1. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 1 7200. Financial Reporting Guide, 7221 Annual Operating Budgets A. The Purpose of the Annual Operating Budgets We use operating budgets to plan the financial performance of the business units managed by the Company. Annual Operating Budgets provide a forecast for investors and a benchmark for the Hotel’s operators. B. Responsibilities for Budgets The general manager is responsible for preparing and presenting for approval an Annual Operating Budget. MMI’s regional manager approves or disapproves the proposed Annual Operating Budget. When approved, the accountant is responsible for entering the month-by-month, line-by-line amounts from the budget PDF file into the corresponding accounts of the Hotel’s accounting software. Continue ►

2. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 2 7200. Financial Reporting Guide, 7221 Annual Operating Budgets C. Budget Format and Instructions Use MMI’s Budget Model (BudModel®) software for preparing the Hotel’s annual budget. Instructions for BudModel are contained within the program. Retrieve the latest BudModel version from MMI Team Site.MMI Team Site D. Budget Revisions Revisions to an approved Annual Operating Budget require the approval MMI’s regional manager. Continue ►

3. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 3 7200. Financial Reporting Guide, 7221 Annual Operating Budgets E. Ownership and Confidentiality of Budgets All budgets are confidential Company property. Budgets and the information that they contain is confidential and may not be distributed to anyone outside of the Company without the approval of the president, Marin Management. F. Distribution of Budgets Only MMI operational team members may distribute budgets. Hotel general managers on other Hotel team members may not. MMI distributes electronic PDF budget files to the Hotel owner(s), the MMI area/regional manager or group vice president, the Hotel accountant and MMI’s headquarter offices. End

4. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 4 7200. Financial Reporting Guide, 7221 Annual Operating Budgets