Difference between revisions of "2005 Budget"

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{{Quarterly Budget for 2006}}
 
{{Quarterly Budget for 2006}}
  
−
=== Assumptions ===
+
=== Notes and Assumptions ===
 +
* This version of the budget should be a conservative one that assumes the status quo. Once we settle on reasonable numbers for all income and expense categories, we can then see what is likely to happen in 2006, and identify where the weak spots are. Then we can figure out how to address those problems, and take them into account in the next version.
 +
* The "Factor" column should show how much growth in the budget exists over the previous year.
 +
* We're assuming a 5% growth rate in most small categories by default. This is represented by 105% in the "Factor" column.
 +
* Sales numbers were not tracked separately very well in 2005. That is, while we had separate categories for Retail and Wholesale sales, most wholesale sales were actually recorded in the Retail Sales expense account. Therefore, we've lumped all the sales numbers together to start with and then looked at breaking out the percentages for each type of sales from there. Because of this, the growth factor for wholesale sales looks a bit high, but probably isn't.
 +
* Part way through 2005, we stopped selling stuff online and farmed it out to another organization. Therefore, there is activity in the Online Sales in Quarters 1 and 2, followed by activity in External Sales in Quarters 3 and 4. We are assuming that we will start selling items online again sometime in 2006 -- beginning of Quarter 2. This helps account for the larger growth factors reported in those categories.
 +
* Based on trends reflected in the database overall donations of major items (Monitors, Systems, and Printers) for 2006 will increase 10% over 2005. Monitors are expected to do significantly better due to low prices for LCD monitors. Monitor related accounts are therefore expected to grow by some measure higher than 10% -- we're guessing 15%.
 +
* Tenant Sublets are supposed to be bringing in around $1,000 per month. We are investigating why this is not the case for 2005 and may revise the numbers for 2006 when this has been determined.
 +
* Certain categories of expense and income are altogether eliminated in this version. They might be reintroduced as a strategy for addressing weak spots or for other reasons in later versions of this budget. Some eliminated categories in this version are:
 +
** Consulting
 +
** Pickups
 +
** Space Rental
 +
** Sponsorship
 +
* Somewhere on the web it said that utilities would go up (PGE up by 5.3%, NW Natural up by 15.2%). We're guessing all utilities up by 10%.
  
 
== Old Notes ==
 
== Old Notes ==

Revision as of 19:38, 6 December 2005

Profit And Loss - 2005

To start with, here's a profit and loss statement by quarter for 2005. The third quarter was measured for October and November only, since December isn't over yet. The we multiplied by 1.5 to get an estimate for a three month period.


