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We have engaged in an extensive review and asked a lot of hard questions of ourselves and critical stakeholders in the last few months, CVB Chairman Dennis Lehman said. We heard — loud and clear — that the role and responsibility of the CVB is a vital one for the community. We also heard — just as loudly and clearly — that greater accountability needs to be instilled in the CVB. We`ve taken those views to heart and acknowledge that we as a Board and an organization need to make some changes. We`ve done that, and we will continue to do that as we perform the CVB`s important function in adding to the region`s economic growth.
The actions followed the completion of a four-month independent review by the Columbus-based law firm of Schottenstein, Zox & Dunn and the accounting firm of Grant Thornton, under the auspices of a special Board committee chaired by Cuyahoga Community College President Dr. Jerry Sue Thornton. This review examined the travel and expense reimbursements, as well as direct vendor payments, for all Bureau employees during 2002 and through May 31, 2003, in light of Board policies and procedures in existence at that time. The review also analyzed expense reports for two key executives for 2000 and 2001. The firms also made a series of recommendations on improvements that could be made to CVB policies and procedures. Those recommendations form the foundation for decisions made by the CVB Executive Committee and reported to the full Board.
The CVB adopted a wide range of internal operating policies and procedures to help ensure that Board members and employees operate within clearly understood guidelines that balance the realities of the competitive, private business marketplace in which it operates and the public nature of the bed tax funding source that constitutes 83% of the CVB`s revenues.
Special Committee Chair Dr. Jerry Sue Thornton explained, The independent review we commissioned found that most of the CVB policies and procedures relative to expenses and reimbursements were quite appropriate; however, they had not been followed consistently or, in some cases, at all. We have reaffirmed those policies, strengthened others by adding greater specificity and established consequences for failure to comply with those policies. All members of the Board and CVB staff will be expected to follow these policies, and we will review compliance with those rules.
The CVB adopted the following policy and procedural changes:
The Board also is working to make several changes in its governance structure to re-establish a higher level of accountability and trust with the community. CVB Chairman Lehman said, We recognize that the Board itself has responsibilities to perform that often require significant time and energy. While the current Board does reflect a wide range of stakeholders and constituencies, reducing the size of the official Board can help streamline our activities and heighten the sense of accountability. At the same time, we will look for ways to involve interested members of the community in the work of the Board. Even though both the City of Cleveland and the Cuyahoga County Commissioners already have significant representation on the Board, we believe that increasing their role in Board governance will have a positive impact.
Key aspects of the reforms being considered:
The Executive Committee will be exploring these changes in depth during the next few weeks with a goal of recommending a new structure to the Board for its November meeting.
The CVB also discussed its general direction for aggressive efforts throughout the remainder of 2003 and into 2004 to give added emphasis to attracting meetings and conventions that can make use of existing facilities (hotels, conference centers and the current Convention Center) and expand regional marketing efforts that bring overnight visitors to local attractions, hotels and restaurants. Over the past couple of years, the CVB has helped fill existing gaps in funding that historically had been provided by local corporations for special events that are important to the life of our community. However, doing so has meant that we`ve had to pull back from other activities that are the traditional role of the CVB. We need to have a better dialogue about how the community can fund these important events and still perform the marketing responsibilities that the Bureau is best positioned to accomplish, Lehman said.
Today`s actions are not the last ones the Board will take as we work to rebuild the community`s confidence in our performance, Lehman concluded. Many dedicated employees and committed stakeholders have built an impressive track record of success in the face of a three-year economic downturn that has especially affected our region. We have so many assets and attributes that offer wonderful opportunities for visitors, whether they are attending a meeting or convention or looking for a family vacation. Continuing to work to attract them to our region is the CVB`s mission, and we look forward to working in cooperation with other community leaders to fulfill that responsibility.
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