1. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 1 7100. General Accounting Procedures, 7139 Auditing Telephone Invoices A. The Purpose of This Policy This policy describes the special procedures we use to audit and pay the Company's long-distance telephone invoices. By auditing our telephone invoices we can assure that our call-accounting systems are working properly and that we are not overcharged by the telephone companies. Continue ►

2. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 2 7100. General Accounting Procedures, 7139 Auditing Telephone Invoices B. Responsibility The assistant general manager and guest services manager (or, in the absence of those positions, the general manager) are responsible for the following:  Assuring telephone invoices are thoroughly audited before their approval for payment.  Assuring that only the correct amounts due are paid to telephone companies.  Assuring that posting problems of our call-accounting system are immediately scheduled for repair. Continue ►

3. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 3 7100. General Accounting Procedures, 7139 Auditing Telephone Invoices C. Procedures for Auditing Telephone Invoices Upon receipt of a telephone invoice, proceed as follows: 1. Stamp the invoice "Received“. 2. Examine the section listing long-distance calls. Check to be certain that all telephone numbers listed in this section should have outgoing long-distance calls. For example, a telephone line dedicated for the fire alarm or for incoming computer modem calls should not be listed here. If such a telephone line is listed in this section, someone is improperly using that line for long-distance calls. Continue ►

4. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 4 7100. General Accounting Procedures, 7139 Auditing Telephone Invoices C. Procedures for Auditing Telephone Invoices (cont.) 3. Analyze the daily listings of telephone calls. This section tells you the daily cost of telephone calls. Have a guest service agent or night auditor write the daily long-distance telephone revenue next to each day's cost. Except for the cost of administrative calls, you should see a consistent ratio of daily long- distance cost to daily long-distance revenue. That ratio should be consistent with your long-distance pricing policy. Continue ►

5. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 5 7100. General Accounting Procedures, 7139 Auditing Telephone Invoices C. Procedures for Auditing Telephone Invoices (cont.) 4. Review the time of day of long-distance calls. If you see many calls between midnight and 6:00 A.M., employees may have made these calls. 5. Review all calls 20 minutes or more in duration. Often unauthorized calls by employees are this long. If you see reoccurring telephone numbers and/or cities listed here, you may have an employee violating telephone policies. 6. Give the invoice to a guest service agent or night auditor to thoroughly audit each call according to the procedures described in following section. Continue ►

6. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 6 7100. General Accounting Procedures, 7139 Auditing Telephone Invoices D. Audit Procedure for a Guest Service Agent or Night Auditor A guest service agent, night auditor or other person assigned thoroughly audits the long-distance telephone invoice within two days of receiving the assignment. Use the following procedure: 1. Check the dates covered by this invoice. Get the daily telephone call-accounting reports for the dates of the invoice. 2. One-by-one check each call listed in the invoice's section titled "1+ Call Detail." Find the revenue for each call on the call- accounting report. a. If the call is listed on the call-accounting report, check the revenue posted against the cost shown on the invoice. Check to be certain the ratio of the cost to the revenue for each call is reasonable. If not, tell your supervisor. If yes, check it off. Continue ►

7. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 7 7100. General Accounting Procedures, 7139 Auditing Telephone Invoices D. Audit Procedure for a Guest Service Agent or Night Auditor b. If the call is on the invoice, but not listed on the call- accounting report, tell your supervisor. 3. Make a note beside each listed call to show whether the call was from a guestroom or administrative extension. 4. Total the cost of all administrative calls. Total the cost of all guestroom calls. Write both totals on the face of the invoice. 5. On the face of the invoice write, "Audited by" and sign your name. 6. Return the audited invoice to the general manager. End

8. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 8 7100. General Accounting Procedures, 7139 Auditing Telephone Invoices