THE JOURNAL OF HOSPITALITY FINANCIAL AND TECHNOLOGY PROFESSIONALS
December 2010 / January 2011Volume 25, Number 7
PLUS: AA Look at the Details from the 2010 Compensation and
Benefits Survey • New ProLinks Webinar Schedule • Guidelines
for Proper Employee Dismissals
LEED CertificationFor Hotels
Low Cost Internal Controls
Managing Social Media Use
Time to Revise the USFRC?
®
The Bottomline �
THE JOURNAL OFHOSPITALITY FINANCIAL AND
TECHNOLOGY PROFESSIONALSVolume 25, Number 7
10 The Cost of EfficiencyWhen trimming the fat, be careful not to treat internal control structures as a luxuryBy Stephen R.J. Robinson, CPA and Philip G. Newman, CPA, CIA
16 LEED Certification for HotelsWhat you’ll need to know and do, and why you’d want to do itBy Darren Johnston and Patty Breech
20 I Can’t Believe You Said E-mailed Texted Posted Tweeted That!!!!!How to positively manage the social media explosion amongst employeesBy Joe Pittel
24 USFRC — Time to ReviseA club executive survey demonstrates enough industry changes to warrant a new edition of the Uniform System of Financial Reporting for ClubsBy Agnes DeFranco, Ed.D., CHAE, CHE and Raymond S. Schmidgall, Ph.D., CPA, CHAE
27 2010 HFTP Compensation and Benefits SurveyA look at the detailsBy Tanya Venegas
5 Between the LinesReaching Members Off and Online — The HFTP Board amps up its online presence throughwebinars, a new blog and discussion forums
6 Q&A From The HFTP Research InstituteEmployee Terminations — Guidelines for proper dismissals, whatever the reason
7 HFTP Calendar
8 HFTP News and NotesA Standing Date with HFTP’s ProLinks Webinars — New Webinar Schedule OffersFree Education to Members Twice a Month
�1 The Bottomline Resource Guide
HFTP® and HITEC® are registered service marks of Hospitality Financial and Technol-ogy Professionals. GUESTROOM 20X is a service mark of Hospitality Financial and Technology Professionals.
Submissions and InquiriesIndividuals interested in submitting an article for publication should contact the editor. The Bottomline is a peer review journal. All ma-terials submitted for publication are reviewed by members of the editorial review board or recognized experts in the field.
The Bottomline (ISSN 0279-1889), the jour-nal of Hospitality Financial and Technology Professionals, Inc., is published bimonthly with two special editions by HFTP®. Copy-right © by Hospitality Financial and Technol-ogy Professionals. All rights are reserved. All opinions expressed herein represent the views of the authors. The Bottomline and HFTP disclaim any responsibility for views expressed or statements made in any articles published. HFTP disclaims any liability with respect to the use of or reliance on any such information. The information contained in this publication is in no way to be construed as a recommendation by HFTP or any industry standard, or as a recommendation of any kind to be adopted or binding upon any member of the hospitality industry. Written consent must be obtained from HFTP before reprinting articles. Subscription fee of $30 for HFTP members is included in the membership fee. HFTP is headquartered at 11709 Boulder Lane, Suite 110, Austin, Texas 78726. Periodicals Postage Paid at Austin, Texas. POSTMASTER: Send ad-dress changes to The Bottomline, 11709 Boulder Lane, Suite 110, Austin, Texas 78726, (512) 249-5333.
CONTENTS
F E A T U R E S
D E P A R T m E N T S
D E C E m B E R • 2 0 1 0 / J A N U A R Y • 2 0 11
4 December 2010 / January 2011
THE BOTTOMLINE STAFFFrank I. Wolfe, CAE
Executive Vice President/CEO [email protected]
Eliza R. Selig Editor/Director of Communications
Jennifer Lee Advertising Sales / Director of Marketing
2009–2010 HFTP OFFICERSPresident
Thomas G. Smith, CHAE Westmoor Country Club
Brookfield, Wis.
Vice PresidentLisa Funk, CHAE
Alexis Hotel Seattle, Wash.
TreasurerRaman P. Rama, CHA, CHTP, CHAE
JHM HotelsGreenville, SC
SecretaryJerald Trieber, CPA, CHAE, CFE, CFF
Crestline Hotels and ResortsFairfax, Va.
Immediate Past PresidentTerry Price, CHAE, CHTP, CPA The Grove Park Inn Resort & Spa
Asheville, N.C.
2010–2011 EDITORIAL ADVISORY COUNCIL Chair
Ab M. Echenberg, CHAE, CHTPAME Consulting
Council:
Kaye Chon, Ph.D., CHE Hong Kong Polytechnic University
Cihan Cobanoglu, Ph.D., CHTP Courtyard Newark- University of Delaware
Daniel J. Connolly, Ph.D. University of Denver
Dennis DuBois, CHAE Carlson Hotels Americas
Mehmet Erdem, Ph.D, CHTP UNLV
Jason R. Filippini,LeMaster Daniels
Mark A. Gage, CHT Scottsdale Community College
Melih Madanoglu Florida Atlantic University
Brian Miller, Ph.D.University of Delaware
Christina E. Miller, CAM, CHAE Ginn Reunion Resort & Club
Arlene Ramirez, MBA The Woodlands
Raymond S. Schmidgall, Ph.D., CPA, CHAE Michigan State University
Franklin John P. Sikich, CPA, CHAE Franklin John Patrick Sikich, CPA
Paul A. Willie, CHAE, CHTP, CHA, CMA Niagara College
11709 Boulder Lane, Suite 110 • Austin, TX 78726–1832+1 (512) 249-5333 • (800) 646-4387 • Fax +1 (512) 249-1533
www.hftp.org • www.hitec.org
UPCOmING WEBINARS: December 16, 2010Human Resources 101January 6, 2011 PCI Compliance: Myths and RumorsJanuary 20, 2011 CHAE Review Series 1
Attend live sessions over your high-speed Internet connection. Learn from industry experts without leaving your office. HFTP members have access to free, interactive sessions that include live au-dio, chat and slide presentations.
Get Started:
Visit the Membership/ProLinks section of the HFTP web site at www.hftp.org.
®
February 3, 2011The Redesigned IRS Form 990February 17, 2011CHAE Review Series 2
The Bottomline 5
Reaching members Off and OnlineThe HFTP Board amps up its online presence through
webinars, a new blog and discussion forums
Thomas G. Smith, CHAE is the chief financial officer for the Westmoor Country Club in Brookfield, Wis.
Thomas G. Smith, CHAE
nars are not new, you can now look for live presentations every first and third Thursdays of the month. HFTP members can partake in the one-hour webinars completely free. Plus, CHAE and CHTP holders can get one CPE credit for participating.
The topics range from the techni-cal — tax law; to the trends — social media; to personal achievement — how to eliminate fear. And if you can’t make a scheduled presentation; then at your convenience, pick one from the list of archived presentations, take a seat and click on the link. Learn more about ProLinks in this issue on page 8.
Interaction through online communi-ties and social networks is no longer an activity exclusive to millennials. As we increasingly go mobile, many of us have started to take for granted that Internet access follows us throughout our day. We use the resource for fast answers to questions, and for back-and-forth dis-cussion, professional and personal.
When it comes to the HFTP mem-bership, the Global Board thinks it is time to strengthen the HFTP online community to complement conferences and chapter meetings. I would like to request that you take the time to visit the HFTP message boards on a frequent basis. While you may not have any spe-cific questions to post, you most likely will have experiences you can contrib-
Between the Lines A Letter from the HFTP President
ute. It is our collective knowledge that helps all of us progress.
In addition to our message boards, HFTP.org will soon feature a blog, with regular contributions from industry experts, HFTP leaders and more. Stay tuned for the announcement of its debut. And to come full circle, stay in the loop with the association’s @HFTP Twitter account and its Facebook page.
Last, I wanted to briefly mention the recent announcement of the formation of HFTP University (HFTP-U). HFTP has teamed with Datanamics, Inc. to offer a one-stop resource for high level technical and end user training. All courses within the Datanamics listing are available to HFTP members at a 20 percent discount, and can be custom-ized to fit specific needs. This is a great opportunity for HFTP members to get the most current training in a quickly changing industry. To learn more about HFTP-U visit the HFTP web site, as well as participate in the orientation we-binar coming this winter.
Right at the get-go I have a lot of HFTP news to share. I look forward to continuing over the next year, whether it’s online or in person.
Here it is, an opportunity I’ve been looking forward to for several years — taking on the
role as HFTP Global president. For two decades I’ve been an active member of the association, as I’ve built my career in the club industry. HFTP has helped me progress with valuable education and memorable networking opportuni-ties, as well as the satisfaction of being part of something that contributes to the growth of the industry as a whole.
One area I think HFTP has been successful at, is adapting to the chang-ing business environment by deliver-ing benefits that align with modern practices. As an example, and some-thing that I look forward to using in the coming year, is our growing online education and community. HFTP has had an online presence for many years, but recently the Board has given the green light to amp it up.
First is the emphasis for easy ac-cess to online education on a regular basis. While HFTP’s ProLinks webi-
Thomas G. Smith, CHAE
One area I think HFTP has been successful at, is adapting to the changing business environment by delivering benefits that align with modern practices. As an example, and something that I look forward to using in the coming year, is our growing online education and community.
6 December 2010 / January 2011
Q&A from the HFTP Research Institute
Guidelines for proper dismissals, whatever the reason
EmPLOYEE TERmINATIONS
QuestionCan you provide the general guidelines for employee terminations? Please go through the steps for employees that have not performed and terminations for reduction-in-force.
