Housekeeping Budgeting

Question 1

Define budget

Answer 1

A statement of intended expenditure for a given period

Question 2

Importance of budget

Answer 2

i)It sets out the parameters of how much of expenditure is permitted for various items of cost.
ii) The efficiency of a department is reflect in the extent to which it stays within a budget.
iii) It helps in focusing on priorities of expenditure .
iv) It acts as an in-built control on activities.

Question 3

Types of budget

Answer 3

Capital budget
Operational budget
Pre- opening budget

Question 4

Capital budget

Answer 4

Intended expenditure on assets that have a longer life and are thus more expensive e.g. vacuum cleaners, carpets, furniture, curtains, linen etc.

Question 5

Operational budget

Answer 5

Intended expenditure on items of daily or short-term
consumption, e.g. guest supplies, cleaning supplies, salaries , wages, etc.

Question 6

Pre- opening budgets

Answer 6

These force the planning necessary for the smooth opening of a new hotel. It includes the capital and the operational budget. e.g. initial salaries, furniture ets.

Question 7

Expenditure arise from Housekeeping capital budget

Answer 7

a)Renovation of rooms or public areas.
B)Addition of rooms or public areas.
C)Replacement of equipment, furnishing, carpets, etc.
D)Introduction of automation in the department.

Question 8

How to prepare a capital budget

Answer 8

Supplier Identification –
i) Reliability of suppliers operation.
ii) Quality of product - this can be ensured through in factory inspection and performance history in other organisations.
iii) Cost factors of product , transportation and handling charges.
iv) Whether suppliers meet time parameters of supply.
v) Whether suppliers meet your special specification.

2.Receiving Competitive quotations – It is prudent to identify several suppliers because the hotel can then have the advantage of competitive prices. Quotations should be called for after informing suppliers , exact quality and quantity requirement.

Selection of a supplier – While a supplier with the lowest quotation with better quality would normally be the apparent choice.
It may be wise to pay a little more if the probability of these various factor is higher. The decision should be joint one with the involvement of the General Manager.
4. Making a Budget – Armed with quotations the capital budget can be broken into :
i) Product
ii) Transport

Question 9

Operational budget

Answer 9

Various heads of expenditure reflect in a housekeeping operational budget are :
Cleaning Supplies : Detergents, brasso, duster cloths etc.
Guest Supplies : Guest stationery, Soaps, tissues etc.
Office Stationary :Memo book, writing implements, formats, stamps etc.
Tailors Shop Expenses : Thread, needles, buttons, lace, etc.
Cleaning Equipment : Brooms, Mops, buckets, etc.
Salaries & Wages : Includes in addition retirement benefits, bonus,
allowances, etc.
Heat, Light, and Power : A/C, heater, electricity consumption in the
dept.
Repair and Maintenance : Expenses on maintenance of furniture,
equipments etc.
Local Travel : Expenses on visit to suppliers, staff transportation etc.
Horticulture Expenses : Landscaping – seeds, manure, etc.
Florist – Flowers, Flower holders & vases.
Pest Control : Insecticides, and Pesticides.
Laundry : Washing materials.