I. Introduction Loss Prevention Surveys

Contractors

All operations by contractors engaged in construction, maintenance, installation, repair or

other service on the hotel premises should not violate recognized safety and fire prevention

practices, jeopardize the safety of personnel, or cause damage or loss to the property.

In an effort to make contractors aware of safety and fire prevention policies, each hotel

should develop its own contractor information sheets. This document should specify

minimum safety practices to be met during the performance of their contract. This

document should be signed and retained by both the contractor and General Manager.

All contractors are expected to cooperate and comply with any safety recommendations

outlined by the hotel management, local, state, and federal authorities.

All standards of conduct imposed upon the regular hotel employees should apply to

contractors while working on the property. A copy of said standards should be provided to

the contractor's site supervisor as it should be their responsibility to review it with their

staff.

When contractors are employed, there may be an increased risk to the welfare of the

occupants and damage to buildings and contents. The presence of large quantities of

combustible materials and debris, and ignition sources such as temporary heating devices,

cutting, welding, plumber's torch operations, open fires, and smoking may increase the

potential for fire. The threat of arson may also be greater during construction and

demolition operations due to the on-site availability of combustible materials and potential

open access to the site.

The contractor's employees are generally unfamiliar with the site and often make little

distinction between a construction site and an operating hotel. Depending on the scope of

work, existing fire detection and suppression systems may sometimes be temporarily deactivated,

which increases the risk.

To ensure that no unnecessary fire and security problems arise, both the hotel management

and the contractor should have a thorough understanding of the required contractual

obligations, precautions, instructions and procedures to be followed before and while the

contractor is at work.

General Responsibility

It is the duty of the contractor to ensure that the safety of the hotel, its customers and its staff

are given paramount consideration. The contractor should also be directly responsible for

his sub-contractors. The contractor should consult the hotel's chief engineer before work is

commenced and before leaving the premises.

Premises Protection

III-15

Insurance and Special Conditions

The contractor should provide a certificate of insurance indemnifying the hotel against any

expense, liability, loss, claim or proceeding in respect to any injury or illness of any person

or loss of or damage to property arising out of the work performed by such contractor and/or

its subcontractors. Janko Hospitality LLC should be listed as an additional insured on the

contractor’s certificate of insurance.

The contractor should maintain and similarly cause their sub-contractors to maintain with

insurers of repute such insurance as may be necessary to cover both the contractor's and any

subcontractor's liability. The sum involved should be discussed and agreed with the Risk

Management Department prior to the commencement of any work.

The contractor should be responsible for ensuring that all persons they employ have been

trained in safety matters. This should include a full awareness of the requirements for fire

prevention, the hotel's life safety systems, means of egress and fire alarm procedures. In

addition, all persons should carry the hotel's security passes at all times while on hotel

property.

Insurance Coverage and Notification

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  When a contractor is hired, it is important that management verify the adequacy of the
  
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  contractor's insurance coverages.
  
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  If an impairment to a life safety system is planned, the Risk Management Department
  
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  should be notified. Insurers may charge an additional premium for the increased risk.
  
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  On medium to major contracts, full contract works coverage should be affected and
  
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  insurers of the existing structure notified.
  
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  Notification is not required for minor work, such as a local painter, electrician or
  
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  plumber.
  
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  When a project requires "hot work", i.e. use of blow-torch, welding and cutting, the
  
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  hotel's property insurance carrier should be notified. Written permission should be
  
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  obtained from the hotel's chief engineer prior to the initiation of any "hot work."
  

Safety and Fire Precautions

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  All accidents, however slight, that occur to staff or to guests should be reported
  
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  immediately to the hotel management.
  
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  Sprinklers, fire detectors or any other fire system should not be obstructed or disabled.
  
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  If this is required because of the nature of the job, appropriate measures, such as
  
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  initiation of a fire watch should be implemented.
  
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  When possible, all system impairments to the fire systems should be eliminated at the
  
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  end of each working day.
  
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  Emergency exits, exit access and exit discharge should not be blocked. If physical
  
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  separation between the work site and operative parts of the hotel are erected, then
  
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  exiting should still be possible in order to comply with codes.
  