Answer
Employee terminations are always difficult no matter what the reason. With the recent economic downturn, many employers have had to downsize their workforce
in order for their company to survive. This HFTP Research Institute Q&A will provide guidance on how to properly ter-minate employees either for poor performance, inappropriate behavior or a reduction-in-force.
Step 1. Hire RightThe first step in the entire process is to ensure the right em-ployees are hired to perform the duties as necessary. First of all, make sure a proper job description is in place so the em-ployee has proper expectations of the position for which they are applying. An appropriate employment application should be used for anyone applying for a position which includes things such as the prospective employee’s education and past job experience (Barr, 1995). Depending on the position, part of the pre-employment process could also include a medical exam, drug tests and reference checks.
Once you have decided to hire this potential employee, they should be provided with a detailed offer letter pertain-ing to all information pertinent to the position they are being offered. This letter should include all of the terms and condi-tions of the job offer and the applicant should be requested to sign and return a letter of agreement accepting the terms put forth in the offer letter.
Step 2. Train New EmployeesTraining new employees correctly is also necessary to prevent any problems moving forward. It is the employers responsibility to ensure the employee receives all proper training materials. Most organizations provide a detailed employee manual to new hires and require them to sign a document stating that they received the manual and under-stand its contents. The employee manual sets forth all of the basic expectations such as timeliness, dress code, appropriate conduct, etc. After all of the general items are covered in the employee manual, then the employee needs to be provided one-on-one training on their specific position until they are capable of performing the duties themselves.
Step �. Employee EvaluationsEmployee evaluations are an important part of assessing whether employees are properly performing their job duties. Many organizations only conduct formal evaluations once a year, but in most cases it is more productive to conduct evaluations on an ongoing basis whether it be bi-monthly or twice a year. This provides employees better feedback throughout the year and they are not shocked to find out they have not met expectations when it comes around to their an-nual review which is typically tied to a salary increase.
A very important part of employee evaluations is docu-mentation. Any expectations which are not being properly
The Bottomline 7
Send your research request to [email protected]. Please note that the Research Institute cannot answer every question. Some specific or proprietary type questions are too difficult to answer.
HFTP-U Seminar: SharepointJanuary 10, 2011Las Vegas, Nev.
HFTP-U Seminar: SharepointJanuary 19, 2011Dallas, Texas
HFTP-U Seminar: SharepointJanuary 24, 2011Orlando, Fla.
HFTP-U Seminar: SharepointJanuary 10, 2011Washington, D.C.
Development ConferenceMarch 14 – 15, 2011Green Valley Ranch ResortLas Vegas, Nev.
CALENDARFor more information about HFTP events, call (800) 646-4387 or (512) 249-5333, or visit www.hftp.org.
AHTEC 2011May 12 – 13, 2011Hong Kong Convention & Exhibition CentreHong Kong
HITEC 2011June 20 – 23, 2011 Austin Convention CenterAustin, Texas
Club and Hotel Controllers ConferenceJune 21 – 22, 2011 Austin Convention CenterAustin, Texas
Annual Convention & TradeshowOctober 19 – 22, 2011Omni CNN CenterAtlanta, Ga.
met must be extensively documented and employees should be required to sign and acknowledge these shortcom-ings. When documenting, managers must be specific. In other words, instead of a manager noting “Suzy is always late to work,” they should be recording “Suzy’s shift starts at 8:00 a.m. and she arrived at 8:15 on Monday and 8:20 on Thursday.” This provides a clearer picture of the situation.
Step 4. Discipline Procedures and Improved PerformanceEmployee discipline should be fair to the employee, and the same rules and regulations should apply to every employee. An example provided in one article was an employee sleeping on the job who was terminated. She complained that she was not treated fairly because she knew of another employee who had fallen asleep on the job and was not terminated. After some investigation, it was determined that the employee who was not terminated was given an excuse because he had stayed up late the evening before to complete an important project. Even though one employee had a “good” excuse, these employees were not treated in the same manner.
Again, make sure disciplinary mea-sures are clearly stated in the employee manual which should be reviewed by legal counsel (Bar, 1995). In addition, the employee manual should state that employees can be immediately termi-nated for certain actions. The hopeful outcome of any disciplinary procedures is improved performance. Managers must set clear goals for their employ-ees and it is advised to receive written commitment to reach these goals on a specified timetable.
Step 5. Termination EvaluationIf an employee is not performing or has exhibited extreme behavior war-ranting termination, then a termina-tion evaluation needs to be conducted. Employees should never be fired on the spot. If their behavior is unacceptable they should be sent home and put on probation until a proper investigation has been conducted. In either instance, more than one person should be evalu-
ating the facts and determining whether to terminate the employee. This avoids bias from any parties.
Step 6. Termination ProcedureTerminating an employee for any reason is a highly emotional process for most people, but the process must be kept professional and only the facts need to be presented. There should be at least three parties present in the room: (1) the employee, (2) person conduct-ing the termination, and (3) an impartial third party. Some companies believe it is best to simply call the employee in and terminate them, but most experts agree that it is best to lay the facts on the table. Without the facts, the employ-ees mind can run wild with reasons they are being terminated. For example, the employee handbook states that if you are late more than three times you will be terminated. Suzy was late three times last month and here are her time cards which she signed stating she ar-rived 15 minutes late these three dates.
She was provided a written warning upon each time she was late and on the third time she was warned she would be terminated if she was late again. This example provides a clear cut reason for Suzy’s termination.
In the case of a reduction-in-force, employees should be provided the financial and organizational reasons be-hind why they are being released. This will provide the employee being termi-nated as well as remaining employees the reason behind the termination. Otherwise, the remaining employees will go to work every day wondering and worrying if they are next.
If you have any further ques-tions about terminations or employee discipline, please contact the HFTP Research Institute.
Sources• Barr, Marcia N. Club Management.
St. Louis: Mar/Apr 1995. Vol 74, Iss 2; pg. 14. Retrieved November 4, 2010 from ProQuest.
Q&A from the HFTP Research Institute
8 December 2010 / January 2011
HFTP News & Notes
Webinars. By this point in the 21st Century, most professionals have attended a webinar. And if they haven’t, they at least are familiar with what a webi-
nar is… you know, an education session broadcast live over the web (hence the WEB-based semINAR name).
About Prolinks WebinarsHFTP held its first webinar in 2004. And ever since then, the association has offered free education online through its ProLinks forum. The best thing about HFTP’s webinars is that they offer you an easy way to get professional develop-ment at an awesome price — free. And who doesn’t love free, convenient education? The only downside was that the webinars were held without a set schedule.
But that’s all changing. Now you can set a permanent date with HFTP’s Prolinks Webinar Series every first and third Thursday of the month. Each webinar is free to mem-bers and offers a wide variety of topics from tax laws, PCI compliance, human resources, social media strategies and more. And if your schedule doesn’t fit with the webinar’s time? Don’t fret — each webinar (from 2006 to the present) is archived on hftp.org.
The new schedule began in November and will continue throughout 2011. As webinars are scheduled months in advance, the schedule is posted on the web site. So you can plan for which webinars you’d like to attend.
Get CPE creditsWe all know the important benefits of attending conferences like HITEC and HFTP’s Annual Convention. Not only do you get to network with colleagues and meet helpful ven-dors, you also get CPE credits through education sessions. But great conferences only occur several times a year and sometimes they just don’t fit into your schedule.
This is where the Prolinks webinars come in handy. Get your continuing education credits right from your office or
A STANDING DATE WITH HFTP’S PROLINkS WEBINARSNew Webinar Schedule Offers Free Education to Members Twice a Month
By Katy Walterscheidt
home. Because with each live webinar you attend, you’ll earn one CPE credit. And free CPE credits can’t be beat.
HFTP’s ProLinks Webinar Series often features some fa-vorite conference education sessions. So if you weren’t able to make it to a conference, you can still learn from some of the best conference speakers about the hottest topics in the industry just by signing up for the free webinar.
New CHAE SeriesThose familiar with HFTP conferences know that most con-ferences begin with CHAE and CHTP reviews and exams. Now you’ll be able to the take the CHAE review from the comfort of your home or office.
For the first time, the CHAE review will be available on-line through a four-part webinar series. Each part of the we-binar will be presented once a month, with content building from the previous month. Each session will focus on a topic — like “everything you want to know about inventory.” This differs from the live review sessions, which are specific to chapters of the review guide.
The Bottomline �
Another beauty of the webinars versus the live review sessions is that they are broken into one hour sessions, allowing members to spread out their review when it’s con-venient for them.
“We understand that the candidates have different learn-ing styles and time commitments. Certification training aids currently include study guides, PowerPoint slides and a four hour live review session,” said Kristopher Shoe-maker, CMA, CHAE, CHTP, CGFO, Certification Advisory Council chair, HFTP Global director and assistant business manager for the Orange County Convention Center. “The council needed to expand our training offerings to accom-modate the various learning styles and the one hour webi-nars are one of the various changes we are doing this year.”
Shoemaker said he hopes the webinar series results in more people being exposed to the Certification program and ultimately more people becoming certified. But even if members aren’t interested in certification, the topics can help with day-to-day job functions.
And if the initial CHAE webinars are successful, you’ll find additional topics for the CHAE and the CHTP added to the schedule.
