Chapter 18 - The Audit
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While the culture of the hotel was healing, the financial realities still required immediate attention. Victoria’s reckless spending and aggressive cost-cutting measures in critical infrastructure had left the St. Moritz in a precarious position.
Sienna sat in her office, surrounded by stacks of financial ledgers and audit reports. She had hired an independent forensic accounting firm to comb through every transaction of the past five years.
The lead auditor, a sharp, meticulous man named Mr. Sterling, sat across from her.
"The situation is complex, Ms. Vance," Sterling said, adjusting his glasses. "Your stepmother utilized a series of aggressive accounting loopholes to artificially inflate the short-term profit margins."
"Explain," Sienna requested, leaning forward.
"She deferred essential maintenance on the HVAC systems and the plumbing infrastructure, classifying them as non-critical expenditures," Sterling explained, pointing to a highlighted spreadsheet. "She also drastically reduced the budget for staff training and benefits, funneling those savings into high-visibility cosmetic renovations in the lobby and VIP suites."
Sienna sighed, rubbing her temples. It was exactly what she had suspected. Victoria cared only about the facade, ignoring the foundation until it was ready to crumble.
"How much will it cost to repair the deferred maintenance?" Sienna asked.
"To bring the building up to code and ensure long-term stability, you are looking at an initial investment of approximately three million dollars," Sterling replied grimly.
"And if we don't?"
"You risk catastrophic system failures within the next eighteen months," Sterling warned. "A pipe burst in the main dining room, or an HVAC failure during peak summer season. The reputational damage would be incalculable."
Sienna didn't hesitate.
"Draft the budget allocation," she ordered. "We fix the foundation first. I will not operate a hotel that looks beautiful but is rotting from the inside."
Sterling nodded, a look of professional respect crossing his features.
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"It will severely impact your profit margins for this fiscal year, Ms. Vance."
"I am not playing a short-term game, Mr. Sterling," Sienna said firmly. "We are building for the next century. Approve the repairs."