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  At no time should items or materials be stored in stairwells.
  

Premises Protection

III-16

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  Construction materials and equipment should not be left where guests or staff may trip
  
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  over or collide with them. Any unavoidable, temporary obstruction should be clearly
  
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  identified with a hazard warning.
  

Environmental Factors

Prior to the initiation of work, contractors should be informed of the presence or

suspected presence of ACMs (asbestos containing material) or PCBs (polychorinated

biphenyls containing electrical equipment). Care should be taken to ensure these

materials are not accidentally damaged or released.

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  Hazardous materials spills, such as oil, grease, paint, and other liquids should be
  
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  reported immediately and dealt with in accordance with local, state, and federal
  
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  requirements.
  
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  If roofs are opened, appropriate temporary protection against rain, storms etc. should be
  
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  made.
  

Hot Work Precautions

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  Where gas or electric welding, brazing, cutting, or other hot work is to be done, the
  
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  hotel's Chief Engineer should be informed in advance. No hot work (including the use
  
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  of bitumen boilers, winter heating stoves) may be undertaken without the approval of
  
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  the hotel's Chief Engineer and the issuance of a Hot Work Permit. All work, including a
  
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  fire watch should be conducted in compliance with the hotel's "hot work" program
  
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  outlined elsewhere in this manual.
  
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  Fire extinguishers and hoses (if available) shall be kept ready during such work.
  
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  Contractors should be instructed to notify hotel management immediately in the event
  
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  of, or suspicion of, a fire.
  

Contractor Equipment/Tools/Supplies

Unless otherwise agreed, contractors should provide their own tools, steps, access

platforms, scaffolding and lifting gear. All should be in good condition.

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  Contractors are responsible for the safekeeping of their tools and materials.
  
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  Materials should be delivered at specified times as agreed upon with hotel management.
  
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  They may be stored and brought to the working site as agreed with hotel management.
  
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  Contractors are responsible for unloading their vehicles and safe storage. The hotel has
  
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  no responsibility for this. Delivery trucks shall not block access for the local fire
  
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  brigade vehicles.
  
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  Passenger lifts should not be used for transportation of goods and the contractor's staff.
  
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  They should only be used if the scope of work includes the elevators. The use of service
  
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  lifts for the transportation of materials should be at time schedules as agreed with
  
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  Management.
  
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  Packing materials and rubbish create a serious fire and safety hazard if allowed to
  
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  accumulate, and should therefore be removed without delay. For the removal of
  
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  rubbish, no trolleys, garbage containers and garbage rooms of the hotel can be used.
  
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  Parking of vehicles should only be made available as agreed upon with the hotel
  
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  management.
  

Premises Protection

III-17

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  Electricity and water may be made available from the hotel but should be metered
  
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  separately.
  
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  Temporary wiring should be in accordance with codes and should not cause a safety
  
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  hazard nor cause overloading of the hotel's circuits. No electricity, air conditioning and
  
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  water connections should be shut off or disconnected without obtaining permission
  
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  from the hotel's Chief Engineer.
  
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  Telephones should be used as agreed upon with hotel management.
  
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  Staff dining rooms and toilet facilities should normally not be used unless agreed upon
  
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  with management.
  

Contractor Security and Conduct

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  Contractors should submit in advance the names of those of their staff who will be
  
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  working on hotel premises so that security passes may be prepared and issued.
  
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  Contractor's staff should always enter and leave the hotel by the staff entrance.
  
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  Claims of harassment or misconduct should be investigated and dealt with swiftly.
  
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  Hotel managers and security staff may ask contractor staff to identify themselves.
  
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  All security passes should be surrendered on completion of the individual's work
  
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  program.
  
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  The hotel management should reserve the right to search contractor's employees, their
  
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  personal belongings and all materials whilst on, entering or leaving the premises.
  
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  Contractor's employees should not enter guest or back-of-house hotel areas other than
  
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  those designated for work or as may be necessary for the orderly execution of the work.
  
