H Group Holding, Inc. and Subsidiaries - Page 48

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               As early as March 1975, HIC distributed a controller’s                  
          checklist for reports.  In 1981, HIC copyrighted a manual                    
          entitled “Accounting and Internal Control Systems and                        
          Procedures”.  This manual was written at the request of the area             
          and hotel accounting staff and was provided to hotel controllers             
          who also assisted in its review.  The manual provided                        
          standardized reporting and accounting controls, facilitating a               
          uniform budget process and the ability to move accounting                    
          personnel between hotels.  It was also used to train the                     
          accountants in Mexico.  Effective March 1, 1983, HIC promulgated             
          materials describing specialized policies and procedures for the             
          areas of law and insurance, administrative/general, and finance/             
          accounting.  Some of the topics included:  Technical assistance              
          agreements, management agreement obligations, area vice president            
          hotel visits, annual business plan, reports schedules, and inter-            
          hotel financial transactions.                                                
               HIC vice presidents would occasionally visit the hotels,                
          generally accompanied by the area vice presidents, to make                   
          inspections and recommendations.  Periodically, the Hyatt                    
          International group would hold meetings of general managers.  At             
          these meetings, general managers met with HIC and senior                     
          executives of management subsidiaries to review the growth and               
          development of the Hyatt International group.  The general                   
          managers also exchanged ideas and information on what made their             

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Last modified: May 25, 2011