2014 Financials / Finances

[Kathy Guidi]

Okay gang, Karl/I have been quite busy chasing up and paying expenses.....  and it will take another week before I can give a good indication of where we're at with expenses & profit.

Regarding TICKET SALES NUMBERS and REVENUE, happy to report the following:

TICKET SALES:

Ticket numbers:    783 sold tickets + 20 children = 803;  breakdown below and interesting to compare to last year's numbers:

 

Tickets Sold	2014	2013
Cosmic e tickets	493	391
Cosmic physical tickets	250	278
Cash sales ($90/200)*	40	62
Paying participants	783	731
Children	20	22
Total participants	803	753

 

*2014 Cash sales = 13 gate @ $200;  10 locals @ $90;  17 crew at $90

 

Per our agreement with Rathmoy for land use, we are to pay them $10/per ticket sold over 500 tickets.   So that is 283 tickets or $2830 due to Rathmoy which I will handle.

I think bumping up our gate sales to $200 was beneficial in reducing the number of 'cash' coming in.   22 less 'cash sales' than last year = GOOD!

 

REVENUE: 

We are getting big!   Revenue came in at $99,057.50,  $20,000 more than last year despite not getting the $5000 grant from TDC! 

 

Revenue Source:	2014	2013
Cosmic	$93,450.00	$61,290
Cash:  Tickets	$ 5,510.00	$9328
TDC Grant		$5750
Cash:  Ice Sales	$      97.50
Fundraising		$2530
Total Revenue:	$99,057.50	$78,898

For the first time, we tracked ice sales.   I have done a recon with Ash -- we did over 400 bags of ice and spent over $1500 in Hunterville for it!   Profit was $.50/bag.

And that's it for now.

-Kathy

PS:  Ignore this table below .... I can't seem to delete it 

[Karl Matthews]

Can I get a BAAAAAMMM!?

--
You received this message because you are subscribed to the Google Groups "kiwiburnExComLIVE" group.
To unsubscribe from this group and stop receiving emails from it, send an email to kiwiburnexcoml...@googlegroups.com.
For more options, visit https://groups.google.com/groups/opt_out.

[Bruce Scanlon]

BAAAAAMMM!

[Poppy Norman]

You guys are champs!

[Pete Wyatt]

excellent work, it's good that the financials also have a successful vibe to match the event vibe

[Ashleigh Easton]

looks like we'll be able to afford ice-cream ponies soon!

[Wendy]

Respect to the counters of the beans. And to KB in general for being the sort of thing people want to follow round the countryside.

[bex Wil]

WOW! That's frickin awesome x Nice one

[Kathy Guidi]

The financials are about 95% complete... chasing up a few more invoices to be paid and a few more reconciliations to do in Xero, but for the most part, I finally have a grip on our monetary situation.

Short of it:

We done good!  If my calculations are correct and we spend what we are planning to spend on the Summits and on Carbon Offsets (which have yet to be paid), we should end up at the end of March with a pre-tax cash profit of approx $4000.  After tax, we should have around $3000.   And this, added to our beginning of year cash balance of $26,000 means we will have approx $29,000 in da' bank!  Woot!

As I said, we have yet to spend money on the Carbon Offsets ($2036) and Summit 2 (est $5350) [Note Summit 1, est $2500 will be fully spent prior to end of March], If we do not do so by March 31st, then our pre-tax cash profit will be more like $11,000 which means our tax obligation will increase (est additional $2000).   I'd rather see that money used by Kiwiburn.....   it would be great if we can decide on the charity to give our carbon offset money to prior to March 31st and it would be good to pay Rathmoy for the lodge costs for the May Summit and have folks who are flying in to book their airfare by March 31st also.   Because Summit2 is in May, it will be inevitable that some of the costs (petrol, food, misc) will be incurred post-FYE, but that's okay as long as the bulk of the expense is paid prior to FYE.    Wendy is already working with Andrea on lodge costs.

Other:

I will send out a breakdown of the expenses in a few days time once we wrap up a few more things, but I will say that everyone did really well with their budgets and receipts (we are missing a few but under $1000 in total which isn't bad considering our expenses totaled almost $95,000!)

