download this handbook as a pdf - imperial college union
TRANSCRIPT
Event Budgeting2013/14 Edition
imperialcollegeunion.org
Event BudgetingPage 2imperialcollegeunion.org/training
Contents
Contents 2
Introduction 3
Setting up your Event Budget 4
Expenditure 5
Income 7
Breakeven Analysis and submitting your budget
8
Appendix One – Help and Assistance
10
© 2013 Imperial College UnionVersion 1.3 - 12 August 2013
This manual will:
Explain how to use the event budgeting functions in eActivities
Assist volunteers to understand and record fixed and variable expenditure, as well as fixedand variable income
1
2Support volunteers to plan budgets to ensure events donot run at a loss3
imperialcollegeunion.org/training/training-feedback
Tell us what you think of this training publication
Event BudgetingPage 3
imperialcollegeunion.org/training
Introduction
The purpose of an event budget is to provide guidance for the structure and planning of an event, with particular emphasis on the financial viability of events. Event budgets are useful as an accurate (as possible) guide to the outcome of your event, whether it will make a profit, loss or break even. Event budgets are typically used for activities outside of the regularly occurring activities of your Club, Society or Project.
It is important to do some research on your event in regards to its viability; do people want to attend? Is it something that has a history of being successful or something that has previously failed to preform to expectations?
As a general rule of thumb ideally events should make a profit or break even. Losses can be incurred with events and as a result it is important to be as realistic as possible in your planning. Don’t be over-enthusiastic with numbers attending your event as this can lead to problems. Always try to go with the lowest number of expected income and attendance for events and work from this point as a break even.
It is important to not make the mistake of associating event budgets with limited specific examples, event budgets are to be used for ALL events where expenditure over £20 is incurred. Every group can potentially run an event that will require an event budget to be submitted.
These events can vary vastly, ranging from bar nights and sporting competitions to the performance of a play. If you are planning an event over a number of consecutive nights is it important to budget for the event as a whole, not individual nights.
Often you will find that to run an event your Club, Society or Project may need to run into a short term negative financial position. Don’t be too concerned; this is a very regular occurrence, as often you will be required to make expenditure before recouping the costs through the event income. If you have budgeted sensibly you will be able to recoup the cost and run your event to break even or make a profit.
Kieron CreaghDeputy President (Finance & Services)E: [email protected]: 020 7594 8060, extension: 58062
Event BudgetingPage 4imperialcollegeunion.org/training
Introduction cont...
If your group has sufficient funds, it is acceptable to run an event at a loss in some circumstances. However, it is important to be aware of the impact this may have on your groups’s financial position and members. You must not use Club, Society or Project funds to run events at the detriment of the group’s ability to carry out its core activities. If you intend to run an event at a loss, you must provide an explanation (in the notes section of the event budget form). You should also be prepared to be questioned about it by those authorising the budget.
It is important to submit a budget in sufficient time before preparing for an event to allow for modifications to the budget and discussion between those organising the event and those who authorise the budget. You cannot carry out any serious planning (in terms of actual expenditure or contractual commitments) without having the event budget fully approved.
When planning events with external venues, they will typically require an event contract. This must be signed by the Deputy President (Finance & Services). You cannot sign contracts yourself.
If your event is not going to plan, don’t panic! The Union is here to help you. If you are concerned about your event and have made commitments in regards to it please contact the Deputy President (Finance & Services) as soon as possible.
Need help?
Having read this training manual, if you have finance related questions or need any help, support or advice relating to your Club, Society or Projects finances, your first port of call should be your Management Group Chair or Treasurer. A contact list is provided in Appendix One – Help and Assistance. If they are unable to assist you, please contact the Deputy President (Finance & Services).
Event BudgetingPage 5
imperialcollegeunion.org/training
Setting up your event budget
When you are logged in to eActivities navigate to Finance, then Budgets and then Event Budgets. The screen will default to the New Submission page, as shown below.
Fill in the Name of the event, the venue, the date and expected number of attendees. If the event will be taking place over multiple days then put in the first day. Base the number of attendees on the lowest possible number that may attend. If the event is taking place on multiple days, for example a number of performances of a show, put in the total number of attendees over multiple nights. Below this information is where you can enter details of the income and expenditure for the event and view a summary of the overall profit or loss the event will make.
1 Go to eActivites > Login > Finance > Budgets > Event Budgets > New Submission2 Fill in Event Name, Venue, Event Date and expected number of Attendees (go with the lowest possible number)3 Then, enter income and expenditure details to view a summary of your budget, including any profit or loss
Event BudgetingPage 6imperialcollegeunion.org/training
Expenditure
Fixed Expenditure
Fixed Expenditure is that which you have to spend, regardless of how many people come to the event. For items such as programmes, you still need to order these before you know the numbers who will be attending, so it is still considered as fixed expenditure. Examples of fixed expenditure include venue hire, lighting, sound, ticket booklets, DJ and other entertainments, decorations, publicity materials, stewards, costumes, set/staging, make-up, programmes etc.
