Profitability is enhanced by wise fiscal management and judicious controls. Horizon practices a hands on policy in conjunction with the ownership approval process to insure maximum return on investment. Through a process of physical inspections of each property, an annual capital budget is allocated depending on need and potential return. Ownership approves the detail of each specific project to include scope, cost and financial benefit. The funds are expended and projects completed based on timelines that allow further evaluations to insure responsiveness to the needs of the property and return on investments. Labor is the largest variable cost in a hotel operation. Horizon controls labor costs through proper staffing, scheduling procedures, variance monitoring and daily feedback from operations. Competitive wage surveys and analysis are performed on a semi-annual basis. Our risk management program is referred to an international agency with hotel expertise. A full insurance program includes: Identification and Evaluation of Exposures and Risk Management Identification of Insurance/Risk Financing Worker's Compensation Experience Modification Monitoring and Claims Review Procurement of Insurance Company Quotes for Property, General Liability, Crime, Accounts Receivable Liability, Advertising Liability, Worker's Compensation, Medical Disability and Catastrophic Umbrella Policies. We monitor each program to insure compliance to agreements and updated presentations of new features. In extraordinary events Horizon, through an extensive network of industry contacts, assists in the procurement of experts in the areas of property evaluation, refinancing of operating properties and financing of new development to include new construction loans, debt and equity financing. Accounting Success can be substantially enhanced by a property's adherence to carefully planned budgets and effective expense control procedures. Horizon uses an accounting system based on the "Uniform System of Accounts" as published periodically by the American Hotel & Motel Association. Systematized accounting assures procedures and timely reports. Annual budgets and forecasts for all properties are prepared and forwarded to the central offices of Horizon for approval prior to each new fiscal year. Thereafter, the actual results are monitored closely in comparison to the budgets. Monthly statements are reviewed and periodic internal audit and control verifications are completed by the corporate accounting staff. Significant variances are investigated for explanation and results reported to appropriate parties. Streamlined reporting methods keep owners and Horizon current on a property's financial progress. Horizon has a central accounting office, which may prove beneficial for a property's cost effectiveness and controls. All properties transmit daily statistics via computer to the corporate office. The key statistics, revenue, occupancy, average rate, bank and credit card deposits, and payroll costs for each department are summarized and distributed to all involved corporate personnel. The accounting department includes an experienced internal auditor who performs detailed field audits of each property and provides management with a written report of findings and recommendations. Project Management / Purchasing Effective purchasing is a foundation for acceptable profit performance. Through our corporate agreement with national vendors, we continue to pursue cost efficiencies. Horizon has significant purchasing power necessary to obtain operating supplies and capital items at volume discounts. Savings are carried to ownership without fee for service. Quality assurance is monitored to guarantee value and customer satisfaction. Corporate staff retains contact with purveyor and user to insure rapid response to the needs of our properties. Renovations and redesigns to include special property needs such as elevator upgrade, kitchen installation or luxury suite refurbishing are managed through our special projects department. Whether the purchase or project is big or small, each receives our personalized attention to the final detail.