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  Noise should be kept to a minimum. Shouting, swearing, whistling, singing and the use
  
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  of radios that offend or disturb customers or staff are not permitted.
  
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  Contractors who leave discarded packing materials, rubbish, food cartons, surplus
  
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  materials etc. on site should be considered to have failed to complete their contract.
  
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  When possible, hotel keys should not be issued to contractors. In the event that the
  
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  scope of work requires it, they should only be provided with temporary masters for use
  
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  in unoccupied areas.
  

Failure to Comply

Hotel management should reserve the right to refuse entry to the premises to any contractor

employee if they fail to comply with the above requirements.
Bid Processing

Before bids are issued to a specific contractor, a discreet investigation should be made as to

the reputation of that contractor. This can be accomplished by contacting other hotels or

companies who have dealt with the contractor in question. The Better Business Bureau and

other local organizations can also supply information concerning the contractor.

After three contractors have been selected by this process, each contractor should be given

identical information from which to bid for services or merchandise. None of the

contractors should be allowed access to the quotations furnished by the other contractors.

Upon receipt of the three bids, the selection should be made based on quality of service

and price. The two other bids should be maintained in the folder for audit backup.

Premises Protection

III-18

Receiving Door Control

Accounting Control Procedures should be adopted in an effort to control and minimize

losses at the receiving door, particularly those in which vendors, delivery staff and

employees may be involved.

The hotel has the right to designate certain hours for deliveries in order to have a responsible

person on hand to accept and handle the items.

Accounting Control Procedures should be established which set forth the following:

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  Delivery tickets or manifests will not be signed until all merchandise is unloaded and in
  
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  the receiving area.
  
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  Items purchased by weight or quantity will be weighed or counted before delivery
  
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  tickets are signed. Weights and quantities should be noted on both the vendor's and the
  
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  hotel's copies of the delivery tickets.
  
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  Unless inspection and verification are made upon receipt, delivery tickets for
  
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  merchandise delivered will be stamped to acknowledge conditional acceptance, subject
  
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  to inspection and verification of the contents within a reasonable time. Deliverymen
  
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  should be confined to the receiving area.
  
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  All incoming goods should be transferred to appropriate storerooms or to a secure
  
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  holding area as soon as possible after acceptance.
  

One or more items should be selected at random for an actual physical count or weight check

and compared with the delivery ticket and purchase order.

Premises Protection

III-19

Salvage Sales

When equipment or other items owned by the hotel are no longer usable, they should be

sold as salvage merchandise. The General Manager may be authorized to conduct sales

below $1,000. All salvage sales where merchandise exceeds $1,000 should be authorized by

Senior Management prior to sale.

The following procedures should be followed when selling salvage items.

1. The General Manager determines whether sales tax should be levied on any salvage

sale.

2. The General Manager then collects the payment for the total amount of the

sale and fills out a three-part cash receipt form indicating:

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  Date of sale,
  
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  Number of items purchased and descriptions,
  
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  Check number,
  
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  Signature of purchaser,
  
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  Signature of General Manager's secretary,
  
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  That all express and implied warranties, including warranties of fitness or
  
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  marketability are disclaimed by seller, and
  
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  That no warranties are made as to condition of the goods and that they are sold "as
  
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  is."
  

This receipt is distributed as follows:

Original: Given to purchaser who presents it to the department head responsible for storing

and securing the item as proof of purchase.

Second Copy: Attached to the Miscellaneous Voucher and posted through the front desk.

Third Copy: Remains in the receipt book as the hotel's permanent record of all salvage

sales.