Select the Event Expenditure tab, then Fixed Expenditure. For each item of expenditure, complete the description, the account code, the unit price, the number of units you are expecting to purchase and the appropriate VAT code. The VAT and Net amounts are automatically calculated.
1 Go to eActivites > Login > Finance > Budgets > Event Budgets > Event Expenditure > Fixed Expenditure2 Fill in the description, account code, unit price, number of units and VAT code for each line of expenditure
Event BudgetingPage 7
imperialcollegeunion.org/training
Variable Expenditure
This is expenditure that depends on the number of attendees and is for items which you can order once you know how many tickets you have sold. Examples of variable expenditure include food, drinks, entry fees, accommodation etc.
Select the Event Expenditure tab, then Variable Expenditure. For each item of expenditure, complete the description, the account code, the unit price, the number of units you are expecting to purchase and the appropriate VAT code. The total amounts are calculated by using the number of expected attendees which you have previously entered. The VAT and Net amounts are automatically calculated.
1 Go to eActivites > Login > Finance > Budgets > Event Budgets > Event Expenditure > Variable Expenditure2 Fill in the description, account code, unit price, number of units and VAT code for each line of expenditure
Expenditure cont...
Event BudgetingPage 8imperialcollegeunion.org/training
Income
Fixed Income
This is income that you will definitely get as long as the event goes ahead, such as sponsorship, donations and contributions from your Self Generated Income (SGI). You are allowed to use funds in your SGI to contribute to an event’s costs. Select the Event Income tab, then Fixed Income and complete this in the same manner as for Fixed Expenditure.
Variable Income
This is income that varies with attendance such as ticket sales. Other variable income could include number of programmes sold, shirts, drinks etc. Select the Event Income tab, then Variable Income and complete this in the same manner as for Variable Expenditure.
Event BudgetingPage 9
imperialcollegeunion.org/training
Breakeven analysis and submitting your budget
By navigating to the Final Overview tab you can view a summary of all the income and expenditure for your event and the breakeven analysis. The Profit/Loss section shows the expected profit or loss your event will make depending on the number of attendees. If the number is in RED then it means the event will make a loss if you only get those number of ticket sales (indicated on the left hand side).
1 Go to eActivites > Login > Finance > Budgets > Event Budgets > Final Overview2 Review budget, particularly your Breakeven Number - it shows the number of ticket sales you need so that your budget balances
Event BudgetingPage 10imperialcollegeunion.org/training
Your Breakeven Number is the one you are concerned with. This shows the number of ticket sales needed so that your expenditures and incomes balance. Any more sales than this will mean a profit for your Club, Society or Project. This is the first number where the Profit/Loss column gives a positive number, in the example below 120 attendees. Important: if your event makes a loss and your Club, Society or Project goes into debt, your group will have to pay it back and will be prevented from doing some activities until steps are made to pay back the debt - so do not make a loss with your event!
Once you have finished adding items to the event budget you will be able to vary the attendance numbers and see how this affects your profit or loss by changing the number in the attendees box. When you are happy with the numbers you have entered in the event budget press the Commit button. The budget will then be reviewed by the necessary student officers and you will receive an email when it is fully approved.
Breakeven analysis and submitting your budget cont...
Appendix One - Help and AssistanceContacts
Kieron CreaghDeputy President (Finance & Services)[email protected] 7594 8060, extension 58062
Kieron is the Sabbatical responsible for finances. He is also responsible for approving all expenditure over £1000.
Yas EdwardsDeputy President (Clubs & Societies)[email protected] 7594 1763, extension 41763
Yas is the lead Sabbatical for non-financial matters for Clubs, Societies & Projects.
Ally CottSystems [email protected] 7594 6412, extension 46412
Ally is responsible for eActivities, speak to him if you discover an error with the system, he cannot help with financial content queries.
Malcolm [email protected] of Finance020 7594 8069, extension 48069
Malcolm is the lead finance staff member. He can help with complicated finance queries.
Event BudgetingPage 11
imperialcollegeunion.org/training
Appendix One - Help and Assistance cont...
Management Group Contacts
These are all volunteer positions carried out by students.
Group Chair TreasurerACC Chew Liew
[email protected] [email protected]
A&E Alexander [email protected]
Thomas [email protected]
CAG Samuel [email protected]
Saber [email protected]
CGCU Lejon [email protected]
Yuchen [email protected]
GSU Andreas [email protected]
Gheorghe-Teodor [email protected]
ICSMSU Steve [email protected]
John [email protected]
Media Maclej [email protected]
James [email protected]
OSC Charmain Li [email protected]
Yuri Ichinose [email protected]
RAG Callum [email protected]
Benjamin [email protected]
RCC Thomas [email protected]
Richard [email protected]
RCSU Plabon [email protected]
Victoria [email protected]
RSMU Emily [email protected]
Owain [email protected]
SCC Jia [email protected]
John [email protected]
Silwood Isabel [email protected]
Helen [email protected]
Imperial College UnionBeit QuadranglePrince Consort RoadLondon SW7 2BBRegistered Charity No: 1151241
Tel: 020 7594 8060Fax: 020 7594 8065Email: [email protected]: @icunion
imperialcollegeunion.org