EC Meeting Papers July 2018

The Hotel performed good this month and recorded a net profit of £11.3k for May 2018 against a budgeted profit of £4.1k

Hotel Costs vs Budget

The following summarises the main cost variances to budget in the month  Wages & Salaries Wages & Salaries £1.6k higher than budget.  Cleaning & Laundry Cleaning & Laundry is below budget for this month.  IT Expenses This is well above budget and is possibly due to additional cost being incurred for ACT License and Entegrity costs.  Marketing The Marketing costs provisions were reviewed causing a small write-back in costs. Actual costs in comparison to the budget is quite low.  Garden Expenditure Garden Expenditure Costs continue to run over budget the cost of ‘Firtree’ maintenance is £2,175 per month. The cost for May 2018 is quite high at £3.5k  Rates & Insurance Expenditure for the month is showing at £1.9k compared to a budget of £6.5k. Need to investigate if any rates owing.  Heat, Light & Power Heat, Light & Power costs are now showing an underspend compared to last month and it looks like previous issues and disputes have now been sorted.  Depreciation was an unbudgeted expense  GFTU Salary Contribution GFTU Salary contribution is underspent by £1.3k in relation to the budget.

Deferred Architects Fees

The Hotel has an Other Asset A/c where Architect Fees have been held pending the commissioning of the Quorn Site Development. These date back to 2015 and were incurred during initial exploratory work on the project. The amount is £17,074.77, this amount should either be expended to P & L account as professional fees or transferred to GFTU ET for capitalisation as appropriate.