CTO Puts Funds in Centralized Account

The Caribbean Tourism Organization has consolidated the funds of all 22 of its chapters in the U.S. in a single, centralized account but has no plans to eliminate the chapters, according to a statement released by the group’s New York headquarters.

The statement was made in response to questions from chapter members about the future of the CTO’s chapter system in general and specifically about consolidating the chapters’ financial operations.

The consolidation of chapter funds as part of the CTO’s new accounting procedures has drawn the ire of several chapter members.

Fernando Abreu, the CTO’s U.S. deputy director of marketing, said the new procedures were “part of our overall mandate to reorganize and streamline operations. Chapters will have access to financial reports, and CTO is establishing an account in a national bank where chapter funds would be deposited.”

He said that all chapters were notified in writing of the new accounting procedure in November, and the process was explained at the chapter retreat early last month. Chapters were asked to transfer their funds to the new, centralized bank account by Dec. 31, 2008.

“CTO’s board of directors has absolute discretion to determine how the total assets of each of the chapters are to be utilized,” Mr. Abreu said. He added that failure to comply with the new accounting system “may result in legal action, including criminal prosecution.”

Financial reports for each chapter will be available monthly, Abreu said, adding that “CTO has the accounting staff to handle the 22 chapters appropriately.”

Mr. Abreu said that the more centralized accounting system and new educational and organizational enhancements were also evidence of “CTO’s desire to serve agents in markets where a CTO chapter may not exist and eventually see new chapters formed.”