Materials which are damaged or may present a safety hazard should not be given away or

sold. For example, a damaged ladder or equipment with missing guards should be rendered

unusable and disposed of as waste.
IV. Asset Protection

Inventory Control............................................................................................................................2

Financial Controls...........................................................................................................................4

Cash Handling Procedures ........................................................................................................5

Credit Cards........................................................................................................................................7

Guest Credit.........................................................................................................................................7

Bank Deposit .......................................................................................................................................8

Purchase Order s...............................................................................................................................9

Accounts Receivable .......................................................................................................................9

General Cashier ................................................................................................................................9

Bad Debts.............................................................................................................................................10

Payroll....................................................................................................................................................10

Checks ....................................................................................................................................................11

Traveler's Checks ...........................................................................................................................12

Vending Operations ......................................................................................................................12

Asset Marking ..................................................................................................................................13

Alarms....................................................................................................................................................13

Audio/Visual Equipment ...........................................................................................................13

Computer Secur ity.........................................................................................................................14
Asset Protection

IV-2

Inventory Control

Maintaining control over valuable assets and storage areas is important to prevent

shrinkage in supplies and materials. Some of the more common areas include coolers and

freezers, dry goods storage, linen/housekeeping storage, banquet storage, audio/visual

equipment storage and liquor storage.

Coolers and Freezers

The value of products stored in coolers and freezers can be considerable. Depending upon

operations, high value food items such as meat and frozen seafood should be stored in

separate, limited access coolers/freezers. When facilities are limited, a single cooler/freezer

may be used by securing high value items in a restricted access cage. Access to these

areas should be controlled by the food and beverage director or their designee. Preparation

and staging coolers/freezers should be secured during non-operating hours. During nonoperating

hours, seals should be placed on cooler/freezer locks. All entries and items

removed should be documented.

When kitchens are equipped with exterior exits, they should be equipped with local audible

or delayed egress panic hardware and a CCTV camera installed to document egress.

Inventories should be conducted at least monthly. Discrepancies and high food costs

should be thoroughly investigated to ascertain the cause. In the event that a key is lost or

believed compromised, locks should be re-keyed.

Dry Goods Storage

Large storerooms should be under the direct control of the food and beverage manager or

designated personnel. This person should be responsible for the inventory of the

storeroom. The storeroom should be kept locked at all times except when merchandise is

removed for daily use.

All incoming shipments of merchandise should be opened and compared with the invoice

from the original order. The merchandise should then be taken directly to the storeroom

and placed on the shelves.

To help prevent spoilage, a strict FIFO (First In, First Out) stock rotation program should

be implemented. When stock rotation is in question, items may be dated when they are

received.

Linen/Housekeeping Storage

The linen storage areas on each floor of the hotel should be locked when not attended by an

employee. The supplies in the storeroom should be kept in an orderly fashion to simplify

the monthly inventory. The inventory should be conducted by the executive housekeeper,

or in the absence of the housekeeper, by a member of management who does not work in

the housekeeping department. Any shrinkage in inventory should be reported and

thoroughly investigated.

Asset Protection

IV-3

Liquor Storage

Due to the high cost and liability associated with liquor, inventories should be tightly

controlled. When selecting a location for liquor storage, a secure, limited access storeroom

should be chosen. To help prevent theft, access to the storage room should be controlled

utilizing a uniquely keyed 1” deadbolt or electronic lock. Keys to the storeroom should be

retained by the food and beverage director or their designee and secured in a locked

cabinet. No other person, including members of the clean-up crew or maintenance staff,

should have access to this storage room. Hotels experiencing high liquor costs may choose

to install a second, uniquely keyed 1" deadbolt lock. The keys to which should be

controlled by security or other management staff. Access to the storeroom would then

require two keys.

The storage room should be structurally secure. It should not be accessible through a drop

ceiling, single layer drywall, windows or other doors.

A "bottle for bottle" issuing system should be used in filling orders. The order should be

accompanied by a written requisition with appropriate signatures.

An unique stamp or label should be used to mark all bottles as hotel inventory. Bottles

should be labeled when they are placed into storage. Access to the label/stamp should be

carefully guarded by the food and beverage director or their designee.

To keep an accurate inventory and to prevent shrinkage, a perpetual inventory should be

maintained.

If your hotel experiences a substantial number of room service orders for liquor, consider

having the front desk supply a daily list of rooms to the bartender that cannot have room

service charged. These would include those rooms which were paid for in advance without

being secured by a credit card.

To help prevent employees from pouring from their own bottle, the food and beverage

director and/or General Manager should conduct unscheduled inventories of bar stock to

determine that all merchandise being used belongs to the hotel.

Asset Protection

IV-4