1. Royal Canadian Legion Branch #480 - Westboro
Budget
Royal Canadian Legion Branch #480 - Westboro

2. 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

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

4. 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

5. 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.

6. 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.

7. The medium altitude look (3)
Sports
Income $10,635
Expenses $
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…

8. The medium altitude look (4)
Remembrance and Commemorations
Income $4,000
Expenses $3,075
Profit (loss) $
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.

9. 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.

10. 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…

11. 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…

12. 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.

13. 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.

14. 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 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)

15. 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)

16. 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.