Also, something worth pointing out... our cost to move site - $10,500  (transporting the 3 containers, renting of truck, petrol costs, digger work, resource consent, site search/visits, etc) + the purchase of the two containers from Lumos - $2,500'ish are one-off costs and will not be repeated (hopefully), so that means for 2015 we should have an additional $13,000 to play with in the budget AND we should not have to increase ticket sales for a long long time!   Of course, I know that everyone wants/needs bigger budgets, but at this level of revenue ($100k/800 people) we should be able to fund the festival from current revenue.  

Well done to EVERYONE over the last eight years in doing a great job managing Kiwiburn!!!!

-K

 

[Pete Wyatt]

well done all and well done to Kathy and Karl for counting all the beans for us 

--
You received this message because you are subscribed to the Google Groups "kiwiburnExComLIVE" group.
To unsubscribe from this group and stop receiving emails from it, send an email to kiwiburnexcoml...@googlegroups.com.

For more options, visit https://groups.google.com/d/optout.

[Pete Wyatt]

so..... do we look at spending some of that $4000 on 2015 stuff so we make less profit and pay less tax this year ?????????

On Sun, Mar 9, 2014 at 10:05 AM, Kathy Guidi <kag...@gmail.com> wrote:

[Bruce Scanlon]

super well done everyone :-)

Yeah, seems like we could allocate all the moving expenses to increases in next year's budget, budget assuming zero growth, and be in a very safe place with more funds to play with.

RE Lumos's question-- certainly we should try to spend all of the money we are already planning on spending before fiscal year end, which is the end of this month.  kathy has already covered this.

As far as coming up with more expenses that we can move forward to this fiscal year...

There are a few factors to think about.

Since we seem to be in a financially healthy operating zone, we can expect to be making taxable income next year as well.  This is in contrast to when in previous years we had some years we hit it out of the ballpark and some years we drew on savings or just skimped by.  In this aforementioned situation it was more advantageous to move expenses to financially profitable years.  If now we are expecting to operate comfortably in the black and show taxable income each year then this is not as much a savings.

Though it is still sound fiscal practice, so good to do.

Keeping in mind that we would need to decide on these expenses and execute the transactions, which activity would be hitting us in the next couple of weeks when we seem to be somewhat strapped for energy.

So, do-ocracy?  If you line em up I'll call votes and then you can make the purchases...?  or anyone else that has the energy?

[Pete Wyatt]

$1000 paid to IRD is lost money, if all goes well and we get charity status that Emmz is planning to work on then we could become tax free next year. 

I can invoice you for pegasol $350 and some solar panels and lighting $1500 (exact details to be confirmed later in the year) if you later change your minds I can refund you any or all money required. 

[Poppy Norman]

Perhaps it would be a good idea to start a new thread Lumos?

[Bruce Scanlon]

yes, new thread proposing expenditures, well spotted :-)

[Bruce Scanlon]

though on this thread...

Kathy mentioned to me that these are preliminary numbers, and we certainly have depreciation expenses to add to these, as well as further corrections by Rachel that may reduce our taxable income further.

[Poppy Norman]

I have started a new thread.

[Ashleigh Easton]

Kathy, you're amazing! Thank you!!

[Kathy Guidi]

Okay gang,  this is hopefully one of my last important messages to disseminate prior to my stepping off the excom (deep exhale with a smile)....  I've just finished writing up the financials for the afterburn which is listed below and in the attached.  Rather long, but gives my analysis of our situation.    Rachel is finalizing the profit & loss  and year-end reports (and therefore the taxable income) but in the interest of time, I'm going with the estimates that we came up with thus far.   

The main thing to point out to everyone is our actual cash financial position.....  which I talk about in the 2nd or 3rd paragraph below.  We did finish the year with a little over $30,000 in the bank, but we have a few payables to incur yet related to this past fiscal year -- GST of approx $2200 and income tax guestimating $1400.    We also just determined that a $1000 payment to Lumos/PTS Logistics for partially moving the containers did not get paid and we are sorting that out now.   And lastly, we still have the expenses to incur for the Summit#2, which I have just estimated to be $3300 <-- that number needs to be looked at closely and ya'all need to determine what the remaining expenses will be.