2005 Income and Expenses
. Q1 . Q2 . Q3 . Q4 . YEAR
Consulting $- $- $- $7,135.00 $7,135.00
Donations, C4K $25.00 $25.00
Donations, Online $370.00 $1,551.91 $10.00 $125.00 $2,056.91
Donations, Regular $20,044.91 $34,929.12 $24,406.04 $19,113.18 $98,493.25
Education $1,040.00 $380.00 $120.00 $- $1,540.00
Fundraisers $1,325.79 $- $1,325.79
Grants $1,708.25 $1,000.00 $11,300.00 $16,200.00 $30,208.25
Interest $30.52 $18.64 $12.16 $51.52 $112.84
Miscellaneous Income $- $- $0.97 $120.00 $120.97
Monitor Fees $27,600.50 $25,953.10 $34,795.94 $26,806.00 $115,155.54
Outreach Events $193.75 $1,379.00 $1,902.00 $- $3,474.75
Overages $- $- $476.41 $751.95 $1,228.36
Pickups $- $- $175.00 $- $175.00
Recycling Income $8,944.32 $16,259.75 $8,564.52 $11,686.51 $45,455.10
Sales, External $- $- $414.05 $1,036.10 $1,450.15
Sales, Online $908.14 $1,005.23 $- $- $1,913.37
Sales, Retail $36,330.36 $35,450.98 $40,388.15 $44,531.89 $156,701.38
Sales, Wholesale $609.42 $40.00 $398.25 $977.90 $2,025.57
Space Rental $- $- $- $40.00 $40.00
Sponsorship $- $167.70 $3.80 $- $171.50
Tenant Sublets $2,392.00 $1,072.00 $1,037.00 $2,070.00 $6,571.00
Untracked Adjustments $- $- $950.75 $- $950.75
TOTAL INCOME $101,497.96 $119,207.43 $124,955.04 $130,670.05 $476,330.48
Adminstration $1,978.12 $1,678.80 $1,412.50 $949.13 $6,018.55
Advertising $- $- $- $535.00 $535.00
Auction fees $74.11 $47.64 $11.24 $- $132.99
Consulting Expenses $- $- $1,160.00 $7,135.00 $8,295.00
Fundraisers $12.98 $- $- $- $12.98
Health Care $9,891.99     $7,438.19     $7,941.10     $7,504.56 $32,775.84
Merchandise Purchases $109.78 $264.96 $- $- $374.74
Miscellaneous Expenses $- $- $- $- $-
Monitor Recycling $10,832.00 $9,551.50 $15,558.08 $14,776.00 $50,717.58
Other Facility $3,144.74     $1,423.29     $793.02     $1,528.68 $6,889.73
Outreach Events $216.51 $544.62 $1,919.36 $- $2,680.49
Parts for online sales $79.64 $- $- $- $79.64
Payroll $49,621.20     $44,551.80     $43,539.67     $46,193.85 $183,906.52
Payroll Accounting $775.54     $532.99     $792.46     $769.17 $2,870.16
Program Supplies $309.75 $2.99 $788.41 $138.98 $1,240.13
Recycling Disposal $- $78.12 $103.57 $46.48 $228.17
Rent $19,900.00     $20,100.00     $20,100.00     $20,100.00 $80,200.00
Shipping $68.13 $460.74 $86.69 $- $615.56
Short Tills $- $- $255.48 $236.87 $492.35
Staff Training and Education $- $- $300.00 $- $300.00
Taxes and Withholding $17,265.65 $14,259.59 $14,482.23 $14,741.51 $60,748.98
Telecom $792.84     $744.37     $749.46     $742.39 $3,029.06
Theft and Fraud $299.00 $- $376.50 $97.00 $772.50
Utilities $4,926.06     $3,682.00     $4,292.21     $4,739.00 $17,639.27
Volunteer rewards $- $42.00 $- $138.95 $180.95
Workers Compensation $304.50     $304.50     $304.50     $304.50 $1,218.00
TOTAL EXPENSES $120,602.54 $105,708.10 $114,966.48 $120,677.07 $461,954.19
PROFIT (LOSS) $(19,104.58) $13,499.33 $9,988.56 $9,992.98 $14,376.29


Extrapolation and Assumptions for 2006

I started with the above Profit and Loss report for 2005, and then I started plugging in assumptions for each income and expense stream.

