© ASEAN 2012
42 Trainee Manual
Recommended reading
Recommended reading
Vallen J.J.; Check-in Check-out: Managing Hotel Operations 8th Edition; Pub. Prentice
Hall 2008
Andrews Sudhir; Front Office Management and Operation; Tata McGraw-Hill 2008 Third
edition
Hales Jon; Accounting and Financial analysis in the Hospitality Industry; Elsevier
Butterworth-Heinemann 2005
O’Shannessy; Front office skills a practical approach; Pearson Education 2009 First
edition
Websites:
http://www.bochk.com
http://www.scotiabank.com
http://www.exim.com.my
http://www.micros.com
http://www.emergencyinfoonline.org/3030/informed/informed_5.php.
© ASEAN 2012
Trainee Manual 43
Recommended reading
© ASEAN 2012
44 Trainee Manual
Trainee evaluation sheet

The following statements are about the competency you have just completed.
Don’t Do Not Does Not

Please tick the appropriate box Agree
Know Agree Apply
There was too much in this competency

to cover without rushing.
Most of the competency seemed relevant

to me.
The competency was at the right level for

me.
I got enough help from my trainer.
The amount of activities was sufficient.
The competency allowed me to use my

own initiative.
My training was well-organised.
My trainer had time to answer my

questions.
I understood how I was going to be

assessed.
I was given enough time to practice.
My trainer feedback was useful.
Enough equipment was available and it

worked well.
The activities were too hard for me.
© ASEAN 2012
Trainee Manual 45
The best things about this unit were:
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
The worst things about this unit were:
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
The things you should change in this unit are:
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
© ASEAN 2012
46 Trainee Manual

Conduct A Night Audit: D1.HFO - CL2.06 Trainee Manual

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What is the purpose of this manual?

What is the purpose of this manual?

What are the main elements covered in the manual?

What are the main elements covered in the manual?

Conduct a night audit

William Angliss Institute of TAFE

Project Director: Wayne Crosbie

© William Angliss Institute of TAFE 2012

Introduction to trainee manual........................................................................................... 1

Introduction to trainee manual

Element 1: Identify the role of a night auditor

Element 2: Process internal financial transactions

Element 3: Verify occupancy position of the property

Element 4: Contribute to management decisions

Work Written Oral

Element 1: Identify the role of a night auditor

Describe the activities undertaken by a night

1.2 Describe the responsibilities of a night auditor 1.2 3 2

Locate the position of night auditor within the

Identify the experience required by a night

Interpret enterprise policies and procedures

Identify and explain the role of communication

Element 2: Process internal financial transactions

Verify that all relevant financial transactions

Validate transactions and charges that have

2.3 Post charges to guest accounts 2.3 10,11 9

Reconcile posting of transactions within the

Identify and resolve discrepancies in the 13,14,

Implement requirements of internal financial 16,17,

2.7 Check room status and reconcile variations 2.7 20 13

2.8 Secure, record and prepare funds for banking 2.8 21 14

Work Written Oral

Element 3: Verify occupancy position of the property

3.1 Check and validate room status 3.1 22 15

3.2 Investigate discrepancies in room status 3.2 23,24 16

Adjust internal records to reflect actual room 3.2 25,26

Element 4: Contribute to management decisions

4.1 Prepare management and operational reports 4.1 27 18

Distribute reports internally according to

Monitor and evaluate night auditing duties to

Person who controls the accuracy of guests and non

Auditing is the process of checking and reviewing all

Recording the details of a financial transaction such as a

Settlement or payment of the guest account, usually at

Total of all monies owed to the venue by entities other

Accounts payable Money owed by the venue.

Pre-payments made by the guest, usually to secure a

An electronic or computer system (PMS: Property

The summarised amounts for the cash, credit cards,

A book keeping term referring to the accounting book or

Setting out procedures for managing the likelihood of

An account or record of guest charge and personal

Small fridge or area in the hotel room where food and

Property management system - computerised front

Checking the codes and numbers of an account to make

Discrepancies Errors that can occur.

Docket Another term used to describe a record of a transaction.

A specified amount of money broken down into various

A fee paid to an agency (usually a specified percentage)