PCI, PII & 2015 Accounting

1. PCI, PII & 2015 Accounting

2. 2015 Accounting Changes • New P&L Format/Wording Changes • Service Charge change • New Accounts/Departments • Q&A

3. P&L Updates Revenue • Rooms • Food and Beverage • Other Operated Departments • Miscellaneous Income • Total Operating Revenue Departmental Expenses • Rooms •Food and Beverage • Other Operated Departments • Total Departmental Expenses Total Departmental Income

4. P&L Updates Undistributed Operating Expenses • Administrative and General • Information and Telecommunications Systems • Sales and Marketing • Property Operations and Maintenance • Utilities • Total Undistributed Expenses Gross Operating Profit Management Fees Income Before Non-Operating Income and Expenses

5. P&L Updates Non Operating Income & Expenses • Income •Rent • Property and Other Taxes • Insurance • Other • Total Non Operating Income and Expenses EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization

6. Service Charges • Definition A service charge is a mandatory amount billed to the customer’s account for which the customer has no discretion as to payment, the amount of the charge, or it’s distribution to employees • Treatment Service charges must be treated as revenue and any corresponding payment of service charge to employees is treated as a wage expense.

7. New Accounts Rooms Dept: • Complimentary F&B • Complimentary Goods. Sales Dept • Revenue Management Expense New Dept: Information and Telecommunication Systems

8. Information & Telecommunication Dept Expenses Labor Costs and Related Expenses Salaries, Wages, Contracted Labor and Bonuses Sub-Total: Salaries and Wages Service Charge Distribution Contracted, Leased or Outsourced Labor Bonuses and Incentives Total Salaries, Wages, Service Charges, Contracted Labor and Bonuses Payroll Taxes Supplemental Pay Employee Benefits Total Payroll Related Expenses Cost of Services Cost of Cell Phones Cost of Internet Services Cost of Local Calls Cost of Long Distance Calls Other Cost of Services Total Cost of Services

9. Information Systems Other Property Operations and Maintenance Rooms Sales and Marketing Telecommunications Total System Expenses Information & Telecommunication Dept System Expenses Administrative and General Centralized Information System Energy Management Food and Beverage Golf Hardware Health Club/Spa Human Resources Information Security

10. Other Equipment System Storage and Optimization Training Travel - Meals and Entertainment Travel - Other Uniform Costs Uniform Laundry Total Other Expenses Total Expenses Information & Telecommunication Dept Other Expenses Cluster Services Contract Services Corporate Office Reimbursables Dues and Subscriptions Entertainment - In House Equipment Rental Operating Supplies

11. PCI & PII Updates • Your Protection & Audit Changes • 2015 Hotel Training Program • Protecting Your Hotel & Your Guests • Q&A

12. Your Protection • Utilizing Centrada Solutions to secure your network to prevent intrusions • PCI scans from our current Merchant Service Provider to constantly test your network • Cyber Insurance Policies • Staying Up to Date on New Information via Publications/Conferences

13. Audit Changes • Ensuring PCI scans are done and passed every 90 days and maintaining documentation of the passed scan • Testing random EC and Dept Head PC’s to ensure there are no remote log in software applications loaded • Verifying NO cell phones are on employees who handle credit cards for guests

14. 2015 Updates Mandatory Company wide training program • Anyone who handles credit cards or accepts credit card payments • Will be tapered to various duties; i.e. servers/front desk agents, sales staff, AR staff • Roll Out 3/31/15

15. PII Personally Identifiable Information • Do you have valet? How/Where is the guests vehicle information stored? What happens when the guest leaves how is it destroyed? • How/Where is your employee data stored? Under lock and key? What do you do with the files once you terminate someone? • What do you store for your frequent stay program? How is it accessible?

16. PII Personally Identifiable Information • Did you know your signature is considered PII • PII includes biometric identifiers aka repeatable action of the individual; i.e. DNA, fingerprints, even your signature • Includes lists for a conference, employee name, position, company which can be linked to an individual • Portion of PCI Compliance

17. PCI Compliance • Most of the recent breaches involved companies who were technically PCI compliant (by checklist standards) • Biggest threat is your staff and how they handle data (password usage, mobile device usage at work) • As of 12/31/14 Version 2.0 was no longer valid, Version 3.0 is now in effect • Focus is on education and awareness, password strength, network vulnerability