December 16, 2010Human Resources 101January 6, 2011 PCI Compliance: Myths and RumorsJanuary 20, 2011 CHAE Review Series 1February 3, 2011The Redesigned IRS Form 990February 17, 2011CHAE Review Series 2
HFTP News & Notes
10 December 2010 / January 2011
The sweeping cost control measures implemented throughout the hos-pitality industry over the course of
the great recession are common knowl-edge and need no repetition. The cur-rent climate is characterized by guests who expect more for less, and property managers who expect to provide more with less. The question left looming in the face of this contradiction is whether this drive for greater efficiency carries with it any hidden costs.
Could the internal control structure of your property have been compro-mised by indiscriminate cost cutting which may require more dollars to be spent in the future to correct internal control lapses? After all, if the positions and processes being eliminated or cur-tailed are not important, why did they exist in the first place?
Prior to addressing these questions, let us offer a brief definition of internal control. According to the Committee of Sponsoring Organizations of the Tread-way Commission (COSO), internal con-trol is “a process, effected by an entity’s board of directors, management and other personnel… to provide reason-able assurance regarding the achieve-ment of objectives in effectiveness and efficiency of operations, reliability of financial reporting and compliance with applicable laws and regulations.” In other words, internal control helps us keep an eye on what our staff members are doing while offering confidence that our numbers are correct.
THE COST OF EFFICIENCY When trimming the fat, be careful not to treat internal control structures as a luxury By Stephen R.J. Robinson, CPA and Philip G. Newman, CPA, CIA
Stephen R.J. Robinson, CPA is a director with McGladrey where he manages financial audits for commercial hotel and hospitality organizations that are regu-lated by the SEC, resorts owned and operated by the U.S. Department of Defense, and independently owned and operated resorts. Philip G. Newman, CPA, CIA is a managing director with McGladrey, where he is responsible for projects throughout the United States including internal control and governance reviews, operational consulting, benchmarking studies, strategic planning and the development and delivery of education products and tools for club boards, CEOs and CFOs. Newman is a frequent speaker at HFTP educational events.
Two Scenarios: Which is Efficient?With this definition in mind, consider the differences between the two internal control structures in the following sce-narios with regard to which scenario is really more efficient.
Scenario 1: Resort Profile in 2006 A large resort property with guest rooms, meeting spaces, multiple food and beverage outlets, a golf course, and spa employs a fully staffed ac-counting office comprised of a CFO,
Internal Controls
12 December 2010 / January 2011
controller, and payroll, payables and receivables administrators. The CFO deals with strategic financial decisions and leadership, maintains relationships with lenders and negotiates new debt agreements, monitors compliance with existing loan covenants, reviews daily flash reports with the general manager (GM) and provides weekly updates to the ownership board. The CFO also performs a detailed review of monthly financial statements and reconcilia-tions, coordinates group reports to the corporate office and franchisor, and works closely with the property’s IT administrator to monitor access changes and system integrity. Meanwhile, the controller reconciles all ledgers and supervises payroll, receivables and pay-ables administrators, and participates in
for inventory custody. To share the ad-ditional burden, accounting office mail is handled by the assistants responsible for each respective area; they are also granted full access to their respective ledgers and master files. The review procedures previously performed by the CFO are now placed in the hands of the GM who concentrates on revenue, rate and occupancy performance, and largely neglects the balance sheet and underlying reconciliations.
No one monitors changes to IT rights. The business of the resort continues from a guest perspective as normal; however, “back of the house” performance begins to slip. Daily flash reports deteriorate to almost daily with payroll information frequently missing, and it becomes increasingly difficult to
incur $25,000 of additional audit fees in order to do so. Then there are the issues identified in the course of the external audit — food inventory had to be writ-ten down by $35,000 due to substantial spoilage and shrinkage. Group receiv-ables of $50,000 had to be written-off as the organization, which held a confer-ence mid-year, had not authorized the banquet folio for the overage. Fraud of $15,000 occurred in the payroll system as a result of the wily payroll administrator’s realization she could access the master file, establish a ficti-tious employee, and lift the paycheck out of the payroll processor’s reporting package before the controller and GM looked at it. After all the audit adjust-ments were finally posted, the resort has failed to meet the financial covenants specified in its loan documents and the bank enforced its $200,000 covenant waiver penalty. How does that $250,000 in “savings” look now?
measuring Internal Controls While this perfect storm is admittedly unlikely, the question remains as to how the benefits of a solid internal control system are measured. There is no doubt that accountants like measurements, but how do we measure the dollar impact of fraud prevented or bad decisions avoided due to an effective flow of information is a critical consideration. Internal control activities must be cost justified; however, recent economic conditions have left substantial doubt about the amount of consideration paid to internal control in the drive for ex-pense reduction and meeting short term financial targets.
Remember that in a tough economic climate weak internal control is more likely to be exploited. Fortunately, a recent control efficiency assessment project we conducted for a resort property demonstrated, internal control can be strengthened without the need to spend much at all.
A few areas that are always deserv-ing of attention when attempting to improve internal control and do not cost much, if anything, include: physical se-curity, logical security, communication,
periodic inventory counts at the resort’s stores and outlets. Lastly, the adminis-trative assistant who reports to the CFO handles all mail received by and sent from the accounting office.
Scenario 2: Resort Profile in 2010 To mitigate the economic pressure on the bottom line of falling revenues the CFO position is eliminated together with the administrative assistant, pre-senting a combined payroll and benefits saving of $250,000. Leadership for the accounting departments is placed on the controller who, due to her workload, can no longer participate in inventory counts and these are left in the hands of the stores’ personnel, and outlet staff members who are ordinarily responsible
meet group reporting deadlines. Credit control becomes challenged and the ag-ing profile of the city ledger deteriorates each month with an accumulation of older balances.
The annual audit rolls around and the books are not adequately closed. The financial statements cannot be audited in the anticipated timeframe as numerous reconciliations have not been per-formed. The property’s relationship with the bank is strained due to its inability to meet quarterly covenant reporting deadlines. However, the bank waives the requirement for audited financial statements within 120 days of year-end. The bank’s new reporting deadline is met; however, the property has had to
Internal control activities must be cost justified;
however, recent economic conditions have left
substantial doubt about the amount of consideration
paid to internal control in the drive for expense
reduction and meeting short term financial targets.
Internal Controls
The Information Protection & Privacy, including PCI-DSS, Workshop Features the Following Sessions:
• Legislative and Regulatory Update: New Laws Regulations and Their Implications for the Hospitality Industry
• The Massachusetts Privacy Law: One Year After the Effective Date – Is it a Lion or a Lamb?
• Data Privacy Essentials: Leading Practices to Avoid a Breach• Level 4 Merchants – Charting a Course for PCI Compliance with-
out Going Broke• Third Party Service Providers – Do You Know Where Your Risks
Are?• PCI-DSS Version 2.0 – What’s New?
This conference mixes law, accounting, and IT and delivers value for hospitality professionals and their attorneys.
Jerry Trieber, Director Field Accounting, Crestline Hotels and Resorts
TO REGISTER, VISIT: REGONLINE.COM/2011HOSPITALITYLAWCONFERENCE
CALL: (713) 963-8800
FOR MORE INFORMATION, PLEASE VISIT:
the
2011
hosp i tal i ty lawconferencefocusing on legal, safety & security solutions
H o s p i t a l i t y l aw y e r . c o m p r e s e n t s
14 December 2010 / January 2011
technology, credit control, segregation of duties and documentation.
Physical SecurityThis is common sense. Lock the doors to areas where access should be restrict-ed and on all inventory storage areas, cages and cupboards. Routinely check that they are locked. Know who has keys and document it. If you are unsure and unable to discover who has keys, consider re-keying all locks, ascertain how key distribution became out of control in the first place, and implement a procedure to ensure key distribution is properly administered henceforth. Speak with your human resources col-league and ensure that employee exit procedures require them to return uni-forms, keys and swipe-cards, and to be marked inactive in the payroll system. As is already common in the industry, clear trash bags should be used through-out the property to mitigate the risk of theft, and employees should not be permitted to carry personal bags on and off the property. Security cameras are great for detecting theft and even better for preventing it in the first instance, but require spending money.
Logical SecurityConsider whether administrator rights to your property’s software applica-tions are appropriate. The fact that the controller does not have rights to approve transactions in your online banking system does not really count for much if they are also the system administrator for online banking. Likewise, if online purchasing is used, the purchaser should not be the system administrator and the property should obtain written confirmation from the vendor of a specific dollar order limit. As a general rule, administrator rights should not rest with the users. If your property is blessed with such resources as a full-time IT manager, administrator rights should rest with that individual and standard documentation should be used to provide evidence of approval of changes to access rights.
Consider whether passwords to your property’s information systems are:
• The word “password”• Shared knowledge among all co-
workers• The same as when the property first
acquired a computer in 1982• Written on a piece of paper conve-
niently kept in the shallow drawer for holding pens and pencils, directly beneath the computer (together with the username, of course).
Passwords should be specific to each user, subject to regular change and not be written on or near the relevant workstation. This also applies to front of the house systems such as point-of-sale terminals in the restaurant, bar, spa and pro-shop, with each user being allocated a specific identification and appropriate rights.
CommunicationCommunication channels between staff members and the GM and/or owner should be sufficiently open so that inter-nal control and operating lapses can be identified and corrected promptly. Em-ployees realize the economic challenges currently being faced by the industry and obtaining staff buy-in to simple cost control measures, such as turning off lights in unoccupied areas of the property and reporting breakdowns in controls, can help maintain service lev-els and mitigate despondency. While on the topic of communication, departmen-tal communication must be sufficiently frequent to facilitate appropriate staff scheduling based on forecasted occu-pancy and event reservations.
