UNDERSTANDING OF REVENUE:

Movenpick Hotel conducts three significant hospitality & leisure activities & likewise, generates Revenue from all
three of them, namely:

1. Revenue from Room Rentals (Room Income)

2. Revenue from Food & Beverages (F&B Income)
3. Revenue from Other Operated Departments (MOD Income)

OTHER OPERATED DEPARTMENTS:

OTHER OPERATED DEPARTMENTS include various other revenue streamlines, which arent significant but when
clubbed together to form a gross amount of Revenue for the current FY, makes up to form significant value. These
are as follows:

1. Revenue from Business Centre operations,

2. Revenue from Health Club/Spa operations,
3. Revenue from provision of Internet Facilties (provided other than the internet facilities through Business
Centre),
4. Revenue from Laundry Shop operations (laundry services provided to external customers through an outlet
maintained within Hotel premises),
5. Revenue from provision of Telephone & Fax Facilities (provided other than the telephone & fax facilities
through Business Centre),
6. Revenue from provision of In-house Laundry Services (laundry services provided to clients resident within
the Hotel premises at any point in time),
7. Revenue from provision of Transportation Facilities (logistics available to the clients resident within the
Hotel premises, through Rent-a-Car services, however the Rent-a-Car Faciltiy isnt a self-operated business activity
by Movenpick. Movenpick maintains a rented outlet of Rent-a-Car within the Hotel & refers the clients to the vendor
against some %age of Car Rental as commission, agreed upon between the Hotel & vendor beforehand.
Nevertheless, there exist other Rent-a-Car vendors too with whom Movenpick has entered into a contract of
commission based revenue through referring out Hotel clients & charging a commission to them),
8. Revenue from other income-generation activities (such revenue includes those that Movenpick Hotel raises
through the Shop Rentals from those rented-out premises to external vendors & the Revenue from sale of flowers,
gifts, accessories etc upon the requisition generated by customers on case to case basis).

Other Operated Departments is further divided into three categories;

A. Laundry / Press services
B. Fitness Center / Health Club
C. Business Centre
D. All other Miscellaneous Income

A. Laundry/Press Services:
This service is available to room guests as well as outsiders (who are not using hotel room).
If room guests want to give their clothes for laundry/press, then they call guest service center who then
forwards the call to laundry. Laundry personnel receive clothes from the room and collects laundry list
voucher filled by guests, laundry list vouchers are already placed in the rooms as standard. Laundry
personnel then takes the clothes to laundry area and gives one copy of laundry list to employee who
enters the details in their software Micros and prints 3 copies of laundry check and give one copy of
such check to the reception which is provided to customer along with the customer folio at the time of
check out, retains one copy and sends one copy to finance department for record purpose. [CONTROL
ACTIVITY: REVENUE 01].
At the end of the day, Mr. Naveed-Ur-Rehman (Laundry Shop Keeper) prepares laundry summary sheet
which comprises details of all the laundry received during the day, which is compared with the laundry list
voucher. [CONTROL ACTIVITY: REVENUE 02].
If outsiders want to give their clothes for Laundry/Press, then they take their clothes to the laundry shop
located at the staff entrance of hotel. Laundry shop personnel prepares laundry list voucher and gives one
copy to the customer and sends other copy along with the clothes to the laundry Department. At the time
of collecting laundry, Laundry shop employee enters details into the system and prints 3 copies of laundry
check and gives one copy to customer on receipt of payment, sends one to business center for their
record and sends one copy to finance department for their record. [CONTROL ACTIVITY: REVENUE 03].

B. Fitness Center/Health club

It includes services like swimming pool, massage centre, Sauna, Gym, tennis and aerobics.
For membership, customer fills out the form at the fitness center and provides NIC copy and 2
photographs. After filling the form fitness center personnel makes a voucher and sends 1 copy to
finance and retains one copy and one for customer.
Fitness center employee makes Miscellaneous voucher and sends one copy to front desk to record in
Opera, retains one copy and gives one copy to customer. [CONTROL ACTIVITY: REVENUE 04]
One of the fitness center personnel goes with the customer to the cashier for the payment and gives
the printed receipt from the cashier to the customer if not a room guests, otherwise at the time of
checkout and also retains one copy for their record. [CONTROL ACTIVITY: REVENUE 05].
Revenue is recorded by the cashier who prepares the Miscellaneous voucher, posts the entry of such
amount in Opera and sends Miscellaneous voucher to income & internal auditor Mr. Malik Rashid who
reviews it and retains it for record purpose. For all the members and hotel guests, services other than
massage and coaching services are free.
For non-members, customer has to pay for every service they want, for example. If customer wants to
use gym, then he goes to gym reception. At the reception, the fitness center personnel makes a
miscellaneous voucher ( 3 copies, one for cashier ,one for finance, and one for their record) and goes
along with the customer to the cashier, gives one copy of the receipt to the cashier for payment and
receives payment from the customer and gives printed receipt to the customer. Then customer can
avail such service. Also gives one copy of voucher to finance dept. for their record.
At the end of the day, Healthclub staff makes a summary of log book for the day for their own control and
for the night auditor who will compares the log book data with the Opera. Log book is a book in which all
the services provided during the day are recorded for their own control. [CONTROL ACTIVITY: REVENUE
06]