Current Budget (2006)
. Q1 . Q2 . Q3 . Q4 . YEAR
Growth Assumps
Consulting $- $- $- $- $- Z
Donations, C4K $6.56 $6.56 $6.56 $6.56 $26.25 105%
Donations, Online $539.94 $539.94 $539.94 $539.94 $2,159.76 105%
Donations, Regular $25,854.48 $25,854.48 $25,854.48 $25,854.48 $103,417.91 105%
Education $404.25 $404.25 $404.25 $404.25 $1,617.00 105%
Fundraisers $348.02 $348.02 $348.02 $348.02 $1,392.08 105%
Grants $- $- $- $- $- Z
Interest $29.62 $29.62 $29.62 $29.62 $118.48 105%
Miscellaneous Income $31.75 $31.75 $31.75 $31.75 $127.02 105%
Monitor Fees $32,934.48 $30,401.06 $30,401.06 $32,934.48 $126,671.09 110% U
Outreach Events $912.12 $912.12 $912.12 $912.12 $3,648.49 105%
Overages $322.44 $322.44 $322.44 $322.44 $1,289.78 105%
Pickups $- $- $- $- $- Z
Recycling Income $11,931.96 $11,931.96 $11,931.96 $11,931.96 $47,727.86 105%
Sales, External $1,048.53 $1,116.92 $1,162.50 $1,230.89 $4,558.84 110% G, YEC
Sales, Online $- $929.03 $988.96 $1,078.87 $2,996.86 110% G, Q2
Sales, Retail $38,150.02 $40,638.07 $42,296.76 $44,784.81 $165,869.66 110% G
Sales, Wholesale $2,007.90 $2,138.85 $2,226.15 $2,357.10 $8,729.98 110% G
Space Rental $- $- $- $- $- Z
Sponsorship $- $- $- $- $- Z
Tenant Sublets $3,000.00 $3,000.00 $3,000.00 $3,000.00 $12,000.00 F $1,000
Untracked Adjustments $- $- $- $- $- Z
TOTAL INCOME $117,522.09 $118,605.07 $120,456.60 $125,767.30 $482,351.06
Adminstration $1,579.87 $1,579.87 $1,579.87 $1,579.87 $6,319.48 105%
Advertising $140.44 $140.44 $140.44 $140.44 $561.75 105%
Auction fees $50.02 $50.02 $50.02 $50.02 $200.09 105% Q2
Consulting Expenses $- $- $- $- $- Z
Fundraisers $3.41 $3.41 $3.41 $3.41 $13.63 105%
Health Care $11,448.00 $11,448.00 $11,448.00 $12,592.80 $43,936.80 105% HC
Merchandise Purchases $98.37 $98.37 $98.37 $98.37 $393.48 105%
Miscellaneous Expenses $75.00 $75.00 $75.00 $75.00 $300.00 F $25
Monitor Recycling $14,505.23 $13,389.44 $13,389.44 $14,505.23 $55,789.34 110% U
Other Facility $2,727.30 $2,727.30 $2,727.30 $2,727.30 $10,909.22 105%
Outreach Events $703.63 $703.63 $703.63 $703.63 $2,814.51 105%
Parts for online sales $- $77.77 $82.79 $90.31 $250.87 105% Q2
Payroll $46,193.85 $46,193.85 $46,193.85 $46,193.85 $184,775.40 100% YEC
Payroll Accounting $753.42 $753.42 $753.42 $753.42 $3,013.67 105% YEC
Program Supplies $325.53 $325.53 $325.53 $325.53 $1,302.14 105%
Recycling Disposal $59.89 $59.89 $59.89 $59.89 $239.58 105%
Rent $20,100.00 $20,100.00 $20,100.00 $20,100.00 $80,400.00 100%
Shipping $- $66.53 $70.82 $77.26 $214.61 105% Q2
Short Tills $129.24 $129.24 $129.24 $129.24 $516.97 105%
Staff Training and Education $78.75 $78.75 $78.75 $78.75 $315.00 105%
Taxes and Withholding $15,478.59 $15,478.59 $15,478.59 $15,478.59 $61,914.34 105%
Telecom $870.00 $870.00 $870.00 $870.00 $3,480.00 F $290.00
Theft and Fraud $202.78 $202.78 $202.78 $202.78 $811.13 105%
Utilities $4,850.80 $4,850.80 $4,850.80 $4,850.80 $19,403.20 110%
Volunteer rewards $47.50 $47.50 $47.50 $47.50 $190.00 105% YEC
Workers Compensation $319.73 $319.73 $319.73 $319.73 $1,278.90 105%
TOTAL EXPENSES $120,741.34 $119,769.85 $119,779.16 $122,053.72 $482,344.08
PROFIT (LOSS) $(3,219.25) $(1,164.78) $677.43 $3,713.59 $6.98
-2.67% -0.97% 0.57% 3.04% 0.00%
Assumption Key
F -- flat monthly amount
HC -- F $318*12 with 15% rise in Nov, Dec
Q2 -- begin in 2nd quarter
G -- growth (rising curve) 23% 25% 26% 27%
U -- U shaped curve 26% 24% 24% 26%
YEC -- year end constant
Z -- zero money in 2006
5% payroll = $3,125.23 $3,125.23 $3,125.23 $3,125.23 $12,500.92
10% payroll = $6,250.46 $6,250.46 $6,250.46 $6,250.46 $25,001.84
15% payroll = $9,375.69 $9,375.69 $9,375.69 $9,375.69 $37,502.76