Leveraging TechnologyEnd user computing, such as financial analysis and budgeting in spreadsheets, presents a number of risks since simple clerical errors can lead to management decisions being made on the basis of flawed information. Consider where existing applications, particularly the property management system, can be fully used to mitigate risks arising from unnecessary end user computing. Like-wise, consider whether the functionality in “front of the house” applications, such as point-of-sale systems, is be-
A few areas that are always deserving of attention when attempting to improve internal control and do not cost much, if anything, include:
Low Cost Internal Controls
Physical Security Mitigate theft by limiting access to restricted areas by locking doors and cabinets, and routinely checking that they remain locked.
Logical Security Protect software applications and online banking access by appropriately assigning administrator rights, and enacting proper password management.
Communication Develop an open line of communication between staff and managers to encourage the team to point out issues, and participate in cost-cutting measures
Technology Take full advantage of the functionality of existing applications to reduce risk of end-user errors.
Credit Control Prevent unpaid charges by closely following your property’s credit terms, which should be documented, understood by your customers and enforced.
Segregation of Duties Involve non-accountants in the transaction process — have them stuff vendor envelopes with checks and handle remittances.
Documentation Document the performance of key internal controls and retain the documentation.
Internal Controls
The Bottomline 15
ing fully used. For example, cocktail recipes can be pre-programmed into the system so that bar staff members know not to use “top shelf” brand liquors in mixed drinks when a “well brand” would be sufficient.
Credit ControlYour property’s credit terms should be documented, understood by your cus-tomers and enforced. For those proper-ties with a “club” membership element, members should be subject to credit checks, deposits should be taken, and a valid credit card should be held on file. Looking at a basic scenario, consider a member who dines for two twice per week with drinks. Such an individual could easily accumulate $1,000 of charges in a month. Reflect on whether your property has sufficient recourse should the member fail to settle their house account in a timely manner. Clear procedures should be established for members with house accounts to have balances charged to a credit card whenever a predetermined amount is met. Consideration should also be given to charging a deposit against members’ credit cards when opening an account to ascertain the validity of the credit card and partially mitigate the risk of unpaid food and beverage or spa charges.
Segregation of Duties vs. Robust Review Given the limited resources in most properties’ offices, implementing per-fect segregation of duties is typically a challenge. The concept is to segregate physical control of assets from the record keeping for those assets. Hence checks for guest and merchant receipts should not be handled by the accounts receivable clerk, signed disbursement checks should not be handled by the accounts payable clerk, payroll checks should not be handled by the payroll clerk, and inventory counts should not be performed solely by the purchaser.
The addition of accounting staff is not the solution to segregation of
duties challenges — a better method is to involve non-accountants in the transaction process. Consider if there is a non-accounting staff member with capacity to stuff vendor envelopes with checks and remittances once the checks have been signed — this would remove a typical segregation of duties challenge in the accounts payable cycle. Consider whether someone is available to make a list of receipts and compile the bank de-posit, enabling the accounts receivable clerk to update the ledger from the list rather than from the checks, or a non-accounting coworker can perform the remote data capture (RDC) scan where RDC is used. If either situation exists,
ment, how long is that likely to remain undetected?
The Documentation GapIn order to demonstrate sound financial management and internal control com-pliance, the property should document the performance of key internal controls and that documentation should be retained. This could be as straightfor-ward as the GM initialing the monthly reporting packet referred to above, and it being scanned onto the property’s network. Properties should also con-sider developing standard documenta-tion to evidence approval of master file changes for vendors, customers,
then you have substantially addressed a typical segregation of duties challenge in the revenue and receipts cycle.
If segregation of duties cannot be improved due to limited resources, then the review processes need to be solid. Does the general manager have a regu-lar monthly financial reporting packet that includes reconciliations and reports detailing changes to masterfile data in accounts payable, accounts receivable and payroll? If your accounts payable clerk changes a vendor address to a friend’s post office box, will anyone in the property notice in a timely fashion? Who reviews the details of guest cred-its? If your accounts receivable clerk steals a guest check and posts a credit to the respective account instead of a pay-
employees and staff system user rights. In the current corporate governance parlance, “If it isn’t documented, it didn’t happen.”
A Burdensome Cost?The cost of enhancing your property’s internal control structure need not be financially burdensome. Yes, some of the items mentioned throughout this piece will consume additional execu-tive time, albeit a moderate amount. The question you should really ask yourself is whether the integrity of your property’s internal control struc-ture is an aspect of operations that you can afford to see as a luxury in this current or, for that matter, any other economic climate.
The question you should really ask yourself is whether
the integrity of your property’s internal control
structure is an aspect of operations that you can afford
to see as a luxury in this current or, for that matter,
any other economic climate.
Internal Controls
16 December 2010 / January 2011
Green Building
LEED certified hotels and buildings stand out in today’s marketplace. They not only provide benefits for the envi-ronment and reduce operating costs gained from energy
efficiencies and utility cost savings, but also attract a growing population of eco-conscious customers.
To date, there are over 6,500 buildings award-ed LEED certification. In the forefront of this evo-lution, hotel certifications are growing by almost 100 percent annually. By the end of 2009 there were 54 LEED certified hotels and 697 hotels that were in the application process. By August 2010 the number of LEED hotels leaped to 89. Starwood Hotels and Resorts Worldwide is arguably the lead-ing chain with current LEED-certified properties plus those that are pursuing certification totaling 67 in all. Their new chain of Element “eco-hotels” are all built to pass LEED standards. Three are cur-rently LEED-certified, with a total of 12 expected to be open by the end of 2010.
The largest newly-constructed LEED hotels — The Palazzo, Aria Hotel, Mandarin Oriental and Vdara Condo Hotel — are all in Las Vegas. Other notable properties that have seen the “green” light include Seattle’s first LEED-certified hotel, the Hyatt at Olive 8; the Avalon Hotel and Spa in Portland, Ore.; the Terra Resort Group’s Hotel Terra Jackson Hole in Teton Village outside Jackson, W.Y.; and the Platinum LEED certified Proxim-ity Hotel in Greensboro, N.C., the first hotel in the United States to acquire this highest LEED rating.
The surge in LEED applications and successful certifications in the last few years points out that, more than a commendable option, LEED certification has become a competitive reality for the hospitality industry.
LEED CERTIFICATION FOR HOTELS What you’ll need to know and do, and why you’d want to do it
Darren Johnston is director of business consulting for UHG Consult-ing, based in Boulder, Colo., where he advises hospitality firms on how to reduce their operating costs through sustainability programs. Johnston is a frequent speaker at HFTP educational events. Patty Breech is an associate consultant for UHG Consulting. Breech is a LEED Ac-credited Professional with experience in sustainability projects serving the hospitality, customer service and non-profit industries.
By Darren Johnston and Patty Breech
The Bottomline 17
Green Building
What is LEED?LEED stands for “Leadership in Energy and Environmental Design,” and is an independent, non-profit, third-party rat-ing system established by the U.S. Green Building Council (USGBC) in 1998. The LEED rating system is completely voluntary and consensus-based, incorporating both established industry principles and innovative environmental technology. LEED is the most widely-recognized form of green building certification in the United States.
Why LEED?LEED is the international standard for green buildings. LEED certified buildings are recognized by facilities, consumers and the media as the most energy efficient and occupant-friendly structures in the world. The primary reason most hotels seek LEED is operational efficiencies. According to Greentech Media, while the average LEED new construction costs $3 more per square foot to build, that same building reaps $73 per square foot in energy savings. For example, it’s estimated that the Hilton Van-couver put in $125,000 in extra construction cost to be-come LEED certified; but as a result, now enjoys $85,000 in annual savings.
Businesses occupying LEED certified buildings not only earn savings from lower operating costs; they also increase revenue from their “greener” profile. For example, the Wat-kins Research Group found that “green” qualities are an im-portant factor for meeting planners when choosing venues.
There are innumerable advantages associated with LEED certified buildings. Here are the main and obvious benefits, but this is by no means a complete list:
1. Lower operating costs• Lower utility bills from increased energy and water ef-
ficiency. The Proximity Hotel in Greensboro uses 39.2 percent less energy and 33.5 percent less water.
• Lower maintenance cost as a result of detailed preven-tative maintenance plans.
2. Increased property value• Higher market value for new and existing construction.• Higher lease-up rate than conventional buildings.• Not enough data is available in the hospitality indus-
try yet; but with commercial real estate, on average, LEED properties sell for $171 more per square foot, have a 3.8 percent higher occupancy rate and rent for $11.24 more per square foot.
3. Healthier and safer for occupants• Improved indoor environmental quality.• Improved lighting and views. • Better work environment for employees.
4. Certified recognition of green practices• Approval from a non-biased, accepted authority.
• Physical proof of the values of the organization that owns and occupies the building.
• LEED is becoming a market differentiator. Sustain-ability is now the fourth most important decision fac-tor for consumers when choosing lodging.
The LEED designation from the USGBC is currently the standard of the green building industry. Nearly every major company has tried to market itself as “green” in response to the recent sustainability movement, but only those with LEED certified buildings have third-party verification of their claims.
How it WorksThe process begins with registration of the LEED project online along with a registration fee (usually around $1,000). After registration, the project team demonstrates the sustain-ability of its property through documentation of various building processes and characteristics, using the USGBC-provided forms.
LEED operates on a 100-point scoring system. A prop-erty must meet a minimum of 40 of these points to attain certification. While the project team has a good deal of freedom in selecting which points to pursue, there are also a set of mandatory prerequisites which carry no points them-selves, but must be achieved before points are awarded.
