• HOSPA

Are you Auditing or Interpreting Hotel Accounts in 2016 - Part 9 - Operated Departments Revenues

As mentioned in Part 5, hotel management accounts generally adopt a departmental structure that allocates revenues, direct and indirect costs in a way to reflect either responsibilities or the major activity centres of the operation.


As this involves allocating revenues, cost of sales, labour costs and other expenses, it is important to know the bases for these.  Users of the Uniform System of Accounts will have followed the Revenue and Expense Guide that forms part of the publication.  There is also a guide to Departmental Payroll Tittles within the Operating Statements section.

For each department, the USALI sets out the criteria for the reporting schedules. The reporting system is primarily geared to full service, city type, hotels and some difficulties can arise as to how to make the relevant allocations. Users need to be aware of the most significant of these.


This part of the series will make reference to some of the most important examples.


Allocation of Departmental and Inclusive Price Revenues

This is probably the most complex of the issues for users of the USALI.