C. Business Centre & Other Miscellaneous Income

Business Centre is a service outlet located behind reception on ground floor of the Movenpick Hotel which
provides telephone call , Photocopy, printing, fax and internet facility to all in house guests staying in
rooms as well as to other guests (like guests visiting for lunch or dinner). MOD covers internet, printing and
photocopy revenues.
 Internet
Internet access is free of cost through an open WiFi network accessible in the entire hotel premises.
However, if a guest has no WiFi device available in order to use the internet, he may either visit
business center for using the charged internet service.
Business Center employee makes Miscellaneous Voucher (3 copies), retains one copy of voucher for
their record, gives one copy of voucher to front office for recording in Opera and sends one copy of
voucher to finance department.
In case customer wants to access internet directly through business center, he may either opt for
cash payment or charged to room. If opting for the cash payment, then Business Centre personnel
prepares a cash voucher (3 copies) for the internet package selected by the customer and prints 2
copies of username and password and gives one copy system generated print to the customer and
receives payment from the customer and retains one copy of print and one copy of cash voucher
for their record and gives one copy of cash voucher to finance department for their record and one
copy of cash voucher to front office where the cashier record the revenue in Opera. [CONTROL
ACTIVITY: REVENUE 07] .On the receipt of payment from the customer, business center
personnel deposits the money to cashier and receives the receipt which is provided to the customer.
If charging to room, then same Business Center employee makes Miscellaneous Voucher (3 copies)
and gives one copy of print to customer, retains one copy of print and voucher for their record and
gives one copy of voucher to front desk for recording in the system and sends one copy of voucher
to finance department.[CONTROL ACTIVITY: REVENUE 08].
Printing, and photocopy
For printing and photocopy, same procedure as above is applied.
Business center executive enters all the billing information in a summary in MS Excel for their
control and at the time night auditor come, Executive signs the summary and gives a copy to night
auditor who compares the revenue recorded in the Opera and the Excel sheet prepared by them..

For all other Miscellaneous Incomes, same procedure is followed, where a Miscellaneous Voucher is
produced against the services availed by the Customer or in case if theres some sale of Scrap from the
Hotel or the sale of Foreign Currency, where Exchange Gains are realized [CONTROL ACTIVITY:
REVENUE 07].
 The relevant Department maintains a Summary Sheet of the complete Day, which is based on the
individual vouchers generated throughout the day. The Sheet is cross-matched with all the invoices at
the end of the day & ensured that all the vouchers have been incorporated. [CONTROL ACTIVITY:
REVENUE 08]

The Voucher is settled by the Customer in case of services consumed by the Customer, at the reception
of the hotel, & the Voucher is posted manually to Opera by the Income & Internal Auditor at the end of
each day. [CONTROL ACTIVITY: REVENUE 09].

ROLE OF THE NIGHT AUDITORS:

Night Auditors of the Hotel is the Hotel Staff deployed by the management for the purpose of performing certain assignments & responsibilities in
relation to the accounting & recognition process of Revenue within the General Ledger. The activity of Night Auditors are performed on daily basis,
& their shift or working hours begin from 12:00 midnight to 8:00 am. Some of the significant activities of Night Auditors include:

1. Spot Checking of House Banks (Cash-in-Hand), Front Office & Restaurants (Cash held at Counter or Cash Till),
2. Sorting of Customers Room Folios who have checked-out during the entire day (Check-Out Folios),
3. Balancing of Credit Cards (currently Visa & MasterCard are only accepted at Hotel), Revenues from MOD, Rebates claimed during the entire
day,
4. Breakdown of Packages offered within Banquets Reservations,
5. Check & inquire for any Exceptions within Room Rate Variance Report & Zero Rates within the Report,
6. Creation of charge of Revenue through the Customers Folios for the Room Rental of the day (the charge is produced by the Night Auditor as
another separate Folio is generated for the day on account of Rooms Income, & another day is accumulated within the cumulative Customers
Folio),
7. Generation of various Reports for reporting & compliance-check purposes,
8. Associated emails to various key management personnel, e.g. GM, DOF etc.

The Night Auditor runs a Pre-Trial Transaction Report, where it checks & cross-matches every transaction that appears within the Pre-Trial Report
with the source documents, i.e. Customers Folios, Vouchers, slips in case of receipts through Credit Card, cash receipts through physical count of
Cash-in-Hand, supports of the Rebates allowed during the day etc [CONTROL ACTIVITY: REVENUE 10].

