Hotel Financial Security: Are Your Vendors Real?
By Peter Goldmann President, FraudAware Hospitality | October 28, 2008
Despite the constant barrage of news about corporate theft and fraud, there are still far too many situations in which hospitality companies unknowingly pay criminally-minded individuals or phony companies posing as legitimate vendors.
How is it possible that "legitimate" companies have a private mailbox at the local UPS Store, a private residence, or even a prison address? Or that invoices a month apart with consecutive numbers both get paid? Or "invoices from a "vendor" whose address happens to match that of a company employee get paid?
To avoid such frauds your company must have in place tight controls for the...
Vendor Master Set-Up
The Vendor Master set-up process requires appropriate-and continuously enforced-segregation of duties.
Details: The individual or department authorizing a vendor should be in a department other than that of the team processing invoices and generating disbursements.