HomeMy WebLinkAbout6.2a1 Historical Visitors Bureau P&L Review Memo
TO: Board of Directors, Cottage Grove Convention and Visitors Bureau
FROM: Brenda Malinowski, Finance Director
DATE: June 23, 2023
RE: Cottage Grove Convention and Visitors Bureau (CGCVB) accounting history and
establishment of a separate CGCVB Fund
Background/Discussion
During the last meeting a request was made for the CGCVB accounting history. This is provided
in the packet.
While reviewing the CGCVB accounting history, it was determined by Finance and Administration
that a separate fund is necessary to provide more transparency and ease of accountability. In
addition, Resolution 2020-094 Establishing the City of Cottage Grove Convention and Visitors
Bureau, identifies that Ninety-five percent (95%) of the local lodging tax received by the City shall
be designated as the funding of the Cottage Grove Convention and Visitors Bureau’s activities.
Such monies shall be kept in a separate designated fund identified as the Bureau Fund.
Fund accounting for governments was developed to show accountability and compliance in the
collection and use of public resources. A fund has a self-balancing set of accounting recording
assets, liabilities, and fund balance (equity), and the operating activities of the fund.
When the CGCVB was established in 2019, lodging tax and CGCVB activities were recorded in
the EDA Fund. Starting in 2023, the lodging tax and CGCVB activities will be recorded in a new
special revenue fund. The CGCVB fund balance at the end of 12/31/2022 will be transferred to
the new CGCVB Fund.
Attachments:
Historical Visitors Bureau P&L Review