2017 Financial Statements

[Laura Papp]

Dear ExCom

Attached for your review are the draft Financial Statements for the year ended 31 March 2017. 

Results

The Statement of Profit and Loss shows a net profit after taxation and adjustments of $40,751. This is a 34% increase compared to the surplus for the 2016 year of $30,235. 

Overall the net margin is 16.9% in the current year consistent with 17% in 2016. 

Income

Income increased 40% from $176,852 in 2016 to $240,477. This was driven by an increase in pre-event ticket sales.

Expenses

Expenses increased 35% from $133,510 in 2016 to $188,123 in 2017. This does not include taxation and adjustments.

These expenses can be broken down as follows:

Operating expenses increased only 19%, driven by increases in Effigy and Temple expenses, Kitchen, and MPW.  Art Grants paid decreased by $1,112. This is consistent with a longer term trend of Art Grants not keeping pace with increases in income.

On the other hand overhead expenses increased 72%, which was caused by increases in Rent, Insurance and Tree Work.  

Rent expense of $26,696 includes a fixed fee of $8,695 for the first 600 tickets plus $17 for each additional ticket. 

Depreciation and Finance Charges also increased 73%, which was driven by an increase in depreciation as we now have a significant fixed asset register of depreciating items. 

Non deductible expenses also increased from $1,251 in 2016 to $2,996 in 2017. 

All amounts are GST exclusive. 

Five Year Trends

Attached is a five year profit and loss showing income and expenses from 2013 to 2017. Income has increased four-fold over this period, while expenses have only increased three-fold, resulting in a net profit increase of five times. 

Outstanding Expenses

The Carbon Offset Donation was not made in 2017. I will go ahead and make that donation now unless instructed otherwise. 

We also have outstanding expenses relating to the caterer, work weekend, tree work, and the Operational Summit, which were included in the 2017 budget but will be incurred in the 2018 financial year. I will present these expenses in more detail when we start the 2018 budgeting process, as discussed below.

Income Tax

The draft tax return shows tax expense of $16,690. We have already paid $12,422 of Provisional Tax, and the remaining tax of $4,268 is due 7 July. 

Provisional tax for 2018 of $17,524 will be due in two installments in October 2017 and May 2018. 

2018 Budget

I will be out of town first week of July. When I return I would like to begin the 2018 budget process, as some of you have been asking about. 

Please let me know if you have comments or questions about the above and attached.

[Poppy Norman]

Thanks so much for this Laura. Just had a quick read but will look at it in more detail later. 

Can you hold off on making the carbon offset donation? I'll email everyone about this over the weekend but long story short the lions can't actually plant anymore trees with our money as they do not have the space. 

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[Geveta Cook]

Fantastic! Thanks so much Laura!

(And good spotting Poppy)

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[Rainbow Ronan]

awesome work, thank you Laura 

in regards to carbon offset, they're looking to plant a whole bunch of trees on the Christchurch port hills, could be an idea

[Jamie Ryan]

Thanks Laura! Great break down!

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[Pete Wyatt]

Many people put lots of hard work into making Kiwiburn happen both
during the year and during the event, as the event grows so does the
required commitment, many hundreds of hours in many cases.

These people deserve the option of receiving something as a token
thank you for their efforts.

After discussions with several of the Australian burner teams my
suggestions going forward are

1) Offer Special price tickets as a thank you to an assortment of
hard workers, excom and team leads as well as site crew doing more
than 1 weeks work, probably at the existing $95 level.

2) Offer Excom, team leads and other senior people a reasonable
about of expense reimbursement, these people are offered a dollar
amount they can submit receipts for reasonable expenses incurred for
eg $200 of internet for the year, or $200 on fuel to get to the event,
this would be reimbursed to their bank account. Kiwiburn can claim
this as a legit expense of doing business / producing the event.

Note:
I use the word ‘Offer’ nobody is forced to submit an expense and if
they want they could just submit an expense claim for $50 if that is
what they think is reasonable for their efforts or because of their
financial situation

These options do not incur tax implications for either party with the
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[Pete Wyatt]

excellent work Laura, thanks for the hard work

I am puzzled by the "Site Survey" expenses, I thought this was when we
were looking for an alternative to the Mango site and ended up in
Hunterville but I see that we continue to spend thousands on this each
year ?

The huge increase in people not submitting receipts is a worry as this
is lost money as Kiwiburn can not claim it as an expense for the IRD,
I believe we need to get tough as $2996 is a lot of money to lose.

It would be really good if in the future we could see budget v's
actual expenses as this would help is see how good our budgeting was
and help make it better.

because in our case Insurance, Rent and carbon offset are actually
100% event related expenses I believe putting them in operating
expenses rather than Overheads would clarify the accounts (for those
of us who like reading such things)

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On Wed, Jun 28, 2017 at 7:37 PM, Jamie Ryan <jamie.p...@gmail.com> wrote: