Vishwanath, Singh & Associates Internal Audit Heritage Village Club, Goa

Chartered Accountants Apr 10 Sep 10: Audit Note 10

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AUDIT NOTE 10

HOUSEKEEPING DEPARTMENT
The Manager-Housekeeping,
Heritage Village Club
Unit of Select Holiday Resorts Pvt. Ltd.
Goa
For the attention of Ms. Beenu John

Mam,
We have reviewed the records of Housekeeping Department pertaining to the period 1
st
April
2010 to 30
th
September 2010 on test check basis and our observations regarding the same are
mentioned below in two parts: Summary of observations and Detailed Observations.

A. SUMMARY OF OBSERVATIONS

a. Physical verification of Housekeeping store conducted on 9 December 2010.
b. Book records could not be traced for some of the items found in the stores.
c. Variations observed in the linen inventory conducted on 10 December 2010.
d. Courier Slips not attached in case of lost and found goods couriered to guest.
e. Laundry forms are not serially numbered.
f. Some of the items were not issued as per the quantity requested by the room boys.

Vishwanath, Singh & Associates Internal Audit Heritage Village Club, Goa
Chartered Accountants Apr 10 Sep 10: Audit Note 10

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B. DETAILED OBSERVATIONS

1. We have physically verified the housekeeping store on 9 December 2010 at 13:10 hrs on
test check basis and found some variations which are given below for your reference:
Items
As per Physical
Verification
As per
Records
Excess /
(Short)
Creamer Sachets 304 332 -28
Odonil 0 5 -5
Taski R2 (ltr.) 0 4 -4
Disposal Slippers 6 9 -3
Checklist Book 1 2 -1
Moisturizer 53 52 1
Dental Kit 3 2 1
Room Attendant Slip 1 0 1
Laundry Bag 42 40 2
Match Box 43 41 2
Shampoo Bottle 28 26 2
Herbal Soap 30g 146 144 2
Floating Candle 65 62 3
Binbag 102 80 22
Cook Caps 50 26 24

HODs Comment/Remarks

Will try n minimize the shortages?


2. While conducting the physical verification of Housekeeping store we found certain items
which were not found/recorded in the stock records. Cases are given below for your
reference:

a. Caps : 6 these caps are used by staff working at the poolside not
purchased by the hotel.left behind by guest.
b. Dustbin : 1 sample dustbin purchased rusted so kept in the store
c. Bud Vase : 5 old brown bud vases not in use in any outlet kept in stores
d. Soap dish : 1 its a chipped soapdish, will be thrown away
e. Tumbler Glass : 32 table dcor of casa rosa tee light holder kept in the store requsited
from stores
Vishwanath, Singh & Associates Internal Audit Heritage Village Club, Goa
Chartered Accountants Apr 10 Sep 10: Audit Note 10

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f. Lime a way : 2.5 Ltr. Its an engineering requsited item taken for use and will be
returned back.
g. Iron Board : 1 Its a guest on request item.it features on the asset list kept by
Accounts.
h.
HODs Comment/Remarks

Reply mentioned in red against each point


3. We have physically verified the Rooms Linen on 10

December 2010 on test check basis and
found some variation which are given below for your reference:
S.No. Particulars
As per
Physical
Verification
As per
Records
Variance
1 Single B/s (plain) 128 172 -44
2 Double B/s (plain) 19 29 -10
3 Single Filler cover (plain) 105 172 -67
4 Double Filler cover (plain) 35 12 23
5 Pillows Cover (plain) 180 993 -813
6 Single B/s (stripes) 105 150 -45
7 Double B/s (stripes) 52 65 -13
8 Single Filler cover (stripes) 98 141 -43
9 Double Filler cover (stripes) 51 66 -15
10 Pillows Cover (stripes) 369 534 -165
11 Hand Towel 293 457 -164
12 Bath Towel 378 494 -116
13 Bath Mat 199 249 -50
14 Shower Curtain 149 233 -84
15 White Curtain 125 64 61
16 Pool Towel 141 319 -178
17 Pillows 402 328 74
18 Matress Protector 143 116 27
19 Matress Protector(Double) 13 39 -26
20 Small cushions with Cover 194 193 1
21 Bolster with Cover 150 144 6
22 Curtain Heavy 344 270 74
23 Cushion Big with cover 6 124 -118

Vishwanath, Singh & Associates Internal Audit Heritage Village Club, Goa
Chartered Accountants Apr 10 Sep 10: Audit Note 10

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On the other hand, management conducted the physical verification of Room Linen on 21
December 2010 and found variations which are mentioned below for your reference:

S.No. Particulars
As per
Physical
Verification
As per
Records
Variance
1 Single B/s (plain) 164 172 -8
2 Double B/s (plain) 30 29 1
3 Single Filler cover (plain) 171 172 -1
4 Double Filler cover (plain) 12 12 0
5 Pillows Cover (plain) 909 993 -84
6 Single B/s (stripes) 206 200 6
7 Double B/s (stripes) 64 65 -1
8 Single Filler cover (stripes) 166 166 0
9 Double Filler cover (stripes) 70 66 4
10 Pillows Cover (stripes) 612 634 -22
11 Hand Towel 390 457 -67
12 Bath Towel 477 494 -17
13 Bath Mat 248 249 -1
14 Shower Curtain 144 145 -1
15 White Curtain 154 154 0
16 Pillows 390 328 62
17 Mattress Protector 116 116 0
18 Mattress Protector(Double) 37 39 -2
19 Small cushions with Cover 186 193 -7
20 Bolster with Cover 144 144 0
21 Curtain Heavy + Stixhed 388 389 -1

The difference of variations between the inventory taken by us and by the management
needs to be explained.
HODs Comment/Remarks
The difference of variations between the inventory taken by auditors n us was predicted
because if all areas are not counted at the same time there is movement of linen which results
in a difference. A detailed count was taken after the audit difference was shown which could
be verified.


Vishwanath, Singh & Associates Internal Audit Heritage Village Club, Goa
Chartered Accountants Apr 10 Sep 10: Audit Note 10

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4. We have physically verified the Food & Beverage Linen on 10 December 2010 on test check
basis and found some variation which are given below for your reference:


F&B Linen
(Napkins)
As per
Records
As per Physical
verification
Excess/
(Short)
White 509 328 -181
Yellow 121 130 9
Blue 168 141 -27

HODs Comment/Remarks

Its been informed to the concerned department to minimise the shortages


5. While reviewing the lost and found record maintained by the department it was observed
that when such goods are handed over to the Front Office for courier to respective guest
the detail of courier was not mentioned in lost and found records. It is advised to the
department to attach the courier slips for such entries for better control.

HODs Comment/Remarks

The courier details are handled by the accounts when the front office informs the guest
address contact etc. if a copy of the same needs to be maintained will do so henceforth



6. It was noted that laundry forms used by the department is not serially numbered. It is
advised to the department to have serial numbers assigned to such forms for better control
of such forms.

Laundry forms if serially numbered would be difficult to track cos the lists are replenished on
consumption.guest use will not be serially.
HODs Comment/Remarks

Vishwanath, Singh & Associates Internal Audit Heritage Village Club, Goa
Chartered Accountants Apr 10 Sep 10: Audit Note 10

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7. While reviewing the Daily Room Boys Checklist we found that some items were not issued
by the department to the cluster boys. It is advised to maintain minimum level of stock in
the department for urgent situations. Some cases are given below for your reference:
Sl No. Cluster Date Item Description Qty Requested
1 101-112 3-Apr-10 Tea Bag 20
2 314-325 6-Apr-10 Bathroom Card 5
3 114-126 7-Apr-10 Tea Bag 16
4 201-212 7-Apr-10 Sugar 20
5 101-112 8-Apr-10 Sewing Kit 1
6 101-112 8-Apr-10 Laundry Bag 2
7 101-112 28-Apr-10 Match Box 2
8 101-112 28-Apr-10 Coaster 8
9 114-126 28-Apr-10 Moisturizer 4
10 100-118 29-Apr-10 Disposal Bag 5
11 314-325 29-Apr-10 Coaster 5
12 501-512 30-Apr-10 Moisturizer 2
13 501-512 30-Apr-10 Scotch Brite 1

HODs Comment/Remarks

Issueing of items are done very minimal so that wastage /spoilage is reduced.point taken and
will check the same does not feature on the checklists






Thanking you,
Yours truly,

Swati Prakash
Vishwanath, Singh & Associates Internal Audit Heritage Village Club, Goa
Chartered Accountants Apr 10 Sep 10: Audit Note 10

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Internal Auditors- Vishwanath, Singh & Associates
CC: 1) Manager-Housekeeping
2) Financial Controller
3) Manager -Accounts