Audit measures pandemic's impact on CVB operations

Former maintenance worker Larry Neal on Tuesday, October 1, 2019, leads the first public tour of Missouri State Penitentiary since it was closed the day after the May 22, 2019, tornado, which damaged several buildings.
Former maintenance worker Larry Neal on Tuesday, October 1, 2019, leads the first public tour of Missouri State Penitentiary since it was closed the day after the May 22, 2019, tornado, which damaged several buildings.

The Jefferson City Convention and Visitors Bureau (CVB) saw a small increase in revenue during 2020, but still ran a deficit in its general fund.

Lindsay Graves, with Graves & Associates, presented the 2020 audit report at Monday's meeting, and said the organization's general revenue was up about 10 percent from 2019. In 2020, the organization's revenue was $1.06 million compared to 2019, when it was $968,000.

However, the organization still ran a general fund deficit for the year. She said lodging tax revenue took the largest hit in 2020. It was down by about 30 percent from 2019, or roughly $174,000.

"Of course, we know travel was restricted (due to the pandemic) and those sorts of things during 2020," she said.

But revenue from Missouri State Penitentiary tours and promotional items was a bright spot in the year, she said. Revenue was up by more than $100,000 in 2020 even with tours put on hold in April. About 71 percent of CVB's revenue comes from MSP tours and promotional items, Graves said.

CVB also received $223,360 in CARES Act funding in 2020.

The organization's overall expenses were up by about 17 percent in 2020, Graves said, from $965,000 to $1.1 million.

The bulk of that increase was in marketing expenses, about $139,000, but increases were also seen in salaries, administrative costs, contracted services and capital outlay.

CVB ended 2020 with an $85,385 deficit in its general fund. In 2019, it ended the year with an $11,510 deficit.

Graves said the organization is in a good financial place with about $1.2 million in reserves available to offset deficits. Generally, she recommends organizations have about four to six months worth of expenses in reserves; CVB has around 16 months worth, she said.

So far in 2021, prison tour ticket sales are exceeding the projected budget by more than $39,000, according to financial reports.

The lodging tax is slightly behind anticipated budget, by about $12,400, without considering May sales, said Carol Burkhead, of Burkhead & Associates. So far, May lodging tax sales are around $6,000 over budget.