Notes and Assumptions

  • This version of the budget should be a conservative one that assumes the status quo. Once we settle on reasonable numbers for all income and expense categories, we can then see what is likely to happen in 2006, and identify where the weak spots are. Then we can figure out how to address those problems, and take them into account in the next version.
  • The "Factor" column should show how much growth in the budget exists over the previous year.
  • We're assuming a 5% growth rate in most small categories by default. This is represented by 105% in the "Factor" column.
  • Sales numbers were not tracked separately very well in 2005. That is, while we had separate categories for Retail and Wholesale sales, most wholesale sales were actually recorded in the Retail Sales expense account. Therefore, we've lumped all the sales numbers together to start with and then looked at breaking out the percentages for each type of sales from there. Because of this, the growth factor for wholesale sales looks a bit high, but probably isn't.
  • Part way through 2005, we stopped selling stuff online and farmed it out to another organization. Therefore, there is activity in the Online Sales in Quarters 1 and 2, followed by activity in External Sales in Quarters 3 and 4. We are assuming that we will start selling items online again sometime in 2006 -- beginning of Quarter 2. This helps account for the larger growth factors reported in those categories.
  • Based on trends reflected in the database overall donations of major items (Monitors, Systems, and Printers) for 2006 will increase 10% over 2005. Monitors are expected to do significantly better due to low prices for LCD monitors. Monitor related accounts are therefore expected to grow by some measure higher than 10% -- we're guessing 15%.
  • Tenant Sublets are supposed to be bringing in around $1,000 per month. We are investigating why this is not the case for 2005 and may revise the numbers for 2006 when this has been determined.
  • Certain categories of expense and income are altogether eliminated in this version. They might be reintroduced as a strategy for addressing weak spots or for other reasons in later versions of this budget. Some eliminated categories in this version are:
    • Consulting
    • Pickups
    • Space Rental
    • Sponsorship
  • Somewhere on the web it said that utilities would go up (PGE up by 5.3%, NW Natural up by 15.2%). We're guessing all utilities up by 10%.

Old Notes

From the RT ticket we have a list of random things that should be included. Some of these may overlap with categories we already have in the books. Some may not even be desired -- this is just a brainstorm for now.

substitute fund
to pay workers to cover for vacation that staff takes, sick days, etc.
hiring expenses
get numbers from this year's hirings, estimate the number of hirings in 2006, and calculate
vacation payoffs
how many people will be quitting in 2006 (estimate based on past trends, estimate amount of unused vacation, calculate)
- (The way to this is to combind the "Substitute fund" above and this into an account for accrued payroll expenses - every pay period an amount equal to vacation time earned that period should be added to the fund and whenever vacation is used it should come out of this fund weather is a payoff or just vacation pay
nice to have a general fund
what's this mean?
a "staff vacation to breitenbush" fund
ha! sounds fun!
a physical plant fund for maintenance
we should anticipate projects that we might want to accomplish, and look at past expenses for maintenance.
repayment of personal loan
$1,000 per month to starting (April 2005) and ending at the end of 2005 (this will need to be included for a few months if we slip on our 2005 timeline)
re-keying the building
How much? We should do this every year and figure it into budget.
Board and officers insurance
Oso's getting a quote
Credit card processing fees
How much?
food for core breakfast and retreats, etc.
We should estimate how much it would cost to re-establish this practice
shawn wants a $100/mo ad fund
Like for outreach in general. $100 is an ideal number. Starting with $50 or even $25/month would be a good start.
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