Royal Canadian Legion Branch #480 - Westboro Budget 2017-2018 Royal Canadian Legion Branch #480 - Westboro

Agenda Welcome The high level look at the budget The medium altitude look (snap shots of areas of potential interest) The worm’s eye view (details) Feedback/Discussion Summary Reminder about next steps

Welcome This budget has been assembled from several sources The strategic planning sessions in February and March 2017 The 2016-2017 Budget The 2016-2017 Actuals The past 5 years actuals Input by many (but not all) members of the current Executive

High level view of the budget Revenue Food and Beverages 165,590 Other 55,569 221,159 Expenses 157,951 Payroll 94,265 Utilities 30,130 General Administration 74,849 262,930 Total profit (loss) -41,771

The medium altitude look (1) Food and Beverage operations Income $ 165,590 Expenses $ 157,886 Profit (loss) ($ 7,704) Comment: The Food and Beverage Operations are not making a profit. A typical military mess is required to return between 45 and 55% Gross trading margin. Commercial bars try to turn a 250% gross trading margin. By these measures, we are failing miserably. Note: the solution is NOT to raise prices or cut hours or use more volunteer bar tenders. “You cannot cut your way to profit” IF there is not sustainable business model in place. There is no sustainable business model in place.

The medium altitude look (2) Membership and Member Services Income $8,400 Expenses $3,900 Profit (loss) $4,500 Comments: We make a small but tidy profit from Membership.

The medium altitude look (3) Sports Income $10,635 Expenses $ 445 Profit (loss) $10,190 Comment On the surface, Sports appears to be a solid Revenue Centre producing profits on the order of 2389%, according to our current accounting system…

The medium altitude look (4) Remembrance and Commemorations Income $4,000 Expenses $3,075 Profit (loss) $ 925 Comment On the surface, Remembrance and Commemorations makes a modest profit. However, many cost and possibly some income are buried under other line items making it IMPERATIVE to insist on an event costing analysis BEFORE any such events or activities are approved.

The medium altitude look (5) Public Entertainment Income $ 6,265 Expenses $24,715 Profit (loss) ($18,450) Comment Public entertainment is a HUGE money loser. We have been subsidizing customers who don’t need to be members. While we have a community service mandate, this is atrocious. The cover charge MUST cover costs.

The medium altitude look (6) Lottery operations Income not available Expenses not available Profit (loss) should be fully spent by year end… Comments There is relatively little transparency in this area today. This is one area that really needs a much closer look…

The medium altitude look (7) 2000 The medium altitude look (7) Building Operations Income $ 15,850 Expenses $ 88,189 Profit (loss) ($72,348) Comments The building does not pay for itself. This building SHOULD be making more money…

The medium altitude look (8) 2000 The medium altitude look (8) Donations, Grants, Contributions, Subsidies, Gifts Income figures not available in current accounting system Expenses figures not available Profit (loss) not known Comments We DO NOT have a handle on this important INCOME source.

The medium altitude look (9) 2000 The medium altitude look (9) Obviously, there are other areas that make money while others lose money and some probably break even. Our current accounting system does not provide clear, transparent views. Clearly, a better accountability mechanism is needed. Recommendation: use your Ways and Means Committee (more properly known as the Finance Committee or Financial Management Committee in “Legion parlance”) to control expenses and manage income by funnelling EVERYTHING financial through this standing committee for analysis and recommendation. And say “no” more often.

Feedback/Discussion All are welcome to participate Your task is to discuss this budget proposal and suggest ways to improve the quality of the information, level of detail, accountability, etc Break up into groups of 2-4 (just a suggestion) Start by taking five minutes on your own and thinking about the top five things you think you can offer as help to the Budget team Share your ideas with the people in your group Take 15-20 minutes for this discussion Write down your top five suggestions (keep all your suggestions and we will ask you to share more oth them if there is time)

Summary I have put some time aside here for our current Executive and the Executive-elect to speak. I encourage each to say a few words about their own impressions, incorporating any/all of your suggestions where possible The main points will be recorded and reported (see next steps slide)

Next steps The results from this evening’s session will be posted on the Branch website You still have about 2 weeks to express your views and offer your suggestions After 20 May, the budget will be set so there is time to make copies and finalize the presentation for the vote at the General Membership Meeting. As with every motion, amendments from the floor can be made. Just note that if you move an amendment without raising your point after all of these opportunities, you will be ambushing a lot of people and disrespecting their efforts.