For existing buildings, the project team selects a time frame, called the “performance period,” in which to demonstrate compliance. The performance period can be anywhere from three months to two years. To illustrate, existing buildings can earn points for demonstrating that a certain percentage of their cleaning product purchases are sustainable by LEED standards. The project team can choose to document the building’s purchases from a three month performance period, a six-month performance period, or longer — up to two years. However, all perfor-mance periods must end concurrently.
The primary reason most hotels
seek LEED is operational efficiencies.
According to Greentech Media, while
the average LEED new construction
costs $3 more per square foot to build,
that same building reaps $73 per
square foot in energy savings.
18 December 2010 / January 2011
Green Building
Because a national LEED representative never comes on site, the process relies heavily on the documentation of the project by a local source. The creation of documentation can be very time consuming and precise (as one would expect from documenting several months of purchases, as in the example above). Thus one individual or firm is normally charged with managing the LEED certification process as LEED project manager. This individual or firm normally works alongside the property management, engineering staff and third party contractors to ensure that proper documenta-tion is being created. Since most lodging personnel have their hands full with their own jobs, it’s often advisable to seek out assistance in the form of a LEED consultant, par-ticularly one with creativity and an ability to manage teams of people.
Applicants must fill in an online application along with credit worksheets. Once the forms have been completed and all additional documentation has been collected, the LEED application is submitted online to the USGBC along with a second fee which ranges from $2,000–$30,000 depending on the size and complexity of the project. As you await the USGBC response, you may need to provide documentation back-up as required. You may also petition denied credits, if warranted.
Explaining LEED StandardsWhile the majority of LEED projects are new construction (LEED NC), LEED standards are also available for existing buildings (LEED EB: O&M), commercial interiors, schools and core/shell. Buildings can qualify for four levels of certification, based on the number of points achieved in the 100-point scale:1. Certified: 40–49 points 2. Silver: 50–59 points3. Gold: 60–79 points4. Platinum: 80–110 points
These 100 possible points come from exceeding standards in seven different categories:
1. Sustainable Sites — Where is the building located? Points here can be achieved for being in a developed urban area with access to public transportation, for reducing light pollution and stormwater run-off, for reducing the urban “heat island” effect by having covered parking, large land-scaped areas or a living green roof.
2. Water Efficiency — What is the efficiency rating of the water fixtures? Points can come from super low-flow fixtures that use less water than the industry standard, for a low-wa-ter irrigation system or a creative gray water reuse system.
3. Energy and Atmosphere — How does the building’s energy use compare to the rest? Points for being more energy efficient than similar buildings in the same size and use cat-egory, per Energy Star standards; for solar panel systems or green power purchases. Points are also awarded for commis-sioning the building to ensure it is running at an optimal level.
The Path to LEED Qualification
The process to qualify for LEED certification requires heavy documentation demonstrating the sustainability of the property via various building processes and characteristics. Here are the basics:
Registration and ApplicationThe process begins with online registration of the project, along with a registration fee (usually around $1,000). Once the process is complete (either at the end of the construction period/or selected performance period), Leed project managers submit the application online along with completed forms, additional documentation and a second fee (which ranges from $2,000–$30,000).
LEED Points ScaleLEED operates on a 100-point scoring system. Both new and existing construction can seek certification. A property must meet a minimum of 40 of these points to attain certification. There are also a set of mandatory prerequisites which carry no points themselves, but must be achieved before points are awarded. Buildings can qualify for four levels of certification, based on the number of points achieved in the 100-point scale:
1. Certified: 40–49 points
2. Silver: 50–59 points
3. Gold: 60–79 points
4. Platinum: 80–110 points
FulfillmentThe 100 possible points come from exceeding standards in seven different categories:
1. Sustainable Sites
2. Water Efficiency
3. Energy and Atmosphere
4. Materials and Resources
5. Indoor Environmental Quality
6. Innovation in Operations
7. Regional Bonus Points
Hospitality Industry AdvantageHotels are well-suited for LEED certification in many ways. Here are just a couple:
Waste Reduction — Install environmentally-friendly and cost savings options like reusable cloth towels in public restrooms, paperless check-in systems, etc.
Energy Savings — Re-configure lighting and HVAC schedules and save tens of thousands of dollars yearly.
The Bottomline 1�
Green Building
4. Materials and Resources — What materials is the building made from? Points for rapidly renewable, recycled and regional materials; for diverting waste from the landfill by recycling or composting; for an existing building, points for purchasing rapidly renewable, recycled and regional materials needed for daily operations.
5. Indoor Environmental Quality — How comfortable is the building for its occupants? Points for exceeding the minimum outside air or minimum filter requirements; for se-lecting paints and cleaning products that do not emit harmful chemicals; for providing daylight and views to the majority of the interior spaces, and points for providing heating and cooling systems that can be easily adjusted by occupants.
6. Innovation in Operations — This category allows each project team the flexibility to address a green building fea-ture not found in any of the above categories.
7. Regional Bonus Points — Some environmental issues are highly regional in nature, such as the greater need to conserve water in the dryer Western states. LEED rec-ognizes the importance of these issues and awards bonus points for addressing credits sensitive to the region where the building is located.
LEED and HospitalityProperties in the hospitality industry have a wide range of functions, including food and beverage operations, laundry operations and maintaining HVAC conditions for guest comfort, which can make the LEED application process somewhat complex, but at the same time these nuances offer many opportunities for improvement and for gaining LEED points. Hotels then, are well-suited for LEED certification in many ways. Following are a couple:
Waste Reduction — Environmentally-friendly and cost savings options can include providing reusable cloth towels in public restrooms, which significantly reduces the number of paper towels used; purchasing recycled-content toilet paper and tissues for guest rooms; switching to a paperless check-in system; replacing paper cups with reusable plastic ones; replacing bottled water with water coolers.
Energy Savings — Reconfiguring lighting and HVAC schedules can save tens of thousands of dollars yearly: switching to an ozone laundry system which reduces water usage, uses only cold water and shortens the washing cycle, and upgrading all applicable guest room lighting to energy efficient CFL bulbs.
LEED Economic FactorsWith LEED NC projects, controllers are often limited by budget decisions. The cost of going LEED is often kept at one to five percent of the total project cost. On LEED EB projects, controllers play a more significant role shaping the project, with the majority of EB costs going to hiring a sav-vy, experienced LEED consultant to supervise the project.
In either case, the controller can dictate the success of the project. Key ingredients to a successful LEED project
include working with a strong project manager who under-stands the time commitment involved in the LEED process. And effective documentation, which means putting systems in place early to ensure optimal tracking if you are working with existing buildings and deciding on LEED early in the process for new construction.
Finish LineLEED buildings need to be re-certified every five years and controllers are often tasked with the responsibilities of track-ing LEED during that time period. To accomplish, this you will need to put sustainable tracking systems in place.
While LEED certification is a lengthy and detailed process, it is well worth the effort. In the past two years, survey after survey shows that the LEED designation carries considerable weight amongst the burgeoning population of environmentally-conscious travelers. Most notably, Trip Advisor’s “2010 Travel Trends Survey” reports that 33 per-cent of travelers now consider green policies when choosing a hotel to stay at.
The bottom line is this — the compensations for meeting LEED standards can be enormous. Properties will realize cost savings from waste, energy and water use reduction; as well as savings resulting from improved procurement policies. Plus having a “green” identity improves public relations leading to an increase in sustainability-driven conferences and guestroom sales. It’s no wonder that LEED certification is fast becoming the norm in the hospitality industry.
While LEED certification is a lengthy
and detailed process, it is well worth the
effort. In the past two years, survey after
survey shows that the LEED designation
carries considerable weight amongst the
burgeoning population of environmentally-
conscious travelers. Most notably, Trip
Advisor’s “2010 Travel Trends Survey”
reports that 33 percent of travelers now
consider green policies when choosing a
hotel to stay at.
20 December 2010 / January 2011
Social Media
What do a graduate student from Berkeley, a waitress from North Carolina and an employ-
ee with the Philadelphia Eagles have in common? They all learned the hard way of the danger in (electronically) speaking their mind on social media sites.
A Bitter-tweet EndingGraduate student Connor Riley became famous when, upon receiving a job of-fer from Cisco, she tweeted, “Cisco just offered me a job! Now I have to weigh the utility of a fatty paycheck against the daily commute to San Jose and hat-ing the work.” She later explained she was being sarcastic.
Cisco’s Tim Levad wasn’t laughing. He read the tweet and responded, “Who is the hiring manger? I am sure they would love to know that you will hate the work. We here at Cisco are versed in the Web.”
Word on the (cyber) street is that Riley is employed by another firm and doing well. Apparently, Cisco wasn’t the best fit after all.1
Here’s a Tip: Don’t Insult Your Customers on FacebookAshley Johnson got stiffed on a tip while working at Brixx Wood Fired Pizza in Charlotte, N.C. She responded by skewering the frugal patrons using her Facebook page. Her manager got wind of the tirade and Johnson is out of the wood fired pizza business.2
I CAN’T BELIEVE YOU SAID E-mAILED TEXTED POSTED TWEETED THAT!!!!!
How to positively manage the social media explosion amongst employees
By Joe Pittel
Joe Pittel is an attorney with Secrest Wardle. He can be reached at [email protected]. The information provided is general and educational, and is not legal advice. For more information, please visit www.hospitalitylawyer.com.
