Deli Group of Hotels Project Audit.
Introduction:
Macpherson Auditors and Co. have completed an audit of the Food and Beverage Services department of the Deli Group of Hotels Co. for the fiscal year 2013. The department has an internal project that involves expansion to new locations, grow its customer base, and increase revenues. The aim of project audit was to identify key weaknesses in the management and control within the department through analysis and evaluation of key risk factors, and the controls set in place to identify and mitigate risks.
Current Status:
The food and beverage services department handles all activities regarding food and beverages presentation, order taking, customer services, and collection of feedback from the guests. The department reported a total sales revenue of $150 million, and a net income of $45 million for the fiscal year 2013. The department employs 940 employees who include managers, chefs, helpers, waiters and security staff. There are 40 operational branches across 10 locations and 4 cities. An estimated 7 million guests dined at the outlets, and over 35 million meals were served in the fiscal year 2013.
Future Project Status:
The food and beverage services department is expected to hit the $200 million record sales revenue in the fiscal year 2014, and it plans to unveil 7 new outlets across 3 new locations. The department also plans to increase the number of menu items following a demand by guests frequenting the hotels. A loyalty card for regular visitors offering attractive discounts is also to be unveiled.
Critical Management Issues: During the audit review, it was noted that 5 out of the 40 outlets were being mismanaged and that the staff working in these centers were under-trained. This resulted in wastage of food materials, poor service, customer complaints, and consequently low revenue realization.
Risk Analysis and Management:
Risk analysis involved study of the operating statements, balance sheet, cash flow statement, and conducting a physical inventory of food items, beverages, and other documentation. The risks identified were untrained workers and food wastage leading to poor service delivery. This could be dealt with by implementing training and mentoring program for new staff, and use of better food preservation methods to prevent wastage and loss of quality.
Final Comments:
It is expected that Deli Group of Hotels will achieve and even surpass their expected revenues if proper risk mitigation and management is implemented. The proposed creation of new outlets in different locations and the loyalty card reward scheme are also expected to grow their customer base and encourage consistent growth of the company’s revenue streams.
References:
Field, M., & Keller, L. (1998). Project management. London: International Thomson Business Press.
