CFC Budgets - Are They Coming??

[Bob Armstrong]

Today I sent budget forms to the CFC and asked that they be completed and published so that members have an idea of where the CFC is going, now that some major restructuring has been done, and some is close to conclusion. They cover 2 periods:

1. the 2nd half of 2008-9 ( Nov. 1, 2008 - April 30, 2009 );
2. 2009-10 ( May 1, 2009 - April 30, 2010 ).

I have taken some heat ( in a friendly manner ) from the CFC Executive that my deficit projections for 2nd half 2008-9, which I published here, are " off base ". However, I have not been provided with any competing figures. As well, there have been over 200 " views " of my projections ( and recommendations for three immediate cuts to CFC expenses ), and there has not been one calculatory challenge to my figures.

Nevertheless, if it is claimed that my figures are wrong, then let the CFC publish the correct budget figures, so that all members can see them. The CFC has information on its expenses for the first 2 months of the 2nd half of this year, and can easily project for the last 4 months. And Peter Stockhausen and I have debated the 2009-10 budget here, and CFC can incorporate it into their projection musings.

I have tried to make it easier for CFC by drafting forms ( reviewed by an accountant for their usefulness ), and followed generally Peter Stockhausen's ( former CFC Treasurer ) format as well. Here are the two blank forms ( Note: I have filled in already the revenue figures for 2009-10, since CFC President, David Lavin, when responding to Peter, posted that his Revenue estimate was $ 83,500 - so I think David, Peter and I all roughly agree on the 2009-10 Revenue figure ):

Projected CFC Revenue/Expenses for November 1, 2008 – April 30, 2009

REVENUE

Retail :
Gross Profit on CFC’s own Close-out Sales $
(Calculation:
REVENUE
Sales of books, equipment and software $
EXPENDITURE
Cost of sales $
GROSS PROFIT $ )
Shipping and handling charges on close-out sales $
Commission from Amazon.ca $
Commission from FEN $
CFC Fees:
Membership fees ( excluding Life Memberships ) $
Tournament Playing fees $
Rating fees $
Other:
Interest earned from Chess Foundation of Canada $
Donations ( undirected only. ) $_______

TOTAL $

EXPENDITURES

General and administrative :
Salaries, benefits and staff travel ( Nov. 1- Jan. 14 ) $
Salaries, benefits and staff travel ( Jan. 15 – April 30 ) $
Building and equipment expenses ( Nov.1 – Jan. 14 ) $
Equipment expenses ( Jan. 15 – April 30 ) $
Office ( Nov. 1 – Jan. 14 ) $
Office ( Jan. 15 – April 30 ) $
Programs :
Publications ( On-line Chess Canada - salary, etc. ) $
International $_______

TOTAL $

Surplus/ ( Deficit ) $

( Note: there will be some “ unusual items “ which will be recorded separately and so not affect the above: inventory write down ( expense ); uncollectible accounts receivables ( expense ); overstated sales correction ( expense ) ; recovery and more of building depreciation ( revenue correction for prior years because of depreciation cost recovery with consequent increase in past years’ revenue ).

( Revision # 2, Jan. 4, 2009 )
___________________________________________________ ____________________________________________________


PROJECTION OF CFC REVENUES AND EXPENSES FOR 2009-10

REVENUE

Memberships ( Excluding Life Memberships; incl.
Tournament Playing Fee ) $ 47,000
Rating Fees $ 26,000
Commission from Sales (Amazon.ca/FEN ) $ 5,500
Interest from Foundation $ 5,000
Donations ( undirected ) $ 0


Total Revenues $ 83,500

EXPENSES

General and Administrative:
Salaries, Benefits and Staff Travel $
Equipment Expenses $
Office ( Rental, Supplies, Telephone, etc. ) $
Programs:
E Magazine ( On-line Chess Canada; web expenses, etc. ) $
International ( FIDE, etc. ) $_______

Total Expenses $

Surplus/( Deficit ) $
__________________________________________________ ______________

Bob

[Gary Ruben]

Re: CFC Budgets - Are They Coming??

I don't notice FIDE fees for the various categories and affiliation. Titles and federation change charges are not always predictable.

Am I missing something?

Regading the commissions from sales, is it really that small? Most people spill more than that in a year. :)

[Bob Armstrong]

Re: CFC Budgets - Are They Coming??

Hi Gary:

FIDE costs are under the expense category " International ". According to the first half financials just released the FIDE cost for the first half of the year was about $ 3,600. You are probably right that they are erratic and not easily amenable to predicting. But in budgeting, you can only take your best shot at plugging in some working figure. Will the second half figure also be $ 3,600 ? - you would have to have access to the breakdown of this expense, to tell whether certain items would likely be duplicated. But if you have no information that the figure can be downwardly adjusted, then the prudent course is to anticipate the same 2nd half cost, as for the 1st half.

Commissions are not large. But they are revenue ! We were taking a net " LOSS " on the retail business we were trying to run for the last few years - the gross profit margin was being overwhelmed by the staff time required and an allocation of part of the building and office costs, which were indirect costs of carrying on the retail business. I applaud the Exec. for keeping their finger in and getting some money coming in. No big deal to have the website advertise, and Amazon.ca and FEN process the orders.

Bob