What An Extra PointDan Leone, a part-time stadium op-erations worker for the Philadelphia Eagles, got sacked (sorry for the pun, but I couldn’t resist) after he posted on his Facebook page that the Eagles organization was “retarded” for failing to resign Pro-Bowler Brian Dawkins. If Leone had made this statement at the counter at Geno’s instead of on his Facebook page, the Eagles wouldn’t have lifted a talon. In the age of Twitter and Facebook, however, Leone’s state-
ments went viral. He found himself on ESPN, but out of a job.3
Although criticized for the firing, the Eagles felt that an employee — even a part-time one like Leone — should not be free to besmirch his employer in public. In an odd twist, Philly fans started a “Re-hire Dan Leone” Face-book page in reaction to the firing. In protecting their e-image, the team found itself in a lose/lose situation. Even worse, Leone is apparently rooting for the Redskins and Cowboys this year.
22 December 2010 / January 2011
Social Media
In each of the above examples, an employee used social media to criticize their employer, or worse, the company’s paying customers. If you think the problem is limited to the anecdotes noted above, OMG, u r way off! In a 2009 study of large compa-nies, 17 percent reported having issues with employees’ use of social media. Eight percent reported having actually dismissed someone for social media behavior, double the percentage that was fired the previous year.4
It’s scenarios like these that have managers around the world “texting” their shrinks. The biggest cause for therapy is the realization that there is no easy solution to this relatively new problem. It’s true, a statement a person makes about his employer on a social media site is treated the same as a statement he or she might make in front of a crowd of customers. Hence, an employer’s initial instinct might be to rule with an iron fist. (Note:
for those wondering about the Con-stitution, the First Amendment only protects an individual from govern-ment action. There is nothing stopping a private sector organization from canning someone for making nega-tive comments about their employer.) Yet, any manager who thinks that a company can protect itself simply by tightening social media controls needs to update his profile. There are more than 350 million Facebook users in the world and three million “Tweets” are sent every day. In sum, there is too much information, too many users and too many portals of access to com-pletely shield your company from a social media assault.
The courts are working feverishly to address social media issues, but the le-gal process is slow and social media, in contrast, changes with alarming speed. Experts say, however, there are some things a company should do in the face of the social media explosion.
Implement A Social media PolicySome might argue that implement-ing a social media policy is redundant because rules that require employees to behave appropriately offline apply to their online behavior. This philosophy ignores the unique nature of online communication. Social networking makes communication instantaneous, accessible and permanent. Low level employees — like those individu-als described above — have an easy medium in which their opinions can be transmitted and magnified. Moreover, smart phones have shortened the time between an individual’s knee jerk reac-tion to something and its publication. The Eagles’ Dan Leone said he lost his head and immediately regretted his comments. Unfortunately, as soon as Leone posted his comments they were burned into Internet history.
A social media policy will help managers and employees understand their obligations when it comes to social media. The best social media policies are those that acknowledge and embrace the fact that employees use social media and that it can be a benefit to the company.
A cursory review of social media guidelines from a sample of private and public entities shows that there is no universal set of guidelines that each company follows.5 Most social media policies:• Give employees notice that business
conduct guidelines, including anti-harassment policies, apply to online communications.
• Instruct employees to refrain from posting information that might be harmful or embarrassing to a client or customer.
• Urge employees to use disclaimers if they disclose information relevant to the company, with the disclaimer stating that views expressed are not the views of the company.
• Prohibit the release of confidential or proprietary information.
• Inform the employee of his or her responsibility for potential liability for slander, copyright infringement and other civil causes of action.
Social Media Policies — Social media policies help managers and employees understand their obligations when it comes to social media. The best ones acknowledge and embrace the fact that employees use social media. The policies are designed to protect, as well as complement, the business.
Social Media Departments — Whether a company creates a whole department or just tasks marketing managers with the job, directing focused attention to such outlets is a great marketing opportunity. Plus, dedicated employees are in the best position to watch the company’s online “back.”
Internal Blogs — Use this as a forum for staff to anonymously vent their frustrations, discuss ideas or ask questions. Providing a relief valve for an employee’s complaints might go a long way towards preventing an embarrassing, public situation online.
Measured Reaction — Reacting to every negative byte will surely smash a manager’s nerves to bits. Be wary of the paranoia that results from scouring the Internet for negative comments and firing every employee who makes a questionable online decision. Instead, resist the temptation to address every unflattering post and save the fight for serious infractions outlined in the social media policy.
SOCIAL mEDIA? NO PROBLEmWays to positively manage social media use
The Bottomline 23
It is worth remembering that social media is as new to the individual employee as it is to the company. Thus, many social media policies contain tips for effective communication such as how to avoid picking online fights, how social media can be used to as-sist employees in their job, and when an employee should identify himself or stay anonymous. Social media is a reality of our time and it is here to stay. Companies should acknowledge it with a thoughtful and specific policy designed to protect, as well as comple-ment, the business.
CreateaSocialMediaDepartmentDespite the dangers, most savvy man-agers agree that social media represents an incredible marketing opportunity. In fact, many companies have already established social media departments specifically designed to find ways to use social media to the company’s advantage. Others have hired social media managers. Whether a company creates a whole department or just tasks marketing managers with the job, focusing on social media makes sense. Plus, although focused on marketing, social media specialists are also in the best position to watch the company’s online back.
VentingFrustrationsRiskFreeSeveral companies have internal blogs which provide a forum for staff to anon-ymously vent their frustrations, discuss ideas or ask questions. Some companies even require managers to review these blogs so that they can implement sug-gestions or benefit from the constructive (if not vitriolic) criticism. Providing a relief valve for an employee’s com-plaints might go a long way at prevent-ing employees from blowing their stack and embarrassing the company or its clients on their Facebook page.
ResisttheUrgetoOverreactPeople have been “twitching” about their workplaces since the first em-ployee went to work for the first employer. Keeping this in mind, companies should resist the tempta-tion to address every unflattering post. This is not to say that serious infrac-tions shouldn’t be harshly dealt with, especially when an employee’s online chatter threatens business by criticiz-ing customers or divulging secrets. Companies should be wary, though, of the paranoia that results from scouring the Internet for negative comments and firing every employee who makes a questionable online decision. React-ing to every negative byte will surely
Social Media
smash a manager’s nerves to bits. In addition, managers should keep in mind that the public is naturally suspicious of what they find on the Internet. Although recognizing it as a stellar information source, most people acknowledge that the Internet is filled with misinformation and inaccuracies. Certainly, the outrage and hurt feel-ings that come when an employee or customer makes an unflattering remark is understandable. A company might serve its interests best, however, by keeping its powder dry and recogniz-ing that sticks and stones can break your bones, but e-words can (only sometimes) hurt you. Sources1. www.msnbc.msn.com/id/299013802. www.huffingtonpost.com/2010/5/17/
brixx-pizza-fires-waitres_n_578847.html
3. sports.espn.go.com/nfl/news/story?id=3965039
4. www.marketwire.com/press-release/Proofpoint-Survey-Says-State-Economy-Leads-Increased-Data-Loss-Risk-Large-Companies-1027877.htm
5. socialmediagovernance.com/policies.php
24 December 2010 / January 2011
Club Accounting
The Uniform System of Financial Reporting for Clubs (USFRC) is the guide to reporting for external
and internal users of club finance in-formation. The first uniform system of accounts for clubs dates back to over 65 years with a few copies published of the Proposed Uniform System of Accounts for City Clubs in 1942. In 1954 the Uniform System of Accounts for Clubs covering both country and city clubs was first presented for sale. In 2003, the sixth revised edition, and most current edition, of the USFRC was issued. The sixth revised edition is followed by many clubs.
Our research directed to club finan-cial executives posed the following:• Does your club follow the USFRC?• What is the single major benefit of
the USFRC?• What is your level of satisfaction
with the current edition?• If there is one thing you could change
in the USFRC, what would it be?• Is it time to update the sixth revised
edition?
Answers to these questions based on our research will be provided in this ar-ticle along with our recommendations.
In conducting our annual balance sheet ratio research, we added another page containing the above research questions. Our questionnaire was mailed to 1,000 HFTP members associ-ated with clubs. Eighty questionnaires were returned as “undeliverable” thus resulting in 920 club financial execu-
tives receiving our questionnaire. Just over one hundred (107) were returned resulting in a response rate of nearly 12 percent.
Overview of RespondentsThe titles of the respondents, the type of club employing them, the size of their clubs based on number of members, the location of their clubs and the profit orientation were the demographics requested (see charts on page 25).
The titles of respondents varied from staff accountant to CFO. Just over four of every five respondents (81.1 percent) held the title of controller. Another 6.6 percent were assistant controllers and the same percentage were CFOs. The remaining 5.7 percent had titles such as club accountant, director of finance and treasurer. Clearly, it appears that re-spondents were in positions of financial responsibility and knowledgeable about club accounting and finance.
Agnes DeFranco, Ed.D., CHAE, CHE, is a professor and the assistant vice president for undergraduate studies at the Conrad N. Hilton College of Hotel & Restaurant Management, University of Houston. DeFranco was the 2006 – 2007 HFTP Global President. Raymond S. Schmidgall, Ph.D., CPA, CHAE, is the Hilton Hotels Professor at The School of Hospitality Business at Michigan State University. He is also a member of the Communications Editorial Advisory Council and a recipient of the 2002 HFTP Paragon Award.
USFRC — TImE TO REVISE
By Agnes DeFranco, Ed.D., CHAE, CHE and Raymond S. Schmidgall, Ph.D., CPA, CHAE
A club executive survey demonstrates enough industry changes to warrant a new edition of the Uniform System of Financial Reporting for Clubs
The Bottomline 25
The majority of financial executives were employed by country clubs (67.9 percent). Other types of clubs represent-ed included golf clubs (13.2 percent), city clubs (6.6 percent), yacht clubs (6.6 percent) and other clubs (5.7 percent). The remaining 5.7 percent of respon-dents indicated their clubs included university, tennis and pool clubs.