That puts Kiwiburn at holding a cash balance of about $21,000 - $22,000 come July when all of the above has been sorted.   GREAT NEWS!!!! Especially since we invested almost $4000 of this year's profits into things we need for next year -- so excellent job!

So if you care about the details, read through and ask any questions.  I'm sorry I wasn't able to pump this out earlier but overall, this is about the time of year that the financial reports can get done (mid-April)........

-K

Afterburn Financial Report:

The move to the new site brought the expectation that we might see a decline in attendees and our budgetary projections were based on a very conservative and possible decline of participants to 600 people from 2013’s actual participant base of 754.     We were all greatly surprised and pleased to see we grew minimally this year with attendance reaching 803 (comprised of 783 paying participants and 20 children).

 

YEAR	ATTENDANCE	% growth
2007	145
2008	182	+ 25%
2009	250	+37%
2010	450	+80%
2011	530	+17%
2012	536	0%
2013	754	+41%
2014	783	+ 4%

 

Ticket prices were bumped up to $90/$120/$150 to cover anticipated costs and with the idea that we could hold those prices steady for the upcoming years.    We also trialed a ‘200 maximum first-tier’ ticketing strategy, again anticipating lower growth, and were wowed when those tickets sold out with in five days of going on sale.    We used Cosmic Corner for our ticketing and remain very happy with their service.

 

Looking at our finances from a cash perspective, we ended the March 31 fiscal year with $30,675 in the bank, up $7,400 from last year!   THAT IS EXCITING NEWS as we were anticipating that the cost to move sites and the possible lowered attendance were going to make us dip into our cash reserves.   Without getting too overjoyed, I must note that there are a few upcoming payables related to the March 2014 fiscal year as follows, which will reduce our cash balance to approximately $22,000:

 

March 31 Cash balance in Westpac:		$      30,675
Overlooked payment related to site move:		$      (1,093)
Estimated GST owed		$      (3,000)
Estimated income tax owed		$      (1,400)
Estimated expenses for Summit#2:		$      (3,300)
Expected cash balance by July 2014:		$      21,883

 

 

GST forms are filed in May and October.  Taxes are filed in July.  The Kiwiburn Summit, which in the past was for Ex Com members only but will be open to a larger audience this year,  is booked for end of May.        At the end of the day, we have done quite well and have a healthy bank balance to see us into the future!

 

Next we can look at our actual revenue/expenses relative to our budget.   The table that follows shows two budgets – the working budget (based on a 600 person attendance), and the ‘what if’ budget, asking “what if our budget was based on actual attendance – how good is our predictive model”?   The third column shows our actual expenses.  The last two columns show actual expenses less the working budget and then the actual costs as a percentage of income or expenses.

 

Notable items:

 

• Looking at the first budget column (Act Budget), you will see from the net cash movement that we were anticipating significantly dipping into our cash reserves.  We monitored all ticket sales very closely and when we knew we were ‘in the clear’ we authorised further expenditures which had been placed on hold.
• 
  
• Comparing the Est Budget with Actual Budget revenue streams, I feel comfortable that our predictive model for revenue works well.  If we had 100% predictive ability our model would have suggested a bit highter revenue than actually realized, but by a small margin.   Every year we review the distribution of ticket sales percentages, generage a new average from all previous years, and use it for the upcoming year’s revenue forecast.
• 
  
• Looking at the Actual Expenses ($92,089) compared to the Original Bdget expenses ($94,800), overall we did excellent with staying within budget.   As expected, some costs end up being more than estimated, some less,and most budgets are discussed by the Team Managers in the following sections.   Managing finances is a fluid process and we make decisions as data is known.  Earlier in March we determined that we had generated a much higher Net Cash Movement, thereby expecting to pay higher taxes.  The ExCom reviewed prior ‘wish lists’ and made the decision to spend an additional $3000 from this years’ profit towards items we need for next year.  We purchased a laptop for Depot, a Tablet for the Media Group, solar panels for Gate, and enrolled two key Depot/MPW staff in first aid courses.    These items are included below which is why some of the aforementioned teams show that their actual expenses are more than what was budgeted.
• 
  
