Bank: Operation Bank Account

Objective :

Bank accounts should be established as necessary and practical to hotel operations as required by the terms of the management contract. All bank accounts must be opened in the name of Hotel’s Name.

Procedure :

1. Usage of Bank Accounts 

1. All Gross Revenue shall be deposited in the Bank Account.

2. All items paid by virtue of Manager’s operation of the Hotel shall be paid from the Bank Account as defined in the management contract including:

• Operating Costs 

• Operating Equipment 

• Operating Supplies

3. Only Owner and Manager’s designees shall be authorized to operate and draw from the Bank Account.

2. Cheque Approvals

1. TWO approved signatures with the Finance Seal are required on all Company cheques regardless of the amount. The approval signature will be in the following groupings :

Group "A" - the General Manager or the Executive Assistant Manager 

Group "B" - the Financial Controller or the Assistant Financial Controller 

2. All cheques must bear the signature of one group "A" approver and one group "B" approve, without exception. Two "A" signatures or two "B" signatures are not acceptable. The bank letter/resolution must be worded to reflect this requirement.

3. Documentation of Disbursements by Cheque 

1. All disbursements must be accompanied by documentation supporting the transaction. The documentation may include invoices, receipts, and purchase orders, receiving records or other documents to validate the transaction.

2. All documentation supporting the transaction must indicate cancellation at the time of the cheque is prepared and signed. This will prevent reuse or misuse of the documents, and provide a cross-reference to the cheque payment.

3. The actual cash journal entry should be made from the supporting documents authorizing the cheque payment. With this procedure, the bank account reconciliation will provide an independent verification of the cheque amounts versus the document amounts.

4. Cheque Security 

1. Unused cheques must be stored in a lockable drawer, cabinet or similar device and access must be limited to the Director of Finance & Business Support and the assigned custodian (Assistant Director of Finance & Business Support).

2. Periodically, unused cheque stock should be physically verified by the Director of Finance & Business Support to ensure that all remaining cheques are accounted for. Missing cheques must be reported to the bank immediately and a “stop payment” issued.

3. Cheques may not, under any circumstance, be signed “in blank” by either cheque signer.

5. Cheque Preparation and Usage

1. Bank cheques must be pre-numbered and used in strict numerical sequence.

2. “Void” cheques must not be record with “CANCELLED CROSS NOTE”, to avoid missing and easy to control.

3. To prevent alteration, cheques must be prepared in indelible ink, and shall indicate the amount in number and words.

4. To easy monitor all Cheque Used, the “Separate Page of Cheque” have reconcile with sign control by the Director of Finance & Business Support.

6. Account Balance 

It is the Director of Finance & Business Support’s responsibility to monitor the general operating account balance in order to preclude or minimize overdrafts caused by unnecessary bank charges and remit balances in excess of the Hotel’s operating requirements.