The number of members of the clubs ranged from less than 300 to over 2,000. The most common size (25.2 percent) were clubs with 501–750 members followed by clubs with 1,001–1,500 members (19.4 percent), clubs with 300–500 members (17.5 percent), and clubs with 751–1,000 members (16.5 percent).
The two additional dimensions were location and profit orientation. Just over half (50.5 percent) of the clubs of responding financial executives were located in the Eastern part of the U.S., followed by 32.4 percent in the Central region, and 17.1 percent in the West. Most clubs (88.3 percent) have a not-for-profit orientation while 11.7 percent were organized for profit purposes.
Thus, the most common respondent was a controller employed by a not-for-profit country club with a membership of between 501–750 members located in the Eastern portion of the United States. The following section of this article includes our research findings.
How about the USFRC?The fundamental question regarding the USFRC was simply, “Does your club follow the USFRC?” As mentioned at the beginning of the article, the USFRC dates back to the early 1940s. It has been the standard for financial reporting for several decades.
Just over half (52 percent) of the fi-nancial executives indicated their clubs follow the USFRC. That also means 48 percent of the clubs apparently do not. We were very surprised that nearly half the clubs do not base their finan-cial statements on the recommended standard for the club industry. To be fair, one in 12 respondents indicated they “do not know” whether their clubs follow the USFRC. This response was
taken as a “no, their club does not fol-low the USFRC.”
For those clubs following the Uni-form System, the major benefit revealed by 68 percent of the responding finan-cial executives is that they are able to properly compare their club’s financial results to published club industry aver-ages. PKF publishes national averages while a number of consulting firms publish regional operating averages. The remaining 32 percent of financial executives whose clubs use the uniform system consider the greatest benefit to be that they “follow an accounting sys-tem designed for clubs.” Since the ad-vantages of using a uniform system are apparent, perhaps HFTP should provide more information on financial reporting to their members associated with clubs, especially stressing the importance of being able to compare results by using a recognized system.
Specific suggestions for changes in the Uniform System were received from only 11 respondents. Notable sugges-tions included the following:• Combine telephone and clubhouse
departments• Include a schedule for reporting
capital expenditures• Make schedules for a yacht club• Provide more clarification of
account titles• Provide schedules for
residential clubs
Responses to overall satisfaction were threefold. Thirty-five percent of the respondents were satisfied, while 10 percent were dissatisfied. However, 55 percent of the financial executives indicated overall they were indifferent. Again, when the majority has no strong feeling, it is difficult to determine how they really might feel.
Regardless of the few suggestions of specific changes and the small percent-age of dissatisfied users, 64 percent of the club financial executives suggested the USFRC could use some minor updating. Another one-fourth of the respondents suggest “leave it as is” and other views from the remaining 11 per-cent of responding club financial execu-
PROFILE OF RESPONDENTS
Club Accounting
Controller, 81%
Asst. Controller,
6%
CFO, 7%
Other, 6%
Titles
Club Type
Country, 68%
Golf, 13%
Yacht, 7%
Other, 6%
City, 6%
membership Size
501 – 750 25%
751 – 1,000 17%
1,001 – 1,500 19%
>1,500 11%
<300 10%
300 – 500 18%
Location
East, 51%
West, 17%
Central, 32%
26 December 2010 / January 2011
tives included “it certainly needs it” and “will need to be reviewed periodically.” So what is to be done?
Our SuggestionsIt is obvious that standards are good to facilitate comparison within and between clubs. While doing this re-search, it is also obvious that the club industry is continuously evolving. New demands, economic conditions and new means of establishing clubs indicate that the club industry is not solely made up of the traditional 501(c)(7) club any longer. Wendy Zurstadt, CPA, CHAE, CHTP, CAM chief financial officer of The Polo Club at Boca Raton and Leonard Bartello, CHAE, CHTP, CPA, LCAM, owner of Forty Years Consult-ing in Florida, were members of the committee that revised the last edition of the USFRC. Zurstadt states there are four major types of clubs: traditional stand alone, residential country club, large scale association, and manda-tory membership residential. Bartello has also seen a sharp growth of new “bundled-community” clubs as his clientele. Indeed, Philip Newman, CPA, managing director for McGaldrey, and Tammy Tassitano, CPA, national direc-tor of club services for McGladrey, also share the same sentiments (2010).
Due to the growth of these new categories, Zurstadt indicates that the current USFRC, is too heavily concen-trated on the traditional 501(c)(7), and should be revised to address bundled communities. Thus, the first sugges-tion for the revision committee for a new USFRC is to include a substantial section for these clubs. If not, perhaps
another book entitled the Uniform System of Financial Reporting for Residential Club Communities would be helpful. Bartello concurs, as he has been assisting clients to include such configurations whenever their club software is upgraded or changed so their accounts can better reflect their type of operation. Newman and Tas-sitano (2010) further explain that many of these bundled communities have the choice of following either the USFRC or the Common Interest Realty Associa-tion (CIRA) Guide. But, many discrep-ancies exist amongst the two sets of accounting practices that make true accounting, let alone benchmarking and comparison, a difficult task. One such difference is the method of reporting on common property where property under CIRA may not be recognized as assets under the balance sheet. The industry therefore needs to respond and pro-vide an updated tool for its managers and owners to assess the strengths and weaknesses of their operations.
Second, we suggest the USFRC be revised following a set schedule. Consider starting the revision cycle five years after publication. In the begin-ning of the sixth year, form a group of industry users, representatives of firms that provide financial informa-tion to clubs, club financial managers and club general managers. It is also important to use complementary venues such as the CMAA World Conference and the HFTP Annual Convention & Tradeshow to conduct focus groups and send surveys to financial users to solicit input. At the beginning of year seven, start the editing and publication
cycle so a new version can be released every seven to eight years. Newman also suggests that an opportune time for revision is to start the organizational work now and have the first convening meeting next summer since the final ruling of leases as a consequence of the convergence work of the IASB and FASB is due out in June 2011.
Third, marketing is always the key. Since many respondents mentioned they are not aware of the standards, perhaps more intentional marketing information and tactics are needed. Many clubs still believe that since they are independent operations, compari-sons are not needed. There is also the belief that each club is its own entity and clubs are not like hotels within a corporation that have to follow a “set” standard; they should be able to pick whatever accounting guidelines they want to follow. However, if one looks at the industry as a whole, there have been many changes since the last edi-tion, and standardization, especially in accounting reporting, is needed. It might be good to include information sessions at key club related conferences as those mentioned previously. It is also important that such marketing should not be done only when a new edition is first published, but should be done on a consistent basis to increase awareness. For the hospitality educational commu-nity, perhaps more articles explaining the USFRC and the benefits of follow-ing this standardized reporting system can be published in selected journals.
Treat the USFRC as vitamins that are needed to sustain the financial health of a club. An apple a day keeps the doctor away. A page of the US-FRC a day keeps the integrity of your club finances strong. Many accounting standard changes are right at our front door and will be in place in the next couple of years. Preparation is the key. It is high time to revise the Uniform Standards.
Sources• Tassitano, T. and Newman, P.
(2010). Everything You Know Is Wrong. The Bottomline, 25(6), p. 23–25.
Club Accounting
Many accounting standard changes
are right at our front door and will be
in place in the next couple of years.
Preparation is the key. It is high time to
revise the Uniform Standards.
The Bottomline 27
Data from the “2010 HFTP Compensation and Benefits Survey” conducted by the HFTP Research Institute was released in the September 2010 issue of The
Bottomline. This report provided an overview of the num-bers and statistics generally giving information on all groups of respondents. As most of you know, it is hard to compare apples to oranges, such as controller salaries at club and ho-tel properties. For this reason, the following article provides further details pertaining specifically to the club and hotel segments of the hospitality industry. These two segments were chosen because there was a significant number of respondents in these two groups.
History and IntroductionThe first survey of the HFTP membership was published in The Bottomline in 1989. This article was titled “A Profile of the IAHA Member” and provided general demographic information. Through the years the survey evolved into the HFTP Compensation and Benefits Report which was first published in 2000. The 2000 report was conducted by a consulting firm, with the first report by the HFTP Research Institute published in 2002. The HFTP Research Institute has continued to conduct this survey since 2002 on a bien-nial basis; therefore, comparative data is available for 2002 through 2010.
The 2010 report was distributed via e-mail to 2,862 members of HFTP who had agreed to receive communica-tion from HFTP. Out of the 2,862 who received the e-mail invitation, 414 individuals responded to the survey providing a 14.5 percent overall response rate. The survey was distrib-uted using SurveyMonkey.com, an online survey provider. An online survey is preferred because it allows for dynamic questions to adjust to the respondents answers. For example, members that indicated they worked for clubs were only asked questions specific to club properties.
In order to conduct detailed analysis it was important to determine the largest groups of respondents to the survey. The majority of respondents were either from club properties (45.8 percent) or lodging properties (41.9 percent). By job ti-tle, the largest number of responses were from those with the title of controller (38.4 percent) followed distantly by those with the title of director of finance (11.6 percent). For this reason, most of the data analyzed focuses on club or lodging controllers. For a complete breakdown of responses, please reference the complete report published in the September 2010 issue of The Bottomline.
Club vs. Hotel Controller SalariesOne of the best places to start is by comparing club and hotel controller salaries. The question pops up from time to time as to which segment of the industry pays better. According to the respondents in the 2010 survey, hotel and
Tanya Venegas is program director of the HFTP Research Institute at the University of Houston and frequent speaker at HFTP conferences.