• The last column, % of Income/Revenue, gives us an idea of how our money is being spent.   We incurred costs of approximately $10,000 to move site (about 9% of expenses) which we don’t anticipate incuring again and this money can be put towards other projects for next year.   Art grants approximate 7% of expenses and we anticipate we will finally be able to increase this amount in future years.   Toilet rentals continue to consume 9% to 10% of budget (about $8,000) and perhaps next year we will be able to move towards our goal of providing a compostable toilet system with lower costs.    The site rental costs of $10,000 or 12% of expenses is our largest cost item which we feel is money well spent to provide a safe and remote location for the event.   Also, we no longer are paying for fire fighting services and our security costs dropped by half from previous years.      Lastly,  I want to point out that our Travel Expenses are increasing and this year amounted to over $5600 or 6% of budget.   Travel Expenses incorporates costs to bring the ExCom and other key managers together for a weekend summit.    This is an invaluable opportunity for face-to-face time where a lot of information gets communicated and it forges relationships between team leads and helps create the cohesiveness that leads to putting on a good festival.  I expect this expense category to increase commensurate with the festival growth.

 

 

Kiwiburn Cash Summary Report

For period April 1, 2013 – March 31, 2014

GST Inclusive

 

 

INCOME:	2014 Act Budget (based on 600 person attendance)	2014 Est Budget (based on actual 783 persons)	2014 Actuals (based on 783 persons)	Actual - Original Budget	% of Income
Interest Earned (bank bal * 2%)	$466	$466	$437	($29)	0%
ticket sales: first tier	$18,367	$19,033	$18,180	($187)	18%
ticket sales: 2nd tier	$23,770	$25,377	$23,520	($250)	24%
ticket sales: 3rd tier:	$18,908	$39,945	$51,750	$32,842	52%
Gate sales:	$14,406	$18,798	$5,510	($8,896)	6%
Ice Sales Donations:			$98	$98	0%
total income:	$75,916	$103,619	$99,495	$23,578	100%
EXPENSES:					% of Expenses
Administrative:
Office Expense/Website hosting	$200	$200	$25	(175)	0%
Accounting: (Xero software)	$220	$220	$245	25	0%
Arts Related:
Art Grants disbursement	$7,000	$7,000	$6,196	(804)	7%
Community Art Project:	$0	$0	$0	0	0%
Innovation Grant: (used to buy 3 solar panels - centre camp, greeters, paddock lighting)	$600	$600	$622	22	1%
Man:	$4,500	$4,500	$3,538	(962)	4%
Temple:	$3,400	$3,400	$4,017	617	4%
Bank Charge	$23	$23	$23	0	0%
Carbon Offsets	$1,561	$2,036	$2,036	476	2%
Capital Items:
Buy 2 containers from Lumos:	$2,500	$2,500	$2,500	0	3%
Tools:			$805	805	1%
Site Search/Site Move/Site Maintenance:
Site Search/Visit:	$1,350	$1,350	$1,904	554	2%
Moving of containers & goods (incl rental ute, petrol, etc)*	$6,000	$6,000	$5,326	(674)	6%
Maintenance: Digger work for containers	$500	$500	$1,253	753	1%
Resource Consent			$400	400	0%
Operations:  Departments
Artery:	$500	$500	$0	(500)	0%
Centre Camp Infrastructure	$500	$500	$270	(230)	0%
Crew Appreciation	$750	$750	$747	(3)	1%
Depot:	$2,000	$2,000	$2,741	741	3%
Gate:	$900	$900	$1,455	555	2%
Greeters	$800	$800	$831	31	1%
Kitchen:	$5,000	$5,000	$3,605	(1,395)	4%
MPW:	$4,500	$4,500	$5,142	642	6%
Compost Toilets	$750	$750	$0	(750)	0%
Power (Gennie/Petrol rentals):	$1,500	$1,500	$1,508	8	2%
Power paid for community grid			$501	501	1%
Paddock Lighting:	$200	$200	$62	(138)	0%
Paddock Relief/Support Services:	$600	$600	$753	153	1%
Site Manager/Ops Managers:	$600	$600	$215	(385)	0%
Operations:  Misc
Fleet Maintenance:	$600	$600	$75	(525)	0%
Supplies:	$300	$300	$461	161	1%
Miscellaneous:	$1,500	$1,500	$602	(898)	1%
Insurance:	$2,892	$2,892	$2,893	1	3%
Rent:
Hunterville use of Land:	$9,002	$10,832	$10,830	1,828	12%
SLAM Pony Shed Rental:  1 year	$1,200	$1,200	$460	(740)	0%
Services:
Centre Camp Marquee Rental:	$988	$988	$988	0	1%
Event Medics:	$5,175	$5,175	$5,500	325	6%
Head of Security Management:	$500	$500	$500	0	1%
Fire Hireage:	$500	$500	$0	(500)	0%
Toilets:	$7,700	$7,700	$8,018	318	9%
Radio rental:	$1,815	$1,815	$1,725	(90)	2%
Traffic Management Plan/Signs	$600	$600	$458	(142)	0%
Security Guard Hiring	$5,250	$5,250	$5,250	0	6%
Printing:
Printing:  Stickers / postcards / Patches	$800	$800	$826	26	1%
Printing:  Patches for Volunteers	$0	$0	$0	0	0%
Printing:  Entry Signs	$300	$300	$292	(8)	0%
Printing:  Flags	$300	$300	$0	(300)	0%
Printing:  Wristbands (1000)	$550	$550	$417	(133)	0%
Printing:  Event Guide/Census/Survival Guide	$800	$800	$535	(265)	1%
Taxes (on previous year):	$0	$0	$203	203	0%
Telephone:	$35	$35	$135	100	0%
Travel: (Excom summit)	$5,360	$5,360	$5,686	326	6%
GST (paid or received during period):	$2,179	-$1,134	-$485	(2,664)	-1%
TOTAL EXPENSES:	$94,800	$93,793	$92,089	(2,711)	100%
Net Cash Movement: (before taxes & current GST	-$18,883	$9,826	$7,406

