"We have engaged in an extensive review and asked a lot of hard questions of ourselves and critical stakeholders in the last few months," CVB Chairman Dennis Lehman said. "We heard -- loud and clear -- that the role and responsibility of the CVB is a vital one for the community. We also heard -- just as loudly and clearly -- that greater accountability needs to be instilled in the CVB. We've taken those views to heart and acknowledge that we as a Board and an organization need to make some changes. We've done that, and we will continue to do that as we perform the CVB's important function in adding to the region's economic growth."

The actions followed the completion of a four-month independent review by the Columbus-based law firm of Schottenstein, Zox & Dunn and the accounting firm of Grant Thornton, under the auspices of a special Board committee chaired by Cuyahoga Community College President Dr. Jerry Sue Thornton. This review examined the travel and expense reimbursements, as well as direct vendor payments, for all Bureau employees during 2002 and through May 31, 2003, in light of Board policies and procedures in existence at that time. The review also analyzed expense reports for two key executives for 2000 and 2001. The firms also made a series of recommendations on improvements that could be made to CVB policies and procedures. Those recommendations form the foundation for decisions made by the CVB Executive Committee and reported to the full Board.

The CVB adopted a wide range of internal operating policies and procedures to help ensure that Board members and employees operate within clearly understood guidelines that balance the realities of the competitive, private business marketplace in which it operates and the public nature of the bed tax funding source that constitutes 83% of the CVB's revenues. Special Committee Chair Dr. Jerry Sue Thornton explained, "The independent review we commissioned found that most of the CVB policies and procedures relative to expenses and reimbursements were quite appropriate; however, they had not been followed consistently or, in some cases, at all. We have reaffirmed those policies, strengthened others by adding greater specificity and established consequences for failure to comply with those policies. All members of the Board and CVB staff will be expected to follow these policies, and we will review compliance with those rules."

The CVB adopted the following policy and procedural changes: 

• Create a formal Code of Ethics and Conduct for Board members and staff 
• Create a formal Conflict of Interest policy 
• Establish maximum expense and reimbursement levels without Board approval 
• Require more detailed itemization of allowable and non-allowable expenses 
• Ensure stricter adherence to allowable limits for expenses and reimbursements with sanctions for failures to comply, up to and including dismissal 
• Determine spending limits for sports and event tickets, with stricter guidelines on clients and customers to be entertained 
• Allocate travel and entertainment expenses to specific programs to enable better cost/benefit analyses 
• Strengthen the Office of the Controller and establish a formal reporting line for the CVB Controller to the Board Executive and Finance Committees
• Create a Compensation Committee of the Board with responsibility for establishing appropriate compensation and benefits for key executives, evaluating annual performance, recommending pay raises and any bonuses for executives and setting compensation policies for all employees 
• Adopt a "whistleblower" procedure to permit confidential access to the CVB Board by employees to express concerns about Bureau operations 
• Better define the role of the Finance Committee to include the awarding of grants and sponsorships in excess of limits set by the Board. At the same time, create a "President's Discretionary Fund" for similar expenditures below that limit, with aggregate spending practices to be reviewed by the Finance Committee

Key aspects of the reforms being considered:

• Reduce the size of the Board (currently up to 75 members, with 64 members at the present time) to better reflect the interests of critical stakeholders, including increased governmental representation and regional participation
• Change the nominating process for Board members and establish term limits

The CVB also discussed its general direction for aggressive efforts throughout the remainder of 2003 and into 2004 to give added emphasis to attracting meetings and conventions that can make use of existing facilities (hotels, conference centers and the current Convention Center) and expand regional marketing efforts that bring overnight visitors to local attractions, hotels and restaurants. "Over the past couple of years, the CVB has helped fill existing gaps in funding that historically had been provided by local corporations for special events that are important to the life of our community. However, doing so has meant that we've had to pull back from other activities that are the traditional role of the CVB. We need to have a better dialogue about how the community can fund these important events and still perform the marketing responsibilities that the Bureau is best positioned to accomplish," Lehman said.

"Today's actions are not the last ones the Board will take as we work to rebuild the community's confidence in our performance," Lehman concluded. "Many dedicated employees and committed stakeholders have built an impressive track record of success in the face of a three-year economic downturn that has especially affected our region. We have so many assets and attributes that offer wonderful opportunities for visitors, whether they are attending a meeting or convention or looking for a family vacation. Continuing to work to attract them to our region is the CVB's mission, and we look forward to working in cooperation with other community leaders to fulfill that responsibility."