2010 HFTP COmPENSATION AND BENEFITS SURVEY
A Look at the Details
By Tanya Venegas
28 December 2010 / January 2011
club controller salaries are fairly evenly matched with hotel controllers indicating that they earned just $344 more than their club counterparts.
On the other hand, when you compare overall compensa-tion, club controllers make slightly more ($731) than their hotel counterparts. The differences lie in deferred compensa-tion and bonuses. As defined in the 2010 survey, deferred compensation includes pensions, retirement plans, stock options and other forms of income which will be paid out at a later date. Club controllers earned $5,767 more deferred compensation than their hotel counterparts. Hotel controllers projected to earn $4,692 more in bonuses in 2010 than their club counterparts. Either way, it appears that there are not any major discrepancies between compensation for hotel and club controllers.
Job ResponsibilitiesEven though there may not be any major differences in sal-ary, it is interesting to note that job responsibilities tend to differ between the two segments of the hospitality industry. Overall respondents indicated that they oversee the follow-ing departments: accounting/finance (87.9 percent), tech-nology (58.9 percent), human resources (40.1 percent) and administrative/clerical staff (29.3 percent).
It starts to get interesting when you analyze departments supervised by industry. It is expected that the majority of controllers would be in charge of the accounting/finance function, approximately 82 percent from both segments of the industry. Responsibilities tend to separate for the other categories. First of all, 50.9 percent of club controllers supervise the technology function with only 39.5 percent of hotel controllers overseeing this department. The dra-matic differences are seen when data is analyzed for human resources and administrative/office staff. Fifty-six percent of club respondents oversee the human resources function with only 13.2 percent of their hotel counterparts doing the same for a difference of nearly 43 percent. In addition, 39.5 percent of club respondents oversee administrative/office staff and only 5.3 percent of hotel respondents do the same for a difference of 34 percent. Both segments of controllers were fairly evenly matched when it comes to overseeing security operations at their respective properties. It appears that hotel controllers are able to focus more of their time and energy on the primary job function in the accounting/finance department while their club counterparts are required to be a jack-of-all-trades and supervise not only accounting/finance functions, but also technology, human resources and admin-istrative duties.
Hours WorkedMoving along to another important question, how many hours do club and hotel controllers actually work during an average work week. In general, hotel controllers indicated an average work week of 51.6 hours with club controllers averaging a slightly shorter work week of only 45.3 hours.
2010 Projected Controller Salaries
Clubs vs. Hotels
Clubs Hotels
Number of Responses 96 34
2010 Salary $ 84,828 $ 85,172
2010 Deferred Compensation 9,807 4,040
2010 Bonus 6,505 11,197
Totals $101,140 $100,409
Departments Supervised
Club vs. Hotel Controllers
Clubs Hotels
Accounting/Finance 82.5% 81.6%
Technology 50.9 39.5
Human Resources 56.1 13.2
Administrative/Office Staff 39.5 5.3
Security 4.4 5.3
Time Working at Home, Office, and Traveling
Club vs. Hotel Controllers
Overall ClubProperties
Hotel Properties
Hotel Mgmt Co.
Home 14.1% 6.7% 25.0% 13.3%
Office 76.1 89.8 64.0 76.8
Travel 7.1 2.4 7.6 7.8
Other 2.7 1.1 3.4 2.1
“ It appears that hotel controllers are able to focus more of their time and energy on the primary job function in the accounting/finance department while their club counterparts are required to be a jack-of-all-trades…”
(Look at the Details continued on page 30.)
Survey Report
Shortly after publication of the 2010 HFTP Compensation and Benefits Report, an HFTP member in the Phoenix,
Ariz. area contacted the HFTP Research Institute requesting salary data for hotel controller and assistant controllers. In addition, the member specifically wanted to look at properties in his region which earned greater than $15 million in annual revenues. Unfortunately, there were not enough properties to make a comparison within his region, but we were able to pull nine assistant controller and 13 controller salaries at lodging properties which earned greater than $15 million in annual revenues.
On average, the data indicated that assistant controllers were projected to earn nearly $70,000 in 2010 and controllers would earn nearly $94,000. I sent the information to the member and he shared the data with his general manager who indicated that the controller salary appeared accurate, but the assistant controller salary was entirely too high for the Phoenix area.
Further analysis was needed to determine why there was such a discrepancy. The annual revenues were the same
Assistant Controller
Projected Annual Base Salary — 2010
Annual Base Salary — 200�
Annual Base Salary — 2008
Number of Respondents 9 9 8
Mean $69,671 $67,511 $64,888
Median 65,000 63,000 60,500
Percentiles:
25th 60,018 56,800 55,150
50th 65,000 63,000 60,500
75th 83,500 81,500 77,250
Controller Projected
Annual Base Salary — 2010Annual
Base Salary — 200�Annual
Base Salary — 2008
Number of Respondents 13 13 13
Mean $93,906 $92,290 $89,745
Median $93,030 $92,000 $89,500
Percentiles:
25th $87,250 $86,000 $85,000
50th $93,030 $92,000 $89,500
75th $100,000 $100,000 $96,000
and other demographics were calculated such as size of hotel, years in current position, type of property, work at the regional or property level, education and geographic location. The only deciding factor was determined to be location. Out of the nine respondents with the title of assistant controller, six had provided geographic location information. These six individuals were from places with very high cost-of-living indices such as Los Angeles, San Diego, Toronto and Washington D.C. Recent reports indicate that cost-of-living at these locations can be greater than 150 percent when compared to other cities such as Phoenix. Once this was factored into the equation, it was determined a realistic salary for an assistant controller in Phoenix would be approximately $55,000. The general manager indicated that this was more on par with what his idea of an assistant controller salary should be in their area.
In addition, controller salaries were also analyzed. It was determined, that the controllers who responded to the survey were from locations with similar cost-of-living indices to Phoenix and no adjustments were needed.
COST-OF-LIVING ImPACTS REGIONAL SALARIES
CASE STUDY
Profile: Controller Salaries
The Bottomline 2�
�0 December 2010 / January 2011
Given the fact that pay is nearly the same for individuals in both segments of the industry, many will argue that hotel controllers are getting the short end of the deal.
Further analysis was conducted to determine what per-centage of time hotel and club controllers spend working in the office, at home, and traveling. Hotel controllers indi-cated that they work a greater amount of time at home (25 percent) than club controllers (6.7 percent). When you take the number of overall hours worked and multiply that by the percentage of time worked in the office, it indicates that
hotel controllers only spend 33.0 hours of their work week in the office, 12.9 hours working from home, and 3.9 hours traveling. When calculated, club controllers average 40.7 hours in the office, 3.0 hours working from home, and only 1.1 hours traveling. Even though hotel controllers tend to have a longer work week, they indicated that they spend less than 40 hours per week in the office and have a more flexible work schedule than their club counterparts.
Paid LeaveIn the 2006 and 2008 issues of the HFTP Compensation and Benefits Survey many members indicated that their employ-ers were beginning to offer paid-time-off (PTO) rather than vacation and sick leave. For that reason, questions were included in the 2010 survey to determine how many proper-ties were offering PTO. Club and hotel properties were fairly evenly matched when it came to offering paid-time-off. Twenty-eight percent of club properties offered PTO leave with 30 percent of hotel properties offering PTO leave. The difference lies in the number of days offered. Clubs only averaged 9.1 days and hotels averaged 13.4 days, for a dif-ference of just greater than four days.
The remaining 70 plus percent of hotels and clubs offered a traditional combination of vacation and sick day paid leave. Club respondents received an average 15.2 vacation days and 6.8 sick days, while their hotel counterparts aver-aged 15.1 vacation days and 6.1 sick days.
One thing is certain, those respondents who receive PTO days versus traditional vacation/sick days receive far less paid leave. For respondents from the club industry, those with PTO leave receive 12.9 days less paid leave than their club counterparts that receive vacation/sick leave. In addi-tion, hotel respondents with PTO leave receive 7.8 less days of paid leave than those with vacation/sick leave.
ConclusionAs noted in this article, there are multiple differences when it comes to the demographics of club and hotel properties. The differences extend far beyond industry segments and continue by size of property, geographic location, annual revenues, ownership, tax status, etc. For this reason, it is very important to thoroughly analyze data before any spe-cific comparisons can be made.
In the past, the HFTP Research Institute has been able to provide regional reports with adequate accuracy. Unfortu-nately, the response rate to the 2010 survey was somewhat lower than in previous surveys making it difficult to provide any general regional reports. For this reason, we encourage you to contact the HFTP Research Institute and request a specialized report for your property. Please refer to the case study provided (page 29) for an example report of the in-formation and research we can provide. Feel free to contact the HFTP Research Institute with any questions you have pertaining to the 2010 HFTP Compensation and Benefits Survey Report or to request a specialized report.
Survey Report
One thing is certain, those respondents who receive PTO days versus traditional vacation/sick days receive far less paid leave.
Paid LeaveClubs vs. Hotels
Clubs Hotels
PTO Days 9.1 13.4
Vacation Days 15.2 15.1
Sick Days 6.8 6.1
Even though hotel controllers tend to have a longer work week, they indicated that they spend less than 40 hours per week in the office and have a more flexible work schedule than their club counterparts.
Average Hours Worked at Home, Office and TravelingClub vs. Hotel Controllers
Clubs Hotels
Home 3.0 12.9
Office 40.7 33.0
Travel 1.1 3.9
Other 0.5 1.8
The Bottomline �1
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Survey Report
