GENERAL MANAGER MANUAL (DELEGATION OF AUTHORITY)

DELEGATION OF AUTHORITY    

ABSENCE OF GENERAL MANAGER

·         Prior to any prolonged absence (in principle, more than 48 hours); the General Manager must designate his replacement. The replacement should be the Deputy General Manager / Executive Assistant Manager or, where this position does not exist, one of the Department Heads.

REPLACEMENT OF THE GENERAL MANAGER

·         The General Manager should always prepare in advance the Delegation of authorities which he intends to accord during his absence to his replacement or replacements. The delegation of authorities must be sufficient to ensure that the person or persons holding those powers can run the Hotel effectively during the absence of the General Manager.

·         The delegation should nevertheless be limited to the administration of day-to-day affairs, as mentioned above. In the event of a major decision, and if the replacement or replacements should be unable to contact the General Manager, the matter should be to be submitted to the XXXXXXXXXXX CEO prior to decision.

·         Delegations of authorities given by the General Manager do not in any way affect his overall responsibility with respect to XXXXXXXXXXX. Nevertheless, in cases of a delegation of authority in the absence of the General Manager, the delegate may be held responsible for the Hotel.

Communication to Staff

In the event of several delegations, the staff must be informed of the exact breakdown of authority between those holding delegations. Staff members must co-operate with the replacement or replacements of the General Manager exactly as if he were present in the Hotel.

Communication to Head Office

Before leaving the Hotel, the General Manager must inform the XXXXXXXXXXX CEO of his intention to leave, in conformance with General Manager's absence procedure.

Communication to Owning Company

The Presidents of the Owning Company or Operating Company should be informed of any delegation of authority granted for the temporary absence of the General Manager. In principle, they should be to be advised in this regard by the General Manager 72 hours before he leaves, except in case of emergency. Nevertheless, due notice may be accepted in some cases.

SPECIFIC RESPONSIBILITIES

ADMINISTRATIVE, FINANCIAL AND ACCOUNTING CONTROLS

·         The role of a General Manager consists of three basic duties:

·         Planning

·         Management

·         Control

·         Financial matters should be delegated to the Hotel Financial Controller, as set out in the Financial Control Manual. The responsibilities of the Financial Controller should be as follows:

Accounting Controls

·         Accounting controls consist in the application of accepted accounting principles in the form of book entries, book-keeping, record-keeping and journal-keeping, the preparation of balance sheets and P& L statements, taxation, etc. The Financial Controller should be responsible to the GM and ultimately to the Xxxxxxxxxxx International Indonesia Finance Director.

·         Although the General Manager does not have any direct involvement in actual accounting procedures, he must alert the XXXXXXXXXXX CEO, Director of Finance or Director of Operations if he has any doubt that they are not being properly performed.

Financial Controls

These controls can be broken down into the following categories:

·         Cash-in-hand

·         Bank accounts

·         Accounts receivable

·         Loans

·         The General Manager should be jointly responsible with the Financial Controller for their proper performance. The General Manager must check on a regular basis the manner in which these Procedures should be performed and controls which govern them should be properly applied.

Administrative Controls

This concerns the following:

·         Budget controls of expenditures and investments.

·         Control of productivity (manpower levels and manpower costs).

·         All internal controls (Cash, Income, Keys, etc.).

·         The General Manager should examine the monthly internal control report with the Financial Controller to monitor the application of hotel internal controls.

·         Control of employment contracts and legislation in force.

OTHER RESPONSIBILITIES IN A NUT SHELL

VARIOUS

Written Approval of Basic Accounting Documents.

·         This approval may be delegated to the Executive Assistant Manager.

·         Payment Vouchers

·         Petty cash expenditures

·         Payroll records (each page).

·         Overtime

·         Hiring and payment of part-time help

·         Disciplinary suspensions, dismissals

·         Discounts and reductions

·         Special room prices and reductions

·         Complimentary services

·         Housing of employees in the Hotel for reasons of work.

·         All order forms

·         Invitations and gifts

·         Set up of the Following Procedures within the Context of XXXXXXXXXXX Policies

·         Credit agreements

·         Policy concerning deposits (advanced payments)

·         Debt collection

·         Matters concerning business law

·         Disbursements to guests: authorization and responsibility.

·         Other Procedures:

·         Salary advances: avoid advances of more than one month's salary, reimbursable over several months.

·         Invitations

·         Employee meals, employee pre-requisites

·         Banquet prices

·         Opening mail and listing cheques received in the mail

·         Record and filing systems

·         Purchasing

·         Security system for passkeys

·         Exchange rates and foreign currencies

·         Reports, declarations; legal and indemnification for losses or damage.

·         Licenses

·         The above lists should be not exhaustive, but serve as a guideline. Some should be highlighted in the following chapters where pertinent.

REPORTS

DAILY REPORTS

·         The Hotel Financial Controller in agreement with the General Manager should prepare a daily report issued from the Property Management System (PMS) with a forecast and year-on-year comparisons for key Revenue results and Statistics. A copy of this report should be distributed to all Heads of Department and service.

·         Whenever possible, Heads of Department should be able to view the daily report on their Property Management System terminal. This should economize on paper and photocopies.

Monthly Forecasts

·         The financial report and monthly forecasts should be essential tools for the improvement for managing the business. The monthly forecasts should be sent to the XXXXXXXXXXX CEO and Director of Operations by E-mail every Friday. They should contain the forecasts for the coming 3 months, a month by month actual and latest forecast for the year as well as an updated cash flow report. Input for these forecasts should come from the property DOS, FC and GM. Any anomalies in the receipts or in the costs and expenditures should be highlighted in this report and the General Manager should then analyze the cause of the deviation and determine corrective action to be taken.

·         The monthly forecasts, together with the budgeting system, allow the Financial Controller to take all corrective action necessary for reassigning resources based on a re-estimated volume of activity.

·         Any deviation (estimate/budget) greater than 5% requires an explanation by the General Manager, both as to the causes of the expected deviation and as to the corrective action to be taken.

PROCEDURE

·         Each department supervisor should determine their volume of activity on receipt of this information, and calculate the level of personnel costs and expenditure.

·         The Financial Controller should be to assist in the establishment and monitoring of the expenditure information.

·         The data should be analyzed by the General Manager and discussed during a meeting of department supervisors.