1. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 1 A. The Purpose of This Policy Companies lose billions of dollars annually because of check fraud. Modern electronic-imaging equipment has made it easier for criminals to alter, duplicate or forge our Company checks. The purpose of this policy is to reduce our risk from losses due to check fraud. 7100. General Accounting Procedures, 7125 Security of Company Checks B. Responsibility The Hotel accountant, general manager and general cashier (person performing the general cashiering duties described in the previous section) are responsible for the security of Company checks. Continue ►

2. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 2 C. Required Procedures for Check Security Use the following procedures to reduce our risk from check fraud:  Keep all unused (blank) Company checks secured in a locked area accessible only to those who use them.  Keep cancelled and voided checks secured and accessible only by the general manager.  Immediately report any checks missing from their pre- numbered series. Notify the bank to stop payment on those missing checks.  When available, order checks in shrink-wrapped packaging so that tampering will be apparent. Continue ► 7100. General Accounting Procedures, 7125 Security of Company Checks

3. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 3 C. Required Procedures for Check Security (cont.)  Order checks in quantities limited to one year’s expected usage.  Assure that those authorized to sign checks are not the same as the person reconciling the account on which the checks are drawn.  Assure that accounts using checks are reconciled every month and immediately upon receipt of bank statements.  Destroy checks that are not needed. For example, some banks automatically issue “temporary” checks for every account, even for accounts for which we are not intending to use checks, such as savings and depository accounts. End 7100. General Accounting Procedures, 7125 Security of Company Checks

4. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 4 7100. General Accounting Procedures, 7125 Security of Company Checks