 

 

The handling of the finances for Kiwiburn has consumed more and more time commensurate with Kiwiburn’s growth.   It took over 100 hours for the team to pull together this year’s financials.  That does not include other parts of the year dedicated to budgeting or the work that is done during the festival season.  We are growing and have a need now for a dedicated team to handle the financial/budgeting/accounting aspects for Kiwiburn.    Both Rachel Margaret (Accounts Lead) and I (Treasurer) will be stepping down from Kiwiburn shortly.   After five years as Treasurer and more on top of that as part of the finance team,  I’m looking forward to the space that will open up for me to focus on other projects.    Meanwhile, Karl Matthews and Laura Papp have come on board as junior accounts persons with Karl having logged a year of accounts experience under his belt.   I will remain on the finance team as a mentor and consultant, but we will be looking for a senior manager to head up the team and possibly a professional accountant to keep an eye on our accounts and do the required regulatory filings.

 

Recommendations/Improvements for Next Year:

·         Form a finance team to handle the yearly accounts.

·         Find a professional accountant / senior finance manager

·         Modify the finance procedures to streamline the reconciliation process

·         Handle changeover to new Treasurer & Excom (change banks, change signators, update financial officers with societies organisation, etc)

On Sun, Mar 9, 2014 at 10:05 AM, Kathy Guidi <kag...@gmail.com> wrote:

[Bruce Scanlon]

excellent job Kathy and Rachel!!!

[Karl Matthews]

Amazing stuff!

Thank you so much Kathy and Rachel, A truly incredible job done again. 

[Hippie Tim]

Great job guys! Onwards and upwards, let's hope we can keep this puppy going without having to dip into our cash reserves and we start investing in who knows what other goodness.

[Pete Wyatt]

most excellent

[Ashleigh Easton]

You are so amazing ladies <3