Administrative and General — Schedule 5
Administrative and General—Schedule 5 is a structured guide for reporting expenses tied to the administration and management of a hotel property. While the Uniform System sets specific line items for this category, properties may adjust by deleting irrelevant items or rearranging them as needed to suit their operations. However, they must avoid adding new revenue or expense line items, except through detailed sub-accounts that roll into approved categories.
1. Overview and Guidelines
- Location in Financial Reporting: Total Administrative and General expenses are reported under Undistributed Operating Expenses on the Summary Operating Statement.
- Reference: See Part III of the Uniform System for relevant ratios and operational benchmarks.
2. Expense Categories
Administrative and General expenses fall into two main categories:
A. Labor Costs and Related Expenses
- Salaries and Wages: Regular and temporary pay for employees, including management and support roles.
- Service Charges: Distribution of service charges paid via payroll.
- Contracted, Leased, and Outsourced Labor: Costs of external personnel hired for hotel operations.
- Bonuses and Incentives: Performance-related pay and bonuses.
- Payroll Taxes, Supplemental Pay, and Employee Benefits: Employer contributions, time-off payments, health insurance, and other benefits.
- Total Labor Costs: Summation of the above, reported as a percentage of total operating revenue.
B. Other Expenses
This broad category covers numerous administrative costs, such as:
- Audit Charges and Legal Services
- Bank Charges and Credit Card Commissions
- Human Resources Costs
- Centralized Accounting, Corporate Reimbursables, and Cluster Services
- Decorations, Dues, and Subscriptions
- Equipment Rental, Training, and Professional Fees
- Travel, Entertainment, and Postage
- Miscellaneous and Settlement Costs
- Uniforms and Uniform Laundry
- Security and Staff Transportation
Each of these line items can be supported with sub-accounts for granular tracking, rolled into the main expense line as required.
3. Total Calculation
- Total Other Expenses: Sum of all line items under Other Expenses.
- Total Administrative and General Expenses: Sum of Labor Costs and Other Expenses, expressed as a percentage of total operating revenue.
This structured breakdown supports accurate financial reporting and analysis of a hotel’s administrative operations.