Subsequently, the Night Auditor runs the automatic & built-in process of extracting relevant data & details from the Customers Profile Folio &
posting them to relevant Account Codes within Sales Ledger, all executed within the Opera Systems. The amounts of Revenue & associated Sales
Tax has been charged in case of Rooms Income through the Opera Systems, which is now only due to be transferred to the Financial Accounting
Software of the entity. Revenue is triggered within the Financial Reporting Process of the entity once the process is run. A Final Daily Trial Balance
Report is generated in the end by the Night Auditor which shows & balances the complete amount of Revenue & Receipts during the entire day, &
posts the cumulative balance of all transactions pertaining to a specific account code, through creating a batch of all identical transactions.
Another Daily Managers Flash Report is also generated by the Night Auditor, which shows the Gross Amounts of Revenue category-wise [IT
CONTROL ACTIVITY: REVENUE 11].

A standard Checklist in respect of Duties of the Night Auditor is also filled-in by the respective Night Audit personnel. The Checklist accounts for
the complete responsibilities of the Night Auditor, & is reviewed & authorized by Mr Rashid Malik - Income & Internal Auditor [CONTROL
ACTIVITY: REVENUE 12].

At the end of each Business Day, a Daily Revenue Report (DRR) & its related Sales Recap Report is generated by the Night Auditor in
spreadsheet. The DRR is checked, & cross-matched against the Managers Flash Report by Mr Rashid Malik Income & Internal Auditor, as both
the reports demonstrate the Gross Revenues category-wise [CONTROL ACTIVITY: REVENUE 13]. The Sales Recap Report is also checked, &
cross-matched against the Daily Trial Balance Report by Mr Rashid Malik Income & Internal Auditor, as both the reports demonstrate the Gross
Revenue streamline-wise [CONTROL ACTIVITY: REVENUE 14].

The Daily Revenue Report (DRR) & related Sales Recap Report is also reviewed & authorised by Mr Shoaib Ahmad Deputy Director Finance
[CONTROL ACTIVITY: REVENUE 15].

RECORDING OF REVENUE WITHIN FINANCIAL ACCOUNTING SOFTWARE OF THE HOTEL:

The Hotel deploys a Financial Reporting ERP named as Micro Fidelity Financials (MFF) for the purpose of Financial Accounting & Reporting. The
Financial ERP is integrated with the front-desk ERP software, Opera through an interface already established & configured between the two ERPs.
The Night Auditor produces batches of transactions with identical account codes, all of which pertain to Revenue based transactions. Such
batches have unique account codes which are recognised by MFF, in order to feed the complete batch of a certain day within the General Ledger
of the entity. Mr Rashid Malik Income & Internal Auditor imports the batches of the last day upon the very next morning of the day, through the
application of certain commands within the ERP. MFF feeds the account balances to the General Ledger in accordance with the codes of those
accounts which owe balances. The Batch Post to General Ledger is finally reviewed & authorized by Ms Anila Shahabuddin Assistant Accounts
Manager, where she approves the batch after she ensures that accurate balances are transferred from Opera to MFF [CONTROL ACTIVITY:
REVENUE 16].

MODES OF PAYMENT ACCEPTED AT THE HOTEL:

The Hotel accepts cash, cheques, Debit & Credit Cards against the settlement of invoices. Some of the commonly-held & traded Foreign
Currencies are also accepted against payments. Such currencies include USD, GBP, Euros, Saudi Riyal, UAE Dirham etc. The Hotel has a
mutually agreed policy of accepting foreign currencies at a discounted exchange rate of 5% than the open market rate of the day. The
management justifies that it isnt a Foreign Currency Broker by business, & needs to cover itself against the Exchange Rate Risk of fluctuations
which would affect its Revenue streams, once the foreign currencies accepted by the Hotel depreciates against the PKR.

SYSTEM-GENERATED REPORTS & IPEs REQUIRED DURING THE COURSE OF AUDIT:

The Reports which would be required from the client & used as an IPE, during the audit of Rooms Income are as follows:

1. Opera Rooms Revenue Journal: This is a detailed Rooms Revenue Report generated at the transaction level, & for a complete month,
through the Opera Systems.

2. Daily Trial Balance Report: This is a final Trial Balance Report generated at clubbed accounts level, for a complete day, through the Opera
systems, upon which is dependent the Batch Post of Revenue for that entire day.

3. Daily Revenue Report (DRR): This is a summarized Revenue Report produced by Night Auditor, which demonstrates Gross Revenues
according to the categories as defined by the entity.

4. Managers Flash Report: This is also a summarized Revenue Report generated by Night Auditor, alongwith the Final Trial Balance Report,
which also demonstrates Gross Revenues according to the categories as defined by the entity.