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Consultancy Services
Financial Audits
Whether catering services are being offered in-house or through a contract caterer we can ensure best value and best quality for your organisation through our financial audit service.
The purpose of an audit is generally to assess whether the client and their users are receiving value for money from the catering services provided and that they are being correctly charged for the service received. The terms of reference for each audit are individually agreed, but generally include the following:
- General financial control; records are checked for consistent accounting procedures and accurate bookkeeping standards.
- Cash control; till transactions, accuracy of recording cash, credit and invoiced income, banking procedures, cash handling procedures, V.A.T. calculations.
- Food costs and profit margin; verification of the price paid for raw materials and the policy and practice relating to discounts on purchases, accuracy of transfer of food costs to P and L account, assessment of gross profit margins.
- Payroll costs; verification of the number and calibre of staff employed, rates of pay and company benefits, staff training, total staff costs and accuracy of transfer to the P and L account.
- Stock control; stock levels, stock management systems.
- Caterer's earnings; examination of caterers earnings in relation to expectations and industry benchmarks
- Financial performance; examination of cost to revenue % for labour, food, administration, client return and caterer profit.
- Benchmark; comparison of spend per head, spend per visitor/employee and penetration rates to industry norms.
- Overall performance; a summary of the overall financial performance of the caterer at the client's organisation.
We have extensive experience in providing this service to our client's often on an annual basis. We are therefore, very familiar with the financial and operational procedures of most of the contract catering companies.
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