Cuyahoga County Convention Facilities Development Corporation

“The organization has engaged smg for daily management of the convention center. Smg is a worldwide venue management company that is unrelated to the organization or any current or former director, officer or employee. Smg receives a management fee for their services.”

“The majority of the board of directors must be comprised of individuals who are appointed or selected by the Cuyahoga County Executive and the President of the Cuyahoga County Council.”

“The Executive Director along with the Board of Directors are each supplied with a copy of Form 990. The Executive Director and the Board of Directors review Form 990. After all questions about the return are answered and any applicable changes are made Form 990 is filed.”

“The Board of Directors reviewed salary and compensation levels within organizations of similar size and comparable structure. The Board of Directors then votes to approve the salary. The current executive director was hired in August 2015.”

“Copies of the organization's federal form 990 and governing documents shall be made available upon request, in a timely manner and subject to the charges permitted by law to any individual who request them.”

“THE ORGANIZATION IS IN THE PROCESS OF formulating these policies.”

“The prior year (2015) compensation reflects only four and a half months of the Executive Director's salary because he was hired in August 2015.”

“THE TAXPAYER IS NOT RELATED TO ANY OTHER ORGANIZATION. FOR PURPOSES OF DETERMINING RELATED ORGANIZATIONS: CONTROL OF A NONPROFIT ORGANIZATION EXISTS IF ONE ORGANIZATION HAS THE POWER TO REMOVE AND REPLACE A MAJORITY OF THE NONPROFIT ORGANIZATION'S DIRECTORS OR TRUSTEES. IN ACCORDANCE WITH ARTICLE II OF THE TAXPAYER'S CODE OF REGULATIONS, REPRESENTATIVEs OF CUYAHOGA COUNTY APPOINT A MAJORITY OF ALL DIRECTORS BUT THEY DO NOT HAVE THE POWER TO REMOVE AND REPLACE THE DIRECTORS. THEREFORE, THE RELATIONSHIP BETWEEN THE ORGANIZATION AND CUYAHOGA COUNTY DID NOT INCLUDE CONTROL AS DEFINED IN IRS INSTRUCTIONS TO FORM 990.”

“CONSULTING: Program service expenses 0. Management and general expenses 155,193. Fundraising expenses 0. Total expenses 155,193. FOOD AND BEVERAGE FEE: Program service expenses 3,069,012. Management and general expenses 0. Fundraising expenses 0. Total expenses 3,069,012. CONTRACTED SERVICES: Program service expenses 116,656. Management and general expenses 0. Fundraising expenses 0. Total expenses 116,656. Third Party MANAGEMENT COMPANY PAID SALARIES, BENEFITS AND PAYROLL TAXES: Program service expenses 4,464,638. Management and general expenses 0. Fundraising expenses 0. Total expenses 4,464,638. PAYROLL PROCESSING FEES: Program service expenses 0. Management and general expenses 13,313. Fundraising expenses 0. Total expenses 13,313. PROFESSIONAL FEES - OTHER: Program service expenses 0. Management and general expenses 6,130. Fundraising expenses 0. Total expenses 6,130.”

“The organization entered into a project funding agreement with cuyahoga county. Pursuant to the agreement and in consideration of the county making funds available for the convention center construction and conditioned upon the county making certain rent payments the organization agreed to make monthly payments of $3,000,000 to cuyahoga county.”

“Due to its size, the Board of Directors assumes the responsibilities of an audit committee.”